Preliminary Budget Analysis October 2, 2011 Sean B. Fox, Carrie L. McDermott, and Lisa M. Omeis

Expenditures:  Budget Increase  $4.6 million  $1.4 million in salaries  $3.2 million in benefits (pension, health insurance)  Represents a 5.38% (Levy not Rate)  No increase in any other portion of the budget  Property tax cap applies to the levy, not the rate which is governed by assessments and equalization rates.

Revenue Projections:  Revenue Projections: Best Case Scenario  Loss of Federal Jobs Stimulus money $1,566,651  Anticipated 4% increase of State Aid $1,460,653  Resulting in a reduction in State Aid by $105,999

Implications of a Property Tax Cap  60% majority override by voters if the budget exceeds the cap (district has not had a 60% majority in recent memory)  Over the course of four years, the district will not be able to meet its educational or fiduciary obligations as we run through our fund balance and reserves if the cap did not include other cost savings measures  Disconnect among the public’s understanding of a tax cap and its impact on public services

Implications, Exclusions, and Concerns of the Tax Cap  Implications of the Property Tax Cap – 2%  Maximum allowable increase under tax cap $1.7 M  Total required for projected expenditures $4.6 M  Total difference (ex: cuts) $2.9 M  Exclusions to the Property Tax Cap?  Anything above 2% of pension costs is excluded  Concerns of Tax Cap  50.1% Voter approval for a 2% budget cap  60.1% Voter approval for a budget in excess of 2% cap  2 defeated budget votes is equivalent to a o% budget increase

Visual Ramifications 2% Tax cap budget Defeated budget with 0% increase Rollover budget: $4,565,894 Tax cap: -$1,736,195 Total cuts needed: $2,935,698 No increases allowed: Total cuts needed: $4,565,894 Loss of programs Full day kindergarten Intramurals Clubs Athletics Music & Art Large class sizes Loss of Electives After school programs Redesigned intervention programs

Budget:  Administration will present a budget with a 4% tax levy increase and a 2% tax levy increase  Decision?  Present a budget at the cap  Present a palatable budget to the community for an override  Approach for identifying areas for reduction  Prioritized list  What does the community value?  Possible survey

Proposed Program Reductions and Eliminations  Printing  Security  Grounds Maintenance  Postage/Printing  Para Professional/Aids  Monitors  Clubs and Intermurals  Census  Orion Program  In-View Test Supplies Total Proposed Savings: $3.1 million  Athletic Uniforms  5% Reduction in office and instructional supplies  Interscholastic supplies  2% Reduction in Health Insurance  Eliminate ten teaching positions  4 th Grade Instrumental  ½ Kindergarten  1 Art  1 Physical Education  1 Music Education  1 Library Science  2 Orion Educators  4 Elementary Educators