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Budget Development: Variables, Compensation Schedules and Public Education Budgeting Variables State funding structure for public schools is not expected to have adjustment anytime in the near future. Current funding structures for


  1. Budget Development: Variables, Compensation Schedules and Public Education

  2. Budgeting Variables • State funding structure for public schools is not expected to have adjustment anytime in the near future. • Current funding structures for schools are primarily based on student enrollment. • Locally, our enrollment trends continue to project a downward trend primarily due to ongoing declining birth rates in the area. • Although declining enrollment allows us to make some cuts due to fewer students. Not at a rate that allows us to remain budget neutral. • Focus on finding the most meaningful ways to compensate our employees with the limited resources that we have.

  3. Revenue/Expenditures • Number of students x per-pupil • Salary foundation allowance = annual • Health care revenue • MSPERS (Employee State Retirement System) • Example: 5,100 students x • Fuel / Transportation costs $7,511 = $38,306,100 • Cafeteria • Variable sources of funding also contribute to annual budget • Utility Costs

  4. Budget Development Process Timeline • Presentations to board and • Adjustments to process committees • More direct communications with • Budget managers process budget partners and employees to share most current information and • Updates on enrollment, legislative relevant data changes • Budget proposal from house, senate, governor • Local impact on budget

  5. Actual Wage/Salary Cost to District $1.00 in wage/salary = $1.45 approximate actual cost to district • .45 on every dollar paid out in wage/salary is additional cost paid by the district for FICA / Medicare taxes, and state retirement costs. • An increase to an employee group of $100,000 in wage/salary, the district must budget $145,000.

  6. General Fund Expenditures 2015 2016 $49,654,458 $48,618,532 Community Other, Other, $325,682, Community Athletics, Services, $719,263, 1% Athletics, <1% Services, $411,684, 1% $990,782, 2% Support $922,460, 2% $447,581, 1% Services, $15,888,915, Support 33% Services, $15,760,076 32% Instruction, Instruction, $31,033,894, $31,772,653, 64% 64%

  7. Wage/Salary Increases Embedded in Schedules • Most common embedded increases are time work raises (STEPS) • Educational lanes

  8. Lapeer 2015-2016 Time Worked Raises or STEPS Step BA BA18 MA MA15 MA30 0 $34,049 $35,802 $37,645 $39,785 $42,043 1 $35,802 5.15% $37,645 5.15% $39,785 5.68% $42,043 5.68% $44,433 5.68% 2 $37,645 5.15% $39,583 5.15% $42,043 5.68% $44,433 5.68% $46,958 5.68% 3 $39,583 5.15% $41,625 5.16% $44,433 5.68% $46,958 5.68% $49,624 5.68% 4 $41,625 5.16% $43,768 5.15% $46,958 5.68% $49,624 5.68% $52,443 5.68% 5 $43,768 5.15% $46,022 5.15% $49,624 5.68% $52,443 5.68% $55,423 5.68% 6 $46,022 5.15% $48,391 5.15% $52,443 5.68% $55,423 5.68% $58,569 5.68% 7 $48,391 5.15% $50,884 5.15% $55,423 5.68% $58,569 5.68% $61,896 5.68% 8 $50,884 5.15% $53,504 5.15% $58,569 5.68% $61,896 5.68% $65,411 5.68% 9 $53,504 5.15% $56,261 5.15% $61,896 5.68% $65,411 5.68% $69,128 5.68% 10 $56,261 5.15% $59,157 5.15% $65,411 5.68% $69,128 5.68% $73,054 5.68% 11 $56,928 1.19% $59,859 1.19% $66,189 1.19% $69,948 1.19% $73,921 1.19% 15-16 Average Annual increase for STEPS is 5.08%

  9. Lapeer 2016-2017 Time Worked Raises or STEPS Previous Step New Step BA BA18 MA MA15 MA30 0 0 $34,049 $35,802 $37,645 $39,785 $42,043 1 $34,926 2.58% $36,724 2.58% $38,715 2.84% $40,914 2.84% $43,238 2.84% 1 2 $35,802 2.51% $37,645 2.51% $39,785 2.76% $42,043 2.76% $44,433 2.76% 3 $36,724 2.58% $38,614 2.57% $40,914 2.84% $43,238 2.84% $45,696 2.84% 2 4 $37,645 2.51% $39,583 2.51% $42,043 2.76% $44,433 2.76% $46,958 2.76% 5 $38,614 2.57% $40,604 2.58% $43,238 2.84% $45,696 2.84% $48,291 2.84% 3 6 $39,583 2.51% $41,625 2.51% $44,433 2.76% $46,958 2.76% $49,624 2.76% 7 $40,604 2.58% $42,697 2.58% $45,696 2.84% $48,291 2.84% $51,034 2.84% 4 8 $41,625 2.51% $43,768 2.51% $46,958 2.76% $49,624 2.76% $52,443 2.76% 9 $42,697 2.58% $44,895 2.57% $48,291 2.84% $51,034 2.84% $53,933 2.84% 5 10 $43,768 2.51% $46,022 2.51% $49,624 2.76% $52,443 2.76% $55,423 2.76% 11 $44,895 2.57% $47,207 2.57% $51,034 2.84% $53,933 2.84% $56,996 2.84% 6 12 $46,022 2.51% $48,391 2.51% $52,443 2.76% $55,423 2.76% $58,569 2.76% 13 $47,207 2.57% $49,638 2.58% $53,933 2.84% $56,996 2.84% $60,233 2.84% 7 14 $48,391 2.51% $50,884 2.51% $55,423 2.76% $58,569 2.76% $61,896 2.76% 15 $49,638 2.58% $52,194 2.57% $56,996 2.84% $60,233 2.84% $63,654 2.84% 8 16 $50,884 2.51% $53,504 2.51% $58,569 2.76% $61,896 2.76% $65,411 2.76% 17 $52,194 2.57% $54,883 2.58% $60,233 2.84% $63,654 2.84% $67,270 2.84% 9 18 $53,504 2.51% $56,261 2.51% $61,896 2.76% $65,411 2.76% $69,128 2.76% 10 19 $56,261 5.15% $59,157 5.15% $65,411 5.68% $69,128 5.68% $73,054 5.68% 11 20 $57,640 2.45% $60,607 2.45% $67,016 2.45% $70,822 2.45% $74,845 2.45% 16-17 Average Annual increase for STEPS is 2.83%

  10. Step BA BA18 MA MA15 MA30 Lapeer 2015-2016 0 $34,049 $35,802 $37,645 $39,785 $42,043 Educational Lane Changes 5.15% 5.15% 5.68% 5.68% Vary 5.15% - 10.57% 1 $35,802 $37,645 $39,785 $42,043 $44,433 5.15% 5.68% 5.68% 5.68% 2 $37,645 $39,583 $42,043 $44,433 $46,958 5.15% 6.21% 5.68% 5.68% 3 $39,583 $41,625 $44,433 $46,958 $49,624 5.16% 6.75% 5.68% 5.68% 4 $41,625 $43,768 $46,958 $49,624 $52,443 5.15% 7.29% 5.68% 5.68% Average increase for 5 $43,768 $46,022 $49,624 $52,443 $55,423 Educational lane 5.15% 7.83% 5.68% 5.68% 6 $46,022 $48,391 $52,443 $55,423 $58,569 advancement = 6.14%. 5.15% 8.37% 5.68% 5.68% 7 $48,391 $50,884 $55,423 $58,569 $61,896 5.15% 8.92% 5.68% 5.68% 8 $50,884 $53,504 $58,569 $61,896 $65,411 5.15% 9.47% 5.68% 5.68% 9 $53,504 $56,261 $61,896 $65,411 $69,128 5.15% 10.02% 5.68% 5.68% 10 $56,261 $59,157 $65,411 $69,128 $73,054 5.15% 10.57% 5.68% 5.68% 11 $56,928 $59,859 $66,189 $69,948 $73,921 5.15% 10.57% 5.68% 5.68%

  11. “Freezing” STEPS is one method districts attempt to save money Number of times STEP Frozen or Reduced last 10 years LCS 2 Davison 9 Dryden 4 Fenton 3 Grand Blanc 5 Imlay City 5 North Branch 2

  12. Other Compensation Methods • Additional Duty Stipends • Coaching • Sponsor • Teacher Mentor • Virtual Mentor • Attendance Incentive • Longevity

  13. Exploring Ways to Deliver Dollars with Most Value –- Goal of Alternative Compensation • Role of Alternative Compensation to examine how to best allocate limited resources in a manner that is most meaningful to both employees and the district • Deliver instructional programming in different ways

  14. Next Steps • Budget development process • Ongoing alternative compensation • Ongoing work to educational delivery

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