Transcript Cleveland Municipal School District

Cleveland Municipal School District
Fiscal Year 2009 Budget Overview
Cleveland Municipal School District
Average Daily Membership
2007
2008
2009
CMSD Count
53,202
49,857
46,548
Charter Count
11,573
12,693
13,593
The District is projected to lose over 3,000 students per year. Charter school enrollment is projected to
increase 900 students per year.
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Cleveland Municipal School District
Where the Money Comes From
2008-2009
Property Tax Allocation
6.9%
State
65.1%
Federal
0.9%
Catastrophic Aid
0.6%
Other
3.3%
Local Taxes
23.2%
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The proposed general operating revenue forecast for the 2008-2009 school year totals $661,224,776, a decrease of
$12.4 million or 1.8% lower then the current year. State sources represent 72.6% of the District’s revenue.
Cleveland Municipal School District
Local Revenue - Tax Collection Estimates
175,000,000
25,436,289
11,652,827
150,000,000
Revenue
125,000,000
100,000,000
149,273,482
141,728,799
75,000,000
50,000,000
25,000,000
2007 - 2008
2008 - 2009
Year
Real Estate
Personal Tangible
Tax revenues for 2009 are projected at $153,381,626 a decrease of $21.3 million or 12.2%. This decrease is primarily due to:
-Reduced real property tax collection rate to 86.81% from 88.04%.
-Shift of real property tax collections to Homestead/Rollback revenue due to HB119 – elderly and disabled home owner tax reduction.
-The continued elimination of personal tangible property tax.
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Cleveland Municipal School District
Property Tax Allocation - State Hold Harmless Reimbursements
50,000,000
45,000,000
40,000,000
Revenue
35,000,000
30,000,000
$28,864,342
$20,508,697
25,000,000
20,000,000
$4,478,226
$4,478,226
15,000,000
10,000,000
$12,000,000
$10,926,878
5,000,000
0
2007 - 2008
2008 - 2009
Year
Property Tax Rollbacks
SB3 & 287 Reimbursements
HB 66 CAT Reimbursements
Property Tax Allocation increase of $9.4 million or 26.3% is due to:
-The shift of Real Property Tax to Homestead/Rollback due to HB119
-Increase of HB66 CAT Tax Reimbursements based on the elimination of Personal Tangible Property Tax.
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Cleveland Municipal School District
State Revenue
$450,000,000
$71,065,610
$68,070,561
$66,257,285
$66,642,760
$293,249,518
$295,948,549
$400,000,000
$350,000,000
Revenue
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
2007 - 2008
2008 - 2009
Year
State Foundation
Poverty Based Assistance
Transitional Aid Guarantee
Due to declining enrollment, CMSD is a guarantee district. This results in the District receiving the same amount of state funding as it did in 2007
and 2008. Although our overall state funding remains level, the deductions for community schools continues to rise (from $93 million in 2008 to 6
$101.4 million in 2009).
Cleveland Municipal School District
Tax and Hold Harmless vs. State Foundation Revenue
$450,000,000
$400,000,000
Revenue
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
2004
2005
2006
2007
2008
2009
Year
Local Tax and Property Tax Allocation
Net State Foundation
Gross State Foundation
Tax revenue combined with HB66 hold harmless reimbursements is projected at $198.7 million, a decrease of $11.9 million or 5.65%. Tax
revenue is lower due to the collection rate of 86.81% and phase out of tangible personal property tax.
The difference between the gross and net state funding represents flow thru charter school tuition costs. As charter school enrollment
increases, the net dollars available to CMSD operations declines.
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Cleveland Municipal School District
Other Revenue
$30,000,000
$4,502,754
$6,000,000
$25,000,000
$7,750,000
$6,200,000
Revenue
$20,000,000
$4,045,000
$4,045,000
$13,474,849
$13,028,712
$15,000,000
$10,000,000
$5,000,000
$0
2007 - 2008
2008 - 2009
Year
Other
Catastrophic Aid
Interest
Medicaid
Other Revenue is projected to decrease $498,891 or 1.7%.
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Cleveland Municipal School District
Where the Money Goes
2008-2009
Charter School Tuition
14.3%
All Other
16.3%
Salaries & Benefits
69.4%
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The proposed general operating budget for the 2008-2009 school year totals $711,892,569, an increase of $27.5 million over the current year budget.
Cleveland Municipal School District
Salaries & Benefits
$500,000,000
$127,440,289
$124,809,159
Expenditure
$400,000,000
$300,000,000
$366,850,000
$354,836,991
$200,000,000
$100,000,000
$0
2007-08
2008-09
Year
Salaries
Benefits
Employee compensation (salaries and fringe benefits) are projected at $494.3 million, an increase of $14.6 million over the current year budget.
Salary estimates include a provision for a 3% base wage increase consistent with our employee union agreements.
Health insurance estimates reflect a rate increase of 2%.
Wage estimates have been adjusted to include salary schedule step increases.
District retirement costs are projected to increase consistent with the overall increase in salary levels.
Compensation projections reflect a net reduction of 70 positions due to declining enrollment.
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Cleveland Municipal School District
Supplies, Textbooks & Equipment
$10,000,000
Expenditure
$7,500,000
$14,327,392
$14,633,942
$5,000,000
$2,500,000
$0
2007-08
2008-09
Year
The allocation for supplies, textbooks and equipment is recommended at $14.6 million, a $307,000 increase over the current year budget.
The appropriation for textbooks is recommended at $5.9 million, a 3% increase over current year allocation.
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Cleveland Municipal School District
Purchased Services
$200,000,000
$59,574,589
$58,263,040
Expenditure
$150,000,000
$100,000,000
$101,390,832
$93,019,112
$50,000,000
$7,948,363
$8,560,000
$14,671,325
$16,700,000
$0
2007-08
2008-09
Year
Utilities
Student Transportation
Charter School Tuition
Other Purchased Services
Purchased Services are projected at $186.2 million, an increase of $12.3 million over current year estimates.
Charter school tuition is projected at $101.4 million, up $8.4 million (9%) from current year projections.
Utility costs are projected to increase by approximately $2 million over current year projections.
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Other purchased services are projected to increase $1.3 million. Tuition costs for students who reside in the District and receive services at other
educational institutions are projected to increase.
Cleveland Municipal School District
Other Expenditures
$7,500,000
Expenditure
$5,000,000
$6,047,559
$5,840,908
$2,500,000
$0
2007-08
2008-09
Year
Other Miscellaneous expenses (fixed charges) are projected at $6.0 million.
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This category of expenditures includes County Auditor and Treasurer fees ($3.6 million), fees charged by the County for the collection of delinquent
taxes ($1.3 million) and property and casualty insurance ($0.4 million).
Cleveland Municipal School District
Debt Service
$1,500,000
$1,250,000
Expenditure
$1,000,000
$750,000
$1,251,359
$1,251,358
$500,000
$250,000
$0
2007-08
2008-09
Year
Debt Service expenditures are projected at $1,251,000. This category provides for the repayment on the District’s HB 264 Energy Conservation
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Bonds and loans from the Environmental Protection Agency for use in asbestos removal projects.
Cleveland Municipal School District
Advances and Transfers
$10,000,000
Expenditure
$7,500,000
$9,444,000
$9,444,000
$5,000,000
$2,500,000
$0
2007-08
2008-09
Year
The 2008-2009 budget proposal includes $6,000,000 to cover a potential deficit in the Food Service program.
Transfers include a $944,000 sinking fund payment to repay the District’s Qualified Zone Academy Bonds (QZAB) debt.
$2.5 million has been projected to cover year end cash flow advances (June 2009 advances to Special Revenue Funds).
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Cleveland Municipal School District
Summary of Revenues and Expenditures
2007 - 2008
Beginning Unencumbered Cash Balance
2008 - 2009
80,418,495
69,607,113
Total Revenues
673,600,267
661,224,776
Total Expenses
684,411,649
711,892,569
69,607,113
18,939,320
Ending Unencumbered Cash Balance
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Cleveland Municipal School District
Major Financial Uncertainties for the 2008-2009 School Year

CMSD Student Enrollment

2008-2009 Charter School Enrollment
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Actual unreserved carry-over balance (June 30, 2008 unreserved balance)
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Energy Costs
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Approval of the new Medicaid reimbursement plan to reinstate Medicaid reimbursements from the
Federal Government
Tax collection rate and delinquencies
We have prepared this year’s budget using the best available information, knowledge and judgment
in those areas which are variable. However, there are numerous financial uncertainties that could
have a major impact on the 2008-2009 school year budget.
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