Trenton Public Schools Preliminary Budget Presentation

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Trenton Public SchoolsPreliminary Budget
Presentation

• Monday, March 31, 2008

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Budget Overview 2008-09

• Financial Challenges
• Declining enrollment
• Reliance on State of Michigan for funding
• Foundation allowance not keeping up with
  inflation
• Rising health care costs
• Utility costs
• Bottom line?
• Declining revenues
• Increasing expenditures

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Budget Overview 2008-09

• Funding is based upon
• Number of students
• Foundation allowance per student
• Foundation Allowance
• Current year amount is 8,976
• Has not kept up with inflation
• Any increase is dependent on State of Michigans
  economic performance

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2008-09 General Fund Revenues


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Budget Overview 2008-09
Foundation Allowance increase Vs Inflation Rate
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Budget Overview 2008-09

• The financial magnitude of student loss is
  significant

- Foundation allowance projected for 2008-09
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Budget Overview 2008-09
Blended Pupil Count
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Budget Overview 2008-09
Projected Enrollment Trend
- Data provided by Education Services, Inc
report dated 10/27/07
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Budget Overview 2008-09
The State of the State

• No proposed changes to Proposal A
• No new taxes Governor, Senate, House
• Declining Enrollment statewide
• 14.5 over the past 10 years
• Current revenue projections for 2008/09 have an
  estimated 150 million shortfall
• Trenton Public Schools, being a Hold Harmless
  district, is slated for a 1 increase in the
  foundation allowance
• Beware of a State Aid proration!

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Budget Overview 2008-09

• Fund Balance
• Cash flow
• Reduces borrowing
• Unforeseen emergencies
• Interest revenue
• Designate for specific purposes
• One time money
• Target goal should be 12-15 of expenditures

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Budget Overview 2008-09
General Fund Balance Trend
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Involvement

• Every administrator with budget responsibilities
  was asked to develop their proposed budgets and
  present them to the Cabinet.
• We shared budget information with and sought
  input and suggestions from
• Administrators
• Union officials
• Staff
• Cabinet met over the last few months to discuss
  possible cuts and to study all available
  information.
• A consensus was reached within the Cabinet on the
  proposed budget.

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Assumptions
Revenue

• State Foundation rate increase of 50/pupil
• Enrollment decrease of 69 students, resulting in
  a decrease of approximately 620,000 in General
  Fund revenue.

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Assumptions
Expenditures

• Proposed bond issue passes
• Estimated health insurance increase of 5 due to
  cost savings through Caremark and the nature of
  self-insurance
• One Staff Retirement (THS)
• All financial responsibilities as required by
  current contracts and Board established
  bargaining parameters

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Elementary Level

• Class Size Targets to Remain the Same
• Avoid increasing budget to cover cost of
  Experiencia through continued allocation of
  Beverage Contract Monies (Avoids an increase of
  7,000)
• Summer school program to self fund
• 30,000
• Eliminate .6 Social Work position
• 66,000
• Reduce staffing due to decline in enrollment by
  1 staff member
• 70,000

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Middle School Level

• Class Size Targets to Remain the Same
• Eliminate 1.0 Middle School Teacher due to loss
  of students
• 70,000
• Avoid increasing budget to cover cost of
  Experiencia through continued allocation of
  Beverage Contract Monies (Avoids an increase of
  7,000)

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High School Level

• Class Size Targets to Remain the Same
• Remaining staff replacement via Early Retirement
  Incentive
  28,000

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District Level

• Continuation of Summer Utilities Budget Savings
  due to a 4-day Work-Week (cost avoidance of
  15,000)
• Continuation of contract with EEI to help control
  energy costs (cost avoidance of 140,000)
• Reduce Business/Curriculum clerical staff to .5
• 30,000
• Paperless direct deposit vouchers
• 4,000
• Implement self insured dental and vision benefits
  program
• 50,000
• Re-structuring of Business Office
• tbd

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2008-09 General Fund Expenditures
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Proposed increase in AthleticFees

• Increasing costs
• Staffing
• Transportation
• Administrative
• All other programs to be maintained at their
  current levels
• Increase to athletic fee/ticket prices to offset
  increasing costs

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Participation fee survey March 2008
Proposed 2008-09 fee 100/100/300
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Capital Project Fund Budget Recommendations

• One Replacement Bus
• 78,000
• High School Band Uniforms (with 15,000 offset by
  the Band Boosters)
• 20,000

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Program Commitments for 2008-2009

• .5 Reading Recovery at Taylor Elementary Retained
  (Grant Funded)
• All Elementary Students Receive Art, Music,
  Physical Education, and Media Center
• Experiencia Continued
• Elementary Science and Computer Labs Continued

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Program Commitments for 2008-2009 (Continued)

• District-wide Band Program Continued
• Elementary, Middle and High School Athletic
  Programs Continued
• Middle School Team Teaching Continued
• All Middle School Students will receive an
  expanded Exploratory Program at no additional
  cost to the District through a proposal that the
  Middle School staff will be bringing to the Board
  in the near future

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Program Commitments for 2008-2009 (Continued)

• Trenton High School Enhanced IMC Career Center
• District-wide Summer School (Tuition Based)
  Continued
• Community Education and Trenton High School Night
  School Continued
• Transportation Program Continued
• High School Task Team (Re Implementation of the
  Michigan Merit Curriculum) Continued
• Curriculum Leadership Council Continued
• Curriculum Improvements Including
• Additional High School Advanced Placement Courses
• Enhanced Graduation Requirements
• Trimester Implementation
• Enhanced Middle School Exploratory Programming

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Recommended Reductions

• Reduction of Two Teachers
• 140,000
• Reduction of .5 Business/Curriculum clerical
• 30,000
• Reduction of General Ed Social Worker
• 66,000
• Restructuring of Business Office
• tbd
• Conversion from fully insured Dental/Vision
  coverage to self insured program
• 50,000
• Early Retirement Incentive savings
• 28,000
• Self funding of Elementary Summer School
• 30,000
• Athletic/ticket fee increase
• 20,000
• TOTAL RECOMMENDED REDUCTIONS - 364,000

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General Fund Budget Summary

• Revenue 26,802,000
• Expenditures
  28,413,000
• Budget shortfall (
  1,611,000)
• Carryforward of surplus
• from 2007/08 fund balance
  633,000
• ( 978,000)
• Proposed budget reductions 364,000
• BUDGET SHORTFALL (
  614,000)

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Potential Budget Improvements

• If additional funds are given to the school
  district by the state, the administration would
  at that time recommend to the Board the
  appropriate amendments to this budget.
• In addition, the administration will continue to
  look for ways to further reduce the budget
  without impacting the educational program for
  students.

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Open Items

• May 6, 2008 bond elections results
• If defeated, budget will need to address critical
  roof repairs and technology needs.
• Actual student count
• Actual state aid
• Owen purchase agreement

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This budget shortfall equates to..

• The entire building and custodial costs of all
  three elementary buildings
• Eliminating 75 of all athletic programs
• Eliminating General Education transportation
• All of the building principals
• Just over 8 new teachers