1. Public Hearing on the 2010-2011 District Budget June 7, 2010

2. 2010-2011 Budget Educating and inspiring each student to navigate successfully in a global community. The budget is a product of our strategic plan

3. Budget Presentation Review of projections from April meeting Changes to budget assumptions since April State funding – revenue conference Student enrollment – Kindergarten numbers Accounting rule change – GASB 54 Revised budget projection Revised budget reduction recommendation General Fund Budget Proposal Other Funds Budget Proposal District Expense Trends Discussion & Questions

4. 2010-11 Budget (April Board Meeting) 2010-11 Budget Revenues:$26,710,000 Expenses;$28,975,072 Net Chg in Fund Balance($2,265,072) Key Assumptions: $250 decrease in per-pupil funding ($7,452) Health Care increase: 13.4% Retirement Rate: 19.41%, up from 16.94% No change in staffing levels, 0% base increase, step increase (1.8%) Utilities: 10% increase

5. Changes to Budget Assumptions Per-pupil funding: April: Budgeted for $250/pupil cut Rev. Conference: Projection increased by $352 million for 10-11 Revised budget assumption: No cut in funding for 2010-11 Increases projected revenues by $741,250 Student Enrollment: April: Budgeted for 2,995, same as this year Young 5’s/Kindergarten: April – 240, now expect 200 Revised budget assumption: 2,965, decrease of 30 Decreases projected revenues by $231,060 Utilities April: Budgeted for 10% increase Locked natural gas at 09-10 prices, $30,000 savings

6. Other Budget Variables Taxable Values: East Grand Rapids: Overall taxable value down 1.4% Non-Homestead values down 2.0% Kent County: Taxable Value down 5.1% Taxable Value impact on budget: East Grand Rapids values: Recreational Millage: Loss of $11,000 in revenue compared to 09-10 Non-Homestead: No impact on budget, but larger share of per-pupil funding from Lansing. Kent County taxable values: Act 18 Special Education: Loss of $58,000 in revenue compared to 09-10 Retirement Contribution Rate: Been told to budget for 19.41% Actual rate later this year after impact of retirement incentive is known

7. GASB 54 Accounting Standard Accounting Standard that goes into effect for 2010-11 Improved classification & definition of fund balance Revised definition of “special revenue” funds Athletics & Food Service Unless revenue almost offset expenses, no longer considered a “special revenue” fund, must be included in General Fund Impact: Definition of fund balance – nothing material Special Revenue Funds Athletics will no longer be its own fund, and will be included in the General Fund No impact on projected deficit, but will inflate revenues and expenses in the General Fund compared to prior projections

8. 2010-11 Budget (Current Projection) 2010-11 Budget Revenues:$27,450,416 Expenses;$29,186,235 Net Chg in Fund Balance($1,735,819) Key Assumptions: No change in per-pupil funding ($7,702), $115/pupil of fed stabilization Health Care increase: 13.4% Retirement Rate: 19.41%, up from 16.94% No change in staffing levels, 0% base increase, step increase (1.8%) Utilities: 10% increase for electricity, 0% increase for heat Student Enrollment at 2,965, decrease of 30 from 2009-10

9. Revised Cuts & Use of Fund Balance 2009-102010-112011-12 Revenues$27,487,654$27,450,416$27,617,426 Expenses$28,072,288$29,186,235$29,950,039 Use of Fund Balance($584,634)($1,735,819)($2,332,613) Bdgt. Adjustments$1,218,500 $0$400,000 Revised Use of Fund Bal($584,634)($517,319)($714,113) Ending Fund Bal $$4,099,184$3,581,865$2,867,752 Ending Fund Bal %14.4%12.8%10.1%

10. Categorizing the recommendations: Support Services Administration & Administrative Support Athletics Student Support Services Student Programs & Services Projected savings: Original (April recommendation) Revised (Budget Hearing recommendation) Changes shaded in red Budget Committee Recommendations

11. (Support Services) OriginalRevised Replace MS teachers monitoring lunch w/aide$16,000 Custodial Cost Reductions$350,000 * Reduce by 1.0 FTE, outsource Woodcliff/HS Pool * Tentative agreement w/custodial group Discontinue Print Center service$41,000 * Distribute equipment to bldg’s, staff runs print jobs Eliminate funding for noon hour office para’s$11,500$0 * Principals to organize volunteer program Reduce Technology staffing by 1.0 FTE$51,000$0 * Increased response time for technology issues Total Support Services$469,500$407,000

12. Budget Committee Recommendations (Administration & Administrative Support) OriginalRevised Food Service provided by Grand Rapids Public$50,000 Reduce PAC management costs by 50%$45,000$0 Reduce central office support by 1.0 FTE$50,500 Combine HS Registrar & Guidance Ofc. sec.$50,500 Decrease administrative costs$140,000$130,000 * Combine Spec Ed & Child care director(s) * Director of Technology 0.8 FTE, 0.2 MS * 2% base salary reduction - No step increase, 20% decrease in health (Feb) Reduce HS admin secretarial by 0.5 FTE$25,000 Total Administration & Administrative Support$361,000$306,000

13. Budget Committee Recommendations (Athletics) OriginalRevised Eliminate funding for MS Athletics$75,000$0 * District reviewing options to maintain opportunity Eliminate HS Wrestling program$20,000$0 Reduce cost of HS Wrestling program by 50%$0$10,000 Total Athletics$95,000$10,000

14. Budget Committee Recommendations (Student Support Services) OriginalRevised 10% Building/Department budget reduction$80,000 Convert 10 extra work days for HS/MS counselors to Flex leave days during school year $12,000 Restructure Media Centers:$223,000$123,000 * Combine MS/HS specialist, maintain 0.4 at elem. * Reduce elementary para’s from 35 to 20 hours/week Reduce Spec Ed itinerant staffing by 1.0 FTE$80,500$35,000 * Visually impaired teaching staff combined at KISD Eliminate funding for K & 1 st grade para’s$67,500$0 * Principals to organize volunteer program Total Student Support Services$463,000$250,000

15. Budget Committee Recommendations (Student Programs & Services) OriginalRevised Consolidate 4 3 rd sections into 3 4 th grade sections at Lakeside $60,500 * Worked collaboratively with Lakeside staff Eliminate General Ed Social Work$75,000$0 Reduce Gen Ed teaching staff at HS by 1.0 FTE$60,500 * Discontinue PE/Health block 0.4 to 0.6 FTE * Reduction in offered electives for remainder Eliminate 0.5 FTE Intervention Specialist$45,000$0 * Reduction in assistance for struggling Gen Ed students

16. Budget Committee Recommendations (Student Programs & Services, continued) OriginalRevised Reduce Special Education Social Work$36,000 * 0.1 FTE at each elementary, ECHC & HS Discontinue district funding for Youth Dev.$50,000$0 Reduce HS Spec Ed teaching by 0.4 FTE$28,000 * Consolidation of two Academic Support Center classes Reduce MS Counselors from 2.0 to 1.0 FTE$60,500 * Programs and services for students cut back Total Student Programs & Services$415,500$245,500

17. Budget Committee Recommendations (Summary) OriginalRevised Support Services$469,500$407,000 Administration & Administrative Support$361,000$306,000 Athletics$95,000$10,000 Student Support Services$463,000$250,000 Student Programs & Services$415,500$245,500 Total Reduction Recommendations$1,804,000$1,218,500

18. Summary of Reinstated Items Noon Hour office parapro’s$11,500 1.0 FTE Technology staff position$51,000 50% reduction in PAC management$45,000 Director of Technology & Assessment teaching a class at MS$10,000 MS Athletics$75,000 50% of cost of HS Wrestling$10,000 0.4 elem. media specialist, 20 hrs/wk media parapro$100,000 Special Education Itinerant staffing$45,500 K & 1 st grade parapro’s$67,500 General Education Social Work$75,000 0.5 FTE Intervention Specialist$45,000 Youth Development Funding$50,000 Total Reinstated Items$585,000

19. 2010-11 General Fund Budget Proposed Budget 2010-11 Budget Revenues:$27,450,416 Expenses;$27,957,735 Chg in Fund Balance($517,319) Beginning Fund Equity (7/1/10)$4,099,184 Ending Fund Equity (6/30/11)$3,581,865 Ending Fund Equity %12.8%

20. Sinking Fund Budget 2009-102010-11Change Revenues$280,771$281,840$1,069 Expenses$485,000$138,000($347,000) Net Chg($204,229)$143,840$348,069 Fund Bal$1,001,263$1,145,103

21. Debt Retirement Fund Budget 2009-102010-11Change Revenues$4,536,320$4,472,877($63,443) SBLF$1,747,386$1,865,517$118,131 Tot Rev$6,283,706$6,338,394$54,688 Expenses$6,303,706$6,338,394$54,688 Net Chg($20,000)$0 Fund Bal$130,117

22. Revenue vs. Expense

23. General Fund Budget (How has the district managed?) East Grand Rapids Schools Balancing Act (Cumulative)

24. Historical Expenditures 2006-072007-082008-092009-10 (B)2010-11 (B) Instruction58.0%58.2%57.4%58.5%60.9% Instructional Support10.5%10.6%11.1%10.6%9.7% Admin & Support12.3%11.8%11.9%11.3%11.2% Support Services16.6%16.8%17.0% 15.5% Co-curricular’s2.6%2.5%2.6% 2.7% Total100%

25. Summary State’s economic issues have placed schools in an precarious financial situation Hopefully, the May revenue predictions are accurate, and the state’s economy is poised to grow State has a responsibility to stabilize school funding, and assist with cost control Budget cuts are starting to impact programs and services and with future stagnant funding, will seriously impact programs and services Despite the level of recommended budget reductions, EGR will offer an excellent educational program next school year

26. 2010-2011 Budget Educating and inspiring each student to navigate successfully in a global community. The budget is a product of our strategic plan

27. Questions?