Long Range Planning Finance and Resources

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Long Range Planning Finance and Resources

• Vision 2020

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Go Tigers
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Long Range PlanningFinance/Resource Team

• Larry Gallagher, Co-Chair
• Beth Krehbiel, Co-Chair
• Jerry Wolberg, Co-Chair
• Beth Cameron
• Elizabeth Elder
• Derek Helenberger
• Lauren Hirsch
• Karen Hiyama
• Ken Schewe

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State Funding of Michigan School Districts

• 1)Property Tax
• 6 mills homestead
• 18 mills non-homestead
• 2) 6 sales tax

Foundation Allowance 8034 per pupil
State
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State funding of Michigan School Districts

• State Lottery
• 2005/06 fiscal year info
• Total School Aid Fund (SAF) 12 billion
• Net lottery earnings dedicated
• to School Aid Fund 667 million
• Lottery earnings as of SAF 5.6

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Other School Funding Sources
State Aid Foundation Allowance 31,441,468 Propert
y Tax 3.036,741 Special Ed Funding PA 18
Special Ed County Millage 2,144,519 State Aid
Special Ed 1,840,430 Federal IDEA Special
Ed 792,852 Other State Aid
Categoricals 475,494 Federal Grants
977,017 Other local/misc.
497,348 Total 41,205,869
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2006/2007Oakland County Foundation Allowance
Sample School Districts Foundation
Allowance Bloomfield Hills (1st) 12,220 Birmi
ngham 12,140 Southfield 11,187
Lamphere 10,645 Troy 9,171 Royal
Oak 8,974 Oak Park 8,104Berkley
(17th) 8,034Ferndale 7,994 Hazel
Park 7,619Pontiac
7,269Madison 7,113 Brandon (28th)
7,085
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Factors Causing Michigan Schools Budget Problems

• Michigans weak economy
• No Foundation grant increase in three years
• Unfunded federal and state mandates
• Increase in employee health costs
• Increase in retirement costs

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Factors Causing Michigans Budget Problems

• Weak economy
• Stock Market decline
• Michigans deteriorating share of auto and light
  truck market
• Continuation of tax cuts
• Medicaid costs passed to states from Federal
  government

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How weak is the economy? Michigans recent
statistics (3/05)

• 50th in personal income growth
• 50th in unemployment rate
• 50th in employment growth (decline in overall
  jobs in MI since 2001)
• 50th in Index of Economic Momentum
• (population, personal income, employment)

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How do State Issues Impact our Budget?

• The State controls school funding
• Foundation Allowance Lack of revenue limits the
  States ability to fully fund the Foundation
  Allowance
• Threat of Foundation Allowance proration
• Retirement Costs State passes on all costs of
  retirement benefits to the District

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Berkley School DistrictRecent Financial History
06/07 projected
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What is the impact on Berkley?Forced to reduce
budget by almost 4 million over past 3 years
AND

• Health and retirement costs increased
  substantially in each of these 3 years
• The cost of supplies increased by 3
• The cost of utilities and natural gas increased
  over 500,000 in 2005/06
• Staff salary costs increased by 1-1.5

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Cost per pupil forEmployee Health Retirement
Benefits
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What we are doing

• Tightened schedule
• Reduced staff by attrition
• Offered a Separation Incentive Plan
• Lobbied for school funding reform
• Sold Oakshire (Board Office) property
• Consolidated Avery and Norup and opened a K-8 IB
  Program
• Moved administrative staff into Avery
• Grew Opt 4 Alternative Ed Program
• Dedicated Durant Fund toward curricular
  improvements

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Passed a Building Maintenance Fund millage
generating approx. 710,000 annually for

• Roofs
• Paving projects
• Ventilation
• Windows
• Security System
• Technology Infrastructure
• Lockers

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Looking forward to 2020
Berkley School District World Series Winners