1. Public Schools of Petoskey
Budget Update and Outlook
February 14, 2003

2. The Big Picture: What We Know About FY 2002-03 at the State Level
$127 million deficit in FY
Reduction letter has been issued
Legislature had 30 days (Feb. 14) to appropriate additional funds or reduce appropriation to avoid across-the-board reductions
No legislative action occurred, so the 3.8% reduction will affect our March State Aid payment

3. At Risk FY 2002-03 Original Budget: $262,385
Reduction for Added Schools: ($ 10,132)
3.8% Reduction of Original: ($ 9,971)
Amount Budgeted: $242,282
Amount Spent YTD: $242,282

4. State Aid Cuts – Current Year
Amount Subject to Reduction (Sec. 22b) $4,958,193
Reduction Percentage: %
Est. Revenue Loss this Year: $ 188,411

5. Current Year Changes Capital Outlay: Remainder Mostly Eliminated
Supply Budgets: Reduced 20%
Conferences: Reduced / Entry Fees Only
Cutting in February is particularly tough as most budget expenditures are made in the beginning of the year.

6. Spending Freeze Non-Payroll Budget $2,133,682
Essential Items (Utilities, etc) $1,147,067
Discretionary Budget $ 986,615
20% of Discretionary Budget $ 197,323
Revised Discretionary Budget $ 789,292
Spent to Date $ 685,331
Amount Avail thru End of Year $ 103,961

7. FY Budget

8. FY 2003-04 Budget Environment
State General Fund short $2 Billion
State School Aid Fund short $366 Million
State General Fund contributes $198 Million to School Aid Fund.
Governor has indicated the need for across the board GF cuts to alleviate the shortfall.
Bottom Line: 11% Reduction next year is the Best Case scenario

9. At Risk - FY 2003-04 Original Budget: $262,385
Reduction for Added Schools: ($ 10,132)
11% Reduction of Original: ($ 28,862)
Amount Available: $223,391
FY Budget: $242,282

10. State Aid - FY
Amount Subject to Reduction (Sec. 22b) $4,953,690
Reduction Percentage: %
Est. Revenue Loss: $ 544,906

11. FY 2003-04 Cost Increases Step Increases alone: $237,205
LT Leave Staff Returning: $ 97,212
Retirement Rate to 15%: $302,529
Health Increase 20%: $515,746
Total Cost Increases $1,152,692
Lost Revenue: $544,906
Next Years Budget Challenge: $1,697,598

12. How We Spend Our $$
Total Expenditures (FY 02-03): $22,909,242

13. Revenue Overview 2002-03 2003-04 Budget Revised Local-Taxes
$12,787,086
$11,932,862
$13,150,200
Local-Other
455,480
445,662
State
8,259,035
9,262,267
7,500,023
Federal
323,633
441,104
Transfers
970,746
732,287
Total
$22,795,980
$22,814,182
$22,269,276

14. Expense Overview 2002-03 2003-04 Budget Revised Salaries $12,567,931
$12,733,303
$13,067,920
Fringes
5,297,176
5,344,576
6,162,851
Purch. Svcs.
2,352,826
2,362,587
2,363,587
Supplies
1,855,115
1,574,857
Capital Out.
565,671
478,919
382,659
Transfers
430,000
415,000
Total
$23,068,719
$22,909,242
$23,966,874

15. Summary 2002-03 2003-04 Budget Revised Revenue $22,795,980 $22,814,182
$22,269,276
Expense
23,068,719
22,909,242
23,966,874
Profit / (Loss)
$(272,739)
$(95,060)
$(1,697,598)
Beg. Fund Balance
$3,526,535
$3,431,475
End. Fund Balance
$3,253,796
$1,733,877
Fund Balance %
14.11%
14.98%
7.24%

16. So Now What? We are looking for bright ideas!!
We can easily address $200K in cost savings, but $1.7 million is tougher and should be addressed together.
Cost savings suggestions?
ideas to Kent or your building principal; or fill out the supplied form.

17. How Do We Increase Student Achievement?
Even in this environment of budget constraints.
We want your ideas
them to Dr. J, Jane Bailey, or Building Principal; or fill out the supplied form.

18. Questions and Answers