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Ann Arbor Public Schools: Financial Overview
 

Ann Arbor Public Schools: Financial Overview

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Presentation from Robert Allen, Deputy Superintendent For Operations, Ann Arbor Public Schools, on the financial overview of the school system and its budget

Presentation from Robert Allen, Deputy Superintendent For Operations, Ann Arbor Public Schools, on the financial overview of the school system and its budget

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Ann Arbor Public Schools: Financial Overview Ann Arbor Public Schools: Financial Overview Presentation Transcript

  • Ann Arbor Public Schools Funding and Finances 4/17/07
  • Goals for This Evening
    • How is AAPS Funded
    • How are Funds Spent
    • Where Do We Go From Here
  • Definitions:
    • Foundation Allowance:
    • A funding formula providing for a per pupil distribution of State aid based on the district’s previous combined State and local revenue, the growth in the State’s School Aid Fund and legislative action. Since determined in 1994, growth can only occur by legislative action.
    • Blended Membership Count:
    • The actual number of pupil memberships (converted to full-time equivalent) for the February and September counts. A 25 percent to 75 percent blend respectively of these counts determines the number of pupils eligible for Foundation Allowance Funding.
  • Building a Foundation Allowance State Homestead Non-Homestead FY 2006/07 Per Pupil Allocation 17.97 Mills $3,448 Local Non-Homestead (Commercial, Industrial, Rental, and Seasonal Homes) (Variable) 4,704 State Contribution (Variable) $ 233 State Contribution - 20J Hold Harmless $8,385 Foundation Allowance (Base) 1,234 Hold Harmless (fixed) $9,619 Foundation Allowance (Per-pupil Funding) Revenue Sources: Sales, Income, Use, Cigarette, Liquor, Excise Taxes, Lottery, etc. 6 mills (fixed) 6 mills (fixed) 4.98 mills (variable) Valuation $3.21 Billion Valuation $4.11 Billion
  • Revenue Projection FY 2006/07
    • Funding driven by two major factors :
    • Student population (possible slow growth)
    • State revenue (economic down-turn, uncertainty)
  • Before and After Proposal A Projected 2006-07 Before 1993/94
  • State Budget Shortfall
    • GF/GP shortfall $500 million
    • K-12 shortfall $577 million?
    • TOTAL SHORTFALL $1,077 million?
  • FUNDING ALLOCATION SINCE PROPOSAL A 1.86% $157 Average Increase 2.23% $210 $9,619 06-07 1.90% $175 $9,409 05-06 0.81% $74 $9,234 04-05 -0.23% -$21 $9,160 03-04 1.63% $147 $9,181 02-03 3.43% $300 $9,034 01-02 3.56% $300 $8,734 00-01 2.90% $238 $8,434 99-00 0.00% $0 $8,196 98-99 1.91% $154 $8,196 97-98 1.97% $155 $8,042 96-97 1.98% $153 $7,887 95-96 2.11% $160 $7,734 94-95 $7,574 93-94 % Increase $ Incremental Increase Per Pupil Allocation Fiscal year
  • Per Pupil Allocation vs Inflation
  • Historical Blended FTE Enrollment
  • General Fund Historical Fund Balance 1
  • Expenditures as Percentage of Total Budget FY 2006
  • What’s Included?
    • Instruction & Support
    • Teachers
    • Paraprofessionals
    • Technical Assistants
    • Coordinators
    • Building Administration
    • Building Secretaries
    • Administration & Support
    • Central Administration
    • Directors/Supervisors
    • Administrative Support
    • Custodial/Maintenance
    • Transportation
  • Public Schools of the City of Ann Arbor Current Operations Fund Expenditures Year Ended June 30, 2006 Note: Excludes transfers to other funds
  • Budget Breakdown 2006/07 Salaries & Benefits
  • Teachers Include:
    • Classroom Teachers
    • Media Specialists
    • Counselors
    • Occupational/Physical Therapists
    • Psychologist
    • Social Worker
    • Speech Therapist
    • Teacher Consultants
    • Nurse
    • Elementary
    • Middle School
    • High School
    • Special Ed
    • Vocational Ed
    • English As A Second Language
    • Literacy
    • Adult Ed
    • Preschool
  • Direct Instruction $5,190 $5,494 $4,766 Cost Per Student 7,413 3,692 5,739 Number of Students $38,474,059 $20,282,304 $27,352,233 Operating Cost Elementary School Middle School High School
  • Instructional Support Total Support Services- School Administration Support Services-Instructional staff Vocational Education Compensatory Instruction Special Education & Pupil Support Services $56,208,437 $11,503,418 $8,527,424 $2,489,304 $2,670,875 $31,017,416
  • Administration & Support $3,017,616 Athletics $1,024,041 Legal Costs (Board of Education) Total Support Services- Central Transportation Operations & Maintenance Business Services Executive Administration $36,478,111 $3,832,759 $6,788,307 $18,299,292 $2,197,779 $1,318,317
  • Specific Expenses FY 2006
    • Teaching Supplies and Materials = $1,568,000
    • Equipment and Furniture = $57,000
    • Utilities = $5,315,693
  • Three Year Budget Projection With No Foundation Allowance Increase FY 2008 - 2010 $2.44 $7.41 $15.72 Fund Equity - Ending Balance (Est.) $7.41 $15.72 $23.29 Fund Equity - Beginning Balance ($4.97) ($8.31) ($7.57) Balance / Deficit $187.02 $189.29 $187.32 TOTAL EXPENDITURES REDUCTIONS: Salary Differential Savings Proposals Health Care Savings $187.02 $189.29 $187.32 Basic Expenditures EXPENDITURES: $182.05 $180.98 $179.75 TOTAL REVENUE 16,422 16,497 16,553 Blended Count: 2010 2009 2008 Item Description
  • Estimated Per Pupil Funding Needed to Cover Annual Expenditure Increases $7,381,200 $446 ESTIMATED TOTAL $1,700,000 $103 Health Premiums Go Up 10% $931,200 $56 Mandated Increase in Retirement from 17.74% to 18.56% of Payroll $1,900,000 $115 Cost of Steps $2,850,000 $172 Cost of a 2% raise Total Cost Increase Each Year Per Pupil Increase Needed Each Year Example:
  • What Have We Done to Reduce Costs?
    • Reduce costs by over 8 million dollars over the past two years:
      • Eliminated positions
      • Self-funding of health and dental insurance benefits for some employee groups and capped district contribution to employees for MESSA health insurance at a 5% increase annually
      • Reduced Property and Liability Insurance Costs by over $500,000
  • What We are Doing to Reduce Costs?
    • Continuing to look at ways to reduce health insurance costs
    • Reducing legal expenses
    • Restructuring middle school program
    • Reducing contracted services costs
    • Looking for opportunities to consolidate services county-wide
  • Where Do We Go From Here?
    • Possible Means to Address/Manage Deficit
      • Increase Student Enrollment
        • 100 new students equals $961,900 in additional revenue
        • Approximately 1,274 K-12 students live in AAPS district and attend charter schools and other public schools within the county
      • Lobby the State for Change in the Way Schools are Funded
        • Increased local control over school funding
        • Changes to the funding of retirement costs
  • Where Do We Go From Here?
      • County-wide Enhancement Millage
        • 1 mill equals approximately 4.5 million dollars per year in additional funding for AAPS
        • 1 mill equals approximately $150 per year in additional taxes on a home with a $150,000 taxable value
      • Renew Sinking Fund
        • 1 mill sinking fund expires in 2009
        • Sinking fund generates approximately 6.8 million dollars per year
        • Sinking fund can be renewed without increasing taxes beyond current level
        • Sinking fund dollars can be used to fund repairs and renovations currently funded through general fund dollars
  • Where Do We Go From Here?
      • Private Giving
        • Seek private funding (donations and grants) for programs
        • Work of PTO’s, Booster Clubs, Ann Arbor Educational Foundation…
      • Make Reductions
  • Ann Arbor Public Schools