FIVE YEAR FINANCIAL FORECAST MAY 2013 Cleveland Municipal School District The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America. 1

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: On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning January Forecast includes new levy. Assumes levy will expire December 31, Half year value is $31.4 million. Forecast assumes that the property tax current collection rate will remain at 76.10% and the total collection rate will remain at 84.96%. 1% change represents $2.4 million. Cuyahoga County completed its 6 year reappraisal. Property assessed valuation decreased by $800 million from $5.7 billion to $4.9 billion. State foundation - Governors proposed bi-annual budget. Assumes FY14 and FY15 will be same as FY13 except for transportation and Charter schools. Assumes that $75.5 million guarantee will not be eliminated in FY16 and FY17. Forecast assumes the Average Daily Membership for K-12 to be: CMSDCharterTotal FY1339,08818,34457,432 FY1437,52119,59757,118 FY1536,02320,79656,819 FY1635,00121,61356,614 FY1734,13922,30356,442

Major Assumptions continued 5 Expenditures : The district restored 50 minutes to the classroom in January 2013– 193 teachers were added – Estimated cost is $6.7 million in FY13 and $16.7 million in FY Forecast assumes 50 less employees each year in FY14-17 due to attrition. Forecast assumes $14 million of budgetary savings per year in FY Forecast shifts $3.4 million of personnel cost to the General Fund in FY14 due to a decline in federal funding (sequestration). Healthcare rates are forecasted to increase an average of 9.3% in FY14 - FY17. Forecast assumes all union agreements as currently defined including step increases. Forecast assumes a $3.2 textbook budget for all fiscal years. Forecast assumes $3.6 million of strategic investments per year. Forecast assumes investment schools each year. $3.5 million FY14, $7.0 million FY15, $10.5 million FY16-FY17. Forecast assumes $7,335 per student for charter schools in FY14 – 17.

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 Current Collection Rate Year 9

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

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

Cleveland Municipal School District State Foundation Revenue – Excluding Charter School Portion Revenue (In Millions) Fiscal Year 12

Cleveland Municipal School District Education Jobs 13

Cleveland Municipal School District Property Tax Allocation – State Hold Harmless Reimbursements 14

Cleveland Municipal School District Other Revenue Revenue (In Millions) 15

General Fund Revenue 16 *Projected

Cleveland Municipal School District 17 General Fund Expenditures

Cleveland Municipal School District Where the Money Goes 18

Cleveland Municipal School District Salaries 19

Cleveland Municipal School District Fringe Benefits 20

Cleveland Municipal School District Purchased Services Expenditures (In Millions) 21

Cleveland Municipal School District Supplies, Textbooks, Equipment, and Other Expenditures 22

General Fund Expenditures 23 *Projected

Cleveland Municipal School District 24 Five-Year Forecast Summary

Cleveland Municipal School District May 2013 Five-Year Forecast (in millions of dollars) 25

QUESTIONS THE PRIMARY GOAL OF THE CLEVELAND MUNICIPAL SCHOOL DISTRICT IS TO BECOME A PREMIER SCHOOL DISTRICT IN THE UNITED STATES OF AMERICA. 26 Cleveland Municipal School District Five-Year Financial Forecast – May 2013