Community Budget Meeting

1
Community Budget Meeting

• Byron Area Schools
• June 4, 2009

Community Parent Advisory Committee
2
State Budget Status

• State Revenue Conference
• 2008-09 shortfall increased to 265/pupil
• Total School Aid Fund (SAF) Deficit of 450
  million
• 2009-10 shortfall as much as
• 590/pupil
• Total School Aid Fund (SAF) Deficit of 956
  million
• 2010-11 is The Cliff Year

3
Why the Revenue Crunch?

• Tax revenues down 12.7 (1.287 billion)
• Current fiscal year deficit 1.3 billion
• 2nd quarter state revenue down 22.3
• Income tax collections down 56.2 from 07-08 2nd
  quarter
• Other declining revenue sources
• Sales tax
• Casino Wagering
• Tobacco taxes
• Lottery collections
• Business Taxes

4
Local Factors

• Enrollment The basis of our existence

5
Enrollment Decline

• Fall 2008/Current -14
• Graduating/Kindergarten -20
• Moving or Transferring -16
• Unknown (Estimate) -10
• Possible Loss 5060
• Possibly 350,000 420,000 or more in lost
  revenue
• Blended count loss of 40

6
Rising Fixed Costs

• Utilities
• Salary
• Benefits
• Diesel Fuel
• Maintenance
• Supplies
• Food

7
Perfect Storm

• Rising fixed costs
• Declining enrollment
• Poor state economy

8
Michigan School Business Officials

• We have to look at our 2009-10 budget
  development as part of a 3-5 year budget
  projection and plan.
• We will need a long-term strategy that will
  address this significant revenue reduction in a
  thoughtful and organized way.

9
Byron Area Schools Budget 2009-2010

• Projected Revenue 10,181,072
• Projected Expenses 10,834,309
• Deficit -653,237

10
Proposed Cuts

• Administrative 45,500
• Instruction 186,300
• Transportation 40,000
• Custodial 51,300
• Support Staff 39,400
• Maintenance Grounds 95,000
• Bus Purchase (Deferred) 80,000

11
Specifics . . . . .

• Administrative reassignments
• One person to move into a different support role
• One Special at BES
• Music and Art Part Time 5th Grade Band
• Physical Education
• Computer Education
• 1-2 Classroom teachers at BES
• 4th Grade (3 sections Larger Class Size)
• Maintain lower class sizes in lower elementary
• School Nurse
• Combine with other clerical duties

12
Specifics . . . . .

• Eliminate part time teachers at Middle School and
  High School
• Class overloads and extra sections
• Fewer bus runs (2)
• Cuts in custodial and maintenance personnel,
  projects and supplies
• -95,000 in projects
• Three paraprofessional positions (PE, Library,
  and Title I)

13
Total Cuts . . . So Far

• 531,719
• 5 of our Budget

14
Other cuts to be considered . . .

• Cut an additional 121,518
• Freshmen Athletics (10K)
• Field Trips (5K)
• Weekend travel for athletics (5K)
• 100,000 more?

15
What About Stimulus Money?

• Three Categories
• Special Needs (IDEA)
• Title I (50,000 Increase to BAS)
• Budget Stabilization (0)
• Budget Stabilization Funds will only fill the
  holes from 2008-09
• 265/Student
• Must apply for reimbursement

16
What About Fund Equity?

• Projected at the end of 2008-2009
• 1,252,000
• (11.88 of Expenditures)
• Projected at the end of 2009-2010
• 1,131,000
• (11.05 of Expenditures)

17
What About Fund Equity?
18
Whats Next?

• The state and local budget situation is not
  likely to improve in the near future
• Our enrollment is likely to decline further
• We will have to face additional cuts in the
  coming years

19
Its Everyone!

• Lansing 16 Million
• Grand Ledge 1.7 Million
• Linden 1.2 Million
• Perry 1.1 Million
• Waverly 2.7 Million
• Mason 1.1 Million
• All other RESD Schools (Durand, Corunna, Morrice,
  Owosso, et. Al.)

20
The Boards Goal

• Offer a core and elective curriculum
• Offer a variety of extra and co-curricular
  experiences
• Remain financially sound as we weather this
  crisis

21
What Else?

• We have to rely on the resiliency and tenacity of
  our community
• We will need more volunteer help and other
  support from parents and others
• In spite of the difficult circumstances . . .
• Remain hopeful and positive about the future of
  Byron Area Schools