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2013-2014 Budget Planning

Budget Reduction Session #1 Board of Education Meeting

March 14, 2013

Presented by Dr. Lee Seitz, Superintendent

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The 2013-2014 Budget…

Is our financial plan to achieve our district’s mission, strategic aims, and objectives Safe and Open Environment High Student Achievement Highest Performing Workforce

Meet or Exceed State and Federal Mandates

Purpose of Presentation

The Board of Education has requested possible reductions in the amounts of:

$1,902,820 to reduce the budget to a 2% tax

increase $4,183,028 to reduce the budget to no tax

increase

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A Brief History

In 2010-2011 the District experienced significant reductions as follows: Elimination of non-hazardous busing Staffing

• 26.5 teaching positions • 2 administrative positions • 6 secretarial positions • 13 custodial positions

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A Brief History continued…

In 2010-2011 the District experienced significant reductions as follows: Major concessions in healthcare program for

Local #32 – Maintenance, custodial, and bus driver employees

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A Brief History continued…

The Board of Education considered… Outsourcing custodial service Reducing Kindergarten to a half day program Elimination of the Kindergarten program Reduction of Co-curricular Programs

• Interscholastic sports (approximately $1,700,000) • Clubs (approximately $400,000)

Elimination or Reduction of 10-11 Capital Projects

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Excess Surplus – A Word of Caution!

Failure to adequately fund the 2013-2014 budget to provide for unanticipated expenses and/or to generate excess surplus will result in draconian reductions in the 2014-2015 budget

For 2013-2014, the preliminary budget includes

$3,009,749 in excess surplus which reduces the tax levy Without this level of excess surplus in the 14-15 budget,

property taxes will increase 2% and the resulting budget will not fully support all existing programs and staffing levels

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Impact of Excess Surplus

2014-2015 Budget with a 2% tax levy increase and Excess Surplus

Excess Funds $3,009,749 Tax Levy $120,330,055 State Aid $4,479,502 Misc Revenue $2,694,432 Total $130,513,738

2014-2015 Budget with a 2% tax levy increase and without Excess Surplus

Excess Funds -0- Tax Levy $120,330,055 State Aid $4,479,502 Misc Revenue $2,694,432 Total $127,503,989 This scenario means the district would have to reduce expenditures in 2014-2015 by $3,009,749 even with a 2% tax levy

increase

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2013-2014 Preliminary Budget Reductions and Additions (March 5, 2013)

Staffing The administration cut three new

administrative positions from the 2013-2014 budget reducing the budget by $330,000

The administration reduced the capital

projects from the budget by $300,000 The Board of Education added three School

Resource Officers (SRO) and increased the budget by $240,000

Areas for Budget Reduction Consideration

Generally, when reducing a budget, we consider all the new positions

For 2013-2014, the budget contains the following new positions 5 Elementary Media Specialists $375,000 3 School Resource Officers $240,000 9.1 Special Education positions** ** The elimination of these positions does not have any cost savings and

may cost the district more due to placement of students out of district

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Areas for Budget Reduction Consideration

Co-curricular Programs Interscholastic Sports $1,700,000 Clubs $400,000

Facilities Capital Projects $900,000

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Areas for Budget Reduction Considerations

Miscellaneous Half-day Kindergarten $500,000 Full-day Kindergarten $1,000,000 Re-negotiating Existing Contracts Unknown Middle School Sports $200,000 Freshmen Sports $200,000 Elementary Media Specialists (5) $375,000 Elementary School Counselors(5) $375,000 Late Bus $55,000

Areas for Budget Reduction Considerations

Middle School Reading and Writing $675,000 Program (9 @ &75,000) Grade 4 & 5 Instrumental Music $187,500

(2.5 @ $75,000) Class Size

Secondary • Middle School – 2 @ $70,000 $140,000 • High School – 2 @ $70,000 $140,000

Elementary • Maximum 26 – 2 @ $70,000 $140,000 • Maximum 27 – 6 @ $70,000 $420,000

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Suggested Budget Reductions

The administration is not recommending any reduction in the preliminary budget adopted March 5, 2013 and supports the Board’s addition of $240,000 to fund three new SRO positions The administration has provided approximately $7,167,500 in possible cuts for the Board’s consideration The Board of Education has to determine the needs of the students and balance those needs against:

The cost of reducing the budget by $1,902,820, a cost savings of approximately $81.00 per year for the average homeowner The cost of reducing the budget by $4,183,028, a cost savings of approximately $219 per year for the average homeowner

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Comments, Questions, Recommendations