Apple Community School District Budgets For All Funds December 10, 2014

Transcription

1 Apple Community School District Budgets For All Funds December 10, 2014

2 Presented by... Michelle Chase Laurie Doner Stasi Mortimore Lena Nemeth Julie Zemnickas

3 District Overview Located in the metropolitan Detroit suburbs Draws students from four different communities Diverse community Over 40 languages spoken 28% of students qualify for free or reduced lunch 23% of the students participate in Schools of Choice

4 District Overview District is comprised of: Five Elementary Schools Two Middle Schools One High School Four schools are designated Focus Schools All schools are making Adequate Yearly Progress (AYP)

5 Overview of Presentation 1. District Overview 2. Current Financial Budget for Projected Changes for School Year 4. Proposed Reductions for School Year 5. Further Recommendations

6 District Overview Strengths Highly qualified staff with over 80% holding Master s degrees or higher Enrichment and Support programs for students Student achievement above the state average Challenges Declining student enrollment Decreased per pupil funding from the state Raising insurance costs Challenges

7 Budget Development Process Support the Strategic Plan Stakeholder Input Online Survey Public Forums Proactive, Data-Driven, Model Examine Budget Best Practices Forecast Future Budgets

8 Financial Budget for Revenues: Local Sources Non-Homestead Millage Hold Harmless Other Local Revenues Total Local Sources: Proposed $7,222,861 $5,882,098 $3,186,641 $16,291, Projected $7,222,861 $5,882,098 $3,186,641 $16,291,600

9 Millage Rates Supporting General Fund Change Operating Non-Homestead Operating Homestead (Hold Harmless)

10 Revenue: State Sources Proposed Projected State Sources: *Foundation Allowance - Net of Taxes Other State Grants & Aid Total State Sources: $36,991,007 $ 7,497,593 $ 44,488,600 $34,913,347 $ 7,497,593 $ 42,410,940 Federal Sources: Title I Other Federal Programs Total Federal Sources: $ 879,800 $ 999,343 $ 1,879,143 $ 879,800 $ 999,343 $ 1,879,143 *Foundation Allowance: $8726 per pupil for

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12 Revenue Assumptions Pupil Count: Projected Decrease $60 per pupil Actual Projected Actual , , Actual ,

13 Financial Budget for EXPENDITURES: INSTRUCTION Basic Programs (classroom instruction) 39,473,792.00

14 Financial Budget for EXPENDITURES: Supporting Services Pupil Services (Counseling, Library/Media, ESL/Bilingual, Summer School.) 3,086, General Administration (Board of Ed and Superintendent) 700, School Administration (Principals and Asst. Principals) 4,240, Central Services (Fiscal Services) 784, Personnel Services (Human Resources) 522, Technology 1,197, Operations and Maintenance 2,320, Transportation (K-12) 3,986, Community Services 158, Athletics 1,041,120.00

15 Financial Budget for EXPENDITURES:

16 General Fund Budget Calculation General Fund Beginning Fund Balance ,585,815 Revenues 62,659, Expenditures 57,511, Operating Surplus (Deficit) Ending Fund Balance Ending Fund Balance as % of Expenditures -102,762 5,147, %

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18 Assumptions for School Year Decrease of 200 students to district with new enrollment of 5,541 students. Fund Allowance reduced by $60 per pupil with adjusted FTE at $8,666 Increase of 4% to staff insurance

19 Revenue Budget Assumptions Pupil Count Net Change Projection 5, , (200) Foundation Net Change Projection 8, , ($60) per pupil Insurance Net Change Projection 6,667, ,933, % increase

20 Impact of Assumptions to Budget To maintain current fund balance, $2,344, in budget reductions will be required.

21 Discussion of Budget Adjustment Ideas Stakeholders across the district were brought together to rank order proposed budget cuts according to their direct impact on students and the feasibility of implementation.

22 Description of Budget Reduction Items Privatize Fiscal Services Privatize Human Resource Services Privatize Busing Competitive Insurance Bidding Pay and Step Freezes Staff Reductions as Enrollment Allows (6.0 Elementary, 2.0 Middle School) Increase Pay to Participate Program from $300 to $450 Reduce School Social Worker Services (2.0 positions) Eliminate High School Security Services Raise High School Parking Fee from $35 to $60 Reduce Elementary Media Services (2.5 positions) Reduce Secondary Media Services (2.0 posititions) Extend Elementary Walk Areas Extend Secondary Walk Areas Elementary and Secondary Start and End 15 Minutes Later Each Day Eliminate All School Transportation

23 Proposed Reductions for School Year 1. Privatize Central Services a. Human Resources b. Fiscal Services 2. Privatize Transportation 3. Initiate Competitive Bidding for Insurance 4. Freeze Wages and Step Increases for 1 Year 5. Staff Reductions as Enrollment Allows (6.0 Elementary, 2.0 Middle School)

24 Cost Cutting Measure: Privatize Central Services (Human and Fiscal Resources) For public school districts, as with any venture, fiscal responsibility starts at the top. This means controlling administration costs in Michigan s public schools, particularly since expenditures on administration have risen faster than other budgetary areas (Johnson and Moser, 2002, p. 7).

25 Before and After Cuts to Human Resources *Outsourcing to Public Strategies Group (PSG)

26 Before and After Cuts to Human Resources $447,033

27 Before and After Cuts to Fiscal Services

28 Before and After Cuts to Fiscal Services $70,000

29 Cost Cutting Measure: Privatize Busing One of the most straightforward ways school districts can save money or improve services is to evaluate how they can provide non-instructional services...if private companies could provide these noninstructional school services better and/or cheaper than the school district itself, there is little reason for the district to continue providing these services. (Johnson and Moser, 2002, p. 8)

30 Before and After Cuts to Transportation

31 Before and After Cuts to Transportation $1,139,344

32 Cost Cutting Measure: Open Up Insurance to Competitive Bidding If competitive bidding were implemented, there certainly would be cost savings. Districts that have switched from MESSA to other insurance carriers have saved from 6 percent to 28 percent on the cost of providing identical coverage to their employees, which has translated to savings of as much as $500,000 per year. (Johnson and Moser, 2002, p. 12)

33 Projected Savings from Insurance Bidding The district spent $6,567,654 on employee health insurance last year Johnson and Moser (2002) estimate savings between 6% and 28% We will initiate competitive bidding in order to reduce costs by a minimum of 4% $262,706.16

34 Cost Cutting Measure: Wage & Step Freeze Wages 62, Retirement 20, Health Insurance 10, FICA 4, Dental 1, Total (1 FTE) 100,000.00

35 Cost Cutting Measure: Reduce Staffing School FTE Savings McIntosh Elementary 2 200,000 Fuji Elementary 1 100,000 Honeycrisp Elementary 1 100,000 Gala Elementary 1 100,000 Braeburn Elementary 1 100,000 Red Delicious Middle School 1 100,000 Pink Lady Middle School 1 100, ,000 $800,000

36 Summary of Cost Cutting Recommendations Description Value Running Total 1 Eliminate 8 Teaching Positions $800,000 $800,000 2 Privatize Fiscal Services $70,000 $870,000 3 Privatize Human Resource Services $447,033 $1,317,033 4 Privatize Transportation and Restructure Routes $1,139,344 $2,795,721 5 Competitive Insurance Bidding $262,706 $3,058,427

37 Taking into account these recommendations... $714, will be added as surplus to the district increasing the Fund Balance to 9.4%.

38 Further Recommendations Expenditure Reduction Monitor effectiveness of programs and services and consider alternatives Form an Elementary School Closing Committee to determine which elementary school to close Negotiate with local unions to establish compensation adjustments linked to revenue. Wage reopener Salary increase tied to fund balance / enrollment Off-schedule steps Adjusted steps Reduce central and administrative staff

39 Further Recommendations Establish a taskforce to consider the options for, and implications of, revenue generating programs and policy. Obtain the services of a marketing firm Explore establishing an online school and/or specialty schools Collaborate with the homeschooling community Rent facilities

40 Questions Apple Community School District Business Office - (888) Michelle Chase - MChase@AppleSchools.edu Laurie Doner - LDoner@AppleSchools.edu Stasi Mortimore - SMortimore@AppleSchools.edu Lena Nemeth - LNemeth@AppleSchools.edu Julie Zemnickas - JZemnickas@AppleSchools.edu