Muscogee County School District

1
Muscogee County School District

• FY 10 General Fund Tentative Budget
  Presentation
• June 1, 2009

2
FY 10 Budgetary parameters

• 16 days of fund balance
• 1.5 mills dedicated for Regional Library System
• 1/2 mill for Capital Projects
• Retain millage rate at 23.37 mills (for 19th
  consecutive year)
• Personnel reductions adjusted through attrition
  when possible
• Pass along step increase to qualifying personnel
• Evaluate class size
• Evaluate outsourcing services where feasible
• No new positions

3
Economic News

• Georgia State Revenue is declining FY 09 YTD
  Down 9.5
• December Down 8.9
• January Down 14.3
• February Down 34.8
• March Down 14.5
• April Down 20.6 or 362.1 million
• Source Ga Dept of Revenue
• It is Anticipated revenue will drop another 4
  in FY 10
• Source Georgia State University

4
Economic News

• Projected State Revenue Shortfalls
• Fiscal Year 2009 - 500 Million
• Fiscal Year 2010 - 725 Million
• Fiscal Year 2011 - 823 Million
• Fiscal Year 2012 1.9 Billion
• After the Stabilization funds are applied
• Source Georgia Budget and Policy Institute

5
Economic News

• Georgia educates 2 million students and employs
  125,000 public school teachers
• Georgia will spend almost 8 billion for
  Education in FY 10
• This is less than the original FY 09 budget
• This is less than the FY 08 spending level

6
Economic News

• State Reserves were 1.5 Billion one year ago
• State Reserves today are 565.9 Million
• Source Georgia Budget and Policy Institute
• Under the Presidents proposal, Federal Impact
  Aid funding will be frozen at its current rate
  for FY 10
• FY 2009 (October 2007 count)
• 6,683 Federally connected students
• 311 Federally connected students with
  disabilities

7
Economic News

• The Governor signed HB233 giving a 3 year
  moratorium on property revaluation
• Tax bills will be based on 2008 values plus any
  additions
• New homestead properties values will be based on
  current fair market value
• We are hoping for a 3 growth in the tax digest
  but based the budget on a 1 growth

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Challenges in preparing the FY10 General Fund
Budget

• Budget is based on a 1 growth in the Local
  digest
• Interest earning projected to be ½ the previous
  year
• Changes in the Equalization funding calculation
  reduced funding by 5,350,326
• State funding reduced by 6.5 million

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Challenges in preparing the FY10 General Fund
Budget

• Year 3 Enterprise Resource Planning (ERP)
  implementation
• Year 1 Student Information System (SIS)
  implementation
• Ageing Buildings requiring additional maintenance
  
• School buildings average age is 40.69 years
• Support buildings average age is 57.62 years
• Secondary Ed Textbook adoption

10
FY 10 General Fund Revenue Analysis

• State Funds
• State Funds projected at 176,059,082
• Funding Formula Adjustment is 13,810,727 an
  increase from 7,932,268 in FY 09
• Eighth year of Funding Formula Adjustment
  totaling 50,363,159
• ARRA Stabilization funds of 9,015,644

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MCSD Funding Formula AdjustmentsEight year
analysis
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FY 10 General Fund Revenue Analysis (continued)

• Local Funds
• Digest Growth predicted to be 1
• Digest 90,801,728
• Recording Intangibles 1,000,000
• Other 450,000
• One mill projected to be 3,885,397 after 99,626
  collection fee is assessed per mill
• Other Miscellaneous Revenue 2,675,000
• Federal Funds and Other Sources
• Impact Aid 1,700,000 funding is based on the
  Oct 2008 count
• JROTC 657,235

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FY 10 General Fund Revenue Analysis (continued)
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FY 10 General Fund Revenue Analysis (continued)

• Total projected General Fund Revenue
• 274,218,704
• 1.5 decrease over FY 09 Original budget

15
FY 10 General Fund Expenditures

• Before the revenue was established
• Year 3 ERP 1,730,789
• Year 1 SIS 495,000
• Textbooks 2,275,194
• Property, Liability Workers
• Comp Insurance 1,109,783
• 5,610,766

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FY 10 General Fund Expenditures (continued)

• 3 step increase for qualifying employees on the
  state salary schedule
• Teacher Retirement rate increase
• Employer - 9.28 FY 09 to 9.74 FY 10
• Employee 5 FY 09 to 5.25 FY 10
• Employer State Health insurance rate increase
• July 2008 Jan 2009 18.534
• February 2009 8.579
• March June 2009 3.688
• July 2009 June 2010 18.534

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FY 10 General Fund Personnel Changes

• Elementary Ed Personnel reductions
• Teachers 25 positions
• Para pros 21 positions
• Assistant Principals 2.5 positions
• Middle Ed Personnel reductions
• Teachers 7 positions
• Clerical 2 Positions

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FY 10 General FundPersonnel Changes (continued)

• Secondary Ed Personnel reductions
• Teachers 11 positions
• Clerical 1 Position
• School Improvement Specialist 2 positions
• CTAE, ESOL and Alternative Ed Personnel
  reductions
• Teacher 1 position
• Clerical 1 Position
• CTAE Supervisor .5 position

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FY 10 General Fund Personnel Changes (continued)

• Other Personnel reductions/additions
• DOTS Division - Add Director Project Management
  to be paid from CELT savings
• - Reduce 1 Computer Operator
• Financial Services Division Reclassify Assistant
  Director of Purchasing to Buyer
• Administration Division
• - Reduce Deputy Superintendent
• - Add 1 Internal Auditor
• Student Services Division - Add 2 Educational
  Interpreter positions

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FY 10 General FundPersonnel Changes (continued)

• Other Personnel reductions/additions
• Business Affairs Division
• Add 2 Plumbers
• Add 1 Refrigeration Mechanic
• Add 2 Security Officers
• Reduce .5 Transportation Aide
• Construction Division
• Add .5 Clerical

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FY 10 General Fund Personnel Changes (continued)

• Maintain the position reductions approved October
  2008
• Administration .5 position
• DOA 6 positions
• Student Services 1 position
• DOTS 4 positions
• Plant Services 13 positions
• Transportation 3 positions

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FY 10 General Fund Expenditures (continued)

• Other increases
• Fuel 525,345
• Electricity 450,821
• Water/Sewer/Waste 149,033

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FY 10 General Fund Expenditures (continued)

• Transfers
• Capital Projects ( .5 mill) 1,942,699
• Library (1.5 mills) 5,828,096
• Uses 11,450,253 of fund balance, projected to be
  24,509,406. Remaining 13,059,152 equates to 16
  days of fund balance

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Use of Fund BalanceSeven year analysis
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FY 10 General Fund Expenditures (continued)
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FY 10 General Fund Expenditures (continued)

• Salaries Benefits 84.5
• Textbooks, Teaching and Media supplies 2.4
• Utilities/Fuel 4.2
• Transfers (CVRLS, Capital Projects, Grants) 2.7
• ERP/SIS .8
• Equipment .4
• Total 95.0

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General Fund FY 09 compared to FY 10

• FY 09 Salaries and Benefits are 246,583,817
• 85.4 of the FY 09 budget
• FY 10 Salaries and Benefits are 241,486,400
• 84.5 of the FY 10 budget

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General FundFY 09 compared to FY 10

• FY 09 Original Budget was 288,802,452
• FY 09 - 1 day equals 825,150
• FY 10 Tentative Budget is 285,668,958
• FY 10 1 day equals 816,197

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Good News!

• FY 09 HTRG funds will be released in June 2009
• The budget is balanced with
• 16 days of fund balance
• No millage rate increase is proposed
• No Furloughs are proposed
• No Salary reductions are proposed
• Personnel reductions adjusted through attrition

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Economic NewsMay 28, 2009

• The Governor lowered the FY 09 revenue projection
  by 274 million
• All state agencies are receiving a 25 across the
  board cut in their June allotments
• K-12 will be cut 131 million in its June
  allotment
• The Department of Education is revising the 2009
  midterm allotment sheets

31
Economic NewsMay 28, 2009

• The Governor has approved releasing
  stabilization funds to help ease the cuts
• At this time we do not know how this will affect
  the FY 09 and FY 10 budgets
• Department of Education (DOE) employees are being
  furloughed 5 days Between July 1 Dec 31, 2009
• Additional cuts will be coming for FY 10

32
Economic NewsMay 28, 2009

• We will keep you posted as we have more
  information