Transcript Slide 1

Cleveland Municipal School District
Five Year Financial Forecast
October 2010
The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America.
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Cleveland Municipal School District
Where the Money Comes From
2010-2011
State Property Tax Allocation
8.6%
State
66.4%
Other
2.5%
Local Taxes
22.5%
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Cleveland Municipal School District
Local Taxes – Property Tax Revenue
$175,000,000
24.7
11.2
$150,000,000
4.3
0.2
Revenue
$125,000,000
$100,000,000
$75,000,000
149.3
148.9
147.1
147.4
148.2
148.2
148.2
148.2
2008
2009
2010
2011
2012
2013
2014
2015
$50,000,000
$25,000,000
$0
Fiscal Year
Real Estate
Personal Tangible
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Cleveland Municipal School District
Property Taxes – Current Collection Rate
Current Collection Rate
100.00
99.00
98.00
97.00
96.00
95.00
94.00
93.00
92.00
91.00
90.00
89.00
88.00
87.00
86.00
85.00
84.00
83.00
82.00
81.00
80.00
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
Year
Collection Rate
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Cleveland Municipal School District
Property Tax Allocation – State Hold Harmless
Reimbursements
$60,000,000
$50,000,000
Revenue
$40,000,000
38.6
39.6
32.6
28.9
$30,000,000
25.6
20.3
20.9
16.3
$20,000,000
4.5
4.8
4.5
4.5
4.5
4.5
4.5
4.5
10.9
12.3
12.4
12.4
12.4
12.4
12.4
12.4
$10,000,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
Fiscal Year
Property Tax Rollbacks
SB3 & 287 Reimbursements
HB 66 CAT Reimbursements
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Cleveland Municipal School District
State Foundation Revenue/Education Jobs Fund
$500,000,000
$450,000,000
27.3
17.6
30.3
$400,000,000
Revenue
$350,000,000
$300,000,000
$250,000,000
432.5
433.2
2008
2009
$200,000,000
408.2
406.2
406.2
406.2
406.2
406.2
2010
2011
2012
2013
2014
2015
$150,000,000
$100,000,000
$50,000,000
$0
Fiscal Year
State Foundation
Fiscal Stabilization Fund
Education Stabilization Fund
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Cleveland Municipal School District
Other Revenue
$30,000,000
4.2
$25,000,000
3.5
$20,000,000
8.1
Revenue
4.8
1.6
2.5
$15,000,000
4.0
4.0
1.5
1.8
6.2
3.1
2.9
0.5
2.9
10.6
10.1
9.4
4.0
4.0
4.0
0.5
2.9
0.5
2.9
0.5
2.9
9.7
9.9
9.9
$10,000,000
11.4
11.6
$5,000,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
Fiscal Year
Other
Catastrophic Aid
Interest
Medicaid
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Cleveland Municipal School District
Where the Money Goes
2010-2011
Salaries & Benefits
68.9%
Charter School
Tuition
15.4%
All Other
15.7%
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Cleveland Municipal School District
Salaries
$370,000,000
$360,000,000
Expenditure
$350,000,000
$340,000,000
365.5
360.2
361.6
359.3
357.7
353.9
353.0
$330,000,000
329.2
$320,000,000
$310,000,000
2008
2009
2010
2011
2012
2013
2014
2015
Fiscal Year
Salaries
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Cleveland Municipal School District
Salaries Continued
$30.1 Million Decrease
From FY 10 to FY 11
$24.7 Million Increase
From FY 11 to FY 12
14%
47%
37%
39%
Reduction of Positions due to School Closing
63%
Shifting Positions back to General Fund from Stimulus
Shifting Positions out of General Fund to Utilize Stimulus Money
Concessions/Other
Other
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Cleveland Municipal School District
Fringe Benefits
$160,000,000
$140,000,000
Expenditure
$120,000,000
1.9
9.5
4.5
3.6
7.9
4.2
3.5
6.6
4.3
3.5
6.2
4.3
4.8
6.2
4.0
3.5
6.2
4.4
3.5
6.2
4.4
3.5
6.2
4.5
$100,000,000
$80,000,000
58.1
58.6
60.7
57.7
61.1
51.3
49.5
50.2
49.9
48.8
71.1
65.9
76.8
$60,000,000
$40,000,000
50.8
51.4
51.9
$20,000,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
Fiscal Year
STRS/SERS
Employee Insurance Benefits
Medicare
Workers Compensation
Other
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Cleveland Municipal School District
Supplies, Textbooks, Equipment, and Other
Expenditures
$25,000,000
$20,000,000
Expenditure
6.0
$15,000,000
6.6
5.2
6.6
6.6
6.6
6.6
1.9
1.9
1.9
1.9
12.3
12.3
12.3
12.3
6.6
1.9
1.3
1.5
1.9
$10,000,000
10.6
11.7
12.6
9.5
$5,000,000
$0
2008
2009
2010
2011
2012
2013
2014
2015
Fiscal Year
Supplies and Textbooks
Equipment
Other Expense
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Cleveland Municipal School District
Purchased Services
$225,000,000
$200,000,000
$175,000,000
Expenditure
$150,000,000
$125,000,000
103.5
106.0
108.5
111.0
61.4
67.1
67.1
67.1
67.1
9.3
13.0
9.5
14.7
9.7
15.3
9.9
15.7
10.1
16.1
96.0
98.3
101.0
70.1
63.4
9.2
13.4
9.3
15.1
92.8
$100,000,000
$75,000,000
$50,000,000
$25,000,000
57.4
8.0
14.0
$0
2008
2009
2010
2011
2012
2013
2014
2015
Fiscal Year
Utilities
Student Transportation (contract)
Other Purchased Services
Charter School Tuition
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Cleveland Municipal School District
October 2010 Five Year Forecast
(in millions of dollars)
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
FY
2015
Beginning Cash Balance
$90.6
$82.0
$50.4
$13.0
$25.6
$(51.4)
$(151.4)
$(268.6)
Total Revenues
672.5
668.2
662.7
676.1
625.4
616.4
612.0
607.4
Total Expenses
681.1
699.8
700.1
663.5
702.4
716.4
729.2
742.5
Revenue over Expenses
(8.6)
(31.6)
(37.4)
12.6
(77.0)
(100.0)
(117.2)
(135.1)
Ending Cash Balance
82.0
50.4
13.0
25.6
(51.4)
(151.4)
(268.6)
(403.7)
Encumbrances/Reserves
10.7
7.0
6.5
7.0
7.0
7.0
7.0
7.0
$71.3
$43.4
$6.5
$18.6
$(58.4)
$(158.4)
$(275.6)
$(410.7)
Unencumbered Balance
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Cleveland Municipal School District
October 2010 Five Year Forecast Summary
State Foundation Revenue
1.
Actual for 2009-2010 and projections for 2010-2011 are based on the
new Evidence Based Funding Model (HB 1).
2.
State Foundation estimates include Education Stabilization Funding
allocated under the American Recovery Reinvestment Act of $30.3
million.
3.
Foundation estimates provided by the Ohio Department of Education
project CMSD funding levels at the HB 1 funding cap (.75% gain cap)
Education Jobs (Ed Jobs)
1.
A new federal program to save or create education jobs for the 20102011 and/or 2011-2012 school years. It is estimated that the district will
receive $17.6 million.
Property Taxes
1.
Fiscal Year 2011 property taxes are currently estimated by the
Cuyahoga County Auditor’s Office based on a collection rate of 84.04%.
The forecast through 2015 assumes a collection rate of 84.04%.
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Cleveland Municipal School District
October 2010 Five Year Forecast Summary Continued
Salaries and Benefits
•
Compensation estimates reflect the reduction of 322 positions
consistent with the District’s academic transformation plan.
•
ARRA allocations will be utilized to fund $20 million of District programs
during the 2010-2011 school year. (compensation, salaries and benefits
of classroom teachers)
Charter School Tuition
•
Charter School students will continue to be counted in the District of
residence.
•
Costs over the forecast period are based on historical trends.
Financial Summary
•
An $18.6 million unencumbered balance is forecasted at the end of the
2010 – 2011 school year.
•
A significant deficit of $58.4 million is projected for school year 20112012 due to the loss of ARRA and SFSF funding on 6/30/2011.
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Cleveland Municipal School District
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Definitions
•
ARRA – Education Stabilization Fund – SFSF: Ohio has been allocated $845 million
from the ARRA in State Fiscal Stabilization Fund (SFSF) to help stabilize state and local budgets
in order to minimize and avoid reductions in education and other essential services. Education
SFSF will be distributed to school districts as part of the foundation settlement payments each
month – total foundation support will include both state and federal SFSF funds. The District
received $27.3 million in FY 10 and expect to receive $30.3 million in FY 11.
•
CAT Tax – Commercial Activity Tax: The commercial activity tax (CAT) is an annual tax
imposed on the privilege of doing business in Ohio, measured by gross receipts from business
activities in Ohio. Businesses with Ohio taxable gross receipts of $150,000 or more per calendar
year must register for the CAT, file all applicable returns, and make all corresponding payments.
•
ED Jobs - The Education Jobs Fund was included as part of federal legislation passed on
Aug. 10, 2010. The program provides $10 billion for states to save or create education jobs. Ohio
is estimated to receive $361 million from the program. The district is estimated to receive
$17,550,193. Funds can be used in FY 11 or FY 12.
•
State Hold Harmless Reimbursements: Provision under which the State of Ohio agreed
to reimburse the Cleveland Municipal School District for any loss associated with a change in law.
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Cleveland Municipal School District
Five Year Financial Forecast Questions and Review
October 2010
The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America.
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