South Lyon Community Schools Presented May 6, 2019 The State of the - PowerPoint PPT Presentation

South Lyon Community Schools Presented May 6, 2019

The State of the State 2019-20 Preliminary Budget What about SLCS? Financial Forecast

The State of the State

Per Pupil Governor House Senate P. Budget Per Pupil Foundation (2019-20) $ 8,051 N/A $ 8,141 $ 8,051 Per Pupil Foundation (2018-19) $ 7,871 N/A $ 7,861 $ 7,861 Net Increase $ From 2018-19 $ 180 N/A $ 270 $ 180 Net Increase % From 2018-19 2.29% N/A 3.43% 2.29% Net $ Increase $1,428,516 N/A $2,142,774 $1,428,516 At Risk, Spec Ed, CTE Increase $720,560 N/A $0 $0 TOTAL $2,149,076 N/A $2,142,774 $1,428,516

Source: Senate Fiscal Agency

Source: Senate Fiscal Agency

Source: Senate Fiscal Agency

Source: Senate Fiscal Agency

Source: Senate Fiscal Agency

2019-20 Preliminary Budget

Met April 18, 2019 and April 26, 2019 Reviewed 2019-20 Preliminary Budget Discussed potential delay in State budget adoption Suggested conservative budgeting of State Aid and amending the fund balance policy for 2019-20

Total Revenues $90,268,952 Total Expenditures 88,983,009 Net Operating (Loss) Income $1,285,943 Transfers to Other Funds $775,000 Net Increase in Fund Balance $510,943

Revenues

Federal ISD 3% Local/Other 4% 2% State 91%

2018-19 Overall Per Pupil Allocation $7,871 2019-20 Per Pupil Increase (Est.) 180 2019-20 Total Per Pupil Allocation $8,051

2018 Fall Student Count 8,645 2019 Est. Increase (2.00%) 173 2019 Est. Fall Student Count 8,818

Fall 2019 Est. Student Count 8,818 Spring 2019 Student Count 8,639 Weighted Avg. Student Count (90%/10%) 8,800 2019-20 Total Per Pupil Allocation $8,051 2019-20 Total Foundation Revenues $70,848,800

2019-20 Total Foundation Revenues $ 70,848,800 Less: 18 Mills Levied on Non-Homesteads $ 9,100,000 State Portion of Foundation Allowance $ 61,748,800 18 Mills Levied on Non-Homesteads $ 9,100,000 Less: Delinquencies (0.50%) -$ 45,500 Amount of Local Taxes $ 9,054,500

2018-19 Current Allocations $6,724,330 $704,241 2019-20 Estimated Increase 2019-20 Estimated Allocations $7,428,571

While Proposal A was never intended to fund all schools equally, the question must still be asked, “Are South Lyon students worth millions of dollars less than the an average district in the State?”

Additional Per Pupil Dollars 2018-19 Per Student based on South Lyon Student District Base Foundation Count of 8,645 Southfield $ 11,211 $ 28,874,300 Farmington $ 10,285 $ 20,869,030 Novi $ 8,719 $ 7,330,960 County Avg.* $ 8,695 $ 7,123,480 State Avg.* $ 8,163 $ 2,524,340 South Lyon $ 7,871 $ 0 * Estimate

DISTRICT Revenues Rank DISTRICT Revenues Rank DISTRICT Revenues Rank Pontiac $20,659 23 West Bloomfield $11,636 124 Lake Orion $10,935 216 Bloomfield $16,241 38 Troy $11,609 130 Madison $10,791 239 Birmingham $15,055 43 Clarenceville $11,531 140 Brandon $10,443 317 Southfield $14,940 46 Walled Lake $11,339 159 Avondale $10,399 333 Farmington $14,325 53 Rochester $11,326 161 Huron Valley $10,351 345 Lamphere $12,827 73 Holly $11,314 164 Berkley $10,282 366 Ferndale $12,059 96 Clarkston $11,293 168 Oxford $9,761 571 Royal Oak $11,959 106 Waterford $11,211 180 South Lyon $9,747 578 Clawson $11,888 109 Hazel Park $11,116 195 Novi $11,659 123 Oak Park $10,951 214 * From State of Michigan Bulletin 1014 Total of 830 Public and Charter Schools (538 Public and 292 Charters)

Expenditures

Other 2% Benefits 35% Salaries 51% Supplies Cap. Outlay 5% Purchased Serv. 1% 6%

Salaries: 62.5% of Est. Per Pupil Increase of 2.28% = 1.42% (MESPA 65% of 2.28% = 1.49%) Step increases, New hires, retirements/resign. Overall estimated increase = $1,610,767 Fringe Benefits: Includes impact of PA 162 Cap increased by Medical CPI (1.95%) Difference paid by employee Overall estimated increase = $315,156

Retirement: Various Plans 27.24% Avg. Retirement Rate 12.41% MPSERS Stabilization 39.65% Total Rate Overall est. cost increase=$1,041,538

2017-18 2019-20 +/- in +/- in Object A. Budget P. Budget Dollars % Salaries $44,016,026 $45,626,793 $1,610,767 3.7% Benefits 30,181,526 31,659,737 1,478,211 4.9 Services/Supplies Capital/Other 11,466,789 12,471,479 1,004,690 8.8 TOTAL $85,664,341 $89,758,009 $4,093,668 4.8%

Class Size 2016-17 2017-18 2018-19 2019-20 K-5 actual class size 24.0 24.0 24.7 K-5 class size target 25.0 25.0 25.0 25.2 Enrollment Increase 2016-17 2017-18 2018-19 2019-20 Estimated 5.0% 3.5% 2.0% 2.0% Actual 3.5% 1.5% 2.6% Teacher Increases 2016-17 2017-18 2018-19 2019-20 Estimated 42 10 1 5 Actual 51 15 4

Position FTE Teachers – Unassigned 3.0 Teachers – Pre K 2.0 Para-Professionals – Pre K 2.0 Asst. Principal – Middle Schools 1.0 Administrative Intern – Middle Schools (1.0) Bus Driver 1.0 TOTALS 8.0 * Full Time Equivalent

Instruction is defined as direct classroom costs Does not include costs such as guidance counselors, media specialists, social workers, nurses, PT and OT Budget adjustments have been focused on non- instructional areas In 2008-09 $7.2 million more spent on instructional costs versus support costs For 2019-20 Preliminary Budget, gap increases by 300% to $21.6 million

$60 $54.92 $55 $52.48 $50.95 $48.69 $50 $44.33 $45 $41.33 $38.68 $40 $36.86 Millions $35.12 $35 $33.28 $32.17 $32.81 $32.91 $31.45 $31.82 $28.79 $30 $25.36 $26.21 $26.79 $24.90 $25 $23.37 $23.15 $21.74 $21.41 $20 $15 $10 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19* 19-20* Instructional Support *Budgeted

Financial Forecast

Previous budget adjustments continue Includes revenue and expenditure changes since May of 2018 Includes revised state aid and enrollment projections

Original (April 2018) 19-20 20-21 Enrollment 2.00% 2.00% State Aid 1.40% 1.40% Revised (May 2019) 19-20 20-21 21-22 Enrollment 2.00% 1.50% 1.00% State Aid 2.28% 1.40% 1.40%

1,500,000 1,000,000 500,000 0 -500,000 -1,000,000 -1,500,000 12-13 13-14 14-15 15-16 16-17 17-18 18-19* 19-20* 20-21* 21-22* * Estimated

9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 12-13 13-14 14-15* 15-16 16-17 17-18 18-19* 19-20* 20-21* 21-22* * Estimated

14% 12% 10% 8% 6% 4% 2% 0% 12-13 13-14 14-15 15-16 16-17 17-18 18-19* 19-20* 20-21* 21-22* * Estimated

19-20 20-21 21-22 Operating Surplus/(Shortfall) $1,285,943 $1,591,821 $2,108,720 Annual Operating Surplus? Yes Yes Yes Fund Balance $7,462,820 $8,004,641 $8,713,361 Fund Balance 9.0% - 11.0%? No* No Yes *Similar to 2018-19, would require an adjustment in the fund balance range to 8.0% - 10.0%

What about SLCS?

SLCS has received the Certificate of Excellence in Financial Reporting each year since 1997 SLCS has received the Meritorious Budget Award each year since 1995 We are one of only 3 districts in Michigan to receive national recognition for both awards from the Association of School Business Officials International Awards are intended to provide transparency for both a district’s budget as well as financial statements

Teamsters Contract (Expires June of 2022) MESPA Contract (Expires June of 2023) SLAA Contract (Administrators) expires June 2020 SLEA Contract (Teachers) expires August 2020

Finance Committee Review Meeting May 9 State Revenue Consensus Meeting Mid May Public Hearing on May 20 State’s Target Budget Approval Date May 30 Board Approval on June 3 or 17 Finalize Budget Document in June/July Amend Budget in Fall based on actual student enrollment