Transcript 2014-2015 Budget Presentation - Lake Orion Community Schools

2014-15 Budget
Presentation
June 25, 2014
District Vision: Educating our students for the challenges of tomorrow
District Mission: Providing an exemplary education for all learners
How does the State fund the
School Aid Fund?
5.39%
7.14%
Sales and Use Tax
Income Tax
12.98%
43.22%
State Education Tax
Federal Funds
13.28%
Lottery Revenue
17.99%
All Other
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How does the State fund our
schools?
• The Foundation Allowance (FA) Grant
– Guaranteed Per Pupil Funding (Proposal A)
– The FY2014 LOCS FA is $7,877
• How is the Foundation Allowance funded?
– First with local levy operating taxes
• 18 mills levied on Non-Homestead Taxable Value
• Currently generates $916 per pupil
– Then “State Aid” back fills the balance of the FA
• For FY2014 – That’s $6,961
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General Fund Operating Millage
• Funds the local portion of the FA
– Currently $916 per Pupil; $About $7.0 m total
• Levied on “Non-Homestead” property only
• Renewal proposal on the November ballot
– Authorization request is for 20.25 mills
• Headlee amendment limits future amount of levy
– Remaining Voter Authorization must always be above 18 mills
• District’s actual levy is 18 mills
– Levy amount is legally capped at 18 mills
• State’s calculation of the Foundation Allowance
– ALWAYS assumes the full 18 mills will be levied locally
– Does NOT backfill lost revenue due to under levy of 18 mills
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We are very pleased to present to you
tonight a balanced General Fund Budget
that is compliant with our fund balance
Board policy!
General Fund FY2015 Budget Overview
Total Budgeted Revenue
$
Total Budgeted Expenditures
79,574,232
79,484,968
Net Operating Surplus(Deficit)
$
89,264
Fund Balance, June 30, 2015
$
8,131,462
Fund Bal. as a % of Expenditures
10.2%
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Foundation Allowance
History
% Change
$ Change - Prior
Michigan
Prior
Year
Year
CPI
Fiscal Year
FA Amount
2006
7,934
175
2.26%
3.04%
2007
8,144
210
2.65%
1.80%
2008
8,218
74
0.91%
2.31%
2009
8,302
84
1.02%
-0.61%
2010
8,302
0
0.00%
0.78%
2011
8,302
0
0.00%
3.25%
2012
7,832
(470)
-5.66%
2.04%
2013
7,832
0
0.00%
1.57%
2014
2015
7,877
7,927
45
50
0.57% Est. 1.23%
0.63% Est. 1.61%
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Enrollment History
Year
Blended
Count
Blended
Change
%
Change
2006
7,835
81
0.20%
2007
7,866
31
0.40%
2008
7,853
(13)
-0.17%
2009
7,834
(19)
-0.24%
2010
7,838
4
0.05%
2011
7,797
(41)
-0.52%
2012
7,729
(68)
-0.87%
2013
7,605
(124)
-1.60%
2014
7,522
(83)
-1.09%
*2015
7,656
134
*Blended count utilized in the FY15 adopted budget.
1.78%
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Major Revenue Assumptions
• Resident District student count budgeted to decline by 85 FTE
• New SOC students budgeted to increase 218 FTE
• State aid weighting formula maintained at:
– 90% Sept. count plus 10% following Feb. count
• Foundation Allowance increased by $50 per pupil (net $18)
– Performance Funding reduced by $30 per pupil
– Best Practice Funding reduced by $2 per pupil
• Sec. 147c MPSER rate stabilization pass through revenue
budgeted at $3.66 million
– off set by corresponding expenditures – zero gain
• New categorical - Sec. 147d (est. at $580,000)
– Pass through like sec. 147c
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General Fund Revenue
by Source
9
General Fund Revenue
Budget
Revenue
Local Source
State Source
Federal Source
ISD Source
Other Source
Total Revenue
2013-14 Final
Amend
2014-15 Proposed
Budget
$8,531,225
$8,495,692
60,937,940
63,309,178
2,329,386
2,329,386
5,029,680
5,079,977
360,000
349,596
$77,177,827
$79,574,232
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Major Expenditure Assumptions
• Salary & wage related estimations included
• Staffing transitions, reductions and lay-offs have been
implemented
• MPSER retirement base rate set at 26.0%
• Healthcare insurance cost caps held to FY2014 levels
(excluding two person change)
• SEC. 147c MPSER rate stabilization included in
budgeted expenditures at $3.66 million
• SEC. 147d MPSER “one-time unfunded liability
payment estimated at $580,000
• Removal of several FY14 “one-time” expenditures
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Cost Reduction, Containment,
Avoidance & Efficiency Efforts
• Employee related concessions
• Employee contributions to health care
• Support Services outsourcing
– DMBurr, PESG, etc.
•
•
•
•
•
Facility and energy management systems
Restructuring of bus fleet & trans routes
Restructuring voted and non-voted debt
Use of shared personnel & services
Operational restructuring - print shop operations,
facility operations, custodial privatization…
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Historical Cost (Budget) Reductions,
Eliminations, and Avoidance (1999-2014)
Fiscal Year
Costs Reduced, Eliminated, & Avoided
1999-03
3,269,414
2003-04
3,526,157
2004-05
3,326,265
2006-07
1.796,260
2007-08
1,918,854
2009-10
130,000
2010-11
2,025,100
2011-12
3,023,184
2012-13
2,650,000
2013-14
2,420,000
TOTAL
24,085,234
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Retirement Rate History
Retirement $
Total
Amount (Net of Sec. Expenditures (Net
Fiscal Year
Weighted
Retirement
Rate
147c/d pass through
costs)
of Sec. 147c/d pass
through costs)
Retirement as a
% of
Expenditures
2005
14.87%
5,752,370
70,976,606
8.10%
2006
16.34%
6,834,177
75,975,985
9.00%
2007
17.74%
7,740,484
76,666,402
10.10%
2008
16.72%
7,362,084
77,009,100
9.60%
2009
16.54%
7,561,608
76,454,936
9.90%
2010
16.94%
7,935,250
83,274,629
9.50%
2011
2012
20.66%
24.46%
8,730,756
10,637,327
78,697,132
79,245,461
11.10%
13.42%
2013
**25.00%
10,222,732
77,773,265
13.14%
*2014
**25.50%
10,280,556
76,662,657
13.41%
*2015
**26.00%
10,613,393
75,824,968
14.00%
* FY2015 Budgeted figures
**Weighted average rate not inclusive of the pass through "MPSERS UAAL Rate Stablization" portion.
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Proposed 2014-15 Fund Budgets
• General Fund (11 – 19)
– Special Education (12) & Athletics (19)
• Food Service Fund (25)
• Community Services Fund (23)
– Childcare Services & Enrichment Programing
• Debt Service Fund(s)
– Energy Bond Fund (33) & Voted Bond Funds (37,38,39)
• Capital Project Fund(s)
– Energy Bond Capital Project Fund (43)
– District Capital Projects Fund (44)
• Risk – Internal Service Fund (81)
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FY2015 General Fund Budget
By Object
Salaries & Wages
15.66%
Benefits
51.36%
All Other
32.99%
16
General Fund Budget
Expenditures
2013-14 Final
Amend
Expenditures
Basic Programs
Added Needs
Pupil Support Services
Instruction Improvement
Educational Media Services
Technology Assisted Instruction
Instructional Staff Supervision
General Administration
School Administration
2014-15 Proposed
Budget
38,777,217
39,233,021
10,519,979
10,597,149
6,662,114
6,604,127
505,584
511,778
1,010,497
1,040,497
344,336
355,512
637,249
646,190
853,603
825,226
4,522,299
4,613,487
Continued on next slide
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General Fund Budget
Expenditures
Expenditures
Business Services
Operations and Maintenance
Transportation Services
Communication Services
Human Resources
Technology Services
Athletic Activities
Community Services
Other Financing Uses
Total Expenditures
2013-14 Final
Amend
2014-15 Proposed
Budget
963,800
1,011,152
5,739,882
5,400,239
3,641,651
3,674,226
157,833
157,833
741,763
750,704
1,347,552
1,354,093
1,191,442
1,176,981
298,819
301,054
958,785
1,231,699
78,874,405
79,484,968
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Continuing Revenue
and Cost Pressures
• FY2015 passed SAF budget contains a net cost of
$(16) per pupil for LOCS
–
–
–
–
•
•
•
•
LOCS’s FA increases $50 per pupil (pp)
LOCS’s Performance Funding categorical decreases $30 pp
LOCS’s Best Practice categorical decreases $2 pp
LOCS’s MPSERS employer rate increases $66 pp
Slow growth in the ISD PA-18 SE Revenue
Retirement related (MPSERS) cost increases
Personnel and other operating cost increases
Instructional, infrastructural, and facility capital needs
19
General Fund Fund Balance
• The reasons for a Fund Balance have not changed
– Cash flow
– Uncertainty of revenues
– Unanticipated expenditures
– Allows for proactive approach to programming
– Auditor recommendation
• Existing Policy targets 10% to 15% Fund Balance
• The District has intentionally added to Fund Balance in past
years
• Beginning with FY2008-09, the Board began to judiciously use
those funds to guide us through the economic storm
• FY2015 we are proposing a balanced budget ($89k surplus)
• FY2015 proposed GF fund balance is 10.2% of expenditures
20