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Ann Arbor Public SchoolsAnn Arbor Public Schools Budget Update Budget Update
Ann Arbor Public SchoolsAnn Arbor Public Schools Budget Update Budget Update
March 21, 2011March 21, 2011
TonightTonight’’s Agendas Agenda
I. Welcome and Introduction
II. Overview of the 2010-11 AAPS BudgetIII. Presentation of Governor’s Proposed
Funding for K-12 and the Impact on the AAPS Budget for 2011-12
IV. Information on May 3, 2011 SpecialEducation Millage
V. Questions & Discussion
Overview of 2010-11 Overview of 2010-11 AAPS BudgetAAPS Budget
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 projects such as building construction, technology, bus purchases, etc.
• Debt Service – Restricted by law to fund debt service for bonds.
• Sinking Fund – Restricted by state law to fund capital projects including land acquisition and remodeling, and repairing of current facilities by contracted sources.
• Special Revenue Funds – Restricted for specific purposes such as Food Service and Rec & Ed.
Analysis of Operating Budget Analysis of Operating Budget Fiscal Year 10-11Fiscal Year 10-11
• Basic & Added Instructional Needs $102,817,739 56.48
• Adult Education 68,492 .04• Student Support Services 42,372,937 23.27• Executive Administration 1,594,487 0.88• Central Administration 5,764,377 3.17• Operations & Maintenance 18,052,380 9.92• Business Services 2,149,503 1.18• Transportation 6,044,285 3.32• Community Services 663,802 0.36• Outgoing Transfers 2,529,508 1.39
Total $182,057,710100.00%
Expenditures as Percentage of Total Expenditures as Percentage of Total Budget FY 2010-11Budget FY 2010-11
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
DefinitionsDefinitions
Foundation Allowance: A funding formula providing for a per pupil distribution of
State Aid based on the district’s previous combined state and local revenue, the growth in the State’s School Aid Fund and legislative action. Since determined in 1994, growth can only occur by legislative action.
Blended Membership Count: The actual number of pupil membership (converted to
full-time equivalent) for the February and September counts. A 25% to 75% blend respectively of these counts determines the number of pupils eligible for Foundation Allowance Funding.
State
Homestead
Non-Homestead FY 2010/11 Per Pupil Allocation
18.00 mills $3,432 Local Non-Homestead Commercial, Industrial, Rental, and Seasonal Homes (Variable) $4,824 State Contribution (Variable)
$ 0 State Contribution -20J Hold Harmless
$8,256 Foundation Allowance (Base)
$1,234 Hold Harmless (fixed)
Revenue Sources:Sales, Income, Use, Cigarette, Liquor, Excise Taxes, Lottery, etc.
6 mills (fixed)
4. 5344 mills (variable)
Valuation $3.00 Billion
Valuation $4.45 Billion
Building a Foundation AllowanceBuilding a Foundation Allowance
6 mills
(fixed)
$9,490 Foundation Allowance (per-pupil funding)
Funding ReductionFunding Reduction
• 2009/10$233 Per Pupil cut in 20j Funding
• 2010/2011$0 Increase in Foundation Allowance
• 2011/2012$454 Decrease in Foundation Allowance
Funding Allocation Since Proposal AFunding Allocation Since Proposal A
Projected
Impact of GovernorImpact of Governor’’s s Proposal on 2011-2012 Proposal on 2011-2012
AAPS BudgetAAPS Budget
Projected surplus:
2011-12: $631 million
2012-13: almost $1.07 billion
State Revenue Projections forState Revenue Projections forSchool Aid FundSchool Aid Fund
Revenues driven by two major Factors:
Student population (blended count)
State revenues (dependent on state economy)
Revenue ProjectionsRevenue Projections
Stable enrollment
Foundation allowance decrease by $300/pupil
Other local funding to remain flat (i.e., Interest Income, Tower Rentals, Universal Service Fund (USF), Parking Project
Assumptions Used for Revenue Assumptions Used for Revenue ProjectionsProjections
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
Annual expenditure increase of 8% over the next three years for health benefits
Retirement rate will increase from 20.66% to 24.46% for FY 11/12
Retirement rate will increase to 27.37% for FY 12/13 and to 28.87% for FY 13/14
Assumptions Used forAssumptions Used forExpenditure ProjectionsExpenditure Projections
Current2011-12 2012-13 2013-14 2014-15
Blended Count: 16,532 16,532 16,532 16,532
TOTAL REVENUE (in millions) $188.03 $180.05 $177.51 $179.54
EXPENDITURES:
Basic Expenditures $183.07 $186.41 $195.16 $201.78
Salary Differential/vacancy Savings $0.00 0.00 0.00
Step, FICA, Retirement, Fringes $1.72 $1.76 $1.77
Fringe Increase $1.57 $1.69 $1.83
Retirement Rate Adjustment $1.33 $4.09 $3.17 $1.65
Utilities Increase $0.00 $0.00 $0. 00
Skyline High School $0.00 $0.00 $0.00
AAEA negotiations settlement $0.00 $0.00 $0.00
Other Barg. Units (settled contracts) $0.00 $0.00 $0.00
WAY, ECA, IB Programs $1.37 $0.00 $0.00
Sub-Total $191.02 $191.07 $196.14
Budget Reduction Plan $0.00 $0.00 $0.00
TOTAL EXPENDITURES $185.30 $195.13 $201.78 $207.03
Balance/ Deficit $2.64 ($15.11) ($24.27)
($27.49)
Fund Equity - Beginning Balance $16.96 $19.60 $4.49 ($19.78)
Fund Equity - Ending Balance (Est.) @ $19.60 $4.49 ($19.78) ($47.27)
Three-Year Budget ProjectionThree-Year Budget ProjectionPROJECTED
Important Budget IssuesImportant Budget Issues
AAPS cut $18.6 million from the FY 2010/2011 expenditure budget
AAPS is projecting a $15 million deficit for FY 2011/2012
The $15 million deficit assumes passage of the countywide Special Ed. Millage renewal on May 3, 2011
If the millage fails, AAPS stands to lose an additional $6 million
Budgeted Expenditure ReductionBudgeted Expenditure Reduction& Fund Equity Usage& Fund Equity Usage
Budgeted Expenditure ReductionBudgeted Expenditure Reduction2006-20112006-2011
Possible Means to Address/Manage Deficit
Lobby the State for Change in the Way Schools are Funded
• Increase local control over school funding• Changes to the funding of retirement costs
Focus on Increasing Student Enrollment• 100 new students equals $966,700 in additional revenue• Approximately 1,274 K-12 students live in AAPS district
and attend charter schools and other public schools within the county
Where do we go from here?Where do we go from here?
Continue to Focus on Consolidation and Collaboration With:
• Local Universities• WISD• Other area ISD’s• Other local school districts
Private Giving• Seek private funding (donations and grants) for programs• Work of PTO’s, Booster Clubs, Ann Arbor Educational
Foundation…
Continue to Make Reductions
Where do we go from here?Where do we go from here?
Student Intervention & Support Services
In the AAPS, Special Education Services is provided through Student Intervention & Support Services (SISS)
Our Mission Statement:Our mission is to ensure that every special needs student has access to, and progresses in, the general education curriculum. Each student with special needs will be provided appropriate supports, interventions and strategies to afford s/he an opportunity to receive the highest quality education in the least restrictive environment.
Special Education Millage RenewalRenewal of 0.985 mill for seven years for special education will help maintain programs for ALL children in Washtenaw County public schools by reducing support for special education from the general fund.
Who Receives Special Education Services?
On average, 1 in 7 students, or 3 in a classroom of 24, receive some form of special education services.
This year in the AAPS, 2,093 students are receiving special education services (total AAPS students enrolled: 16,569)
The table on the next slide provides a list of the disability categories for our students and the number of students that comprise each category
Who Receives Special Education Services?
Disability # of Students
Specific Learning Disability 602
Emotionally Impaired 124
Cognitive Impaired 67
Severe Multiple Impaired 26
Autism Spectrum Disorder 241
Visually Impaired 11
Hearing Impaired 22
Physical Impairment 25
Early Childhood Developmentally Delayed 96
Otherwise Health Impaired 324
Speech & Language Impaired 548
Traumatic Brain Injury 7
Total 2,093
AAPS Special Education Trends
Moving average trend line
AAPS Special Education Trends
Moving average trend line
Autistic Spectrum Disorder is a type of disorder that has been increasing nationally. We anticipate that this type of need will only increase in the foreseeable future. The costs for ASD students are higher than some other categories.
Special Education Cost Category Costs
Special Education Instruction $15,737,263
Support Services $16,495,268
Indirect Cost & Capital Outlay $3,381,193
Transportation $1,508,051
Services Supported by Federal IDEIA Grant $2,424,438
Total $39,546,213
Special Education Costs FY2010
Special Education Services is comprised of several different cost categories. Last year, the total cost of these services was almost $40M.
WISD Special Ed Funding to AAPS
Ann Arbor $5,767,020
Chelsea $752,360
Dexter $790,300
Lincoln Consolidated $1,464,120
Manchester $281,540
Milan $403,480
Saline $1,349,460
Whitmore Lake $296,100
Willow Run $542,640
9 Public School Academies $189,980
Total $14,000,000
Estimated disbursement to local school districts based on 09/10 reimbursable costs at renewed millage rate of 0.985:
Millage Impact to AAPS
Since this millage is a renewal (of 0.985 mills) and there have been declining property values, the revenues from the renewal will not cover costs:
Vote on May 3
Passe
s
Fails
$(942,000)
$(6,710,000)
Even if the millage passes, the general fund will have to contribute about $1M for special education in AAPS, requiring cuts in other parts of the general fund budget.
If the millage fails, AAPS will have to use an additional $5.8M from its general operating fund for special education, in addition to the $1M noted above, or almost $7M total (as shown).
QUESTIONS?QUESTIONS?
Contact us…Contact us…
Robert Allen - [email protected] Superintendent
Liz Margolis - [email protected] of Communications
Board of Education Office - [email protected] Osinski
Board of Education Trustees - [email protected]