Oakland Schools Budget Presentation 2009-2010

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Oakland Schools Budget Presentation 2009-2010 Powered By Docstoc
					Oakland Schools Budget
Presentation 2009-2010
Fiscal Challenges
Doing More with Less
   District demand for ISD services is
    growing in many areas

   Revenue to the ISD is decreasing in all
    funds




                                              2
 Key Factor in Budget Development


Local School District
     Student count & Foundation Allowance (70%)


Intermediate School District
     Revenue based primarily on Property Taxes (90%)




                                                        3
Property Tax Forecast

 Property Tax decreases
        Fiscal Year 2009-10       -4.5% - $10.7M
        Fiscal Year 2010-11       -11% - $33.1M
        Fiscal Year 2011-12       -5.0% - $42.2M
        Fiscal Year 2012-13       -5.0% - $50.8M

Cumulative Loss of Property Tax Revenue between
FY 2010 and FY 2013 is $136.8M


                                                   4
                           Oakland Schools Property Tax Revenue

        221, 000, 000
        211, 000, 000
        201, 000, 000
        191, 000, 000                                                  Current Property Tax Total Revenue
        181, 000, 000
        171, 000, 000
        161, 000, 000
        151, 000, 000
        141, 000, 000
        131, 000, 000
        121, 000, 000
        111, 000, 000
        101, 000, 000
            91, 000, 000
            81, 000, 000
            71, 000, 000
            61, 000, 000
            51, 000, 000
            41, 000, 000
            31, 000, 000
            21, 000, 000
            11, 000, 000
             1, 000, 000
                             FY09           FY10           FY11                 FY12              FY13           FY14

GEF                        12,676,300     12,105,867     10,774,221           10,235,510        9,723,735      9,723,735
SEF                        161,532,280   154,263,327    137,294,361          130,429,643        123,908,161   123,908,161
CFEF                       39,425,880     37,651,715    33,510,027           31,834,525         30,242,799    30,242,799
Total Current FY           213,634,460   204,020,909    181,578,609          172,499,679       163,874,695    163,874,695
Total (FY08 Flat)          214,708,000   214,708,000    214,708,000          214,708,000       214,708,000    214,708,000
Flat Loss                  (1,073,540)   (10,687,091)   (33,129,391)        (42,208,321)       (50,833,305)   (50,833,305)



                                                                                                                             5
State Aid Reductions
General Education:
   Section 81 20% reduction ($1.0 million)

*State funding for ISD Operations was $95 million in FY 2003 and declined to
 $81.7 million in FY 2009
*The Governor proposed a 20% reduction to Section 81 funding which would
 reduce the statewide appropriation to $65.4 million in FY 2010


Career Focused Education:
   Section 61a 25% reduction ($97,700)

                                                                          6
American Recovery and
Reinvestment Act (ARRA)
 Title I Allocations
 Individuals with Disabilities Education Act
 State Fiscal Stabilization Fund




              ?
                                            7
Cost Containment Reductions &Measures
in Response to Declining Revenue
   Planned two year salary and wage freeze
   Fourth year of aggressive healthcare cost
    containment
   Two year moratorium on out-of-state travel
   Utility cost reduction of 8.5%
   Reductions in capital outlay, supplies, materials,
    purchase services (excluding classroom
    supplies)
   Slow down of technology replacement schedules

                                                     8
Cost Containment Reductions &Measures
in Response to Declining Revenue
   Attrition and staff reductions (20 additional FTE)
   Planned spend down of fund equity to pick up
    services local districts are cutting
   Request change in fund equity protocol from
    10% to 5%
   Re-allocating resources and cutting cost based
    on LEA priorities
   Re-allocation of costs to better match usage
    realities

                                                     9
Recent Health Plan Changes


   Implemented For Non-Bargained
            Employees Of




              May 2009



                                   10
   Oakland Schools Summary,
   Recent Benefit Plan Changes
2006      Community Blue PPO #1 (100% coverage) at no cost to employees
          Higher cost plans (i.e., Traditional) employee pays premium
           difference
          Lower cost plans (CMM and HMO) employee paid small bonus
          Mid-year (July 1) change from $5 on any prescription to $10 Generic
           and $20 Brand
          Prescriptions mandatory switch to Generic (when available)

2007      Choice plan with three medical plan choices
          Community Blue PPO #2 (90% coverage) at no cost to employees
          PPO #1 (100% coverage) employee pays any premium difference
          Flexible Blue (high deductible) employee paid bonus and H.S.A.
           contribution
          Continue to offer non-standard plans, but employees pay any cost
           difference
          Eliminate CMM and HMO bonus for Employee Premium                      11
   Oakland Schools Summary,
   Recent Benefit Plan Changes
2008
      Eliminate non-standard plans except HMO
      Community Blue PPO #2, employees pay 2% of premium
      PPO#1, employees pays premium difference plus 2%
      Flexible Blue, employee paid bonus and H.S.A. contribution
      Spousal surcharge if other coverage available (5% of two person premium)

2009
      Community Blue PPO #2, employees pay 3% of premium
      PPO#1, employees pays premium difference plus 3%
      Flexible Blue, employee paid bonus and H.S.A. contribution
      Employee costs tiered based on pay level (low of 2% to high of 6%)
      Prescription copay changes from $10/$20 to $5 Generic and $30 Brand
      Spousal surcharge raised to 6% of two person cost
                                                                              12
         Oakland Schools
         Financial Impact of Benefit Plan Changes
                     Savings Over Four Years = $ 4,039,165
       Data Source:                                                             Annual Cost
    McGraw Wentworth                                                           If No Changes
 Analysis of Actual Results
                                                                $ 6,093,773
                                                  $ 5,491,541
                                   $ 4,948,988
                                                                               Oakland Schools
                   $ 4,656,274                                  $ 1,628,613    Annual Savings
$ 4,524,888                                       $ 1,240,573
                     $ 238,637       $ 931,342
                                                                                  Oakland
                                                                                  Schools
  $ 4,524,888        $ 4,417,109    $ 4,017,646   $ 4,250,968    $ 4,465,160     Annual Cost




                       Enrolled       Enrolled      Enrolled     Enrolled
  Enrolled
                         397            400           405          402
    405


   2005                 2006           2007         2008          2009                   13
 Health Care Benefit Plan Program
UNION:
     6% cap in place – year to year carry-over
     MESSA Choices
     Prescription benefit $10 generic and $20 brand name
     Office visits $5 co-pay
     Current contract expires June 30, 2010




                                                            14
Reallocation of costs
   Historically allocation of costs for business and
    operational support to the three funds was 50% general
    fund, 25% special education fund, and 25% career
    focused education fund.
   That allocation did not represent the actual support
    given to the different funds resulting in the general fund
    paying far more than its share of those support costs.
   For building costs (utilities, custodial, etc.) we now use
    a formula that represents the square footage used by
    each of the three funds.
   For personnel support we now use a formula that
    represents the number of staff employed by each of the
    three funds.

                                                            15
Staffing Changes
   ISD staffing driven by LEA needs and requests
   Five year effort to reduce FTE in operational areas
    through attrition and reassignment
   Staff added per LEA priority areas such as the new high
    school requirements calling for more
    math/science/technology/world languages
   Continued effort to match staffing to district needs,
    reducing for low priority services and increasing for high
    priority.
   By FY 2013, reduction of a net 20.0 FTE




                                                            16
Special Education Program Change

   Autistic Spectrum Disorder Services have been
    transitioned to local districts over the past two years in
    coordination with LEA Special Education Departments
   Autism Spectrum Disorder Teacher Consultant
    services are eliminated (8 FTE) fulfilling
    implementation of a three year plan
   Creation of 3 FTE to support ASD student needs,
    net loss of 5 FTE
   $100,000 budgeted in FY 2010 for the transition of ASD
    services to the districts

                                                            17
Over 90% of Oakland Schools Budget
is Spent on Services to Local Districts

                                   8.06%
                                               FY 2010 Proposed –
                                                  $324.9 Million


 91.94%




          Transfers to LEAs & Direct Program Support - $298.7

          ISD Operations - $26.2




                                                           Dollars in millions   18
About those services to LEAs
 Services are prioritized by local
  superintendents and their staff through a
  survey done every 3-4 years.
 Usage data from District Service Report
 Feedback on services is collected
  annually from each referent group (HR,
  finance, instruction, technology, etc.)

                                              19
Oakland Schools
Programs & Services
Highlights from 2007/2008

From 2007/2008 District Service Report
Professional Development
and Instructional Services
   50,000 participants attended 1,850 PD events
   Pearson Benchmark used by 26 districts and
    Inform by 28 districts with 50% subsidy from
    ISD
   213,000 assessments administered
   4,301 of 24,704 special education students
    served
   $1,960,950 of materials to special education
    students

                                                   21
Professional Development
and Instructional Services
   Homeless/Wraparound served 1,011 students
   1,042 Back to School and 1,193 truant students
    served
   Operation GRAD online curriculum usage
    increased 66% (180,989 to 301,675 hours)
   $11,393,349 saved by districts who sent
    students to the Career Technical Campuses



                                                22
Technical Campuses
Cluster Enrollment 2007-2008

              5%
         6%                18%
                                                      Transp. Tech - 18%
   9%                                                 Health Science - 16%
                                                      EET - 12%
                                                      BMMT - 12%
 11%                               16%                Cosmetology - 11%
                                                      Culinary Arts - 11%
                                                      Constr. Tech - 9%
                                                      Agriscience - 6%
   11%                                                Visual Imaging - 5%
                            12%
              12%

                    1st semester enrollment - 2,812
                    2nd semester enrollment - 2,486
                                                                             23
Technology, Business and
Operational Services
   SPAM filtering blocked more than 1M SPAM
    emails/day and saved 16 districts $128,000
   Student information system (Zangle) saved 12
    districts $681,540
   AMS Business/Finance/HR application saved 5
    districts $428,985
   IT fielded and resolved 11,463 technical
    assistance calls from local districts
   Transportation services helped districts reduce
    bus mileage by 566,820 miles saving an
    estimated $3.5M
                                                      24
Technology, Business and
Operational Services
   $3.1M volume of cooperative purchases –
    (currently $10.4M)
   Printing/graphics produced 1,813,086 pages at
    reduced cost and free delivery to local districts
   Medicaid billing – district revenue of $5,271,079
   Fee for service support to Brandon, Clawson,
    Ferndale, Madison, Pontiac, Southfield and
    South Lyon


                                                   25
Added Program Needs in the
Proposed 2009-2010 Budget
   Additional assistance for high schools to meet
    new graduation requirements
   Added resources in formative student
    assessments aligned to state standards
   Continued growth in professional development
    around best practices
   More study and follow-up on consolidation of
    services (PA 63 & technical support)
   Increased resources for schools with AYP risk
   More external service staff placed in LEAs

                                                     26
FY 2009-10 Budget Highlights
Program Support & Subsidies
   Continuation of Benchmark/Inform subsidy - $500,000
   Expanded Math and Science support - $550,000
   Regional CTE program support
   Targeted Schools
   Chinese Language Initiative
   Literacy adoption in local districts
   Curriculum development – social studies, science, math
   Refugee Program
   $21.4 million for direct instruction of 3,400 students in high-
    end/high-tech programs at the Technical Campuses



                                                                      27
FY 2009-10 Budget Highlights
Program Support & Subsidies
   Regional Procurement Process (cooperative contract network with
    over $10.4 million of annual usage)
   ONE Network Subsidy - $1.3 million (CTN)
   CFE Transportation Reimbursement - $1.6 million
   Maintain current levels of Special Ed PA-18 funding and support -
    $147,950,000
   Special Education Center Renovations - $6,552,700
    ($23.0 million to date)
   Beverage Consortium
   Transportation Improvement Association (TIA)
   Inter-district mail services
   Technical support for AMS Applications & Zangle (student)
   Tri-County Alliance


                                                                    28
Overview of FY 2009-10
Oakland Schools Proposed Budgets
Fund Balance Target Setting Protocol
 PROTOCOL
     The proposed protocol for the development of each fund’s
      year ending fund balance target will be predicated upon:
          • 10 percent of the operating programs contained in said fund
          • Known economic liabilities or existing reserves of a specific fund
            (uncertainty of State funding: i.e. section 61a.3, section 74, Center
            program FICA & retirement)
 The fund balance target setting protocol recognizes the following
   economic realities:
        The State of Michigan’s economic environment
        The economic status of the LEAs that comprise the
         Intermediate School District.
 Oakland Schools Board of Education approved the Protocol on 3/25/2003
 Practice for the Special Education Fund is to distribute the amount in
 excess of the target unreserved fund balance.                                  30
Oakland Schools
Total Revenue Summary
     7% 0%   19%
4%

                   3%
                                FY 2010 $305.6 Million



                             Property Tax Revenue - $204.02
       67%                   State Revenue - $10.8
                             Other Local Revenue - $22.06
                             Other Financing Sources - $1.3
                             New Grant Award Funding - $57.48
                             Est. Grant C/O - $9.95

                        Dollars in millions                     31
Revenue Assumptions

   Property tax revenue decrease of 4.5%
   Expected investment rate of return is 1%
   Increased local district utilization of our Finance,
    Human Resource application, Benchmark & Inform
    system and Novanet fee-based software system.
    New: Follet, a library management system
   General Education Section 81 reduced by 20%
   CFE Section 61a3 reduced by 25%
   All other State Aid held flat

                                                       32
                           Oakland Schools Property Tax Revenue

        221, 000, 000
        211, 000, 000
        201, 000, 000
        191, 000, 000                                                  Current Property Tax Total Revenue
        181, 000, 000
        171, 000, 000
        161, 000, 000
        151, 000, 000
        141, 000, 000
        131, 000, 000
        121, 000, 000
        111, 000, 000
        101, 000, 000
            91, 000, 000
            81, 000, 000
            71, 000, 000
            61, 000, 000
            51, 000, 000
            41, 000, 000
            31, 000, 000
            21, 000, 000
            11, 000, 000
             1, 000, 000
                             FY09           FY10           FY11                 FY12              FY13          FY14

GEF                        12,676,300     12,105,867     10,774,221           10,235,510        9,723,735     9,723,735
SEF                        161,532,280   154,263,327    137,294,361         130,429,643        123,908,161   123,908,161
CFEF                       39,425,880     37,651,715    33,510,027           31,834,525        30,242,799    30,242,799
Total Current FY           213,634,460   204,020,909    181,578,609          172,499,679       163,874,695   163,874,695
Total (FY08 Flat)          214,708,000   214,708,000    214,708,000         214,708,000        214,708,000   214,708,000
Flat Loss                  (1,073,540)   (10,687,091)   (33,129,391)        (42,208,321)      (50,833,305)   (50,833,305)

                                                                                                                            33
Oakland Schools Fiscal Year 2010
Total Expenditure Budget by Type

                    6.8%
    20.3%
                       0.4%
                           3.9%       $324.9 Million
                              3.6%
                               0.4%

                                      Transfers to LEAs - $209.6

                                      Salaries & Benefits - $66.0

                                      Purchase Services - $22.2
     Cash to LEAs                     Utilities - $1.3

                                      Supplies, Materials, Dues & Fees - $12.7
                                      Capital Outlay & Other - $11.7
            64.5%
                                      Transfers to Other Funds - $1.4


                     Dollars in millions                                         34
  Budget Highlights
FY 2010 proposed non-union salary & wage changes
   The plan is to implement a wage freeze on January 1, 2010 for
   non-union staff. Non-union wages follow the calendar year, the
   wage increase is a blended number crossing fiscal years.

   The salary and wage budgets contain a 1.3125% increase for the
   three major funds’ non-union employees. The district has budgeted a
   planned wage freeze beginning January 1, 2010, therefore the weighted
   average salary and wage cost increase reflects six months comprised of
   a base increase of 1.5 – 1.75% depending on employee placement in the
   salary market range plus the cost of increments of 0.5% and six months
   of the cost progression increments only at 0.5%.



                                                                            35
  Budget Highlights
FY 2010 proposed union salary & wage changes

   This is the last year of a three year contract in which the settlement was
     1.75% on the base plus steps and lanes (1.2%) and a continuation of
     the 6% health insurance cap.

   The salary and wage budgets contain the 1.76% base increase and
     estimated 1.2% cost for steps and lanes for unionized employees
     over the FY 2009 salary and wage budget.




                                                                                36
Budget Highlights
    MPSERS retirement rate budgeted at the weighted average
     rate of 16.84% (16.94% effective October 1, 2009)
    Non union healthcare cost budgeted at annual increase of 7%
      • Minimal increase for non-union expenditure based on employee
        premium share and management of current plans
    Union healthcare subject to an annual cap of 6% increase
    Purchase Services, Supplies & Materials, Dues & Fees
     reduced by aggregate 3.7%
    Utilities reflect an 8.62% decrease from the prior year




                                                                       37
General Education Fund Summary
   Total Revenue: $25.9 Million
      Property tax – $12.1 M (46% of total revenue)
      Other local revenues – $9.6 M
      State sources revenues – $3.7 M
      Other financing source revenues – $.05 M
   Total Expenditures: $26.6 Million
      General administration – $1.8 M
      Finance and operations – $8.0 M
      Instructional services – $10.9 M
      Plant and fixed charges, transfers to LEAs – $5.9 M
            • Medicaid $4.75 million



                                                             38
  General Fund Overview
$35

$30

$25

$20

$15

$10

$5

$0
       2002     2003      2004        2005     2006      2007     2008     2009 2nd   Proposed
       Actual   Actual    Actual      Actual   Actual    Actual   Actual    Amend       2010


      Revenue   Expense      Unreserved Fund Balance         Reserved Fund Balance

                                   Dollars in millions
                                                                                                 39
Fiscal Year 2010
General Education Fund Balance
END OF YEAR:
Unreserved:                                   $ 5,377,400

Reserved:
Prepaid, Inventory and Deposits               $    35,000

Total Budgeted Ending Fund Balance     $ 5,412,400
_______________________________________________________

10% of GEF operating expenditures ($26.6 m): $ 2.6 m
State Aid exposure (sec 81):                 $ 2.7 m
Fund Balance Protocol Target:                $ 5.3 million


                                                             40
Fiscal Year 2010 District Debt

GEF Outstanding Debt Principal:                $ 5,716,300
SEF Outstanding Debt Principal:                $ 129,600
CFEF Outstanding Debt Principal:               $43,544,800
Total OS Bonded Debt:                          $49,390,700

NOTE: Debt Service for the Administration Building
Project Bond (2003) issue is pre-funded in Debt Service Fund 310
and Debt Service for the campus renovations bond (2007) is pre-
funded in Debt Service Fund 312 through FY 2014



                                                                   41
    General Fund Five-Year
    Forecast
                                Projection    Projection   Projection   Projection    Projection
                                 2009-10       2010-11      2011-12      2012-13       2013-14

Revenue:                         25,958,100   24,903,261   25,562,403   24,198,119    24,343,796
Expenditures:                    26,605,400   25,032,671   25,341,996   25,773,434    26,489,883

Operating Excess (Deficit)        (647,300)    (129,410)      220,407   (1,575,315)   (2,146,087)


End of Year Fund Balance:
Reserved: Prepaid, Inventory
               and deposits          35,000       35,000       35,000            0             0

      Unreserved/Designated       5,377,400    5,247,990    5,468,397    3,928,082     1,781,995

                        Total     5,412,400    5,282,990    5,503,397    3,928,082     1,781,995




                                                                                              42
ISD Budget Resolution
Revised School Code 380.624 - Overview
1. Not later than May 1 of each year, the ISD shall submit
   proposed budget for next fiscal year to the board of
   each constituent district for review
2. Not later than June 1 of each year, the board of each
   constituent district shall review the proposed ISD
   budget, shall adopt a board resolution expressing its
   support for or disapproval of the proposed budget
3. Mail copy of resolution indicating support or
   disapproval (with rationale) to the Oakland Schools
   Board of Education

                                                        43
General Education Fund
   Questions & Comments




                           44
Special Education Fund Summary
    Total Revenue: $161.7 Million
       Property tax – $154.3 M (95% of total revenue)
       Other local revenues – $1.4 M
       State sources revenues – $6.0 M


    Total Expenditures: $173.6 Million
       Program supervision and direction – $3.1 M
       Program operations – $9.6 M
       Plant and fixed charges – $6.7 M
       LEA transfers and program subsidies – $154.2 M




                                                         45
  Special Ed Fund Overview
$180
$160
$140
$120
$100
 $80
 $60
 $40
 $20
  $0
        2002     2003     2004      2005     2006     2007     2008     2009 2nd Proposed
       Actual   Actual   Actual    Actual   Actual   Actual   Actuals    Amend     2010

   Revenue        Expense         Unreserved Fund Balance       Reserved Fund Balance


  *FY 2004 contains “one time” operating adjustment for prior years
                                                                                            46
  **Dollars in millions
Fiscal Year 2010 Special Education
Program Support & Subsidies
 PA-18 Base Distribution              $ 141,900,000
 Start-up Contingency                 $ 1,700,000
 Extraordinary Contingency            $     500,000
 District Support - ASD               $     100,000
 Section 24 subsidy                   $     100,000
 Group Homes                          $ 1,200,000
 Havenwick                            $     150,000
 SEI Regional Day Treatment           $ 1,400,000
 Michigan Rehab Services Cash Match   $     180,000
 Center Program Renovations           $ 6,552,700
 Total                                $ 153,782,700


                                                      47
      Oakland Schools Special Education
      Expenditure Budget Comparison
                                                                                                  Transfers to LEAs
                                                                                                  OS Operations
180

                                                                            160.7
160                                                                                    153.8        154.2
                             145.8                              143.4
                                         137.8
140                                                  134.7

                                                                                                                Dollars in millions
120
                  110.09
       106.9

100


80


60


40
                                 27.4
                      23.4
           18.5                                                     17.66       18.6       19.6         18.9
                                             16.02       16.9
20


 0
       FY 2002    FY 2003    FY 2004 -   FY 2005     FY 2006    FY 2007     FY 2008    2009 2nd    Proposed
       Actual     Actual      Actual     Actual      Actual     Actual       Actual     Amend        2010


      *External services with offsetting revenue not included in FY 2010 OS Operations                                       48
       PA-18 Base Distribution
       FY 2003-2014                                                          Trend Line: Red
                                                                             After Property Tax Decline: Blue




180

                                                                                                                $171.0
                                                                                                       $167.0

160                                                                                           $160.0
                                                                                     $155.0

                                                            $142.1        $148.0

140                                            $141.9            $141.9
                                                        $141.9
                    $128.4
                                      $133.7
                             $130.9
                                                                            $125.4
120
                                                                                     $118.6
               $112.0                                                                                           $111.6
                                                                                              $111.6
      $109.5

100
 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

                                               Dollars in millions                                                   49
Fiscal Year 2010
Special Education Fund Balance
END OF YEAR:
Unreserved:                                    $ 5,884,900
Reserved:
Prepaid, Inventory and Deposits                $    38,700

Total Budgeted Ending Fund Balance             $ 5,923,600




10% of SEF operating expenditures ($19.2 m):   $ 1.9 m
State Aid exposure (sec 51a, 51a.8)            $ 3.9 m
Fund Balance Protocol Target:                  $ 5.8 million

                                                               50
Special Education Five-Year
Forecast
                              Proposed       Projection       Projection       Projection       Projection
                               2009-10        2010-11          2011-12          2012-13          2013-14

Revenue:                      161,692,400    144,902,902      138,289,333      131,868,955      132,035,927
Expenditures:                 173,559,300    149,771,342      138,336,328      131,871,354      132,024.083


Operating Excess (Deficit)    (11,866,900)    (4,868,441)        (46,995)           (2,398)          11,844



End of Year Fund Balance:

Reserved Center Program
    Facility Renovation                  0                0                0                0                0
      Reserved/Designated          38,700                 0                0                0                0
    Unreserved/Designated       5,884,900      1,055,159        1,008,164        1,005,766        1,017,609

                      Total     5,923,600      1,055,159        1,008,164        1,005,766        1,017,609




                                                                                                                 51
Special Education Fund
   Questions & Comments




                           52
    Career Focused Education Fund
    Summary
   Total Revenue: $39.6 Million
      Property tax – $37.7 M (95% of total revenue)
      Other local revenues – $0.7 M
      State sources revenues – $1.1 M
      Other financing source revenues – $0.1 M


   Total Expenditures: $38.0 Million
      Campus and other program administration – $25.8 M
      LEA transfers and direct program operations – $5.4 M
      Facility and technology maintenance/renovations – $0.2 M
      Plant and fixed charges – $6.6 M




                                                                  53
  Career Focused Education
  Fund Overview
$60


$50


$40


$30


$20


$10


 $0
       2002      2003     2004       2005     2006       2007     2008     2009 2nd     2010
      Actual     Actual   Actual     Actual   Actual     Actual   Actual    Amend     Proposed

               Revenue    Expense       Unreserved Fund Balance     Reserved Fund Balance

                                                                                                 54
                                   Dollars in millions
Fiscal Year 2010
Career Focused Education Fund Balance
 END OF YEAR:
 Unreserved:                                   $ 10,849,000
 Reserved:
 Prepaid, Inventory and Deposits               $      67,200

 Total Budgeted Ending Fund Balance     $ 10,916,200
 _______________________________________________________


 10% of CFEF operating expenditures ($38.0):   $ 3.8 m
 State Aid exposure (sec 61a.3):               $ 1.1 m
 Fund Balance Protocol Target                  $ 4.9 million

                                                               55
    Career Focused Education
    5-Year Forecast

                             Proposed     Projection    Projection    Projection    Projection
                              2009-10      2010-11       2011-12       2012-13       2013-14

Revenue:                     39,568,525   35,467,718     33,875,679   32,315,388    32,331,107

Total Expenditures:          38,044,600   36,552,362     34,816,192   35,611,416    36,296,487

Operating Excess (Deficit)    1,523,925   (1,084,644)     (940,514)   (3,296,028)   (3,965,380)



End of Year Fund Balance

               Unreserved    10,916,725    9,832,081      8,891,567    5,595,539     1,630,159




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Career Focused Education Fund
   Questions & Comments




                                57
Proposed Grants and Funded
Projects Summary
   Total dollar award value of all current grants
    and funded projects:        $67.5 Million
       • New Awards             $57.5 Million
       • Carry Over             $10.0 Million
   Direct transfer to districts: $43.5 Million
   ISD administered grants and projects: $24.0
    Million (Includes JobLink $5.5M)



                                                     58
    Other Funds
   Cooperative Activities Fund 270 – Collaborative
    Program Development Initiative (CPDI)
   Cooperative Activities Fund 271 – Oakland Network
    for Education (ONE)
   Debt Service Fund 310 – Administrative Building
    Bond 2003: 15 years, ending 2018
   Debt Service Fund 311 – AMS Bond 2004: 6 years,
    ending 2010
   Debt Service Fund 312 – CFE Campus Renovations
    Bond: 29 years, ending 2036


                                                        59
Other Funds
   Capital Projects Fund 404 - CFE Technical Campus
    Renovations Phase II Project (finalize project in 2009)
   Capital Projects Fund 406 – Admin Bldg Renovation &
    Maintenance
   Production Print Fund 710 – Enterprise Fund
   Risk Related Activity Fund 810 – Internal Service Fund




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Questions & Comments