1. FY2010 Preliminary Budget Appoquinimink School District July 14, 2009 Presentation

2.  What we will cover  Process and timeline  Principles  Major changes from FY2009  The budget ASD FY2010 Preliminary Budget

3.  Start with FY2009 Final Budget  May/June – forecast final FY2009 revenues/expenditures  May/June – meet with schools and departments to discuss FY2010 needs Process and timeline

4.  May/June – make Superintendent and Financial Advisory Committee aware of potential major budget issues  June – forecast FY2010 revenues based on FY2009 and draft State budget  June/July – set tax rates Process and timeline

5.  July – adjust based on final State budget and FY2009 ASD figures  July – preliminary budget reviewed by Financial Advisory Committee (FAC)***  July – preliminary budget presented to the Board for approval*** *** These may be done in June in years of more financial certainty Process and timeline

6.  July 1 – fiscal year begins – operate conservatively using draft preliminary budget until Board approval  July 1 (or so) – State pre-loads State appropriations in Appoquinimink’s “account” (typically 75%)  October – unit count finalized, balance of State money allocated Process and timeline

7.  December – prepare final budget  January – final budget reviewed by FAC, presented to Board  April-July – amendments to the final budget may be considered by the FAC and Board  May – cycle starts again Process and timeline

8.  Monitoring and reporting  Finance Director monitors appropriation balances and expenditure budgets almost daily  Payroll staff monitor reports after each payroll disbursement  Finance staff review reports weekly/monthly as applicable  Monthly reporting to FAC, Board, public Process and timeline

9.  Balanced budget (total revenue budget = total expenditure budget)  Build and maintain our reserve  Preliminary budget conservatively forecasts revenues in a lean year like FY2010 Budgeting Principles

10.  Federal – additional $1.8 million in ARRA (“Stimulus”) one-time special education funds – spending plan being developed openly with a committee of parents, Board, district and school staff  Federal – also receiving smaller amounts of ARRA funds for nutrition equipment and homeless student support Major changes from FY2009

11.  ARRA Stabilization funds are filling State cuts in Student Success, Technology, ELL, Reading Resource, Math Specialists, Tax Relief, Academic Excellence Allotment (~$1.5M total)  Preliminary budget shows these funds as State – will likely show as Federal in the final budget Major changes from FY2009

12.  The ARRA Stabilization funds should also be available to backfill the zeroed- out State appropriations for FYs 2010 and 2011, but not after that  State salaries – 2.5% cut on State side – Appoquinimink’s “furlough” plan has not been finalized Major changes from FY2009

13.  Local –$500K from reserve to balance the budget (to cover contractual local raises)  IBU16 (Instructional Materials) cut 17% then split between school budgets and the district textbook fund  Building Use/Rentals revenue is now a line in the detailed revenue budget Major changes from FY2009

14.  Major capital  All Year Three funding is in the Bond Bill (less $273,966)  “Escheat” funded construction from FY2009 – never received in FY09 but it was added to FY2010 bond bill Major changes from FY2009

15. Major Capital Bond Funding ProjectStateLocalTotal Renov/Add MHS3,942,9001,548,4005,401,300 Renov CLE9,371,4003,466,13412,837,534 Renov RMS555,500205,500761,000 Renov MMS40,30014,90055,200 BME Serving Line56,70021,00077,700 Renov SLE260,60096,400357,000 TOTALS14,227,4005,262,33419,489,734

16. FY2010 Prelim Revenue Budget State Funds (Div I/II/III/Other)65,789,148 Local Funds Current Operations Tuition Minor Cap/Tax Match Debt Service Other Local 13,654,411 5,285,000 1,226,740 5,960,000 2,247,812 Federal Funds3,926,457 Construction (State + Local)19,489,734 Debt Service State Share6,049,446 Minor Cap State Share472,716 TOTAL124,101,464

17. FY2010 Prelim Revenue Budget 70% 27% 3% STATE 86.5M FEDERAL 3.9M LOCAL 33.6M TOTAL 124.1M Was 3%, 26%, 72% in FY09

18. FY2010 Prelim Expenditure Budget Operating Budget36,416,629 Division I45,518,706 Tuition In-State Tuition/Private Placement ILC, DFP, DFP PreK, Needs-Based 1,600,000 3,685,000 Federal Funds3,926,457 Major Capital Improvements Debt Service Construction 12,009,446 19,489,734 Minor Capital/Match Extra Time Local Minor Capital Improvements Technology Local 413,000 787,860 254,632 TOTAL124,101,464

19. FY2010 Preliminary Budget  This preliminary budget was reviewed and endorsed by the Financial Review Committee on July 7, 2009  Questions?  Approval