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Topics for Discussion. School Aid Budget Highlights of State of the State Impact for Kalamazoo RESA Knowns and Unknowns. Employee Compensation and Benefit Changes For Kalamazoo RESA 2013-2014 school year. Program Highlights and New Initiatives Kalamazoo RESA. Legislative Update. - PowerPoint PPT Presentation
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Topics for Discussion
Legislative Update
School Aid Budget
Highlights of State of the StateImpact for Kalamazoo RESA Knowns and Unknowns
Employee Compensation and Benefit Changes
For Kalamazoo RESA 2013-2014 school year
Program Highlights and New Initiatives
Kalamazoo RESA
Snapshot: Michigan’s Economy
Modest growth in revenues
Surplus expected for 2013 & 2014 budget
One of the biggest pressures on the budget is the increased cost of MPSERS – we expect much of the surplus to be directed here.
Road funding debate could play a big part in the decision making which could effect revenues to schools – watch for tax policy changes
Unemployment rate has been steady at 8.5%
Modest gains in employment in the private sector but continued decline in the governmental sector
Positive growth in real estate and auto markets
Statewide estimate for wage and salary growth for FY 2014 is 0.8% With overall personal income projected to grow 1.9%
EAA
Possible ISD Role
Roads
Impact on School Aid Fund Budget
Common Core and SBAC
Uncertain future
Skunkworks project
Now assigned to MDE
School Aid Budget Process
Conference report draft issued May 23rd
Governor has set goal of June 1st for completion
Legislation to watch
Three varying versions:Executive, House, Senate
Major Factors:Foundation allowance $0-$100/pp for lowest funded districts ($30-60 in conference report)Equity payment - $0-$34/pp for lowest funded districts (up to $50 in conf rpt)80-100% funding for cyber schools (not included in conf rpt)Pupil Count Changes80/20, 80/20 current year, 90/10 current year, new online enrollment options(90/10 current year – conf rpt)Best Practices Language $0-$16/pp for LEAs ($52 conf rptPerformance $30/$30/$40)Consolidation of Services incentive grants eliminatedTechnology Readiness Grants$0-$50,0000,000 ($50 M conf rpt)
ISD State Aid Same as
2012-2013 with 0-3.2% if Best Practices met (3.2% in conf rpt)
GSRP various levels of Increased slots and per pupil allocation
MPSERS contribution rate 20.96%-24.79%Balance to be paid from 3% escrow fund and $150 million reserve fund
Continues transfers to community colleges and universities
Continues most categoricals at current year funding
Kalamazoo RESA’s strategy is to balance the budget through various approaches
State Budget: Proposal
General Fund Revenues No increase in taxable values No increase in State Aid (possible reduction) Grant changes – reductions and increases Reduction in Federal revenue due to Sequestration Changes made in Fee for Service Models
Special Education Revenues No increase in taxable values No or minimal increase in State Aid Reduction in Federal revenue due to Sequestration
KRESA Budget Highlights
Approved by the Board of Education on May 16
Average of 2% increase in salary schedules
Steps frozen for all employees
Add Step 25 to Grade 17 salary schedule to maintain competitiveness with local districts along with other market adjustments for interpreters, braillists,
Approved new salary schedule for technology positions and early childhood education positions
Commitment to moving to a Performance pay system for all employees vs. increases based on seniority. A study will be conducted during the 2013-2014 school year. The board is implementing this concept for Grades 21 and above for the 2013-2014 school year.
Total cost to the budget for all recommendations approved by the Board of Education - approximately $ 759,000
Kalamazoo RESA Compensation and Benefit Changes for 2013-2014
Health Insurance Plan decisions for current employees delayed until October 2013
Estimated 9% increase in employee health/dental/vision/life/long-term disability insurance January-June 2014 for budget purposes
Comparison to Cap unknown until Oct or Nov 2013
Affordable Health Care Reform – Next phase effective January 1, 2014KRESA’s measurement period will run from April 2013 – October 2013. Our administration period will be November and December of 2013 and our stabilization period will be January – December of 2014.
Implement Tier 2 benefit plan for all new hires as of July 1, 2013
Single subscriber coverage for Grades 9-12Reduced paid time away benefits
Costs: Health Insurance
Increased Compensation CostsWages – 2% raise = $ 393,061Market Adjustments = 41,028Retirement = $ 187,243Health Insurance = $ 178,565Other Benefit Costs = $ 38,898Increased Costs = $ 838,795
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Special Education fund budget projectionTotal Revenues = 36,382,729Total Expenditures = 36,382,729Excess/(Deficit) = -0-Unassigned Fund Balance = 700,000
2%Combined fund balance = 7%Reduction in $’s paid to LEAs = 4,769,026
General fund budget projectionTotal Revenues = 31,524,665Total Expenditures = 31,646,292Excess/(Deficit) = (121,627)Unassigned Fund Balance = 4,142,515
13%
State aid act?
Foundation allowance?
MPSERS reform?
Any Time, Any Place, Any Way, Any Pace initiatives
Still up in the air
Rebalancing budgets
Eliminating positions through attrition wherever possible
Pursuing more grant funding
Taking on new initiatives
Spending down fund balance
Cost Containment Strategies
What we’re doing
Early Childhood
Starting July 1, 2013 Kalamazoo RESA anticipates it will become the grantee for the Kalamazoo County Head Start program.
We will be hiring approximately 80-90 employees to staff 20 classrooms throughout the county and provide support services to students and families.
Kalamazoo RESA will also be operating the GSRP preschool programs in some of our districts next year
Education Reconnection
YOU is implementing a new program in collaboration with our local school districts to reconnect students who have left their educational programs to reconnect them into a program that will lead to a High School Diploma coupled with paid employment experience
Technology Consolidations and CollaborationsKalamazoo RESA will be managing and staffing the AAESA technology services.
Kalamazoo RESA will be managing and staffing Galesburg-Augusta technology services.
Kalamazoo RESA is providing IT Engineering services to Portage, Mattawan, VBISD, AAESA, and others.
The Learning Network’s Efforts to Outcomes
New Initiatives for 2013-2014
Contact informationRon Fuller, Superintendent
Holly Norman, Deputy Superintendent ([email protected])
Question & Answer