Onsted Community Schools

2009-2010
Budget Presentation
June 2009
Presenters
Mrs. Angela Mitchell
Mr. Felix Umeana
Mr. Robert Wright

Agenda
Stakeholder
Michigan
Current

Involvement

Financial Outlook

District Budget & Fund Balance

Enrollment
Examine
Solutions

History, Trends, & Projection

2009/10 Budget Data

to the budget dilemma
Mitchell, Umeana, & Wright

2009-10 Budget Process

Timeline

October 08 - Community School Improvement Committee

November 08 Parent Advisory Committees
December 08 Community S.I. Committee Follow-up
January 09 Staff input (prioritized budget requests)
February09 MSBO Conference & Governors Budget
March 09 District department chairs budget meeting
April 09 Board Finance Committee
May 09 Board receives budgetary recommendations
June09 Request to adopt 2009-10 budget
Mitchell, Umeana, & Wright

Michigan Forecast
2009 - 2010

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Retirement Costs
Local Property Values

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

Michigan forecast

Mitchell, Umeana, & Wright

2009-2010 Budget
7 major factors to consider
1.
2.
3.
4.
5.
6.
7.

Student Enrollment
State Foundation Grant
Employer Paid Retirement Costs
Instructional Staff Changes
Support Staff Changes
Program Changes
School of Choice Program
Mitchell, Umeana, & Wright

Enrollment History
District Wide

Mitchell, Umeana, & Wright

Enrollment Analysis
Elementary building

Mitchell, Umeana, & Wright

Enrollment Analysis
Middle School Building

Mitchell, Umeana, & Wright

Enrollment Analysis
High School Building

Mitchell, Umeana, & Wright

Enrollment Analysis
Building by Building

Mitchell, Umeana, & Wright

General Fund Analysis

2008-2009
Total

Revenues
Total Expenditures

$13,555,693
$13,555,693
Net change
-0

General

Fund Balance (07/01/08)

Projected Fund Balance (07/01/09)
20% of Expenditures (Goal)
Mitchell, Umeana, & Wright

$ 2,632,249
$ 2,632,249
$ 2,711,139

General Fund Balance Analysis

(Fiscal Year July 1 June 30)

Mitchell, Umeana, & Wright

General Fund Budget

2-Year Comparison

2008/09
Revenue
Expenditures
Net loss/gain

$13,555,693
13,555,693
$ -0-

Deficit

$12,921,192
13,632,609
$(711,417)

2009/10
Revenue
Expenditures

Mitchell, Umeana, & Wright

General Fund
Revenue Analysis

08/09 Revenue
Loss of 3% enrollment (51.93 students)

Loss of $155 per student (State Foundation)

09/10 Revenue Projection

$13,555,693
(376,555)
(257,946)
$12,921,192

Total expected loss of revenue = $634,501

Mitchell, Umeana, & Wright

General Fund
Expenditure Analysis

08/09 Expenditures

$13,555,693

76,916
09/10 Projected Expenditures $13,632,609

Retirement Contribution increase of 1%

Expected budget shortfall

Decrease in revenue $ 634,501
Increase in expenditures 76,916
$711,417
Mitchell, Umeana, & Wright

Elementary Staffing
Considerations
0809

Ratio

Plan
A

Ratio

Plan
B

Ratio

Plan
C

Ratio

Plan D

Ratio

Pre-K

16.0

<20.0

<20.0

<20.0

<20.0

24.5

<25.0

<25.0

<25.0

<25.0

1st

20.0

19.6

19.6

19.6

19.6

2nd

24.0

25.0

25.0

25.0

25.0

3rd

22.6

24.0

24.0

24.0

24.0

4th

22.7

22.6

22.6

22.6

22.6

5th

24.6

27.2

27.2

27.2

27.2

Music

**

**

**

**

**

Art

**

**

**

**

**

PE

**

**

**

**

**

Computers

**

**

**

**

**

Special Ed.

**

**

**

**

**

Title 1

**

**

**

**

**

Specials

Ratio student-to-teacher (w/ existing student counts)

Plan Awith 0 elementary retirements (4 layoffs 3 elem. & 1 MS)
Plan Bwith 1 elementary retirement (3 layoffs 2 elem. & 1 MS)
Plan Cwith 2 elementary retirements (1 layoff - MS)
Mitchell, Umeana, & Wright
Plan Dwith 3 elementary retirements (1 replacement hire)

Privatization of Custodians
February 08 - Discussion began with
OESPA in regarding possibility of
privatization
March 09 - Analysis of privatization
company proposals reviewed by OESPA &
Board of Education
May 09 Agreement reached with OESPA
to privatize custodial staff
$240,000 savings from not paying
retirement and health insurance costs

Mitchell, Umeana, & Wright

Alternative Education

November 08 Discussion with alternative

education director regarding future of program
December 08 Decision made to abandon current
program and explore other possibilities including
seat-time waivers
Jan. & Feb. 09 Discussion with administrative
team & HS counselors regarding future of program
March 09 New look computer-based credit
recovery, A.P. on-line, & alternative education
combined program formalized
Pending action- Hire 1 person to coordinate and
supervise new program
Mitchell, Umeana, & Wright

2009-2010
Budget Reductions
Total Reductions Necessary
Privatization of Custodians
Alternative Ed. Program
Elementary Librarian to halftime
Elementary Secretary to halftime
Nurse Reduction
French teacher replacement
14,094
District Newsletter changes
Mitchell, Umeana, & Wright

$711,417
-240,000
-129,166
- 24,887
- 23,024
- 14,903
- 8,000
$454,074

Staffing Changes
Budget deficit to overcome = $711,417

Plan A0 retirements
Elem. & 1 MS)

$454,074

Plan B1 retirement

$454,074

1 MS)

Plan C2 retirements
$454,074

$264,217
$718,291

$302,458
$741,532

(4 layoffs - 3
(3 layoffs - 2 Elem. &

$274,161

(1 layoff at MS)

$728,235

Plan D3 retirements
(1 replacement hire at Elem.)
$722,463

Mitchell, Umeana, & Wright

$268,389
$454,074

School of Choice
Student Data

Mitchell, Umeana, & Wright

School of Choice
Marketing program
Build

upon annual trend of increasing

number of school of choice students
Spend up to $7,161 on marketing =(1) FTE
Billboards, newspaper, radio, brochures
Coordinate efforts with Community
Mapping Committee
Mitchell, Umeana, & Wright

THANK YOU!
QUESTIONS?

COMMENTS?

Mitchell, Umeana, & Wright