1. Willmar Public Schools – ISD 347 2016-2017 Budget Adjustments

2. Deficit Spending We spend more than we bring in. Unassigned Fund Balance Similar to a savings account, the unassigned fund balance is used to offset unexpected changes in revenues or expenses. District policy sets a minimum unassigned fund balance of 6% of general fund expenditures. (Policy 714) Balanced Budget Your income equals your expenditures. Definitions

3. For the 2015-2016 year, the district continues to deficit spend despite $1M in budget reductions. Our Present Status

4. In 2014-2015, the fund balance ended higher than predicted. Legislature added an additional $30 per pupil more than estimated during budgeting. Enrollment is stable and slightly higher than projected. Positives

5. Even with these positives, we continue to spend more than we bring in…

6. The biggest part of the district’s budget is salaries and benefits (positions). Unexpected staff turnover Long-term absences requiring substitutes Contract negotiations By 2017-2018 we will have a new elementary school, an addition to the middle school, and an addition to the senior high school. Challenges

7. For 2016-2017 the district is projected to deficit spend $1.7M bringing the fund balance down to 6.35% ($3.3M). If the district balances the budget by reducing 2016-2017 expenditures $1.7M, the fund balance would be at 9.96% ($4.9M). What Does This Mean?

8. If the district balances the budget for 2016-2017 by reducing $1.7M, the district will be in a better fiscal position for 2017-2018 when costs increase to support operations and new facilities.