Public Schools of Petoskey Budget Update & Outlook May, 2006

Last Time We Met…. Spring 2005 – District was wrestling with budget cuts Many Unknown Variables: State Aid Enrollment Negotiations Health Care cost increases District initiated cuts of approx. $1.5 million

Prior to Budget Cuts, Our Projections Looked Like This: FY 2005-06 Total Revenue $23,090,184 Total Expenditures 25,994,888 Excess Expenditures (2,904,704) Fav. Budget Variance 388,229 Use of Fund Balance (2,516,475) Fund Balance Beginning of Year $2,354,930 End of Year $ (161,545)

After Budget Cuts and Variables Known We Look Like This: FY 2005-06 Total Revenue $24,218,212 Total Expenditures 24,281,500 Excess Expenditures (63,288) Fav. Budget Variance 357,806 Increase in Fund Balance 294,518 Fund Balance Beginning of Year $2,153,922 End of Year $ 2,448,440

What Changed in Revenue from Original Projections? Original Estimated Revenue: $175 per pupil increase ISD Funding for Special Ed Federal funding increases Sales of assets Investment income increase Total Changes in Revenue Expected 2005-06 Revenue $ 23,090,184 541,625 423,000 13,000 105,403 45,000 $ 1,128,028 $ 24,218,212

What Changed in Expenses from Original Projections? Original Estimated Expenditures: Enacted budget cuts Avoided unemployment cost Actual health cost increased 12% vs. original projection of 15% Change in Budget Varience Total Changes in Expenditures Expected 2005-06 Expenditures $ 25,994,888 1,479,646 75,819 127,500 30,423 $ 1,713,388 $ 24,281,500

What Do The Long Range Projections Look Like? Fund Balance At: June 30, 2004 (Actual) June 30, 2005 (Estimated) June 30, 2006 (Estimated) June 30, 2007 (Estimated) June 30, 2008 (Estimated) $3,678,452 $2,143,258 $2,448,440 $2,425,352 $1,926,616