Pinconning Area Schools

Regular Board MeetingDecember 14, 2009

7:00 PM

The cuts this year are projected to be from $165 to $292 per student.

For Pinconning Area Schools this is a reduction of nearly $260,000 - $460,000, coupled with a loss of 85 student, equates to approximately $550,000.

These projections leave us a current year deficit of $1,040,000 - $1,230,000.

This deficit uses up all of our fund balance, and leaves us a deficit of $85,000 - $275,000 without mid-year cuts.

The expected cut next year could be an additional $400 to $1,000 reduction per student.

For Pinconning Area Schools this will mean a reduction of $600,000 to $1,500,000 in funding including student reductions.

• Schools are largely funded by sales tax revenue which continues to decline.

• In the last 6 years, per-student funding has increased an average of 1.5% per year while inflation has increased nearly double that amount or 3% per year.

• The State has continued to try to fix the problem with one-time measures including the federal stimulus funds but those measures are now used up.

• Despite the funding problems, legislators and state officials have continued adding more regulations, requirements, and mandates for schools.

• K-12 schools do not have the ability to generate additional revenue on their own through millage or tuition increases. They also do not have the unilateral ability to impact costs such as adjust employee contracts or consolidate school districts.

• Other costs such as the price for heat, electricity, and bus fuel are largely beyond school district control.

• Most schools have been cutting and making changes to operations during the 5 years of this crisis and yet the problems persist. Pinconning Area Schools has cut over $2,500,000 in expenses during this period.

Per Student Funding Levels

$6,300.00

$6,400.00

$6,500.00

$6,600.00

$6,700.00

$6,800.00

$6,900.00

$7,000.00

$7,100.00

$7,200.00

$7,300.00

$7,400.00

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Pupil Foundation Allowance

State Aid Revenue 2005-2010

$0.00

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Total State Aid Revenue

Last Five Years down $ 2,614,624

Average of $ 522,925 per year

Student Population 2004-2009

0

500

1000

1500

2000

2500

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Student Counts

Last Six Years down 367.28

Average of 61.22 per year

Wages as a % of Total Budget

$0.00

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009

Total Expenditures Total Wages & Benefits (86.4%) Instruction Wages & Benefits (60.2%)

These estimates are based on information out of Lansing as of 12/14/09.

With $292 Cut

Fund Balance 6/30/08 $1,223,324.00

08/09 Deficit -$266,795.00

Fund Balance 6/30/09 $956,529.00

Student Loss 78.39 @ 7024.00 -$550,611.00

Funding Cut $ 292 @ 1574.32 -$459,701.00

Structural Deficit -$266,795.00

Revenue / Expense net change $44,880.00

2009/2010 Estimated Deficit -$1,232,227.00

Estimated Fund Balance 6/30/10 -$275,698.00

With $ 225 Cut

Fund Balance 6/30/08 $1,223,324.00

08/09 Deficit -$266,795.00

Fund Balance 6/30/09 $956,529.00

Student Loss 78.39 @ 7091.00 -$555,863.00

Funding Cut $ 225 @ 1574.32 -$354,222.00

Structural Deficit -$266,795.00

Revenue / Expense net change $44,880.00

2009/2010 Estimated Deficit -$1,132,000.00

Estimated Fund Balance 6/30/10 -$175,471.00

With $ 165 Cut

Fund Balance 6/30/08 $1,223,324.00

08/09 Deficit -$266,795.00

Fund Balance 6/30/09 $956,529.00

Student Loss 78.39 @ 7151.00 -$560,567.00

Funding Cut $ 165 @ 1574.32 -$259,763.00

Structural Deficit -$266,795.00

Revenue / Expense net change $44,880.00

2009/2010 Estimated Deficit -$1,042,245.00

Estimated Fund Balance 6/30/10 -$85,716.00

Potential ReductionsPotential Cuts Total 1/2 Yr Savings

HS/MS $59,828.74 $29,914.37HS/MS $63,677.33 $31,838.66HS/MS $62,399.03 $31,199.52

HS/MS Media Specialist $62,801.46 $31,400.73** Add media aide 7 hrs -$25,117.36 -$12,558.68

District Coordinator $23,709.48 $11,854.74GSRP $28,100.00

Social Worker *** $82,431.26 $41,215.63Hall Monitor $6,949.63 $3,474.82

Liason Officer $10,000.00In School Suspension $5,000.00

Board Stipends $2,500.00Bus Pick-Up in City Limits $18,500.00

$232,439.78

Central office $8,000.00

Administrators $6,000.00

Steelworkers $70,000.00

*Portion of employee w ould be charged to at-risk for w ork at Central El., balance of savings from SSW w ould be $ 165 offset

Cuts Already Realized