Transcript Elida Local Schools

Elida Local Schools
Financial Summit VI
Report to Stakeholders
Fiscal Year 2010-11
Joel L. Parker,CPA
Introductions
 Economic
Outlook
 Financial Update
 Revenue Discussion
Goals
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Review the financial condition of Elida
Local Schools
Expand the knowledge base on school
funding issues
Review data for future financial planning
Exchange ideas on “best practices”
Encourage dialogue on future economic
trends
Discussion - Economy
 Modest
signs of economic recovery
 Unemployment decreasing
 Housing Market – slight
improvement
 Rate of Inflation
 Rate of health care inflation
Concerns
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State budget gap
Tax delinquencies
Loss in state aid
Loss of inventory tax
Loss of interest income
No inflationary growth in revenue
Unfunded mandates
Vouchers
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“Everybody is ignorant, only in
different subjects”
Will Rodgers
OSBA Platform supports legislation that:
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Provides a thorough, efficient education
Provides for inflationary revenue growth
Eliminates “Phantom Revenue”
Eliminates over-reliance on local property
taxes
Prohibits Federal and State unfunded
mandates
Requires all sectors of economy to pay a
fair share of the cost of public education
OHIO TAX “SHIFT”
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Remove Inventory Tax
Reduce Corporate Franchise Tax
Reduce Personal Income Tax
Good for business
Good for individuals
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Result: Schools lose $3 billion
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Comparison Group-Administrative Expense Per Pupil FY11
1,800
ADMINISTRATIVE EXPENSES
1,600
1,400
1,200
1,000
800
600
400
200
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Administration: Salaries for administrators, office staff, and office supplies
Comparison Group-Expense Per Pupil FY 11
14,000
12,000
10,000
8,000
6,000
4,000
2,000
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State Aid-Line 1.035
Fiscal Year
Actual
2% Growth
ADM
2004
7,561,375
2005
7,502,306
7,712,603 2470
2006
7,434,281
7,866,855 2454
2007
7,567,028
8,024,192 2478
2008
7,511,293
8,184,675 2383
2009
7,538,352
8,348,369 2472
2010
6,928,844
8,515,336 2472
2011
6,921,455
8,685,643 2505
2012
6,896,194
8,859,356 2541
Loss
2004-12
665,181
Tangible Personal Property Tax-Line 1.02
Fiscal Year
Loss
2004-2012
Actual
2% Growth
2004
1,513,272
1,555,812
2005
1,463,699
1,586,928
2006
1,531,472
1,618,667
2007
1,230,346
1,651,040
2008
826,456
1,684,061
2009
635,757
1,717,742
2010
249,114
1,752,097
2011
305,801
1,787,139
2012
272,662
1,822,882
1,240,610
Real Estate Tax-Line 1.01
Fiscal Year
Actual
2% Growth
2008
8,439,846
2009
8,374,682
8,608,643
2010
8,389,617
8,780,816
2011
8,298,226
8,956,432
2012
8,544,368
9,135,561
Gain
2008-12
104,522
Interest Income
Fiscal Year
2008
2009
2010
2011
2012
Decrease
2008-2012
Actual
240,123
109,127
53,639
20,271
14,045
226,078
Tax Delinquencies
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2004
2005
2006
2007
2008
2009
2010
2011
2012
Total
$440,608
$393,473
$320,795
$294,267
$468,576
$530,373
$444,274
$455,707
$467,324
$3,815,397
Next 50 Years
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Where will lost revenue come from?
We cannot just increase fees like
hospitals, colleges or private sector
Donner Budgeting Process
Dual credit example
Total Expense Growth-Line 4.5
Fiscal Year
Actual
CPI
2004
16,761,379
0.96%
2.68
2005
16,931,857
1.02%
3.39
2006
17,784,119
5.03%
3.24
2007
18,781,647
5.61%
2.85
2008
19,436,233
3.49%
3.85
2009
20,154,989
3.70%
-0.34
2010
20,821,533
3.31%
1.64
2011
21,399,623
2.78%
3.16
2012
20,473,910
-4.32%
2.93
Increase
3,712,531
salary,1m
benefits, .9 m other)
(1.9m
2004-2012
21.58%
23.40
Cash Flow Storm
Real Estate Loss
(163,812)
State Aid Loss
(680,147)
Inventory Tax Loss
Interest Income Loss
(1,219,505)
(223,972)
Expense Growth
(3,793,189)
Negative Cash Flow
(6,080,625)
Trend Data
* No inflationary growth on any revenue stream
* Inflation on every aspect of operations
* (Health care,fuel, utilities, wages, special ed, )
WHAT HAVE WE DONE TO STAY LEAN?
Looking back: 2003-04:
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Administrative cuts $239,155
Administrative Wages - 0% increase 2 yrs
Streamlined food service – no general fund $
Moved staff to PPO insurance plan
Moved to partial pay to participate
Reduced bus fuel consumption
Cost sharing on health premiums
Continued 2004-05-06:
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Withdrawal from ESC Alternative Program $7,000
Attrition of one mechanic’s position - $58,472
Hire Own Psychologist - $9,923
2004-05 one less teacher at EE
2005-06 one less teacher at EE and HS
Partner with WCLA on software $14,000
Review SF6 billing - $24,000
The Bottom Line:
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Constant Review of
Staffing
Meal Policy
American Express
Bus Idle
Share Ins Increases
Bulk Paper
Bid Property/Liability
Diesel Grant
Safe Route Grant
Dir dep/email PO
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Turn down thermostats
Change drug company
No health ins R/R
New health plans
Auto lights switches
Bid projects
MAC Grants
Early bus buy
Cost Reductions: 2009-10
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Review set points $74,000
Eliminate Teacher Academy $65,000
Re-route buses(4) $84,444
Reduce special ed teacher $76,102
Reduce MS Industrial Technolgy
Reduce MS Home Economics
And more 2010-11:
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Consolidate choir position
Reduce MS teacher-(technology class)
Move Central Office secretary to HS
Reduce building budgets
Lean on grant $ for technology
Work on reductions in health care
Reduce bus routes
Review staffing
Pay off HB 264 Note early
Reduce guidance position (HS)
Cost Reduction-Spring 2011/Update
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Phase I- Cut 5 teachers, 1 Aide, 1
Guidance = $332,700
Phase II – Close Gomer
Phase III – EMS re-configure
Wage Freeze -2011
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Administrators – Another 2 yr freeze
Adm-same pay FY 11-12,12-13,13-14
All Others – 0 on base 2 years, steps
year 1, no steps year 2
Savings $823,000
Cuts, Cuts and More Cuts-FY 12-13
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Librarian – position to 3 days a week
Close Gomer Building
Reduce Central Office Director
Reduce Gomer Principal/teacher
EHS-reduce Success Program
EHS-reduce 1 teacher
EMS – reduce 1 teacher
EE- reduce 1 teacher
Reduce 1 aide
Reduce 1 secretary
Reduce 1.5 custodians
Total Savings $590,000
Alternative Funding:
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Fieldhouse Renovation $350,000
Concession Building $150,000
Locker/weight room $100,000
Piano Fund
Safe Route Grant
BWC Grant – Buses $22,000
June 30 Carry-Over: A New Cycle
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2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$1,048,819
$ 758,675
$ 821,146
$ 360,933
$ 967,429
$1,865,900
$2,645,703
$3,496,376
$4,071,288
$4,127,565
$3,454,672
$2,845,756
$2,153,235
23 days
17 days
18 days
8 days
21 days
39 days
53 days
68 days
76 days
74 days
60 days
48 days
38 days
Health Insurance
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1/1/09 Medical Rate Increase 15%
1/1/09 Dental Rate Increase 20%
1/1/09 New Plan MDHP Developed
1/1/10 New High Deductible Plan
1/1/10 Medical Rate Increase 20%
1/1/10 Dental Rate Increase 20%
2010 - introduce HDHP plan
2011 - Spousal coordination of benefits
Change in TPA and Consultant
2012 – 2 plans (mid and high deductible)
General Fund Expenditures
FY Ended June 30, 2011
Total Revenue: $20,821,610
Instruction:
$13,664,960
Instr.Staff Support: $ 496,088
Pupil Support:
$ 605,048
TOTAL
$14,766,096
Special Education – General Fund
FY
97-98
Expense
604,533
98-99
1,063,717
99-00
1,062,413
00-01
1,274,183
01-02
1,318,855
02-03
1,650,698
03-04
1,651,644
04-05
1,442,321
05-06
1,349,258
06-07
1,310,212
07-08
1,421,907
08-09
1,544,590
09-10
1,680,792
10-11
1,511,852
Increase
907,319
Open Enrollment
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FY
FY
FY
FY
FY
FY
07
08
09
10
11
12
In
In
In
In
In
In
$535,000
$597,000
$912,000
$1.24 million
$1.38 million
$1.54 million
Out $1.3 million
Out $1.4 million
Out $1.5 million
Out $1.48 million
Out $ 1.6 million
Out $1.52 million
Tax Base
2008
2009
2010
2011
2012
RESIDENTIAL
TANGIBLE
PERSONAL
$100,017,980
$101,438,990
$108,803,850
$105,507,940
$108,714,380
$5,116,935
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DISCUSSION
How do we address declining revenue, remain
lean operationally, and still provide excellence
in education?
Levy Options
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Emergency Property Tax Levy
- up to 10yrs set amount
Traditional Income Tax
- any yr,C -.25 increments
Earned Income Tax
-any year,C- .25 increments
Combined Ballot Questions
(property tax levy + earned income tax)
- property tax-up to 10 or C, fixed amount
plus .25 increment of earned income
tax will float with economy
Levy Timeline-Future Dates
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May 2010
Fall 2012
2013
2013 or14
2014
2016
2019
2021
2024
2026
2029
Renewed Emergency Levy
New money levy
PI Levy Continuing
Bond Issue EE-OSFC
Renew Emergency Levy
Renew 2012 Levy
Renew Emergency Levy
Renew 2012 Levy
Renew Emergency Levy
Renew 2012 Levy
Renew Emergency Levy