Presented April 23rd

1
SWARTZ CREEK COMMUNITY SCHOOLS FINANCIAL FORUM
Presented April 23rd 24th , 2009 for
stakeholders in the Swartz Creek Community
School District
2
PURPOSE

• Inform Board Members, Staff, Community

• Budget for both near and long term goals
• Encourage communication between Stakeholders
  of the Swartz Creek Community School District

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Michigan School Districts Financial Challenges

• State and national economy concerns

• Enrollment Issues

• Growing Health Care Costs

• State Retirement Rate Fluctuations

• Federal Stimulus Mandates

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PROBLEM
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DATA COMPARISON
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What can we do to weather the storm?

• Exert control over our spending
• Improve communication collaboration
  with stakeholders
• Increase revenue
• Attract new students
• Reduce expenditures

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EXPENDITURESHow we allocate resources
Expenditure Assumptions for 2008-09 Diesel fuel
costs rising from 226,763 to 260,000 Health
insurance estimated 10 increase Retirement rate
projected 16.56 of gross wages from
16.72 Utilities estimated 10 increase 2 pay
increase for most employee groups
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Audited figures for 2006-07

• REVENUE 34,007,675
• EXPENDITURES 33,529,348
• REVENUE OVER/(UNDER) EXPENDITURES
  478,327
• 2006 FUND EQUITY 5,864,168
• June 30, 2007
• Balance 6,342,495
• 18.92 of expenditures

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Audited figures for 2007-08

• REVENUE 34,240,115
• EXPENDITURES 34,521,560
• REVENUE OVER/(UNDER) EXPENDITURES
  (281,445)
• 2007 FUND EQUITY 6,342,495
• June 30, 2008
• Balance 6,061,050
• 17.56 of expenditures

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Due From State Other Governmental Units -
General Fund as of June 30,
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DISTRICT REVENUEFiscal Year 2007-08TOTAL
34,240,114
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Working DefinitionsRevenues

• Local Sources Property Taxes, Tax Penalties,
  Adult Ed. Tuition/Fees, Bank Interest, Rentals
  Leases, United Way, Gifts, Community Ed. Funds,
  etc.
• State Sources State Aid, Special Ed.,
  Transportation, Drivers Ed., Vocational Ed.,
  Gifted/Talented, At-Risk, Adult Ed., etc.
• Federal Sources IDEA (Sp. Ed.), Grants, Title 1
  2, Indian Ed., JTPA, Eisenhower, etc.
• Other Sources Act 18 (County Sp. Ed.), Sale of
  Assets, CDC Café Reimbursement, etc.

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DISTRICT OPERATING EXPENDITURESFiscal Year
2007-08TOTAL 34,521,560
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Working Definitions Expenditures

• INSTRUCTION
• Basic Program Insurances/Benefits (Health,
  Dental, Vision, LTD, Life, Retirement, FICA,
  Unemployment, Workers Comp.) Classroom Teacher
  Salaries, Aides, Substitutes, Teaching/Office
  Supply Materials, Repairs, Travel, Capital
  Outlay (Furniture Equipment), etc.
• Added Needs Insurances/Benefits, Special Ed.
  Teachers (IDEA Regular), Aides, At-Risk,
  Substitutes, Title 1 2, Vocational Ed., Indian
  Ed., Supplies/Materials, etc.
• SUPPORT SERVICES
• Pupil Insurances/Benefits, Counselors,
  Psychologists, Speech Teachers, Substitutes,
  Special Programs, Personnel, Graduation, etc.
• Instruct. Staff Insurances/Benefits, School
  Improvement, Textbooks, Librarians, Library
  Supply/Material, Assistant Superintendent for
  Instruction, Special Ed. Director, Athletic
  Director, Secretaries, Substitutes, System
  capitol-Outlay, Eisenhower, etc.
• General Admin Insurances/Benefits, Board
  Salaries, Legal Services, Audit Services,
  Publications, Elections, Copy Materials,
  Dues/Fees, Superintendent, Supt. Secretary, etc.
• School Admin Insurances/Benefits,
  Principals/Assistants, Building Secretaries,
  Travel, Dues/Fees, etc.
• Business Insurances/Benefits, Business
  Secretaries, Data Processing, Banking Charges,
  Postage, System Insurances, Tax Processing, etc.
• Oper. Maint. Insurances/Benefits, Food Mail
  Drivers, Custodial, Skilled Trades, Overtime,
  Substitutes, Utilities, Building
  Supply/Materials, etc.
• Pupil Trans Insurances/Benefits, Supervisor
  (1/2), Bus Drivers, Bus Trips, Shuttles,
  Secretaries, Substitutes, Repair, Mechanics,
  Supply/Material, etc.
• Central Insurances/Benefits, Assistant Super.
  Personnel, Switchboard Operator, Tech.
  Coordinator, Warehouse, etc.
• Other Insurances/Benefits, Schedule B Activities
  (Coaches/Sponsors), etc.
• Pupil Activities Indian Ed., Insurances/benefits,
  Workers, Secretaries, Supply/Material, etc.
• Payments To Other Schools GISD
  Telecommunications Classes, etc.
• Transfers General Fund Transfers to Community
  Education, Athletics and CDC

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Projected 2008-09

• REVENUE 34,212,341
• EXPENDITURES 35,607,800
• REVENUE OVER/(UNDER) EXPENDITURES
  (-1,395,459)
• 2008 FUND EQUITY 6,061,050
• June 30, 2009
• Projected Balance 4,665,591 13.10 of
  expenditures

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General Fund Expenditures
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Dilemma for 2008-09 and beyond

• Revenues are not expected to increase for the
  next two years
• Expenditures are expected to rise more than 3
• Is this an anomaly or long term trend?
• Federal Stimulus Funds Can they save us?

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Blended Student Enrollment
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Projected 2009-10

• REVENUE
  34,554,464
• EXPENDITURES 36,607,034
• REVENUE OVER/(UNDER) EXPENDITURES
  (-2,121,570)
• Projected 2009 FUND EQUITY 4,665,591
• June 30, 2010 2,544,021
• Projected Balance
• 6.94 of expenditures

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Projected 2010-11

• REVENUE 34,902,029
• EXPENDITURES 37,705,480
• REVENUE OVER/(UNDER) EXPENDITURES
  (-2,803,451)
• Projected 2010 FUND EQUITY 2,444,021
• June 30, 2011 -359,430 Projected
  Balance
• -1 of expenditures

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Size and Scope of the Budget

• When all funds are added together the district is
  a one of the largest businesses in the area with
  revenues and expenditures exceeding 100,000 each
  and every day.365 days per year.
• We are also one of the largest employers in the
  area with over 500 employees that service our
  most precious commodity.our children.
• Investment in our children is also in an
  investment in our community and the future of
  Michigan. It is important that all stakeholders
  understand the importance and the responsibility
  of this investment.

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Challenges and Possibilities

• We know that the near-term financial future is
  not looking good.
• However, we as a district can meet this
  challengehead on.
• Unlike Wall Street and other private businesses
  or industries we can determine our own future by
  not shying away from creating financial choices.
• However we need to act soon as we are all in this
  together.

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What We Have Done Thus Far

• Reductions of support and custodial staff
• Reductions of Core Curriculum Staff
• Energy Conservation-lighting, heating, busing
  software management
• Mid-year supplies budget cuts
• Elimination of Drivers Education
• Use of Fund Equity
• Quarterly Board budget reviews

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Future Plans

• Administrative staff reductions, other staff
  reductions
• Textbook budget reductions
• Reduction of subs for staff development
• Control of insurance and fringe benefits
• Reduce scheduled bus and technology purchases
• Privatize Administrative Services
• Reduce building supply budgets
• Athletic fees
• Increase class sizes and new class configurations

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Thank you for your time and for caring about
the finances of your school district, my school
districtOUR SCHOOL DISTRICT !!!Questions
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