1. Public Schools of Petoskey
Spring 2013 Budget Update

2. FY 2013-14 Budget Assumptions Today
Governor’s budget shows a small increase in Foundation, decrease in categorical funding. Net effect is a loss of $2 per pupil.
Pupil count loss of 45 FTE.
Steps included.
1% Pay increase included.
Insurance costs capped at state-mandated limits for all groups.
MPSERS rate rises slightly at around .50%.

4. How are we dealing with our challenges?
May-June 2013: Multiple Board work sessions
On-going: Staff and Community Input
150+ ideas (some duplicates) to date.
Admin Team provides a tentative budget plan at the June 13th Board Meeting.
Revised budget plan presented to Board for adoption at the June 27th meeting.

5. Observations and Recommendations
In our opinion, State support of schools is falling short of what is needed.
The State’s budget process is still in progress and much can still change.
A conservative budget would suggest planning on no funding increases.
We urge our constituents to not be lulled by the “Sound Bites” that suggest funding for schools is increasing.
Our current year budget has a planned loss of $1.1 million. Imbalances like this follow from year to year until fixed.
This planned loss is part of the District’s 4-year budget plan beginning in FY Our plan was based on buying as much time as possible.
It appears our plan, while successful in the early years, is being tested by our legislators actions or inactions in Lansing.

6. Conclusions
It is not too late to discuss the importance of school funding with our legislators or that the healthy State General Fund is largely due to the shifting of Higher Ed costs into the School Aid fund and the cutting of taxes that support education.
Business tax cuts have come at the expense of school funding, which is now in it’s fifth year of stagnation.
According to Citizens Research Council, over the past ten years inflation in the state has been 20.7% but state school funding has increased only 2.2%.
5 years ago our foundation allowance was $7,316. Today it is $6,966.

7. Questions