2013-14 Budget Draft #1
Table of Contents Executive Summary...3 Budget Assumptions...5 Significant Changes...7 Revenue Graph...8 Expense Graph...9 Tax Levy Projections...10 Tax Levy Rate History...11 Budget Summary...12 Appendices District Facts...17 Budget Process...19 Budget Timeline...20 Long Term Debt and Fund Balance...21 Long Term Debt Schedule...23 FPS Response to Change...2 Fund Explanation...2 Budget Categories...2 Budget Detail...3 Budget Percentages...4 Instructional Services...4 Information & Technology...4 Pupil Services...4 Human Resources...4 Business Services...4 Buildings and Grounds...4 2
2013-14 Executive Summary As we begin the budget process each year we give careful consideration to educational programs, new initiatives, facility management, staffing, fiscal concerns, district priorities, and community expectations. These key factors result in the formulation of the budget and allow the Franklin Public School District to continue it s performance and recognition as an outstanding school district. We are dedicated to being fiscally responsible by reviewing and evaluating our operations and practices each year for accountability, efficiency and effectiveness. Our budget history will support our fiscal accountability and we strive each year to balance the needs of the district with the expectations of our community and taxpayers. For 2013-14 we also gave significant consideration to the impact of a successful referendum, which is allowing our School District and Community to address identified needs at Franklin High School. This years levy increase is due in part to our community supporting the referendum and allowing the District to expend the necessary funds in order to enhance the educational programs of our school district. From an instructional perspective we continue to offer a World Class educational program for all of our students. We are a research-based district, meaning that we take a calculating and laborious approach to improving curriculum and instruction at all levels. As the world changes and the expectations for our students, particularly graduates, increase, we must meet the demands and expectations of those who will eventually be the employers of Franklin students. We have made significant strides in building community partnerships and involving our students and staff in arrangements with these partners that create opportunities for everyone. Our Tech. Ed. Programs, along with highly rigorous academic standards, assist in preparing our students for 21 st Century Learning as well as College and Career readiness. As we continue on our path of academic excellence, we realize the importance of, and commitment required related to technology integration throughout all of our schools. We continue to train and develop all staff in expanding their individual expertise in the use of technology, and more importantly in their application and integration of technology in to the classroom. Each year we dedicate substantial funds to ensure that our district is on the leading edge of technology use and application. We are currently in the midst of developing a 1:1 initiative that will allow all of our students to have access to the most current and relevant technology tools for use in the classroom. Additionally, our new construction project at the high school is heavily influenced by 21 st Century Learning philosophies and requires us to provide an infrastructure and environment conducive to meeting student needs and the skill base necessary to be ready for post secondary studies or a possible career choice. In the area of district operations, our physical structures are continuously evaluated to ensure that we maintain, at a high level, those areas such as roofs, parking lots, heating and ventilation systems, and overall building integrity. We have an ever changing 5 year facility plan that is adjusted frequently to meet the necessary needs that may arise. 3
Overall, our buildings and infrastructure are in very good condition as a result of continuous monitoring and attention to repairs whenever necessary. With the additions and renovations at the high school commencing this month (June), we were able to thoroughly evaluate the existing facility and make upgrades wherever they were required. At the completion of the referendum project the high school facility will have an outstanding learning environment for students and staff, as well as a place for our community to enjoy the many co-curricular programs that our students and community members may be involved in. The Franklin Public School District is a growing district and we recognize that we must continually meet the needs and expectations of our students, staff, and community. As mentioned, balancing the needs of the school district, a long with those of the residents of our district, is a difficult process. Our community has certainly demonstrated it s support for our school district by passing the latest referendum request. That kind of community support lends itself to our continued efforts to be a World Class school system. The 2013-14 budget reflects the needs and priorities that need to be addressed, which include the continued development of our educational programs and the operational priorities that exist throughout the school district. Dr. Steve Patz Superintendent Franklin Public Schools 4
2013-14 Budget Assumptions At this time of year, most of the factors that affect the budget have to be estimated because it is too early to have the actual information. Listed below are the important factors that drive the budget and the types of estimates that we are using. Enrollment Enrollment is important because it is the main factor in the revenue limit calculation. For budget revenue purposes we are estimating resident enrollment to increase by 20 students for next year. It is estimated that the open enrollment student population will increase by about 40 students. CPI The consumer price index for all urban consumers (CPI-U) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. In other words it is a measure of the amount of money it takes to buy the same products due to changes in the cost of those products. State legislation has linked employee raises and the CPI-U. The CPI-U that applies to employee contracts starting in July 2013, is an increase of 2.07%. State Aid and Revenue Limit State equalization aid is forecast to increase by about $1.8 million (14.0%). The decrease in equalized value last year makes the District appear poorer in the state formula and should result in more state aid. The state budget is not final, but it appears that the revenue limit will increase by $150 per student or 1.4%. This will increase the amount of revenue under the revenue limit by about $590,000. Transportation The District created a consortium of the neighboring school districts for the purpose of controlling transportation costs. The consortium has done just that with the latest contract that we negotiated which contains a 0% increase in rates for the four years 2012-2016. Number of Retirees We will have 10 teachers retiring at the end of this year, which is about average. Salaries The District has begun negotiations with represented groups regarding wages. Due to the nature of negotiations, the anticipated percentage increase in this category is not listed. It should be noted that most employees have taken a 7% to 11% cut in net pay due to the provisions of Act 10 related to retirement payments and the increased health insurance premium contributions. 5
Benefits The District bid out health and dental insurance for 2012-13 and accepted a bid from Humana, which decreased health insurance rates by 10.22% or approximately $775,000 for the year. The dental insurance bid came in at no increase from the previous year. The health and dental insurance rates were guaranteed to stay the same for 18 months which will end January 1, 2014. The District will be bidding the health and dental insurance again this fall. Fund Balance The District will continue to maintain a fund balance that allows for the payment of operating expenses without the need to borrow funds. In the 2013-14 budget the District will be using $1,150,000 of fund balance to add restrooms and a more functional concession stand at the high school football field. Thousands of residents attend outdoor events at the high school and the District has received voluminous complaints about the use of portable toilet facilities and the inadequate concession and entrance area. This amount was added to the balanced 2013-14 budget expenditures. This information will continue to be updated as the budget process continues and more information becomes known. The District will continue to use a conservative approach to budgeting and creating assumptions so that we can provide an excellent education for students while adhering to the revenue limits. 6
Significant Changes for 2013-14 Each year there are changes in the way that the District operates which affect the budget. Listed below are the significant changes for 2013-14. Staffing The District reclassified two of the staff that provide technology assistance to teachers from the teaching areas to technology support in the budget. This is not a change for 2013-14 in what these staff do, just where they are classified in the budget. New/Eliminated Programs New Courses for 2013-14 are Show Choir and Folk Music Ensemble. Art, Physical Education/Health and Social Studies will enter the review process this year. Significant Expense or Revenue Changes The general fund tax levy is projected to decrease by $435,608. Due to the problems with the federal budget, all federal grants are being reduced in a process called sequestration. State equalization aid is forecast to increase by about $1.8 million (14.0%). The decrease in equalized value last year makes the District appear poorer in the state formula and should result in more state aid. The District will not receive the 2012-13 one time revenue limit adjustment of $190,000. Integration aid down $165,000 due to fewer students. The District will bid out health and dental insurance this fall for a January 1 st start. In addition to the usual replacement of technology, the District will spend an additional approximately $1,150,000 to add restrooms and a more functional concession stand at the high school football field. Thousands of residents attend outdoor events at the high school and the District has received voluminous complaints about the use of port-apotties and the inadequate concession and entrance area. This amount was added to the balanced 2013-14 budget expenditures. This District will not be selling any old equipment this year which will lower revenue by $86,000. 7
Franklin Public Schools - 2013-14 Budgeted Revenue 56.8% 35.8% 7.5% Local Non-Tax Revenue Local Tax Revenue State & Fed Aid Revenue 8
Franklin Public Schools - 2013-14 Budgeted Expenditures 77% 16% 7% Salaries & Benefits Purchased Services Other -supplies, etc. 9
Estimated Total Tax Levy 2012-13 2013-14 $ Diff % Diff Educating Children 29,336,272 28,900,664 (435,608) -1.5% Long Term Debt 1,995,948 3,864,328 1,868,380 93.6% Recreation & Comm. Education 453,917 453,917 0 0.0% Total 31,786,137 33,218,909 1,432,772 4.5% Additional Information The District's equalized value dropped by just over 4% last year. As a result, in 2013-14 the District expects the state equalization aid formula to take this loss of value into account which means that the state views the Franklin Public School District as being a "poorer" community since the property tax base per student has decreased compared to other communities. As the name "equalization aid" implies, the state then gives state aid to Franklin Public Schools since the state feels that Franklin taxpayers cannot pay more of the share of the cost of local education. You can see this effect in the "Educating Children" category. The District placed facility referendum questions on the ballot in the fall of 2012 and the community supported an increased tax levy for two large projects at the high school. You can see the effect of these additional projects as the District borrowed $33,000,000 that will be used to complete them. The City of Franklin is conducting a property assessment revaluation this year which will make the tax effect somewhat uneven as the City changes the values of properties. Estimated Tax Levy Rate 2012-13 2013-14 $ Diff % Diff Educating Children 10.82 10.64 (0.18) -1.7% Long Term Debt 0.74 1.42 0.68 91.9% Recreation & Comm. Education 0.17 0.17 (0.002) -1.2% Total 11.73 12.23 0.50 4.2% -this is the rate per $1,000 of assessed value, (some totals differ due to rounding) -the % increase in the tax rate is less than the % increase in the tax levy dollars due to the growth in value of the community (est. 0.20%) Estimated Property Tax Implications of Proposed 2013-14 Budget Franklin Public Schools Additional Per Year Recreation and Community Education Additional Per Year Assessed Value of $100,000 50.44 0.03 Assessed Value of $200,000 100.88 0.07 These are very tentative Estimates, because: 1. The assessed valuation has not yet been determined by the City. 2. The number of students for 2013-14 is unknown. 3. The amount of State aid has not been determined by the State. CAUTION! 4. The State budget has not been finalized. 10
Tax Rate History Franklin Public Schools $30.00 $25.00 Tax Rate / $1,000 Assessed $20.00 $15.00 $10.00 49% Reduction in Tax Rate $5.00 $0.00 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2013 2014 Tax Year est. 11
Franklin Public Schools June 10, 2013 2013-14 Budget Regular Education Fund (Fund 10) Actual 2011-12 Budget 2012-13 Budget 2013-14 930 000 Beginning Fund Balance 16,075,361 17,765,767 16,985,894 992 000 Residual Equity Transfers In (Out) 0 0 0 935 100 Non-Spendable Fund Balance 746,299 936 100 Restricted Fund Balance 937 900 Committed Fund Balance 938 900 Assigned Fund Balance 779,873 1,150,000 939 900 Unassigned Fund Balance 16,239,594 15,835,894 15,835,894 930 000 Total Ending Fund Balance 17,765,767 16,985,894 15,835,894 Revenues and Other Financing Sources Local Sources 100 Interfund Transfers 0 0 0 210 Taxes 28,238,843 29,336,272 28,900,664 212 Previously Uncollected Tax Amount, TID Closing 402,724 905 4,922 230 Interfund Payments 0 0 0 240-260 Yearbook, Bookstore, Class Project Materials 85,265 110,250 55,050 270 Event Admissions, Field Trips 205,366 76,570 74,145 280 Interest on Investments 9,813 3,000 6,000 290 Student Fees, Facility Use 485,989 437,122 419,972 Other School Districts Within Wisconsin 310 Transit of Aids 9,185 3,000 2,500 340-390 Open Enrollment 2,294,929 2,648,895 2,908,972 Intermediate Sources 510 Transit of Aids 2,572 0 0 State Sources 610 Library, Transportation, 220, Bilingual 1,665,132 1,488,591 1,140,246 620 Equalization Aid (including stabilization funds) 12,864,427 12,869,726 14,675,952 630-640 House of Correction Reimbursement, Alt. Ed. Grant 455,064 422,526 398,000 690 Computer Exemption Reimbursement 64,101 66,803 68,425 12
Franklin Public Schools - 2013-14 Budget Regular Education Fund (Fund 10) (continued) Actual 2011-12 Budget 2012-13 Budget 2013-14 Federal Sources 730-780 Special Project Grants 1,157,851 91,134 63,450 750 ESEA Grants 110,854 355,806 256,750 Other Revenues 860 Sales/Insurance Reimbursement 24,000 106,000 20,000 960-970 E-rate funds, Adjustments 41,468 15,000 17,000 990 Miscellaneous 5,129 7,000 3,000 Total Revenues & Other Financing Sources 48,122,713 48,038,600 49,015,048 Expenditures & Other Financing Uses Instruction 110 000 Elementary Classrooms, Technology Purchases 12,593,564 12,886,729 12,376,464 120 000 Middle & High School Classes, All Art & Music 10,598,866 11,446,609 11,435,708 Middle & High School Business, Tech.-Ed., 130 000 Technology Classes 1,623,636 1,584,492 1,602,935 140 000 Physical Education 1,022,118 1,066,730 1,033,255 160 000 Co-Curricular Sports & Activities 637,980 682,864 677,696 170 000 Gifted & Talented, Education Provided at Home 81,205 94,319 91,604 Support Services 210 000 Guidance, Social Work, Psychologist, Medical Staff 1,135,088 1,178,211 1,056,671 220 000 Instruction, Curriculum, & Assessment 626,793 661,401 692,501 230 000 District-Wide Support & Direction 837,233 983,980 1,024,102 240 000 School Building Administration 2,555,816 2,596,234 2,544,111 250 000 Business Services, Transportation, Maintenance 7,526,327 7,664,254 8,907,265 260 000 Human Resources, Technology Support 823,780 835,720 1,034,006 270 000 District Operations Insurance 278,776 377,123 403,526 280 000 Cash Flow Borrowing 1,986 25,000 0 290 000 Retirement Expenses 1,626,390 1,402,799 1,385,319 Non-Program Transactions 410 000 Amount to Balance Special Education Fund 3,828,245 4,556,838 5,028,501 430 000 Open Enrollment, Post Sec. Options 633,597 773,170 864,384 490 000 Uncollected Tax Repayment 905 2,000 7,000 Total Expenditures & Other Financing Uses 46,432,307 48,818,473 50,165,048 13
Franklin Public Schools - 2013-14 Budget Federal Funding for Students with Disabilities Actual 2011-12 Budget 2012-13 Budget 2013-14 Total Revenues & Other Financing Sources 825,313 820,116 785,612 Total Expenditures & Other Financing Uses 825,313 820,116 785,612 Special Education (Fund 27) Actual 2011-12 Budget 2012-13 Budget 2013-14 Total Revenues & Other Financing Sources 6,337,579 6,747,020 7,090,501 Total Expenditures & Other Financing Uses 6,337,579 6,747,020 7,090,501 Long Term Debt Fund (Fund 30) Actual 2011-12 Budget 2012-13 Budget 2013-14 900 000 Beginning Fund Balance 1,221,752 1,888,904 1,888,904 992 000 Residual Equity Transfers In (Out) 0 0 0 900 000 Ending Fund Balance 1,888,904 1,888,904 1,888,904 Total Revenues & Other Financing Sources 2,718,922 1,995,948 3,864,328 281 000 Long-Term Capital Debt 2,051,770 1,995,948 3,864,328 282 000 Refinancing 0 0 0 Total Expenditures & Other Financing Uses 2,051,770 1,995,948 3,864,328 842 000 Indebtedness, End of Year 6,885,000 5,105,000 36,275,000 Capital Projects Fund (Fund 49) Actual 2011-12 Budget 2012-13 Budget 2013-14 900 000 Beginning Fund Balance 0 0 0 992 000 Residual Equity Transfers In (Out) 0 0 0 900 000 Ending Fund Balance 0 0 (19,250,000) Total Revenues & Other Financing Sources 0 0 0 200 000 Support Services 0 0 19,250,000 Total Expenditures & Other Financing Uses 0 0 19,250,000 Food Service Fund (Fund 50) Actual 2011-12 Budget 2012-13 Budget 2013-14 900 000 Beginning Fund Balance 494,931 490,144 490,144 900 000 Ending Fund Balance 490,144 490,144 327,242 Total Revenues & Other Financing Sources 1,644,161 1,690,300 1,675,825 200 000 Support Services 1,648,948 1,690,300 1,838,727 Total Expenditures & Other Financing Uses 1,648,948 1,690,300 1,838,727 14
Franklin Public Schools - 2013-14 Budget Agency Fund (Fund 60) Actual 2011-12 Budget 2013-14 Budget 2013-14 700 000 Assets 118,247 130,000 130,000 800 000 Liabilities 118,247 130,000 130,000 Expendable Trust Fund (Funds 21,28,72) Actual 2011-12 Budget 2013-14 Budget 2013-14 900 000 Beginning Fund Balance 65,373 206,462 206,462 992 000 Residual Equity Transfers In (Out) 0 0 0 900 000 Ending Fund Balance 206,462 206,462 206,462 Total Revenues & Other Financing Sources 750,218 290,000 700,000 Total Expenditures & Other Financing Uses 609,129 290,000 700,000 Community Education and Recreation Fund (Fund 81 & 82) Actual 2011-12 Budget 2012-13 Budget 2013-14 900 000 Beginning Fund Balance 718,891 914,855 914,855 900 000 Ending Fund Balance 914,855 914,855 914,855 Total Revenues & Other Financing Sources 1,307,592 1,239,305 1,289,437 Total Expenditures & Other Financing Uses 1,111,628 1,239,305 1,289,437 Proposed Property Tax Levy Fund Actual 2011-12 Budget 2012-13 Budget 2013-14 General Fund 28,238,843 29,336,272 28,900,664 Debt Service Fund 2,717,043 1,995,948 3,864,328 Recreation Fund 453,917 453,917 453,917 Total Current Levy 31,409,803 31,786,137 33,218,909 Prior Year Tax Levy Chargeback 25,915 905 4,922 Total Levy 31,435,718 31,787,042 33,223,831 15
2013-14 Budget Appendices 16
District Facts Enrollment Information Actual Actual Change in % Budget Change in % 2011-12 2012-13 Amount Change 2013-14 Amount Change Elementary 2,165 2,228 63 2.9% 2,273 45 2.0% Middle School 674 684 10 1.5% 689 5 0.7% High School 1,435 1,443 8 0.6% 1,453 10 0.7% Total 4,274 4,355 81 1.9% 4,415 60 1.4% Open Enrollment-In 361 411 50 13.9% 451 40 9.7% Open Enrollment-Out 82 106 24 29.3% 106 0 0.0% Chapter 220 103 87 (16) -15.5% 87 0 0.0% % free & reduced lunch 15% 16% 1% 4.2% 15% (0) -1.4% # of Kindergarten Students 290 281 (9) -3.1% 281 0 0.0% # of HS graduates 328 333 5 1.5% 350 17 5.1% Staffing Information Actual Actual Change in % Budget Change in % 2011-12 2012-13 Amount Change 2013-14 Amount Change Elementary Classroom 108.6 106.0 (3) -2.4% 106.0 0 0.0% Support 28.2 31.2 3 10.7% 31.2 0 0.0% Average Class Size 24.5 25.3 1 3.3% 25.3 0 0.0% Middle School Classroom 36.6 35.2 (1) -3.8% 35.2 0 0.0% Support 9.8 10.6 1 8.2% 10.6 0 0.0% Average Class Size 28.1 28.6 1 1.8% 28.6 0 0.0% High School Classroom 74.3 73.0 (1) -1.7% 73.0 0 0.0% Support 17.7 18.8 1 6.4% 18.8 0 0.0% Average Class Size 26.4 27.7 1 5.0% 27.7 0 0.0% *exact # not available # of Custodians 38 38 0 0.0% 38 0 0.0% # of Food Service staff 33 34 1 3.0% 34 0 0.0% # of Ed. Assistants, Secretaries 117 116 (1) -0.9% 116 0 0.0% # of Administrators 16 16 0 0.0% 16 0 0.0% Student Fee Revenue Budgeted Collected Avg. Amt. Per Student 2008-09 200,257 204,411 50 2009-10 200,257 202,181 49 2010-11 207,207 207,375 50 2011-12 216,505 212,197 50 2012-13 210,897 231,206 53 17
Franklin Foundation Grants 2008-09 2009-10 2010-11 2011-12 2012-13 Foundation Grant Amount 42,000 47,000 73,189 114,713 32,318 Budget Related Information Change in % Budget Change in % 2011-12 2012-13 Amount Change 2013-14 Amount Change Teacher/Student Ratio 14.8 15.9 1.1 7.3% 15.9 0.0 0.0% Total Spending per Student 12,008 11,492 (516.1) -4.3% 11,713 220.3 1.9% Equalized Value per Student 638,868 601,670 (37,197.5) -5.8% 598,920 (2,750.5) -0.5% General Fund Taxes per Student 6,822 6,865 43.0 0.6% 6,736 (128.9) -1.9% Historical Financial Information Year Equalized Value (tid out) % Change State Aids (Rev Limit) % Change Tax Levy % Change 2003-04 1,808,609,592 15,889,431 23,138,039 2004-05 2,003,407,574 10.8% 16,735,152 5.3% 23,558,588 1.8% 2005-06 2,212,242,071 10.4% 18,523,147 10.7% 23,509,266-0.2% 2006-07 2,549,319,904 15.2% 18,682,264 0.9% 25,545,521 8.7% 2007-08 2,688,864,423 5.5% 17,628,858-5.6% 28,550,076 11.8% 2008-09 2,878,516,390 7.1% 17,880,193 1.4% 29,464,517 3.2% 2009-10 2,817,273,845-2.1% 15,180,779-15.1% 30,627,777 3.9% 2010-11 2,602,685,529-7.6% 15,989,656 5.3% 31,531,293 2.9% 2011-12 2,730,520,438 4.9% 14,381,577-10.1% 31,409,803-0.4% Educational Statistics # of Native Composite Languages Year Graduation ACT Spoken by Rate Score Students 2011-12 99% 23.5 32 18
Franklin Public Schools Budget Process The Franklin Public Schools budget process is guided by the school board goals and the principles and ideas listed on the accompanying pages. The steps in the budget process follow the detailed budget timeline that is available on the District s website and also in the Budget Preparation Manual which is provided to all administrators and others responsible for developing components of the budget. In general, principals and other administrators are provided with budget spreadsheets and guiding information in February. Each administrator collaborates with the Director of Business Services on the details of their respective parts of the budget. Because the search for savings, efficiencies, and budget reductions is continuous, it is important that each school has a voice in the process. To provide this voice, the Director of Business Services meets with each principal to discuss and list possible areas of change or reduction. The principals put forth their ideas as well as ideas that they have received from the staff. This list is taken to the Superintendent who schedules a series of budget meetings with the directors. As part of these meetings, an estimated budget level is determined (based on state aid, enrollment, projections, etc.). Other possible reductions or additions are added to the lists, and estimated dollar amounts are attached to each item. All areas of the budget are considered in a district-wide view based on the school board goals and the principles listed on the accompanying pages. Priorities emerge from these discussions and a draft list of reductions that achieves the budget target is developed. This list is then presented at a principal meeting for feedback and further discussion. Based on this discussion, the Superintendent and directors create a draft budget (including reductions) to propose to the school board. The Franklin Public Schools provide programs designed to meet the needs of students. However, due to state imposed revenue limits and tough economic times, the District often finds itself in a situation where it must cut expenses to balance the budget. When recommending budget cuts, the District takes into consideration the possible effects on the balanced learning experiences for students, as well as the ability to meet legal and statutory requirements. 19
2013-14 Budget Timeline Date Task 12-15-12 Estimate budget parameters 12-15-12 Initial budget projection 02-20-13 Estimate enrollment for district including a breakdown for each school 02-20-13 Calculate per student budget amounts 03-01-13 Building and department budget process begins 03-25-13 Building/department budgets due in business office 04-22-13 Preliminary staffing plan developed 04-22-13 All known employee staffing information given to Business Services 05-27-13 Initial draft of the proposed budget 05-31-13 Review proposed budget with appropriate staff and revise 06-10-13 Budget presentation and staffing plan at Board meeting 07-01-13 All 11 &12 month employee information to payroll for July 15th payroll 07-18-13 Budget approved by School Board to start fiscal year operations 07-31-13 Compare budget to previous year actual numbers and adjust as needed 08-21-13 Tax levy approved by electors at the Public Hearing/Annual Meeting 09-01-13 All employee information to payroll to be included in Sept. 15th payroll 09-20-13 Student Count 10-23-13 Adjust budget based on final aid and revenue cap from DPI, actual staffing 10-23-13 School Board adopts adjusted budget and tax levies 11-01-13 District certifies tax levy 11-15-13 Adjust building budgets for actual enrollment and District budget changes 20
Long Term Debt, Cash Flow, and Fund Balance Information Long Term Debt The District has a segregated fund for referendum approved long term debt. This type of borrowing is used to provide funds for large projects such as building or remodeling schools, or purchasing land or equipment. The attached debt schedule lists the current amounts that the District owes for long term debt. Cash Flow One of the financial challenges faced by the District is that revenue tends to be received late in the year in the form of property taxes and state aid while expenses begin immediately with the start of the fiscal year as the District prepares for the new school year. The District is committed to a conservative budget policy of paying its bills without borrowing money for short term expenses. In the first six months of the 2011-12 school year the District had paid out almost $14 million more than it had received in revenue. To accomplish this, the District needs to maintain funds to pay for these expenses until the revenue starts to be received. These funds are called fund balance and are explained in the next section. The graph below shows the projected cash flow for the 2011-12 school year. You will note that even with the District's fund balance, expenses were still projected to exceed revenue, however the District was able to cover these expenses. 21
18,000,000 FPS Cash Flow Throughout the Year 2011-12 14,000,000 10,000,000 6,000,000 2,000,000-2,000,000 Fund Balance Fund balance is essentially the difference between the Districts assets and liabilities at any point in time. Fund balance is usually measured at the end of the fiscal year which is June 30th. The fund balance after the 2010-11 school year was just over $16 million dollars. As noted earlier, this was just barely enough to meet expenses in 2011-12 prior to receiving the major forms of revenue. As the budget becomes larger, the fund balance must also keep pace. The District's policy on fund balance indicates the need to carry an operating reserve to provide adequate cash flow, serve as a safeguard against unanticipated expenditures and unrealized revenues, raise or maintain the District's bond rating, and lessen the long term tax burden on the community by adding interest revenue and eliminating short term interest expenses. In 2011-12, for the first time in more than 20 years, the District did not borrow money to pay for operating expenses. If the District had not worked to create an adequate fund balance over the years through fiscal constraint, it would have had to borrow just over $20 million in 2011-12 for operating purposes. 22
Description 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Refinancing #47 1,215,415 659,513 0 0 0 0 0 0 0 0 Refinancing #49 765,913 752,025 0 0 0 0 0 0 0 0 FHS Bonds #51 1,458,335 1,119,750 2,199,050 1,932,875 1,995,630 1,981,400 1,985,950 1,984,075 1,984,925 1,983,675 FHS Bonds #52 424,666 308,225 308,225 308,225 308,225 308,225 308,225 308,225 308,225 308,225 Total 3,864,328 2,839,513 2,507,275 2,241,100 2,303,855 2,289,625 2,294,175 2,292,300 2,293,150 2,291,900 Description 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 FHS Bonds #51 1,987,000 1,984,650 1,985,725 1,985,150 1,982,925 639,450 0 0 0 0 FHS Bonds #52 308,225 308,225 308,225 308,225 308,225 1,657,675 2,296,225 2,293,525 2,297,506 2,291,644 Total 2,295,225 2,292,875 2,293,950 2,293,375 2,291,150 2,297,125 2,296,225 2,293,525 2,297,506 2,291,644 23 Franklin Public School District Long-Term Debt Schedule July 1, 2013 Debt Service Total 48,159,820
How the Franklin Public Schools Have Responded to Change State revenue limits on schools began with the 1993-94 school year. The District was generally allowed to increase its revenue per student by 2.5% while adhering to state mandated cost increases which generally increased the cost of educating each student by about 3.4%. Obviously, this is not an economic model that can be sustained indefinitely. The District made many changes in operations to make this work, and also benefitted from having a growing student population. Starting in the 2003-04 school year, the District s enrollment did not grow fast enough to make up for the cost/revenue differential and the District had to cut $1.1 million in expenses to balance the budget. In the ensuing years the District has cut a total of $4.3 million from expenses and added $1.8 million in new revenue. There have been many changes in school funding since the 2010-11 school year. Revenue limits are still in place. The allowable increase in cost per student for the 2012-13 school year was 0.46% which followed a year with no allowable increase. However, on the expense side of the budget, the state mandates for expenditure levels have been eliminated so that the District can better manage its budget. The list on the following pages shows the detailed information on the budget cuts that have been made and the additional revenue that has been created. When determining budget cuts, the District takes into consideration the possible effects on the balanced learning experiences for students, as well as the ability to meet legal and statutory requirements. 24
Franklin Public Schools Budget Reductions 2003-04 Instructional Services Administrator, eliminated 1.0 FTE 2003-04 Pupil Services Administrator, eliminated 1.0 FTE 2003-04 HR Coordinator, reduced.5 FTE 2003-04 Elementary computer teachers, eliminated 2.5 positions 2003-04 Elementary reading teacher, eliminated 1.0 FTE 2003-04 Elementary ESL teacher, eliminated 1.0 FTE 2003-04 Elementary music teacher, reduced.5 FTE 2003-04 Elementary foreign language teacher, reduced.3 FTE 2003-04 Elementary orchestra teacher, reduced.3 FTE 2003-04 Middle school reading specialist, eliminated 1.0 FTE 2003-04 High School PASS teacher, reduced.4 FTE 2003-04 K-12 Math resource teacher, reduced.2 FTE 2003-04 Middle school computer resource, reduced.2 FTE 2003-04 High School computer resource, reduced.2 FTE 2003-04 School-to-work coordinator, reduced.4 FTE 2003-04 High School reduced 6 sections of courses offered 2003-04 Secretaries & Aides, reduced 81 hours per day across the District 2003-04 Custodians, reduced 16 hours per day across the District 2003-04 Mock Trial Club, eliminated 2003-04 Students to Save the Earth Club, eliminated 2003-04 Boys Swim Assistant Coach position, eliminated 2003-04 $1,100,000 Assistant Forensics Coach position, eliminated 2004-05 Social Work, eliminated 1.0 FTE 2004-05 Guidance, reduced 0.5 FTE 2004-05 2 curriculum coordinators, eliminated 2004-05 Printer, eliminated 1.0 FTE 2004-05 Elementary cross categorical teacher, eliminated 1.0 FTE 2004-05 Elementary regular and related specials teachers, eliminated 1.2 FTE 2004-05 Middle School 8th grade teacher, eliminated 1.0 FTE 2004-05 Middle School health teacher, reduced.4 FTE 2004-05 Middle School music teacher, reduced.2 FTE 2004-05 High School regular classes, eliminated 1.4 FTE 2004-05 High School cross categorical teacher, eliminated 1.0 FTE 2004-05 High School gifted and talented program teacher, reduced.4 FTE 2004-05 High School & Middle School French teacher, reduced.4 FTE 2004-05 Secretaries & Aides, reduced 4 hours at the Middle School 2004-05 Custodians, eliminated 2 hour position at PV 2004-05 Custodians, eliminated 4 hour position at FP 2004-05 Custodians, eliminated two 0.75 hour positions at CD, RW 2004-05 Ski Coach, eliminated 2004-05 Transportation costs reduced through increased use of District vehicles 2004-05 After school late activities buses, eliminated 2004-05 $600,000 1 bus route, eliminated 25
Franklin Public Schools Budget Reductions 2008-09 Teachers, eliminated 6.2 FTE 2008-09 $602,450 Travel 2009-10 Finalsite software costs eliminated 2009-10 Telephone service savings 2009-10 Energy savings 2009-10 Self-funded programs charged for District services 2009-10 5 private school bus routes eliminated 2009-10 Reduce legal fees 2009-10 Reduce employee travel 2009-10 Manage new IRS regulations for 403b plans in house 2009-10 Reduction in CESA services at Academy of Learning 2009-10 Use IDEA grant to pay for special education legal expenses 2009-10 PSLO at FHS & FP, eliminated 2009-10 Substitutes for library media specialists, eliminated 2009-10 Licensed EA for graduating CWD student, eliminated 1.0 FTE 2009-10 Licensed EA for orthopedically impaired program, eliminated 5.75 hrs/day 2009-10 CWD teacher at FHS, eliminated 1.0 FTE 2009-10 Teaching time at FHS due to enrollment decrease, eliminated 0.6 FTE 2009-10 Elementary aide time, eliminated 12 hours/day 2009-10 Elementary office assistant time, eliminated 6.5 hours/day 2009-10 Custodial supervisor, eliminated 1.0 FTE 2009-10 Communications coordinator, reduced 0.5 FTE 2009-10 GT position, eliminated 0.4 FTE 2009-10 Elementary guidance, eliminated 1.5 FTE 2009-10 $833,491 Elementary library media specialist, eliminated 1.0 FTE 2010-11 Move Math Coordinator to Title funding 2010-11 Move professional development cost to be paid by Title funds 2010-11 Charge participants for Franklin credit courses 2010-11 Limit curriculum review cycle to science, math, social studies, literacy 2010-11 Further limit out of district travel based on new professional development process 2010-11 Eliminate MAP testing for 9th grade 2010-11 5th grade students in orchestra or band do not have to take general music 2010-11 Reduce software budget 2010-11 Self-funded programs charged for District services 2010-11 Reduce energy costs by changing the amount of heating and cooling 2010-11 Eliminate 1.0 FTE office assistant position at the front desk at the ECC 2010-11 Eliminate 0.5 FTE special education office assistant at the ECC 2010-11 Reduce custodial staffing 2010-11 Eliminate teacher-in-charge positions 2010-11 Eliminate 0.1 FTE of teacher time for careers in action at FHS 2010-11 Eliminate 0.5 FTE FHS supervision EA 2010-11 Eliminate one 4.5 hour and one 3.0 hour guided study EA positions at FHS 26
Franklin Public Schools Budget Reductions 2010-11 Reduce 10 hours of EA time - all schools reduced 2010-11 Eliminate Punjabi interpreter 2010-11 Reduce interpreter from 1.0 FTE to 0.5 FTE 2010-11 Eliminate ESL Teacher 2010-11 Eliminate 0.5 FTE diagnostic teacher 2010-11 Reduce hours to eliminate full-time special education EA positions 2010-11 Eliminate 1.0 FTE special education teacher 2010-11 Eliminate 2.0 FTE elementary guidance 2010-11 $1,196,260 Eliminate 2.0 FTE elementary library media specialist $4,332,201 Total Budget Reductions Franklin Public Schools Added Revenue 2004-05 User fees for co-curriculars, increase tickets, no passes 2004-05 Increase yearly parking fee and one-day parking fee 2004-05 Increase cost of Recreation Department permits 2004-05 Charge a consumable fee (art, woods, metals,face, Photography) 2004-05 $100,000 Increase student registration fee 2008-09 $320,000 Alternative Education Grant (over 5 years) 2009-10 Added 27 Open Enrollment students 2009-10 $390,345 Fees for local Open Enrollment students for transportation 2010-11 $399,900 Add Open Enrollment students 2011-12 $336,483 Added Open Enrollment students 2012-13 $322,250 Added Open Enrollment students $1,868,978 Total Added Revenue $6,201,179 Total Budget Changes to Create a Balanced Budget 27
District Accounting Funds Fund 10 Regular Education The general fund is used to account for all financial transactions relating to the district s current operations, except for those required to be accounted for in other funds. The district must account for special education, long term debt, food service, student activities, and recreation in separate funds. Fund 20 Gifts and Donations These funds account for donations and gifts to the district. Fund 27 Special Education Fund This fund is used to account for expenses related to the education of students with disabilities. Fund 39 Long Term Debt This fund is used to account for transactions related to long term debt for land, buildings, equipment or other improvements. All debt in this fund has been approved by a referendum. Fund 49 Capital Projects Fund This fund is used to account for expenditures financed through long term debt. Fund 50 Food Service All expenditures and revenue related to the school food service operation are accounted for in this fund. Fund 60 Agency Fund This fund is used to account for assets held by the district for student organizations. Fund 81 Community Education and Recreation Fund This fund is used to account for all activities associated with providing recreational programming for the community and other community education programs. 28
District Budget Categories 110000 Elementary Classrooms, Technology Purchases An instructional situation in which one teacher is responsible for providing instruction in two or more curricular areas to the same group of students. This is found almost exclusively at the elementary schools where each classroom teacher teaches reading, writing, math, etc. to the same group of students. This area is also used for the purchase of technology and other capital equipment used by students at all levels. 120000 Middle & High School Classes, All Art & Music An instructional situation in which a teacher instructs a group of students in only one curricular area such as math, English, foreign language, science, social studies, etc. These types of classes occur most commonly at the middle and high school level. They also occur at the elementary level for all art and music classes. The alternative high school education program at FHS is included here. 130000 - Middle and High School Business, Tech-Ed, Technology Classes Consists of occupationally related subject matter and related experiences designed to develop the knowledge, skills, attitudes, and appreciation s that relate to the world of work. These are mainly middle and high school classes in business, technology, health, and tech. ed. 140000 - Physical Education The body of related subject matter and learning activities in health, safety in daily living, physical education, and recreation. 160000 - Co-Curricular Sports and Activities Comprised of the group of school-sponsored activities designed to provide opportunities for students to participate for purposes such as motivation, enjoyment, and improvement of skills. 170000 Gifted and Talented & Education Provided at Home Curriculum which provides for the special needs of students not requiring an individualized education program. These programs are mainly for students identified as gifted and talented. Students requiring instruction at home would be included in this area as well. 210000 Guidance, Social Work, Psychologist, Medical Staff Activities designed to assess and improve the well-being of students and to supplement the teaching process. This area includes guidance counselors, social workers, psychologists, and nurses from the entire district. 220000 Instructional, Curriculum, & Assessment Activities associated with assisting the instructional staff in providing learning experiences for students. This area works with the instructional staff in developing the curriculum and assessing students. It contains most of the staff development for the teaching staff. 29
230000 District-Wide Support and Direction Activities concerned with establishing and administering policy in connection with operating the school district and expenditures that are of a district-wide nature. The school board and office of the superintendent are included in this area. In addition this area contains technology for staff, and items such as auditing, legal fees, and communication. 240000 - School Building Administration Activities concerned with the overall responsibility for a school building. This would include office functions as well as field trips, copier and telephone costs. 252000 - Business Services Activities concerned with the fiscal operations of the school district. This includes accounting, payroll and benefits, purchasing, budget development and management, fiscal reports and documentation, revenue collection, and insurance. 253000 Custodial Services Activities concerned with keeping the physical plant open, comfortable, and safe for use. This includes cleaning and minor maintenance at all the buildings as well as utility costs. 254000 - Maintenance Activities concerned with keeping the grounds, buildings, and equipment in effective working condition and state of repair. 256000 Pupil Transportation Activities concerned with the conveyance of students to and from school, as provided by state and federal law. This includes both contracted transportation and transportation provided using district owned vehicles. 264000 Human Resources Activities concerned with maintaining an efficient staff for the school system, including such activities as recruitment and placement, staff transfers, training, negotiations, and staff accounting. 266000 Technology Support Activities concerned with installing and maintaining the technology needed by students and staff, as well as the infrastructure to support that technology. 270000 - District Operations Insurance This area includes property, liability, and workers compensation insurance. 280000 Cash Flow Borrowing Payment of interest on temporary borrowings for cash flow purposes. 290000 Retirement Expenses Benefits paid to or on behalf of former employees of the district. 400000 - Other Transactions Includes transfers between funds, payments for general tuition, and repayment of uncollected taxes. 30
June 10, 2013 Franklin Public Schools 2013-14 Budget - Draft #1 Regular Education Revenue Actual Budget Budget $ Difference % Difference 2011-12 2012-13 2013-14 13/14-12/13 13/14-12/13 Local Sources Taxes 28,238,843 29,336,272 28,900,664 (435,608) -1.5% Previously Uncollected Tax Amount 25,915 905 4,922 4,017 443.9% TID Close Out 376,809 0 0 0 #DIV/0! Interfund Payments 0 0 0 0 0.0% Yearbook, Bookstore, Materials 85,265 110,250 55,050 (55,200) -50.1% Event Admissions, Field Trips 205,366 76,570 74,145 (2,425) -3.2% Interest on Investments 9,813 3,000 6,000 3,000 100.0% Student Fees, Facility Use 485,989 437,122 419,972 (17,150) -3.9% Other School Districts Within Wisconsin Transit of Aids 9,185 3,000 2,500 (500) -16.7% Open Enrollment 2,294,929 2,648,895 2,908,972 260,077 9.8% Intermediate Sources Transit of Aids 2,572 0 0 0 #DIV/0! State Sources Library, Transportation, 220, Bilingual 1,665,132 1,488,591 1,140,246 (348,345) -23.4% Equalization Aid (incl. sp. adj. aid) 12,864,427 12,869,726 14,675,952 1,806,226 14.0% House of Correction, Alternate Ed Grant 455,064 422,526 398,000 (24,526) -5.8% Computer Exemption Reimbursement 64,101 66,803 68,425 1,622 2.4% Federal Sources Special Project Grants 1,157,851 91,134 63,450 (27,684) -30.4% ESEA Grants 110,854 355,806 256,750 (99,056) -27.8% Other Revenues Sales/Insurance Reimbursement 24,000 106,000 20,000 (86,000) -81.1% E-rate funds, Adjustments 41,468 15,000 17,000 2,000 13.3% Miscellaneous 5,129 7,000 3,000 (4,000) -57.1% Total Revenues 48,122,713 48,038,600 49,015,048 976,448 2.0% 31
Elementary Classrooms, Technology Purchases Regular Education Expenditures Actual Budget Budget $ Difference % Difference 2011-12 2012-13 2013-14 13/14-12/13 13/14-12/13 An instructional situation in which one teacher is responsible for providing instruction in two or more curricular areas to the same group of students. This is found almost exclusively at the elementary schools where each classroom teacher teaches reading, writing, math, etc. to the same group of students. This area is also used for the purchase of technology and other capital equipment used by students at all levels. Salaries 6,823,699 6,878,057 7,026,779 148,722 2.2% Employee Benefits 3,208,881 3,015,974 2,994,055 (21,919) -0.7% Purchased Services 666,619 584,075 628,200 44,125 7.6% Items Under $300 496,460 673,510 506,350 (167,160) -24.8% Items Over $300 1,397,904 1,735,113 1,221,080 (514,033) -29.6% Total 12,593,564 12,886,729 12,376,464 (510,265) -4.0% Middle & High School Classes, All Art & Music An instructional situation in which a teacher instructs a group of students in only one curricular area such as math, English, foreign language, science, social studies, etc. These types of classes occur most commonly at the middle and high school level. They also occur at the elementary level for all art and music classes. The alternative high school education program at FHS is included here. Salaries 7,141,556 7,666,657 7,814,751 148,094 1.9% Employee Benefits 2,810,760 2,868,924 3,008,807 139,883 4.9% Purchased Services 92,201 76,525 58,960 (17,565) -23.0% Items Under $300 522,891 676,091 510,340 (165,751) -24.5% Items Over $300 31,457 158,412 42,850 (115,562) -73.0% Other Objects 0 0 0 0 0.0% Total 10,598,866 11,446,609 11,435,708 (10,901) -0.1% Middle and High School Business, Tech-Ed, Technology Classes Consists of occupationally related subject matter and related experiences designed to develop the knowledge, skills, attitudes, and appreciation s that relate to the world of work. These are mainly middle and high school classes in business, technology, health, and tech. ed. Salaries 1,100,995 1,111,797 1,104,078 (7,719) -0.7% Employee Benefits 391,862 396,490 422,627 26,137 6.6% Purchased Services 2,154 3,825 3,650 (175) -4.6% Items Under $300 126,624 67,880 68,080 200 0.3% Items Over $300 2,000 4,500 4,500 0 0.0% Total 1,623,636 1,584,492 1,602,935 18,443 1.2% 32
Physical Education Regular Education Expenditures Actual Budget Budget $ Difference % Difference 2011-12 2012-13 2013-14 13/14-12/13 13/14-12/13 The body of related subject matter and learning activities in health, safety in daily living, physical education, and recreation. Salaries 733,887 766,360 745,783 (20,577) -2.7% Employee Benefits 271,402 280,013 274,348 (5,665) -2.0% Purchased Services 1,570 2,252 1,748 (504) -22.4% Items Under $300 15,258 18,105 11,376 (6,729) -37.2% Total 1,022,118 1,066,730 1,033,255 (33,475) -3.1% Co-Curricular Sports and Activities Comprised of the group of school-sponsored activities designed to provide opportunities for students to participate for purposes such as motivation, enjoyment, and improvement of skills. Salaries 417,613 429,084 430,344 1,260 0.3% Employee Benefits 62,588 72,781 74,122 1,341 1.8% Purchased Services 97,766 118,290 109,180 (9,110) -7.7% Items Under $300 46,696 61,034 62,150 1,116 1.8% Items Over $300 10,944 0 0 0 #DIV/0! Other Objects 2,373 1,675 1,900 225 13.4% Total 637,980 682,864 677,696 (5,168) -0.8% Gifted and Talented & Education Provided at Home Curriculum which provides for the special needs of students not requiring an individualized education program. These programs are mainly for students identified as gifted and talented. Students requiring instruction at home would be included in this area as well. Salaries 56,994 61,697 64,631 2,934 4.8% Employee Benefits 17,378 17,627 18,768 1,141 6.5% Purchased Services 3,937 5,276 3,376 (1,900) -36.0% Items Under $300 2,897 7,569 4,829 (2,740) -36.2% Items Over $300 0 2,150 0 (2,150) Total 81,205 94,319 91,604 (2,715) -2.9% Guidance, Social Work, Psychologist, Medical Staff Activities designed to assess and improve the well-being of students and to supplement the teaching process. This area includes guidance counselors, social workers, psychologists, and nurses from the entire district. Salaries 764,628 794,434 709,695 (84,739) -10.7% Employee Benefits 329,754 306,402 274,976 (31,426) -10.3% Purchased Services 18,671 47,550 41,750 (5,800) -12.2% Items Under $300 22,036 29,825 30,250 425 1.4% Total 1,135,088 1,178,211 1,056,671 (121,540) -10.3% 33