GF 2009/10 Budget Development Presented to Board of Education May 11, 2009

1. GF 2009/10 Budget Development Presented to Board of Education May 11, 2009

2. Presentation Outline • Significant reductions since 2002 • PPS administrative costs are some of lowest in State • The “easier” reductions have already been taken. • State financial situation clearly indicates difficult times ahead • Future reductions are very difficult since they impact staff and students

3. 2002/03 $500,000 Director of El Education AMB Asst. Principal Two custodial floaters (from 4) Summer custodial assistance Reorganized central services Eliminated capital outlay Middle school technology support reorganized Hardware technician position Reduced professional develop by 4% 2003/04 $1,100,000 Employee participation in health insurance costs Instructional materials reduction Energy conservation program fully implemented EFE/EFA Reductions Outsourced sub teacher process Two custodial floaters (to zero) Outsourced Driver Education Reduced central services FTE 1.0 Reduced PEP teacher FTE 1.0 Payroll/Accounting Clerk 1.0 Central Office Secretary 1.0 Outsourced Facilities Secretary Reduced Reading program support by .50 FTE Capital outlay, supply budgets Significant Cuts Started Seven Years Ago …

4. 2004/05 $785,000 Employee participation in health insurance costs Add’l administrative reductions Reduce secretarial position 1.0 Reduce two teacher positions via attrition. Technology Dept reductions 1.0 Outsourced Curious Kids staff Secondary purchased services, supply reductions including athletics. Reductions to parapro’s and secretarial subs. Special education staffing reductions Field Trips 2005–2008 $1,394,000 Two maintenance positions cut Two maint. positions outsourced Custodial supervisor outsourced Six full time 2nd/3rd shift custodial positions outsourced by attrition Sub teacher service provider Athletic coaches to service provider Direct purchase of electricity FTE reductions at secondary Testing supplies & software Business/HR position cut Admin secretary position cut Strategic planning FTE cut Casualty insurance deductible Food Group indirect cost charge Board salaries and meeting meals Copier lease extension … and Continued After Enhancement Millage

5. PPS Administrative CostsRank in LOWEST 10% Source: 2007/08 MDE Bulletin 1014

6. Kalamazoo County DistrictsPPS Has Lowest Administrative Costs Source: 2007/08 MDE Bulletin 1014

7. MEAP Comparator DistrictsOnly 1 District with Lower Administrative Costs Source: 2007/08 MDE Bulletin 1014

8. Kalamazoo Gazette – Tuesday, May 5, 2009

10. Portage Public Schools2009/10 Budget Scenarios GF Revenues 77,615,000 78,234,000 GF Expenditures 79,453,00079,048,000 Deficit (1,838,000) (814,000) More Conservative More Aggressive Presented to Board on March 9, 2009

11. P.P.S. Options For Budget CrisisFund Balance Could Absorb $940,000

12. PPS Options For Budget CrisisRevenue Enhancement • Very small potential in this area • Pay to participate in all extra curriculars • Estimate of $150,000 • Time consuming implementation • Various user fees • Estimate of $40,000

13. PPS Options For Budget CrisisExpense Reductions • Enlarge required walk zones 100,000 • Custodial services 200,000 • Reduce building supply budgets 85,000 • Eliminate middle school athletics 205,000 • Reduce Professional Development 104,000 • Reduce instructional support services 1,130,000

14. Impact of ARRA Stimulus Funds • Three Significant Allocations • State Fiscal Stabilization Fund • IDEA Part B • Title I • Conceptually for Three Year Period • Current Fiscal Year (08/09) • Next Fiscal Year (09/10) • Fiscal Year 10/11 Let’s Look at Each Allocation over the three year period

15. ARRA State Fiscal Stabilization • Current Fiscal Year 2008/09 • School Aid Fund deficit projection $420M or $259/pupil • Questions exist on how funds can be spent • When will funds be available? Impact to cash flow? • Next Fiscal Year 2009/10 • SAF deficit projection $956M or $555/pupil • Likely reduction in categoricals • Deficits of these two years exceeds $1.3B funding available • Higher education is suppose to also receive this funding • Fiscal Year 2010/11 • At the “Cliff” • MPSER’s retirement rate up due to stock market losses

16. Stimulus Funding - IDEA Part B • Based on KRESA meeting today • Current Fiscal Year 2008/09 • No impact • Next Fiscal Year 2009/10 • Total eligible $622,255 • 50% option ($311,000) to supplant • Balance of ($311,000) for new expenses • Fiscal Year 2010/11 • Total eligible $622,255 • 50% option ($311,000) to supplant • Balance of ($311,000) for new expenses

17. ARRA – Title I Funding • Current Fiscal Year 2008/09 • No impact • Next Fiscal Year 2009/10 • Total eligible $423,000 • We are assuming that approximately $290,000 of current expenditures will qualify for this funding • Fiscal Year 2010/11 • Total eligible $423,000 • We are assuming that approximately $290,000 of current expenditures will qualify for this funding

18. PPS 09/10 Budget Calendar • May 15 State Revenue Conference • May 18 Update Board on State Budget • June 1 Preliminary budget discussed • June 15 Community Input, Required Public Hearing, Adoption