Transcript Lakewood City School District Five

Five-Year Financial Forecast
and Educational Plan for
Fiscal Years 2011 through 2015
Board of Education Meeting
June 6, 2011
Funds Included….
•
General Fund (001)
•
Poverty-Based Assistance Fund (494)
•
School Fiscal Stabilization Fund (532)
•
Education Jobs Fund (504)
Structural Operating Deficit
in FY2012 and Beyond
Projected Excess of Revenues
Over (Under) Expenditures
$2,000,000
$Surplus / (Deficit
$(2,000,000)
$(4,000,000)
$(6,000,000)
$(8,000,000)
$(10,000,000)
$(12,000,000)
2011
2012
2013
Fiscal Year
2014
2015
Board and Administration
Proactive to Mitigate this
Situation…
•
$5.0 million of expenditure reductions
during fiscal years 2004 through 2009
•
$1.3 million of budget cuts made in
March 2009
•
$1.6 million of budget cuts made in
August 2009
•
Use of federal stimulus funds in fiscal
years 2010 and 2011
•
Passage of 6.9 mill levy by Lakewood voters
on May 4, 2010
•
$4.0 million of budget cuts for fiscal year
2011 (62 staff positions)
•
Use of Education Jobs funds for fiscal years
2011 and 2012
•
$1.0 million of planned expenditure
reductions for fiscal year 2012 (TRIP)
•
$825,000 (estimate) of staffing expenditure
reductions for fiscal year 2013 (TRIP)
Points to remember…
•
Eight years between 2010 and 2002 operating levies
versus three-year commitment
•
Economic uncertainties facing all districts
•
Lakewood is committed to excellence despite the
challenging financial times
•
$12.8M balance at June 30, 2010 + 6.9 mill levy + $4M
budget cuts……..$4.8M projected balance at June 30, 2013
•
Property valuations being challenged, thus reduced … will
require more millage to generate same revenue as in past with
higher valuations!
Major Revenue Considerations
•
Real Estate Taxes
•
Tangible Personal Property Taxes
•
Unrestricted State Aid
•
Restricted State Aid
•
Other (Interest Earnings)
Real Estate Taxes
•
Delinquent Taxes not increasing
•
Decline of 7.3% in Assessed Property Values
•
Decline of $350,000 from 5.03 inside mills
•
Tax Year 2009 values at 2003-2005 levels
•
2% growth assumed for FY2012 triennial
•
4% growth assumed for FY2015 reappraisal
•
Estimates assume collections at FY2010 levels with
no increase in delinquent taxes and/or no significant
losses from tax valuation challenges
Tangible Personal Property Taxes
•
No longer receive on business inventory/assets,
only on public utilities’ equipment
•
State has provided “hold harmless” funding – 2004
levels, 100%, 7 years - $2.3 million in FY2011
•
Governor’s Executive Budget Proposal eliminates
phase-out payments for Lakewood after $1 million
in FY2012
•
Governor’s Executive Budget Proposal also
eliminates $465,000 in electricity deregulation
payments after FY2011
Unrestricted State Aid
•
PASS funding model in FY2010 and 2011, but
unknown formula for FY2012 and beyond
•
7% of state funding from federal stimulus funds
for FY2011
•
No provisions for stimulus funds in FY2012 and
beyond
•
Governor’s Executive Budget Proposal
estimates used for FY2012 and FY2013, thus
reductions of $720,000 and $847,000 from prior
forecast
Restricted State Aid
•
Education Jobs funds ($915,333) only available for
fiscal years 2011 and 2012
•
Hired elementary teachers to reduce class sizes for
these two school years
•
Other funding source or eliminate positions??
•
Governor’s Executive Budget proposal eliminates
special education catastrophic aid reimbursement
in FY2012 ($71,000 - $484,000 in recent years)
Other Revenues (Interest Earnings)
Reduced Interest Rates + Reduced Balances
to Invest = Reduced Interest Earnings
FY2011 Projection = $ 200,000.00
FY2010:
$ 410,264.35
FY2009:
$ 793,661.59
FY2008:
$ 1,657,991.47
FY2007:
$ 1,788,600.83
FY2006:
$ 1,339,816.02
FY2005:
$ 597,825.19
FY2004
$ 278,696.37
State Revenue Losses under Governor’s
Executive Budget Proposal and House
Modifications
•
Losses compared to FY2011 funding for
foundation, tangible personal property
replacement, and electricity deregulation offset:
•
•
•
$2.9 million in FY2012
$3.4 million in FY2013
MAY get some relief on TPP replacement in final
budget IF possible changes being discussed to
continue current phase-out schedule become
law
Major Expenditure Considerations
•
Personal Services (Wages)
•
Insurance Benefits/Retirement
•
Purchased Services
•
Supplies/Materials
•
Equipment
•
Other (Audit, tax collection fees, liability
insurance, etc.)
Personal Services (Wages)
•
0% base increase for FY2011 for all staff
•
62 full-time equivalent positions reduced for 2010-2011
school year
•
Stimulus funds and Education Jobs funds used are
one-time funding sources for 1 or 2 years
•
Extended-day Kindergarten largely funded by Title I
funds for 2010-2011 school year, then General Fund
•
TRIP and other staffing replacement savings of
$1 million (estimate) in FY2012 and additional
$825,000 (estimate) in FY2013 (wages and benefits)
Insurance Benefits/Retirement
•
11.44% increase ($757,000) in Suburban Health
Consortium premiums for October 2010
•
FY2010 - 0%; FY2009 – 4.62%
•
10% projected increases for FY2012 and
beyond
•
Mandatory spousal enrollment for new hires in
2005/2006 school year and after – 15% savings
Purchased Services,
Supplies/Materials, Equipment, Other
•
$900,000 of Title VI-B stimulus funds used to
offset general fund expenses in FY2010 and
FY2011
•
Textbook budget partially restored in FY2011
($200,000) and FY2012 ($150,000)
•
Staff development budget partially restored in
FY2012 ($20,000)
•
Even with restoration of these items, other budget
cuts in instruction, technology, and maintenance
are not able to be restored
Our Task: Providing long-term, excellent
educational opportunities for Lakewood’s
youth while managing the short-term
economic crisis
Projected Excess of Revenues
Over (Under) Expenditures
$2,000,000
$Surplus / (Deficit
$(2,000,000)
$(4,000,000)
$(6,000,000)
$(8,000,000)
$(10,000,000)
$(12,000,000)
2011
2012
2013
Fiscal Year
2014
2015