1. 2011-2012 PRELIMINARY BUDGET DRAFT 3 APRIL 25, 2011

2. CPS VISION We will be a premier learning organization, fostering relationships with school and community to develop contributing and productive citizens.

3. CPS PRIORITIES & GOALS High quality, guaranteed curriculum & assessments supported by rigorous assignments Increase achievement & success for all students Continued partnerships with community & parents Failure is not an option – supporting all students Safe & orderly environment

4. Budget Development Goals Maintain & strengthen the integrity of the instructional program K-12, matching resources with student achievement. Present a balanced budget. Maintain financial integrity & stability of the district in accordance with board goals. Review staffing levels to meet enrollment, student achievement, and operational needs.

5. Budget Development Goals (continued) Utilize bond funds to maximize long term efficiency of operational budgets. Develop budget through a consultative approach using a zero base budgeting method resulting in a recommendation by the Superintendent to the Board of Education.

6. Decision Making Parameters Staff Development/School Improvement Provide support for increase in student achievement. Assure alignment of curriculum implementation. Review for alignment with district mission / goals. Encourage promotion of individual professional growth.

7. Decision Making Parameters Personnel Adhere to legal and contractual requirements. Consider student enrollment needs. Consider operational requirements. Utilize total cost compensation for contract development.

8. Decision Making Parameters Capital Outlay Assure student and employee safety. Maintain building integrity. Consider student enrollment needs. Allow for program completion to full operational levels.

9. Decision Making Parameters Financial Integrity Maintain long term district financial integrity.

10. Budget Highlights Full Day, Every Day Kindergarten Spanish Language Instruction in Elementary Schools Year-round Educationally Based Childcare Program Leader in Advanced Placement High School Offerings

11. Budget Highlights Variety of Choice in High School Offerings Charlotte Performing Arts center Offerings & Events State-of-the-Art Middle School Modern Athletic Facilities

12. Budget Highlights Safe, Orderly, & Well Maintained Schools Majority of Teachers with Masters Degrees Supplemented with Continuous Teacher Training Array of Extra Curricular Offerings Award Winning Band & Vocal Music Instruction

13. Budget Highlights District Strategic Plan Quality Special Needs Programming State-of-the-Art Technology in School Buildings New Education Foundation for Program Development & Enhancement

14. WHERE HAVE WE BEEN?

15. 2009-2010 Budget Reductions Weymouth Redesignation Custodial Services (1.2 FTE) Principal Position (1.0 FTE) Secretarial/Office Parapro Position (1.7 FTE) Teaching Positions (2.7 FTE) Elementary Social Worker Position (1.0 FTE)

16. 2009-2010 Budget Reductions Weymouth Redesignation (continued) Transportation Savings Utilities Technology/Media Purchased Services/Supplies/Other Total Projected Savings: $752,555

17. 2009-2010 Budget Reductions Personnel Changes Teaching Positions (12.1 FTE) Paraprofessional Positions (9.0 FTE) Principal Position (1.0 FTE) Secretary Positions (1.5 FTE) Transportation Restructuring (1.2 FTE) Guidance Position (1.0 FTE)

18. 2009-2010 Budget Reductions Personnel Changes (continued) Central Office Position (1.0 FTE) Custodial Service Restructuring Lab Tech Position (0.5 FTE) Other Assignment Restructuring Total 09-10 Personnel Changes: $1,289,938

19. 2010-2011 Budget Reductions Personnel Changes Teaching Positions (4.7 FTE) Paraprofessional Restructuring Technology/Media Director Position (1.0 FTE) Guidance Position (2.0 FTE) Central Office Position (0.37 FTE)

20. 2010-2011 Budget Reductions Personnel Changes (continued) Custodial Service Restructuring Media Specialist Position (1.0 FTE) Schedule B Changes Other Assignment Restructuring Total 10-11 Personnel Changes: $ 816,157

21. District Administration 34% reduction in supervision and administrative costs since 2005

22. Business & Administrative Efficiency CPS is ranked number 18 out of 774 districts for greatest business & administrative efficiency. –Top 2% of All Michigan School Districts for Efficiency –08/09 State Average Cost Per Pupil = $1,169 –08/09 CPS Average Cost Per Pupil = $ 783 –$386 Per Pupil Under State Average $386 x 3,194 Students = $1,232,884 Savings Compared to State Average **Information taken from most recent MDE Bulletin 1014 (2008-2009).**

27. Governor’s School Funding Proposal $195.9 Million to Community Colleges $699.7 Million to State Universities $895.6 Million to Higher Education from K-12 State Aid Fund (Equivalent of $550 per Pupil)

28. Lansing State Journal April 25, 2011 Governor’s Proposal “Proposes per-student reduction of $300 in addition to $170 per-student reduction that was already in place when he took office.”

29. Lansing State Journal April 25, 2011 Governor’s Proposal - continued “The new reduction would be about a 4 percent cut in the per-student foundation grant for districts on the low end of Michigan’s funding system.”

30. Lansing State Journal April 25, 2011 Governor’s Proposal - continued “But throw in the $170 cut and higher payments for pension costs and most districts will have to grapple with budgets that shrink 8 percent to 10 percent.”

31. Lansing State Journal April 25, 2011 Governor’s Proposal - continued “Snyder’s cutting $300 per student so he can use the money instead to pay for community colleges and universities out of the school aid fund rather than the general fund.”

32. 2011-2012 Fiscal Projection (with Governor’s $470 Recommended Cut)

34. 2011-2012 Fiscal Projection (with $300 Cut)

36. Annual Revenue History Total 2008-2009$ 26,935,973 Total 2009-2010$ 25,008,629 Total 2010-2011$ 24,845,310 Projected Total 2011-2012$ 22,225,614 Projected Total 2012-2013 $ 21,026,784

37. State Aid Calculation 2011-2012 Foundation Allowance Per Pupil $6,846.00 X Projected Blended Enrollment x 2,845 Total Foundation Allowance $19,474,799 Foundation Allowance $19,474,799 Local Millage ( @ 18 Mills on Non-Homestead) $ (2,712,463) State Aid From Foundation Allowance:$16,762,336

38. TOUGH TIMES TOUGH CHOICES

39. 2011-2012 Budget Overview Elementary Redesignation (closing as an elementary building) 4 th Grade Moving to Middle School Closing of Aquatic Center Elimination of School Within A School and Wheel Time at Middle School

40. 2011-2012 Budget Overview Increased Walk Zone for High School Reduced Athletic Transportation Technology Replacement Costs Assumed by Broadband Funds

41. Elementary 2011-2012 Redesignation Instructional Efficiency Savings: $317,400 Operational Savings: $266,119 Misc. Supply/Tech Savings: $ 63,481 Total Estimated Savings: $647,000

42. Total Elementary Staffing Reductions Decrease of Instructional Staff: 7.00 FTE Includes: teachers, media, specialists, special education Decrease of Support Staff: 4.83 FTE Includes: paraprofessional, guidance, administration, secretarial

43. Total Middle School Staffing Reductions Decrease of Instructional Staff: 6.49 FTE Includes: teachers, media, special ed Decrease of Support Staff: 1.53 FTE Includes: guidance, secretarial *Includes elimination of wheel time and school within a school *Accommodates five grade levels

44. Total High School Staffing Reductions Decrease of Instructional Staff: 1.59 FTE Includes: teachers, media, special ed Decrease of Support Staff: 0.75 FTE Includes: guidance, secretarial

45. Total Special Education Staffing Reductions Decrease of Instructional Staff: 1.13 FTE Decrease of Support Staff: 0.50 FTE

46. Media and Technology $30,000 reduction in district media purchased services and supplies

47. ATHLETIC DEPARTMENT No change to student participation fee Require a minimum of 12 participants for any sport Eliminate all Saturday transportation/One Way = $10,000 - $20,000

48. AQUATIC CENTER Current Proposed Operating Revenues$ 143,900$ 152,700 Instructional Transfer$ 82,845$ 85,794 Total Revenues$ 226,745$ 238,494 Total Expenditures$ 361,996$ 373,016 Net Surplus (Deficit)$(135,251)$(134,522) **Proposed Aquatic Center Closure in July 2011** **Combined savings to general fund of $220,000**

49. PERFORMING ARTS CENTER Professional series is self-supporting, covering all related costs with no general fund support. Overall reduction in budget of $18,000

50. CUSTODIAL/MAINTENANCE Staff Restructuring: Less 2.37 FTE Reductions in Supplies/Purchased Serv: $71,500

51. TRANSPORTATION District Walk Zone Changes Grades 9-12 ~ Increase to 1.5 Miles (Currently 1.3 Miles) Grades 6-8 ~ No Change (Currently 0.8 Mile) Grades K-5 ~ No Change (Currently 0.5 Mile) Associated Savings of $5,000

52. FISCAL SERVICES Reduction of 1 Administrative Position District Mail ServicesReduced 30%

53. Preliminary 2011-2012 Budget Summary Total Projected Revenues:$22,235,614 Total Projected Expenses:$23,052,831 Total Projected Deficiency:$ (817,217) *The above shortfall assumes all budget options presented in this presentation are included.*

54. Projected 2012-2013 Budget Summary Total Projected Revenues:$21,026,784 Total Projected Expenses:$23,231,060 Total Projected Deficiency:$ (2,204,276)

55. Your Legislative Contacts Senator Rick Jones –senrjones@senate.mi.govsenrjones@senate.mi.gov –517-373-3447 Rep. Jase Bolger – Speaker of the House –jasebolger@house.mi.govjasebolger@house.mi.gov –269-781-2704

56. Your Legislative Contacts Representative Deb Shaughnessy –debshaughnessy@house.mi.govdebshaughnessy@house.mi.gov –855-328-6671 Rep. Paul Scott (Education Comm. Chair) –paulscott@house.mi.govpaulscott@house.mi.gov –810-845-3772

57. Your Legislative Contacts Sen. Phil Pavlov (Education Comm. Chair) –senppavlov@senate.mi.govsenppavlov@senate.mi.gov –517-373-7708 Governor Rick Snyder –Rick.Snyder@michigan.govRick.Snyder@michigan.gov –517-373-3400