South Lyon Community Schools Presented May 18, 2020 The State of - PowerPoint PPT Presentation

South Lyon Community Schools Presented May 18, 2020

The State of the State 2020-21 Preliminary Budget What about SLCS? Financial Forecast

The State of the State

Per Pupil Governor House Senate P. Budget Per Pupil Foundation (2020-21) $ 8,336 N/A N/A $ 7,611 Per Pupil Foundation (2019-20) $ 8,111 N/A N/A $ 8,111 Net Increase $ From 2019-20 $ 225 N/A N/A ($500) Net Increase % From 2019-20 2.77% N/A N/A (6.16%) Net $ Increase / (Decrease) $1,972,800 N/A N/A ($4,484,000) At Risk, Spec Ed, CTE Increase $307,427 N/A N/A $0 TOTAL $2,280,227 N/A N/A ($4,484,000)

Source: Senate Fiscal Agency

School Aid Fund from Michigan’s major taxes was estimated to have a $1.1 billion shortfall for the 19-20 fiscal year at the May 2020 CREC, resulting in an estimated $650-$700 per pupil funding cut in the current 19-20 fiscal year. Lower than projected sales tax collections in conjunction with the decline in casino revenue accounted for much of the discrepancy between actual collections and the monthly target estimate. Year-to-date SAF revenue for FY 2019-20 are $1.2 billion below the January consensus revenue projections. Lower than expected sales tax collections are the primary reason, although casino tax revenues and SET collections are also below the YTD target estimates.

Source: Senate Fiscal Agency

2020-21 Preliminary Budget

Met May 4, 2020 and May 11, 2020 Reviewed 2020-21 Preliminary Budget Suggested a $500 per pupil reduction for 20-21 budget and even a cut possible for 19-20 due to Covid 19 Pandemic and loss of sales tax in the SAF Suggested conservative budgeting of State Aid and amending the fund balance policy for 2020-21

Total Revenues $86,899,455 Total Expenditures 88,576,655 Net Operating (Loss) Income ($1,677,200) Transfers to Other Funds $846,000 Net Increase (Decrease) in Fund ($2,523,200) Balance

Revenues

Federal ISD 3% Local/Other 5% 2% State 90%

2019-20 Overall Per Pupil Allocation $8,111 2020-21 Per Pupil Increase (Decrease) ($500) 2020-21 Total Per Pupil Allocation $7,611

2019 Fall Student Count 8,773 2020 Est. Increase (0.00%) 0 2020 Est. Fall Student Count 8,773

Fall 2020 Est. Student Count 8,773 Spring 2020 Student Count 8,724 Weighted Avg. Student Count (90%/10%) 8,768 2020-21 Total Per Pupil Allocation $7,611 2020-21 Total Foundation Revenues $66,733,248

2020-21 Total Foundation Revenues $66,733,248 Less: 18 Mills Levied on Non-Homesteads $9,172,067 State Portion of Foundation Allowance $57,561,181 18 Mills Levied on Non-Homesteads $9,172,067 Less: Delinquencies (0.50%) -$50,750 Amount of Local Taxes $9,121,317

2019-20 Current Allocations $7,342,966 $17,623 2020-21 Estimated Increase 2020-21 Estimated Allocations $7,360,589

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 2019-20 Per Student based on South Lyon Student District Base Foundation Count of 8,773 Southfield $ 11,331 $ 28,249,060 Farmington $ 10,405 $ 20,125,262 Novi $ 8,839 $ 6,386,744 County Avg.* $ 8,935 $ 7,228,952 State Avg.* $ 8,403 $ 2,561,716 South Lyon $ 8,111 $ 0 * Estimate

DISTRICT Revenues Rank DISTRICT Revenues Rank DISTRICT Revenues Rank Pontiac $18,405 34 West Bloomfield $11,910 145 Lake Orion $11,282 226 Bloomfield $16,748 42 Troy $11,757 165 Madison $10,351 464 Birmingham $15,848 50 Clarenceville $11,624 179 Brandon $10,875 302 Southfield $16,560 45 Walled Lake $11,583 186 Avondale $10,322 470 Farmington $14,943 57 Rochester $11,596 182 Huron Valley $10,784 327 Lamphere $13,389 83 Holly $11,773 162 Berkley $10,458 426 Ferndale $11,994 141 Clarkston $10,874 303 Oxford $9,934 618 Royal Oak $12,453 107 Waterford $11,698 169 South Lyon $10,099 559 Clawson $12,318 118 Hazel Park $11,495 198 Novi $11,777 160 Oak Park $12,408 111 * From State of Michigan Bulletin 1014 Total of 827 Public and Charter Schools (538 Public and 289 Charters)

Expenditures

Other 3% Benefits Salaries 36% 51% Supplies Cap. Outlay 4% 0% Purchased Serv. 6%

Salaries: 62.5% of Est. Per Pupil Increase of (6.16%) = (3.85)% 1% Increase to top step (MESPA 65% of (6.16%) = (4.00%) Steps, New hires, retirements/resign/layoffs. Overall estimated decrease = ($212,478) Fringe Benefits: Includes impact of PA 152 Cap increased by Medical CPI (3.3%) Difference paid by employee Overall estimated increase = $200,255

Retirement: Various Plans 27.50% Avg. Retirement Rate 12.41% MPSERS Stabilization 39.91% Total Rate Overall est. cost increase=$ 84,800

2019-20 2020-21 +/- in +/- in Object A. Budget P. Budget Dollars % Salaries $45,950,504 $45,738,026 -$212,478 -0.46% Benefits 31,797,087 32,082,142 285,055 0.89 Services/Supplies Capital/Other 12,868,639 11,658,112 -1,210,527 -9.40 TOTAL $90,616,230 $89,478,280 -$1,137,950 -1.26%

Class Size 2017-18 2018-19 2019-20 2020-21 K-5 actual class size 24.0 24.7 24.7 K-5 class size target 25.0 25.0 25.0 28.0 Enrollment Increase 2017-18 2018-19 2019-20 2020-21 Estimated 3.5% 2.0% 2.0% 0.0% Actual 1.5% 2.6% 1.7% Teacher 2017-18 2018-19 2019-20 2020-21 Increases/Decreases Estimated 10 1 5 -7 Actual 15 4 5

Position FTE Teachers – Unassigned -6.0 Teachers – Pre K -1.0 Para-Professionals -1.0 Bus Drivers -1.0 Support Staff -11.0 Administration -1.0 Maintenance -4.0 TOTALS -25.0 * 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 Past budget adjustments have been focused on non-instructional areas In 2008-09 $7.2 million more spent on instructional costs versus support costs For 2020-21 Preliminary Budget, gap increases by 341% to $21.1 million

$60 $54.92 $54.89 $55 $52.48 $50.95 $48.69 $50 $44.33 $45 $41.33 $38.68 $40 $36.86 Millions $35.12 $33.28 $33.79 $35 $32.81 $32.91 $31.45 $31.82 $28.79 $30 $25.36 $26.21 $26.79 $25 $23.37 $23.15 $21.74 $21.41 $20 $15 $10 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20* 20-21* Series1 Series2 *Budgeted

1 Administration Staff $181,316 1 Middle School Support Staff $104,520 1 Central Office Support Staff $63,553 1 Elementary Staff $85,000 $100 District Classroom Funds $25,000 8 Elementary Support Staff $80,000 Increase Class Size $595,000 Eliminate Optional Program $28,000 2 Operational Staff $104,000

19-20 Building Allocation Donations $61,346 1 Secondary Support Staff $110,000 Central Office Budget Reductions $372,227 Extra Duty Pay Reduction $87,400 2 Operational Support Staff $67,024 4 Secondary Support Staff $165,000 SLHS & SLEHS Carryover Donation $100,000 Schedule C Reductions $60,000 20-21 Building Budget Reductions $95,600

Summer Expense Reductions $26,860 .3 Special Ed Support Staff $25,125 2 Special Education Staff $170,000 District Capital Budget $129,000 District Operational Budget $45,500 2 Maintenance Staff $122,394 District Technology Budget $38,900

Total Reductions Identified $2,942,765 Breakdown of Reductions Non-Instructional Reductions $1,047,118 Instructional Support Reductions $985,647 Classroom Instruction $910,000

Financial Forecast

Previous budget adjustments continue Includes revenue and expenditure changes since May of 2020 Includes revised state aid and enrollment projections

Original (April 2019) 20-21 21-22 Enrollment 1.00% 2.00% State Aid 1.40% 1.40% Revised (April 2020) 20-21 21-22 22-23 Enrollment 0.00% 1.00% 1.00% State Aid -6.6% 1.40% 1.40%

2,000,000 1,500,000 1,000,000 500,000 0 -500,000 -1,000,000 -1,500,000 -2,000,000 -2,500,000 -3,000,000 13-14 14-15 15-16 16-17 17-18 18-19 19-20* 20-21* 21-22* 22-23* * 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 13-14 14-15* 15-16 16-17 17-18 18-19 19-20* 20-21* 21-22* 22-23* * Estimated

12% 10% 8% 6% 4% 2% 0% 13-14 14-15 15-16 16-17 17-18 18-19 19-20* 20-21* 21-22* 22-23* * Estimated

20-21 21-22 22-23 Operating Surplus/(Shortfall) ($2,578,826) ($2,322,688) ($1,787,245) Annual Operating Surplus? No No No Fund Balance $5,657,194 $3,334,528 $1,547,283 Fund Balance 9.0% - 11.0%? No No No *This would require an adjustment in the fund balance range to 5.0% - 7.0%

What about SLCS?

Teamsters Contract (Expires June of 2022) MESPA Contract (Expires June of 2023) SLAA Contract (Administrators) expires June 2020 SLEA Contract (Teachers) expires August 2021

Finance Committee Review Meeting June 1 Public Hearing on June 1 State’s Target Budget Approval Date Unknown Board Approval on June 15 Finalize Budget Document in June/July Amend Budget in Fall based on actual student enrollment and per pupil funding amounts