1. FIVE YEAR FINANCIAL FORECAST OCTOBER 2013 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: Forecast assumes that the property tax collection rate will remain at same level as 2013. 1% change represents $2.4 million. On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning January 2013. Forecast includes new levy. Assumes levy will expire December 31, 2016. State funding– New state funding formula. Cleveland is on the guarantee for FY14 and FY15. Assumes FY14 and FY15 will be same as FY13. FY14 includes $6.0 million from Straight-A fund.

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% in FY14 - FY18. Forecast assumes all union agreements as currently defined. Forecast assumes a $3.2 textbook budget for all fiscal years. FY14FY15FY16FY17FY18 G F5,0594,9504,8454,8484,856

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. $6.0 million for Straight “A” Fund - FY14. 9 Transformation schools were piloted for autonomy-FY14. Forecast assumes $16 million of budgetary savings per year in FY14-18 Forecast assumes $7,335 per student for charter schools in FY14 – 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

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

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

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

26. Cleveland Municipal School District October 2013 Five-Year Forecast (in millions of dollars) 26

27. Future – Key Items that will affect budget 27 CMSD enrollment Charter enrollment Property tax collections State Funding - next bi-annual budget Staffing levels Differentiated compensation impact Health Care

28. QUESTIONS 28 Cleveland Municipal School District Five-Year Financial Forecast – October 2013