Preliminary Budget Analysis
October 2, 2011Sean B. Fox, Carrie L. McDermott, and Lisa M.
Omeis
Expenditures: 2012-2013
Budget Increase
$4.6 million $1.4 million in salaries
$3.2 million in benefits (pension, health insurance)
Represents a 5.38% (Levy not Rate)
No increase in any other portion of the budget Property tax cap applies to the levy,
not the rate which is governed by assessments and equalization rates.
Revenue Projections: 2012-2013
Revenue Projections: Best Case Scenario
Loss of Federal Jobs Stimulus money $1,566,651
Anticipated 4% increase of State Aid $1,460,653
Resulting in a reduction in State Aid by $105,999
Implications of a Property Tax Cap
60% majority override by voters if the budget exceeds the cap (district has not had a 60% majority in recent memory)
Over the course of four years, the district will not be able to meet its educational or fiduciary obligations as we run through our fund balance and reserves if the cap did not include other cost savings measures
Disconnect among the public’s understanding of a tax cap and its impact on public services
Implications, Exclusions, and Concerns of the Tax Cap
Implications of the Property Tax Cap – 2% Maximum allowable increase under tax cap $1.7 M
Total required for projected expenditures $4.6 M
Total difference (ex: cuts) $2.9 M
Exclusions to the Property Tax Cap? Anything above 2% of pension costs is excluded
Concerns of Tax Cap 50.1% Voter approval for a 2% budget cap
60.1% Voter approval for a budget in excess of 2% cap
2 defeated budget votes is equivalent to a o% budget increase
Visual Ramifications2% Tax cap
budgetDefeated
budget with 0% increase
Rollover budget: $4,565,894Tax cap: -$1,736,195
Total cuts needed: $2,935,698
No increases allowed:
Total cuts needed: $4,565,894
Loss of programs
Full day kindergart
en
Intramurals
Clubs
Athletics
Music & Art
Large class sizes
Loss of Electives
After school
programs
Redesigned
intervention
programs
Budget: 2012-2013
Administration will present a budget with a 4% tax levy increase and a 2% tax levy increase
Decision?
Present a budget at the cap
Present a palatable budget to the community for an override
Approach for identifying areas for reduction
Prioritized list
What does the community value?
Possible survey
Proposed Program Reductions and
Eliminations Printing
Security
Grounds Maintenance
Postage/Printing
Para Professional/Aids
Monitors
Clubs and Intermurals
Census
Orion Program
In-View Test Supplies
Total Proposed Savings: $3.1 million
Athletic Uniforms
5% Reduction in office and instructional supplies
Interscholastic supplies
2% Reduction in Health Insurance
Eliminate ten teaching positions
4th Grade Instrumental
½ Kindergarten
1 Art
1 Physical Education
1 Music Education
1 Library Science
2 Orion Educators
4 Elementary Educators