1. WPCSD BUDGET DISCUSSION FY2016 & 2017 JANUARY 28, 2016 REVISED 3/16/2016 REVISED 3/25/2016 PAUL JOHNSON, CFO WHIT PINE COUNTY SCHOOL DISTRICT 1135 AVENUE C ELY, NV 89301 (775) 289-4851 X7107 White Pine County School District

2. Budget Dates & Information 2/15 Department of Taxation issues preliminary revenue projections 3/15 Dept. of Taxation provides final revenue projections 3/25 Dept. of Taxation provides final abated revenue projections for property taxes 4/15 File Tentative Budget (NRS 354.596) 4/25 Final estimate of net proceeds of minerals provided to Dept. of Education 5/1 District’s must notify teachers of employment (NRS 391.3196) 5/18 Mandatory Tentative Budget Public Hearing (3rd Wednesday in May) (NRS 354.596) 5/31 Department of Education notifies school district of per pupil basic support based on updated revenue from Taxation. 6/2End of regular Legislative Session (During legislative years) 6/8Adopt Final Budget (NRS 354.598) 8/1School districts notified of final adjustment to projected minimum textbook expenditure requirements based on projected enrollment (NRS 387.206(2)) 8/25Final adjustments incorporated into prior year-end DSA adjustments 10/31Audit Report is Final – prior year fund balance is official (NRS 354.624(2)) 1/1School districts are required to amend their “final budget” on or before 1/1 (NRS 354.598005(9)

3. FY2017 Estimated Revenue (preliminary information for discussion only) As of January 28, 2016

4. FY2017 Estimated Final Revenue Projections (Includes Unofficial Abatement Estimate) As of March 16, 2016

5. FY2017 Estimated Final Abated Revenue Projections As of March 25, 2016

6. FY2015, 16 & 17 General Fund Budget This is the estimated amount we need to cut in order to balance at this time. Because this is an estimate based on certain variables, the amount is likely to change as the year progresses.

7. FY2016 Budget Cuts Total $1.2 million

8. FY2016 Additional Proposed Cuts

9. FY2017 Possible Budget Reductions

10. General Fund Revenue Projections WPCSD uses projections provided by the Nevada Department of Taxation and Department of Education  98% of Total GF Revenue Per Pupil Funding is established through Legislative process – SB 515  FY2016 – 7,799  FY2017 - $7,848 (+$49) WPCSD does not alter DOT or DOE projections Projections for miscellaneous and federal revenue provided by the District and are conservatively based on prior years.

11. Charter Schools Charter schools reduce the revenue available for other schools NRS 387.124 Apportionments to school districts, charter schools....  2. Except as otherwise provided in subsection 3 and NRS 387.1244, the apportionment to a charter school,..., is equal to the sum of the basic support per pupil in the county in which the pupil resides plus the amount of local funds available per pupil pursuant to NRS 387.1235.... (a.k.a. outside revenue)  WP FY2016 Per Pupil Amount $7,848  2/3 of the property taxes  Government Services Tax  Total Charter School per Pupil Amount - $9,638

12. Estimated Charter School Enrollment Charter School Enrollment 152.2 students  Leadership Academy of Nevada 3.0  Learning Bridge Charter School 142.6  Nevada Connections Academy 4.0  Nevada Virtual Academy1.6  Silver Sate Charter High School1.0  Total152.2 State will reduce DSA by approximately $272,468 from local taxes (152.2 x $1,790.20) State will transfer $1,194,466 in DSA funding Total Charter School Impact $1,466,934. FY2017 average daily attendance (ADE) 1,202.6

13. Student Enrollment

14. Preliminary Inflation Factors Revenue: 2/15/16 – Taxation provides preliminary revenue projections 3/15/16 – Final revenue projections 3/25/16 – Abated revenue projections (used in final budget filed 6/8/16) Expenditures Group Insurance: 8% Other Insurance: 3% Teacher Wages: 1.5% (est. impact of range 4.50% and step 3.30%) Support Staff Wages: 1.5% (est. impact of steps 4.35%) Administrative Wages: 1.5% (est. impact of steps 2.20%) Estimated impact on total wages for range progression and steps for all employees This does not represent a % increase to the wage/salary schedules PERS Worker’s Comp: 3% (range and step) Utilities: 3% Gas/Fuel: 3% Remaining line items for FY2015 will be based on the FY2014 budget or projected expenditures (projected year-to-date plus encumbrances)

15. Future items that will influence the budget Actual inflation State Legislative/Budget Decisions (during legislative years only)  Can affect revenues and expenditure Federal Revenue  There is no basis to determine the amount of federal revenue from year-to-year. Budget are simply based on historical revenue. Fortunately, revenue has been relatively consistent. Student enrollment  General Fund, Special Education, English Language Learners, Charter schools. Audit Report  Adjusting entries, fund balance, actual revenue, actual expenditures Facilities/Transportation  Deferred maintenance, improvements and replacement are starting to become more and more costly on an annual basis. The District is having to react to material expenditures instead of plan for them. This puts added burden on monthly cash flows and budget decisions. Local Economic Development  Mining activity, net proceeds of mineral, local taxes. Other Factors  General Fund Transfers

16. Conclusion District needs to cut approximately 10% of its operating budget. Fund reserves will be depleted to balance the FY2016 budget. Fund balance below 4% requires explanation to Taxation Lack of an adequate fund balance to adapt to economic changes will put the District at significant risk of over expending its General Fund budget. Budgets by definition are estimates. Certain assumptions with respect to future expenditures and economic events must be made and are likely to change and may change significantly. The information in this presentation should be used for discussion only as a means to frame future budget discussions and decisions.