1 / 22

East Lansing Public Schools

East Lansing Public Schools. BUDGET PLANNING and DEVELOPMENT FISCAL YEAR 2007/08 May 21, 2007. Table of Contents. I. Budgetary Challenges II. Budget Assumptions III. “Most Likely” Scenario IV. Proposed Solutions V. Additional Notations VI. Next Steps. I. Budgetary Challenges.

maddox
Télécharger la présentation

East Lansing Public Schools

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. East Lansing Public Schools BUDGET PLANNING and DEVELOPMENT FISCAL YEAR 2007/08 May 21, 2007

  2. Table of Contents I. Budgetary Challenges II. Budget Assumptions III. “Most Likely” Scenario IV. Proposed Solutions V. Additional Notations VI. Next Steps

  3. I. Budgetary Challenges • State Budget/Revenue Outlook • Foundation Allowance • Student Enrollment • MPSERS Contribution Rate • Health Insurance • Fund Balance

  4. I. Budgetary Challenges – State Budget/Revenue Outlook • Total State Budget $41.7B • Two Major Funds: GF $9.2B, SAF $13.1B • January 2007 Consensus Revenue Estimating Conference • 06/07 State revenues significantly below projections • 06/07 GF shortfall estimated at $607 million • 06/07 SAF shortfall estimated at $377 million • SAF shortfall equates to $244 per pupil (ELPS $832,000) • SOS address Governor indicates she will not slash school funding mid-year (i.e. no pro-ration) • Governor and Legislators yet to reach a solution • Pro-ration letter has been issued to Districts • $122 per pupil pro-ration (approx. $416,000 to ELPS)

  5. I. Budgetary Challenges – Foundation Allowance Per Pupil Increases

  6. I. Budgetary Challenges – Declining Enrollment (Blended FTE)

  7. I. Budgetary Challenges – MPSERS Contribution Rate

  8. I. Budgetary Challenges – Health Insurance Annual Premiums

  9. I. Budgetary Challenges – IISD Districts Fund Balance % at June 30, 2006

  10. II. Budget Assumptions Major Revenue Assumptions: • Foundation Allowance – no increase; est at 06/07 level of $8,517 • Blended Enrollment – to remain constant at 3,410 • County Sp Ed – allocation to decrease 9% Major Expenditure Assumptions: • Employee Salaries - % increase from 1.75% to 1.50%; some groups remain unsettled • Moving Eligible Employees up on step and longevity • MPSERS contribution rate – blended rate of 16.84% • Health Insurance Premiums – 9.9% increase • Utilities – no increase

  11. III. “Most Likely” Scenario Projected 07/08 Budget Deficit: • Revenue decreases of $280,000 • Expenditures: • Salary and Benefit increases of $1,037,000 • Supplies/PS/Capital Outlay increases of $87,000 • 06/07 Structural Deficit $801,000 • Total Projected 07/08 Deficit of $2,205,000

  12. IV. Proposed Solutions 1. Impact of Voluntary Severance Plan (VSP) and modified staffing 2. Reduction of 22.0 full time equivalent (fte) (teaching & administrative staff) due to retirements, resignations, leaves 3. Significant thought and input from administrative group results in replacing 13.9 fte 4. 8.1 fte reduced as follows: • 3.0 fte @ Elementary Level (K-6) • .2 fte @ Middle School Level (7-8) • 2.4 @ High School Level (9-12) • 2.5 in Special Education (K-12)

  13. IV. Proposed Solutions (cont.) 5. Also, a reduction of 3.9 fte from the paraprofessional staff is proposed 6. Reductions in fte = $921,500 7. Additional savings from VSP/retirements = $214,000 8. Total “Staffing Reductions” from 06-07 to 07-08 = $1,135,500 9. Additional proposals impacting deficit (“Additional Impact”): • Reduce HS security = $8,000 • Reduce legal fees = $27,000 • 1 year delay on purchase of new busses = $130,000 • “Culture of accountability” leads to spending at 99% level = $320,000

  14. IV. Proposed Solutions (cont.) 10. Total “Staffing Reductions” + “Additional Impact” = $1,620,500 11. “Pending Issues:” • Non-core subject area service to parochial schools • Modifications to food service • Modifications to Title I 12. Potential favorable impact of “Pending Issues:” $254,000 13. If “Staffing Reductions” + “Additional Impact,” then deficit is approximately $584,500 leading to an anticipated fund balance of 8.1 % in June, ‘08

  15. IV. Proposed Solutions (cont.) 14. If “Staffing Reductions” + “Additional Impact” + “Pending Issues,” then deficit is approximately $330,500 leading to an anticipated fund balance of 9.0 % in June, ’08 . 15. A foundation allowance increase of $171 per student in 07-08 = $584,500 16. A foundation allowance increase of $97 per student in 07-08 = $330,500

  16. V. Additional Notations 1. A 07-08 general fund adoption based on the proposed solutions yields, among other things: • No program reductions, with the possible exception of minor changes in HS and MS non-core subject course offerings • Supply budgets remain the same as 06-07 • Modest increase in curriculum/textbook budget for 07-08 • New computers would be ordered and installed in K-4 schools • There would no need to layoff any member of the teaching staff prior to 07-08 due to financial considerations

  17. V. Additional Notations (cont.) • Up to 4 paraprofessionals could have reduced schedules or be notified that “there exists the possibility their services are not planned for in 07-08” • Could consider bus purchase and/or other issues in November, after enrollment and foundation allowance information is in hand. 2. Note: We are very concerned about the 08-09 fiscal year.

  18. Additional Notations (cont.) 3. Strategic Planning initiatives will need to begin in the early fall. Financial goals are prepared as follows: • Identify and develop collaborative partnerships (City of EL, State of MI, MSU, IISD, LEA) to improve efficient use of funds. • Develop and implement a standardized internal financial form for program evaluation (cost analysis). • Research and implement programs (health care, food services, purchase cards) to control costs.

  19. V. Additional Notations (cont.) • Gather RFPs of contracted services to ensure competitive quality and cost-effective standards are regularly evaluated. • Establish a culture where budget planning is considered a 12 month process (multi-year projections). • Explore zero based budgeting. • Communicate financial realities effectively to the East Lansing Community.

  20. V. Additional Notations (cont.) • Consider funding opportunities such as sinking fund, bond issues, enhancement millages, technology bond. • Evaluate and enhance opportunities for grants, donations, contributions and fees. • Study prospects related to commercialization (advertising). • Study opportunities for community education, recreation, child care expansion and enrichment programs.

  21. V. Additional Notations (cont.) • Undertake cost/benefit analysis of Schools of Choice program. • Monitor communication with key elected officials and civic groups. • Educate legislators regarding issues impacting public education.

  22. VI. Next Steps • 2007-08 Revised Budget Calendar • May 21st BOE meeting – proposed budget recommendations • June 3rd Notice of Public Hearing (Truth in Taxation) • June 11th BOE meeting – public hearing on proposed 2007-08 budget • June 25th BOE meeting – adopt 2007-08 proposed budget • By law BOE must adopt budget by June 30

More Related