education needs to be viewed as an investment not an expense

2015 -2016 BudgetPinckneyville Community High School

EDUCATION NEEDS TO BE VIEWED AS AN

INVESTMENT NOT AN EXPENSE

District Expenditure Reduction Measures Impacting Annual Budget Projections

◦ Staff and Program Reductions 12 Full Time Teachers

◦ Support Staff Reductions 2 Bus Drivers, 1 Full Time Tech Support, 1 Full Time Custodian, 1 Full Time Aid

◦ Transportation Service Reductions◦ Moved to a Traditional Schedule◦ New and Increased Fees (Athletic, lunch, etc. )

2015 -2016 BudgetInformational Notes

Energy Conservation Purchasing Program ◦ Ongoing Insurance Program Adjustments◦ Reduced outside contractor fees. ◦ Eliminated Academic and Athletic Budget Line

Items As needed basis only.

District Expenditure Reduction Measures Impacting Annual Budget Projections continued..

PCHS Uses Cash Basis Accounting

◦ Revenues and Expenditures are recognized at the time cash is received or disbursed.

◦ Beginning Fund Balances shown are tentative at the time the budget is balanced. Audit finalization and adjustments to entries may be made after posting.

2015 -2016 BudgetInformational Notes

Public School Budgets are estimates of revenues and expenditures.

This budget was prepared using conservative estimates using trend data generated over recent years:

◦ Revenues are budgeted using low estimates◦ Expenditures are budgeted using high estimates

2015 -2016 BudgetInformational Notes

2015 -2016 BudgetInformational Notes

Variables Impacting Revenue General State Aid Proration Level = 92.06%

Note: This value may not be maintained at this level for the entire fiscal year.

Underfunded Categorical Payments Transportation / Special Education

4 payments reduced to 2 or 3 actual disbursements

Fluctuation in Local EAV Annual Availability of Federal Sources Potential for Property Tax Freeze

Loss of CPI Unable to Capture EAV Growth $$

Revenue Sources

Local Sources✓Tax Revenues from Levy

✓Corporate Personal Property Replacement Tax

✓Food Service Revenues (Breakfast/Lunch Sales)

✓Textbook Rental / Lab Fees / Etc.

✓Flow Thru (District to District / ROE #30)

✓Interest

✓County Schools Facility Tax (New Revenue Stream)

✓Local Donation Programs

Revenue Sourcescontinued.....

State Sources✓General State Aide (GSA)

✓Grant Revenues

✓Sub-Categorical (Special Ed / Transportation Reimbursements)

Federal Sources✓Title Funding

✓Medicaid

✓I.D.E.A

✓Grant Revenues (REAP, PERKINS, E-RATE...)

General State Aid vs. Local Sources

FY12 FY13 FY14 FY15 FY160

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Local SourcesGSA

Budget Summary Detail“Operating” Funds

State Defined ◦“Big 4 Operating” Funds”

◦ Educational Fund◦ Operations and Maintenance◦ Transportation Fund◦ Working Cash

LOCAL SOURCES $2,965,423 FLOW-THROUGH $ 18,689 STATE SOURCES $1,452,037 FEDERAL SOURCES $ 193,764 Total Projected Revenue $4,629,913

Total Proj. Expenditures $4,477,892 Surplus (Deficit) $152,021

Total Projected Budget Revenue / Expenditures

64%0%

31%

4%Total Budget Revenue All Streams

LOCAL SOURCESFLOW-THROUGH STATE SOURCESFEDERAL SOURCES

54%

13%

12%

9%

1%

11%

Total Budget Expenditure Breakdown

Salaries

Employee Benefits

Purchased Services

Supplies & Materials

Capital Outlay

Other Objects / Bond Payment

Budget History

FY12 FY13 FY14 FY15 FY160

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

RevenueExpenditures

Revenue Sources (Big 4 Only)Operating Funds (Ed Fund, O&M, Transportation, WC combined)

Local $1,990,558 - 55%

State $1,452,037 - 40%

Federal $ 193,764 - 5%

Flow Thru $ 18,053 - 0% Total $3,654,412 - 100%

54%

40%

5% 0%

Revenue Streams "Big 4" Operat-ing Funds

LocalStateFederalFlow Thru

ExpendituresOverview

ISBE classifies expenditures using the following categories:✓Salaries✓Benefits✓Purchased Services✓Supplies✓Capital Outlay✓Other (includes dues/fees, tuition, and Debt

Principal/Interest)

Budget Summary Details“Operating” Funds - Education Fund

Education Fund◦ Budgeted Revenues

$3,022,844◦ Budgeted Expenditures

$3,098,555◦ Surplus (Deficit)

($75,711)

◦ Estimated Fund Balance 7/1/15 $3,200,516

◦ Projected Ending Fund Balance 6/30/16 $101,961

Education Fund Expenditures

Salaries $2,052,995 - 66% Benefits $ 447,565 - 15% *Purchase Services $ 301,270 - 10% *Supplies $ 275,975 - 9% Capital Outlay $ 9,300 - 0.03% Other/Tuition $ 11,450 – 0.03% Non-Cap Equip. $ 0 - 0% Total $3,098,555 - 100%

* Includes Some Telephone, Water, Sewer, Gas & Electric Services

66.26%

14.44%

9.72%

8.91%0.30% 0.37%

"Summary of Ed Fund Expenditures"

SalariesEmployee BenefitsPurchased ServicesSupplies & MaterialsCapital OutlayOther Objects / Bond Payment

FY12 FY13 FY14 FY15 FY160

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Historical Salaries and Benefits

BenefitsSalaries

Budget Summary Details“Operating” Funds - Operations and Maintenance Fund

O&M Fund◦ Budgeted Revenues

$245,150◦ Budgeted Expenditures

$242,067◦ Surplus (Deficit)

$3,083

◦ Estimated Fund Balance 7/1/15 $117,151

◦ Projected Ending Fund Balance 6/30/16 $120,234

Operations and Maintenance Expenditures

Salaries $107,650 - 44% Benefits $ 14,491 - 6% Purchase Services $ 54,426 - 23% Supplies $ 63,000 - 26% Capital Outlay $ 2,500 - 1% Total $242,067 - 100%

44%

6%

22%

26%

1%

O&M Expenditure Breakdown

SalariesEmployee BenefitsPurchased ServicesSupplies & MaterialsCapital Outlay

Budget Summary Details“Operating” Funds - Transportation Fund

Transportation Fund◦ Budgeted Revenues

$241,027◦ Budgeted Expenditures

$205,454◦ Surplus (Deficit)

$35,573

◦ Estimated Fund Balance 7/1/15 $176,249

◦ Projected Ending Fund Balance 6/30/16 $211,822

Transportation Fund Expenditures

Salaries $ 121,143 - 59% Benefits $ 5,008 - 03% Purchase Services $ 16,803 - 08% Supplies $ 62,000 - 30% Capital Outlay $ 0 - 0% Other $ 500 – 0% Total $ 205,454 - 100%

59%

2%

8%

30%

Transportation Fund Breakdown

Salaries

Employee Benefits

Purchased Services

Supplies & Materials

Budget Summary DetailsWorking Cash Fund

Working Cash Fund◦ Budgeted Revenues

$ 49,010◦ Budgeted Expenditures $0◦ Surplus (Deficit)

$ 49,010

◦ Estimated Fund Balance 7/1/15 $ 0◦ Projected Ending Fund Balance 6/30/16 $ 49,010

Budget Summary DetailsTotal “Operating” Funds (Ed Fund, O&M,Transportation,Working Cash)

◦Revenues $3,654,412

◦Expenditures $3,546,076

◦Surplus (Deficit) $90,336

*The District budgets conservatively... Revenues are estimated on the “low” side and expenditures are budgeted at “worst-case” scenarios.

Board Policy and ISBE direct that each District should strive to maintain fund balances between 15% and 20% of expenditure levels at the end of each fiscal year.

Board Policy

Recommended Fund Balances “Big 3 Operating Funds” for FY16 June 30th

Recommended Projected◦ Ed = $619,711 $120,234◦ Trans = $41,090 $211,822 (Aging Bus Fleet)◦ O&M = $48,067 $120,234

Total = $708,868 $452,290

Total Below Recommended Level (-$256,578)

Deficit Reduction Plan Issues Adopting this Budget

◦ The District is not required to file a Deficit Reduction Plan with ISBE this year.

◦ We are still required to work with ISBE School Finance Officials to create Quarterly Cash Flow Reports and Projections

** ISBE School Finance Officials do not have a working budget and are restricted to their offices.**

Other “As Needed Funds”

Budget Summary DetailsOther Funds - Debt Service Fund

Debt Service Fund◦ Budgeted Revenues

$480,652◦ Budgeted Expenditures

$480,761◦ Surplus (Deficit)

($ 109)

◦ Estimated Fund Balance 7/1/15 $ 37,296

◦ Projected Ending Fund Balance 6/30/16 $ 37,187

Budget Summary DetailsOther Funds - IMRF/Social Security Fund

IMRF/Social Security Fund◦ Budgeted Revenues

$113,320◦ Budgeted Expenditures

$123,466◦ Surplus (Deficit) ($ 10,146)

◦ Estimated Fund Balance 7/1/15 $ 51,049◦ Projected Ending Fund Balance 6/30/16 $ 40,903

Budget Summary DetailsOther Funds - Life Safety Fund

Life Safety Fund◦ Budgeted Revenues $ 48,910◦ Budgeted Expenditures $ 32,000◦ Surplus (Deficit) $ 16,910

◦ Estimated Fund Balance 7/1/15 $179,465

◦ Projected Ending Fund Balance 6/30/16 $196,375

Budget Summary DetailsOther Funds - Tort Fund

Tort Fund◦ Budgeted Revenues

$286,600◦ Budgeted Expenditures

$280,757◦ Surplus (Deficit) $ 5,843◦ Estimated Fund Balance 7/1/14

$34,386◦ Projected Ending Fund Balance 6/30/15 $40,229