1. Public Schools of Petoskey Spring 2005 Budget Update

2. Current Projections with No Changes 04-0505-0606-07 Revenue$23,620,886$23,078,401$23,815,352 Expenses$24,320,117$25,440,248$26,707,803 Profit / Loss($699,231)($2,361,847)($2,892,451) Expected Fund Balance $2,979,221$617,374($2,275,077)

3. Fund Balance Target – 4.3 Weeks of Expenses 04-0505-0606-07 Projected Fund Balance $2,979,221$617,374($2,275,077) Target Fund Balance $2,000,000$2,136,981$2,243,455 Cuts/Revenue Needed -0-$1,519,607$4,518,532 Cuts if 05-06 is Balanced $1,550,000

4. Submitted Cost Savings Ideas – Page 1 Cost Savings IdeaSavings Administration position$117,930 Teaching staff position (Non ESP)$64,690 Classroom aide position (177 work days)$26,680 Librarian position$87,859 Technology tech position (260 work days) $56,986 District nurse position$14,213 District social worker position$95,663 Note: Amounts shown are the total cost. That includes salaries and fringe benefits combined.

5. Submitted Cost Savings Ideas – Page 2 Cost Savings IdeaSavings Secretarial position (Avg 210 work days)$46,475 Non-union support staff position$44,591 Custodial position (260 work days)$49,236 Eliminate noon hour monitors$78,385 Health insurance changes$TBD Contract for substitute teacher calling$30,000 Privatize all support services K-12 (Est.)$898,885 Driver education program eliminated$34,698 Note: Amounts shown are the total cost. That includes salaries and fringe benefits combined.

6. Submitted Cost Savings Ideas – Page 3 Cost Savings IdeaSavings Art/Music/PE eliminated K-12$477,355 Community Ed eliminated$34,912 Offer only half day kindergarten$90,019 Reduce supply budgets 10%$110,000 Reduce transfer to Athletics$50,000 Eliminate non-grant conference fees$32,000 Reduce technology repair budget$16,278 Note: Amounts shown are the total cost. That includes salaries and fringe benefits combined.

7. Submitted Cost Savings Ideas – Page 4 Cost Savings IdeaSavings Eliminate transportation for field trips$37,846 Property/Casualty insurance changes$25,000 Eliminate 9-12 bussing$125,000 Savings per day school year is reduced$18,000 Teacher takes ESP, district replaces$30,546 Teacher takes ESP, not replaced (Gross) After expenses (Net) $95,258 $61,219 Note: Amounts shown are the total cost. That includes salaries and fringe benefits combined.

8. Timeline March 7: March 17: April 14: April 21: June16: ESP Closes Revised Projection to Board Budget reduction plan recommended Budget reduction plan discussed Budget reduction plan finalized FY 2005-06 Budget Approved

9. Questions

10. Understanding Funds General FundSinking Fund

11. What Are We Asking For? Renewal of 1.32 mills Lasts for 7 years Strictly for major repairs, renovations and / or property and property improvements

12. What Will We Do With The $$’s? Boilers & HVAC Windows & Doors Roofing Paving Plumbing & Electrical Exterior Repair Classroom Additions Auditorium Renovations Possible road access into & out of main campus