Madison Local Schools Renewal Emergency Levy November 4, Issue 1

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1 Madison Local Schools Renewal Emergency Levy November 4, 2014 Issue 1

2 Why is the RENEWAL of this levy important? This levy is important because of the reductions in revenue over the last seven years.

3 Revenue and Expenses History of Operating Revenue and Expenses Includes General Fund, Joint Financing District, Education Jobs Fund and Stimulus Funds $30,000, $29,000, $28,000, $27,000, $26,000, Revenue Expenses $25,000, $24,000, $23,000, FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Est. The slide shows that the revenue peaked in FY2008 at about $29.5million dollars. The expenses peaked two years later. Revenue and expenses are down $3 million dollars from prior years.

4 Decrease in State Funding Madison Local Schools State Funding FY2007 Through FY2015 Includes State Aid and State Fiscal Stabilization Funds $15,000, $14,500, $14,390, $14,428, $14,375, $14,276, $14,000, $14,062, $13,500, $13,354, $13,123, $13,204, $13,200, $13,000, $12,500, $12,000, FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Est. State funding is $1.4 million less than in 2008.

5 Personal Property Tax Reimbursement $800,000 $700,000 $600,000 $ 618,018 $618,018 $ 657,849 $657,849 $ 691,990 $ 691,990 $500,000 $400,000 $300,000 $200,000 $188,274 $366,348 $284,937 $203,527 $122,116 Previous Reimbursement Revised Reimbursement $100,000 $0 $40,705 $0 $ 0 $ 0 $ 0 $ 0 $ This is an example of a funding cut. The state eliminated the personal property tax for businesses. There was supposed to be a reimbursement to the districts. The state decided to phase out the reimbursement by 2018 and then decided, withoutwarning, to eliminate the reimbursement five years sooner.

6 Last New Money for Operations 1990 Joint Financing District Approved at 4.9 mills Now collecting at 2.47 mills 24 years ago 1989 Emergency Levy Approved at 4.9 mills Now collecting at 1.96 mills 25 years ago

7 This graph shows that in 1989 when this levy was originally passed, the schools could buy $697,270 worth of goods and services with the funds generated bythe levy. Because of inflation, it would take $1,338,483 to purchase the same goods or services.

8 However, the levy continues to generate the same $697,270 per year.

9 What have we done to balance the budget?

10 Budget Cuts Over the Last Five Years Staff Cuts

11 Staff Cuts in the Last 5 Years Teachers 44.0 Non-teachers 37.5 Total staff cuts 81.5

12 Budget Cuts Over the Last Five Years Cut 81.5 staff members No base salary increases in four of the last five years Employee contributions for health insurance increased Lower than industry health care costs Member of Lake County Schools Health Care Consortium

13 Lake County Schools Heath Care Consortium 8 Lake County School Districts 1 Cuyahoga County School District 1 Geauga County School District Lake County Educational Service Center Lakeland Community College Group purchase health and life insurance Favorable rate increases

14 Lake County Schools Council Renewal Rates vs National Trends 14.0% 12.0% 10.0% 12.0% 12.0% 12.0% 11.0% 11.1% 11.0% 8.0% 8.8% 7.9% Medical LCSC 6.0% Medical National 4.0% 4.3% 2.0% 0.0% 0.8% 0.0% 0.0% FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 This graph shows the benefit of being a member of the consortium. The annual increases for health insurance have been far below the national average. This allows the district to not have to spend as much money on health insurance each year when compared to the national average.

15 Other Consortiums Ohio Schools Council: 196 Members Natural Gas Power4Schools (electricity) Buses Supplies

16 Other Consortiums Ohio Cooperative Purchasing State pricing on copiers Ohio School Board Association Workers Compensation Group Rating

17 Effects of Budget Cuts Over the Last Five Years Expenses are $500,000 lower than in 2006 NINE years ago

18 Ohio Department of Education (ODE) Expenditures Per Pupil (EPP) Unweighted Lake County Schools FY2013 Expenditures Per Pupil $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- $13,144 $12,309 $12,074 $11,825 $11,660 $10,446 $10,078 $8,717 $8,557 $8,480 Perry Mentor Wickliffe Willo-Eastlake Kirtland Statewide Average Painesville City MADISON Fairport Riverside

19 Change in Estimated Expenses $29,000,000 $28,500,000 $28,000,000 $27,500,000 $27,000,000 FY2012 $26,500,000 $26,000,000 $25,500,000 $25,000,000 FY2013 FY2014 FY2015 FY2016 This graph shows what was being projected for expenses in 2012, before the budget cuts.

20 Change in Estimated Expenses $29,000,000 $28,000,000 $27,000,000 $26,000,000 $25,000,000 FY2012 FY2015 $24,000,000 $23,000,000 $22,000,000 FY2013 FY2014 FY2015 FY2016 This graph shows what the expenses are now because of the budgetcuts.

21 Projected Ending Fund Balances $- FY2013 FY2014 FY2015 FY2016 $(2,000,000) $(4,000,000) $(6,000,000) FY2012 $(8,000,000) $(10,000,000) $(12,000,000) This was the projected ending balance prior to the budget cuts.

22 Projected Ending Fund Balances $2,000,000 $- $(2,000,000) FY2013 FY2014 FY2015 FY2016 $(4,000,000) $(6,000,000) FY2012 FY2015 $(8,000,000) $(10,000,000) $(12,000,000) The red line is the current expected balance.

23 Projected Ending Balances 1,000,000 - (1,000,000) FY2015 FY2016 FY2017 FY2018 FY2019 (2,000,000) (3,000,000) (4,000,000) (5,000,000) Ending Balance with Levy Renewal Ending Balance without Levy Renewal (6,000,000) (7,000,000) (8,000,000) (9,000,000)

24 Issue 1 Emergency Levy Renewal 1.96 mills $60.03 per year per $100,000 in valuation NOT a tax increase Maintains the current programs NO NEW TAXES

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