Daniel Romzek Assistant Superintendent for Business Affairs

Transcription

1 Daniel Romzek Assistant Superintendent for Business Affairs

2 Develop a budget recommendation for the 2014/2015 fiscal year that contains a balanced and equitable spending plan that is sustainable and promotes growth, That minimizes impact on student programs, uses a team-based approach, AND provides ongoing communication to promote transparency and openness.

3 State of Michigan Consensus Revenue Estimates January 10, 2014 FY 2013/2014 FY 2014/2015 Total $ Chg % Chg Total $ Chg % Chg School Aid Fund (SAF) $11,560.0 $ % $11,931.8 $ % General Fund/General Purpose (GFGP) $9,572.5 $ % $10,046.5 $ % Total Revenue $21,132.5 $ % $21,978.3 $ % FY 2015/2016 Total $ Chg % Chg School Aid Fund (SAF) $12,338.2 $ % General Fund/General Purpose (GFGP) $10,535.6 $ % Total Revenue $22,873.8 $ % Source: Consensus Revenue Agreement Executive Summary, 1/10/14 January 2014 Consensus Revenue Estimates show modest SAF and GFGP revenue growth over the next two years.

4 2012/ / /2015 Final Amended Projected Budget Actual Budget Adjustments Projection Revenue $154,419,992 $157,411,469 $3,201,332 $160,612,801 Expenditures $159,596,424 $158,404,278 $2,481,388 $160,885,666 Surplus (Deficit) ($5,176,432) ($992,809) $719,944 ($272,865) Beginning Fund Balance $21,434,439 $16,258,007 $16,057,219 Estimated 0.5% Favorable Budget Variance $792,021 $804,428 Estimated Ending Fund Balance $16,258,007 $16,057,219 $16,588,782 Fund Balance as a % of Budgeted Expenditures 10.2% 10.1% 10.3%

5

6 Millions $175 $165 $155 $145 $135 $125 $115 $105 $95 Revenue Expenditures

7 25.0% 22.5% 20.0% 21.1% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% 13.2% 10.2% 10.1% 10.3%

8 $8,500 $8,250 $8,000 $7,750 $207 $484 $577 $8,017 $7,500 $7,250 $7,878 $7,922 $7,000 $6,750 $6,500 State Aid Per Student One Time Funding

9 ,500 15,000 14,500 15,090 15,136 14,000 13,500 Projected 13,000 12,500 District enrollment projections for 2014/15 show a 46 student enrollment increase.

10 Increase in foundation between $83 and $111 per student using 2X formula. RCS would see a $95 per student increase. $44 per student for RCS in 2013/2014. Continuation of $5 per student hold harmless funding. Provided in 2013/2014 due to drop in MPSERS funding from 2012/2013. Continuation of Performance Grant Funds of up to $100 per student. RCS would see $70 per student in 2014/2015. $70 per student for RCS in 2013/2014.

11 Continuation of $52 per student Best Practice Funds. Must meet 7 of 8 best practices No change in best practice criteria from 2013/2014. $52 per student for RCS in 2012/2013. Repurpose 147a MPSERS funds to offset MPSERS rate by 1.20 percentage points. Rate is expected to increase by 0.99 percentage points in 2014/2015. Net decrease in rate of 0.21 percentage points. Estimated blended MPSERS rate of 23.90% for RCS.

12 Additional $379 million allocated to fund MPSERS unfunded liability. These are pass-through funds for RCS. Increases estimated per student allocation from $281 to $450 per student. Section 31A allocation remains unchanged at $309 million but repurposes funds to expand uses Specific focus on 3 rd Grade reading proficiency and career/college readiness for high school graduates. Deletes some uses and allows a district to use funds for schoolwide school improvement activities for schools with 40% or more at-risk students. Additional $65 million funding statewide for Great Start Readiness Program (GSRP). Increased per student funding $100 to $3,725. Expanded number of slots for preschool program.

13 PA 300 of 2012 was designed to stabilize the MPSERS rate for FY2013 and thereafter through restructured pension system.

14 Consistent funding for Categorical Grants. 31a At-Risk Grants CTE Grants Adult Education Grants No allocation for costs associated with settling open labor agreements Teachers, Secretaries, Para-Educators, Administrators. These will be incorporated into the budget upon settlement. Estimated 3% increase in medical plan costs. Estimated cost savings from hiring differential resulting from 10 teacher retirements and resignations. Contractual 2% cost increase in transportation contract with Durham. Estimated 2% increase in utility and fuel costs.

15 Over $35 million in revenue enhancements, efficiency measures, budget reductions and labor concessions since Contracting for services has provided cost containment and future savings. Health care plan changes and cost containmenthave provided savings. Recent retirement reforms have stabilized the district s contribution to the MPSERS fund. Steady enrollment growth. We must continue to focus on initiatives to preserve core K-12 instructional programs.

16 Governor s budget proposal will need to work its way through the legislative process. Actual student enrollment. Outcome of contract negotiations with several employee groups (Teachers, Clerical, Para-Educators, Administrators) Staffing changes. Outcome of additional staffing and operational efficiencies. We are committed to providing a 2014/2015 spending plan that falls within the available revenue resources. Budget must be adopted by June 30, 2014, in accordance with Michigan law.

17 2/04/14 Governor s Budget Presentation 2/24/14 Presentation of 2014/2015 budget projections to Board of Education. 3/03/14 Budget podcast to staff and community. 4/14/14 Superintendent Budget Report and Update on Budget Projections and related public input. 5/12/14 Presentation and discussion of Preliminary Budget Recommendation and related public input. 5/26/14 Final Budget Recommendation to Board of Education. 6/23/14 Official Public Budget Hearing and adoption of the 2014/2015 budget. Ongoing Budget podcasts to staff and community

18

19 Rochester Community Schools Budget Projections February 24, 2014 Prediction - Gov Budget 2014/2015 Budget Line Budget Assumptions Factor Amount 1 Previous Year Budget Surplus/(Shortfall) ($992,809) Revenue Changes: 2 Change in One-Time 20f Hold Harmless Payment $0 $0 3 Change in One-Time 22f Best Practice Funding $0 $0 4 Change in One-Time 22j Performance Grant Funding $0 $0 5 Change in One-Time 147a MPSERS Funding ($76) ($1,146,840) 6 Change in One-Time 147c MPSERS Pass-Through Funding $169 $2,550,210 7 Change in Foundation Allowance $95 $1,433,550 8 Fall Enrollment Changes (from Fall 2013 to Fall 2014) +46 Students $364,412 9 Change in PA18 Special Ed Millage from Oakland Schools $0 Expenditure Changes: 10 Additional Costs for Settled Contracts (Blue Group) ($25,000) 11 Costs Associated with Settling Open Employee Contracts $0 12 Retirement Rate Increase (24.11% Blended in 13/14) +1.0% Points ($830,100) Retirement Rate Decrease due to Blending of 147a MPSERS 13 Funding against MPSERS Rate ($76 per student) -1.2% Points $996,120 Additional Retirement Costs for MPSERS 147c Pass-Through Funds ($2,550,210) Increase in Medical Insurance Plan Costs 3.0% ($387,034) 16 Teacher Hire Differential Due to Retirements & Resignations 10.0 FTE $500, Staffing Changes?? FTE TBD 18 Transportation Service Contract Changes 2.0% ($105,164) 19 Utility and Fuel Cost Changes 2.0% ($80,000) 20 $0 21 Projected Budget Surplus/(Shortfall) ($272,865) Projections Budget 2/18/2014, 3:47 PM