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Lakewood City School District Five-Year Financial Forecast and

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Lakewood City School District Five-Year Financial Forecast and Powered By Docstoc
					 Five-Year Financial Forecast
   and Educational Plan for
Fiscal Years 2011 through 2015


                 Board of Education Meeting
                 June 6, 2011
Funds Included….

•   General Fund (001)
•   Poverty-Based Assistance Fund (494)
•   School Fiscal Stabilization Fund (532)
•   Education Jobs Fund (504)
                     Structural Operating Deficit
                       in FY2012 and Beyond
                          Projected Excess of Revenues
                            Over (Under) Expenditures
                     $2,000,000

                             $-

             $(2,000,000)
Surplus / (Deficit




             $(4,000,000)

             $(6,000,000)

             $(8,000,000)

$(10,000,000)

$(12,000,000)
                                  2011   2012      2013       2014   2015
                                                Fiscal Year
Board and Administration
Proactive to Mitigate this
Situation…
•   $5.0 million of expenditure reductions
    during fiscal years 2004 through 2009
•   $1.3 million of budget cuts made in
    March 2009
•   $1.6 million of budget cuts made in
    August 2009
•   Use of federal stimulus funds in fiscal
    years 2010 and 2011
•   Passage of 6.9 mill levy by Lakewood voters
    on May 4, 2010
•   $4.0 million of budget cuts for fiscal year
    2011 (62 staff positions)
•   Use of Education Jobs funds for fiscal years
    2011 and 2012
•   $1.0 million of planned expenditure
    reductions for fiscal year 2012 (TRIP)
•   $825,000 (estimate) of staffing expenditure
    reductions for fiscal year 2013 (TRIP)
    Points to remember…
•   Eight years between 2010 and 2002 operating levies
    versus three-year commitment
•   Economic uncertainties facing all districts
•   Lakewood is committed to excellence despite the
    challenging financial times
•   $12.8M balance at June 30, 2010 + 6.9 mill levy + $4M
    budget cuts……..$4.8M projected balance at June 30, 2013
•   Property valuations being challenged, thus reduced … will
    require more millage to generate same revenue as in past with
    higher valuations!
Major Revenue Considerations

 •   Real Estate Taxes
 •   Tangible Personal Property Taxes
 •   Unrestricted State Aid
 •   Restricted State Aid
 •   Other (Interest Earnings)
Real Estate Taxes
•   Delinquent Taxes not increasing
•   Decline of 7.3% in Assessed Property Values
•   Decline of $350,000 from 5.03 inside mills
•   Tax Year 2009 values at 2003-2005 levels
•   2% growth assumed for FY2012 triennial
•   4% growth assumed for FY2015 reappraisal
•   Estimates assume collections at FY2010 levels with
    no increase in delinquent taxes and/or no significant
    losses from tax valuation challenges
Tangible Personal Property Taxes

 •   No longer receive on business inventory/assets,
     only on public utilities’ equipment
 •   State has provided “hold harmless” funding – 2004
     levels, 100%, 7 years - $2.3 million in FY2011
 •   Governor’s Executive Budget Proposal eliminates
     phase-out payments for Lakewood after $1 million
     in FY2012
 •   Governor’s Executive Budget Proposal also
     eliminates $465,000 in electricity deregulation
     payments after FY2011
Unrestricted State Aid
•   PASS funding model in FY2010 and 2011, but
    unknown formula for FY2012 and beyond
•   7% of state funding from federal stimulus funds
    for FY2011
•   No provisions for stimulus funds in FY2012 and
    beyond
•   Governor’s Executive Budget Proposal
    estimates used for FY2012 and FY2013, thus
    reductions of $720,000 and $847,000 from prior
    forecast
Restricted State Aid

•   Education Jobs funds ($915,333) only available for
    fiscal years 2011 and 2012
•   Hired elementary teachers to reduce class sizes for
    these two school years
•   Other funding source or eliminate positions??
•   Governor’s Executive Budget proposal eliminates
    special education catastrophic aid reimbursement
    in FY2012 ($71,000 - $484,000 in recent years)
Other Revenues (Interest Earnings)

  Reduced Interest Rates + Reduced Balances
  to Invest = Reduced Interest Earnings

       FY2011 Projection = $ 200,000.00
       FY2010:             $ 410,264.35
       FY2009:             $ 793,661.59
       FY2008:             $ 1,657,991.47
       FY2007:             $ 1,788,600.83
       FY2006:             $ 1,339,816.02
       FY2005:             $ 597,825.19
       FY2004              $ 278,696.37
State Revenue Losses under Governor’s
Executive Budget Proposal and House
Modifications
 •   Losses compared to FY2011 funding for
     foundation, tangible personal property
     replacement, and electricity deregulation offset:
       •   $2.9 million in FY2012
       •   $3.4 million in FY2013
 •   MAY get some relief on TPP replacement in final
     budget IF possible changes being discussed to
     continue current phase-out schedule become
     law
Major Expenditure Considerations

 •   Personal Services (Wages)
 •   Insurance Benefits/Retirement
 •   Purchased Services
 •   Supplies/Materials
 •   Equipment
 •   Other (Audit, tax collection fees, liability
     insurance, etc.)
Personal Services (Wages)

•   0% base increase for FY2011 for all staff
•   62 full-time equivalent positions reduced for 2010-2011
    school year
•   Stimulus funds and Education Jobs funds used are
    one-time funding sources for 1 or 2 years
•   Extended-day Kindergarten largely funded by Title I
    funds for 2010-2011 school year, then General Fund
•   TRIP and other staffing replacement savings of
    $1 million (estimate) in FY2012 and additional
    $825,000 (estimate) in FY2013 (wages and benefits)
Insurance Benefits/Retirement

•   11.44% increase ($757,000) in Suburban Health
    Consortium premiums for October 2010
•   FY2010 - 0%; FY2009 – 4.62%
•   10% projected increases for FY2012 and
    beyond
•   Mandatory spousal enrollment for new hires in
    2005/2006 school year and after – 15% savings
Purchased Services,
Supplies/Materials, Equipment, Other
 •   $900,000 of Title VI-B stimulus funds used to
     offset general fund expenses in FY2010 and
     FY2011
 •   Textbook budget partially restored in FY2011
     ($200,000) and FY2012 ($150,000)
 •   Staff development budget partially restored in
     FY2012 ($20,000)
 •   Even with restoration of these items, other budget
     cuts in instruction, technology, and maintenance
     are not able to be restored
Our Task: Providing long-term, excellent
educational opportunities for Lakewood’s
youth while managing the short-term
economic crisis
                                      Projected Excess of Revenues
                                        Over (Under) Expenditures
                                $2,000,000
                                        $-
                         $(2,000,000)
           Surplus / (Deficit



                         $(4,000,000)
                         $(6,000,000)
                         $(8,000,000)
           $(10,000,000)
           $(12,000,000)
                                             2011   2012   2013      2014   2015
                                                       Fiscal Year

				
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posted:2/1/2013
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