Paw Paw Public Schools Budget Proposal 2016/17 2015/16 In Review 2016/17 Projection General Fund School Service Fund Cafeteria Cedar Street Center Debt Information

Financial Planning Policy 2201 10% Fund Balance Budget calendar Conservative For planning

2015/16 General Fund Budget Revenue Expenditures January Budget $19,949,000 Change, increase 0 Total Revenue 15/16 $19,949,000 Expenditures January Budget $20,000,000 Change, reduction (237,000) Total Expenditures 15/16 $19,763,000 Expected use of fund balance January Budgeted Use ( 51,000) Change, reduction in use 237,000 Addition to fund balance 15/16 186,000

2015/16 General Fund Budget Expenditures Eliminate large copy machine contract $ (29,000) Reduce transportation fuel due to prices (50,000) Vacancy related (unfilled positions, (78,000) subs for part of year) Snow plow savings (30,000) Heating savings (50,000) Change in Expenditures, decrease $ (237,000)

2015/16 General Fund Summary Decrease in revenue $ 0 Add decrease in expenditure 237,000 Net decrease in deficit 237,000 Projected deficit as of Jan. 2016 ( 51,000) Excess Rev. for 15/16 as of May 2016 186,000 Projected Fund Balance & Assigned $ 4,555,000 6/30/16 or 23% of Exp. Projected Unassigned Fund Balance $ 3,547,000 6/30/16 or 18% of Exp.

Key Assumptions General Fund Budget 2015/16 2016/17 Millage Rate 18.00 mills 18.00 mills Foundation Allow $7,391 $7,511 Blended Count 10S/90F 15F/85F Fall Enrollment (K-12 and Alt) 2,210 2,188 Retirement Contribution Rates 25.79% 24.95%

2016/17 General Fund Budget Millage Available to levy: 2015/16 18.0000 Mills Less Headlee for 2015/16 (0.0000 ) Headlee Voted millage 18.0000 Maximum Levy 18.0000 Mills Amount to levy in December 2016 18.0000 Mills Millage rate expires 12/31/2021.

Enrollment (K-12 and Alt.) October 2012 2,273 October 2013 2,254 October 2014 2,240 October 2015 2,212 October 2016 (est.) 2,183

Significant Changes Increase technology support and training as we add the 1:1 pilot work in 2016/17. Return heat, snow plowing, and transportation fuel to historic levels rather than 15/16 warm winter levels. Add back special education teachers to meet educational needs of students. Cuts in 2015/16 were too deep. Insurance benefits and MPSERS payments to new caps/expected rates. Cost staff at expected steps for 2016/17 (Contracts to be negotiated)

MPSERS Employers Contribution Rate History MPSERS Change in rate Change as % of contribution amount from PY PY rate 2010/11 20.66% 3.72% 21.96% 2011/12 24.46% 3.80% 18.39% 2012/13 27.37% 2.91% 11.90% (was 27.37% until Feb.) 2012/13 24.32% (3.05%) (11.14%) 2013/14 24.79% .47% 1.93% 2014/15 25.79% 1.0% 4.03% 2015/16 25.79% 0% 0% 2016/17 (est.) 24.94% (.85%) (3.29%)

2016/17 Net Budget Changes from Jan. 2016 Deficit per January presentation $ (51,000) Changes: Increase revenue for students and PPFG 98,000 Grant changes in revenue 45,000 Increase in technology support costs (100,000) Total compensation increases (attrition, teacher staff shifts, special education add, grant funding changes, contractual changes, benefit rate changes, etc.) (178,000) Other budget cuts 35,000 Deficit for 2016/2017 operations $(151,000)

2016/17 General Fund Beginning Unassigned & Assigned Fund Bal. $4,555,000 2016/17 Net deficit $ (151,000) Assigned & Unassigned Fund Balance @ 6/30/17 $4,404,000 Percent of Expenditures 21.7% Beginning Unassigned Fund Balance $3,547,000 2016/17 Operating deficit $ (135,000) Unassigned Fund Balance @ 6/30/17 $3,411,000 Percent of Expenditures 16.8%

16/17 Total School Services Preliminary Budget 15/16 16/17 Revenue and Incoming Transfers 1,044,000 1,044,000 Expenditures (1,041,000) (1,041,000) Excess 3,000 3,000 Fund Balance @ 6/30 $ 76,000 $ 90,000 % of expenditures 8.3% 8.6%

16/17 Cafeteria School Services Preliminary Budget 15/16 16/17 Revenue and Incoming Transfers 990,000 990,000 Expenditures (985,000) (985,000) Excess 5,000 5,000 Fund Balance @ 6/30 $ 76,000 $ 81,000 % of expenditures 7.7% 8.2%

16/17 Child Care Services Preliminary Budget 15/16 16/17 Revenue and Incoming Transfers $ 54,000 $ 54,000 Expenditures (56,000) (56,000) Deficit $ (2,000) $ (2,000) Fund Balance @ 6/30 $ 10,000 $ 8,000 % of expenditures 18.4% 14.4%

Debt Retirement Funds All debt funds (includes refinanced) 8.20 mills Without SBLP (per bond application) 13.71 mills Principal and interest due 2016/17 $6.0 million Bonded debt due 2016/17 & beyond $49.2 million Owe SBLP 2.2 million Total Debt $51.4 million Projected date to pay off SBLP 2033 Millage rate 2034 2.01 mills Mandatory repayment due May 1, 2037