1. Public Schools of Petoskey
Budget Update & Outlook
May, 2006

2. Last Time We Met….
Spring 2005 – District was wrestling with budget cuts
Many Unknown Variables:
State Aid
Enrollment
Negotiations
Health Care cost increases
District initiated cuts of approx. $1.5 million

3. Prior to Budget Cuts, Our Projections Looked Like This:FY
Total Revenue
$23,090,184
Total Expenditures
25,994,888
Excess Expenditures
(2,904,704)
Fav. Budget Variance
388,229
Use of Fund Balance
(2,516,475)
Fund Balance
Beginning of Year
$2,354,930
End of Year
$ (161,545)

4. After Budget Cuts and Variables Known We Look Like This:FY
Total Revenue
$24,218,212
Total Expenditures
24,281,500
Excess Expenditures
(63,288)
Fav. Budget Variance
357,806
Increase in Fund Balance
294,518
Fund Balance
Beginning of Year
$2,153,922
End of Year
$ 2,448,440

5. What Changed in Revenue from Original Projections?
Original Estimated Revenue:
$175 per pupil increase
ISD Funding for Special Ed
Federal funding increases
Sales of assets
Investment income increase
Total Changes in Revenue
Expected Revenue
$ 23,090,184
541,625
423,000
13,000
105,403
45,000
$ 1,128,028
$ 24,218,212

6. What Changed in Expenses from Original Projections?
Original Estimated Expenditures:
Enacted budget cuts
Avoided unemployment cost
Actual health cost increased 12% vs. original projection of 15%
Change in Budget Varience
Total Changes in Expenditures
Expected Expenditures
$ 25,994,888
1,479,646
75,819
127,500
30,423
$ 1,713,388
$ 24,281,500

7. What Do The Long Range Projections Look Like?
Fund Balance At:
June 30, 2004 (Actual)
June 30, 2005 (Estimated)
June 30, 2006 (Estimated)
June 30, 2007 (Estimated)
June 30, 2008 (Estimated)
$3,678,452
$2,143,258
$2,448,440
$2,425,352
$1,926,616