Kent Cartwright, CPA Chief Financial Officer Public Schools of Petoskey April 15, 2011

* Foundation allowance reduced $470 to $6,846 * Categorical Funding reduced or eliminated * Declining enrollment = $22,000 * Districts expected to find 10% savings in consolidation efforts * Retirement rate moves from 20.66% to 24.46% (Cost to Petoskey = $468,541 or $163 per pupil)

* Governor’s cut of $470 is enacted = Foundation allowance of $6,864 * Pupil count loss of 13 FTE * ARRA Funds expire, not renewed (This may impact some of our Aides’ positions) * Edujobs used 100% in FY * Steps included; no other pay increases * Insurance costs increase 10% * MPSERS rate moves from 20.66% to 24.46%

Fiscal Projection Public Schools of Petoskey April 21, 2011 Estimated Beginning Fund Balance (Undesignated) July 1, 2011$2,335, % Budgeted Revenues (Feb Budget Revision)$25,136,132 Changes Projected for Next Year: ARRA Funds ($417,375) Edujobs Funds $653,676 Enrollment Decrease (13.00)($88,998) Declining Enrollment Categorical Cut($23,331) Governor's Recommended Cuts ($470)($865,800) Other adjusts($121,924) Total Changes($863,752) Estimated Revenue$24,272, Budgeted Expenditures (Feb Budget Revision)$25,371,676 Changes Projected for Next Year: MPSERS Rate Increase to 24.46%3.80%$468,541 Staffing Needs3.0 FTE$210,000 Step Cost Increase $209,000 Health Insurance Rate Increase10.00%$390,105 Other adjustments10.00%($23,816) Total Changes$1,253,830 Estimated Expenditures$26,625,506 $0 Projected Operating Surplus (Deficit) for ($2,353,126) Projected Ending Fund Balance June 30, 2012 ($17,787) -0.1%

* In my opinion, public school employees are likely, or highly likely, to be required to contribute for health care to some degree due to pending legislation. * A prudent employee should begin to consider the impact on their personal finances if the State required each of us contribute between $2,000 and $7,000 annually for insurance, beginning possibly as early as July 1, 2011.