Financial Inclusion, Financial Education, and Financial Regulation ...
GPPSS 2012-13 Financial State of the District_FINAL
-
Upload
brendan-walsh -
Category
Documents
-
view
214 -
download
0
Transcript of GPPSS 2012-13 Financial State of the District_FINAL
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
1/18
2012-13 FINANCIAL STATE OF THE DISTRIC T
P R E P A R E D B Y: B R E N D A N W A L S H , T R E A S U R E R , B O A R D O F E D U C AT I O N
N O V E M B E R 2 6 , 2 0 1 2
Grosse Pointe Public School System
Financial Transparency Series
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
2/18
Key General Concepts
Source Data
Michigan Dept. ofEducation, Bulletin
1014
GPPSS BudgetModeling Utility
2008 through 2011agrees to audit. 2012
and on are projections.
Compensation
Direct compensation issalary and any
additional paymentsmade to employees,governed by contract
Indirect compensationis net health care, FICA
and state mandatedretirement (MPSERS)
SchoolFunding
State dictates per pupiloperating revenue
Health care isnegotiated locally, but
state laws affect
Retirement rate(MPSERS) and FICA arenon-negotiable locally.
2
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
3/18
Employee contracts Key Concepts
Theme &Intent
Emphasizes totalcompensation rather thanjust direct compensation
Shares risk and rewardproportionally across all
employees
Ties total compensation toschool funding variables
beyond our control
Triggers &Effect
Agreement with employeesthat a 10% Fund Equity level
is necessary
If Fund Equity drops below10%, compensation is
reduced proportionally.
If Fund Equity exceeds 15%,compensation increases
Implications& Benefit
The districts financial
health is protected by thecontracts not Fund Equity
itself
Allows the district to makeinvestment decisions guided
first by best interests ofstudents, not compensation
or budgets
3
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
4/18
GPPSS and statewide proportional investment by function4
47.4%
55.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Basic Instruction Added Needs
Instruction
Instructional
Support
Business &
Admin.
Operation Maint. Transport.
Statewide Avg. GPPSS
(Source: Michigan Dept. of Education)
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
5/18
5
Per Pupil GPPSS Statewide Rank
2004 2011
2004
(of 744)
2011
(of 788)Enrollment 8,915 8,391 32 29
Operating Revenues
Local $ 3,087 $ 3,362 82 114
State $ 7,524 $ 7,728 23 84
Federal $ 212 $ 557 555 655Total $ 11,028 $ 11,647 42 76
Expenditures*
Basic Instruction $ 5,658 $ 6,507 28 33
Added Needs Instruction $ 1,033 $ 1,453 218 160
Instructional Support $ 1,014 $ 1,371 86 56
Administration $ 1,160 $ 1,294 300 470
Operations & Maintenance $ 1,458 $ 1,125 91 206
Transportation $ 45 $ 76 571 608
Total $ 11,043 $ 12,012 42 62
Revenues less Expenditures ($ 15) ($ 365)
Per Pupil Revenue and Expenses from 2004 to 2011
(Source: Michigan Dept. of Education)
*Not all expenses are listed, but total is complete
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
6/18
6
GPPSS Statewide Rank
2004 2011
2004
(of 744)
2011
(of 788)
Total Operating Revenue per Pupil $ 11,028 $ 11,647 42 76
Instructional Salaries per Pupil $ 6,536 $ 7,448 18 26
Support Services Salaries per Pupil $ 2,645 $ 2,918 90 60
Average Teacher Salary $ 66,799 $ 80,566 7 5Combined Retirement and FICA Rate 20.64% 28.1%
General Education Pupil to Teacher Ratio
Statewide Average 22.0 23.0
GPPSS Average and Statewide Rank 18 20 144 211
GPPSS Rank among same sized districts (47 total) 3 3
Good news, bad news story of salary compensation and
pupil to teacher ratios
In 2010, the 76th ranked teacher salary in Michigan was $67,380(Lakeshore Schools) which is 16% lower than our $80,566 average.
(Source: Michigan Dept. of Education)
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
7/18
Total Revenue and Expenses per Pupil
$10,000
$10,500
$11,000
$11,500
$12,000
$12,500
$13,000
2008 2009 2010 2011 2012 2013 2014 2015
Total Expenditures Per Pupil Total Revenue Per Pupil
7
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
8/18
$107
$96$2.0
($0.1)
($3.2) ($3.1)
($7.6)
($3.9)
$5.0
$6.9
($10.0)
($8.0)
($6.0)
($4.0)
($2.0)
$0.0
$2.0
$4.0
$6.0
$8.0
$80.0
$85.0
$90.0
$95.0
$100.0
$105.0
$110.0
2008 2009 2010 2011 2012 2013 2014 2015
AnnualDeltainM
illions
AnnualRev.,
Exp.
inMillions
Total Revenue Total Expenses Annual Delta
General Fund Annual Revenue and Expenses
8
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
9/18
Projected Total compensation by employment group
as percentage of total General Fund expenditure
65.7% 66.1% 66.8%
4.0% 4.1%4.2%
4.4% 4.6%4.6%
3.1% 3.0%3.1%
5.5% 5.2%5.4%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
2012 2013 2014
Technology
Exec Admin
NISParapros
TA's
Clerical
Plant
Bldg Admin
Teachers
9
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
10/18
Ratio of Employees to Blended Student Enrollment8% workforce reduction from 2008 through 2012
14.2 13.8 14.1 14.3 14.3 14.3 14.3 14.3
24.723.4
24.4
26.2 26.0 26.1 25.826.5
7,800
7,900
8,000
8,100
8,2008,300
8,400
8,500
8,600
8,700
10.012.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
2008 2009 2010 2011 2012 2013 2014 2015
StudentEnrollment
R
atioofEmployee
stoStudents
Student to Teacher Ratio Student to Non-Teacher Ratio Enrollment
10
Includes General and Special Education Teachers
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
11/18
General Fund Equity total value and as %
of General Fund Expenditures
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
2008 2009 2010 2011 2012 2013 2014 2015
Fun
dEquityas%ofExpenditures
FundEquity(in$
000s)
Value % of Expenditures
11
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
12/18
Cost represented on Per Pupil basis by CategorySmall margin of expense over revenue is amplified by student count
$7.4 $7.8 $7.7 $7.2 $7.4 $7.1 $6.5 $6.3
$1.2 $1.2 $1.2 $1.2 $1.2 $1.2$1.1 $1.1
$1.8$1.9 $1.9
$2.0$2.4 $2.3
$2.1 $2.0
$1.7$1.6 $1.7 $1.9
$1.7 $1.6
$1.5 $1.5
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2008 2009 2010 2011 2012 2013 2014 2015
PerPupil($000s)
Direct Comp. Health Care Retirement/FICA All Other Revenue/Pupil
12
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
13/18
Major expenses per pupil as a % of revenue per pupilRetirement cost escalation is clearly our biggest problem
60% 62% 63% 60% 63% 60% 55% 53%
9% 10%10% 10% 10% 10%
9% 9%
15% 15%15% 17%
20% 20%
17% 17%
14% 13%14% 16%
15% 13%
13% 13%
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013 2014 2015
Direct Compensation Health Care MPSERS/FICA Other
13
Retirement costs are a function of state set rate applied to salaries. Salaryreduction is only way to reduce retirement costs.
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
14/18
Average total compensation per employeeand average total compensation per employee % change from 2008
$67.3 $68.0 $68.7 $66.9 $68.4 $66.0 $60.0 $58.9
$16.4 $16.4 $16.9 $18.5$21.7 $21.5
$19.0 $18.7
0%0.9%
2.3% 2.1%
7.3%
4.9%
-5.8%
-7.2%-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
2008 2009 2010 2011 2012 2013 2014 2015
Di
fferencefrom20
08baseline
Avg.
Tota
lCompensationinThousands
Direct Comp. Health Care MPSERS/FICA Change from 2008
14
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
15/18
Change in per pupil revenue vs. change in average total
compensation per employee against 2008 baseline
-2.1%
-3.8%
-4.9% -4.8% -4.8% -4.8%
2.3% 2.1%
7.3%
4.9%
-5.8%
-7.2%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2009 2010 2011 2012 2013 2014 2015
Revenue/Pupil Avg. Total Compensation
15
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
16/18
Potential Employee Compensation Changes in the
Context of our Communities' Changing Economy16
Change in Median
Household Income
(2000 to 2010)
Change in Per Capita
Income
(2000 to 2010)
Grosse Pointe City -15.7% -30.9%
Grosse Pointe Farms -18.2% -16.5%
Grosse Pointe Park -7.8% -17.8%
Grosse Pointe Shores -18.0% -10.5%
Grosse Pointe Woods -16.4% -19.7%
Harper Woods -26.8% -32.1%
Source: U.S. Census Bureau, American Community Survey via Southeast Michigan
Council of Governments (SEMCOG, www.semcog.org)
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
17/18
GPPSS: Striking the right balance
17
Current Path
Salaries scale proportionally torevenue
No change in student to teacherratio
10% projected reduction in direct
compensation over three yearsGrosse Pointe Public Schoolsoperates at a structural surplus
Without
Large class sizes
Reduced programming
Outsourced custodians
Higher student fees
Schools of Choice
-
7/30/2019 GPPSS 2012-13 Financial State of the District_FINAL
18/18
We should still investigate other options
18
GPPSS loss of students is out of alignment with likedistricts, even those not reliant on School of Choice.Enrollment
GPPSS cost per pupil rising dramaticallyhigher/faster than benchmark and state average.
Added NeedsInstructional Costs
GPPSS dramatically out of alignment; salaries,ratios/schedules, programs should be evaluated
Basic InstructionalCosts
Currently this is a $1M annual expense. There hasgot to be a better way.
Staff Development/ Substitute Costs