Sample 2010-11 School District

Budget Projections

CTBA – State Deficit Problems

State of the State• Illinois is estimated to be $13B in debt• Federal Funds via ARRA replaced $922M of

state funds per year for the last two years• ISBE presented a flat budget for FY 2011• In order to fund this flat budget Illinois needs

to generate $1B in additional revenue• Current political climate may not allow for

additional revenue generation

Governor Quinn’s Budget Proposal

• $2B across the board cut in state spending

• $1.3B from K-16 schools– 17% decrease

• GSA Foundation Level estimate $5,669– Cannot fall below 2006 level of $5,500 due

to ARRA maintenance of effort

Foundation Level History

Quinn Budget• GSA cut by $613M

– Foundation Level at $5,669– Flat Grant Cut to $0– GSA Hold Harmless -$16M (-100%)

• MCATS cut $402M– Early Childhood -$54M (-16%)– Extraordinary Sp Ed -$66M (-20%)– Reading Improvement -$36M ( -53%)– Regular Transportation -$65M (-19%)– Textbook Loans -$40M (-100%)– Billingual Education -$20M (-30%)

Illinois Payments to Districts

• Illinois failed to make two payments for Mandated Categorical Grants for FY 2009.

• These were made in summer 2009• So far this year the state has made only one

MCAT payment• It is anybody’s guess if they will make another one or

more• State is behind 120 days in paying its bills

State of the District

• Put in here what you think of your district’s budget in three bullet points or less

• Example– Overall revenue is down 17%– Recommend holding line on all spending and RIF

at least three certified and three non-certified positions

– Will deficit spend for FY 2011 and fund balances will decrease by 50%

Start slides here with your variables and predictions

Expenditures

• Salaries estimated @ 3%• Fringe Benefits @ 5%• Purchased Services and Supplies & Materials

at 1%• Capital Outlay at $0

Other Highlights

• Reduction of three teachers for FY 2011• No new buses purchased• Student fees increased by 100%• Donations increased by 100%

– Education Foundation

Enrollment

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

480

500

520

540

560

580

600 594

584

574567

535

556

533

521

533

521518 520 520

District Enrollment

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

($1,000,000)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

District's Summary of Operations(Operating Funds Only)

Revenue Expenditures Ending Fund Balance

**2002**

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(0.50)

(0.40)

(0.30)

(0.20)

(0.10)

0.00

0.10

0.20

0.30

0.10 0.09

0.16 0.18

0.11 0.14

0.17 0.15

0.16 0.13

0.04

(0.06)

(0.18)

(0.30)

(0.44)

Fund Balance to Revenue Percentage

Could stop here!

Three Scenarios

• Scenario 1– GSA @ $5,669– No Cuts– Freeze salaries– Deficit spend by

$800,000– Fund Balance from

$1.0M to $200,000

• Scenario 2– GSA @ $5,669– Cut 3 teachers, 3 SSP, 1

administrator– Freeze salaries– Deficit by $500,000– Fund Balance from

$1.0M to $500,000

• Scenario 3– GSA @ $5,500– Cut 3 teachers, 3 SSP, 1

administrator– Freeze salaries– Deficit spend by $1.2M

thus need to borrow $200,000 and spend all reserves

2010 2011 2012 2013

-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Operating Funds Balance

Revenues Expenditures End Balance

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(2,000,000)

(1,000,000)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Education Fund

Revenues Expenditures Fund Balance

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

O&M Fund

Revenues Expenditures Fund Balance

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

500,000

600,000

Transportation Fund

Revenues Expenditures Fund Balance

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013($400,000)

($200,000)

$0

$200,000

$400,000

$600,000

$800,000

FOUR OPERATING FUNDS (Ed., O&M, Trans., & WC) BALANCE

More Assumptions for the 2010-2011 Budget

EAV

  Actual 1999 Actual 2000 Actual 2001 Actual 2002 Actual 2003 Actual 2004

Percentage Increase from

Prior Year

Residential 274,846,412 288,748,099 304,782,660 320,941,371 341,444,137 361,149,965 5.77%

Farm 21,191,727 21,272,589 20,055,196 19,051,390 17,724,382 16,887,436 -4.72%

Commercial 31,140,835 38,007,053 42,351,529 42,591,475 47,615,737 51,529,703 8.22%

Industrial 707,025 707,025 707,025 707,996 715,829 723,345 1.05%

Mineral 222,633 215,317 215,317 213,442 213,442 213,442 0.00%

Railroad 934,022 826,060 873,667 912,247 952,923 890,972 -6.50%

Total 329,042,654 349,776,143 368,985,394 384,417,921 408,666,450 431,394,863 5.56%

New Property 13,171,391 15,273,524 11,678,146 10,889,850 15,201,420 19,336,173 

EAV by Category

Estimates Used for FY 2010-11Education Fund Projections

• Local Funding– Local EAV

• Tax Caps? (CPI)– TIF or Enterprise Zones?– Local revenue in lieu of taxes

• CPPR trends?– Tuition (General, Summer School,

Vocational, Adult)– Earnings on Investments

• Is fund balance going up or down?• What is happening to interest

rates?– Food Sales– Athletic admissions, fees,

textbooks

– Levies (Local Taxes)• General• Tort

– What is impact of lawsuits?

• Leasing• Special Education• Social Security/Medicare

Detail on this slide various factors you used to make both revenue and expense projections.

State Funding

• General State Aid– Property Wealth Per Student

• Inverse relationship to State Aid– Foundation level

• THIS YEAR THIS NUMBER IS CRITICAL

– ADA enrollment– # of low income students

– Categorical Funding• Special Education (Private

Facility, Extraordinary, Personnel, Orphanage, Summer School)

• Vocational Education• State Free Lunch• Driver Education• Early Childhood Block• Reading Improvement• School Safety & Education

Block Grant

Federal Funding• Title Programs

– Title I– Title IV Safe and Drug Free– Title II Teacher Quality

• National School Lunch Program

• School Breakfast Program• Federal Special Education

• Medicaid Matching– Administrator Outreach– Fee For Service Provider

Education Fund Expenses• Expenditure variables

– Estimate of salary and fringe benefit increases

• To get an accurate accounting of salary you need to keep separate spreadsheets with detail

– Estimate of supply, purchased services and capital outlay expenses

– Any increase or decrease in staff?– How many teachers are retiring?– Any major expenditures such as

computers, smartboards, etc…

• Grants– Improvement of Instruction– Title I– Early Childhood Block– Reading Improvement– School Safety & Education Block

Grant• Other

– Superintendent salary cost cap provisions

– Payments to Other Gov’t Units• Special Education tuition• Vocational tuition

– Other tuitions– Contingency

ESTIMATING CERTIFIED STAFF SALARIES IS VERY IMPORTANTKEEP A SECOND SPREADSHEET

AND UPDATE OFTEN

O&M Fund

• Revenue– Local taxes

• EAV• Lease• Tort• CPPR• Investment income• Renting of facilities

– Are you going to deposit any GSA into O&M Fund?

• Expenses– Salaries & Fringe

Benefits– PS – utilities– Any capital projects?– Contingency

Transportation Fund Revenue

Local taxes EAV Lease Tort Investment income Renting of buses

Are you going to deposit any GSA into Transportation Fund?

Expenses Do you own vs. lease? Salaries & Fringe Benefits How many new buses? Contingency