Transcript State of the District

Topics for Discussion
School Aid Budget
Highlights of State of the State
Impact for Kalamazoo RESA
Knowns and Unknowns
Legislative Update
Employee Compensation
and Benefit Changes
For Kalamazoo RESA
2013-2014 school year
Program Highlights and
New Initiatives
Kalamazoo RESA
Snapshot: Michigan’s Economy
Modest growth in revenues
Surplus expected for 2013 & 2014 budget
One of the biggest pressures on the budget is the
increased cost of MPSERS – we expect much of
the surplus to be directed here.
Road funding debate could play a big part in the
decision making which could effect revenues to
schools – watch for tax policy changes
Unemployment rate has been steady at 8.5%
Modest gains in employment in the private sector
but continued decline in the governmental sector
Positive growth in real estate and auto markets
Statewide estimate for wage and salary growth for
FY 2014 is 0.8% With overall personal income
projected to grow 1.9%
Legislation to watch
EAA
Possible ISD Role
Roads
Impact on School Aid Fund Budget
Common Core and SBAC
Uncertain future
Skunkworks project
Now assigned to MDE
School Aid Budget Process
Conference report draft issued May 23rd
Governor has set goal of June 1st for completion
State Budget: Proposal
Three varying versions:
Executive, House, Senate
Major Factors:
ISD State Aid Same as
2012-2013 with 0-3.2% if
Best Practices met (3.2% in conf rpt)
Foundation allowance
GSRP various levels of Increased
$0-$100/pp for lowest funded
slots and per pupil allocation
districts ($30-60 in conference
report)
MPSERS contribution rate 20.96%Equity payment - $0-$34/pp for
lowest funded districts (up to $50 in 24.79%
Balance to be paid from 3% escrow
conf rpt)
80-100% funding for cyber schools fund and $150 million reserve fund
(not included in conf rpt)
Continues transfers to community
Pupil Count Changes
colleges and universities
80/20, 80/20 current year, 90/10
current year, new online enrollment
options(90/10 current year – conf rpt) Continues most categoricals at
current year funding
Best Practices Language
$0-$16/pp for LEAs ($52 conf rpt
Performance $30/$30/$40)
Kalamazoo RESA’s strategy is
Consolidation of Services
to balance the budget through
incentive grants eliminated
various approaches
Technology Readiness Grants
$0-$50,0000,000 ($50 M conf rpt)
KRESA Budget Highlights
 General Fund Revenues



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No increase in taxable values
No increase in State Aid (possible reduction)
Grant changes – reductions and increases
Reduction in Federal revenue due to
Sequestration
 Changes made in Fee for Service Models
 Special Education Revenues
 No increase in taxable values
 No or minimal increase in State Aid
 Reduction in Federal revenue due to
Sequestration
Kalamazoo RESA Compensation and
Benefit Changes for 2013-2014
Approved by the Board of Education on May 16
Average of 2% increase in
salary schedules
Steps frozen for all employees
Add Step 25 to Grade 17 salary schedule to maintain
competitiveness with local districts along with other
market adjustments for interpreters, braillists,
Approved new salary schedule for technology
positions and early childhood education positions
Commitment to moving to a Performance pay
system for all employees vs. increases based on
seniority. A study will be conducted during the
2013-2014 school year. The board is implementing
this concept for Grades 21 and above for the 20132014 school year.
Total cost to the budget for all recommendations
approved by the Board of Education - approximately
$ 759,000
Costs: Health Insurance
Health Insurance Plan decisions for current employees
delayed until October 2013
Estimated 9% increase in employee
health/dental/vision/life/long-term disability insurance
January-June 2014 for budget purposes
Comparison to Cap unknown until Oct or Nov 2013
Affordable Health Care Reform – Next phase effective
January 1, 2014
KRESA’s measurement period will run from April 2013 –
October 2013. Our administration period will be
November and December of 2013 and our stabilization
period will be January – December of 2014.
Implement Tier 2 benefit plan for all new hires as of
July 1, 2013
Single subscriber coverage for Grades 9-12
Reduced paid time away benefits
Budget: Summary
Increased Compensation Costs
Wages – 2% raise
Market Adjustments
Retirement
Health Insurance
Other Benefit Costs
Increased Costs
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=
=
=
=
=
$ 393,061
41,028
$ 187,243
$ 178,565
$ 38,898
$ 838,795
General fund budget projection
Total Revenues
Total Expenditures
Excess/(Deficit)
Unassigned Fund Balance
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=
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=
31,524,665
31,646,292
(121,627)
4,142,515
13%
Special Education fund budget projection
Total Revenues
Total Expenditures
Excess/(Deficit)
Unassigned Fund Balance
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=
=
=
Combined fund balance
Reduction in $’s paid to LEAs
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=
36,382,729
36,382,729
-0700,000
2%
7%
4,769,026
Still up in the air
State aid act?
Foundation allowance?
MPSERS reform?
Any Time, Any Place, Any Way, Any
Pace initiatives
What we’re doing
Rebalancing
budgets
Cost
Containment
Strategies
Eliminating
positions
through
attrition
wherever
possible
Spending
down fund
balance
Pursuing
more grant
funding
Taking on
new
initiatives
New Initiatives for 2013-2014
Early Childhood
Starting July 1, 2013
Kalamazoo RESA
anticipates it will become
the grantee for the
Kalamazoo County Head
Start program.
We will be hiring
approximately 80-90
employees to staff 20
classrooms throughout
the county and provide
support services to
students and families.
Kalamazoo RESA will also
be operating the GSRP
preschool programs in
some of our districts
next year
Education
Reconnection
YOU is implementing a
new program in
collaboration with our local
school districts to
reconnect students who
have left their educational
programs to reconnect
them into a program that
will lead to a High School
Diploma coupled with paid
employment experience
Technology
Consolidations and
Collaborations
Kalamazoo RESA will be
managing and staffing the
AAESA technology
services.
Kalamazoo RESA will be
managing and staffing
Galesburg-Augusta
technology services.
Kalamazoo RESA is
providing IT Engineering
services to Portage,
Mattawan, VBISD, AAESA,
and others.
The Learning Network’s
Efforts to Outcomes
Question & Answer
Contact information
Ron Fuller, Superintendent
([email protected])
Holly Norman, Deputy Superintendent
([email protected])