Public Schools of Petoskey Budget Update and Outlook February 5, 2003

At Risk Original Budget: $262,385 Pro-rated for Added Schools: ($ 10,132) 3.8% Reduction of Original: ($ 9,971) Amount Budgeted: $242,282 Amount Spent YTD: $242,282

State Aid Amount Subject to Proration (Sec. 22b) $4,958,193 Proration Percentage: 3.8% Est. Revenue Loss this Year: $ 188,411

FY 2003-04 Budget

FY 2003-04 Budget State General Fund short $2 Billion State School Aid Fund Short $366 Million State General Fund contributes $198 Million to School Aid Fund. Governor has indicated the need for across the board GF cuts to alleviate the shortfall. Bottom Line: 11% Reduction next year

State Aid FY 2003-04 Amount Subject to Proration (Sec. 22b) $4,958,193 Proration Percentage: 11.0% Est. Revenue Loss: $ 545,401

FY 2003-04 Cost Increases Step Increases alone: $173,884 Retirement Rate to 15%: $286,284 Health Increase 20%: $515,746 Total Cost Increases $975,914 Lost Revenue: $545,401 Next Years Budget Challenge: $1,521,315

How We Spend Our $$