1. AASBO March Bi-Monthly Membership Meeting Dr. Chuck Essigs

2. The difficult times will stay for a number of years. Could it get more difficult? – It could. When will it improve? Think long term.

3. Source of State Dollars Sales tax individual$4.3 billion52% Income tax$2.5 billion31% Corporate tax$0.6 billion7% Other$0.86 billion10% Total$8.2 billion

4. Budget/ Future Considerations One cent sales tax ends in FY2014 - $1 billion K-12 rollover - $1.2 billion (estimate) Suspended funding formulas - $1 billion State Jobs Plan – ? millions

5. Long Range Forecast Estimated revenue in FY2014 of $8.46 billion Vs. actual revenue in: FY2005 of $7.72 billion FY2006 of $9.26 billion FY2007 of $9.62 billion

6. Soft Capital$165,120,700 New Utilities$100,000,000 Charter School Additional Assistance$10,000,000 Building Renewal$241,593,600 Total:$516,694,300 * No estimate for New School Construction Suspended K-12 Funding Formula Items

7. Other Issues Full-day Kindergarten$218 million No inflation increase for Base Formula Over $100 million Classroom Site FundOver $200 million

8. School Budget Parents, Community, Students and Employees

9. Portion of M/O Budget for Salaries and Benefits State Average 84% 7 Districts are at 89% or more 43 Districts are between 89% and 85%

10. Times Have Changed Past – Pay your people more or pay more people Present – Pay your people less or pay less people

11. Options Eliminate services Contract services Cooperative programs

12. Do Not Forget the Benefits 21 Districts - Over 30% 76 Districts - Between 30% and 25% 118 Districts - Between 25% and 20%

13. Special Education Should not be overlooked You need to look at comparisons

14. Special Education Know your spending and know why

15. Special Education/ % of M/O 9 Districts - Over 20% 58 Districts - Between 20% and 15% 73 Districts - Between 15% and 10%

16. Special Education Spend more or less than other districts More or less students that need special services More or less expensive services

17. Closing Schools Why When Win CLOSED