WAUNAKEE COMMUNITY SCHOOL DISTRICTSTAFF PRESENTATIONSFEBRUARY/MARCH 2012

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2012-13 Budget Process

AGENDA2012-13 BUDGET PROCESS

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• Background Information• What’s New for 2012-13• Budget Projections• The Role of the School Board• Other Budgetary Topics

BACKGROUND INFORMATION

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• Enrollment HistoryGrade 2007-08 2008-09 2009-10 2010-11 2011-12

EC 44 45 53 46 204K --- --- --- --- 219K 250 253 270 266 2561 243 264 257 280 2642 269 255 268 275 2803 236 276 262 276 2794 240 240 281 271 275

TOTAL 1282 1333 1391 1414 1593ELEM

5 229 258 258 287 2776 280 235 260 271 294

TOTAL 509 493 518 558 571INTER.

7 271 309 250 285 2888 281 272 315 253 286

TOTAL 552 581 565 538 574MIDDLE

9 297 284 278 330 25310 277 299 282 278 32311 251 282 300 271 27212 288 256 283 305 288

TOTAL 1113 1121 1143 1184 1136HIGH

TOTAL 3456 3528 3617 3694 3874DISTRICT

Enrollment History is from the Third Friday in September Count (Residents plus Open Enrollment-in)

BACKGROUND INFORMATION

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• Enrollment Increase “New” Students• 2007-08 3.3% (adjusted for Sprouts)• 2008-09 2.2%• 2009-10 1.3%• 2010-11 1.8%• 2011-12 -.5% (adjusted for 4K)

• Five year average is 1.62%

Enrollment Increase is calculated by removing the 12th grade students, adding in K students, and adding in 30 students in 7th

grade. The difference between years is the increase in “new” students.

BACKGROUND INFORMATION

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• Revenue Cap Increase History

2 ,52

4,42

4

2 ,10

7,55

5

1 ,59

2,64

5

1,69

7,19

3

-1,1

24,8

48

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

07-08 08-09 09-10 10-11 11-12

REVENUE CAP INCREASE

Please note that the year 2007-08 included an additional $300,000 due to the 2005 K-8 referendum.

BACKGROUND INFORMATION

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• 2011-12 Revenue Sources

47%

42%

4%3%

2% 2%

Property Taxes

State - General

State - Categorical

Federal Grants

Open Enrollment

Other

The property tax revenues and the state-general revenues (combined 89%) are controlled by the revenue cap formula

BACKGROUND INFORMATION

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• Revenue Sources History - %Revenue 2007-08 2008-09 2009-10 2010-11 2011-12

State-General

48 49 44 47 42

Property Taxes

43 42 45 45 47

State-Categorical

4 4 4 4 4

Federal Grants

2 2 4 2 3

Open Enrollment

1 1 2 1 2

Other 2 2 1 1 2TOTAL 100 100 100 100 100

The Fund 10 budget declined in 11-12, and the property tax levy still increased

BACKGROUND INFORMATION

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• 2011-12 Expenses

81%

5%

3%3%

5%

1%2%

Salaries/BenefitsMaintenance/UtilitiesTransportationBuilding BudgetsDistrict Wide BudgetsSpecial Education4K Program

BACKGROUND INFORMATION

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• Expense History - %Expense 2007-08 2008-09 2009-10 2010-11 2011-12Salaries/ Benefits

(% special ed)(% regular ed)

82

(18)(82)

82

(18)(82)

81

(19)(81)

83

(18)(82)

81

(19)(81)

Maintenance/ Utilities

5 5 4 4 5

Transportation 2 2 2 2 3Building Budgets

3 3 3 3 3

District Wide 6 6 6 6 5Special

Education2 2 4 2 1

4 yr. old K -- -- -- -- 2TOTAL 100 100 100 100 100

WHAT’S NEW FOR 2012-13

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• Revenue CapThe revenue cap increase for 2012-13 is $50/student. A $50/student increase equates to a .5% increase.This can be compared to:

• 11-12 - $565/student• 10-11 +$200/student• 09-10 +$200/student• 08-09 +$274/student

WHAT’S NEW FOR 2012-13

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• Revenue Cap Categorical AidThe 2011-13 state budget provided a matching $50/student categorical aid payment in 2012-13. This payment is:

1. One-time only and is not added to the revenue cap base for 2013-14

2. Dependent on the local School Board utilizing the $50/student revenue cap increase (pro-rations are possible)

A categorical aid is typically intended to finance or reimburse a specific instructional or supporting program (i.e. special education categorical aid).

WHAT’S NEW FOR 2012-13

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• State Equalization AidThe 2011-13 state budget provided a state-wide increase of $31.8 million for the 2012-13 school year. This increase equates to a .7% increase.

The first estimate of 2012-13 state equalization aid by district will be provided in July.

We have been requesting an earlier state equalization aid estimate and we are participating in a conversation with the Department of Public Instruction on this topic.

WHAT’S NEW FOR 2012-13

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• One-Time Revenues• The federal government’s jobs bill program funding will end

($600,000 budgeted in 11-12)• The federal government is providing reimbursement to help

implement federal heath care reform ($45,000 in 12-13)• The state of WI is providing a $50/student revenue cap

categorical aid ($186,350)• The state of WI is providing a 4-year old Kindergarten start

up grant ($110,000)

WHAT’S NEW FOR 2012-13

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• Employee Compensation• WTA (teachers) and AFSCME (custodian/maintenance)

contracts expire on June 30, 2012• The School Board is required to negotiate base wages with

union groups up to the CPI – projected at 3.16%• The Wisconsin Employment Relations Commission has

provided draft rules on the CPI negotiations process• Salary schedule/longevity advancement are outside the CPI

process and are not subject to negotiations• Benefits like health insurance are not subject to negotiations

BUDGET PROJECTIONS

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• Enrollment – No GrowthGrade 2011-12 2012-13 2013-14 2014-15 2015-16

EC 20 20 20 20 204K 219 220 220 220 220K 256 240 240 240 2401 264 256 240 240 2402 280 264 256 240 2403 279 280 264 256 2404 275 279 280 264 256

TOTAL 1593 1559 1520 1480 1456ELEM

5 277 275 279 280 2646 294 277 275 279 280

TOTAL 571 552 554 559 544INTER.

7 288 324 307 305 3098 286 288 324 307 305

TOTAL 574 612 631 612 614MIDDLE

9 253 286 288 324 30710 323 253 286 288 32411 272 323 253 286 28812 288 272 323 253 286

TOTAL 1136 1134 1150 1151 1205HIGH

TOTAL 3874 3857 3855 3802 3819DISTRICT

Assumptions Made• 4K classes

estimated at 220

• K classes estimated at 240

• 30 students enroll in 7th grade from private schools

• No student growth

• 12-13 – loss of 17 students

BUDGET PROJECTIONS

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• Revenue Cap Projections

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

12‐13 13‐14 14‐15 15‐16

683,009

580,353

374,800

132,682

REVENUE CAP PROJECTIONS

REVENUE CAP PROJECTIONS

• A revenue cap increase of $50/student is included for 12-13, with an increase of $100/student included for future years

• Revenue cap projections beyond 12-13 are not reliable at this time

BUDGET PROJECTIONS

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• 2012-13 Revenue IncreaseRevenue Changes:+ Revenue Cap ($50/Student) + 683,009- Summer School Fees - 75,000+ Medicaid + 175,000+ Open Enrollment Tuition + 27,090+ Revenue Cap State Categorical Aid* + 186,350+Federal Health Care Reform* + 45,000+4K State Grant* + 110,000 - Federal Jobs Fund - 602,000

+ 549,449

*One-time sources of revenue ($341,350)

BUDGET PROJECTIONS

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• 2012-13 Expenditure Savings - Examples• Eliminate the new staff development program that was funded

by re-allocation of federal jobs bill funds ($77,500)• Return the district contingency fund to $100,000 ($36,479)• Remove the Heritage/Intermediate school HVAC controls project

funds form the maintenance budget ($75,000)• Benefit changes for part-time teachers ($26,000)• Increase employee contributions to health/dental benefits to

reflect the language in the current agreements ($238,000)• Reduce 1 FTE K-4 due to lower enrollments ($60,000)• Reduce additional FTE’s (TBD)• Seek operational efficiencies (TBD)• Health insurance plan revisions (TBD)

BUDGET PROJECTIONS

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• 2012-13 Expenditure Increases

Revenue Increases $549,449

Expenditure Savings $512,979 (example)

=Funds to apply toward Expenses $1,062,428 (example)

BUDGET PROJECTIONS

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• 2012-13 Expenditure Increases - Examples• Consumer price index – maximum projected 3.16% ($751,100)• WTA salary schedule points advancement ($500,000)• Support Staff longevity advancement ($ 75,000)• Health/dental premium increase – 7% ($394,800)• Wisconsin Retirement System - .2% ($ 45,000)• Remove 1.0 FTE from federal special ed. funding ($102,055)• Add 1.0 FTE to the Middle School

for increased enrollment ($ 60,000)• Bus Contract Increase ($ 16,000)• Programmatic/Staffing needs ( TBD)

BUDGET PROJECTIONS

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• 2012-13 Expenditure IncreasesThe Bottom Line….

• Potential expenditure increases exceed funds available from additional revenues and expenditure savings

• Priorities will need to be determined and difficult decisions will need to be made

BUDGET PROJECTIONS

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• 2012-13 Property Tax LevyThe property tax levy will increase by 3.5%, assuming:1. State equalization aid remains the same2. The School Board approves a refinancing plan that

includes at least $300,000 in savings in 12-13

The property tax levy will change if:1. State equalization aid increases (lowers the levy) or

decreases (increases the levy)2. The refinancing generates more savings than $300,000

(lowers the levy) or generates fewer savings (increases the levy)

3. The student count is higher (increases the levy) or lower (decreases the levy)

ROLE OF THE SCHOOL BOARD

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• Determination of Budget Priorities• Additional FTE vs. higher class size• Higher benefit costs vs. higher salary costs• Salary schedule advancements vs. CPI increases• New programs vs. reviewing existing programs• Accepting or denying open enrollment students • Increasing student fees• Etc., Etc.

OTHER BUDGETARY TOPICS

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• Summer School Fees• The summer school program provides a significant

addition to the district FTE count• The summer school program provides a significant

increase in state equalization aid• The district needed to better align the current fee

structure to meet DPI requirements • Fees are being reduced at a cost of approximately

$75,000• The summer school program is still financially

advantageous to the district

OTHER BUDGETARY TOPICS

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• High School Referendum Funds

• The high school referendum was funded with federal bond dollars

• The federal bond dollars have specific requirements• The school district will be spending the remaining

funds at the high school building• The remaining funds by law cannot be spent at any

other building• The school district will focus the regular technology

and maintenance budgets on the K-8 buildings

OTHER BUDGETARY TOPICS

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• End of the Year Funds• The school district has typically saved end of the

year funds• The School Board had a goal of a 15% fund

balance• The School Board goal has been met• The school district will begin spending end of the

year funds on one-time projects• Examples include technology improvements, and

maintenance• End of the year funds cannot be allocated to

ongoing expenses

QUESTIONS

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• Thank you for your attention to this presentation on the 12-13 budget process

• If you have any question, I would be happy to take them at this time