2017 General Operating Referendum Fund Update May, 2018

2017 General Fund Revenue Projected by DLGF: $4,988,126 Based on Enrollment from June, Sept 2017 and Changes in Complexity Grant (12 Page Formula) 2017 General Fund Shortfall at Year’s End: 2017 Capital Projects Fund: Used 74.33% ***Factor in Reduction in Enrollment: $6,100 per student (Graduated 45/K Entrance 40= 4 {$24,400}) ***Factor in Assessed Valuation Drop Referendum Expenses: $1,900,000($1,500,000 + $400,000 Roll Over) Salary and Benefits from General Fund $1,512,396 Utilities $59,307.93 Twin Rivers and Special Education $94,895.58 Technology Related Expenses $118,110.75 Project (Machining Program/Ag Center) $31,793 Departmental Purchases (Ag./IT/ScienceK-12) $46,881.36 Classroom Supplies $17,977 Year End Transfer to General Fund (Nov./Dec.) $968,506 2017 Year End Total in General Fund $389,797 Ran the General Fund through the Referendum Fund in November, December, and May for all General Fund expenditures. ($1,452,759) $48,000 short of Umbaugh Prediction Referendum Fund Current Balance: Summer Budgeting Needs includes $250,000 for projects/fixes; the Capital Projects Fund should begin the re-building phase of the 7 year period.

Current Fund Sheet as of April 30, 2018: General Fund Average monthly deficit $86,718 x 12 for Projected Annual Need Anticipated Deficit $1,040,616 DLGF 1782 Notice for 2018: Ref. Fund $1,511,265 General Fund $5,100,000 Actual Total Revenue $6,611,265 2017 Expenses $6,782,967 Related Financial Information SB308: The reduction of Assessed Valuation of Farmland Property 25% Reduction in AV in Farmland Property by 2021 WRV is 81% Farmland—Major Hit to School Budget and Ability for Revenue Proposed Loss of Revenue: $850,000 HB1009: Changes the Management of Funds for Education in Budget Year 2019 Education Fund=General Fund Operations Fund=CPF Fund+Transportation Fund+Bus Replacement Fund

What does all this mean? To operate without the income of the Referendum… $827,000 in cuts (with the present enrollment) $850,000 in lost revenue b/c of Farmland AV changes (by 2021) Total cuts: $1,452,759 deficit *Continue to build the Rainy Day. *There will be difficult decisions to be made…just as there were prior to the passing of the May, 2014 Referendum. *Personnel *Facilities *Programs *Offer QUALITY programs that give our students the best opportunity for success. *Successful marketing. (Summer, 2018 Mailing of Referendum Update)