lenawee county sup'ts assoc. 3-12-10 presentation

8/14/2019 Lenawee County Sup'ts Assoc. 3-12-10 presentation

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Community School Finance

Press ConferenceMarch 12, 2010


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Michigan School Business Officials


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Annual Percentage Changes in State Revenue

FY 2008-09 FY 2009-10 FY 2010-11

Income Tax (19.0)% (9.9)% 1.4%

Sales Tax (10.1) (3.2) 0.9

Use Tax (19.2) 2.7 1.5

Michigan Business Tax N/A (1.4) 0.4

State Education Property Tax (1.9) (8.1) (4.0)

General Fund/GeneralPurpose

(21.3) (6.3) 1.0

School Aid Fund (5.1) (4.3) 0.2

Based on January 2010 consensus revenue estimates



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Where the Money Comes From


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School Aid Fund Appropriations History(Millions of Dollars)

Fiscal Year State-Funded

Appropriations

Dollar Change Percent Change

1997-98 $9,307.4 $749.1 8.8%

1998-99 9,495.1 187.7 2.0

1999-2000 9,957.6 462.5 4.9

2000-01 10,732.3 774.7 7.8

2001-02 11,220.6 488.3 4.52002-03 11,334.6 114.0 1.0

2003-04 11,059.3 (275.3) (2.4)

2004-05 11,113.5 54.2 0.5

2005-06 11,308.1 194.6 1.8

2006-07 11,597.0 288.9 2.6

2007-08 11,421.8 (175.2) (1.5)

2008-09 11,097.8 (324.0) (2.8)

2009-10 10,771.7 (326.1) (2.9)

Change FY 1999-2000 to FY 2009-10 $814.1 8.2%Michigan School Business Officials


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K-12 Schools Minimum FoundationAllowance

Fiscal Year Enacted Per Pupil After Reductions Percent Change

1999-2000 $5,700 $5,700 N/A

2000-01 6,000 6,000 5.3%

2001-02 6,500 6,500 8.3

2002-03 6,700 6,626 1.9

2003-04 6,700 6,626 0.0

2004-05 6,700 6,700 1.1

2005-06 6,875 6,875 2.6

2006-07 7,108 7,085 3.4

2007-08 7,204 7,204 1.4

2008-09 7,316 7,316 1.6

2009-10 7,151 7,151 (2.3)

10-Year Change $1,451 $1,451

10- Year % Change 25.5% 25.5%

10-Year Detroit CPI %Change

24.6% 24.6%



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11/28Michigan School Business Officials


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FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

NormalCost

6.47% 6.42% 6.06% 6.26% 6.26% 6.31% 5.47% 5.49% 5.28% 5.17% 3.98% 3.74%

UAL .59% .19% .06% .68% .68% 2.01% 4.32% 5.70% 4.89% 4.56% 6.15% 8.42%

TotalPension

7.06% 6.61% 6.12% 6.94% 6.94% 8.32% 9.79% 11.19% 10.17% 9.73% 10.13% 12.16%

Health 4.60% 5.55% 6.05% 6.05% 6.05% 6.55% 6.55% 6.55% 6.55% 6.81% 6.81% 7.25%

TotalHealth &Pension

11.66% 12.16% 12.17% 12.99% 12.99% 14.87% 16.34% 17.74% 16.72% 16.54% 16.94% 19.41%

MSPERS Contribution Rates


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Revenues per PupilState vs. Lenawee County Average


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Expenditures per Pupil for Instructional ProgramsState vs. Lenawee County Average


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Expenditures per Pupil for Supporting ServicesState vs. Lenawee County Average


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Fund Equity Issues

MSBO recommends 15-20% Typically

Cash on Hand

Accounts Receivable Inventory/Prepaid Expenses

Varies among districts Lenawee local district General Fund Equity

ranges from ($195,898) to $3,336,215Michigan School Business Officials


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MSBO Budget Issues Survey

74% laid off/did not fill positions (over 3,000teachers/admin/support staff)

54% consolidated/collaborated services 54% increased class sizes 61% froze salaries and benefits for some or all

employees



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Lenawee County Schools-Budget ReductionsPrevious Years

Student Instructional Days reduced Closed school buildings Sold school buildings Privatized Transportation services Privatized Food Service Privatized Grounds Maintenance Sold School Buses Sold Outside Grounds Maintenance Equipment Partially privatized custodial services

Employee concessions such as reduced wages, hours, benefits and/or increasedemployee contribution to benefits Reduced Central Office and Business Office Staff Reduced paid coaching positions Reduced coaching pay

Eliminated intervention programs


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Eliminated Alternative Education Program Offered employees Early Retirement Incentives Eliminated paid stipends to Department Chairs and other leadership

positions/duties Reduced number of Building Administrators Shared services between districts in Food Service, Business Office, Technology and

other services Hired Athletic Coaches through Third Party Service Restructured Administrative positions and duties Purchase of Athletic Uniforms Eliminated or Off Schedule Reduced and combined Bus Routes Bus Purchases eliminated and off purchasing cycle Textbook purchases reduced or eliminated Teaching supply purchases reduced


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Library book purchasing reduced Increased employee contribution towards cost of benefit plans Reduced Employee Benefit Plan features Furnishings and replacement purchases reduced or eliminated Drama budget reduced Music budget reduced Athletic Budget reduced Professional Development and Professional Conferences reduced or eliminated Special Education teaching and supervision positions reduced or eliminated

Counselor positions eliminated Eliminated After-School Tutoring programs Eliminated Summer School Programs Eliminated Latchkey and Childcare programs Eliminated Literacy and/or Reading Specialist positions


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Teaching positions eliminated Field Trips paid for by District eliminated Food Service privatized Administrative pay freezes and/or return/reduction of salary Extra-curricular offerings at all levels reduced or eliminated Driver Education privatized Lunchroom Supervision reduced or eliminated Publishing and postage reduced significantly Technology purchases, replacements and repairs reduced

Increased price of admissions to athletic events Curriculum Coordinator positions eliminated Custodial positions eliminated Third party contracting of administrative positions including Principals & Athletic

Directors


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Eliminated Volunteer Coordinator position Eliminated In-School Suspension position Reduced athletic travel Installed timers and sensors on lights, vending machines, water heaters, Reduction of Teachers, Custodians, Classroom Assistants, Bus Drivers, Secretaries,

Food Service Administrators and other Staff Instituted Pay-to-Play for Athletics Hired Athletic Coaches through Third Party Service Reduced or Eliminated 9th Grade Athletic Teams & Middle School Interscholastic

Teams Assessed student fees for Field Trip Transportation


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Lenawee County Schools-Budget ReductionsPlanned for 2010-2011

Reduction or elimination of teaching positions Reduction or elimination of administrative positions Reduction or elimination of counselor positions Reduction or elimination of after-school and tutoring programs Elimination of Summer School programs Reduction or elimination of nursing services Reduction or elimination of Secretarial positions Reduction of Business or Central Office positions Increase employee contribution towards cost of benefit plans

Reduce Employee Benefit Plan features


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Lenawee County Schools-Budget ReductionsPlanned for 2010-2011

Reduce from dual bus runs to single runs Combine bus routes longer routes at maximum capacity Elimination of transportation to athletic events Reduction of paid coaching positions Reduction or elimination of 9 th Grade athletic teams Restructuring and expansion of Administrative positions and duties Reduction of Teachers, Custodians, Classroom Assistants, Bus Drivers, Secretaries,

Food Service Administrators and other Staff Reduce or Eliminate 9th Grade Athletic Teams & Middle School Interscholastic

Teams Assess participation fees for extracurricular activities other than Athletics


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Call to Action Senator Cameron C. Brown

Phone -517-373-5932 E-mail [email protected]

Representative Dudley Spade Phone- 517-373-5777 E-mail [email protected]

lenawee county sup'ts assoc. 3-12-10 presentation

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