Budget Adjustments

1
Budget Adjustments
ROCK ISLAND SCHOOL DISTRICT NO. 41

• Fiscal year 2004-05
• Presented February 24, 2003

2
Education Fund Revenue1993-94 through 2004-05
In Thousands
3
Education FundRevenue 1991-92 Through 2008-09
In Millions 25,000 20,000 15,000 10,000 5
,000 0
In Millions
4
Revenue Changes

• Property taxes 780,000
• Higher assessed value of property
• Loss of state aid - 200,000
• Lower average daily attendance
• Increased local property value
• State aid level same as 2002-03
• Implementation of poverty grant calculation

5
Revenue Changes

• Federal/State -800,000
• Categorical aid-End of REA Grant
• Title I-Continued implementation of 2000 Census

6
Expenditures by Object1993-94 through 2004-05
In Millions
7
Expenditures by Object1991-92 through 2008-09
In Millions
8
Expenditure Changes

• The expenditure exhibit shown makes assumptions
  for salaries and fringe benefits.
• All collective bargaining agreements are
  currently being negotiated. The outcomes of
  these negotiations will have an impact (positive
  or negative) into the assumptions presented.

9
Revenue vs. Expenditures1993-95 Through 2008-09
In Millions
10
Fund Balance-Education1995-06 Through 2008-09
In Thousands
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Annual Operating Expense per PupilComparison of
District 41 vs. State Average1994 Through 2002
12
Expenditures by SourceDistrict vs. State
Average2001-02
of Total Expenditures
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Budget Adjustments 04-05Tier I

• Revenue Enhancement
• Raise Textbook Rental Fees 24,000
• Increase by 10
• Currently, 45 K-8, 60 9-10, 57 11-12
• Capital Expenditures
• Cut capital outlay for buildings 350,000
• Leaves 110,000 remaining
• Reduce computer acquisitions 100,000
• 50,000 remains
• Equipment replacement only

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Budget Adjustments 04-05Tier I

• Staff
• Classroom Teachers 1,175,000
• Reduction of 35 FTEs
• Increases class sizes by 2.5
• Administrators 105,000
• 1 FTE Building Admin.
• .5 FTE Cent. Off. Admin.
• Secretaries 84,000
• 3 FTEs

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Budget Adjustments 04-05Tier I

• Staff-Continued
• Para-Professionals 84,000
• 6 positions
• Custodians 56,000
• Reduction of 2 FTEs
• Teacher Pool 52,000
• Reduce to 148,000 to provide for staffing
  fluctuations at beginning of year
• Gifted Teacher 35,000
• Reduce 1 FTE

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Budget Adjustments 04-05Tier I

• Other Reductions
• Textbooks 137,000
• Reduce textbooks from 197,750 to 60,750
• Extra-Curricular Programs 68,000
• Reduce 7-12 programs 10.
• Elementary Instrumental Music 61,500
• Reduce budget 50
• Academic Intervention 52,000
• Reduce to 20,000

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Budget Adjustments 04-05Tier I

• Other Reductions-Continued
• Supplies 50,000
• 10 reduction
• Staff Development 23,500
• Reduce non-certified staff development, by 50
• Reduce Board/Administrative travel 50
• DARE program 20,000
• Eliminates District contribution

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Budget Adjustments 2004-05Tier I

• Other Reductions-Continued
• Instr. Music Supplies/Equip. 17,000
• 50 reduction
• Recruitment 6,000
• Reduce budget to 10,000
• Total Tier I 2,500,000

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Budget Adjustments 04-05Tier II

• Capital Expenditures
• Reduce capital projects 110,000
• There will be no funds spent on capital projects

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Budget Adjustments 04-05Tier II

• Staff
• Classroom Teachers 1,175,000
• Reduction of 35 FTEs
• Increases class sizes by an additional 2.5
  students. Total class size increase is 5.
• Eliminate Elem. PE/Music 524,000
• No specialized instructors for PE/Music
• Will shorten student day
• Building Supervisors 135,000
• Elimination of all Elementary Supervisors.

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Budget Adjustments 04-05Tier II

• Staff-Continued
• Building Administrator 70,000
• Reduce 1 FTE-share buildings.
• Custodians 56,000
• Reduction of 2 FTE
• MTIP Coordinator 25,000
• Reduction of 50
• Technology Department 20,000
• 1 FTE

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Budget Adjustments 04-05Tier II

• Other Reductions
• Close elementary school 210,000
• Instrumental Music 61,000
• Eliminates 6th grade program
• Textbooks 50,000
• 10,000 remains after reduction
• High School Dept. Heads 18,000
• Eliminates stipends
• Board/Admin. Travel 18,000
• Eliminates District funding

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Budget Reductions 04-05Tier II

• Other Reductions-Continued
• Employee Assistance Prgm. 16,000
• Eliminates program
• Recruitment 5,000
• 5,000 remains
• YWCA Day Care 5,000
• Eliminates District contribution to the High
  School day care program for students.

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Budget Reductions 04-05Tier II

• Other Reductions-Continued
• MTIP materials 2,000
• 50 reduction.
• TOTAL TIER II 2,500,000
• TOTAL TIER I II 5,000,000

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State Funding Issues

• Illinois falls short on two counts
• Equity
• Adequacy

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How does RI Compare?

• District 41 operating expenditure per pupil is
  7,378
• State of Illinois operating expenditure per
  pupil
• All Schools 8,181
• Same type 7,772
• Same size 7,993
• Source 2002-03 Illinois School Report Card
  Summary

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What Can Change?

• Presentation made on certain assumptions
  including federal and state revenues and
  collective bargaining outcomes.
• Will receive more definitive revenue numbers
  throughout the Spring.
• Early to Mid-April will learn level of certain
  federal grants.

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What Can Change?

• Early to Mid-June will learn level of state aid
  and state categorical aid.
• Collective bargaining with labor organizations
  will be clearer or completed.
• Economy could move out of recession, increasing
  corporate taxes and interest income.

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What Can Change?

• District may write and receive competitive state
  and federal grants.
• Future years INCREASE AVERAGE DAILY
  ATTTENDANCE!
• CONTINUE TO REDUCE DROPOUT RATE!

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Why Act Now?

• District is under mandate from State law to make
  staffing decisions for 2004-05 no later than 60
  days prior to the end of the current year.
• Current schedule is to have staff decisions to
  Board for action on March 30, 2004.
• District must employ and pay all staff not
  reduced within 60 days of end of current school
  year.

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Board Actions

• March 8-Act on Administration recommendation for
  2004-05 budget preparation.
• March 30-Staff Reductions-2004-05
• Must be at a level to minimally allow the
  District to meet the desired level of funding
  based on current estimates
• Rehire positions as additional revenue sources
  are confirmed

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Board Actions

• May 11-place tentative budget on file
• The tentative budget will include final level of
  budget adjustments necessary to meet desired
  financial outcome for 2004-05
• June 22-Conduct hearing on budget
• June 22-Approve budget for 2004-05

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What Occurs if Funding Improves or Negotiated
Settlements are lower?

• If funding from State and Federal sources
  improves, and/or the outcomes of the collective
  bargaining is less than currently estimated, the
  District will begin reinstating the staff from
  the Tier I cuts.