Preliminary Budget Projections March 25, 2013

What Will Be Covered Tonight? Update on state legislature and public school funding Update on Budget Preliminary Budget Projections 2

Update on State Legislature and Public School Funding State projection: $8.8B surplus by 8/31 Senate Bill 1 introduced - $1.5B Lockhart ISD – possible $690K House Bill 1 - $2.5B No new Instructional Facilities Allotment Direction of final state budget?

Average Daily Attendance (ADA) final ADA4, budgeted ADA4, year to date ADA (as of 3/4/13)4,568 (increase of 59 ADA over budget) (increase of 148 ADA over last year’s actual) Subject to change throughout the year (usually decreases) Possible increase in General Fund revenues of $265 K (Increase contingent upon continued ADA levels) Hired 3 teachers at $150 K + classroom supplies of $7,500 + Instructional improvements/support of $63K = $221K Increased revenues of $265 – additional costs $221K = $44K 4

Budget Assumptions Through 2014 No new money More students = more revenues Balanced budget Projections: 2.5% property values increase (No impact on total LISD revenues) 3.5% ADA increase 5

Sequestration of Federal Funds Possible for Approximately 5.1% reduction -reduces federal budget deficit Effective date of 3/1/13 at the federal level Possibly affects school funds Possible reduction of approximately $165K for LISD LISD evaluating options  Reduce federal expenditures  Absorb federal expenditures in General Fund 6

TRS Active Care Premium Increase for Active Care 2 increase: $69 per month/$828 per year Estimated cost of $439,668  General Fund $373,718  Special Revenue Funds$65,950  General Fund cost possibly higher due to sequestration Options? 1.Do nothing (employee absorbs cost) 2.LISD increases employer contribution 3.Cost sharing (employee + LISD share the increase) 7

Requests for Capital Outlay and Facilities Improvements Budget savings redirected to purchase capital outlay requests now Maintenance budget fulfilling facilities improvement requests 8

Preliminary Budget Projections (Current Law) 9

Budget Timelines Budget Updates at Regular meetings: April 22, 2013 May 20, 2013 Special Called Meeting: June 3, 2013 –– to call a public hearing and approve a tax rate to be published Regular meetings : June 24, 2013 – Budget adoption August or September 2013– adopt tax rate 10

Questions? 11