ST.FRANCIS AREA SCHOOLS FINANCIAL FORUM SCHOOL / FISCAL YEAR

Transcription

1 ST. FRANCIS AREA SCHOOLS 6:00 8:00 P.M. TOPIC: Planning for School / Fiscal Year AGENDA 1. Welcome and Forum Procedures Superintendent Troy Ferguson a. Questions / Comments Card b. Speaking at the Forum 2. District Financial Overview Bernice Humnick, Business Director a. Sources of General Fund Revenue b. Distribution of General Fund Expenditures > By Object Category c. Current General Fund Fund Balance Financial Projections Bernice Humnick, Business Director a. Budget Timeline b. Declining Enrollment History c. Enrollment Projections and Budget Impact d. Reasons for Estimated General Fund Budget Deficit 4. Timeline for Staffing - Brandon Nelson, Human Resource Director 5. Questions and Comments - Superintendent Troy Ferguson

2 17-18 BUDGETED GENERAL FUND REVENUE $50,723,616 Federal Sources, 1,485,094, 3% State Sources, 42,237,950, 83% Other, 1,664,446, 3% Property Taxes, 5,336,126, 11% January 29,2017

3 EXPENDITURES BY OBJECT CODE $51,196, Budgeted General Fund Expense Supplies, 2,391,440, 5% Purchased Services, 4,031,769, 8% Capital Expenses, 1,915,961, 4% Other Expenses, 332,508, 0% Benefits, 9,090,094, 18% Salaries & Wages, 33,434,599, 65% Salaries & Wages Benefits Purchased Services Supplies Capital Expenses Other Expenses

4 SCHOOL / FISCAL YEAR CAUSES The need for adjustments is caused by a number of factors, including: Reduced revenues caused by declining enrollment Increased expenses due to inflation Special Education lack of full funding Uncertainty of 3 rd Party Billing funding Projected reductions in federal funding Limited increases in state funding, not keeping pace with inflation

5 REASONS FOR BUDGET ADJUSTMENTS REASONS FOR BUDGET ADJUSTMENTS Utilities, Contracted Services, Repairs 3.25% $120,719 Non Sal/Ben Expense Budget Est. Increases Increase Revenue-Reductions including Federal $161,635 Revenue Reduction Revenue (due to funding uncertainties), Interest and Miscellaneous Revenue changes Contracts Contract Salary Settlements $752,278 Other Costs Fuels, Waste, Recycling, WC Insurance $57,770 Revenue Decrease Due to Less Pupils Correct Deficit Spending Pattern & Account for $1,859,806 Revenue Changes Due to Current & Past Enrollment Changes (offset 5 years of declining enrollment changes) Anticipated Enrollment Change for $725,728 OTHER NOTED ASSUMPTIONS General Education Funding Supplies / Material Budgets ALC ADM 2% included Based on Site ADM Will not effect Operational Funds (Restricted) TOTAL NEEDED $3,677,936

6 16-17 FUND BALANCES ASSIGNED (District) RESERVED (State Mandated) UNASSIGNED Assigned for Subsequent Year Budget $472,755 TOTAL ASSIGNED $472,755 HEALTH & SAFETY $ 82,087 OPERATING CAPITAL $ 53,138 NONSPENDABLE ** $170,851 TOTAL RESERVED $ 306,076 $630,259 ** Inventory and Prepaid Expenses $1,409,090 TOTAL FUND BALANCE

7 16-17 GENERAL FUND UNASSIGNED FUND BALANCE $630,259.39, (estimated 3.13 days of funding) St. Francis Area Schools 630, Total General Fund Expenses Unassigned Fund Balance 52,302,841.50

8 BUDGET TIMELINE DATE SEPTEMBER RESPONSIBLE REQUIRED ON/BY > Finalize Levy data to MDE Business Director 9/1 > Submit Unaudited UFARS data to MDE Business Director 9/15 > Certify Preliminary Levy to MDE and County Board 2nd bd mtg OCTOBER > Begin Audit for Prior Year (PY) Business Director 10/7 > Calculation on ENPRO for pupil unit estimates Business Director 10/7 > ENPRO review with Cabinet Business Director 10/8 > ENPRO review with Education Cabinet Business Director 10/15 > Develop Budget assumptions Cabinet 10/22 > Review budget assumptions with Ed Cabinet Cabinet 10/25 > Finalize Audit with Fund Balances known Business Director 10/31 NOVEMBER > Election Business Director 11/4 > Cabinet review final budget assumptions Cabinet 11/12 > Input assumptions into Financial Planning Model (FPM) Business Director 11/15 > Review FPM with District Leadership Team Business Director 11/20 > PY Audit presentation to the Board for approval (Date TBD) Auditor 2nd bd mtg > County Auditor delivers Proposed Tax Statements County Auditor 11/24 > FY Final Financial Data to MDE Business Director 11/30 > Build Capital Projects list and prioritize Princ. B&G, BGT Mgrs 11/30 DECEMBER > Truth-in-Taxation Hearing Business Dir. / Supt. 12/8 > Approve Final Levy Board 1st bd mtg > Finalize FPM parameters and calculations Business Director 12/15 > Capital Projects Committee meet to prioritize cap. Needs Business Director 12/15 > Final PY Audit Report to all State and Fed Agencies Business Director 12/31 > Review Budgets for budget revision needs Business Director 12/31, Please note-dates listed are for guidance purposes, actual dates may vary

9 BUDGET TIMELINE DATE JANUARY RESPONSIBLE REQUIRED ON/BY > Final review of the budget projections Cabinet 1/7 > Budget Development Plan established Cabinet 1/7 > Review Budget Development Plan with DLT Business Director 1/10 > Budget revision to School Board for approval Business Director 2nd bd mtg > Present Budget Development Plan to School Board Business Director 2nd bd mtg > Budget Adjust Development Plan process determined Cabinet 1/31 > Capital Projects Committee continue 5 YR Planning Business Director 1/31 FEBRUARY > Budget Adjust Development Plan presented to DLT Cabinet 2/10 > Staffing Discussions with Principals Cabinet 2/10 > Present Forum Recommendations to Board Superintendent 2/10 > Budget Adjust Development Plan finalized Cabinet 2/15 > Capital Projects Committee finalizes 5 YR Plan Business Director 2/15 > Prelim. Budget report presented to the School Board Business Director 2nd bd mtg MARCH > Calculate site allocations Business Director 3/1 > Notify budget managers of purchasing cut off date Business Director 3/1 > Staffing Plan Complete Cabinet 3/15 > Process Budget development materials to all bgt mgrs Business Director 3/15 > Meet with budget managers on any questions Business Director 3/30 APRIL > Purchasing cutoff date All Bgt Mgrs 4/1 > Personnel changes notification finalized HR 4/15 > Food/Comm. Services Prelim budgets to School Board Business Director 1st bd mtg > Updated GF/FS/CE Preliminary Budgets to School Board Business Director 2nd bd mtg > Budget Managers distributions to Business Director Bgt Mgrs 4/30 MAY > Begin Purchasing process of next year budget Business Director 5/1 > Continue to adjust Budget plan as needed from all sources Business Director 5/31 JUNE > Continue adjusting budget as necessary Business Director 6/15 > Present complete Budget to School Board for approval Business Director 2nd Bd Mtg Please note that dates listed are for general guidance purposes and may be subject to change

10 Kindergarten and 12 th Grade

11 4,981 4,850 4,708 4,568 4,489 4,467 4,294 4,226 4,093 3,992 3,941 3,906 ST.FRANCIS AREA SCHOOLS PROJECTED ENROLLMENT AND DECLINING IMPACT

12 PROJECTED ENROLLMENT AND DECLINING IMPACT 10 YEAR ENROLLMENT CHANGE OF 1,136 6, , , , , , , , , , , , , , , ,

13 18-19 Enrollment Assumptions

14 SCHOOL / FISCAL YEAR

15 SCHOOL / FISCAL YEAR

16 SCHOOL / FISCAL YEAR

17 SCHOOL / FISCAL YEAR

18 18-19 Budget Projection & Projected Unassigned General Fund Balance DESCRIPTION Projected Fund Balance Based on Updated Enrollment ASSUMPTIONS -393, REVENUE 49,686, EXPENDITURE 48,675, SPENDING VARIANCE 1,011, PROJECTED FUND BALANCE 617, PROJECTED FUND BALANCE PERCENTAGE 1.27%

19 SCHOOL / FISCAL YEAR FUND BALANCE PURPOSE School districts maintain fund balances for financial stability and to protect programs that are needed to serve children at times when revenues are uncertain. School districts depend heavily on state aid, and, unfortunately, state aid is sometimes an unstable revenue source. School districts need fund balances for cash flow. Fund balances have an effect on school districts bond ratings.

20 SCHOOL / FISCAL YEAR FUND BALANCE The goal is to bring the unassigned fund balance to 5%. This is the first step in a multi-year plan. The right sizing budget adjustment of $3.7 million is projected to increase the fund balance to 1.27%. Other items currently under review: Program needs Enrollment retention plan Review of building and land use and needs Allocating resources based on student enrollment Focus priorities on Strategic Plan

21 Budget challenges Low state funding Complicated funding formulas Some variables are difficult to predict, for example enrollment Responsibility to taxpayers to manage resources well Balanced budgets align with strategic plan Annual budget process Forecast Recommendation to School Board Input/feedback gathered Refine recommendation School Board action on recommendation Transparency Consistent process from year to year Communication with stakeholders Opportunities for input and feedback Welcome questions

22 QUESTIONS AND COMMENTS Superintendent Ferguson THANK YOU FOR ATTENDING