Sample School District Budget Projections

CTBA – State Deficit Problems

State of the State Illinois is estimated to be $13B in debt Federal Funds via ARRA replaced $922M of state funds per year for the last two years ISBE presented a flat budget for FY 2011 In order to fund this flat budget Illinois needs to generate $1B in additional revenue Current political climate may not allow for additional revenue generation

Governor Quinn’s Budget Proposal $2B across the board cut in state spending $1.3B from K-16 schools – 17% decrease GSA Foundation Level estimate $5,669 – Cannot fall below 2006 level of $5,500 due to ARRA maintenance of effort

Foundation Level History

Quinn Budget GSA cut by $613M – Foundation Level at $5,669 – Flat Grant Cut to $0 – GSA Hold Harmless -$16M (-100%) MCATS cut $402M – Early Childhood -$54M (-16%) – Extraordinary Sp Ed -$66M (-20%) – Reading Improvement -$36M ( -53%) – Regular Transportation -$65M (-19%) – Textbook Loans -$40M (-100%) – Billingual Education -$20M (-30%)

Illinois Payments to Districts Illinois failed to make two payments for Mandated Categorical Grants for FY These were made in summer 2009 So far this year the state has made only one MCAT payment It is anybody’s guess if they will make another one or more State is behind 120 days in paying its bills

State of the District Put in here what you think of your district’s budget in three bullet points or less Example – Overall revenue is down 17% – Recommend holding line on all spending and RIF at least three certified and three non-certified positions – Will deficit spend for FY 2011 and fund balances will decrease by 50%

Start slides here with your variables and predictions

Expenditures Salaries 3% Fringe 5% Purchased Services and Supplies & Materials at 1% Capital Outlay at $0

Other Highlights Reduction of three teachers for FY 2011 No new buses purchased Student fees increased by 100% Donations increased by 100% – Education Foundation

Enrollment

Could stop here!

Three Scenarios Scenario 1 – $5,669 – No Cuts – Freeze salaries – Deficit spend by $800,000 – Fund Balance from $1.0M to $200,000 Scenario 2 – $5,669 – Cut 3 teachers, 3 SSP, 1 administrator – Freeze salaries – Deficit by $500,000 – Fund Balance from $1.0M to $500,000

Scenario 3 – $5,500 – Cut 3 teachers, 3 SSP, 1 administrator – Freeze salaries – Deficit spend by $1.2M thus need to borrow $200,000 and spend all reserves

More Assumptions for the Budget

EAV

Actual 1999Actual 2000Actual 2001Actual 2002Actual 2003Actual 2004 Percentage Increase from Prior Year Residential274,846,412288,748,099304,782,660320,941,371341,444,137361,149, % Farm21,191,72721,272,58920,055,19619,051,39017,724,38216,887, % Commercial31,140,83538,007,05342,351,52942,591,47547,615,73751,529, % Industrial707, ,996715,829723, % Mineral222,633215, , % Railroad934,022826,060873,667912,247952,923890, % Total329,042,654349,776,143368,985,394384,417,921408,666, ,394, % New Property13,171,39115,273,52411,678,14610,889,85015,201,42019,336,173 EAV by Category

Estimates Used for FY Education Fund Projections Local Funding – Local EAV Tax Caps? (CPI) – TIF or Enterprise Zones? – Local revenue in lieu of taxes CPPR trends? – Tuition (General, Summer School, Vocational, Adult) – Earnings on Investments Is fund balance going up or down? What is happening to interest rates? – Food Sales – Athletic admissions, fees, textbooks – Levies (Local Taxes) General Tort – What is impact of lawsuits? Leasing Special Education Social Security/Medicare Detail on this slide various factors you used to make both revenue and expense projections.

State Funding General State Aid – Property Wealth Per Student Inverse relationship to State Aid – Foundation level THIS YEAR THIS NUMBER IS CRITICAL – ADA enrollment – # of low income students – Categorical Funding Special Education (Private Facility, Extraordinary, Personnel, Orphanage, Summer School) Vocational Education State Free Lunch Driver Education Early Childhood Block Reading Improvement School Safety & Education Block Grant

Federal Funding Title Programs – Title I – Title IV Safe and Drug Free – Title II Teacher Quality National School Lunch Program School Breakfast Program Federal Special Education Medicaid Matching – Administrator Outreach – Fee For Service Provider

Education Fund Expenses Expenditure variables – Estimate of salary and fringe benefit increases To get an accurate accounting of salary you need to keep separate spreadsheets with detail – Estimate of supply, purchased services and capital outlay expenses – Any increase or decrease in staff? – How many teachers are retiring? – Any major expenditures such as computers, smartboards, etc… Grants – Improvement of Instruction – Title I – Early Childhood Block – Reading Improvement – School Safety & Education Block Grant Other – Superintendent salary cost cap provisions – Payments to Other Gov’t Units Special Education tuition Vocational tuition – Other tuitions – Contingency

ESTIMATING CERTIFIED STAFF SALARIES IS VERY IMPORTANT KEEP A SECOND SPREADSHEET AND UPDATE OFTEN

O&M Fund Revenue – Local taxes EAV Lease Tort CPPR Investment income Renting of facilities – Are you going to deposit any GSA into O&M Fund? Expenses – Salaries & Fringe Benefits – PS – utilities – Any capital projects? – Contingency

Transportation Fund Revenue Local taxes EAV Lease Tort Investment income Renting of buses Are you going to deposit any GSA into Transportation Fund? Expenses Do you own vs. lease? Salaries & Fringe Benefits How many new buses? Contingency