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Ann Arbor Public SchoolsAnn Arbor Public Schools Budget Expenditure Budget Expenditure

ProjectionsProjections April 24, 2013April 24, 2013

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Specific Fund UseSpecific Fund Use• General Fund – Used for general operating expenditures of the

school district such as salaries and benefits, utilities, supplies,equipment etc.

• Grant Funds - Restricted by the grantor, i.e Title I, IDEA ,Career & Tech Ed., etc.

• Bond Funds – Restricted by the voters to fund capital projectssuch as building construction, technology, bus purchases, etc.

• Debt Service – Restricted by law to fund debt service forbonds.

• Sinking Fund – Restricted by state law to fund capital projectsincluding land acquisition and remodeling, and repairing ofcurrent facilities by contracted sources.

• Special Revenue Funds – Restricted for specific purposes suchas Food Service and Rec & Ed.

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Analysis of Operating BudgetAnalysis of Operating BudgetFiscal Year 12/13Fiscal Year 12/13

• Basic & AddedInstructional Needs $109,491,892 57.67%

• Student Support Services 43,715,516 23.03• Executive Administration 1,844,241 0.98• Central Administration 5,185,896 2.73• Operations & Maintenance 19,205,807 10.11• Business Services 2,219,508 1.16• Transportation 4,855,542 2.55• Community Services 210,049 0.11• Outgoing Transfers 1,000,000 0.06• Athletics 3,029,829 1.60

Total $189,858,280 100.00%

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Expenditures as Percentage of TotalExpenditures as Percentage of TotalBudget FY 2012/13Budget FY 2012/13

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WhatWhat’’s Included?s Included?

Instruction & Support

• Teachers• Teacher Assistants• Technical Assistants• Coordinators• Building Administration• Building Secretaries

Administration &Support

• Central Administration• Directors/Supervisors• Administrative Support

(Executive Secretaries)• Custodial/Maintenance• Transportation

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Analysis of MPSERSPension Costs Per Pupil

Fiscal YearFoundation Allowance

Student Enrollment

(FTE)

Pension Cost

(MPSERS)Pension Cost Per Student

Foundation Allowance

Less Pension Cost Per Student

1994 7,734 14,933 4,184,744 280 7,4541995 7,574 14,890 10,353,860 695 6,8791996 7,887 15,134 12,610,070 833 7,0541997 8,042 15,328 12,985,942 847 7,1951998 8,196 15,609 10,577,703 678 7,5181999 8,196 16,092 10,605,930 659 7,5372000 8,434 16,354 12,297,183 752 7,6822001 8,734 16,498 12,590,045 763 7,9712002 9,034 16,635 13,119,271 789 8,2452003 9,181 16,669 14,254,739 855 8,3262004 9,160 16,634 14,996,796 902 8,2582005 9,234 16,817 17,449,427 1,038 8,1962006 9,409 16,852 19,653,891 1,166 8,2432007 9,619 16,730 21,528,058 1,287 8,3322008 9,667 16,517 20,512,167 1,242 8,4252009 9,723 16,439 20,373,681 1,239 8,4842010 9,336 16,432 21,957,897 1,336 8,0002011 9,490 16,562 22,360,601 1,350 8,1402012 9,020 16,690 22,800,000 1,366 7,654

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Total Revenue SourcesTotal Revenue SourcesIn MillionsIn Millions

Total Foundation Allowance $145.90Total Other Local Sources 2.84Total Other State Sources 13.53Total Interdistrict and Financing Sources 18.32

Total General Fund Revenue $180.59

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Comparison ofComparison ofTotal Revenue SourcesTotal Revenue Sources

In MillionsIn Millions

2012/13 2013/14Total Foundation Allowance $145.80 $145.90Total Other Local Sources 2.87 2.84Total Other State Sources 15.49 13.53Total Interdistrict and Financing Sources 17.17 18.32

Total General Fund Revenue $181.33 $180.59

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Balancing the 2013/14 BudgetBalancing the 2013/14 BudgetIn MillionsIn Millions

Total Projected General Fund Revenue $180.59Basic Expenditures (as of 2nd Qtr) 189.90Step Increment (Includes FICA & Retirement) 1.86Fringe Increment .90 Total Expenditures $192.66Staff Concessions to Date (3.40)

Total Net Expenditures (after concessions) $189.26

Remaining Budget Reductions Required to Balance FY 2013/14 Budget $ 8.67*

*Any additional increases in the current year budget will reduce projected fund balance.

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Key Components: Incremental Budget Increases

(Step, FICA, Retirement)Fringe Increases

(Health, Life, Dental, etc.)State Retirement RateContract NegotiationsOther

(Legal, Liability Insurance, Utilities, etc)

Expenditure ProjectionsExpenditure Projections

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Annual expenditure increase of 5% over the next three years forhealth benefits

Retirement rate will increase from 24.46% to 24.79% for FY 13/14and to 25.78% for 14/15. (The District now pays 9 different rates. The majorityof our employees are in 24.79% category. A 1% increase was also used to project theFY 15/16 amount.)

Transportation increase of 4% per year for anticipated increases inretirement, health insurance and fuel costs.

In 14/15 an estimated 20 students will be added to the IB program.

Assumptions Used forAssumptions Used forExpenditure ProjectionsExpenditure Projections

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Three-Year Budget Projection (In millions)

ITEM DESCRIPTION 2012/13 2013/14 2014/15 2015/16

Blended Count: 16,269 16,269 16,269 16,269

Revenue $181.30 $180.59 $179.00 $176.83

EXPENDITURES:

Basic Expenditures (Estimated for FY13) $189.90 $189.90 $180.57 $187.18

Step Increment (includes FICA & Retirement) $1.86 $1.88 $1.90

Fringe Increase $0.90 $1.05 $1.10

Retirement Rate Adj. $0.00 $0.28 $0.30

Utilities Increase $0.00 $0.00 $0.00

Transportation $0.00 $0.20 $0.20

Options Program $0.00 $0.20 $0.00

AAEA Negotiations Settlement ($3.00) $3.00 $0.00

Other Barg. Units (settled contracts) ($0.40) $0.00 $0.40

Budget Reduction Plan ($8.69) $0.00 $0.00

TOTAL EXPENDITURES $189.90 $180.57 $187.18 $191.08

Balance/ (Deficit) ($8.60) $0.02 ($8.18) ($14.25)

Fund Equity - Beginning Balance 16.70$ 8.10$ 8.12$ (0.06)$

Fund Equity Appropriation $0.00 $0.00 ($8.18) ($14.25)

Fund Equity - Ending Balance (Est.) 8.10$ 8.12$ (0.06)$ (14.31)$

--------- PROJECTED ---------

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Ann Arbor Public Schools

Proposed BudgetProposed BudgetReduction Plan forReduction Plan for

2013/142013/14

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District Instructional ServicesDistrict Instructional ServicesProposed Budget Reductions

100%500,000Fewer class optionsEliminate 7th HourInstruction

1100%50,000Equity with other schoolsEliminate Theater TechnicianPosition - Pioneer

Instruction

38.5%77,068Increase external fundingReduce Theatre FundingInstruction

314.56%300,000Counselor ratio increasesReduce CounselorsInstruction

31.8%200,000Increase class sizeReduce Fine Arts/PEpositions through attrition

Instruction

10100%1,000,000-Decrease service-Review data results

Eliminate ReadingIntervention Teachers

Instruction

322.90%$3,200,000Increase class sizeReduce Teaching PositionsInstruction

Est.StaffRed.

% ofRed.

PotentialReduction

ImplicationsRecommendationsCategory

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District Instructional ServicesDistrict Instructional ServicesProposed Budget Reductions

52$6,264,068Total Instruction

10.14%466,000Could impact attendanceFamilies/communities wouldbe responsible to providetransportation

Eliminate HS TransportationInstruction

60.35%100,000Freeze purchases for 1 yearReduce Library MaterialPurchases

Instruction

3.27%300,000All high schools on thesame semester schedule

Move Skyline to SemestersInstruction

11.83%$71,000Recruit volunteersIncrease ratio by 5 students

Reduce Noon HourSupervision

Instruction

Est.StaffRed.

% ofRed.

PotentialReduction

ImplicationsRecommendationsCategory

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District Athletics District Athletics 2013/142013/14

100%$31,000Affects 180 district studentsEliminate Middle SchoolBaseball and Softball

Athletics

16%$18,989-Variety of club offerings will bereduced from 28 to 23 clubs-Affects 250 district students

Reduce Middle SchoolClubs by 16%

Athletics

100%$300,000No transportation to any athleticevent

TransportationAthletics Option B

40%$120,000-Less bussing for teams outsideWashtenaw County, parentsresponsible for transportation

TransportationAthletics Option A

50%$30,000Option for outside fundraisingEquipment ReductionAthletics

100%$21,000Increases fees to $225-$400 perplayer

Golf Course RentalsAthletics

50%$36,000Increases fees to $600 per studentIce Hockey RentalsAthletics

Est.StaffRed.

% ofRed.

PotentialReduction

ImplicationsRecommendationsCategory

Proposed Budget Reductions

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District Athletics 2013/14District Athletics 2013/14

23.00%$512,685*Revenue/ReductionsTotal

12.91%$287,685Reductions

10.09%$225,000RevenueTotal

29.3%150,000-SEC average participationfee for 1st sport $147;outside SEC $217-Current pay to participatefee is $150 1st sport, $752nd sport

Increase Pay to Participateone-time fee at the HighSchools to $250 for allsports

Athletics

14.63%75,000-Current pay to participatefee is $50

Increase Pay to Participatefee at the Middle Schools to$150

Athletics

100%$30,696-Affects 90 district students-Eliminates 2 teams frommiddle schools

Eliminate 7th Grade Girls &Boys Basketball

Athletics

Est.StaffRed.

% ofRed.

PotentialReduction

ImplicationsRecommendationsCategory

*Total includes Transportation Option A Only

Proposed Budget Reductions

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District OperationsDistrict OperationsProposed Budget Reductions

17$1,230,000Total Operations

120%80,000Custodial ratio increasesEliminate Crew ChiefOperations

1522.39%600,000Expand every other daycleaning from 2 levels to 3levels district-wide

Restructure CustodialServices

Operations

17.69%50,000Eliminate outsiderecreation trash pick-up

Reduce Grounds PersonnelOperations

5%200,000$2M dollar sinking fundinvestment

Energy SavingsOperations

8%100,000Negotiated lower priceReduce Natural GasPurchases

Operations

100%$200,000No new purchases for 1year

Freeze Furniture/FixturesPurchases

Operations

Est.StaffRed.

% ofRed.

PotentialReduction

ImplicationsRecommendationsCategory

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District WideDistrict WideProposed Budget Reductions

6$682,540Total District Wide

66.8%477,540Downsize & shiftresponsibilities

Reduce Central OfficePositions/Restructure

DistrictWide

100%15,000No longer rent tables forschool activities

Suspend Table RentalsDistrictWide

100%70,000Chemical & energy savingsClose MS PoolsDistrictWide

33.05%50,000Fewer ConferencesReduce Conference/TravelDistrictWide

100%70,000Reduce food for meetingsReduce Food CostsDistrictWide

Est.StaffRed.

% ofRed.

PotentialReduction

ImplicationsRecommendationsCategory

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Total Estimates of Potential BudgetTotal Estimates of Potential BudgetReductions for 2013/14Reductions for 2013/14Proposed Budget Reductions

75$8,689,293Total ProposedReductions

6$682,540District Wide

17$1,230,000Operations

0$512,685Athletics

52$6,264,068Instruction

Estimated StaffReductions

Cost EstimateTotalDivision

• Keeps Roberto Clemente at its current location.• Reduces Noon Hour Supervisors by $71,000.• $19,293 over what is needed in cuts to balance the budget.*If there are any additional shortfalls that occur, the recommendation is that they comeout of Fund Balance.

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5 Year Budget Reduction Summary5 Year Budget Reduction Summary2008/09 - 2012/132008/09 - 2012/13

• Reduced a total of 65 FTE general fund teachers• Assistant Principals were reduced by 1 FTE per each comprehensive high

school (3 FTE)• Principals & Directors were reduced by 5.5 FTE district-wide• Office Professionals were reduced by 8.7 FTE• ASCSA Supervisors/Coordinators were reduced by 4 FTE• Technology Assistants/Specialists were reduced by 2.5 FTE• Crew Chiefs were reduced by 1.8 FTE• Transportation was transferred to WISD in the fall of 2010• Reduced high school bussing to common stops• Eliminated 7th hour bussing• Eliminated after school middle school shuttle (restored but picked up by PTO

Thrift Shop Grant & the Ann Arbor Education Foundation Grant)• Eliminated midday shuttles• Reduced transportation to Ann Arbor Open• Combined bus runs for Bryant and Pattengill

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5 Year Budget Reduction Summary5 Year Budget Reduction Summary2008/09 - 2012/132008/09 - 2012/13

• Custodial took significant reductions in pay and benefits in 2010 andreduced 6 FTE

• Teachers took over $4M reduction in compensation over FY 10/11- 11/12• Outsourced substitute teachers• Reduced district cost to employee health care plans• Moved Rec & Ed Director and OP salaries from general fund to Rec & Ed• Reduced summer school by combining Clemente with other high schools• Reduced the District contribution to band and music camps• Eliminated early notification incentive• Reduced school and department budgets by 17%• Eliminated the Police Liaison positions at the three comprehensive high

schools• Reduced Athletics by $641,000 (22%)

Continued…