GF 2009/10 Budget Development

Presented to Board of Education

May 11, 2009

Presentation Outline

• Significant reductions since 2002 • PPS administrative costs are some of

lowest in State– The “easier” reductions have already been

taken.

• State financial situation clearly indicates difficult times ahead

• Future reductions are very difficult since they impact staff and students

Significant Cuts Started Seven Years Ago …

• 2002/03 $500,000– Director of El Education– AMB Asst. Principal– Two custodial floaters (from 4)– Summer custodial assistance– Reorganized central services– Eliminated capital outlay– Middle school technology support

reorganized– Hardware technician position– Reduced professional develop by

4%

• 2003/04 $1,100,000– Employee participation in health

insurance costs– Instructional materials reduction– Energy conservation program fully

implemented– EFE/EFA Reductions– Outsourced sub teacher process– Two custodial floaters (to zero)– Outsourced Driver Education– Reduced central services FTE 1.0– Reduced PEP teacher FTE 1.0– Payroll/Accounting Clerk 1.0– Central Office Secretary 1.0– Outsourced Facilities Secretary– Reduced Reading program support

by .50 FTE– Capital outlay, supply budgets

… and Continued After Enhancement Millage

• 2004/05 $785,000– Employee participation in health

insurance costs– Add’l administrative reductions– Reduce secretarial position 1.0– Reduce two teacher positions via

attrition. – Technology Dept reductions 1.0– Outsourced Curious Kids staff– Secondary purchased services,

supply reductions including athletics.

– Reductions to parapro’s and secretarial subs.

– Special education staffing reductions

– Field Trips

• 2005–2008 $1,394,000– Two maintenance positions cut– Two maint. positions outsourced– Custodial supervisor outsourced– Six full time 2nd/3rd shift custodial

positions outsourced by attrition – Sub teacher service provider– Athletic coaches to service provider– Direct purchase of electricity– FTE reductions at secondary– Testing supplies & software– Business/HR position cut– Admin secretary position cut– Strategic planning FTE cut– Casualty insurance deductible– Food Group indirect cost charge– Board salaries and meeting meals– Copier lease extension

PPS Administrative CostsRank in LOWEST 10%

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Business & Admin Oper & Maint

State Avg

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State Avg

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Source: 2007/08 MDE Bulletin 1014

Kalamazoo County DistrictsPPS Has Lowest Administrative Costs

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KPS

Climax

Comstock

Galesburg

Gull Lake

Parchment

Portage

Schoolcraft

Vicksburg

Oakland Acad

Advantage Acad

Paramount Acad

Source: 2007/08 MDE Bulletin 1014

MEAP Comparator DistrictsOnly 1 District with Lower Administrative Costs

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1600

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st P

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tud

ent Forest Hills

Grand Blanc

Grosse Pointe

Midland

Rockford

Portage

Source: 2007/08 MDE Bulletin 1014

Kalamazoo Gazette – Tuesday, May 5, 2009

Portage Public Schools2009/10 Budget Scenarios

GF Revenues 77,615,000 78,234,000

GF Expenditures79,453,000 79,048,000

Deficit (1,838,000) (814,000)

More Conservative

More Aggressive

Presented to Board on March 9, 2009

P.P.S. Options For Budget CrisisFund Balance Could Absorb $940,000

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PPS Options For Budget CrisisRevenue Enhancement

• Very small potential in this area

• Pay to participate in all extra curriculars– Estimate of $150,000– Time consuming implementation

• Various user fees– Estimate of $40,000

PPS Options For Budget CrisisExpense Reductions

– Enlarge required walk zones 100,000– Custodial services 200,000– Reduce building supply budgets 85,000– Eliminate middle school athletics 205,000– Reduce Professional Development 104,000– Reduce instructional support services 1,130,000

Impact of ARRA Stimulus Funds

• Three Significant Allocations– State Fiscal Stabilization Fund– IDEA Part B– Title I

• Conceptually for Three Year Period– Current Fiscal Year (08/09)– Next Fiscal Year (09/10)– Fiscal Year 10/11

Let’s Look at Each Allocation over the three year period

ARRA State Fiscal Stabilization

• Current Fiscal Year 2008/09– School Aid Fund deficit projection $420M or $259/pupil – Questions exist on how funds can be spent– When will funds be available? Impact to cash flow?

• Next Fiscal Year 2009/10– SAF deficit projection $956M or $555/pupil– Likely reduction in categoricals– Deficits of these two years exceeds $1.3B funding available

• Higher education is suppose to also receive this funding

• Fiscal Year 2010/11– At the “Cliff”– MPSER’s retirement rate up due to stock market losses

Stimulus Funding - IDEA Part B

• Based on KRESA meeting today• Current Fiscal Year 2008/09

– No impact• Next Fiscal Year 2009/10

– Total eligible $622,255– 50% option ($311,000) to supplant– Balance of ($311,000) for new expenses

• Fiscal Year 2010/11– Total eligible $622,255– 50% option ($311,000) to supplant– Balance of ($311,000) for new expenses

ARRA – Title I Funding

• Current Fiscal Year 2008/09– No impact

• Next Fiscal Year 2009/10– Total eligible $423,000– We are assuming that approximately $290,000 of

current expenditures will qualify for this funding

• Fiscal Year 2010/11– Total eligible $423,000– We are assuming that approximately $290,000 of

current expenditures will qualify for this funding

PPS 09/10 Budget Calendar

• May 15 State Revenue Conference

• May 18 Update Board on State Budget

• June 1 Preliminary budget discussed

• June 15 Community Input, Required Public Hearing, Adoption