Transcript DPS FY 2005 Adopted Budget

Detroit Public
Schools FY 2005
Adopted Budget
June 30, 2004
DPS FY 2005 Adopted
Budget
Goal of the Detroit Public Schools
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Improve Student Achievement.
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Create a Safe School Environment.
Enhance Parental and Community
Involvement.
Transform the District into an Effective and
Efficient Organization.
DPS FY 2005 Adopted
Budget

We develop and
implement the budget to
support the District’s
goal of improving
student achievement and
performance.
DPS FY 2005 Adopted
Budget
Important Information About This
Adopted Budget

We are proposing
BALANCED BUDGETS
for all funds of the
District.
DPS FY 2005 Adopted
Budget
Important Information About This Adopted
Budget
Millage Rates
Operating
18.0000 mills (non-homestead)
Debt Service 13.0000 mills (homestead and non-homestead)
DPS FY 2005 Adopted
Budget
Important Information About
This Adopted Budget

Approximately 89% of our General
Fund Revenue is derived from the
State Foundation Allowance which is
totally dependent on the blended
student count.
(Blended = 80% Fall and 20% Winter Student Count)
DPS FY 2005 Adopted
Budget
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This Budget has been developed and balanced with the
following assumptions:
Required staff reductions will be implemented (2,100 to date)
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Labor contract negotiations will provide assistance
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Class size requirements are maintained
DPS FY 2005 Adopted
Budget
This Budget has been developed and balanced with the
following assumptions (Cont.):
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No adverse Legislative changes
All state funding levels will remain constant
Second Chance program projections are not
included
The full impact of the early retirement incentive
projections are not included
We will continue to refine both revenue and expenditure budgets
as new information becomes available.
DPS FY 2005 Adopted
Budget
K-12 Student Blended Trends

State Aid F.T.E. Membership continues to decline:
FY 99
FY 00
FY 01
FY 02
FY 03
FY 04
Projected
FY05
173,848
168,213 162,693 159,694 157,003 150,415
144,538
Decline
-5,635
-5,520
-2,999
-2,691
-6,588
-5,877
Decline %
3.2%
3.2%
1.8%
1.6%
4.1%
3.9%
(Blended = 80% Fall and 20% Winter Student Count)
DPS FY 2005 Adopted
Budget
Revenues FY2004 and FY 2005

We are forecasting a two year loss of
12,465 funded pupils in the State Aid
Membership count resulting in an
estimated State Aid revenue decrease
of $89,498,700 over Fiscal Years 2004
and 2005.
DPS FY 2005 Adopted
Budget
Revenues FY 2005
General Fund
The State does not assist large school
districts with declining enrollment. Unlike
smaller school districts, the state does not
allow larger school districts to average
declining student counts over multiple
years. Therefore, the impact of declining
enrollment is felt immediately.
DPS FY 2005 Adopted
Budget
Revenues FY 2005
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State Aid Per Pupil Funding is projected to
remain at $7,180 per pupil the 2002 – 2003
level. There have been no increases for the
past three years.
This amount is based on DPS retaining the
$15 million supplemental funding for the
reform legislation.
DPS FY 2005 Adopted
Budget
General Fund Revenue FY 2005
The total General Fund Revenue has
declined from the previous year by
$37,224,189.
Major Decreases Include:
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
State Aid
Property Tax
DPS FY 2005 Adopted
Budget
Revenue Analysis
Description
State Aid
Property Tax
Investment Earnings
Charter Schools
Medicaid
Other Revenue
Durant
Total
FY 2004
Estimated
Revenues
FY 2005
Projected
Revenues
$ 934,933,874
81,170,963
$905,163,095
72,971,468
859,966
305,114
900,000
417,048
7,000,000
21,044,230
7,819,079
20,818,268
5,930,443
5,930,443
$1,051,244,590
$1,014,019,401
DPS FY 2005 Adopted
Budget
General Fund Revenue Distribution
Federal 0.77%
State 89.26%
Local 7.20%
Other 2.77%
$1,014,019,401
DPS FY 2005 Adopted Budget
General Fund Revenue Summary
State Aid
Property Tax
Investment
Earnings
Charter Schools
Medicaid
Reimbursement
Other Revenue
Durant Settlement
Total Revenues
% of
Total
FY 2005 Est.
$905,163,095
72,971,468
89.26%
7.20%
900,000
0.10%
417,048
7,819,079
0.04%
0.78%
20,818,268
2.05%
5,930,443
0.58%
$1,014,019,401 100.00%
DPS FY 2005 Adopted
Budget
General Fund Expenditures
Amount
% of Total
$ 528,141,921
52.19%
206,551,520
77,912,374
20.41%
7.70%
Textbooks
25,274,344
2.50%
Supplies
Capital Outlay
Utilities
17,000,000
11,430,443
34,857,581
1.68%
1.13%
3.44%
Telecommunications
9,425,940
0.93%
Other Expenditures
2,187,878
0.22%
Interest
3,910,000
0.39%
95,308,000
1,012,000,001
9.42%
100.00%
Salaries
Benefits
Purchased Services
Transfers
Total Expenditures
DPS FY 2005 Adopted
Budget
General Fund Expenditures
Salaries 52.19%
Benefits 20.41%
Purchased Services 7.70%
Textbooks 2.50%
Supplies 1.68%
Capital Outlay 1.13%
Utilities 3.44%
Telecommunications 0.93%
Other Expenditures 0.22%
Appropriation Estimates Only
Page 18
Interest 0.39%
Transfers 9.42%
DPS FY 2005 Adopted Budget
39%
Instructional
(Classroom)
52%
9%
Instructional
Support
Non-Instructional
Total instructional expenditures are 61%
DPS FY 2005 Adopted
Budget
Expenditures FY 2005
General Fund
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The amount shown for transfers
($95,308,000) reflects the need to transfer
money to other funds within the District.
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A significant portion of the transfer
($72,700,000) is dedicated to the Special
Education Fund. This amount is needed
to remain compliant.
DPS FY 2005 Adopted
Budget
Transfer Detail
FY 04
Estimated
Transfers
Description
Fund 21 Athletics
$
2,608,200
FY 05
Projected
Transfers
$
2,608,000
Fund 22 Special Ed.
41,617,210
72,700,000
Fund 89 Risk Related
Activities
14,168,171
20,000,000
$ 58,393,581
$95,308,000
Total
DPS FY 2005 Adopted Budget
Budgeted Expenditure Comparison
Budgeted FY 04
Projected FY 05
Salaries
$621,216,032
$528,141,921
Fringes
202,174,686
206,551,520
Purchased Services
103,664,487
77,912,374
Textbooks
27,000,000
25,274,344
Supplies
23,878,589
17,000,000
3,833,163
11,430,443
Utilities
33,600,000
34,857,581
Telecommunications
11,000,000
9,425,940
Other Expenditures
10,335,106
2,187,878
3,334,500
3,910,000
108,694,968
$1,148,731,531
95,308,000
$1,012,000,001
Capital Outlay
Interest
Transfers
Total Expenditures
DPS FY 2005 Adopted
Budget
Beginning Fund Balance Analysis / FY 05 Ending Reserves
FY 04
FY 05
Description
Beginning Fund
Ending
Balances
Reserves
Reserve for repayment
of delinquent taxes
Undesignated
$2,000,000
$1,443,182
$1,443,182
$2,459,238
$4,459,238
DPS FY 2005 Adopted
Budget
Other Operating Fund Information/ Projections
Revenue
Expenditures
Description
Fund 12 Designated Special
Purpose Grants
$292,725,560
$292,725,560
Fund 13 Adult Education
$ 12,790,195
$ 4,030,835
$1,608,000
$1,608,000
Fund 22 Special Education
$223,700,000
$223,700,000
Fund 25 Food Service
Fund 26 School Athletic
Activities
$ 51,702,559
$ 1,000,000
$ 51,702,559
$ 1,000,000
Fund 21 Athletics
DPS FY 2005 Adopted
Budget
Other Fund Projections
Beginning Balance
Revenue
Expenditures
Description
Fund 31 Bond
Redemption
Fund 41 Durant Bonds
Fund 44 1994 Bonds
$43,750,473
$110,832,337
$116,300,000
$5,400,000
$200,000
$5,600,000
$498,571,663
$4,500,000
$300,517,000
DPS FY 2005 Adopted
Budget
Other Operating Fund Projections
Revenue
Expenditures
Description
Fund 88 Employee
Self-Insurance
$165,000,000
$164,003,344
Fund 89 Risk Related
Activities
$ 20,000,000
$ 20,000,000
DPS FY 2005 Adopted
Budget
Expenditures FY 2005
General Fund
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This budget has little if any flexibility.
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Minor changes in receipt of revenues
or minor increases in expenditures will
require mid-year adjustments, typically
in November and February.
DPS FY 2005 Adopted
Budget
Expenditures FY 2005
General Fund
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Organizational budget discipline must
be enforced if we are to resolve the
current budget deficit the District is
facing.
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Increased use of the budget controls
within our financial system will be
utilized to ensure this is accomplished.
DPS FY 2005 Adopted
Budget
Actions Taken
Budget for purchased services, supplies, equipment,
travel, and consultants were reduced by $43.8 million
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Includes 33% reduction of Aramark maintenance management
contract.
Extend mowing and school cleaning cycle time
Reduce overtime by approximately 15%
Changed to building substitute model
DPS FY 2005 Adopted
Budget
Actions Taken
Adjustments to the second semester staffing
Tiering the busing to reduce transportation cost
Closed five schools
Deferring building maintenance, will do safety and
health repairs as needed
Reduce the textbook adoption
Shorten the athletic season to minimum requirement
Reduce property, casualty insurance expenditures
DPS FY 2005 Adopted
Budget
Legislative Efforts
To increase preschool funding under
the Michigan School Readiness
Program.
Exploring the possibility of spending
31A At Risk money on security
operations
DPS FY 2005 Adopted
Budget
Additional detail and budget comparisons
will become available as the legislative,
labor negotiations, and budget amendment
processes continue.
The Adopted Budget has been posted on
our web site. The site will be updated once
the Final Budget has been adopted.