Public Hearing on the 2010-2011 District Budget

June 7, 2010

2010-2011 Budget

Educating and inspiring each student to navigate successfully in a global

community.

The budget is a product of our strategic plan

Budget PresentationReview of projections from April meeting

Changes to budget assumptions since AprilState funding – revenue conference

Student enrollment – Kindergarten numbers

Accounting rule change – GASB 54

Revised budget projection

Revised budget reduction recommendationGeneral Fund Budget Proposal

Other Funds Budget Proposal

District Expense Trends

Discussion & Questions

2010-11 Budget(April Board Meeting)

2010-11 Budget

Revenues: $26,710,000

Expenses; $28,975,072

Net Chg in Fund Balance ($2,265,072)

• Key Assumptions:

• $250 decrease in per-pupil funding ($7,452)

• Health Care increase: 13.4%

• Retirement Rate: 19.41%, up from 16.94%

• No change in staffing levels, 0% base increase, step increase (1.8%)

• Utilities: 10% increase

Changes to Budget Assumptions

Per-pupil funding:April: Budgeted for $250/pupil cutRev. Conference: Projection increased by $352 million for 10-11Revised budget assumption: No cut in funding for 2010-11

Increases projected revenues by $741,250

Student Enrollment:April: Budgeted for 2,995, same as this yearYoung 5’s/Kindergarten: April – 240, now expect 200Revised budget assumption: 2,965, decrease of 30

Decreases projected revenues by $231,060

UtilitiesApril: Budgeted for 10% increaseLocked natural gas at 09-10 prices, $30,000 savings

Other Budget VariablesTaxable Values:

East Grand Rapids:Overall taxable value down 1.4%Non-Homestead values down 2.0%

Kent County:Taxable Value down 5.1%

Taxable Value impact on budget:East Grand Rapids values:

Recreational Millage: Loss of $11,000 in revenue compared to 09-10Non-Homestead: No impact on budget, but larger share of per-pupil funding from Lansing.

Kent County taxable values:Act 18 Special Education: Loss of $58,000 in revenue compared to 09-10

Retirement Contribution Rate:Been told to budget for 19.41%Actual rate later this year after impact of retirement incentive is known

GASB 54 Accounting Standard

Accounting Standard that goes into effect for 2010-11Improved classification & definition of fund balanceRevised definition of “special revenue” funds

Athletics & Food ServiceUnless revenue almost offset expenses, no longer considered a “special revenue” fund, must be included in General Fund

Impact:Definition of fund balance – nothing materialSpecial Revenue Funds

Athletics will no longer be its own fund, and will be included in the General FundNo impact on projected deficit, but will inflate revenues and expenses in the General Fund compared to prior projections

2010-11 Budget(Current Projection)

2010-11 Budget

Revenues: $27,450,416

Expenses; $29,186,235

Net Chg in Fund Balance ($1,735,819)

• Key Assumptions:

• No change in per-pupil funding ($7,702), $115/pupil of fed stabilization

• Health Care increase: 13.4%

• Retirement Rate: 19.41%, up from 16.94%

• No change in staffing levels, 0% base increase, step increase (1.8%)

• Utilities: 10% increase for electricity, 0% increase for heat

• Student Enrollment at 2,965, decrease of 30 from 2009-10

Revised Cuts & Use of Fund Balance2009-10 2010-11 2011-12

Revenues $27,487,654 $27,450,416 $27,617,426

Expenses $28,072,288 $29,186,235 $29,950,039

Use of Fund Balance ($584,634) ($1,735,819) ($2,332,613)

Bdgt. Adjustments $1,218,500 $1,218,500

$0 $400,000

Revised Use of Fund Bal ($584,634) ($517,319) ($714,113)

Ending Fund Bal $ $4,099,184 $3,581,865 $2,867,752

Ending Fund Bal % 14.4% 12.8% 10.1%

Categorizing the recommendations:Support ServicesAdministration & Administrative SupportAthleticsStudent Support ServicesStudent Programs & Services

Projected savings:Original (April recommendation)Revised (Budget Hearing recommendation)Changes shaded in red

Budget Committee Recommendations

Budget Committee Recommendations(Support Services)

Original Revised

Replace MS teachers monitoring lunch w/aide $16,000 $16,000

Custodial Cost Reductions $350,000 $350,000

* Reduce by 1.0 FTE, outsource Woodcliff/HS Pool

* Tentative agreement w/custodial group

Discontinue Print Center service $41,000 $41,000

* Distribute equipment to bldg’s, staff runs print jobs

Eliminate funding for noon hour office para’s $11,500 $0

* Principals to organize volunteer program

Reduce Technology staffing by 1.0 FTE $51,000 $0

* Increased response time for technology issues

Total Support Services $469,500 $407,000

Budget Committee Recommendations(Administration & Administrative Support)

Original Revised

Food Service provided by Grand Rapids Public $50,000 $50,000

Reduce PAC management costs by 50% $45,000 $0

Reduce central office support by 1.0 FTE $50,500 $50,500

Combine HS Registrar & Guidance Ofc. sec. $50,500 $50,500

Decrease administrative costs $140,000 $130,000

* Combine Spec Ed & Child care director(s)

* Director of Technology 0.8 FTE, 0.2 MS

* 2% base salary reduction

- No step increase, 20% decrease in health (Feb)

Reduce HS admin secretarial by 0.5 FTE $25,000 $25,000

Total Administration & Administrative Support $361,000 $306,000

Budget Committee Recommendations(Athletics)

Original Revised

Eliminate funding for MS Athletics $75,000 $0

* District reviewing options to maintain opportunity

Eliminate HS Wrestling program $20,000 $0

Reduce cost of HS Wrestling program by 50% $0 $10,000

Total Athletics $95,000 $10,000

Budget Committee Recommendations(Student Support Services)

Original Revised

10% Building/Department budget reduction $80,000 $80,000

Convert 10 extra work days for HS/MS counselors to Flex leave days during school year

$12,000 $12,000

Restructure Media Centers: $223,000 $123,000

* Combine MS/HS specialist, maintain 0.4 at elem.

* Reduce elementary para’s from 35 to 20 hours/week

Reduce Spec Ed itinerant staffing by 1.0 FTE $80,500 $35,000

* Visually impaired teaching staff combined at KISD

Eliminate funding for K & 1st grade para’s $67,500 $0

* Principals to organize volunteer program

Total Student Support Services $463,000 $250,000

Budget Committee Recommendations(Student Programs & Services)

Original Revised

Consolidate 4 3rd sections into 3 4th grade sections at Lakeside

$60,500 $60,500

* Worked collaboratively with Lakeside staff

Eliminate General Ed Social Work $75,000 $0

Reduce Gen Ed teaching staff at HS by 1.0 FTE $60,500 $60,500

* Discontinue PE/Health block 0.4 to 0.6 FTE

* Reduction in offered electives for remainder

Eliminate 0.5 FTE Intervention Specialist $45,000 $0

* Reduction in assistance for struggling Gen Ed

students

Budget Committee Recommendations(Student Programs & Services, continued)

Original Revised

Reduce Special Education Social Work $36,000 $36,000

* 0.1 FTE at each elementary, ECHC & HS

Discontinue district funding for Youth Dev. $50,000 $0

Reduce HS Spec Ed teaching by 0.4 FTE $28,000 $28,000

* Consolidation of two Academic Support Center

classes

Reduce MS Counselors from 2.0 to 1.0 FTE $60,500 $60,500

* Programs and services for students cut back

Total Student Programs & Services $415,500 $245,500

Budget Committee Recommendations(Summary)

Original Revised

Support Services $469,500 $407,000

Administration & Administrative Support $361,000 $306,000

Athletics $95,000 $10,000

Student Support Services $463,000 $250,000

Student Programs & Services $415,500 $245,500

Total Reduction Recommendations $1,804,000 $1,218,500

Summary of Reinstated ItemsNoon Hour office parapro’s $11,500

1.0 FTE Technology staff position $51,000

50% reduction in PAC management $45,000

Director of Technology & Assessment teaching a class at MS $10,000

MS Athletics $75,000

50% of cost of HS Wrestling $10,000

0.4 elem. media specialist, 20 hrs/wk media parapro $100,000

Special Education Itinerant staffing $45,500

K & 1st grade parapro’s $67,500

General Education Social Work $75,000

0.5 FTE Intervention Specialist $45,000

Youth Development Funding $50,000

Total Reinstated Items $585,000

2010-11 General Fund BudgetProposed Budget

2010-11 Budget

Revenues: $27,450,416

Expenses; $27,957,735

Chg in Fund Balance ($517,319)

Beginning Fund Equity (7/1/10) $4,099,184

Ending Fund Equity (6/30/11) $3,581,865

Ending Fund Equity % 12.8%

Sinking Fund Budget

2009-10 2010-11 Change

Revenues $280,771 $281,840 $1,069

Expenses $485,000 $138,000 ($347,000)

Net Chg ($204,229) $143,840 $348,069

Fund Bal $1,001,263 $1,145,103

Debt Retirement Fund Budget2009-10 2010-11 Change

Revenues $4,536,320 $4,472,877 ($63,443)

SBLF $1,747,386 $1,865,517 $118,131

Tot Rev $6,283,706 $6,338,394 $54,688

Expenses $6,303,706 $6,338,394 $54,688

Net Chg ($20,000) $0 $0

Fund Bal $130,117 $130,117

Revenue vs. Expense

69.6%

49.4%

17.6%14.6% 13.7%

6.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2010-11 Budget vs. 2002-03 actuals (9 years)

Health CareRetirementUtilitiesBase SalariesStep SalariesPer-Pupil Funding

General Fund Budget(How has the district managed?)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

'02-03

'03-04

'04-05

'05-06

'06-07

'07-08

'08-09

'09-10

'10-11

New RevenueExp. Reductions

East Grand Rapids Schools Balancing Act (Cumulative)

Historical Expenditures

2006-07

2007-08

2008-09

2009-10 (B)

2010-11 (B)

Instruction 58.0% 58.2% 57.4% 58.5% 60.9%

Instructional Support 10.5% 10.6% 11.1% 10.6% 9.7%

Admin & Support 12.3% 11.8% 11.9% 11.3% 11.2%

Support Services 16.6% 16.8% 17.0% 17.0% 15.5%

Co-curricular’s 2.6% 2.5% 2.6% 2.6% 2.7%

Total 100% 100% 100% 100% 100%

SummaryState’s economic issues have placed schools in an precarious financial situationHopefully, the May revenue predictions are accurate, and the state’s economy is poised to growState has a responsibility to stabilize school funding, and assist with cost controlBudget cuts are starting to impact programs and services and with future stagnant funding, will seriously impact programs and servicesDespite the level of recommended budget reductions, EGR will offer an excellent educational program next school year

2010-2011 Budget

Educating and inspiring each student to navigate successfully in a global

community.

The budget is a product of our strategic plan

Questions?