AASBO March Bi-Monthly Membership Meeting Dr. Chuck Essigs

The difficult times will stay for a number of years. Could it get more difficult? – It could. When will it improve? Think long term.

Source of State Dollars Sales tax individual$4.3 billion52% Income tax$2.5 billion31% Corporate tax$0.6 billion7% Other$0.86 billion10% Total$8.2 billion

Budget/ Future Considerations One cent sales tax ends in FY $1 billion K-12 rollover - $1.2 billion (estimate) Suspended funding formulas - $1 billion State Jobs Plan – ? millions

Long Range Forecast Estimated revenue in FY2014 of $8.46 billion Vs. actual revenue in: FY2005 of $7.72 billion FY2006 of $9.26 billion FY2007 of $9.62 billion

Soft Capital$165,120,700 New Utilities$100,000,000 Charter School Additional Assistance$10,000,000 Building Renewal$241,593,600 Total:$516,694,300 * No estimate for New School Construction Suspended K-12 Funding Formula Items

Other Issues Full-day Kindergarten$218 million No inflation increase for Base Formula Over $100 million Classroom Site FundOver $200 million

School Budget Parents, Community, Students and Employees

Portion of M/O Budget for Salaries and Benefits State Average 84% 7 Districts are at 89% or more 43 Districts are between 89% and 85%

Times Have Changed Past – Pay your people more or pay more people Present – Pay your people less or pay less people

Options Eliminate services Contract services Cooperative programs

Do Not Forget the Benefits 21 Districts - Over 30% 76 Districts - Between 30% and 25% 118 Districts - Between 25% and 20%

Special Education Should not be overlooked You need to look at comparisons

Special Education Know your spending and know why

Special Education/ % of M/O 9 Districts - Over 20% 58 Districts - Between 20% and 15% 73 Districts - Between 15% and 10%

Special Education Spend more or less than other districts More or less students that need special services More or less expensive services

Closing Schools Why When Win CLOSED