Presented April 23 rd & 24 th, 2009 for stakeholders in the Swartz Creek Community School District for stakeholders in the Swartz Creek Community School District SWARTZ CREEK COMMUNITY SCHOOLS FINANCIAL FORUM

  Inform Board Members, Staff, & Community PURPOSE   Budget for both near and long term goals   Encourage communication between Stakeholders of the Swartz Creek Community School District

Michigan School Districts’ Financial Challenges   Enrollment Issues   Growing Health Care Costs   State Retirement Rate Fluctuations   Federal Stimulus Mandates   State and national economy concerns

PROBLEM During the past 6 years only 1 school year ( ) did the state aid percentage increase exceed the inflationary percentage increase. exceed the inflationary percentage increase.

DATA COMPARISON Fiscal Year Foundation Allowance Increase +$140 (2%) Retirement Rate % Change12.99 Healthcare Costs % increase $16 (-.24%) $76 (1.13%) $175(2.6%) $210(3.05%) $119 (1.7%) $112 Projected (1.5%) Projected

  Exert control over our spending   Improve communication & collaboration with stakeholders   Increase revenue   Attract new students   Reduce expenditures What can we do to weather the storm?

EXPENDITURES How we allocate resources Expenditure Assumptions for : Diesel fuel costs rising from $226,763 to $260,000 Health insurance estimated 10% increase Retirement rate projected 16.56% of gross wages from 16.72% Utilities estimated 10% increase 2% pay increase for most employee groups

Audited figures for REVENUE $34,007,675 EXPENDITURES $33,529,348 REVENUE OVER/(UNDER) EXPENDITURES $ 478, FUND EQUITY $5,864,168 June 30, 2007 Balance $6,342, of expenditures of expenditures

Audited figures for REVENUE $34,240,115 EXPENDITURES $34,521,560 REVENUE OVER/(UNDER) EXPENDITURES $ (281,445) 2007 FUND EQUITY $6,342,495 June 30, 2008 Balance $6,061, % of expenditures 17.56% of expenditures

Due From State & Other Governmental Units - General Fund as of June 30,

DISTRICT REVENUE Fiscal Year TOTAL: $34,240,114

Working Definitions Revenues: Local Sources: Property Taxes, Tax Penalties, Adult Ed. Tuition/Fees, Bank Interest, Rentals Leases, United Way, Gifts, Community Ed. Funds, etc. Local Sources: Property Taxes, Tax Penalties, Adult Ed. Tuition/Fees, Bank Interest, Rentals Leases, United Way, Gifts, Community Ed. Funds, etc. State Sources: State Aid, Special Ed., Transportation, Drivers Ed., Vocational Ed., Gifted/Talented, At-Risk, Adult Ed., etc. State Sources: State Aid, Special Ed., Transportation, Drivers Ed., Vocational Ed., Gifted/Talented, At-Risk, Adult Ed., etc. Federal Sources: IDEA (Sp. Ed.), Grants, Title 1 & 2, Indian Ed., JTPA, Eisenhower, etc. Federal Sources: IDEA (Sp. Ed.), Grants, Title 1 & 2, Indian Ed., JTPA, Eisenhower, etc. Other Sources: Act 18 (County Sp. Ed.), Sale of Assets, CDC & Café Reimbursement, etc. Other Sources: Act 18 (County Sp. Ed.), Sale of Assets, CDC & Café Reimbursement, etc.

DISTRICT OPERATING EXPENDITURES Fiscal Year TOTAL: $34,521,560

Working Definitions: Expenditures INSTRUCTION: Basic Program: Insurances/Benefits (Health, Dental, Vision, LTD, Life, Retirement, FICA, Unemployment, Workers Comp.) Classroom Teacher Salaries, Aides, Substitutes, Teaching/Office Supply & Materials, Repairs, Travel, Capital Outlay (Furniture & Equipment), etc. Basic Program: Insurances/Benefits (Health, Dental, Vision, LTD, Life, Retirement, FICA, Unemployment, Workers Comp.) Classroom Teacher Salaries, Aides, Substitutes, Teaching/Office Supply & Materials, Repairs, Travel, Capital Outlay (Furniture & Equipment), etc. Added Needs: Insurances/Benefits, Special Ed. Teachers (IDEA & Regular), Aides, At-Risk, Substitutes, Title 1 & 2, Vocational Ed., Indian Ed., Supplies/Materials, etc. Added Needs: Insurances/Benefits, Special Ed. Teachers (IDEA & Regular), Aides, At-Risk, Substitutes, Title 1 & 2, Vocational Ed., Indian Ed., Supplies/Materials, etc. SUPPORT SERVICES: Pupil: Insurances/Benefits, Counselors, Psychologists, Speech Teachers, Substitutes, Special Programs, Personnel, Graduation, etc. Pupil: Insurances/Benefits, Counselors, Psychologists, Speech Teachers, Substitutes, Special Programs, Personnel, Graduation, etc. Instruct. Staff: Insurances/Benefits, School Improvement, Textbooks, Librarians, Library Supply/Material, Assistant Superintendent for Instruction, Special Ed. Director, Athletic Director, Secretaries, Substitutes, System capitol-Outlay, Eisenhower, etc. Instruct. Staff: Insurances/Benefits, School Improvement, Textbooks, Librarians, Library Supply/Material, Assistant Superintendent for Instruction, Special Ed. Director, Athletic Director, Secretaries, Substitutes, System capitol-Outlay, Eisenhower, etc. General Admin: Insurances/Benefits, Board Salaries, Legal Services, Audit Services, Publications, Elections, Copy Materials, Dues/Fees, Superintendent, Supt. Secretary, etc. General Admin: Insurances/Benefits, Board Salaries, Legal Services, Audit Services, Publications, Elections, Copy Materials, Dues/Fees, Superintendent, Supt. Secretary, etc. School Admin: Insurances/Benefits, Principals/Assistants, Building Secretaries, Travel, Dues/Fees, etc. School Admin: Insurances/Benefits, Principals/Assistants, Building Secretaries, Travel, Dues/Fees, etc. Business: Insurances/Benefits, Business Secretaries, Data Processing, Banking Charges, Postage, System Insurances, Tax Processing, etc. Business: Insurances/Benefits, Business Secretaries, Data Processing, Banking Charges, Postage, System Insurances, Tax Processing, etc. Oper. & Maint.: Insurances/Benefits, Food & Mail Drivers, Custodial, Skilled Trades, Overtime, Substitutes, Utilities, Building Supply/Materials, etc. Oper. & Maint.: Insurances/Benefits, Food & Mail Drivers, Custodial, Skilled Trades, Overtime, Substitutes, Utilities, Building Supply/Materials, etc. Pupil Trans: Insurances/Benefits, Supervisor (1/2), Bus Drivers, Bus Trips, Shuttles, Secretaries, Substitutes, Repair, Mechanics, Supply/Material, etc. Pupil Trans: Insurances/Benefits, Supervisor (1/2), Bus Drivers, Bus Trips, Shuttles, Secretaries, Substitutes, Repair, Mechanics, Supply/Material, etc. Central: Insurances/Benefits, Assistant Super. Personnel, Switchboard Operator, Tech. Coordinator, Warehouse, etc. Central: Insurances/Benefits, Assistant Super. Personnel, Switchboard Operator, Tech. Coordinator, Warehouse, etc. Other: Insurances/Benefits, Schedule B Activities (Coaches/Sponsors), etc. Other: Insurances/Benefits, Schedule B Activities (Coaches/Sponsors), etc. Pupil Activities: Indian Ed., Insurances/benefits, Workers, Secretaries, Supply/Material, etc. Pupil Activities: Indian Ed., Insurances/benefits, Workers, Secretaries, Supply/Material, etc. Payments To Other Schools: GISD Telecommunications Classes, etc. Payments To Other Schools: GISD Telecommunications Classes, etc. Transfers: General Fund Transfers to Community Education, Athletics and CDC Transfers: General Fund Transfers to Community Education, Athletics and CDC

Projected REVENUE $34,212,341 EXPENDITURES $35,607,800 REVENUE OVER/(UNDER) EXPENDITURES $(-1,395,459) 2008 FUND EQUITY $6,061,050 June 30, 2009 Projected Balance $4,665, % of expenditures

General Fund Expenditures

Dilemma for and beyond Revenues are not expected to increase for the next two years Revenues are not expected to increase for the next two years Expenditures are expected to rise more than 3% Expenditures are expected to rise more than 3% Is this an anomaly or long term trend? Is this an anomaly or long term trend? Federal Stimulus Funds – Can they save us? Federal Stimulus Funds – Can they save us?

Blended Student Enrollment

Projected REVENUE $34,554,464 EXPENDITURES $36,607,034 REVENUE OVER/(UNDER) EXPENDITURES $(-2,121,570) Projected 2009 FUND EQUITY $4,665,591 June 30, 2010 $2,544,021 Projected Balance 6.94% of expenditures

Projected REVENUE $34,902,029 EXPENDITURES $37,705,480 REVENUE OVER/(UNDER) EXPENDITURES $(-2,803,451) Projected 2010 FUND EQUITY $2,444,021 June 30, 2011 $-359,430 Projected Balance -1% of expenditures -1% of expenditures

Size and Scope of the Budget  When all funds are added together the district is a one of the largest businesses in the area with revenues and expenditures exceeding $100,000 each and every day….365 days per year.  We are also one of the largest employers in the area with over 500 employees that service our most precious commodity.…our children.  Investment in our children is also in an investment in our community and the future of Michigan. It is important that all stakeholders understand the importance and the responsibility of this investment.

Challenges and Possibilities  We know that the near-term financial future is not looking good.  However, we as a district can meet this challenge…head on.  Unlike Wall Street and other private businesses or industries we can determine our own future by not shying away from creating financial choices.  However we need to act soon as we are all in this together.

What We Have Done Thus Far  Reductions of support and custodial staff  Reductions of Core Curriculum Staff  Energy Conservation-lighting, heating, busing & software management  Mid-year supplies budget cuts  Elimination of Drivers’ Education  Use of Fund Equity  Quarterly Board budget reviews

Future Plans  Administrative staff reductions, other staff reductions  Textbook budget reductions  Reduction of subs for staff development  Control of insurance and fringe benefits  Reduce scheduled bus and technology purchases  Privatize Administrative Services  Reduce building supply budgets  Athletic fees  Increase class sizes and new class configurations

Thank you for your time and for caring about the finances of your school district, my school district… OUR SCHOOL DISTRICT !!! Questions & Comments