elida local schools financial summit vi report to stakeholders fiscal year 2010-11 joel l....
TRANSCRIPT
Elida Local Schools
Financial Summit VIReport to Stakeholders
Fiscal Year 2010-11Joel L. Parker,CPA
Introductions
Economic OutlookFinancial UpdateRevenue Discussion
Goals Review the financial condition of Elida
Local Schools Expand the knowledge base on school
funding issues Review data for future financial planning Exchange ideas on “best practices” Encourage dialogue on future economic
trends
Discussion - Economy
Modest signs of economic recovery
Unemployment decreasing Housing Market – slight
improvement Rate of Inflation Rate of health care inflation
Concerns State budget gap Tax delinquencies Loss in state aid Loss of inventory tax Loss of interest income No inflationary growth in revenue Unfunded mandates Vouchers
“Everybody is ignorant, only in different subjects” Will Rodgers
OSBA Platform supports legislation that:
Provides a thorough, efficient education Provides for inflationary revenue growth Eliminates “Phantom Revenue” Eliminates over-reliance on local
property taxes Prohibits Federal and State unfunded
mandates Requires all sectors of economy to pay
a fair share of the cost of public education
OHIO TAX “SHIFT”
Remove Inventory Tax Reduce Corporate Franchise Tax Reduce Personal Income Tax Good for business Good for individuals
Result: Schools lose $3 billion
Administration: Salaries for administrators, office staff, and office supplies
ADMINISTRATIVE EXPENSES
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Comparison Group-Administrative Expense Per Pupil FY11
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000Comparison Group-Expense Per Pupil FY 11
State Aid-Line 1.035Fiscal Year Actual 2% Growth ADM
2004 7,561,375
2005 7,502,306 7,712,603 2470
2006 7,434,281 7,866,855 2454
2007 7,567,028 8,024,192 2478
2008 7,511,293 8,184,675 2383
2009 7,538,352 8,348,369 2472
2010 6,928,844 8,515,336 2472
2011 6,921,455 8,685,643 2505
2012 6,896,194 8,859,356 2541
Loss 665,181 2004-12
Tangible Personal Property Tax-Line 1.02
Fiscal Year Actual 2% Growth
2004 1,513,272 1,555,812
2005 1,463,699 1,586,928
2006 1,531,472 1,618,667
2007 1,230,346 1,651,040
2008 826,456 1,684,061
2009 635,757 1,717,742
2010 249,114 1,752,097
2011 305,801 1,787,139
2012 272,662 1,822,882
Loss
1,240,610
2004-2012
Real Estate Tax-Line 1.01
Fiscal Year Actual 2% Growth
2008 8,439,846
2009 8,374,682 8,608,643
2010 8,389,617 8,780,816
2011 8,298,226 8,956,432
2012 8,544,368 9,135,561
Gain
104,522
2008-12
Interest Income
Fiscal Year Actual
2008 240,123 2009 109,127 2010 53,639 2011 20,271 2012 14,045
Decrease 226,078 2008-2012
Tax Delinquencies 2004 $440,608 2005 $393,473 2006 $320,795 2007 $294,267 2008 $468,576 2009 $530,373 2010 $444,274 2011 $455,707 2012 $467,324 Total $3,815,397
Next 50 Years
Where will lost revenue come from? We cannot just increase fees like
hospitals, colleges or private sector Donner Budgeting Process Dual credit example
Total Expense Growth-Line 4.5Fiscal Year Actual CPI
2004 16,761,379 0.96% 2.68
2005 16,931,857 1.02% 3.39
2006 17,784,119 5.03% 3.24
2007 18,781,647 5.61% 2.85
2008 19,436,233 3.49% 3.85
2009 20,154,989 3.70% -0.34
2010 20,821,533 3.31% 1.64
2011 21,399,623 2.78% 3.16
2012 20,473,910 -4.32% 2.93
Increase 3,712,531 21.58% 23.40
2004-2012
(1.9m salary,1m benefits, .9 m other)
Cash Flow StormReal Estate Loss
(163,812)
State Aid Loss (680,147)
Inventory Tax Loss (1,219,505)
Interest Income Loss (223,972)
Expense Growth (3,793,189)
Negative Cash Flow (6,080,625)
Trend Data * No inflationary growth on any revenue stream * Inflation on every aspect of operations
* (Health care,fuel, utilities, wages, special ed, )
WHAT HAVE WE DONE TO STAY LEAN?
Looking back: 2003-04: Administrative cuts $239,155 Administrative Wages - 0% increase 2 yrs Streamlined food service – no general
fund $ Moved staff to PPO insurance plan Moved to partial pay to participate Reduced bus fuel consumption Cost sharing on health premiums
Continued 2004-05-06: Withdrawal from ESC Alternative Program
- $7,000 Attrition of one mechanic’s position -
$58,472 Hire Own Psychologist - $9,923 2004-05 one less teacher at EE 2005-06 one less teacher at EE and HS Partner with WCLA on software $14,000 Review SF6 billing - $24,000
The Bottom Line: Constant Review of
Staffing Meal Policy American Express Bus Idle Share Ins Increases Bulk Paper Bid
Property/Liability Diesel Grant Safe Route Grant Dir dep/email PO
Turn down thermostats Change drug company No health ins R/R New health plans Auto lights switches Bid projects MAC Grants Early bus buy
Cost Reductions: 2009-10
Review set points $74,000 Eliminate Teacher Academy
$65,000 Re-route buses(4) $84,444 Reduce special ed teacher $76,102 Reduce MS Industrial Technolgy Reduce MS Home Economics
And more 2010-11: Consolidate choir position Reduce MS teacher-(technology class) Move Central Office secretary to HS Reduce building budgets Lean on grant $ for technology Work on reductions in health care Reduce bus routes Review staffing Pay off HB 264 Note early Reduce guidance position (HS)
Cost Reduction-Spring 2011/Update
Phase I- Cut 5 teachers, 1 Aide, 1 Guidance = $332,700
Phase II – Close Gomer Phase III – EMS re-configure
Wage Freeze -2011
Administrators – Another 2 yr freeze Adm-same pay FY 11-12,12-13,13-
14 All Others – 0 on base 2 years, steps
year 1, no steps year 2 Savings $823,000
Cuts, Cuts and More Cuts-FY 12-13
Librarian – position to 3 days a week Close Gomer Building Reduce Central Office Director Reduce Gomer Principal/teacher EHS-reduce Success Program EHS-reduce 1 teacher EMS – reduce 1 teacher EE- reduce 1 teacher Reduce 1 aide Reduce 1 secretary Reduce 1.5 custodians Total Savings $590,000
Alternative Funding:
Fieldhouse Renovation $350,000 Concession Building $150,000 Locker/weight room $100,000 Piano Fund Safe Route Grant BWC Grant – Buses $22,000
June 30 Carry-Over: A New Cycle
2000 $1,048,819 23 days 2001 $ 758,675 17 days 2002 $ 821,146 18 days 2003 $ 360,933 8 days 2004 $ 967,429 21 days 2005 $1,865,900 39 days 2006 $2,645,703 53 days 2007 $3,496,376 68 days 2008 $4,071,288 76 days 2009 $4,127,565 74 days 2010 $3,454,672 60 days 2011 $2,845,756 48 days 2012 $2,153,235 38 days
Health Insurance 1/1/09 Medical Rate Increase 15% 1/1/09 Dental Rate Increase 20% 1/1/09 New Plan MDHP Developed 1/1/10 New High Deductible Plan 1/1/10 Medical Rate Increase 20% 1/1/10 Dental Rate Increase 20% 2010 - introduce HDHP plan 2011 - Spousal coordination of benefits Change in TPA and Consultant 2012 – 2 plans (mid and high deductible)
General Fund Expenditures
FY Ended June 30, 2011
Total Revenue: $20,821,610
Instruction: $13,664,960Instr.Staff Support: $ 496,088Pupil Support: $ 605,048
TOTAL $14,766,096
Special Education – General Fund FY Expense
97-98 604,533
98-99 1,063,717
99-00 1,062,413
00-01 1,274,183
01-02 1,318,855
02-03 1,650,698
03-04 1,651,644
04-05 1,442,321
05-06 1,349,258
06-07 1,310,212
07-08 1,421,907
08-09 1,544,590
09-10 1,680,792
10-11 1,511,852
Increase 907,319
Open Enrollment
FY 07 In $535,000 Out $1.3 million FY 08 In $597,000 Out $1.4 million FY 09 In $912,000 Out $1.5 million FY 10 In $1.24 million Out $1.48
million FY 11 In $1.38 million Out $ 1.6
million FY 12 In $1.54 million Out $1.52
million
Tax Base
RESIDENTIAL
$100,017,980$101,438,990$108,803,850$105,507,940$108,714,380
TANGIBLE PERSONAL
$5,116,935-0--0--0--0-
20082009201020112012
DISCUSSION
How do we address declining revenue, remain
lean operationally, and still provide excellence
in education?
Levy OptionsEmergency Property Tax Levy - up to 10yrs set amountTraditional Income Tax - any yr,C -.25 incrementsEarned Income Tax -any year,C- .25 incrementsCombined Ballot Questions (property tax levy + earned income tax) - property tax-up to 10 or C, fixed amount plus .25 increment of earned income
tax will float with economy
Levy Timeline-Future Dates
May 2010 Renewed Emergency Levy Fall 2012 New money levy 2013 PI Levy Continuing 2013 or14 Bond Issue EE-OSFC 2014 Renew Emergency Levy 2016 Renew 2012 Levy 2019 Renew Emergency Levy 2021 Renew 2012 Levy 2024 Renew Emergency Levy 2026 Renew 2012 Levy 2029 Renew Emergency Levy