Five Year Financial Forecast May Cleveland Municipal School District

Five Year Forecast - Contents 2 Major Assumptions General Fund Revenues General Fund Expenditures Five Year Forecast Summary

Cleveland Municipal School District 3 Major Assumptions

4 Revenue: Property Tax Collection Rate - The forecast assumes the collection rate will remain at same level as 2014 or 87%. A 1% change in the collection rate represents $2.6 million. Assessed valuation will increase 2.2% to $5.1 billion in calendar year Cuyahoga County will complete it’s triennial update in All property values will be updated for the 2016 collection year. No change is anticipated. On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning January The forecast assumes the levy will expire December 31, State Funding – The district is assuming the House’s proposal for state aid. Under the House’s proposal the district would move from being on the guarantee in FY 15 to the formula in FY The biennial budget most likely will not be determined till the end of June. Enrollment – The forecast assumes a 2% annual decline in enrollment.

Major Assumptions continued 5 Expenditures : Staffing assumptions: Forecast assumes movement from differentiated compensation based on projections. Forecast assumes all union agreements as currently defined - 1% increase in FY16, 0% in FY17-FY19 Forecast assumes 250 separations in FY16 and 230 separations in FY17-19 Healthcare rates are forecasted to increase an average of 9.5% in FY16 - FY19. Forecast assumes $3.6 million of strategic investments per year. Forecast assumes a loss of $2.5 million of Title IIA which shifts 27 teachers to the General Fund in FY Forecast assumes additional dollars for new schools/school improvements. $7.0 million FY15, $8.5 million FY Forecast assumes $10 million of continued aggressive fiscal management to gain efficiencies per year in FY Forecast assumes no change in charter enrollment. FY15FY16FY17FY18FY19 G F5,1165,147

Cleveland Municipal School District 6 General Fund Revenues

Cleveland Municipal School District FY

Cleveland Municipal School District Local Taxes – Property Tax Revenue 8

Cleveland Municipal School District Property Taxes – Current Collection Rate 9 Current Collection Rate Calendar Year

Cleveland Municipal School District Property Taxes – Total Collection Rate 10 Current Collection Rate Calendar Year 87.0%

Cleveland Municipal School District State Foundation Revenue 11 Revenue (In Millions) Fiscal Year

Cleveland Municipal School District Education Jobs 12

Cleveland Municipal School District Property Tax Allocation – State Hold Harmless Reimbursements 13

Cleveland Municipal School District Other Revenue 14 Revenue (In Millions)

General Fund Revenue 15 *Projected – Excluding Advances

Cleveland Municipal School District 16 General Fund Expenditures

Cleveland Municipal School District Where the Money Goes 17

Cleveland Municipal School District Salaries 18

Cleveland Municipal School District Fringe Benefits 19

Cleveland Municipal School District Purchased Services 20 Expenditures (In Millions)

Cleveland Municipal School District Supplies, Textbooks, Equipment, and Other Expenditures 21

General Fund Expenditures 22 *Projected – Excluding Advances

Cleveland Municipal School District 23 Five-Year Forecast Summary

Cleveland Municipal School District May 2015 Five-Year Forecast (in millions of dollars) 24

Cleveland Municipal School District 25 Governor’s Proposal

Cleveland Municipal School District Five-Year Forecast Adjusted for Governor’s Proposal (in millions of dollars) 26

Cleveland Municipal School District Five-Year Forecast Adjusted for State’s New Funding Formula May #2 (in millions of dollars) 27

Cleveland Municipal School District May Five-Year Forecast Adjusted for State’s New Funding Formula June #2 Enrollment (in millions of dollars) 28

Cleveland Municipal School District Five-Year Forecast Adjusted for Governor’s Proposal – No change in Enrollment (in millions of dollars) 29

Questions 30 Cleveland Municipal School District