1. WELCOME TO THE 2011-12 BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF SOUTH MILWAUKEE

3. 2011-12 SCHOOL YEAR The Four CE’s  Our focus for the 2011-12 school year will be on implementing the district’s mission and vision.  Cost Effectiveness is one of the four CE’s that the District will be focusing on to enable us to reach our goals.  Estimated general fund expenditure decrease of $1,499,924 (-4.4%)  Estimated general fund levy increase of $3,195 (.03%)  The final equalized valuation will be received in October and the mill rate will be finalized at that time.

5. WHY REDUCTIONS OF $2,612,435? Revenue limits control the total amount of taxes and general state aid a school district can collect. 2011-13 State Biennium Budget decreased per pupil spending under the revenue limit by 5.5% or $552.76 per pupil. 2011-12 Revenue limit decrease of $1,930,585. Decreases in revenues are greater than decreases in expenditures which result in reductions.

6. 2011-12 REDUCTION SUMMARY The $2,612,435 gap between revenue and expenditures was addressed as follows: Employees are contributing 50% of pension contributions. Employees are contributing 12.6% of the premium for health and dental insurance. Staff salaries are frozen. Increased student fees. Reduced school site budgets. Eliminated staff positions. Retirement savings.

7. FUTURE BUDGETS Revenue limits will continue to minimize or decrease the ability to generate revenue. New State legislation has allowed for flexibility in employee compensation. Next year’s decision must balance compensation, reducing positions and generating additional revenue. Expect to see continued reductions for the 2012-13 school year. Continue review of long-term financial and budget planning.

8. Revenue Limit (State Aid vs. Levy)

9. 2011-12 REVENUE SOURCES State$20,665,899 Property Taxes$9,695,419 Open Enroll/Tuition$1,958,386 Other$484,949 Federal$1,887,142 Total$34,691,795 Revenue Budget Summary Fund 10 & 27

10. 2011-12 Expenses by Object Salaries$21,001,444 Benefits$8,497,967 Purchased Svcs.$2,919,716 Supplies$1,178,432 Capital Objects$324,039 District Insurance$323,000 Interfund Transfers$364,634 Debt Retirement/Other$82,563 Total $34,691,795 85% Expenditure Budget Summary Fund 10 & 27

11. Staffing Summary 2010-11 Total FTE 2011-12 Reduced 2011-12 Increased Approved 2011-12 FTE's Teachers236.10(1.50)0.00234.60 Admin16.00(1.40)0.0014.60 Support9.60(0.50)1.2510.35 Aides29.260.000.7630.02 Clerical22.470.00 22.47 Custodial18.00(1.00)0.0017.00 BSH12.190.00 12.19 Total343.62(4.40)2.01341.23

12. SUMMARY  District expenditures are increasing by 4%  District tax levies are increasing by 5%.  Projected mill rate of $10.92 – final adjustment in October after 3rd Friday in September enrollment count, final certification of state aid and property valuation.  Staff and expenditure reductions made primarily due to revenue limit constraints and anticipated compensation agreements.  Rising costs of employee compensation will continue.  Future state legislation on school funding is uncertain.  Increases in expenditures and revenues need to be brought into balance.  Rest assured our buildings will be open the first day of school to provide a safe and rigorous academic environment to all of our students.

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14. Questions & Answers

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