FISCAL YEAR 2018: TENTATIVE BUDGET JUNE 20, 2017 BOARD OF EDUCATION MEETING
Informational Notes • D155 strives to keep its operating funds “in the black.” ◦ Revenues exceeded expenditures in 2014-2015 & 2015-2016 ◦ Revenues are budgeted to exceed expenditures in both 2016-2017 (assuming full state payments to D155) & 2017-2018
What are the Operating Funds? • State Defined “Operating Funds” • Education Fund • Operations & Maintenance • Transportation Fund • Working Cash Fund • School districts often include • Municipal Retirement/Social Security Fund
Revenue Sources State Sources Federal Sources Local Sources • General State Aid • IDEA Funding • Tax Revenues • Grant Revenues • NCLB/ESSA Funding • Personal Property Replacement Tax • Categoricals • Medicaid • District Fees • Other Grant Revenues • Special Ed/Transportation Reimbursements • Food Service (Lunch Sales) • Donations • Interest
2017-2018 Operating Funds Direct Revenues Summary $2,640,404 3% $13,860,411 14% Local $80,047,251 State 83% Federal
Key Revenue Assumptions • Property Taxes – 2016 Tax Levy is extended at 99.8% collection rate • General State Aid – Approximate 90% proration estimate taken from PMA Financial model • Other State Revenues – 2.5% decline from most recent FY17 estimates for most line items • District Fees – 2.5% decline for student enrollment trend • Federal Funding – slight increase based on anticipated FY17 estimates
2017-2018 Operating Funds Direct Revenues Summary Municipal Operations & Total Operating Education Transportation Retirement/ Working Cash Maintenance Funds Social Security Direct Revenues $84,225,247 $6,949,089 $2,995,348 $2,370,382 $8,000 $96,548,066
Expenditures Overview • The Illinois State Board of Education classifies expenditures using the following categories: • Salaries • Benefits • Purchased Services • Supplies • Capital Outlay • Other (Tuition, Dues, Fees, Contingencies)
Key Expenditure Assumptions • Salaries – Current employee increases as negotiated. All staff return next year with the exception of know terminations. • D155 will decrease its teacher FTE by 14.5 for School Year 2017-2018 • D155 will reduce 2 administrative positions • Benefits increase with current employee benefits projected • Building/Departmental budget decreases: • Supplies, equipment, purchased services, and tuition reductions total almost $1.9 million
Staff Reductions • 14.5 Teacher FTE Reductions – saves approximately $1,375,000 • 2.0 Administrative Reductions – saves approximately $300,000
Education Fund Expenditures $1,287,988 ED FUND EXPENDITURES BY TYPE 2% $1,272,658 $2,891,236 2% 4% $250,000 $5,806,646 Salaries & Benefits = 86% Salaries & Benefits 0% 7% Purchased Services = 7% Purchased Services Supplies & Materials = 4% Supplies & Equipment = 2% Materials Equipment Tuition, Dues & Fees = 2% $70,994,415 86% Tuition, Dues & Contingency = less than 1% Fees Contingency
Operations & Maintenance Fund Expenditures $500 $500,000 0% $383,510 O&M FUND EXPENDITURES BY TYPE 7% 5% Salaries & Salaries & Benefits = 46% Benefits Purchased Purchased Services = 15% Services $2,007,543 Supplies & Supplies & Utilities = 27% 27% Utilities Equipment Equipment = 5% $3,433,219 46% Dues & Fees = less than 1% Dues & Fees $1,154,190 Contingency = 7% 15% Contingency
2017-2018 Operating Funds Direct Expenditures Summary Municipal Operations & Total Operating Education Transportation Retirement/ Working Cash Maintenance Funds Social Security Direct ($82,502,943) ($7,478,962) ($4,191,889) ($2,353,340) $ – ($96,527,134) Expenditures
Budget to Budget Comparison FY17 to FY18 Direct Expenditures 2016-2017 2017-2018 Increase/(Decrease) Salaries $57,404,979 $57,895,032 $490,053 Benefits $17,529,306 $18,885,942 $1,356,636 Purchased Services $10,178,416 $10,575,725 $397,309 Supplies $5,391,918 $4,898,779 ($493,139) Equipment/Capital $3,152,820 $2,248,498 ($904,322) Outlay Other $2,379,042 $2,023,158 ($355,884) Grand Totals $96,036,481 $96,527,134 $490,653
2017-2018 Operating Funds Budget Summary Municipal Operations & Total Operating Education Transportation Retirement/ Working Cash Maintenance Funds Social Security Direct Revenues $84,225,247 $6,949,089 $2,995,348 $2,370,382 $8,000 $96,548,066 Direct ($82,502,943) ($7,478,962) ($4,191,889) ($2,353,340) $ – ($96,527,134) Expenditures Surplus/ $1,722,304 ($529,873) ($1,196,541) $17,042 $8,000 $20,932 Deficit D155’s 2017 -2018 Operating Budget is “in the black.”
Debt Service & Capital Projects Funds • Debt Service payments decrease by almost $1.5 million in FY18. Bond repayment schedules filed with McHenry & Lake Counties dictate the debt service tax extension. • Capital Projects funds have been mostly depleted. • D155 may need to utilize reserves to complete summer 2017 projects. • For summer 2018 projects, this budget allows for the treasurer to transfer reserves from the O&M Fund to complete projects to be approved by the Board of Education at a later date.
Summary • D155 is able to present a balanced budget, “in the black.” • D155 continues to operate in a fiscally responsible manner • Revenues exceeded expenditures in 2014-2015 & 2015-2016 • Revenues are budgeted to exceed expenditures in both 2016-2017 (assuming full state payments to D155) & 2017-2018
Summary • Despite a balanced budget in 2017-2018, financial projections indicate that more adjustments must be made to balance the budget in future fiscal years. • This year, D155 was able to balance the budget by… • reducing almost $1.9 million in departmental/building expenditures • reducing teachers (14.5 FTE) and administration (2.0 FTE).
Next Steps • June 2017: Tentative budget approved at the June Board Meeting • June 2017 – August 2017: Budget on public display • August 2017: Budget hearing and budget approval • The budget plays an integral role in developing D155’s 5 -year financial projections.
ILLINOIS STATE BOARD OF EDUCATION School Business Services Division Accounting Basis: SCHOOL DISTRICT BUDGET FORM * July 1, 2017 - June 30, 2018 Cash x Accrual Balanced budget, no deficit reduction plan is required. Date of Amended Budget: (MM/DD/YY) Community High School District 155 District Name: District RCDT No: 44-063-1550-16 If your FY17 AFR states that you need to do a deficit reduction plan and your FY18 budget is balanced please state the measures you took to have your budget become balanced. (Bckgrnd-Assumpt 25-26) Community High School District 155 , County of McHenry & Lake , Budget of July 1, 2017 June 30, 2018 . State of Illinois, for the Fiscal Year beginning and ending Community High School District 155 WHEREAS the Board of Education of , McHenry & Lake County of , State of Illinois, caused to be prepared in tentative form a budget, and the Secretary of this Board has made the same conveniently available to public inspection for at least thirty days prior to final action thereon; 15th August 17 day of , 20 , AND WHEREAS a public hearing was held as to such budget on the notice of said hearing was given at least thirty days prior thereto as required by law, and all other legal requirements have been complied with; NOW, THEREFORE, Be it resolved by the Board of Education of said district as follows: Section 1: That the fiscal year of this school district be and the same hereby is fixed and declared to be July 1, 2017 June 30, 2018 . beginning and ending Section 2: That the following budget containing an estimate of amounts available in each Fund, separately, and expenditures from each be and the same is hereby adopted as the budget of this school district for said fiscal year. ADOPTION OF BUDGET 15th The budget shall be approved and signed below by members of the School Board. Adopted this August 17 day of , 20 by a roll call vote of Yeas, and Nays, to wit: ** MEMBERS VOTING YEA: ** MEMBERS VOTING NAY: * Based on the 23 Illinois Administrative Code-Part 100 and inconformity with Section 17-1 of the School Code. ** Type in the members who voted "YEA" nor "NAY". Actual school board member signatures are not required for electronic submission. (1) A certified copy of this document must be filed with the county clerk within 30 days of adoption as required by Section 18-50 of the Property Tax Code (35 ILCS 200/18-50). (2) Districts are required to submit the adopted/amended budget electronically to ISBE within 30 days of adoption or by October 30, whichever comes first. Budgets are submitted to School Finance Report (SFR): https://sec1.isbe.net/attachmgr/default.aspx The electronic version does not require member signatures. ISBE 50-36 SB2018 05/17 Community High School District 155 Tentative Budget Finance Committee 6.13.17
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