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Oakland Schools Proposed Budgets

Overview of Fiscal Year 2012-2013. Oakland Schools Proposed Budgets. Property Tax Forecast. Property Tax decline from base year – FY 2008 Fiscal Year 2008-09 -.0075% - $ - Fiscal Year 2009-10 -3.8% - $ (8.2)M Fiscal Year 2010-11 -11.9% - $ (32.9)M

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Oakland Schools Proposed Budgets

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  1. Overview of Fiscal Year 2012-2013 Oakland Schools Proposed Budgets

  2. Property Tax Forecast Property Tax decline from base year – FY 2008 Fiscal Year 2008-09 -.0075% - $ - Fiscal Year 2009-10 -3.8% - $ (8.2)M Fiscal Year 2010-11 -11.9% - $ (32.9)M Fiscal Year 2011-12 -7.5% - $ (46.7)M Fiscal Year 2012-13 -3.0% - $ (51.8)M Fiscal Year 2013-14 0% - $ - Fiscal Year 2014-15 0% - $ - Fiscal Year 2015-16 2% - $ - Fiscal Year 2016-17 1% - $ - Annual property tax collection has declined from FY 2008 to FY 2014 by 23.9% Accumulative loss from FY 2008 to FY 2014 is $191.6 million FY 2008 base year tax levy was $216.9 million FY 2014 expected tax levy is $165.08 million

  3. Fund Balance Target Setting Protocol • The proposed protocol for the development of each fund’s year ending fund balance target will be predicated upon: • 5 percent of the operating programs contained in said fund • Known economic liabilities or designated reserves of a specific fund • The fund balance target setting protocol recognizes the following: • The State of Michigan’s economic environment • The financial condition of the LEAs • Maximize district support thru program support, subsidies and distributions Oakland Schools Board of Education approved the Protocol on 6/15/2009 Practice for the Special Education Fund is to distribute to LEAs the amount in excess of the target unreserved fund balance.

  4. Oakland Schools Total Revenue Summary FY 2013 $270.7 Million Dollars in millions

  5. Revenue Assumptions • Property tax revenue decrease of 3% • Expected interest earnings are $895K total for all funds combined (FY 2007 $7.7 million) • Increased local district utilization of the student application & NextGen Exchange student programs. Stable revenue from GenNet online software, Rubicon West online software, Discovery/Learn 360 online software. • General Education Section 81 revenue stable • Special Education State funding stable • Career Focused Ed State funding stable • No Personal Property Tax loss forecasted in FY13

  6. Operating Revenue per Countywide per pupil count (195,000) • Revenue in the three major ISD operating funds since FY 08 has plunged by $51.8 Million, 23.9% decrease (Excluding Grants, Medicaid and Production Printing & Graphics) • Loss of $290 per pupil on a county wide basis • Includes PA-18 distribution reduction of $171 per pupil – all pupils, General Ed.

  7. Operating Revenue Countywide per pupil basis

  8. Countywide pupil count

  9. Oakland Schools Fiscal Year 2013 Total Expenditures Budget Type $272.79 Million P.S./Supplies Grants Personnel Transfers to LEAs Dollars in millions

  10. Notable Programs • Continuation of the Oakland Opportunity Academy - Alternative High School program serves six districts w/ enrollment of 150 FTE. Tuition projected at $6,700 per pupil • Continuation of Widening Advancement for Youths - online program for 11th and 12th graders w/ enrollment of 240 FTE. Tuition projected at $6,500 per pupil • New: Virtual Learning Academy – Oakland - online program for K-8 students projecting enrollment of 240 FTE but could be significantly higher. Tuition projected to be $6,724 per pupil • NextGen continues. High School Study Abroad program for 12th grade Chinese students with enrollment of 15 • Work on the Common Core Curriculum progresses. Over a three year period (FY 2012-FY 2014) Oakland Schools will allocate $500K towards this County-wide initiative. Nearly half of this funding will come from a grant from MAISA

  11. CPDI Fund • The CPDI Fund (Collaborative Programs Development Initiative) has an estimated balance of $3.9 million. • There will be a subsidy from this fund of $190K to help start up the new Virtual Learning Academy-Oakland Program for 2012-13. This amount is to be repaid from VLA-O to the CPDI Fund via future tuition revenue collections • Prior initiatives partially subsidized by the CPDI Fund include: • International Academy • Refugees Support Programs in qualifying districts • W-A-Y Program (Widening Advancement for Youth)

  12. Summary Staffing Report

  13. # of # of Programs & Services Departments Employees Difference Employees 2012-13 2008-09 Career Focused Education (Campus) 191.00 157.50 (33.50) Career Focused Education (Non-Campus) 23.00 13.09 (9.91) Child Nutrition 1.00 0.33 (0.67) Early Childhood 12.00 11.50 (0.50) Government & Community Services 10.90 11.05 0.15 Learning Services 37.50 30.54 (6.96) Research,Evaluation & Assessment 8.00 0.00 (8.00) School Quality 10.50 14.30 3.80 Special Education 100.00 71.21 (28.79) Technology Services 55.00 50.50 (4.50) World Language Initiative 1.00 0.00 (1.00) Sub total: 449.90 360.02 (89.88) Total Across All Departments: 526.70 422.13 (104.57) # of # of Other Programs & Services Employees Difference Employees 2012-13 2008-09 External Cost Recovery Positions 2.00 1.43 (0.57) Homeless / Wrap Around (Grant Funded) 11.10 18.00 6.90 Job Link (Grant Funded) 32.00 37.33 5.33 Oakland Opportunity Academy 0.00 9.52 9.52 Virtual Learning Program 0.00 7.60 7.60 WAY Program 0.00 3.70 3.70 Summary Staffing Report

  14. Salary & Benefits Comparison by Fund(in $ millions)

  15. Staffing Changes • Two new consultant positions in Special Education • (1) Alternative/Augmentative Communication • (1) Visually Impaired • The new Virtual Learning Academy – Oakland, an online K-8 program requires at least 7 new positions, and possibly more depending on enrollment that is projected at 240 FTE

  16. Personnel Costs • Wage freeze in effect for third consecutive year, subject to collective bargaining • Furlough days (five for 12-month staff and three for 10-month staff) eliminated after two years in effect. Cost increase of $700K – All Funds • Retirement rate of 27.37% will increase costs by $1.08 million. This is an effective rate cost increase of 11.9%. • Health Insurance “Hard Cap” will save $1 million. Plans offered may be affected by collective bargaining

  17. Oakland Schools Financial Impact of Benefit Plan Changes

  18. Budgetary Factors • Michigan Tax Tribunal Expense (MTT) • Doubled reserve in 2011-12 (from 1.5% to 3%) • Set reserve at 2.5% for 2012-13 which equates to $3.2 million in expense • PA 18 Special Education Funding • $4 million reduction in 2012-13 equates to -3.6% or an average loss per pupil in Oakland County of -$22 per pupil

  19. Allocation of Costs General Allocation • 50% GE, 25% SE, 25% CFE Activity Based Cost Allocation–FTE based • 23% GE, 25% SE, 52% CFE Abraham & Gaffney – square footage based • 50% GE, 26% SE, 24% CFE Cost Based Allocation – Transportation • 73% GE, 25% SE, 2% CFE Reference Enterprise Wide Summary Document

  20. General Education Fund Summary • Total Revenue: $17.4 Million • Property tax – $9.8M (56% of total revenue) • Other local revenues – $3.5M • State sources revenues – $3.5M • Other financing source revenues – $.6M • Total Expenditures: $17.8 Million • General Administration – $1.5M • Finance and Operations – $6.8M • Instructional Services – $8.8M • Plant and fixed charges, transfers to LEAs – $.7M

  21. General Fund Overview Dollars in millions

  22. Fiscal Year 2013 Fund Balance END OF YEAR: Unassigned: $ 2,209,700 Assigned: Prepaid, Inventory and Deposits $ 30,700 Total Budgeted Ending Fund Balance $ 2,240,400 _______________________________________________________ 5% of GEF operating expenditures ($17.8M): $ 0.9M State Aid exposure 50% of Section 81 $ 1.7M Fund Balance Protocol Target: $ 2.6 M

  23. Fiscal Year 2013 District Debt Amount Average Annual Payment GEF Debt Principal: $ 4,030,000 $ 765,000 CFEF Debt Principal: $42,875,000 $ 3,100,000 QSCB Debt Principal: $13,412,500$ 1,111,000 Total OS Bonded Debt: $60,317,500 $ 4,976,000 NOTE: Debt Service for the Administration Building Project Bond (2003) and QSCB issue is pre-funded in Debt Service Fund 310 & 313 and Debt Service for the campus renovations bond (2007) is pre-funded in Debt Service Fund 312 through FY 2020

  24. General Fund Five-Year Forecast in millions

  25. ISD Budget Resolution Revised School Code 380.624 - Overview • Not later than May 1 of each year, the ISD shall submit proposed budget for next fiscal year to the board of each constituent district for review • Not later than June 1 of each year, the board of each constituent district shall review the proposed ISD budget, shall adopt a board resolution expressing its support for or disapproval of the proposed budget • Mail copy of resolution indicating support or disapproval (with rationale) to the Oakland Schools Board of Education

  26. General Education Fund • Questions & Comments

  27. Special Education Fund Summary • Total Revenue: $128.2 Million • Property tax – $124.7M (97% of total revenue) • Other local revenues – $.8M • State sources revenues – $2.5M • Other Financing Sources - $.2M • Total Expenditures: $128.2 Million • Program supervision and direction – $2.3M • Program operations – $7.1M • Plant and fixed charges – $8M • LEA transfers and program subsidies – $110.8M

  28. Special Education Fund Overview *FY 2004 contains “one time” operating adjustment for prior years **Dollars in millions

  29. Fiscal Year 2013 Special Education Program Support and Subsidies PA-18 Base Distribution $ 108,560,000 Extraordinary Contingency $ 100,000 Section 24 subsidy/other $ 100,000 Group Homes $ 1,200,000 Havenwick $ 150,000 SEI Regional Day Treatment $ 450,000 Total $ 110,560,600 PA-18 Base Distribution declined $(4.1M) from FY 2012

  30. Oakland Schools Special EducationExpenditure Budget Comparison Dollars in millions

  31. PA-18 Base Distribution FY 2003-2017 Trend Line: Red After Property Tax Decline: Blue Dollars in millions

  32. Fiscal Year 2013 Special Education Fund Balance END OF YEAR: Restricted: $ 886,900 Restricted: Future SE Center Facility Renovations $ 726,300 Total Budgeted Ending Fund Balance $ 1,613,200 _________________________________________________________________ 5% of SEF operating expenditures ($17.7 m): $ .886M State Aid exposure (sec 51a, 51a.8) $ 0M Fund Balance Protocol Target: $ 0.886 Million

  33. Special Education Five-Year Forecastin millions

  34. Special Education Fund • Questions & Comments

  35. Career Focused Education Fund Summary • Total Revenue: $31.6 Million • Property tax – $30.5 M (96% of total revenue) • Other local revenues – $0.5 M • State sources revenues – $0.4 M • Other financing source revenues – $0.2 M • Total Expenditures: $32.2 Million • Campus and other program administration – $20.8 M • LEA transfers and direct program operations – $4.9 M • Facility and technology maintenance/renovations – $0.08 M • Plant and fixed charges – $6.4 M

  36. Career Focused Education Fund Overview Dollars in millions

  37. Fiscal Year 2013 Career Focused Education Fund Balance END OF YEAR: Restricted: $ 4,156,700 Non-Spendable: Prepaid, Inventory and Deposits $ 69,500 Total Budgeted Ending Fund Balance $ 4,226,200 _______________________________________________________ 5% of CFEF operating expenditures ($27.5): $ 1.6 M State Aid exposure (sec 61a.1): $ .4 M Fund Balance Protocol Target $ 2.0 Million

  38. Career Focused Education Five-Year Forecastin millions

  39. Career Focused Education Fund • Questions & Comments

  40. Proposed Grants and Funds Projects Summary • Total dollar award value of all current grants and funded projects: $74 M • New Awards $60.5M • Carry Over $13.5M • Direct transfer to districts: $62.8M • ISD administered grants and projects: $11.2M (Includes JobLink $7.1M)

  41. Other Funds • Cooperative Activities Funds: • 271 – Oakland Network for Education (ONE) • 272 - Alternative Education High School (OOA) • 273 – Medicaid • 274 – Widening Advancement for Youth (W-A-Y) • 275 – Virtual Learning Academy – Oakland (VLA-O) • Debt Service Funds: • 310 – Administrative Building Bond 2003: Ending 2018 • 312 – CFE Campus Renovations Bond: Ending 2036 • 313/314 – Qualified School Construction Bond: Ending 2027

  42. Other Funds • Capital Projects Funds: • 404 - CFE Technical Campus Renovations Phase II Project • 406 – Admin Bldg Renovation & Maintenance • 408 – Qualified School Construction Bond • 409 – JobLink facility • Production Print Fund 710 – Enterprise Fund • Risk Related Activity Fund 810 – Internal Service Fund (unemployment pre-funded)

  43. Questions & Comments

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