1. 1 McKinney isd PROPOSED budget 2009-10 June 22, 2009

2. 2 2009-10 BUDGET HIGHLIGHTS 2009-10 BUDGET HIGHLIGHTS GENERAL FUND PROPOSED SALARY & BENEFIT ENHANCEMENTS DEBT SERVICE FUND FOOD SERVICE FUND TAX RATE INFORMATION

3. 3 HB3646 IMPACT SUMMARY Adds $120 per WADA to target revenue level ($3.3 million) Requires greater of $60 per WADA or $800 to be given in across the board pay raises to teachers, librarians, counselors, nurses, speech pathologists (±$850 for MISD) Requires local “step” increases on top of state raise Total cost of mandated raises – both state & local is ±$2.6 million Raises contingent on Commissioner of Education determining that mandated raises are an allowable use of federal stimulus funds.

4. 4 GENERAL FUND BUDGET SUMMARY REVENUES$175,059,967 EXPENDITURES 179,100,387 179,100,387 PROJECTED EXPENDITURE VARIANCE (2%) (3,582,008) (3,582,008) PROJECTED ACTUAL EXPENDITURES 175,518,379 ANTICIPATED ACTUAL DEFICIT ($458,412) ($458,412)

5. 5 Source of Funds 2008-092009-10Change Local$97.2 $95.7 $95.7($1.5) State 69.2 69.2 79.1 79.1 9.9 9.9 Other 0.2 0.2 0.3 0.3 0.1 0.1 Total$166.6$175.1$8.5 REVENUE COMPARISON (In Millions)

6. 6 EXPENDITURE COMPARISON (In Millions) FUNCTION2008-09 2009-10 2009-10 +/- ($) +/- (%) Instruction & Instructional Related $113.0$115.6$2.6 2.3 % Instructional & School Leadership 13.714.30.6 4.2 % Pupil Support 20.321.20.9 4.4 % Administrative Support 4.24.40.2 3.4 % Non-Student Based Support 21.522.00.5 2.6 % Community Services 0.20.2<0.05 20.3 % Contracted With Other Governmental Agencies 1.31.40.1 12.0 % TOTAL$174.2$179.1$4.9 2.8 %

7. 7 GENERAL FUND EXPENDITURES BY FUNCTION

8. 8 EXPENDITURE COMPARISON – BY OBJECT (In $Millions) OBJECT2008-092009-10 $ Change % Change Payroll Costs $136.4$141.3$4.93.7% Purchased and Contracted Services 25.426.71.36.1% Supplies/Materials9.07.8(1.2) (14.1%) (14.1%) Other Operating Expenses 2.92.90.0(1.8%) Capital Outlay 0.50.4(0.1)(22.1%) TOTAL$174.2$179.1$4.92.8%

9. 9 GENERAL FUND EXPENDITURES BY OBJECT

10. 10 SUMMARY OF SIGNIFICANT EXPENDITURE BUDGET CHANGES FROM 2008-09 TO 2009-10 ($Millions) ($Millions) REVISED 2008-09 BUDGET $174.2 INCREASES: INCREASE IN SALARIES AND BENEFITS 3.3 ADDITIONAL STAFFING (NET) 0.5 LAWSON E.C.C. OPERATING COST 0.9 TRS-ON BEHALF 0.6 INCREASED TRANSPORTATION COST 0.7 DECREASES: CAPITAL OUTLAY & SPECIAL REQUESTS(0.6) UTILITIES TRANSFER FROM FOOD SERVICE(0.2) OTHER (NET)(0.3) BUDGETED EXPENDITURES 2009-10 $179.1

11. 11 PER PUPIL COMPARISONS 2008-092009-10 Fall Enrollment 23,401 23,401 24,049 24,049 Revenues-Total $166,552,543 $166,552,543 $175,059,967 $175,059,967 Per Pupil Per Pupil $7,117 $7,117 $7,279 $7,279 Expenditures-Total $174,212,331 $174,212,331 $179,100,387 $179,100,387 Per Pupil Per Pupil $7,445 $7,445 $7,447 $7,447

12. 12 FUND BALANCE ESTIMATES GENERAL OPERATING FUND 2009-10 FUND BALANCE (In $Millions) PROJECTED 6/30/09 FUND BALANCE $49.0 PROJECTED FY10 REVENUES 175.1 PROJECTED FY10 EXPENDITURES (Net of Anticipated 2.0% Expenditure Variance) (175.5) PROJECTED 6/30/10 FUND BALANCE $48.6 PROJECTED 6/30/10 FUND BALANCE AS A % OF 2010-11 EXPENDITURES (ASSUMING 3% GROWTH) -------- 26.9%

13. 13 GENERAL FUND BUDGET SUMMARY OF ACCOMPLISHMENTS Includes staffing and other operating cost for Lawson Early Childhood Center. Provides reasonable pay raises considering economic climate. Increases health insurance contribution to absorb a portion of premium increases. Retains mid-year and teacher supply reimbursement stipends. Holds spending per pupil to $2 increase (0.04%). Decreases budgeted deficit by $3.6 million. Maintains current M & O tax rate of $1.04.

14. 14 PROPOSED SALARY AND BENEFIT ENHANCEMENTS 2009-10

15. 15 SUMMARY OF SALARY/BENEFIT ENHANCEMENT RECOMMENDATIONS Teachers, Nurses, Counselors and Other Instructional Professionals - $900 plus step increase on existing schedule. Average teacher pay raise is 2.8% All Other Pay Grades – 2.0% of mid point on applicable pay grade All Full Time Employees - $500 mid year stipend to be paid in December (Retain) Classroom Teachers - $250 classroom supply stipend to be paid in September (Retain) Increase District contribution for health insurance by $10 per month. Raises contingent on favorable ruling on use of federal stimulus funds.

16. 16 SUMMARY OF SALARY/BENEFIT ENHANCEMENT RECOMMENDATIONS (Continued) Summary of Proposed Teachers’ Salary Schedule Beginning Salary - $44,900 Step Increments1-5 - $300 1-5 - $300 1-5 - $300 6-10 - $400 6-10 - $400 11-15 - $500 11-15 - $500 16-20 - $600 16-20 - $600 21-30 - $700 21-30 - $700 Step 30 Salary - $60,900 Retain $500 mid-year stipend Retain $250 supply reimbursement stipend

17. 17 DEBT SERVICE FUND BUDGET Revenues Property Taxes $44,178,378 Property Taxes $44,178,378 Investment Revenue 150,000 Total Revenues $44,328,378 Investment Revenue 150,000 Total Revenues $44,328,378Expenditures  Fiscal Year Basis (Budget)$43,751,418  Calendar Year Basis (Tax Rate)$44,562,484 Note: The Adopted Budget is on a Fiscal Year basis, but the tax rate is set to meet Calendar Year requirements.

18. 18 FOOD SERVICE FUND BUDGET Revenues$8,431,219 Expenditures 8,315,789 Surplus$ 115,430

19. 19 TAX RATE INFORMATION FY09(Actual) FY10 (Proposed) Change M & O 1.040 1.040 1.040 0.000 0.000 I & S 0.477 0.500 0.500 0.023 0.023 Total1.517 1.540 1.540 0.023 0.023

20. 20 TAX IMPACT ON AVERAGE RESIDENCE FY09FY10 Average Market Value $216,670$216,095 Average Taxable Value $201,161$200,780 Tax Rate $1.517$1.540 Taxes Due $3,051.61$3,092.01 Increase$40.40

21. 21 TAX RATE HISTORY