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

1. Ann Arbor Public Schools Funding and Finances 4/17/07

4. 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

6. Before and After Proposal A Projected 2006-07 Before 1993/94

8. 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

9. Per Pupil Allocation vs Inflation

10. Historical Blended FTE Enrollment

11. General Fund Historical Fund Balance 1

12. Expenditures as Percentage of Total Budget FY 2006

14. Public Schools of the City of Ann Arbor Current Operations Fund Expenditures Year Ended June 30, 2006 Note: Excludes transfers to other funds

15. Budget Breakdown 2006/07 Salaries & Benefits

17. 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

18. 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

19. 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

21. 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

22. 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:

28. Ann Arbor Public Schools