1. Budget Cuts and Their Consequences Mark Grey Assistant Superintendent, Business Services

2. 2008-2009 Budget Challenges FEFP Funding Student Enrollment Property Valuations State Economy Fixed Costs Savings Measures

3. FEFP Funding 2007-2008 Budget reduced by $32 million –190 Unfilled district positions –Contingency Fund eliminated –Capital Equipment budgets eliminated –Vehicle Replacements eliminated –Dept budgets reduced 2008-2009 Budget reduced by $9.06 million from previous year end

4. Student Enrollment May 200892,952.83 Projected 08-0993,745.96 Budget 1% decline92,808.51 Current Differential 144.32 Will all current students return for the next school year?

5. Property Valuations Projected37,453,748,711 June 2008 Estimate36,510,834,328 Variance (942,914,383) Budget Impact ($5.45 Million)

6. State Economy Will the economy continue to decline, stabilize or improve? Will there be a mid year reduction if the economy continues to falter? May 2008 Revenue Conference numbers below estimates.

7. Fixed Costs Diesel Fuel increased $3.8 million Utilities increased $1.0 million Health Insurance increased $3.0 million Restore Contingency Fund $3.0 million

8. Savings Measures 4 Days/10 Hours Work Week Middle & High School Scheduling Model Reduced most dept budgets by 10% Property Insurance Coverage Consolidate ESE sites from 4 to 1 Reduce Athletic contests to FHSAA minimum