GF 2009/10 Budget Development Presented to Board of Education May 11, 2009
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Transcript of GF 2009/10 Budget Development Presented to Board of Education May 11, 2009
Presentation Outline
• Significant reductions since 2002 • PPS administrative costs are some of
lowest in State– The “easier” reductions have already been
taken.
• State financial situation clearly indicates difficult times ahead
• Future reductions are very difficult since they impact staff and students
Significant Cuts Started Seven Years Ago …
• 2002/03 $500,000– Director of El Education– AMB Asst. Principal– Two custodial floaters (from 4)– Summer custodial assistance– Reorganized central services– Eliminated capital outlay– Middle school technology support
reorganized– Hardware technician position– Reduced professional develop by
4%
• 2003/04 $1,100,000– Employee participation in health
insurance costs– Instructional materials reduction– Energy conservation program fully
implemented– EFE/EFA Reductions– Outsourced sub teacher process– Two custodial floaters (to zero)– Outsourced Driver Education– Reduced central services FTE 1.0– Reduced PEP teacher FTE 1.0– Payroll/Accounting Clerk 1.0– Central Office Secretary 1.0– Outsourced Facilities Secretary– Reduced Reading program support
by .50 FTE– Capital outlay, supply budgets
… and Continued After Enhancement Millage
• 2004/05 $785,000– Employee participation in health
insurance costs– Add’l administrative reductions– Reduce secretarial position 1.0– Reduce two teacher positions via
attrition. – Technology Dept reductions 1.0– Outsourced Curious Kids staff– Secondary purchased services,
supply reductions including athletics.
– Reductions to parapro’s and secretarial subs.
– Special education staffing reductions
– Field Trips
• 2005–2008 $1,394,000– Two maintenance positions cut– Two maint. positions outsourced– Custodial supervisor outsourced– Six full time 2nd/3rd shift custodial
positions outsourced by attrition – Sub teacher service provider– Athletic coaches to service provider– Direct purchase of electricity– FTE reductions at secondary– Testing supplies & software– Business/HR position cut– Admin secretary position cut– Strategic planning FTE cut– Casualty insurance deductible– Food Group indirect cost charge– Board salaries and meeting meals– Copier lease extension
PPS Administrative CostsRank in LOWEST 10%
0
200
400
600
800
1000
1200
Co
st P
er S
tud
ent
Business & Admin Oper & Maint
State Avg
Portage
State Avg
Portage
Source: 2007/08 MDE Bulletin 1014
Kalamazoo County DistrictsPPS Has Lowest Administrative Costs
0
500
1000
1500
2000
2500
3000
Co
st P
er S
tud
ent
KPS
Climax
Comstock
Galesburg
Gull Lake
Parchment
Portage
Schoolcraft
Vicksburg
Oakland Acad
Advantage Acad
Paramount Acad
Source: 2007/08 MDE Bulletin 1014
MEAP Comparator DistrictsOnly 1 District with Lower Administrative Costs
0
200
400
600
800
1000
1200
1400
1600
Co
st P
er S
tud
ent Forest Hills
Grand Blanc
Grosse Pointe
Midland
Rockford
Portage
Source: 2007/08 MDE Bulletin 1014
Portage Public Schools2009/10 Budget Scenarios
GF Revenues 77,615,000 78,234,000
GF Expenditures79,453,000 79,048,000
Deficit (1,838,000) (814,000)
More Conservative
More Aggressive
Presented to Board on March 9, 2009
P.P.S. Options For Budget CrisisFund Balance Could Absorb $940,000
56
78
910
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PPS Options For Budget CrisisRevenue Enhancement
• Very small potential in this area
• Pay to participate in all extra curriculars– Estimate of $150,000– Time consuming implementation
• Various user fees– Estimate of $40,000
PPS Options For Budget CrisisExpense Reductions
– Enlarge required walk zones 100,000– Custodial services 200,000– Reduce building supply budgets 85,000– Eliminate middle school athletics 205,000– Reduce Professional Development 104,000– Reduce instructional support services 1,130,000
Impact of ARRA Stimulus Funds
• Three Significant Allocations– State Fiscal Stabilization Fund– IDEA Part B– Title I
• Conceptually for Three Year Period– Current Fiscal Year (08/09)– Next Fiscal Year (09/10)– Fiscal Year 10/11
Let’s Look at Each Allocation over the three year period
ARRA State Fiscal Stabilization
• Current Fiscal Year 2008/09– School Aid Fund deficit projection $420M or $259/pupil – Questions exist on how funds can be spent– When will funds be available? Impact to cash flow?
• Next Fiscal Year 2009/10– SAF deficit projection $956M or $555/pupil– Likely reduction in categoricals– Deficits of these two years exceeds $1.3B funding available
• Higher education is suppose to also receive this funding
• Fiscal Year 2010/11– At the “Cliff”– MPSER’s retirement rate up due to stock market losses
Stimulus Funding - IDEA Part B
• Based on KRESA meeting today• Current Fiscal Year 2008/09
– No impact• Next Fiscal Year 2009/10
– Total eligible $622,255– 50% option ($311,000) to supplant– Balance of ($311,000) for new expenses
• Fiscal Year 2010/11– Total eligible $622,255– 50% option ($311,000) to supplant– Balance of ($311,000) for new expenses
ARRA – Title I Funding
• Current Fiscal Year 2008/09– No impact
• Next Fiscal Year 2009/10– Total eligible $423,000– We are assuming that approximately $290,000 of
current expenditures will qualify for this funding
• Fiscal Year 2010/11– Total eligible $423,000– We are assuming that approximately $290,000 of
current expenditures will qualify for this funding