Bloomington Public Schools Deficit Reduction Process 200304

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Bloomington Public SchoolsDeficit Reduction
Process 2003-04
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PTO/PTA Presentations

• Goals for this evening
• Define the issue.
• Identify the target.
• Discuss the process to be used in reaching the
  goal.

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Status Report

• District 87 ended the 2002 fiscal year with a
  1.7 million operating deficit in the Education
  Fund
• The Education Fund deficit was 2.5 million on
  June 30, 2003
• The Education Fund deficit will be 1.5 million
  on June 30, 2004
• (Deficit is defined as the difference between
  revenue and expenditures.)

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Trends Assumptions

• Revenues
• Local
• Real Estate Taxes
• Corporate Personal Property Replacement Taxes
• Interest on Investments
• State
• General State Aid
• Categoricals
• Grants

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Trends Assumptions

• Federal
• Title I
• Title II
• IDEA

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Corporate Personal Property Replacement Tax

• Considered local revenue
• Established in 1979
• Replaced personal property tax on businesses
• Tax on the net income of businesses and on
  invested capital of utilities
• Proceeds distributed based on relative share of
  pre-1979 personal property taxes

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Interest on Investments

• Less Funds to Invest
• Lower Interest Rates

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General State Aid

• Local Wealth
• Equalized Assessed Valuation Increased
• Replacement Taxes Statewide Decreased
• Enrollment/ADA
• Average ADA Remained Stable
• State Dollars
• Foundation Amount Increased to 4810
• Poverty Factor Adjusted Using DHS Counts Phased
  in Over 4 Years

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Categoricals

• Special Ed. Personnel 95 Proration
• 8000 Maximum per Teacher
• Same amount since 1976
• Special Ed. Extraordinary 90 Proration
• Based on costs exceeding tuition cost
• Maximum 2000 per student
• New Formula Possible
• Special Ed. Transportation 95 Proration on
  claim
• Regular Transportation 85
• No reimbursement between 1 to 1 ½ miles in
  non-hazardous area
• Provides approximately 45 reimbursement

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Other State Grants

• Transitional Program of Instruction Bilingual
  Education 60 Pro-ration
• Gifted Grant Eliminated - 54,000
• Early Childhood Increased - 15,000
• ADA Block Grant Reduced - 94,500
• Reading Improvement Reduced - 17,000
• Summer Bridges Added - 67,000

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Federal Programs

• Title I - NCLB
• Decrease due to new census 858 vs. 1286
• Title II Quality Teacher 4 Increase
• Title IV Safe Drug Free 5 Decrease
• IDEA Special Education Part B Supplemental
  200,000 Decrease (1 Time Grant)

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Contributing Factors

• Increases in liability insurance
• Increases in Workmans Comp
• Utility costs
• The economy
• Decline of 1.1 million in Corporate Personal
  Property Replacement Taxes over the last two
  years.
• Decline in interest rates from 6.5 in 2000 to 2
  in 2003.
• Decline of 1 million in General State Aid over
  two years.
• Continued economic downturn

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Assumptions

• Our student population will remain stable over
  the next several years.
• Interest rates will remain in the 1.5-2.5 range
  for the next 12-18 months.

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Assumptions

• Corporate Personal Property Replacement Taxes
  will remain flat for the next 12-18 months.
• General State Aid will be prorated (reduced) for
  the next two years.
• Categorical grants will be prorated (reduced) for
  the next two years.

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September 24, 2003 Board Meeting

• Adopt District 87 Budget

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October 8, 2003 Board Meeting

• Formalize the plan

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October 22, 2003 Board Meeting

• Staffing predictions based on enrollment
  projections and class size guidelines
• Set administrative/student/teacher ratios

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November 12, 2003 Board Meeting

• Proposed programmatic changes for
• 2004-05
• Set tentative Levy

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December 10, 2003 Board Meeting

• Tax Levy hearings and adoption

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January 14, 2004 Board Meeting

• Discussion and input

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January 28, 2004 Board Meeting

• Discussion and input

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February 11, 2004 Board Meeting

• Administrative Reports in the Five Year
  Maintenance Plan, Curriculum Summary, Technology
  Summary, Life Safety, Spring Supplies Order and
  Special Projects along with the Bid Matrix will
  be presented.

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February 25, 2004 Board Meeting

• Discussion and input.
• Final recommendations to Board on reductions and
  revenue enhancements.
• Approval of the Five Year Maintenance Plan,
  Curriculum Summary, Technology Summary, Life
  Safety, Spring Supplies Order and Special
  Projects with the Bid Matrix and authorization to
  seek bids and purchase supplies and materials for
  the 04-05 budget in the spring with payments
  after July 1, 2003.

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March 10, 2004 Board Meeting

• Reduction in Force

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April 14, 2004 Board Meeting

• Draft Budget for 2004-05

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