MISSION STATEMENT

The mission of the Olympia School District is to graduate all students instilled with a hunger for life long learning based on rigorous standards of quality and excellence, achieved through a partnership of school, family, and community.

A TRADITION OF EXCELLENCE IN EDUCATION

OLYMPIA CUSD NO. 16

What Do You See?

Young Girl or An

Old Woman?

DEFICIT VS GAP

• Deficit is the difference between revenue and expenditures in one given year.

• Gap is the anticipated difference between revenue and expenditures including the spending of early tax monies, and spending down working cash fund, FY 04 revenue enhancements and FY 04 cost containments.

CLOSING THE 3,890,000 GAP

Cost Reductions

Revenue Enhancement

Working Cash

Taxes Received for2004-05

1,100,000 935,000

355,0001,500,000

2001-2002 Expenditures By Fund

7%

9%

11% 5%5%2%

66%

Fire and Safety

Bond and Interest

Transportation

Operations and Maintenance

Retirement

Purchased Services

Education Fund

2001-2002 O&M Fund Expenditures

18%

21%

34%

27%

Purchased Services

Capital Outlay

Supplies and Materials

Salaries and Benefits

2001-2002 Education Fund Expenditures

6%

6%

80%

7%1%0%

Other Objects

Capital Outlay

Tuition and Transfers

Supplies and Materials

Purchased Services

Salaries and Benefits

Education Fund Revenue99-02 Audited, 03-06 Projected

11,000,000

11,500,000

12,000,000

12,500,000

13,000,000

13,500,000

14,000,000

14,500,000

99-00 00-01 01-02 02-03 03-04 04-05 05-06

Includes $1Million Transfer from Working Cash

Includes $1.5 Million Transfer from Working Cash

Education FundRevenue Working Fund

Fiscal over(under) Cash Balance EarlyYear Expenses Used 30-Jun Taxes01-02 1,333,262 02-03 (1,788,000) 1,000,000 544,337 1,250,000 03-04 (1,467,000) 1,500,000 577,168 1,250,000 04-05 (1,893,000) 900,000 (449,921) 1,250,000 05-06 (2,310,000) (2,795,524) 1,250,000

Operations & Maintenance FundRevenue Working Fund

Fiscal over(under) Cash Balance EarlyYear Expenses Used 30-Jun Taxes01-02 443,467 02-03 (231,000) 211,947 216,000 03-04 (461,000) 300,000 5,053 216,000 04-05 (421,000) (459,391) 216,000 05-06 (687,000) (1,174,882) 216,000

Revenue transferred to the Operations & Maintenance Fund

Fiscal Year2002-03 138,838 2001-02 189,5322000-01 222,3061999-00 229,6981998-99 194,3231997-98 224,6071996-97 238,2151995-96 246,6451994-95 985,9641993-94 98,2091992-93 103,2921991-92 1,169,461

Total: 4,041,090*

* includes Working Cash and Transportation Funds interest earned and Bond & Interest Fund dollars from retired issues

Education and Working Cash Fund Balances

98 99 00 01 02 03 04 05

Fund Balance Early Taxes

Minus Early Taxes Working Cash Fund Balance

4 mill

3 mill

2 mill

1 mill

0

-1 mill -2 mill -3 mill

Financial Information2002 School Report Card Expenditure

Percentage by Function 2000-01

0.05.0

10.0

15.020.0

25.030.0

35.040.0

45.050.0

Instruction Admin Support Other

DistrictState

Grade 3 Class Size ComparisonDistrict vs State

0

5

10

15

20

25

1994-1995

1995-1996

1996-1997

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

State District

Grade 6 Class Size ComparisonDistrict vs State

0

5

10

15

20

25

1994-1995

1995-1996

1996-1997

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

State District

EDUCATION FUND REVENUES & EXPENDITURES FY '00, '01 & '02 AUDITED and FY '03, '04 & '05 PROJECTED

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

15,000,000

16,000,000

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

Dolla

rs

TOTAL REVENUES TOTAL EXPENDITURES

Includes Working Cash Transfers

Olympia Community Unit School District No. 16Tax Rate

4.7687 4.7308

4.6952

4.6628

4.5142

4.8086

4.6521

4.5724

4.8481

4.7798

4.5812

4.5595

4.5000

4.5500

4.6000

4.6500

4.7000

4.7500

4.8000

4.8500

4.9000

4.9500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

Rat

e pe

r $10

0

Olympia Community Unit School District No. 16Assessed Value

110,000,000

125,000,000

140,000,000

155,000,000

170,000,000

185,000,000

200,000,000

215,000,000

Year

Dol

lars

Total Certified Staff by Year, 1994-2003

176.5

194.33

191.14

190.71

190.49183.24

182.37176.7

165.48161.5

100

125

150

175

200

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

Total Certified Staff

School Year

Student Enrollment Housed in District 1994 - 2003

2,106

2,140

2,176

2,249

2,302

2,3572,374

2,4032,439

2,4722,423

1,900

2,000

2,100

2,200

2,300

2,400

2,500

95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

Enrollment

PROJECTED

Enrollment Trends

If this pattern holds true through 2005-2006, Olympia’s enrollment would have declined

in excess of 366 students in nine years!

(November 02) STATE AID Audited FY '97 - '02

3,623

,056 3,985

,540

5,176

,352

4,769

,134

4,237

,469

4,278

,372

3,70

4,299

3,497

,512

3,263

,753

$3,000,000

$4,000,000

$5,000,000

$6,000,000

96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

September 03 STATE AID Audited FY '97 - '02

3,849

,709

3,864

,509

4,071

,904

3,851

,489

4,278

,372

4,237

,4694,7

69,13

45,176

,352

3,985

,540

3,623

,056

$3,000,000

$4,000,000

$5,000,000

$6,000,000

96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

2003-04 State Aid Increased:Foundation level increased from $4,560 to $4,810Hold Harmless funding- was not eligibleIncreased from $3,851,488 to $4,071,904 = 220,416$

Other State Funding Decreased:

Gifted eliminated – (25,045)

Career Awareness - (10,987)

Staff Development (ADA Block) – (77,732)

Closing the Gap – (52,078)

Reading Improvement – (4,050)

Pre-K – (5,399)

Library Grant – (500)

Ag Supplement – (3,115)

Tech Prep. - (5,300)

Standards Aligned Classroom – (2,000)

Other Categoricals at 90% reimbursement of claim:Special Education Personnel (27,441)

Special Education: Extraordinary, Private, Orphanage (31,598)

Total State Decrease: (245,245)

Other State decreases: ??

Regional Office of Education Services to Districts – State budget cut by 50%

CPPRT funding projected to decrease by approximately $25,000Other Categoricals at 90% reimbursement of claims also applies to Transportation:

Federal:Medicare reimbursement estimated to decrease $40,000 to $50,000

STATE AID FUNDING

• Declining enrollment is occurring in many rural districts throughout the State of Illinois

• Average daily attendance impacts State Aid Funding

• Declining student enrollment results in less

State Aid Funding

FOUNDATION FORMULA on JAN 2003

Foundation Level X Average Daily Attendance (ADA) $4,560 X 2,167 = $9,881,322

Minus Available Local Resources

.03 X $205,680,657 + $278,000 = $6,448,420

Equals Foundation Formula Claim

$9,881,322 - $6,448,420 = $3,432,903

FOUNDATION FORMULA on Aug 2003

Foundation Level X Average Daily Attendance (ADA) $4,810 X 2,169 = $10,432,842

Minus Available Local Resources

.03 X $205,680,657 + $259,387 = $6,429,807

Equals Foundation Formula Claim

$10,432,842 - $6,429,807 = $4,003,035

2001-2002 DATA SCHOOL DISTRICT D

istric

t

SCHOOL TOTAL RATE EDUC

2001EAV Per Pupil

Operating Expense Per Pupil

Chenoa #9 U 5.68709 3.62000 91,279 9,429 Gridley #10 U 5.24262 3.60000 92,022 7,749 Flanagan #4 U 5.58425 3.50000 71,028 8,621 Illini Central #189 U 5.14870 3.50000 73,923 6,964 Heyworth #4 U 5.20747 3.49145 75,702 6,527 Morton #709 U 4.60560 3.44670 111,964 7,355 Delavan #703 U 4.69120 3.42250 89,218 6,754 Lexington #7 U 5.53819 3.40000 93,590 7,625 Hartsburg-Emden #21 U 5.19880 3.36530 105,674 9,293 Prairie Central #8 U 5.55487 3.30000 66,962 7,071 Mt. Pulaski #23 U 4.60400 3.29000 138,377 8,511 Bloomington #87 U 4.40538 3.11673 118,956 7,488 Ridgeview #19 U 4.75609 3.10000 103,723 7,108 Streator Woodland #5 U 5.52759 3.05708 72,737 8,183 Eureka #140 U 4.46430 3.05520 70,339 6,270 Greenview #200 U 4.77650 3.05000 107,402 7,618 Herscher #2 U 4.44500 3.01500 80,335 6,496 Deer Creek-Mackinaw #701 U 4.66990 2.85000 73,256 5,536 Tri Valley #3 U 5.06376 2.84000 85,605 6,947 Tri Point #6-J U 4.66201 2.80000 99,425 6,020 Fieldcrest # 6 U 4.58000 2.97000 99,778 7,107 Tremont #702 U 4.29120 2.72430 72,334 5,530 Athens #213 U 4.42000 2.65810 70,443 5,198 McLean County Unit 5 U 4.35044 2.62000 114,644 7,088 Williamsville #15 U 4.78900 2.60000 67,114 6,416 Blue Ridge #18 U 4.24970 2.50000 102,566 6,775 Mahomet-Seymour #3 U 4.69360 2.45000 59,362 7,056 Olympia #16 U 4.65213 2.39025 89,600 6,955 Warrensburg-Latham #11 U 3.82820 2.33000 79,738 5,131 Rochester #3A U 4.12230 2.25000 70,414 5,374 MidWest Central #191 U 4.56480 2.20000 54,071 6,855 Clinton #15 U 3.25370 1.84000 325,774 8,160

Other Districts Facing Financial Crunch

• PANTAGRAPH 09-11-03

Headline – Task Force to Evaluate Unit 5 Budget

“To balance the budget, at least $5.3 million in cuts or new money must be found .”

- Rebecca Loda - Pantagraph

Why the Gap is Getting Bigger

Expenditures Exceed Revenue Salary and benefits increases Declining student enrollment Unfunded mandates Reduction in state funding Increased energy costsEqualized Assessed Valuation flat lined

Early Taxes in Jeopardy

• PANTAGRAPH 09-11-03

Headline – Single Tax Bill in the Works

“Most counties have a single tax bill, and it’s better to be doing things the same as other counties.”

- Bob Kahman McLean County

Supervisor of Assessments

Depending on Early Taxes

Why not include early taxes on a regular basis?

Borrowing from future revenue to balance the budget is not a good practiceMcLean County doesn’t guarantee that the funding will arrive each JuneMcLean County just announced a plan to change in how taxes are collected

Depending on Early Taxes

• Last 18 days of this Fiscal Year were paid with Next Year’s Tax Money.

How Long Will $1 Million Dollars in the Education Fund

Last?

25 days (spend about $38,926 a day)

2003 Actual Expenses – Ed. Fund

10,00010,25010,50010,75011,00011,25011,50011,75012,00012,25012,50012,75013,00013,25013,50013,75014,00014,25014,500

1998 1999 2000 2001 2002 2003 2003

6.93%

3.05%

4.05%

6.23%

8.00%

5.90%

5.75% is average increase over 5 years 5.15% is average Teachers salary increase over last 5 years

Minus Onetime Transfer

Special Education Revenues and Expenditures

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

02-0301-0200-0199-0098-9997-98

Revenues Expenditures

1.2 Million Dollar Gap

TOTAL REV UNDER EXP = $5,892,492

2002 HAHN WILHELM HUTCHISON NANNENSALARY - 102,513 - 70,938 BONUS - 9,466 - - OTHER(TRS) - 11,075 - 7,016 TOTAL - 123,054 - 77,954

2003 HAHN WILHELM HUTCHISON NANNENSALARY 112,000 111,780 81,919 64,241 BONUS - 21,345 - - OTHER(TRS) 11,077 13,166 8,102 6,354 TOTAL 123,077 146,291 90,021 70,595

2004 HAHN WILHELM HUTCHISON NANNENSALARY 112,000 58,200 84,499 65,526 BONUS - - - - OTHER(TRS) 11,077 - 8,357 6,481 TOTAL 123,077 58,200 92,856 72,007

Why $1,053,000 increase in 2003 expenditures?

• Salary Increases $487, 103

• One Time Tech Transfer $282, 500

• Special Ed Increase $110,000

• Benefits (ERO/Health Ins.) $92,838

$972,441

Increases in line item expenses greater than $2,500 or 25% of the previous year

• $10,119 in Curriculum Salary Absences/Illnesses/Transportation Reimbursement

• $1,159 in Administrative Supplies Inform Public on Finance Issues

• $2,078 in Principals Travel 1 Principal Between Two Schools & Required Administrative Training

• $16,276 in Technology Repair Salary Down 1 FTE Technology in FY ‘03

Increases in line item expenses greater than $2,500 or 25% of the previous year

• $9,005 in OHMS Supplies Postage, Supplies

• $19,659 in OHMS Food Service 5% increase for food and we increased sales

• $28,326 in OHMS Technology MS License, Network Software, Virus Protection

• $17,900 in OHMS Copy Machine Internal transfer to eliminate the need for another Administrative Cost Limitation Hearing

Example of an Actual Solution

• Increase HS Class Size $262,000 Fewer Classes, Fewer Jobs

• Cut Admin, Support, Exp $105,000 Cuts - Food Ser, Tech, O&M, Trans

• Eliminate Block Schedule $90,000 Fewer Classes, Fewer Jobs

• Eliminate Full Day Kind. $93,000 Fewer Classes, Fewer Jobs

• Eliminate 10% of Line Item Growth in Baseline of 04 Budget $110,000

Comes from Salaries, Benefits, Negotiations – All Contractual

• Reverse 10% of Line Item Growth in Expenses Last 2 Years $180,000

Would be a 20% decrease for some items

• $0.33 referendum $660,000

What Do You See? Rabbit or Duck?