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October 7, 2014 7:00 p.m. Corunna High School Cafeteria 7/21/2015 1 • • • • 7/21/2015 Parents Corunna School Employees Community Members Board Members 2 Represent our community Listen to the information that will be provided Ask questions Provide input as to whether or not our district needs to ask the voters for additional revenue 7/21/2015 3 We have had little increase in revenue for the past several years. Expenses continue to climb. We have continued to postpone major purchases, but there is a growing concern that future needs must be considered. We are asking you for some direction as to what the district needs to do. 7/21/2015 4 Status Quo Wait for a private donor Recommend planned use of fund equity Increase revenue 7/21/2015 5 To prepare an unprecedented number of students for college and/or careers, regardless of demographic factors when possible, make reductions that stay away from the classroom Maintain our current classroom size limits 7/21/2015 6 (Averages) Kindergarten-21 Pre-First-15 First-24 Second-25 Third-25 Fourth-23 Fifth-25 7/21/2015 Sixth-26 Seventh-26 Eighth-27 Ninth-27 Tenth-27 Eleventh-27 Twelth-27 7 Age of our buildings Creating a budget Enrollment Foundation Grant Retirement Ratio Fund Equity Balance Sheet Borrowing Reductions made from 2008 to present 7/21/2015 8 Building Year built Bond Renovations Shiawassee Street Building 1908 ?? Nellie Reed 1950 1964 (additions) 1976 (2 additional rooms) Elsa Meyer 1950 1964 (additions) Louise Peacock 1950 1964 (additions) Middle School 1951 1957 (courtyard/gym/locker rooms) 1964 (Cafeteria/classrooms/library) 1971 (classrooms) 2001 (complete renovation) Pool Building 1964 2001 (pool and classrooms) High School 1976 7/21/2015 9 Building Needs Miscellaneous Shiawassee Street Upper level closed by fire marshal Building components (plumbing, electrical, etc.) Building components (windows, doors, etc.) Handicapped access, codes, etc. Looking to Sell NR Portables Life expectancy: Approximately 20 years* Previously owned (2-5 years old); purchased by CPS in 2004 LP Portables Life expectancy: Approximately 20 years* Previously owned (2-5 years old); purchased by CPS in 2004 *http://listserv.ed.gov/archives/edinfo/archived/msg00240.html 7/21/2015 10 Building Year purchased/leased Administration office 2003 West Campus (Stechschulte Bldg.) 2012 “Moffit House” 2004 Bus stalls ???? Bus “mechanic garage” 1994 (built) 7/21/2015 Bond Renovations 11 Assumptions What will the foundation grant be? What will the student count be? What will the employees’ salary increase be? What will the insurance rate be? What will the retirement rate be? 7/21/2015 12 2500 2460.65 2422.42 2409.19 2400 2300 2439.31 2385.87 2297.24 Enrollment 2254.43 2200 2148.18 2101.23 2100 2000 1956… 1900 1800 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 *Used State Aid Membership from August State Aid Status Report 7/21/2015 13 SCHOOL YEAR 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 7/21/2015 PER PUPIL FOUNDATION 7,204 7,316 7,316 7,316 6,846 6,966 7,076 7,251 14 2014-2015 FOUNDATION ALLOWANCE PLUS $125 EQUITY PAYMENT 7/21/2015 2012-13 TOTAL REVENUE PER PUPIL BYRON 7,251 8,043 DURAND 7,251 8,216 LAINGSBURG 7,251 8,035 MORRICE 7,251 8,524 NEW LOTHROP 7,251 7,601 PERRY 7,251 8,153 CORUNNA 7,251 8,165 OWOSSO 7,251 8,310 SOURCE: SENATE FISCAL AGENCY and 2012-13 BULLETIN 1014 TOTAL REVENUE INCLUDES FEDERAL REVENUE 15 District Name 2013-14 FOUNDATION ALLOWANCE Alcona Community Schools 7,026 Goodrich Area Schools 7,026 North Branch Area Schools 7,026 CORUNNA PUBLIC SCHOOLS 7,026 Chelsea School District 7,237 Montrose Community Schools 7,292 Grand Blanc Community Schools 7,336 Beecher Community School District 7,465 Birmingham Public Schools 11,804 Bloomfield Hills Schools 11,884 SOURCE MICHIGAN DEPARTMENT OF EDUCATION 2013-14 FOUNDATION ALLOWANCE 7/21/2015 16 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 7/21/2015 MPSERS Contribution Rate including UAAL beginning 2013-14 16.72% 16.54% 16.94% 20.66% 24.46% 25.36% 29.35% 34.64% 17 Total MPSERS Contribution General Fund Total Increase in Only Dollars 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Estimated 2014-15 1,728,802 1,724,497 1,792,507 2,171,686 2,461,364 2,636,214 2,785,028 3,234,896 -4,306 68,011 379,179 289,678 174,850 148,814 449,868 Beginning in 2012-13 the State has provided additional funds to help offset the increased cost. 7/21/2015 18 2013 2014 LOCAL REVENUE 1,625,460 1,636,146 STATE REVENUE 14,922,837 15,035,132 FEDERAL REVENUE 376,583 476,887 OTHER SOURCES 827,188 834,894 TOTAL REVENUE 17,752,068 17,983,059 Other sources for 2013-14 include Act 18 Special Education Millage ($172,260), Vocational Education Added Cost ($52,764), Medicaid Fee for Service Reimbursement ($23,185), Special Education Aide Reimbursement ($72,530), GSRP program reimbursement ($376,000), Reimbursement for insurance claims ($8,375), Refunds of prior year expenditures for insurance ($42,093), Sales of obsolete equipment – busses ($3,750), Indirect revenue from food service ($70,600) 7/21/2015 19 INSTRUCTION SUPPORT SERVICES ADMINISTRATION OPERATIONS COMMUNITY SERVICES OTHER USES TOTAL EXPENDITURES 7/21/2015 June 30, 2013 June 30, 2014 11,898,163 11,207,050 1,095,554 1,093,406 1,914,193 1,816,749 3,229,541 3,519,159 29,598 25,694 353,748 185,182 18,520,798 17,847,239 20 REVENUE TO EXPENSE COMPARISON 20,500,000 20,000,000 19,500,000 19,000,000 18,500,000 18,000,000 17,500,000 17,000,000 16,500,000 16,000,000 2007-2008 2008-2009 2009-2010 REVENUE 7/21/2015 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 BUDGET EXPENSE 21 4,000,000 3,576,505 3,500,000 3,250,881 3,000,000 2,879,639 2,500,000 2,369,087 2,000,000 1,500,000 1,736,177 1,925,260 1,600,357 1,000,000 892,912 500,000 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 BUDGET 22 NEW LOTHROP CORUNNA BYRON MORRICE OWOSSO LAINGSBURG DURAND PERRY 7/21/2015 1,174,281 1,600,357 733,509 360,931 1,842,507 576,207 223,597 -1,693,082 16.40% 8.40% 7.60% 6.70% 6.50% 6.00% 1.60% -14.20% 23 NET CASH AS OF JUNE JUNE JUNE JUNE JUNE JUNE JUNE 7/21/2015 30, 30, 30, 30, 30, 30, 30, 2008 2009 2010 2011 2012 2013 2014 3,015,367 5,013,829 2,996,331 3,051,881 1,628,646 1,235,285 992,169 24 AUGUST 2007 AUGUST 2008 AUGUST 2009 AUGUST 2010 AUGUST 2011 AUGUST 2012 AUGUST 2013 AUGUST 2014 7/21/2015 2,800,000 3,500,000 2,100,000 1,940,000 1,929,000 2,238,000 2,238,000 2,760,000 25 Operational costs include gas, electric, water, sewer and garbage . It does not include regular maintenance items such as administration, secretarial, cleaning, painting, etc. Building Total Shiawassee Street Building $35,111.15 Nellie Reed $44,092.62 Elsa Meyer $60,022.96 Louise Peacock $58,290.64 Middle School (& pool building) $193,189.64 High School $223,734.00 Administration office $8,324.33 West Campus (Stechschulte Building) $17,093.52 (lease cost included) “Moffit House” $4,747.79 (excludes rent – currently no tenant) (Will be reduced) 7/21/2015 (Will be reduced) 26 Reduction Eliminated or postponed bus purchases Froze base wages at 2011-12 level for 2012-13 and 2013-14 Reduced custodial staff (no MS or HS 3rd shift; 3 hour 2nd shift reduction @ elementary) Reduced one bus run Contracted technology through RESD Furlough days for office managers Furlough days for supervisors Administrator co-pay for health 2011-12 (our choice) All employee co-pay for health starting in 2012-13 (state mandated) 7/21/2015 27 Reduction Non-replacement of staff retirees Non-replacement of bus driver due to resignation Adjusted local & Saturday bus runs for high school athletics Delayed capital outlay projects Redesigned our school improvement plan and consolidated grant application to maximize the use of grant funds that provide student services Eliminated office/support staff at middle school & high school Changed insurance plans for all employees Health insurance only for Class I level cooks Personal days reduced for Class III cooks 7/21/2015 28 Reduction Reduced supply budgets and expenditures Reduced teaching staff by 26 (from 138 in 2008 to 110 currently) Eliminated two central office positions Reduced all paraprofessionals’ hours by ½ hour daily Eliminated Adult Education Eliminated Drivers’ Education 7/21/2015 29 • Instruction • Update and repair of facilities • Safety • Security • Energy Efficiency 7/21/2015 30 7/21/2015 31 • Assess needs (ongoing) • Determine cost • Prioritize • Determine if Corunna Public Schools’ Citizens Committee supports an extension of the current bond • If yes, then determine next step • If no, process ends 7/21/2015 32 • Tuesday, October 7, 2014 • Tuesday, October 21, 2014 • Tuesday, November 4, 2014 7/21/2015 33 • November 10, 11, 12, 13 Possible Walkthrough Dates • Tuesday, November 18 Cost of items will be presentedPrioritize the items listed • Friday, December 19 Meeting with Treasury if decision is made to move forward 7/21/2015 34 Status Quo Wait for a private donor Recommend planned use of fund equity Increase revenue 7/21/2015 35 Contact Dave Moore (989) 743-6338 7/21/2015 36 □ YES-We Need To Have Another Meeting And Proceed. □ NO-This Is Not The Right Time. A Millage/Bond Would Not Be Supported by our Community. 7/21/2015 37