Tuba City Fund Balance Analysis & Expenditure Review

1. Tuba City Fund Balance Analysis & Expenditure Review April 30, 2012

2. Current Budget and Practices

3. Fund Balance and Expense Trendwithout State Cash Flow Coverage

4. 5 Year Fund Balance Summary

5. Assumptions included in previous charts • All revenue received is expended • Impact Aid funded at 85% • No State Aid Reductions • No enrollment decline • No additional expenses added • No additional capital expenses added ($2M continued) • No reductions in expenses • Successful Bond election in 2014 • First sale of Bond proceeds and payment in 2015

6. FY 2012 Fund Balance: $17,000,000

7. FY 2013 Fund Balance: $9,014,576

8. Fund Balance Change 2008-09 through 2011-12 • Increases in 2011-12 expenses include: • Additional teachers • Salary increases • Additional maintenance support • Teacherage capital improvements • Includes capital and contingency expenses

9. 2011-12 M&O/impact Aid Budget by Function M&O Fund Impact Aid Fund M&O Total: $10,563,000 Impact Aid Total: $11,200,000

10. 2011-12 Combined Budget by Function Grand Total: $21,763,000

11. 2011-12 Combined Budget by Function GOAL: 50% Instruction Grand Total: $21,763,000

12. 2011-12 M&O/impact Aid Budget by Object M&O Fund Impact Aid Fund M&O Total: $10,563,000 Impact Aid Total: $11,200,000

13. 2011-12 Combined M&O and Impact Aid Budget by Object Grand Total: $21,763,000

14. Reduction Strategy based on Function

15. Comparison District Analysis

16. Comparison Districts – % of Dollars in the Classroom Auditor General Classroom Spending Report, 2012

17. Comparison Districts Auditor General Classroom Spending Report, 2012

18. Comparison Districts Auditor General Classroom Spending Report, 2012

19. Plant Operations and Administration

20. Tuba City School Data

21. Student Enrollment History 23.7% Decline since 2006 Arizona Department of Education ADMS 46-1 Reports

22. Student Enrollment Growth Goal • Goal A – Grow Student Enrollment • Goal B – Stabilize/Level Enrollment • Goal C – Status Quo

23. Historical Review of Enrollment, Expenses and Staffing – 2007-08 through 2011-2012

24. Budget Process and Future Planning

25. Accountability Budget Process Approaches • Incremental, Zero-Based, and Program Budgeting • Incremental: compare previous year budget as a basis for incremental amounts to be added or reduced to the new year’s budget • Zero-Based: each line item of the budget is built from zero and must be approved rather than only approving changes to the line items • Program: review individual programs or functional activities independently of the overall budget to determine its fiscal needs

26. Budget Goals • Return on Investment – ROI • Marketing Schools • Student Achievement • Teacher/Staff Retention • Long Term vs. Short Term Funding Needs • State Reductions • Federal Reductions • Building Needs • Avoiding the Funding Cliff • Maintaining Fund Balance

27. Budget Accountability • Student Achievement • Increase student achievement • Resources (financial, human and capital) • Responsible budgeting • Effectiveness and Efficiencies • Improve productivity

28. 5 Year Fund Balance Summary – Maintaining $4M Fund Balance, Bond Contingency

29. Fund Balance and Expense Trendwith State Cash Flow Coverage

30. 2012-13 Budget Variables • Cost Increases • Compensation Increases • State Retirement • Fuel Cost • Enrollment Decline • Federal Funding Decline • Cost Decreases • District Health Insurance • Integrate Alternative School with High School • Consolidate Primary, ENIS, JHS into K-8 • One principal over Gap and Cameron

31. 2012-13 Compensation increases

32. Future Impact Aid Spending Policy • M&O Transfer – determined by State • Debt Service Payment • Override authorization (conceptual) • Reserves for future Bond – TBD • Current year expenses – TBD

33. Future Impact Aid Spending Policy