1. FIVE YEAR FINANCIAL FORECAST MAY 2014 1 Cleveland Municipal School District

2. Five Year Forecast - Contents 2 Major Assumptions General Fund Revenues General Fund Expenditures Five Year Forecast Summary

3. Cleveland Municipal School District 3 Major Assumptions

4. 4 Revenue: Property Tax Collection Rate - The forecast assumes the collection rate will remain at same level as 2013. A 1% change in the collection rate represents $2.6 million. Assessed valuation will increase 2.6% to $5.1 billion in 2015. On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning January 2013. The forecast assumes the levy will expire December 31, 2016. State Funding–Cleveland is on the guarantee for FY14 and FY15. Assumes decrease in FY16-FY18 based on enrollment decline. Assumes no change in State reimbursement of Tangible Personal Property Taxes.

5. Major Assumptions continued 5 Expenditures : Staffing assumptions: The district restored 50 minutes to the classroom in January 2013– 193 teachers were added – Estimated cost $16.7 million in FY14-18. Forecast shifts $7.1 million of personnel cost to the General Fund in FY14 due to federal sequestration and a decline in federal funding. Healthcare rates are forecasted to increase an average of 9.4% in FY15 - FY18. Forecast assumes all union agreements as currently defined. FY14FY15FY16FY17FY18 G F5,0595,0174,905

6. Major Assumptions continued 6 Expenditures : Forecast assumes $3.6 million of strategic investments per year.  Improve IT Infrastructure  Improve IT support  Community Wrap Around Forecast assumes additional dollars for investment schools. $3.5 million FY14, $7.0 million FY15, $10.5 million FY16-FY18. Forecast assumes $16 million of continued aggressive fiscal management to gain efficiencies per year in FY15-18. Forecast assumes an annual 6% annual increase in charter enrollment in FY15- 18.

7. Cleveland Municipal School District 7 General Fund Revenues

8. Cleveland Municipal School District FY 2013-2014 8

9. Cleveland Municipal School District Local Taxes – Property Tax Revenue 9

10. Cleveland Municipal School District Property Taxes – Current Collection Rate 10 Current Collection Rate Year

11. Cleveland Municipal School District Property Taxes – Total Collection Rate 11 Current Collection Rate Year 89.3%

12. Cleveland Municipal School District State Foundation Revenue 12 Revenue (In Millions) Fiscal Year

13. Cleveland Municipal School District State Foundation Revenue – Excluding Charter School Portion 13 Revenue (In Millions) Fiscal Year

14. Cleveland Municipal School District Education Jobs 14

15. Cleveland Municipal School District Property Tax Allocation – State Hold Harmless Reimbursements 15

16. Cleveland Municipal School District Other Revenue 16 Revenue (In Millions)

17. General Fund Revenue 17 *Projected – Excluding Advances

18. Cleveland Municipal School District 18 General Fund Expenditures

19. Cleveland Municipal School District Where the Money Goes 19

20. Cleveland Municipal School District Salaries 20

21. Cleveland Municipal School District Fringe Benefits 21

22. Cleveland Municipal School District Purchased Services 22 Expenditures (In Millions)

23. Cleveland Municipal School District Supplies, Textbooks, Equipment, and Other Expenditures 23

24. General Fund Expenditures 24 *Projected – Excluding Advances

25. Cleveland Municipal School District 25 Five-Year Forecast Summary

26. Cleveland Municipal School District May 2014 Five-Year Forecast (in millions of dollars) 26

27. QUESTIONS 27 Cleveland Municipal School District Five-Year Financial Forecast – May 2014