FY 2011 Budget and Forecast Presentation Licking Heights Board of Education Regular Board Meeting October 19, 2010

Appropriations by Fund Estimated Expenditures: ◦ General Fund $26,369,590 ◦ Bond Retirement Fund $3,416,089 ◦ Building Fund $1,500,000 * ◦ Permanent Improvement Fund $1,000,000 ◦ State Grants $15,000 ◦ Federal Grants $1,403,475 ◦ Other Grants $38,779 ◦ Food Service $1,176,511 ◦ Activity Accounts $550,183 * Does not currently include any of the $10M COPS proceeds to be used for construction/renovation

General Fund - Expenditures Total increase over – 3.66% No additional staffing budgeted Health insurance renewal = 2.4% increase Reclassification of Flying Colors Preschool services (moved from Purchased Services to Other Expenditures) All equipment purchases removed

Federal Funds Multiple Sources: ◦ Consolidated Application ◦ American Reinvestment and Recovery Act (ARRA) ◦ State Fiscal Stabilization Fund (SFSF) ◦ Education Jobs Fund (Ed Jobs) ARRA and SFSF funds will not be reallocated beyond FY 2011 Ed Jobs fund will not be available after FY 2012

Consolidated Application Total Allocation - $715,828 Currently pays for: ◦ All or a portion of salaries for ten teachers (special education, Title I, ESL, etc.) ◦ Salary for special education secretary ◦ Benefits for three teachers and special education secretary ◦ Professional development for staff ◦ Supplies/materials and equipment needs for special education, Title I and ESL staff

ARRA Application Total Allocation - $262,410 Currently pays for: ◦ Salaries for three special education teachers ◦ Salary for special education supervisor ◦ Salary for literacy coach Funding has not been reallocated beyond FY 2011 Expenditures will have to be reallocated to general fund beginning in FY 2012

State Fiscal Stabilization Funds Total Allocation - $560,800 Currently pays for: ◦ Social Worker at LH West ◦ SRO’s at LH Central and LHHS ◦ LACA Services ◦ Community School Transfer ◦ Early Bird Program at LH South ◦ HS Electric Funding has not been reallocated beyond FY 2011 Expenditures will have to be reallocated to general fund beginning in FY 2012

Education Jobs Fund Total Allocation - $393,256 Available for expenditure in FY 2011 and FY 2012 (must be spent by 09/30/12) Unlike other Federal programs, supplanting is allowable (i.e. able to pay staff previously paid from non-federal funds) Full allocation to be used in FY 2012

Overview of Future Impact on General Fund $560,800 in SFSF funding ends FY11 $262,410 in ARRA funding ends FY11 $393,256 in Ed Jobs funding ends FY12 Total Impact in FY $823,210 Additional Impact in FY $393,256 Total Impact over 2 years - $1,216,466

Five-Year Forecast Total Revenues are estimated to decrease by 17.1% from FY 2011 to FY 2015 Why? ◦ $4.3M operating levy expires 12/31/11 ◦ Over $550K in SFSF funding removed beginning in FY 2012 ◦ 5% reduction in State funding projected in FY 2012 (flat lined from FY 2013-FY 2015) ◦ Reduction in reimbursement related to TPP phase-out

Five-Year Forecast Total Expenditures are estimated to increase by 34.6% from FY 2011 to FY 2015 Why? ◦ Additional staffing included in FY 2012 through FY 2015 to accommodate growth needs, ADK and loss of federal funds ◦ Benefits relative to new staff included ◦ Allocations for textbooks added beginning in FY 2012

What does this mean? The expiring levy will need to be replaced ◦ When and for how much has yet to be determined Some assumptions may need to be changed ◦ This would include reducing additional staffing positions or possibly cutting existing positions The final determination regarding the State’s biennial budget is crucial

Questions / Concerns