Budgeting for Success

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• Budgeting for Success
• 2009-2012 Financial Planning Process

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Budgeting for Success Goals

• Create awareness and engage staff and community
  in Bloomington Public Schools long-range
  financial planning process Budgeting for
  Success by identifying budget enhancements,
  shifts and reductions to ensure financial
  stability for the 2009-2012 school years.

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Current Realities

• Worst U.S. economic recession since World War II.
• Minnesotas budget deficit is 5.2 billion, and
  likely to grow when another financial report is
  issued in 2009.
• State funding for schools has not kept pace with
  inflation for the past five years.
• State funding for schools is likely to be frozen
  at current levels for the next two years.
• Additional negative economic impacts may require
  the state to cut current funding to schools.

All this is putting unprecedented pressure on our
finances.
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Current Realities

• 2007 Referendum
• Allowing us to meet current needs of our
  classrooms and schools and improve technology.
• We also reached the state-imposed cap on
  operational levy.
• No new funding can come from Bloomington
  residents unless State Legislature raises levy
  cap.
• Bloomington Public Schools is currently in a
  solid financial position with a positive fund
  balance.

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Operating Referendums
2009-2010 Amount per student and Prior year
change
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Current Realities

• Salary settlements with our unions have been, on
  average, below metro districts settlements for
  the past several contracts.
• District moved nearly all employees to a High
  Deductible Health Plan this past year, which is
  likely to reduce insurance costs and save money.
• Economic future and fiscal responsibility are
  directly linked, so we must wisely manage our
  resources and prepare for a very uncertain
  future.

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Current Realities

• We cannot sustain our current budget with no
  increase in state funding.
• Nearly all metro-area districts are looking at
  budget reductions or hiring freeze to ensure
  financial stability.
• Metro schools face 138 million funding gap in
  2009-10.
• Lets look at the numbers

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RevenueGeneral operating fund revenue
94,974,607 (2008-09)
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ExpensesGeneral operating fund expenses
96,100,277 (2008-09)
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Financial Projections
Projected 0 Formula increase 2009-10 and
2010-2011 with 2011-12 thru 2012-13 at 2
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Financial Projections

• Heres what the chart tells us
• Bloomington Public Schools is in a solid
  financial position with a positive fund balance.
• BPS meets School Board fund balance directive of
  5 or greater.
• BPS is assuming no new state aid for next
  biennium.
• IF state were to cut funding for schools, we may
  need to make deeper reductions, AND sooner!
• IF we were to receive state funding, the
  reductions to ensure financial stability may be
  pushed out further, and may be less (see last
  green line item on chart).

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Financial Stability

• What is BPS doing
• We are monitoring both short- and long-term
  fiscal challenges, and will set annual budgets
  accordingly.
• We initiated a 900,000 budget reduction this
  year.
• We developed a long-range financial planning
  process, called Budgeting for Success.
• We are seeking staff, parent and community input
  on identifying budget enhancements, shifts or
  reductions.
• Goal is to inform and educate all of us on the
  economic challenges facing our schools, and how
  we will allocate resources balanced against
  future needs.

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Budgeting for Success

• Work will take place between January and March,
  2009.
• Process is a collaboration with our employees and
  union leadership.
• Invite lots of staff, parent and community input
  and feedback on budget enhancement and reduction
  ideas and prioritizing of those ideas.
• Engage staff and parents through meetings at
  schools, public hearings and a special Web
  site www.bloomingtonschools.info/budgetingforsu
  ccess

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Budget Review Team

• School Board (2)
• Parents (4)
• Union Reps (each unit)
• Financial Advisory Rep (CFAC)
• Principals (4)
• Student Services Managers (2)
• Community Services Manager
• Assistant Superintendent

• Human Resources Manager
• Exec. Dir., Community Relations
• Office of Educational Equity
• Facility Grounds Manager
• Food Services Manager
• Transportation Manager
• Finance Manager
• Exec. Dir., Finance

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Important Dates

• January 5-9 Staff and Parent Meetings
• January 6 February 6 Budget enhancement and
  reduction submissions
• February 17-19 Staff and Parent Meetings to
  review and prioritize list of budget
  enhancements, reductions and impact statements
• March 9-11 Public Hearings with School Board
• March 16 School Board approves school staffing
  prioritizes final budget enhancements, reductions
  list
• June 2009 School Board adopts 2009-10 budget.

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More Important Dates

• The following dates are significant to the
  Budgeting for Success process
• January 2009 Gov. Pawlenty to announce budget
  balancing plan may include biennium funding
  proposal
• Jan. 6, 2009 State Legislature convenes
• February 2009 Updated state economic forecast
• March 31 Goal for teacher non-renewal notices

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Important Reminders

• Managing public money is a matter of public
  trust. We take this responsibility very
  seriously.
• We are in a sound financial position and the sky
  is not falling.
• Economic factors at the local, state and national
  level require us to be prudent in our financial
  planning.
• Budget cutting doesnt mean we cant be
  innovative and creative in our efforts to improve
  student achievement, in fact, we will embrace
  efforts to do so!

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Important Reminders

• We are all in this together.
• We will become a stronger school district.
• We will be an attractive school district for
  others new families or open-enrolled students
  to consider.
• And, now your questions

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Thank You and visit us at www.bloomingtonschools.i
nfo/budgetingforsuccess