Hypothetical Charter School Annual Operating Budget
Comments and Underlying Assumptions Major Assumptions: Number of students Student:teacher ratio Number of teachers Number of instructional aides Facility square footage Average teacher salary Average instructional aide salary Base State and Local Aid/Student State Categorical Funding/Student Federal Categorical Funding/Student REVENUES Base state and local aid State categorical funding Federal categorical funding Grants and fundraising Total Revenues EXPENDITURES Salaries Director Teachers Instructional aides Secretary Benefits Retirement Health FICA Other Books and Supplies Texts and instructional materials Other books Software Classroom paper and supplies Office supplies Janitorial supplies 280 Assumes K-6, two classes of 20 students per grade 20:1 14 7 22,400 Assumes 80 square feet per student 40,000 25,000 5,000 500 350
$ $ $ $ $
$
$
1,400,000 140,000 98,000 75,000 1,713,000
$
65,000 560,000 175,000 30,000
83,000 69,000 11,136 19,200
Assumes state retirement system at 10% of salaries Assumes $250/month per employee Assumes Medicare at 1.45% of salaries Assumes 2.5% of salaries for workers' comp, unemployment insurance, and other payroll costs
35,000 21,000 10,000 28,000 2,400 3,600
Assumes $125 per student Assumes $75 per student Assumes 40 computers at $250 each Assumes $100 per student Assumes $200/month Assumes $300/month
Services and Contracts Custodial Bookeeping & Audit Legal Liability & property insurance Waste disposal Student testing & assessment Staff development Special education consultant Travel & conferences, board retreat Internet service provider Postage Copier lease Facilities and Capital Rent/lease/mortgage Replace furnishings & equipment Gas/electric Phone Security alarm Total Expenditures Surplus (Deficit) $ $
14,250 12,000 8,000 12,000 1,800 7,000 22,500 56,000 13,750 9,600 1,440 3,600
Assumes 190 days at $75 Assumes $500/month bookeeping, $6,000 audit Assumes $6,000 retainer, $2,000 reserve Assumes $150/month Assumes $25 per student Assumes $1,500/teacher plus director Assumes $200 per student average cost Assumes $750 per teacher, plus $2,500 board retreat Assumes 40 accounts at $20/month Assumes $120/month Assumes $300/month
282,240 28,000 5,400 2,400 1,200 1,593,516 119,484
Assumes monthly triple net least at $1.05/square foot Assumes $100/student Assumes $450 per month Assumes $200 per month Assumes $100/ per month
Hypothetical Charter School Monthly Cash Flow
Jul. REVENUES Base state and local aid State categorical funding Federal categorical funding Grants and fundraising Total Revenues EXPENDITURES Salaries Director Teachers Instructional aides Secretary Benefits Retirement Health FICA Other Books and Supplies Texts and instructional materials Other books Software Classroom paper and supplies Office supplies Janitorial supplies Services and Contracts Custodial Bookeeping & Audit Legal Liability & property insurance Waste disposal Student testing & assessment Staff development Special education consultant Travel & conferences, board retreat Internet provider $ $ 75,000 75,000 $ Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May
$
$ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 9,800 9,800 9,800 9,800 9,800 9,800 9,800 9,800 9,800 $ 163,800 $ 163,800 $ 163,800 $ 163,800 $ 163,800 $ 163,800 $ 163,800 $ 163,800 $ 163,800
$
5,417 $ 2,500
5,417 $ 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 $ 56,000 17,500 2,500
5,417 56,000 17,500 2,500
792 5,750 928 1,600
792 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
8,142 5,750 928 1,600
200 -
17,500 200 -
17,500 10,500 5,000 2,800 200 360
10,500 5,000 2,800 200 360
2,800 200 360
2,800 200 360
2,800 200 360
2,800 200 360
2,800 200 360
2,800 200 360
2,800 200 360
1,000 667 150 -
1,000 667 12,000 150 -
1,425 1,000 667 150 5,600 960
1,425 1,000 667 150 5,600 960
1,425 1,000 667 150 3,500 11,250 5,600 960
1,425 1,000 667 150 5,600 6,875 960
1,425 1,000 667 150 5,600 960
1,425 1,000 667 150 5,600 960
1,425 1,000 667 150 5,600 960
1,425 1,000 667 150 5,600 960
1,425 1,000 667 150 3,500 11,250 5,600 6,875 960
Hypothetical Charter School Monthly Cash Flow
Jul. Postage Copier lease Facilities and Capital Rent/lease/mortgage Replace furnishings & equipment Gas/electric Phone Security alarm Total Expenditures Monthly Surplus (Deficit) Cash in Bank (Cash Deficit) $ $ $ 120 300 Aug. 120 300 Sep. 120 300 Oct. 120 300 Nov. 120 300 Dec. 120 300 Jan. 120 300 Feb. 120 300 Mar. 120 300 Apr. 120 300 May 120 300
47,040 450 200 100
23,520 14,000 450 200 100
23,520 450 200 100
23,520 450 200 100
23,520 450 200 100
23,520 14,000 450 200 100
23,520 450 200 100
23,520 450 200 100
23,520 450 200 100
23,520 450 200 100
23,520 450 200 100
67,213 $ 87,193 $ 168,688 $ 151,188 $ 150,438 $ 156,563 $ 135,688 $ 135,688 $ 135,688 $ 135,688 $ 157,313 7,787 $ (87,193) $ (4,888) $ 12,612 $ 13,362 $ 7,237 $ 28,112 $ 28,112 $ 28,112 $ 28,112 $ 6,487 7,787 $ (79,406) $ (84,294) $ (71,682) $ (58,320) $ (51,083) $ (22,971) $ 5,141 $ 33,253 $ 61,365 $ 67,852
Hypothetical Charter School Monthly Cash Flow
Jun. REVENUES Base state and local aid State categorical funding Federal categorical funding Grants and fundraising Total Revenues EXPENDITURES Salaries Director Teachers Instructional aides Secretary Benefits Retirement Health FICA Other Books and Supplies Texts and instructional materials Other books Software Classroom paper and supplies Office supplies Janitorial supplies Services and Contracts Custodial Bookeeping & Audit Legal Liability & property insurance Waste disposal Student testing & assessment Staff development Special education consultant Travel & conferences, board retreat Internet provider $ 140,000 14,000 9,800 $ 163,800
$
5,417 56,000 17,500 2,500
8,142 5,750 928 1,600
2,800 200 360
1,425 1,000 667 150 5,600 960
Hypothetical Charter School Monthly Cash Flow
Postage Copier lease Facilities and Capital Rent/lease/mortgage Replace furnishings & equipment Gas/electric Phone Security alarm Total Expenditures Monthly Surplus (Deficit) Cash in Bank (Cash Deficit) Jun. 120 300
450 200 100 $ 112,168 $ 51,632 $ 119,484
Hypothetical Charter School Five-Year Revenue and Expenditure Projections
Assumptions Revenue Growth State & local government price deflator (COLA) Number of additional students Number of additional staff REVENUES Base state and local aid State categorical funding Federal categorical funding Grants and fundraising Total Revenues EXPENDITURES Salaries Director Teachers Instructional aides Secretary Benefits Retirement Health FICA Other Books and Supplies Texts and instructional materials Other books Software Classroom paper and supplies Office supplies Janitorial supplies Services and Contracts Custodial Bookeeping & Audit Legal Liability & property insurance Waste disposal Student testing & assessment Current Year Year 2 2.5% 2.5% 0 0 0 0 Year 3 2.5% 2.5% 0 0 Year 4 2.5% 2.5% 0 0 Year 5 2.5% 2.5%
$
$
1,400,000 $ 140,000 98,000 75,000 1,713,000 $
1,435,000 $ 143,500 100,450 1,678,950 $
1,470,875 $ 147,088 102,961 1,720,924 $
1,507,647 $ 150,765 105,535 1,763,947 $
1,545,338 154,534 108,174 1,808,046
$
65,000 $ 560,000 175,000 30,000
66,625 $ 574,000 179,375 30,750
68,291 $ 588,350 183,859 31,519
69,998 $ 603,059 188,456 32,307
71,748 618,135 193,167 33,114
83,000 69,000 11,136 19,200
85,075 70,725 11,414 19,680
87,202 72,493 11,700 20,172
89,382 74,305 11,992 20,676
91,616 76,163 12,292 21,193
35,000 21,000 10,000 28,000 2,400 3,600
35,875 21,525 10,250 28,700 2,460 3,690
36,772 22,063 10,506 29,418 2,522 3,782
37,691 22,615 10,769 30,153 2,585 3,877
38,633 23,180 11,038 30,907 2,649 3,974
14,250 12,000 8,000 12,000 1,800 7,000
14,606 12,300 8,200 12,300 1,845 7,175
14,971 12,608 8,405 12,608 1,891 7,354
15,346 12,923 8,615 12,923 1,938 7,538
15,729 13,246 8,831 13,246 1,987 7,727
Staff development Special education consultant Travel & conferences, board retreat Internet service provider Postage Copier lease Facilities and Capital Rent/lease/mortgage Replace furnishings & equipment Gas/electric Phone Security alarm Total Expenditures Surplus (Deficit) $ $
22,500 56,000 13,750 9,600 1,440 3,600
23,063 57,400 14,094 9,840 1,476 3,690
23,639 58,835 14,446 10,086 1,513 3,782
24,230 60,306 14,807 10,338 1,551 3,877
24,836 61,814 15,177 10,597 1,589 3,974
282,240 28,000 5,400 2,400 1,200 1,593,516 $ 119,484 $
289,296 28,700 5,535 2,460 1,230 1,633,354 $ 45,596 $
296,528 29,418 5,673 2,522 1,261 1,674,188 $ 46,736 $
303,942 30,153 5,815 2,585 1,292 1,716,042 $ 47,904 $
311,540 30,907 5,961 2,649 1,325 1,758,944 49,102