Cleveland Municipal School District Fiscal Year 2009 Budget Overview.
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Transcript of Cleveland Municipal School District Fiscal Year 2009 Budget Overview.
Cleveland Municipal School DistrictCleveland Municipal School District
Fiscal Year 2009 Budget OverviewFiscal Year 2009 Budget Overview
22
Cleveland Municipal School DistrictCleveland Municipal School DistrictAverage Daily MembershipAverage Daily Membership
20072007 20082008 20092009
CMSD CountCMSD Count 53,20253,202 49,85749,857 46,54846,548
Charter CountCharter Count 11,57311,573 12,69312,693 13,59313,593
The District is projected to lose over 3,000 students per year. Charter school enrollment is projected to increase 900 students per year.
3
Cleveland Municipal School DistrictWhere the Money Comes From
2008-2009
Local Taxes23.2%
State65.1%
Property Tax Allocation6.9%
Other3.3%
Federal 0.9%
Catastrophic Aid0.6%
The proposed general operating revenue forecast for the 2008-2009 school year totals $661,224,776, a decrease of $12.4 million or 1.8% lower then the current year. State sources represent 72.6% of the District’s revenue.
4
149,273,482
25,436,289
141,728,799
11,652,827
-
25,000,000
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
Re
ve
nu
e
2007 - 2008 2008 - 2009
Year
Cleveland Municipal School DistrictLocal Revenue - Tax Collection Estimates
Real Estate Personal Tangible
Tax revenues for 2009 are projected at $153,381,626 a decrease of $21.3 million or 12.2%. This decrease is primarily due to:
-Reduced real property tax collection rate to 86.81% from 88.04%.
-Shift of real property tax collections to Homestead/Rollback revenue due to HB119 – elderly and disabled home owner tax reduction.
-The continued elimination of personal tangible property tax.
5
$10,926,878
$4,478,226
$20,508,697
$12,000,000
$4,478,226
$28,864,342
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Re
ve
nu
e
2007 - 2008 2008 - 2009
Year
Cleveland Municipal School DistrictProperty Tax Allocation - State Hold Harmless Reimbursements
Property Tax Rollbacks SB3 & 287 Reimbursements HB 66 CAT Reimbursements
Property Tax Allocation increase of $9.4 million or 26.3% is due to:
-The shift of Real Property Tax to Homestead/Rollback due to HB119
-Increase of HB66 CAT Tax Reimbursements based on the elimination of Personal Tangible Property Tax.
6
$293,249,518
$66,257,285
$71,065,610
$295,948,549
$66,642,760
$68,070,561
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
Re
ve
nu
e
2007 - 2008 2008 - 2009
Year
Cleveland Municipal School DistrictState Revenue
State Foundation Poverty Based Assistance Transitional Aid Guarantee
Due to declining enrollment, CMSD is a guarantee district. This results in the District receiving the same amount of state funding as it did in 2007 and 2008. Although our overall state funding remains level, the deductions for community schools continues to rise (from $93 million in 2008 to $101.4 million in 2009).
7
2004 2005 2006 2007 2008 2009
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
Rev
enue
Year
Cleveland Municipal School DistrictTax and Hold Harmless vs. State Foundation Revenue
Local Tax and Property Tax Allocation Net State Foundation Gross State Foundation
Tax revenue combined with HB66 hold harmless reimbursements is projected at $198.7 million, a decrease of $11.9 million or 5.65%. Tax revenue is lower due to the collection rate of 86.81% and phase out of tangible personal property tax.
The difference between the gross and net state funding represents flow thru charter school tuition costs. As charter school enrollment increases, the net dollars available to CMSD operations declines.
8
$13,474,849
$4,045,000
$7,750,000
$4,502,754
$13,028,712
$4,045,000
$6,200,000
$6,000,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Re
ve
nu
e
2007 - 2008 2008 - 2009
Year
Cleveland Municipal School DistrictOther Revenue
Other Catastrophic Aid Interest Medicaid
Other Revenue is projected to decrease $498,891 or 1.7%.
9
Cleveland Municipal School DistrictWhere the Money Goes
2008-2009
Charter School Tuition14.3%
Salaries & Benefits69.4%
All Other16.3%
The proposed general operating budget for the 2008-2009 school year totals $711,892,569, an increase of $27.5 million over the current year budget.
10
Employee compensation (salaries and fringe benefits) are projected at $494.3 million, an increase of $14.6 million over the current year budget.
Salary estimates include a provision for a 3% base wage increase consistent with our employee union agreements.
Health insurance estimates reflect a rate increase of 2%.
Wage estimates have been adjusted to include salary schedule step increases.
District retirement costs are projected to increase consistent with the overall increase in salary levels.
Compensation projections reflect a net reduction of 70 positions due to declining enrollment.
$354,836,991
$124,809,159
$366,850,000
$127,440,289
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Exp
end
iture
2007-08 2008-09
Year
Cleveland Municipal School DistrictSalaries & Benefits
Salaries Benefits
11
The allocation for supplies, textbooks and equipment is recommended at $14.6 million, a $307,000 increase over the current year budget.
The appropriation for textbooks is recommended at $5.9 million, a 3% increase over current year allocation.
$14,327,392 $14,633,942
$0
$2,500,000
$5,000,000
$7,500,000
$10,000,000
Exp
en
dit
ure
2007-08 2008-09
Year
Cleveland Municipal School DistrictSupplies, Textbooks & Equipment
12
Purchased Services are projected at $186.2 million, an increase of $12.3 million over current year estimates.
Charter school tuition is projected at $101.4 million, up $8.4 million (9%) from current year projections.
Utility costs are projected to increase by approximately $2 million over current year projections.
Other purchased services are projected to increase $1.3 million. Tuition costs for students who reside in the District and receive services at other educational institutions are projected to increase.
$14,671,325
$7,948,363
$93,019,112
$58,263,040
$16,700,000
$8,560,000
$101,390,832
$59,574,589
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
Exp
en
dit
ure
2007-08 2008-09
Year
Cleveland Municipal School DistrictPurchased Services
Utilities Student Transportation Charter School Tuition Other Purchased Services
13
Other Miscellaneous expenses (fixed charges) are projected at $6.0 million.
This category of expenditures includes County Auditor and Treasurer fees ($3.6 million), fees charged by the County for the collection of delinquent taxes ($1.3 million) and property and casualty insurance ($0.4 million).
$5,840,908 $6,047,559
$0
$2,500,000
$5,000,000
$7,500,000
Exp
end
itu
re
2007-08 2008-09
Year
Cleveland Municipal School DistrictOther Expenditures
14
Total Debt Service expenditures are projected at $1,251,000, a reduction of $18.4 million from current year budget estimates. In 1997, the District issued
Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the
final payment in the 2006-2007 school year.
Total Debt Service expenditures are projected at $1,251,000, a reduction of $18.4 million from current year budget estimates. In 1997, the District issued
Revenue Anticipation Notes (RAN) whereby CMSD restructured all of its outstanding General Fund debt. The RAN had a ten year maturity with the
final payment in the 2006-2007 school year.
$1,251,359 $1,251,358
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
Exp
end
itu
re
2007-08 2008-09
Year
Cleveland Municipal School DistrictDebt Service
Debt Service expenditures are projected at $1,251,000. This category provides for the repayment on the District’s HB 264 Energy Conservation Bonds and loans from the Environmental Protection Agency for use in asbestos removal projects.
15
$9,444,000 $9,444,000
$0
$2,500,000
$5,000,000
$7,500,000
$10,000,000
Exp
en
dit
ure
2007-08 2008-09
Year
Cleveland Municipal School DistrictAdvances and Transfers
The 2008-2009 budget proposal includes $6,000,000 to cover a potential deficit in the Food Service program.
Transfers include a $944,000 sinking fund payment to repay the District’s Qualified Zone Academy Bonds (QZAB) debt.
$2.5 million has been projected to cover year end cash flow advances (June 2009 advances to Special Revenue Funds).
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Cleveland Municipal School DistrictCleveland Municipal School DistrictSummary of Revenues and ExpendituresSummary of Revenues and Expenditures
2007 - 2008 2008 - 2009
Beginning Unencumbered Cash Balance 80,418,495 69,607,113
Total Revenues 673,600,267 661,224,776
Total Expenses 684,411,649 711,892,569
Ending Unencumbered Cash Balance 69,607,113 18,939,320
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Cleveland Municipal School DistrictCleveland Municipal School District
Major Financial Uncertainties for the 2008-2009 School Year Major Financial Uncertainties for the 2008-2009 School Year
CMSD Student EnrollmentCMSD Student Enrollment
2008-2009 Charter School Enrollment2008-2009 Charter School Enrollment
Actual unreserved carry-over balance (June 30, 2008 unreserved balance)Actual unreserved carry-over balance (June 30, 2008 unreserved balance)
Energy CostsEnergy Costs
Approval of the new Medicaid reimbursement plan to reinstate Medicaid reimbursements from the Approval of the new Medicaid reimbursement plan to reinstate Medicaid reimbursements from the Federal GovernmentFederal Government
Tax collection rate and delinquenciesTax collection rate and delinquencies
We have prepared this year’s budget using the best available information, knowledge and judgment We have prepared this year’s budget using the best available information, knowledge and judgment in those areas which are variable. However, there are numerous financial uncertainties that could in those areas which are variable. However, there are numerous financial uncertainties that could have a major impact on the 2008-2009 school year budget.have a major impact on the 2008-2009 school year budget.