1. Proposed Budget Update Finance Committee Meeting June 19, 2014

2. Budget - Timeline 03/21/14 - Budget update provided the Board 04/04/14 - Budget update provided the Board 04/11/14 - Budget update provided the Board 04/25/14 - Budget update provided the Board 05/01/14 - Finance Committee Meeting 05/02/14 - Budget update provided the Board 05/07/14 - Agenda Setting Meeting – Preliminary Budget Review 05/14/14 - Legislative Meeting – Adopt Proposed Final 2014/15 Budget 05/21/14 - Special Legislative Meeting – Adopt Proposed Final 2014/15 Budget 06/11/14 - Agenda Setting Meeting – 2014/15 Budget Update 06/19/14 - Finance Committee Meeting – 2014/15 Budget Update 06/25/14 - Special Legislative Meeting – Adopt Final 2014/15 Budget 2 06/19/2014

3. Projected Budget 2014/15 Status Quo Projected 2014/15 Deficit Spending ($7,146,083) 07/01/2014 Beginning Fund Balance $7,665,480 Projected Year End Fund Balance 2014/15 $ 519,397 306/19/2014

4. Major Cost Drivers Pension funding Contractual Wage Increases Increased Health Care Costs 406/19/2014

5. Problem 2014/15 Deficit Spending of ($7,146,083) At 07/01/2015 left with only $519,397 506/19/2014

6. Expenditures need reduced Revenues need increased Proposal Net Reduction In Workforce Real Estate Tax Increase to Index 606/19/2014

7. Position Adjustments Teacher Reductions- 13.0$(852,672) Create Director of Teaching & Learning $ 130,007 Net savings from position adjustments $722,665 706/19/2014

8. Millage increase to Act 1 index Current Millage22.40 mills Allowable increase from index 2.8% (0.62 mill increase) A home with a $ 100,000 assessed value would have a $62 tax increase A home with a $ 50,000 assessed value would have a $31 tax increase A home with a $ 25,000 assessed value would have a $15.50 tax increase New Millage 23.02 mills Value of millage increase $1,118,046 806/19/2014

9. Net Affect Positions Changes and Increase to Index Position Changes$ 772,665 Increase to Index$1,118,046 Total$1,890,711 906/19/2014

10. Projected Budget 2014/15 Status Quo With Changes Projected 2014/15 Deficit Spending ($7,146,083) ($5,305,371) 07/01/2014 Beginning Fund Balance $7,665,480 $7,665,480 Projected Year End Fund Balance 2014/15 $ 519,397 $2,360,109 10 06/19/2014

11. 2014/15 Preliminary Budget Revenue Assumptions Real Estate Tax – Based on County Certified Assessment File – base year collections Earned Income Tax – Adjusted to current trend State Basic Education Subsidy, Special Education, Transportation – Governor's proposed budget State Reimbursement for Social Security & Retirement - remain at current 50%. Federal Revenue – based on 2013/14 funding 1106/19/2014

12. 2014/15 Preliminary Budget Expenditures Assumptions Salaries based on agreed upon contracts Healthcare rates based on current projection from ACSHIC Retirement rate based on current projection from PSERS Charter School enrollment remains same as 2013/14 Special Education services remain same as 2013/14 1206/19/2014

13. 2014-2015 Budget Proposals Expenditures2014/15 Status Quo2014/15 With Changes Instruction$55,045,370$54,134,698 Support22,649,46222,888,168 Non-Instruction1,734,335 Facilities-- Other6,526,468 Budget Reserve-- Total Expenditures$85,955,635$85,283,669 1306/19/2014

14. 2014-2015 Budget Proposals Revenues2014/15 Status Quo2014/15 With Changes Local$47,651,693$48,820,439 State28,216,671 Federal2,941,188 Other-- Total Revenues$78,809,552$79,978,298 Total Expenditures85,955,63585,283,669 Net$(7,146,083)$(5,305,371) 14 06/19/2014

15. 2014-2015 Budget Proposals By Object Expenditures2014/15 Status Quo2014/15 With Changes Salaries$28,688,76428,276,117 Employee Benefits18,074,12317,677,718 Professional Services5,221,141 Purch. Property Serv.2,124,3822,232,382 Other Purch. Services23,405,122 Supplies1,504,8301,533,916 Property256,925 Other Objects603,880 Other Financing Uses6,076,468 Totals$85,955,635$85,283,669 1506/19/2014

16. 2013-2015 Adopted Budget compared with 2014-2015 Status Quo Budget Expenditures2013/14 Final Budget 2014/15 Status Quo Variation (2%) Salaries$29,409,458$28,688,764$(720,694) Employee Benefits16,796,26018,074,1231,277,863 Professional Services5,524,4235,221,141(303,272) Purch. Property Serv.2,278,4872,124,382(154,105) Other Purch. Services22,527,55023,405,122877,572 Supplies1,761,5421,504,830(256,712) Property231,244256,92525,681 Other Objects2,160,380603,880(1,556,500) Other Financing Uses7,199,7256,076,468(1,123,257) Totals$87,889,059$85,955,635$(1,933,424) 16 06/19/2014

17. Budget - Timeline 03/21/14 - Budget update provided the Board 04/04/14 - Budget update provided the Board 04/11/14 - Budget update provided the Board 04/25/14 - Budget update provided the Board 05/01/14 - Finance Committee Meeting 05/02/14 - Budget update provided the Board 05/07/14 - Agenda Setting Meeting – Preliminary Budget Review 05/14/14 - Legislative Meeting – Adopt Proposed Final 2014/15 Budget 05/21/14 - Special Legislative Meeting – Adopt Proposed Final 2014/15 Budget 06/11/14 - Agenda Setting Meeting – 2014/15 Budget Update 06/19/14 - Finance Committee Meeting – 2014/15 Budget Update 06/25/14 - Special Legislative Meeting – Adopt Final 2014/15 Budget 1706/19/2014

18. Proposed Budget Update Finance Committee Meeting June 19, 2014