Cleveland Municipal School District

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Cleveland Municipal School District

• Fiscal Year 2009 Budget Overview

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Cleveland Municipal School DistrictAverage Daily
Membership

• 2007 2008 2009
• CMSD Count 53,202 49,857 46,548
• Charter Count 11,573 12,693 13,593

The District is projected to lose over 3,000
students per year. Charter school enrollment is
projected to increase 900 students per year.
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The proposed general operating revenue forecast
for the 2008-2009 school year totals
661,224,776, a decrease of 12.4 million or 1.8
lower then the current year. State sources
represent 72.6 of the Districts revenue.
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• Tax revenues for 2009 are projected at
  153,381,626 a decrease of 21.3 million or
  12.2. This decrease is primarily due to
• Reduced real property tax collection rate to
  86.81 from 88.04.
• Shift of real property tax collections to
  Homestead/Rollback revenue due to HB119 elderly
  and disabled home owner tax reduction.
• The continued elimination of personal tangible
  property tax.

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• Property Tax Allocation increase of 9.4 million
  or 26.3 is due to
• The shift of Real Property Tax to
  Homestead/Rollback due to HB119
• Increase of HB66 CAT Tax Reimbursements based on
  the elimination of Personal Tangible Property Tax.

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Due to declining enrollment, CMSD is a guarantee
district. This results in the District receiving
the same amount of state funding as it did in
2007 and 2008. Although our overall state
funding remains level, the deductions for
community schools continues to rise (from 93
million in 2008 to 101.4 million in 2009).
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Tax revenue combined with HB66 hold harmless
reimbursements is projected at 198.7 million, a
decrease of 11.9 million or 5.65. Tax revenue
is lower due to the collection rate of 86.81 and
phase out of tangible personal property tax. The
difference between the gross and net state
funding represents flow thru charter school
tuition costs. As charter school enrollment
increases, the net dollars available to CMSD
operations declines.
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Other Revenue is projected to decrease 498,891
or 1.7.
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The proposed general operating budget for the
2008-2009 school year totals 711,892,569, an
increase of 27.5 million over the current year
budget.
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Employee compensation (salaries and fringe
benefits) are projected at 494.3 million, an
increase of 14.6 million over the current year
budget. Salary estimates include a provision for
a 3 base wage increase consistent with our
employee union agreements. Health insurance
estimates reflect a rate increase of 2. Wage
estimates have been adjusted to include salary
schedule step increases. District retirement
costs are projected to increase consistent with
the overall increase in salary levels. Compensatio
n projections reflect a net reduction of 70
positions due to declining enrollment.
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The allocation for supplies, textbooks and
equipment is recommended at 14.6 million, a
307,000 increase over the current year
budget. The appropriation for textbooks is
recommended at 5.9 million, a 3 increase over
current year allocation.
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Purchased Services are projected at 186.2
million, an increase of 12.3 million over
current year estimates. Charter school tuition is
projected at 101.4 million, up 8.4 million (9)
from current year projections. Utility costs are
projected to increase by approximately 2 million
over current year projections. Other purchased
services are projected to increase 1.3 million.
Tuition costs for students who reside in the
District and receive services at other
educational institutions are projected to
increase.
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Other Miscellaneous expenses (fixed charges) are
projected at 6.0 million. This category of
expenditures includes County Auditor and
Treasurer fees (3.6 million), fees charged by
the County for the collection of delinquent taxes
(1.3 million) and property and casualty
insurance (0.4 million).
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Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued
Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the
final payment in the 2006-2007 school year. final payment in the 2006-2007 school year.








































Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued Total Debt Service expenditures are projected at 1,251,000, a reduction of 18.4 million from current year budget estimates. In 1997, the District issued
Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the
final payment in the 2006-2007 school year. final payment in the 2006-2007 school year.

Debt Service expenditures are projected at
1,251,000. This category provides for the
repayment on the Districts HB 264 Energy
Conservation Bonds and loans from the
Environmental Protection Agency for use in
asbestos removal projects.
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The 2008-2009 budget proposal includes 6,000,000
to cover a potential deficit in the Food Service
program. Transfers include a 944,000 sinking
fund payment to repay the Districts Qualified
Zone Academy Bonds (QZAB) debt. 2.5 million has
been projected to cover year end cash flow
advances (June 2009 advances to Special Revenue
Funds).
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Cleveland Municipal School DistrictSummary of
Revenues and Expenditures
2007 - 2008 2008 - 2009
Beginning Unencumbered Cash Balance 80,418,495 69,607,113

Total Revenues 673,600,267 661,224,776

Total Expenses 684,411,649 711,892,569

Ending Unencumbered Cash Balance 69,607,113 18,939,320
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Cleveland Municipal School District
Major Financial Uncertainties for the 2008-2009
School Year

• CMSD Student Enrollment
• 2008-2009 Charter School Enrollment
• Actual unreserved carry-over balance (June 30,
  2008 unreserved balance)
• Energy Costs
• Approval of the new Medicaid reimbursement plan
  to reinstate Medicaid reimbursements from the
  Federal Government
• Tax collection rate and delinquencies
• We have prepared this years budget using the
  best available information, knowledge and
  judgment in those areas which are variable.
  However, there are numerous financial
  uncertainties that could have a major impact on
  the 2008-2009 school year budget.