School Finance 101

1. School Finance 101 Building the 10 year plan Madison plains - October 2013

2. Tonight’s Agenda • Review of Budget Tools • Recap of FY13 • Review of FY14 Planned Budget • The Five Year Forecast • The 10 Year Plan • Scenarios

3. Review of Budget Tools • Appropriations • The appropriations are the Boards authorization for the Superintendent acting as the purchasing agent to spend district funds. • The appropriations also act as the control over spending. The Treasurer/CFO cannot approve a purchase request if it will exceed the approved appropriation. • The Board may approve the Permanent Appropriation Resolution anytime prior to September 30 of each fiscal year.

4. Review of Budget Tools • Spending plan • The Spending plan is not a required budget tool per ORC • The Spending plan is a monitoring tool provided to the Board of Ed. to allow for easy review of the monthly status of General fund activity versus the budget.

5. Review of Budget Tools • Spending plan

6. Review of Budget Tools • Five Year Forecast • The Five Year Forecast is required to be prepared and submitted to the Ohio Department of Education by October 31st of each fiscal year. A revised forecast may be submitted anytime but is required to be submitted at least once by May 31st of each fiscal year. • The forecast only reflects the forecasted activity of the district General fund, Poverty Based Assistance fund and any debt service funds. • Our forecast includes the General fund, PBA and the Budget Reserve.

7. Review of Budget Tools • Five Year Forecast • The Forecast has 2 parts: 1) the 5 years of financial activity depicted in a spreadsheet, 2) the assumptions that drive the projections. • The forecast is used by the ODE, MP Board of Ed., Administration, unions and public to analyze and decipher the revenues and planned expenditures of the district. It is arguably the most important financial document we prepare. (political and public relations)

8. Review of Budget Tools • 10 Year Financial Plan • The 10 Year Financial Plan is not a required document. • The 10 Year Financial Plan is unique to MP. • The Plan allows for long range planning. • The Plan extends the new five year forecast another 5 years. • The Plan goals are as follows: • Transparent financial planning • Academics are the Focus of the district, not $’s • To provide a stable financial foundation.

9. Recap of FY13

10. Recap of FY13

11. Recap of FY13

12. Recap of FY13

13. Recap of FY13

14. Review of FY14

15. Review of FY14

16. The Five Year Forecast

17. The Five Year Forecast • KEY ASSUMPTIONS • Revenues • Tax advance in June 2014 will be $700,000 less than advance in June 2103 • Renewal of Operating levy will occur in calendar 2014 • Unrestricted Aid (State Foundation) will remain the same for 5 years • Enrollment will remain steady after 2014 • State Funding Guarantee will remain throughout forecast

18. The Five Year Forecast • KEY ASSUMPTIONS • Expenditures – Personal Services (Salaries & Wages)

19. The Five Year Forecast • KEY ASSUMPTIONS • Expenditures – Personal Services (Salaries & Wages) • Step increases are expected to be 1.85% per year • Degree attainment increases are expected to be .40% per year

20. The Five Year Forecast • KEY ASSUMPTIONS • Expenditures – Benefits • Medical/Drug Premium will increase as follows:

21. The Five Year Forecast • KEY ASSUMPTIONS • Expenditures – Benefits • Retirement Contribution Increase due to increase in salary: 2014 = $45,000 • Expenditures – Supplies and Materials • Increase in Curriculum Supplies: 2014 = $57,000

22. The Five Year Forecast • KEY ASSUMPTIONS • Expenditures – Principal / HB264 Loan • HB264 Loan paid off in 2017

23. The 10 Year Financial Plan DETAILS • Duration = 10 years • Reduce Budget $8.4 million • Pass PI Replacement Levy - 2013 • Pass Em. Op Levy in Place of Expiring Op Levy - 2014 • Consider Em. Op Levy in 2016

24. 10 Year Financial Plan –Timeline Before the Plan

25. 10 Year Financial Plan – Proposed Timeline May 2012

26. Current (May 2013) 10 Year Financial plan Timeline

27. The 10 Year Financial Plan-Comparison

28. Levy Timelines - 2012

29. Revised Levy timelines

30. Scenarios • Is the Board satisfied with the Current 5 Year Forecast • Is the Board satisfied with the Current 10 Year Projection? • Is the Board satisfied with the Current 10 Year Plan? • If the answer to any of the above is NO then we need to go into executive session.