1. June 12 th 2008 6:00 p.m. Swartz Creek Community Schools Swartz Creek Community Schools Administrative Building Administrative Building SWARTZ CREEK COMMUNITY SCHOOLS TRUTH AND TAXATION- BUDGETING HEARING

2.  Enlighten Board Members, Staff, & Community PURPOSE  Present Budget in transparent format  Budget for both near and long term goals  Meet Statutory Mandate

3. Michigan School Districts’ Financial Challenges  State Economy  Enrollment Issues  Growing Health Care Costs  State Retirement Rate

4. 2007-08 2008-09 2007-08 2008-09 State Education Tax 6 mills 6 mills State Education Tax 6 mills 6 mills Non Homestead Tax 18 mills 18 mills Non Homestead Tax 18 mills 18 mills Building and Site 1.8059 mills 1.8059 mills Building and Site 1.8059 mills 1.8059 mills Debt Retirement 0 mills 0 mills Debt Retirement 0 mills 0 mills NO INCREASES NO INCREASES Of all the 21 school districts in Genesee County only Flint Community School residents pay less mills for their schools than the residents of the Swartz Creek Community School District….. Of all the 21 school districts in Genesee County only Flint Community School residents pay less mills for their schools than the residents of the Swartz Creek Community School District….. 19 Others pay more 19 Others pay more LOCAL TAXES

5. DATA COMPARISON Fiscal Year 2002-03 Foundation Allowance Increase +140 Retirement Rate Change12.99 Healthcare Costs % increase 2003-04-1612.9914.13% 2004-05+7614.871.92% 2005-06+17516.349.56% 2006-07+21017.743.14% 2007-08+11916.72 10% Proj. 2008-09 +100 Proj. 16.56 10% Proj.

6. ****Exert control over our spending ****Improve communication & collaboration with stakeholders ****Increase revenue ****Attract new students ****Reduce expenditures What can we do to weather the storm?

7. Budget Objectives Achieve a balanced operating budget. Continue to build a reserve fund to avoid borrowing. Continue to build a reserve fund to enhance investments thus avoiding program or staffing cuts. Develop a budget process. Become as efficient as possible.

8. REVENUE How we generate money Revenue Assumptions: Foundation Allowance (Anticipating an increase of $100 per pupil for FY 2008-09) Enrollment Projection (4,188 students)

9. E XPENDITURES How we allocate resources Expenditure Assumptions for 2008-09: Diesel fuel costs rising from $202,000 to $260,000 Health insurance estimated 10% increase Retirement rate projected 16.56% of gross wages from 16.72% Utilities estimated 10% increase 2% pay increase for most employee groups

10. Working Definitions Revenues: Local Sources: Property Taxes, Tax Penalties, Adult Ed. Tuition/Fees, Bank Interest, Rentals Leases, United Way, Gifts, Community Ed. Funds, etc. Local Sources: Property Taxes, Tax Penalties, Adult Ed. Tuition/Fees, Bank Interest, Rentals Leases, United Way, Gifts, Community Ed. Funds, etc. State Sources: State Aid, Special Ed., Transportation, Drivers Ed., Vocational Ed., Gifted/Talented, At-Risk, Adult Ed., etc. State Sources: State Aid, Special Ed., Transportation, Drivers Ed., Vocational Ed., Gifted/Talented, At-Risk, Adult Ed., etc. Federal Sources: IDEA (Sp. Ed.), Grants, Title 1 & 2, Indian Ed., JTPA, Eisenhower, etc. Federal Sources: IDEA (Sp. Ed.), Grants, Title 1 & 2, Indian Ed., JTPA, Eisenhower, etc. Other Sources: Act 18 (County Sp. Ed.), Sale of Assets, CDC & Café Reimbursement, etc. Other Sources: Act 18 (County Sp. Ed.), Sale of Assets, CDC & Café Reimbursement, etc.

11. Working Definitions: Expenditures INSTRUCTION: Basic Program: Insurances/Benefits (Health, Dental, Vision, LTD, Life, Retirement, FICA, Unemployment, Workers Comp.) Classroom Teacher Salaries, Aides, Substitutes, Teaching/Office Supply & Materials, Repairs, Travel, Capital Outlay (Furniture & Equipment), etc. Basic Program: Insurances/Benefits (Health, Dental, Vision, LTD, Life, Retirement, FICA, Unemployment, Workers Comp.) Classroom Teacher Salaries, Aides, Substitutes, Teaching/Office Supply & Materials, Repairs, Travel, Capital Outlay (Furniture & Equipment), etc. Added Needs: Insurances/Benefits, Special Ed. Teachers (IDEA & Regular), Aides, At-Risk, Substitutes, Title 1 & 2, Vocational Ed., Indian Ed., Supplies/Materials, etc. Added Needs: Insurances/Benefits, Special Ed. Teachers (IDEA & Regular), Aides, At-Risk, Substitutes, Title 1 & 2, Vocational Ed., Indian Ed., Supplies/Materials, etc. SUPPORT SERVICES: Pupil: Insurances/Benefits, Counselors, Psychologists, Speech Teachers, Substitutes, Special Programs, Personnel, Graduation, etc. Pupil: Insurances/Benefits, Counselors, Psychologists, Speech Teachers, Substitutes, Special Programs, Personnel, Graduation, etc. Instruct. Staff: Insurances/Benefits, School Improvement, Textbooks, Librarians, Library Supply/Material, Assistant Superintendent for Instruction, Special Ed. Director, Athletic Director, Secretaries, Substitutes, System capitol-Outlay, Eisenhower, etc. Instruct. Staff: Insurances/Benefits, School Improvement, Textbooks, Librarians, Library Supply/Material, Assistant Superintendent for Instruction, Special Ed. Director, Athletic Director, Secretaries, Substitutes, System capitol-Outlay, Eisenhower, etc. General Admin: Insurances/Benefits, Board Salaries, Legal Services, Audit Services, Publications, Elections, Copy Materials, Dues/Fees, Superintendent, Supt. Secretary, etc. General Admin: Insurances/Benefits, Board Salaries, Legal Services, Audit Services, Publications, Elections, Copy Materials, Dues/Fees, Superintendent, Supt. Secretary, etc. School Admin: Insurances/Benefits, Principals/Assistants, Building Secretaries, Travel, Dues/Fees, etc. School Admin: Insurances/Benefits, Principals/Assistants, Building Secretaries, Travel, Dues/Fees, etc. Business: Insurances/Benefits, Business Secretaries, Data Processing, Banking Charges, Postage, System Insurances, Tax Processing, etc. Business: Insurances/Benefits, Business Secretaries, Data Processing, Banking Charges, Postage, System Insurances, Tax Processing, etc. Oper. & Maint.: Insurances/Benefits, Food & Mail Drivers, Custodial, Skilled Trades, Overtime, Substitutes, Utilities, Building Supply/Materials, etc. Oper. & Maint.: Insurances/Benefits, Food & Mail Drivers, Custodial, Skilled Trades, Overtime, Substitutes, Utilities, Building Supply/Materials, etc. Pupil Trans: Insurances/Benefits, Supervisor (1/2), Bus Drivers, Bus Trips, Shuttles, Secretaries, Substitutes, Repair, Mechanics, Supply/Material, etc. Pupil Trans: Insurances/Benefits, Supervisor (1/2), Bus Drivers, Bus Trips, Shuttles, Secretaries, Substitutes, Repair, Mechanics, Supply/Material, etc. Central: Insurances/Benefits, Assistant Super. Personnel, Switchboard Operator, Tech. Coordinator, Warehouse, etc. Central: Insurances/Benefits, Assistant Super. Personnel, Switchboard Operator, Tech. Coordinator, Warehouse, etc. Other: Insurances/Benefits, Schedule B Activities (Coaches/Sponsors), etc. Other: Insurances/Benefits, Schedule B Activities (Coaches/Sponsors), etc. Pupil Activities: Indian Ed., Insurances/benefits, Workers, Secretaries, Supply/Material, etc. Pupil Activities: Indian Ed., Insurances/benefits, Workers, Secretaries, Supply/Material, etc. Payments To Other Schools: GISD Telecommunications Classes, etc. Payments To Other Schools: GISD Telecommunications Classes, etc. Transfers: General Fund Transfers to Community Education, Athletics and CDC Transfers: General Fund Transfers to Community Education, Athletics and CDC

12. DISTRICT REVENUE Fiscal Year 2007-08 TOTAL: $34,088,003

13. DISTRICT OPERATING EXPENDITURES Fiscal Year 2007-08 TOTAL: $34,662,522

14. Projected 2007-08 REVENUE $34,088,003 EXPENDITURES $34,662,522 REVENUE OVER/(UNDER) EXPENDITURES $(574,519) 2007 FUND EQUITY $6,342,495 June 30, 2008 Projected Balance $5,767,976 16.64% of expenditures 16.64% of expenditures

15. DISTRICT REVENUE Fiscal Year 2008-09 TOTAL: $34,212,341

16. DISTRICT OPERATING EXPENDITURES Fiscal Year 2008-09 TOTAL: $35,607,800

17. Projected 2008-09 REVENUE $34,212,341 EXPENDITURES $35,607,800 REVENUE OVER/(UNDER) EXPENDITURES $(-1,395,459) 2008 FUND EQUITY $5,767,976 June 30, 2009 Projected Balance $4,371,517 12.28% of expenditures 12.28% of expenditures

18. Dilemma for 2008-09 and beyond Revenues are expected to rise less than 1% Revenues are expected to rise less than 1% Expenditures are expected to rise more than 3% Expenditures are expected to rise more than 3% Is this a one year anomaly or long term trend? Is this a one year anomaly or long term trend?

19. OTHER FUNDS Projected Expenditures 2007-08 2008-09 COMMUNITY EDUCATION $218,210 $222,710 COMMUNITY EDUCATION $218,210 $222,710 ATHLETICS $649,496 $657,772 ATHLETICS $649,496 $657,772 CHILD DEV. CENT (CDC) $602,878 $ 628,784 CHILD DEV. CENT (CDC) $602,878 $ 628,784 CAFETERIA $1,207,385 $1,324,415 CAFETERIA $1,207,385 $1,324,415 BUILDING and SITE $2,162,269 $2,591,269 BUILDING and SITE $2,162,269 $2,591,269

20. Size and Scope of the budget When all funds are added together the district is a one of the largest businesses in the area with revenues and expenditures exceeding $100,000 each and every day….365 days per year. When all funds are added together the district is a one of the largest businesses in the area with revenues and expenditures exceeding $100,000 each and every day….365 days per year. We are also one of the largest employers in the area with over 500 employees that service our most precious commodity.…our children. We are also one of the largest employers in the area with over 500 employees that service our most precious commodity.…our children. Investment in our children is also in an investment in our community and the future of Michigan. It is important that all stakeholders understand the importance and the responsibility of this investment. Investment in our children is also in an investment in our community and the future of Michigan. It is important that all stakeholders understand the importance and the responsibility of this investment.

21. Thank you for your time and for caring about the finances of your school district, my school district… OUR SCHOOL DISTRICT !!!