FIVE YEAR FINANCIAL FORECAST MAY Cleveland Municipal School District

Five Year Forecast - Contents 2 Major Assumptions General Fund Revenues General Fund Expenditures Five Year Forecast Summary

Cleveland Municipal School District 3 Major Assumptions

4 Revenue: Property Tax Collection Rate - The forecast assumes the collection rate will remain at same level as A 1% change in the collection rate represents $2.6 million. Assessed valuation will increase 2.6% to $5.1 billion in On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning January The forecast assumes the levy will expire December 31, State Funding–Cleveland is on the guarantee for FY14 and FY15. Assumes decrease in FY16-FY18 based on enrollment decline. Assumes no change in State reimbursement of Tangible Personal Property Taxes.

Major Assumptions continued 5 Expenditures : Staffing assumptions: The district restored 50 minutes to the classroom in January 2013– 193 teachers were added – Estimated cost $16.7 million in FY Forecast shifts $7.1 million of personnel cost to the General Fund in FY14 due to federal sequestration and a decline in federal funding. Healthcare rates are forecasted to increase an average of 9.4% in FY15 - FY18. Forecast assumes all union agreements as currently defined. FY14FY15FY16FY17FY18 G F5,0595,0174,905

Major Assumptions continued 6 Expenditures : Forecast assumes $3.6 million of strategic investments per year.  Improve IT Infrastructure  Improve IT support  Community Wrap Around Forecast assumes additional dollars for investment schools. $3.5 million FY14, $7.0 million FY15, $10.5 million FY16-FY18. Forecast assumes $16 million of continued aggressive fiscal management to gain efficiencies per year in FY Forecast assumes an annual 6% annual increase in charter enrollment in FY

Cleveland Municipal School District 7 General Fund Revenues

Cleveland Municipal School District FY

Cleveland Municipal School District Local Taxes – Property Tax Revenue 9

Cleveland Municipal School District Property Taxes – Current Collection Rate 10 Current Collection Rate Year

Cleveland Municipal School District Property Taxes – Total Collection Rate 11 Current Collection Rate Year 89.3%

Cleveland Municipal School District State Foundation Revenue 12 Revenue (In Millions) Fiscal Year

Cleveland Municipal School District State Foundation Revenue – Excluding Charter School Portion 13 Revenue (In Millions) Fiscal Year

Cleveland Municipal School District Education Jobs 14

Cleveland Municipal School District Property Tax Allocation – State Hold Harmless Reimbursements 15

Cleveland Municipal School District Other Revenue 16 Revenue (In Millions)

General Fund Revenue 17 *Projected – Excluding Advances

Cleveland Municipal School District 18 General Fund Expenditures

Cleveland Municipal School District Where the Money Goes 19

Cleveland Municipal School District Salaries 20

Cleveland Municipal School District Fringe Benefits 21

Cleveland Municipal School District Purchased Services 22 Expenditures (In Millions)

Cleveland Municipal School District Supplies, Textbooks, Equipment, and Other Expenditures 23

General Fund Expenditures 24 *Projected – Excluding Advances

Cleveland Municipal School District 25 Five-Year Forecast Summary

Cleveland Municipal School District May 2014 Five-Year Forecast (in millions of dollars) 26

QUESTIONS 27 Cleveland Municipal School District Five-Year Financial Forecast – May 2014