WELCOME TO THE BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF SOUTH MILWAUKEE

THE SCHOOL YEAR  Continued work to improve academic achievement through high standards and rigorous curriculum  $820,561 in budget reductions- the gap between revenues and expenditures  Infrastructure work including:  PLTW tables for the High School Tech Ed Department  Walkway at Luther Elementary  Projection systems at Middle & High School  Security Systems at Blakewood, Lakeview & Luther Elementary Schools  Battery backup connected to generator for Technology Department  Maintenance vehicle for the Operations Department  Basketball hoops for the High School

WHY $820,561 IN REDUCTIONS? (The Gap Between Revenues & Expenditures)  Revenue limits control the total amount of taxes and general state aid a school district can collect  This amount is allowed to increase annually by the CPI, the 2007 increase is 2.8%  State mandates and guidelines often limit the District’s ability to balance the budget

FUTURE BUDGETS  As long as revenue limits are in place and expenses increase at a greater rate than revenues, the district will be facing a budget gap.  We expect to see continued reductions for the school year.

REDUCTION SUMMARY  The $820,561 gap between revenue and expenditures was addressed as follows:  Staff reductions  Copy center lease changes  Budget reductions at all schools and departments that include employee travel, paper, postage, dues/fees and supplies  Revenue increases in special education aid, school fees and open enrollment

School District of South Milwaukee Budget Assumptions February 21, APPROVED DescriptionAdditions/ReductionsTotals Initial Revenue Assumptions: Revenue Cap505,087 Special Education Aid56,004 Total Revenue Increase 561,091 Initial Expenditures Assumptions: Salary/Benefits/Lane Movement/Retiree Health1,339,220 Utilities46,655 District Insurance19,480 District Purchased Services(23,703) Total Expenditure Increase 1,381,652 Total Budget Adjustment (820,561) Proposed Expenditure Reductions:.50 FTE Business Ed Teacher Position28, FTE French Teacher Position43, FTE German Teacher Position29, FTE HS Social Studies Teacher Position65, FTE Guidance Counselor Position69, FTE Elementary Teacher Position65, FTE Speech Teacher - Revise Funding93, FTE Special Ed Teacher to two.50 FTE2,000 Teacher Leadership Structure Changes13,572 MS Library Paraprofessional 7 hrs to 5 hrs6,800 Elementary Classroom Paraprofessionals 10.5 hrs29,500 HS Receptionist Position 4.5 hrs14,200 Copy Center Budget Reduction10,000 Custodial Overtime Reduction25,000 District Level Budget Reduction15,430 School Site Budget Reduction17,429 Total Expenditure Reductions 526,331 Proposed Expenditure Additions: Two 3.5 hr MS Science Paraprofessional20, FTE Teacher Position to Fund 2739,500 Total Expenditure Additions 59,500 Proposed Revenue Additions: Increased School Fees21,800 Open Enrollment Additional Revenue257,000 Total Revenue Additions 278,800 Variance (74,930)

School District of South Milwaukee Budget Assumptions September 5, 2007 Adjustment Reconciliation DescriptionIncrease/(Decrease)Totals February 21, Approved Variance (74,930) Transfer of Service(14,910) Teacher Leadership Structure Changes(2,088) Interest Earnings75,000 Utilities75,810 District Insurance39,750 Associate Principal Change(18,350) SAGE Aid(57,679) Handicap Aid21,646 Total Adjustments 119,179 Adjusted Variance 44,249

THE BIG PICTURE Inc/(Dec) 1. TOTAL NET BUDGET $ 34,008,000 $ 34,902,470 $ 894, THE TOTAL TAX LEVY FUND EXPENDITURE BUDGETS ARE INCREASING 2.05 % $ Inc/(Dec) % Inc/(Dec) GENERAL FUND $ 32,258,180 $ 32,885,707 $ 627, % DEBT SERVICE $ 4,559,224 * $ 4,589,972 $ 30, % COMMUNITY SERVICE $ 808,777 $ 920,250 $ 111, % TOTAL $ 37,626,181 $ 38,395,929 $ 769, % 3. THE TOTAL PROPERTY TAX LEVY IS INCREASING BY 3.14 % $ Inc/(Dec) % Inc/(Dec) GENERAL FUND $ 7,015,557 $ 7,370,551 $ 354, % DEBT SERVICE $ 4,178,019 $ 4,191,582 $ 13, % COMMUNITY SERVICE $ 525,420 $ -0.00% TOTAL $ 11,718,996 $ 12,087,553 $ 368, % * Less refinancing entry as required by DPI

1. Salaries $ 946, Fringe Benefits $420, Purchased Services ($365,046) 4. Supplies and Equipment ($117,957) 5. Debt Retirement $24, District Insurance ($39,465) 7. Other Misc. (Debt, Fees, Etc.) ($32,218) 8. Interfund Transfers $57,185 TOTAL EXPENDITURE INCREASE $894,470 TOTAL Costs $34,008,000 $34,902,470 + $894,470 (Fund 10 & 27) 2.6% 2007 Actual 2008 Proposed Inc/(Dec) BUDGETINCREASE SUMMARY

Mill Rate Comparison ( )

Mill Rate History

Tax Levy History (All Funds)

REVENUE SOURCES State$23,798,042 Property Taxes$7,370,551 Open Enroll/Tuition$1,463,740 Other$809,494 Federal$1,460,643 $34,902,470

Expenses by Object Salaries$20,580,710 Benefits$9,028,007 Purchased Svcs.$2,746,074 Supplies/Equip$1,253,097 Capital Objects$360,598 District Insurance$314,850 Interfund Transfers$338,925 Debt Retirement/Other$280,209 $34,902, %

SCHOOL DISTRICT OF SOUTH MILWAUKEE STAFFING SUMMARY

SUMMARY  Budget reductions made primarily due to revenue limits and declining enrollments  Projected mill rate of $9.57 – remains lower than  Budget will change after 3rd Friday enrollment count, final certification of state aid and property valuation  Rising costs of insurance and utility costs will continue even with controls  Future state legislation uncertain  will likely see another year of reductions

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