The State of the State of the School District 2018~2019

Falcon Pride & Tradition Ensuring Well Rounded Students Community Support PLC Professional Learning Communities Small class sizes Additional mental health resources RTI Response to Intervention KIDS Hope K-5 mentoring program Reading enrichment Extra curricular opportunities Alternative learning environment Partnership with CMU Vocational opportunities Highly qualified staff Academic support during Falcon Time Dual credit courses Flexible scheduling Buddy packs Variety of course options Clothes Closet Increased technology access Pre-School PBIS Positive Behavior Interventions & Support

Funding Sources 2018-2019 Source % $ Local 52% $3,198,878 State 34% $2,093,308 Federal 8% $489,263 County 6% $330,228 Total Revenue $6,111,677

Proposed Expenditures 2018-2019 Object % $ Salaries 54% $3,343,186 Benefits 15% $959,782 Sub-total payroll $4,302,968 Purchased Services 14% $876,915 Supplies 7% $463,739 Capital Projects 4% $225,779 Debt 6% $387,993 Total Expenditures $6,257,394

Deficit Spending Spending more than the revenue received which means dipping into the fund balances. Projected Expenses $6,257,394 Projected Revenue $6,111,677 Deficit $145,717

Why are we deficit spending? Declining enrollment. Increasing expenses. Revenue shortfalls. Underfunded mandatory programs. Required programs that are not fully funded by the state or federal government include: SPED, ECSE, Transportation, Technology, P.A.T. and tuition to other districts. The chart below shows how much the district had to spend to cover the cost of mandatory programs that were not fully funded. 2017-2018 State Revenue Received 2017-2018 State Revenue Expected Revenue Shortfall $1,753,559 $1,878,531 $124,972 2014 2015 2016 2017 2018 $868,878 $853,527 $945,891 $1,007,848 $869,646

% of Operating Fund Balance Year % Ending Balance 2018-2019 *11.54 *$654,936 2017-2018 11.36 $669,252 2016-2017 14.03 $845,766 2015-2016 18.46 $1,082,701 2014-2015 21.82 $1,255,237 * Projected

Tax Anticipatory Note (TAN) A TAN is a short term loan a school district can obtain to pay its bills until local revenue comes in and the TAN can be paid off with interest. Historically, when the % of fund balance drops below 15%, there is not enough cash flow to last through the year and the need for a TAN is triggered. Year % TANs Needed 2019-2020 1 or 2 2018-2019 11.54 2 2017-2018 11.35 1 2016-2017 14.03 2015-2016 18.46 2014-2015 21.82

Bonds vs Levies A district runs a bond issue when needing to make capital improvements. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Bond History… April 2018 - $1,000,000 April 2013 - $3,500,000 April 2012 - $2,085,000 refinanced and combined 2008 & 2005 bond issues Interest and principal payments are made twice a year for 15 – 30 years, which make it affordable for districts to complete capital projects and maintain their facilities. A district runs a tax levy to fund operating expenses. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Levy History… $0.32 increase Passed 2018 $0.70 increase Failed by 26 It has been 20 years since the district placed a levy increase on the ballot. Program requirements and operating costs have increased.

Cost Comparison ~ Then vs Now 1999 2018 Teacher Base Salary $21,000 $31,500 *Price of a new bus $43,908 $78,162 **Average price of a Gallon of Gas $1,280 $2.873 ***Annual Cost of Electricity $93,507 $113,191 September Cost of Electricity ‘01/’18 $6,218 $14,073 Operating Levy $3.46 $3.50 *Average cost of buses purchased in 1998 & 1999 vs cost of buses purchased in 2015 & 2017 **From Bureau of Labor Statistics – US City average ***Records from 2005-2006 and 2017-2018

A Levy Increase of $0.72 Would generate $393,582. One or two TANS will still be needed in the fall of 2019 since funds will not be received until January 2020. Cuts will still need to be made for the 2019-2020 school year.

If levy does not pass, what then… More substantial cuts will be made causing… larger class sizes a reduction in or elimination of programming few to no field trips or activity trips further reduction in positions

Tax Levy Campaign Committee Chairpersons * Cindy Dudenhoffer & Brandy Asbury Secretary * Kim Oeth Treasurer * Emily Bange Publicity * Sarah Jacobs, Kim Oeth Fundraising * Kelly Elliott & Brian Spielbauer Absentee Voters * Angie Rogers Community Outreach * Brandy Asbury, Angie Rogers