Cleveland Municipal School District

Cleveland Municipal School DistrictCommunity MeetingANNUAL BUDGETFiscal YEAR 20131The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America.1AgendaFast FactsPieces of a Balanced BudgetAnnual BudgetGeneral Fund RevenuesGeneral Fund ExpendituresGeneral Fund Budget SummaryPath Ahead

22Cleveland Municipal School DistrictFast Facts33Cleveland Municipal School District Fast FactsOur StudentsStudents served: 40,871Student EthnicityAsian or Pacific Islander: 0.8%Black, Non-Hispanic: 67.6%Hispanic: 13.8%American Indian or AlaskanNative: 0.2%Multiracial: 2.9%White, Non-Hispanic: 14.6%

TransportationTransport 8,449 students on yellow buses daily.Transport 6,368 students on RTA daily.Transport 488 students on cabs/vans daily(special needs to mainly alternative schools, ie, PEP schools)The average mileage per day for fleet is 17,000.The estimated mileage per year for fleet is 3,060,000.

Food ServiceNumber of meals served per day 48,000Breakfast 17,000Lunch 31,000Number of meals served per year 8.6 million

Our StaffingOur Staffing - FY 2013 All FundsTeachers (classroom). 2,591Teachers (non-classroom) (e.g. Guidance Counselors) ................402Principals and Assistant Principals ..................................176Clerical/Support ........................................................................... 200Custodial ..............................................................................376District administrators .................................................................. 31Food Service ................................................................................. 443Paraprofessionals ......................................................................... 636Security .........................................................................................240Technical/Professional ................................................................. 328Trades ...........................................................................................38Transportation .............................................................................. 292Truck Drivers ................................................................................. 10

Total Permanent Positions ........................................................... .5,763

Our SchoolsNumber of Schools: 99 K-3: 1 K-5: 2 K-12: 1 2-12: 1 PreK-8/K-8: 68 High Schools: 264Cleveland Municipal School DistrictPieces of a Balanced Budget556Building the Pieces of a Balanced Budget

Reduction In ForceEmployee Separation PlanSchool Facility PlanLabor NegotiationsBudget ReductionsOperational Efficiencies6Cleveland Municipal School DistrictMay 2012 Five-Year Forecast(in millions of dollars)7

7Cleveland Municipal School DistrictAnnual Budget88Cleveland Municipal School DistrictFY 2012-2013 Budget9Where the money comes fromThe majority of dollars come from the state through foundation dollars which is shown in yellow or state reimbursementsThe district receives 23.7% from local property taxes9Cleveland Municipal School DistrictGeneral Fund Revenues1010Cleveland Municipal School DistrictFY 2012-201311Where the money comes fromThe majority of dollars come from the state through foundation dollars which is shown in yellow or state reimbursementsThe district receives 23.7% from local property taxes11Cleveland Municipal School DistrictProperty Taxes Current Collection Rate12Current Collection RateYearThe district will receive new collection rate from Cuyahoga County in November/December12Bridge FormulaBRIDGE Formula intended to:Be a transition from the Evidenced Based Model to a new formula (not yet developed).School district funding will be adjusted to maintain an appropriated level of funding on a state-wide basis. Adjustments may be made throughout the school year.Property wealth (charge-off valuation) still used in formula.

Per pupil funding amount - $7,256 +/- various adjustments.

13Cleveland Municipal School DistrictK-12 ADM Summary-CMSD - Charter14*ProjectedK-12 ADM for FY10 through FY1314CMSD General Fund Revenue Decline15*Projected$80.6 million loss in revenue from FY11 to FY13 15Cleveland Municipal School DistrictGeneral Fund Expenditures1616Cleveland Municipal School DistrictWhere the Money Goes17Salaries and Benefits make up the largest piece of the Budget. They account for 61.3% of the budget with the Charter School Pass-through. If you back out the Charter school pass through, salaries and benefits make up over 80% of the budget.The budget assumes that the Charter School Pass-through will increase to $129.7 million.Budget assumes a total of 2,591 classroom teachers, of which 2,300 are budgeted within the general fund. In total we are 515 less classroom teachers than FY 12.Healthcare rates are forecasted to increase to 7.7% in FY 13Budget assumes all union agreements as currently defined.Budget assumes $3.2 textbook budget.On the next slide we will talk more about the expenditures.17Cleveland Municipal School DistrictTotal General Fund Expenditures without Charter School Tuition(in millions)18*ProjectedThe total general fund expenditures without the $129.7 charter school pass-through are $512.2 million.Salaries and benefits include savings from the recent layoffs, employee separation plan (1.9) and union concessions.Salary and benefits were also offset slightly by shifting $4.3 from Title I and Title II-A.Healthcare rates are forecasted to increase 7.7% in FY 13.Purchase services include: tuition, RTA, Cabs and Vans, Payments in lieu of transportation.$3.2 million in the textbook budgetNo decreases at the school level.Met with member of the senior leadership team and cut 5% from their budget. This is after a 20% cut in FY 12. When compared FY 2010 to FY 2013 we can see than the District has reduced its operating budget by almost $90 over the past three years.

18Cleveland Municipal School DistrictUpdated Five-Year Forecast(in millions of dollars)19

By updating this information within the 5-yr forecast, this would leave the District with a 13.1 M deficit for the current fiscal year. Please keep in mind that we will be presenting the Board and community with an updated 5-yr forecast next month. There is quite a bit of information that we will be finding out over the next several weeks that can impact the 5 year forecast such as:The property tax settlement and collectionsEnrollment Projections.19$13.1 Million Adjustment$13.1 million has been reduced from salaries and benefits to balance the budget. Possible future solutions include:Union NegotiationsRevenue AdjustmentsSecond Semester Reductions

20In order to have a balanced budget by Oct 1, the District needed to do a $13.1 million adjustment, which was taken from salary and benefits. We are currently still negotiating with the CTU and we are also hoping our revenues come in better than forecasted, meaning the passage of the levy or an increase in enrollment.If we can not find a solution with the CTU or revenue do not increase then with no other option to make second semester reductions, we will be left.20Cleveland Municipal School DistrictGeneral Fund Budget Summary2121Cleveland Municipal School DistrictFY2013 Budget(in millions of dollars)22

This is an updated slide to show the $13.1 million adjustment, with a balanced budget.22What we Have Done to Balance the BudgetReduced the size of the staff - 585 less positions in the FY13 budgetEmployee Separation Plan299 Employees Accepted planLabor NegotiationsNegotiated 8 of 9 contracts though June 30, 2013Budget ReductionsOperational EfficienciesUtilitiesTransportationLegal FeesPursuing LevyNovember 2012

23Separation Plan 299 Employees Accepted, because of this we were able to recall 259 teachers that would have other wised been laid-off.

Labor Negotiations on average we received a 6% wage concession from the 8 unions that have agreed to a contract.Operational Efficiencies:Utilities - $700,000 lessTransportation Negotiated lower rates with RTA also for FY 13 we are transporting 2,500 more K-8 students and implemented a shuttle services for all H.S students within a 3 mile radius.

Levy If this were to pass, this would generate about $50-$60 million a year and about $25-$30 million this year.23Cleveland Municipal School DistrictPath Ahead2424Cleveland Municipal School District Path AheadPortfolio StrategyEquityUniversal AutonomyPupil Based FundingSchools Able to Choose SupportData System tied to Student AchievementAccountability Systems

2525Cleveland Municipal School DistrictFiscal Year 2013 Annual BudgetQuestions

2626Sheet1FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 20162016Beginning Cash Balance $82.0$50.4$13.0$34.8$26.8($12.3)($65.9)($135.7)

Total Revenues 668.2662.7668.2647.8611.2607.1606.1608.1

Total Expenses 699.8700.1646.4655.8650.3660.7675.9691.3

Revenue over Expenses (31.6)(37.4)21.8(8.0)(39.1)(53.6)(69.8)(83.2)

Ending Cash Balance 50.413.034.826.8(12.3)(65.9)(135.7)(218.9)

Encumbrances/Reserves 7.06.58.27.07.07.07.07.0

Unencumbered Balance $43.4$6.5$26.6$19.8($19.3)($72.9)($142.7)($225.9)

Sheet1FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 20162016Beginning Cash Balance $82.0$50.4$13.0$34.8$41.7($2.0)($60.1)($134.5)

Total Revenues 668.2662.7668.2654.2611.3607.1606.1608.1

Total Expenses 699.8700.1646.4647.3655.0665.2680.5695.8

Revenue over Expenses (31.6)(37.4)21.86.9(43.7)(58.1)(74.4)(87.7)

Ending Cash Balance 50.413.034.841.7(2.0)(60.1)(134.5)(222.2)

Encumbrances/Reserves 7.06.58.211.111.17.07.07.0

Unencumbered Balance $43.4$6.5$26.6$30.6($13.1)($67.1)($141.5)($229.2)

Sheet1FY 2010 FY 2011 FY 2012 FY 2013

Beginning Cash Balance $50.4$13.0$34.8$41.7

Total Revenues 662.7668.2654.2611.3

Total Expenses 700.1646.4647.3655.0Adjustment(13.1)Revenue over Expenses (37.4)21.86.9(30.6)

Ending Cash Balance 13.034.841.711.1

Encumbrances/Reserves 6.58.211.111.1

Unencumbered Balance $6.5$26.6$30.6$0.0