1. www.biglake.k12.mn.us ISD #727 – Big Lake 2015-2016 Original Budget June 23 rd, 2015

2. www.biglake.k12.mn.us Background Minnesota statutes require School Board approval of revenue and expenditure budget by June 30 th Conclusion of seven month budget process which began on December 1 st, 2014 Budget reduction plan approved by School Board on March 26 th, 2015 Legislative changes from Special Session Summary of District budget follows

3. www.biglake.k12.mn.us Legislative Changes 2% on basic general education formula allowance: $5,831 to $5,948 per pupil unit Increases extended time allowance $100 per pupil unit. First increase in over 10 years! – Targeted services programming Increased investment in early learning programs: – School readiness – Early learning scholarships Expand ELL funding for up to seven years

4. www.biglake.k12.mn.us Summary Budget Summary of District revenue and expenditure budget follows Budget reduction plan and general fund Legislative changes incorporated in summary budget Early learning Legislative changes not included until more information is known (Community Service Fund)

6. www.biglake.k12.mn.us General Fund Revenues State Aids and Property Taxes: – General Education Aid $ 25,163,122 Average daily enrollment = 3,252 2% increase on basic formula allowance & extended time revenue – Property Tax Revenue$ 2,455,856 – Special Education Aid$2,090,554 New funding formula for fiscal year 2016 – Federal Aid (Title & SPED)$ 415,756 Total General Fund Revenue $ 31,098,096

8. www.biglake.k12.mn.us General Fund Expenditures Total Expenditures$ 31,782,286 Staffing reductions as approved by the School Board in March, 2015 Salaries & Benefits: 78% of expenditures Expenditures by program: – Direct instruction and instructional & pupil support 81% – Sites and buildings 10% – District support & other 5% – Administration 4%

11. www.biglake.k12.mn.us Deficit Spending General Fund Deficit: $683,300 2% increase on basic formula allowance does not eliminate deficit – Declining enrollment in prior years – Less than inflationary general education increases Deficit will increase in fiscal 2017+

12. www.biglake.k12.mn.us General Fund Balances Unassigned = $2,468,821 – In compliance with fund balance policy Restricted Fund Balances – As regulated by MDE Committed Fund Balances – Severance – Referendum Communications Assigned Fund Balances

13. www.biglake.k12.mn.us Food Service Fund Revenue:$ 1,606,960 Expenditures:$ 1,621,660 Deficit due to purchase of equipment Restricted Fund Balance: $ 121,379 – In compliance with federal guidelines Breakfast & lunch rates increase 10 cents – Compliance with federal Paid Lunch Equity Calculator

14. www.biglake.k12.mn.us Community Service Fund Five components : – Community Education – Early Childhood Family Education – School Readiness – Preschool Screening – Adult Basic Education Total Revenues:$ 1,683,255 Total Expenditures:$ 1,683,856 Personnel restructuring Early learning funding increase will be added when more details are known

15. www.biglake.k12.mn.us Other Funds Scholarship Trust Fund – Revenues = $10,000 – Expenditures = $10,000 Debt Service – District mortgage payments – Revenues = $4,622,569 – Expenditures = $4,747,302 – Deficit regulated by MDE

16. www.biglake.k12.mn.us Other Funds OPEB Irrevocable Trust Fund – Other Post Employment Benefits – Revenues = $ 38,000 – Expenditures = $ 157,789 OPEB Bonds Debt Service – 2009 OPEB Bond payments – Revenues = $ 383,451 – Expenditures = $ 388,509 – Deficit regulated by MDE

17. www.biglake.k12.mn.us School Board Action Approval of 2015-2016 District revenue and expenditure budgets Total Revenue:$ 39,443,221 Total Expenditures:$ 40,391,402