11

McKinney isdMcKinney isdPROPOSED budgetPROPOSED budget

2009-102009-10

June 22, 2009June 22, 2009

22

2009-10 BUDGET HIGHLIGHTS2009-10 BUDGET HIGHLIGHTS

GENERAL FUNDGENERAL FUND

PROPOSED SALARY & BENEFIT ENHANCEMENTSPROPOSED SALARY & BENEFIT ENHANCEMENTS

DEBT SERVICE FUNDDEBT SERVICE FUND

FOOD SERVICE FUNDFOOD SERVICE FUND

TAX RATE INFORMATIONTAX RATE INFORMATION

33

HB3646 IMPACT SUMMARYHB3646 IMPACT SUMMARY

Adds $120 per WADA to target revenue level ($3.3 million)Adds $120 per WADA to target revenue level ($3.3 million)

Requires greater of $60 per WADA or $800 to be given in Requires greater of $60 per WADA or $800 to be given in across the board pay raises to teachers, librarians, across the board pay raises to teachers, librarians, counselors, nurses, speech pathologists (counselors, nurses, speech pathologists (±$850 for MISD)±$850 for MISD)

Requires local “step” increases on top of state raiseRequires local “step” increases on top of state raise

Total cost of mandated raises – both state & local is ±$2.6 Total cost of mandated raises – both state & local is ±$2.6 millionmillion

Raises contingent on Commissioner of Education Raises contingent on Commissioner of Education determining that mandated raises are an allowable use of determining that mandated raises are an allowable use of federal stimulus funds.federal stimulus funds.

44

GENERAL FUND BUDGET SUMMARY GENERAL FUND BUDGET SUMMARY

REVENUESREVENUES $175,059,967$175,059,967

EXPENDITURESEXPENDITURES 179,100,387179,100,387

PROJECTED EXPENDITURE PROJECTED EXPENDITURE VARIANCE (2%)VARIANCE (2%) (3,582,008)(3,582,008)

PROJECTED ACTUAL PROJECTED ACTUAL EXPENDITURESEXPENDITURES 175,518,379175,518,379

ANTICIPATED ACTUAL DEFICITANTICIPATED ACTUAL DEFICIT ($458,412)($458,412)

55

Source of Source of FundsFunds 2008-092008-09 2009-102009-10 ChangeChange

LocalLocal $97.2$97.2 $95.7$95.7($1.5)($1.5)

StateState 69.2 69.2 79.179.1 9.99.9

OtherOther 0.20.2 0.30.3 0.10.1

TotalTotal $166.6 $166.6 $175.1$175.1 $8.5$8.5

REVENUE COMPARISON (In Millions)

66

EXPENDITURE COMPARISONEXPENDITURE COMPARISON(In Millions)(In Millions)

FUNCTIONFUNCTION 2008-092008-09 2009-102009-10 +/- ($)+/- ($) +/- (%)+/- (%)Instruction & Instructional Instruction & Instructional RelatedRelated $113.0$113.0 $115.6$115.6 $2.6$2.6 2.3 %2.3 %

Instructional & School Instructional & School LeadershipLeadership 13.713.7 14.314.3 0.60.6 4.2 %4.2 %

Pupil SupportPupil Support 20.320.3 21.221.2 0.90.9 4.4 %4.4 %

Administrative SupportAdministrative Support 4.24.2 4.44.4 0.20.2 3.4 %3.4 %

Non-Student Based Non-Student Based SupportSupport 21.521.5 22.022.0 0.50.5 2.6 %2.6 %

Community ServicesCommunity Services 0.20.2 0.20.2 <0.05<0.05 20.3 %20.3 %

Contracted With Other Contracted With Other Governmental AgenciesGovernmental Agencies 1.31.3 1.41.4 0.10.1 12.0 %12.0 %

TOTALTOTAL $174.2$174.2 $179.1$179.1 $4.9$4.9 2.8 %2.8 %

77

GENERAL FUND EXPENDITURES BY GENERAL FUND EXPENDITURES BY FUNCTIONFUNCTION

8%

12%2%

1%

12%

65%

Instruction &Instructional RelatedInstructional &School LeadershipPupil Support

AdministrativeSupportNon-Student Support

All Other

88

EXPENDITURE COMPARISON – BY OBJECTEXPENDITURE COMPARISON – BY OBJECT(In $Millions)(In $Millions)

OBJECTOBJECT 2008-092008-09 2009-102009-10 $ Change$ Change % Change% Change

Payroll CostsPayroll Costs $136.4$136.4 $141.3$141.3 $4.9$4.9 3.7%3.7%

Purchased and Purchased and Contracted Contracted ServicesServices

25.425.4 26.726.7 1.31.3 6.1%6.1%

Supplies/MaterialsSupplies/Materials 9.09.0 7.87.8 (1.2)(1.2) (14.1%)(14.1%)

Other Operating Other Operating ExpensesExpenses 2.92.9 2.92.9 0.00.0 (1.8%)(1.8%)

Capital OutlayCapital Outlay 0.50.5 0.40.4 (0.1)(0.1) (22.1%)(22.1%)

TOTALTOTAL $174.2$174.2 $179.1$179.1 $4.9$4.9 2.8%2.8%

99

GENERAL FUND EXPENDITURES BY OBJECTGENERAL FUND EXPENDITURES BY OBJECT

15%4%

79%

<1%

2%

Payroll Costs

Purchased &Contracted Services

Supplies & Materials

Other OperatingExpenses

Capital Outlay

1010

SUMMARY OF SIGNIFICANT EXPENDITURE BUDGET SUMMARY OF SIGNIFICANT EXPENDITURE BUDGET CHANGES FROM 2008-09 TO 2009-10CHANGES FROM 2008-09 TO 2009-10

($Millions)($Millions)

REVISED 2008-09 BUDGETREVISED 2008-09 BUDGET $174.2 $174.2

INCREASES:INCREASES:

INCREASE IN SALARIES AND BENEFITSINCREASE IN SALARIES AND BENEFITS 3.3 3.3ADDITIONAL STAFFING (NET)ADDITIONAL STAFFING (NET) 0.5 0.5LAWSON E.C.C. OPERATING COSTLAWSON E.C.C. OPERATING COST 0.9 0.9TRS-ON BEHALFTRS-ON BEHALF 0.6 0.6INCREASED TRANSPORTATION COSTINCREASED TRANSPORTATION COST 0.7 0.7

DECREASES:DECREASES:

CAPITAL OUTLAY & SPECIAL REQUESTSCAPITAL OUTLAY & SPECIAL REQUESTS (0.6)(0.6)UTILITIES TRANSFER FROM FOOD SERVICEUTILITIES TRANSFER FROM FOOD SERVICE (0.2)(0.2)OTHER (NET)OTHER (NET) (0.3)(0.3)

BUDGETED EXPENDITURES 2009-10 BUDGETED EXPENDITURES 2009-10 $179.1$179.1

1111

PER PUPIL COMPARISONSPER PUPIL COMPARISONS

2008-092008-09 2009-102009-10

Fall EnrollmentFall Enrollment 23,40123,401 24,04924,049

Revenues-TotalRevenues-Total $166,552,543$166,552,543 $175,059,967$175,059,967

Per PupilPer Pupil $7,117$7,117 $7,279$7,279

Expenditures-TotalExpenditures-Total $174,212,331$174,212,331 $179,100,387$179,100,387

Per PupilPer Pupil $7,445$7,445 $7,447$7,447

1212

FUND BALANCE ESTIMATESFUND BALANCE ESTIMATESGENERAL OPERATING FUND 2009-10GENERAL OPERATING FUND 2009-10

FUND BALANCE FUND BALANCE (In $Millions)(In $Millions)

PROJECTED 6/30/09 FUND BALANCEPROJECTED 6/30/09 FUND BALANCE $49.0 $49.0

PROJECTED FY10 REVENUES PROJECTED FY10 REVENUES 175.1 175.1PROJECTED FY10 EXPENDITURESPROJECTED FY10 EXPENDITURES(Net of Anticipated 2.0% Expenditure Variance) (Net of Anticipated 2.0% Expenditure Variance) (175.5)(175.5)

PROJECTED 6/30/10 FUND BALANCE PROJECTED 6/30/10 FUND BALANCE $48.6$48.6

PROJECTED 6/30/10 FUND BALANCE AS A % OF 2010-11 PROJECTED 6/30/10 FUND BALANCE AS A % OF 2010-11 EXPENDITURES (ASSUMING 3% GROWTH) -------- 26.9%EXPENDITURES (ASSUMING 3% GROWTH) -------- 26.9%

1313

GENERAL FUNDGENERAL FUNDBUDGET SUMMARY OF ACCOMPLISHMENTSBUDGET SUMMARY OF ACCOMPLISHMENTS

Includes staffing and other operating cost for Lawson Early Includes staffing and other operating cost for Lawson Early Childhood Center.Childhood Center.

Provides reasonable pay raises considering economic Provides reasonable pay raises considering economic climate.climate.

Increases health insurance contribution to absorb a portion Increases health insurance contribution to absorb a portion of premium increases.of premium increases.

Retains mid-year and teacher supply reimbursement Retains mid-year and teacher supply reimbursement stipends.stipends.

Holds spending per pupil to $2 increase (0.04%).Holds spending per pupil to $2 increase (0.04%).

Decreases budgeted deficit by $3.6 million.Decreases budgeted deficit by $3.6 million.

Maintains current M & O tax rate of $1.04.Maintains current M & O tax rate of $1.04.

1414

PROPOSED SALARY AND PROPOSED SALARY AND BENEFIT ENHANCEMENTSBENEFIT ENHANCEMENTS

2009-102009-10

1515

SUMMARY OF SALARY/BENEFIT SUMMARY OF SALARY/BENEFIT

ENHANCEMENT RECOMMENDATIONSENHANCEMENT RECOMMENDATIONS Teachers, Nurses, Counselors and Other Instructional Teachers, Nurses, Counselors and Other Instructional Professionals - $900 plus step increase on existing Professionals - $900 plus step increase on existing schedule. Average teacher pay raise is 2.8%schedule. Average teacher pay raise is 2.8%All Other Pay Grades – 2.0% of mid point on applicable All Other Pay Grades – 2.0% of mid point on applicable pay gradepay gradeAll Full Time Employees - $500 mid year stipend to be All Full Time Employees - $500 mid year stipend to be paid in December (Retain)paid in December (Retain)Classroom Teachers - $250 classroom supply stipend Classroom Teachers - $250 classroom supply stipend to be paid in September (Retain)to be paid in September (Retain)Increase District contribution for health insurance by Increase District contribution for health insurance by $10 per month.$10 per month.Raises contingent on favorable ruling on use of federal Raises contingent on favorable ruling on use of federal stimulus funds.stimulus funds.

1616

SUMMARY OF SALARY/BENEFIT ENHANCEMENT RECOMMENDATIONSSUMMARY OF SALARY/BENEFIT ENHANCEMENT RECOMMENDATIONS(Continued)(Continued)

Summary of Proposed Teachers’ Salary ScheduleSummary of Proposed Teachers’ Salary Schedule

Beginning Salary - $44,900Beginning Salary - $44,900Step Increments1-5 - $300Step Increments1-5 - $300

1-5 - $3001-5 - $300 6-10 - $4006-10 - $400 11-15 - $50011-15 - $500 16-20 - $60016-20 - $600 21-30 - $70021-30 - $700

Step 30 Salary - $60,900Step 30 Salary - $60,900Retain $500 mid-year stipendRetain $500 mid-year stipendRetain $250 supply reimbursement stipendRetain $250 supply reimbursement stipend

1717

DEBT SERVICE FUND BUDGETDEBT SERVICE FUND BUDGET

RevenuesRevenues Property TaxesProperty Taxes $44,178,378$44,178,378 Investment RevenueInvestment Revenue 150,000 150,000

Total Revenues Total Revenues $44,328,378$44,328,378

ExpendituresExpenditures Fiscal Year Basis (Budget)Fiscal Year Basis (Budget) $43,751,418$43,751,418 Calendar Year Basis (Tax Rate)Calendar Year Basis (Tax Rate) $44,562,484$44,562,484 Note: The Adopted Budget is on a Fiscal Year basis, but the tax rate is set to Note: The Adopted Budget is on a Fiscal Year basis, but the tax rate is set to

meet Calendar Year requirements. meet Calendar Year requirements.

1818

FOOD SERVICE FUND BUDGETFOOD SERVICE FUND BUDGET

RevenuesRevenues $8,431,219$8,431,219

ExpendituresExpenditures 8,315,7898,315,789

SurplusSurplus $ 115,430$ 115,430

1919

TAX RATE INFORMATIONTAX RATE INFORMATION

FY09FY09

(Actual)(Actual)FY10 FY10

(Proposed)(Proposed) ChangeChange

M & OM & O 1.0401.040 1.0401.040 0.0000.000

I & SI & S 0.4770.477 0.5000.500 0.0230.023

TotalTotal 1.5171.517 1.5401.540 0.0230.023

2020

TAX IMPACT ON AVERAGE RESIDENCETAX IMPACT ON AVERAGE RESIDENCE

FY09FY09 FY10FY10

Average Market ValueAverage Market Value $216,670$216,670 $216,095$216,095

Average Taxable ValueAverage Taxable Value $201,161$201,161 $200,780$200,780

Tax RateTax Rate $1.517$1.517 $1.540$1.540

Taxes DueTaxes Due $3,051.61$3,051.61 $3,092.01$3,092.01

IncreaseIncrease $40.40$40.40

2121

TAX RATE HISTORYTAX RATE HISTORY

0

0.5

1

1.5

2

FY01FY02

FY03FY04

FY05FY06

FY07FY08

FY09FY10

I&S

M&O