Preliminary Budget Analysis

October 2, 2011Sean B. Fox, Carrie L. McDermott, and Lisa M.

Omeis

Expenditures: 2012-2013

Budget Increase

$4.6 million $1.4 million in salaries

$3.2 million in benefits (pension, health insurance)

Represents a 5.38% (Levy not Rate)

No increase in any other portion of the budget Property tax cap applies to the levy,

not the rate which is governed by assessments and equalization rates.

Revenue Projections: 2012-2013

Revenue Projections: Best Case Scenario

Loss of Federal Jobs Stimulus money $1,566,651

Anticipated 4% increase of State Aid $1,460,653

Resulting in a reduction in State Aid by $105,999

Implications of a Property Tax Cap

60% majority override by voters if the budget exceeds the cap (district has not had a 60% majority in recent memory)

Over the course of four years, the district will not be able to meet its educational or fiduciary obligations as we run through our fund balance and reserves if the cap did not include other cost savings measures

Disconnect among the public’s understanding of a tax cap and its impact on public services

Implications, Exclusions, and Concerns of the Tax Cap

Implications of the Property Tax Cap – 2% Maximum allowable increase under tax cap $1.7 M

Total required for projected expenditures $4.6 M

Total difference (ex: cuts) $2.9 M

Exclusions to the Property Tax Cap? Anything above 2% of pension costs is excluded

Concerns of Tax Cap 50.1% Voter approval for a 2% budget cap

60.1% Voter approval for a budget in excess of 2% cap

2 defeated budget votes is equivalent to a o% budget increase

Visual Ramifications2% Tax cap

budgetDefeated

budget with 0% increase

Rollover budget: $4,565,894Tax cap: -$1,736,195

Total cuts needed: $2,935,698

No increases allowed:

Total cuts needed: $4,565,894

Loss of programs

Full day kindergart

en

Intramurals

Clubs

Athletics

Music & Art

Large class sizes

Loss of Electives

After school

programs

Redesigned

intervention

programs

Budget: 2012-2013

Administration will present a budget with a 4% tax levy increase and a 2% tax levy increase

Decision?

Present a budget at the cap

Present a palatable budget to the community for an override

Approach for identifying areas for reduction

Prioritized list

What does the community value?

Possible survey

Proposed Program Reductions and

Eliminations Printing

Security

Grounds Maintenance

Postage/Printing

Para Professional/Aids

Monitors

Clubs and Intermurals

Census

Orion Program

In-View Test Supplies

Total Proposed Savings: $3.1 million

Athletic Uniforms

5% Reduction in office and instructional supplies

Interscholastic supplies

2% Reduction in Health Insurance

Eliminate ten teaching positions

4th Grade Instrumental

½ Kindergarten

1 Art

1 Physical Education

1 Music Education

1 Library Science

2 Orion Educators

4 Elementary Educators