Details on why a levy is requested to fund the school for the 2010-2011 school year.

1. Arbon School Levy 2010

2. Public Comments: Please keep comments brief – under 2 minutes. Raise hand and wait to be called on by a member of the school board. Direct your questions to the board. There will be time at the end of the presentation for comments/discussion of a general nature.

3. What’s the Problem? Revenues continue to decrease – State funding has been down for the last three years (since 2007-08). State funding this year was cut again by 7%, with the possibility of another 5.5% cut this mid-year.

4. What’s the Shortfall? Preliminary 2010-2011 budget - -$243,000 Projected revenue - $201,000 Shortfall = $42,000

5. State Funding Realities: In 2006, the main source of revenue for schools changed from property taxes to state funding, when the state sales tax was raised to 6%.

6. Revenue, Expenses, and Cash on Hand

7. Recent Expenses: Replaced furnaces Electrical work Duct work Sprinkler system New pump for the well Asbestos estimate and removal on cottage Cottage demolition Security system

8. Other Expenses: Fuel costs – utilities, bussing, etc. Supplies – student, custodial, etc. Salaries and benefits Tuition to American Falls School District for 7th-12th graders

9. Taming the Budget: Our budget has been reduced by 10.2%

10. Option – Cut One Teacher? State funding with two teachers – our reimbursement from the state is $113, 265 With one teacher, we would get only $73,655 reimbursement from state. An aide would be required, and there would be NO reimbursement from the state, so the aide salary would come straight out of our budget. Teacher salaries have not increased for two years. Our teachers are paid 15% less than teachers in American Falls.

11. Option – Cut Bussing Routes? Safety concerns Lose state funding because transportation costs are reimbursed 50% – 85%. Not in the students’ best interest to reduce bus routes (some students would be on the bus at 5:30 am, and getting home at 5:30 pm) The county road crew coordinates with bus routes – it is easier to keep roads open for busses rather than several cars of parents picking up children, or teenagers driving themselves.

12. Other Options? Other schools have more options where they can cut expenses – custodial staff, teachers, cafeteria staff, and administration staff. Arbon has very few variable expenses. Most of our expenses are fixed, which makes it harder to cut things out.

13. How Our Neighbors Look: Idaho average - $311 per $100,000

14. How Our Neighbors Look: Idaho average - $311 per $100,000 Pocatello - $425 (2008-09)

15. How Our Neighbors Look: Idaho average - $311 per $100,000 Pocatello - $425 (2008-09) American Falls – $550 (with recent levy)

16. How Our Neighbors Look: Idaho average - $311 per $100,000 Pocatello - $425 (2008-09) American Falls – $550 (with recent levy) Rockland - $1186 (without levy added)

17. How Our Neighbors Look: Idaho average - $311 per $100,000 Pocatello - $425 (2008-09) American Falls – $550 (with recent levy) Rockland - $1186 (without levy added) Arbon - $55

18. Arbon Tax Base With Levy Now - $55per $100,00o With levy of $30,000 for 2010-2011 school year – $251 with levy (includes tuition levy) Still significantly lower than American Falls, Pocatello, and Rockland.

19. Why Keep Our School Open: Keeping the school open helps everyone in the valley: Keeps young families in the valley. Maintains low property taxes. Fosters community. Raises property values. School is used as a community building. Loosing our school would cause property taxes to more than double for every family in the valley.