Kimberly CummingsEDFA 60800: Business Management in EducationPurdue University CalumetDr. Mark SperlingFall 2013

BUDGET ANALYSISClark-Pleasant Community School Corporation

BUDGET ANALYSIS 2

ACKNOWLEDGEMENTSSuperintendent Dr. Patrick Spray: Your willingness to share information to help me in this research project is most appreciated.

Director of Business Steven Sonntag: Without everything you provided, I would be lost. You are undoubtedly a very gifted person and there isn’t an English word to thoroughly express my gratitude except, “Thank you!”

Principal Cirsten Lewis: I know I was a pest, but I truly treasure the time you spent with me to clarify and expound upon school finance in Indiana. I also sincerely appreciate your ability to put some difficult concepts about levies, tax caps, and funding into laymen terms for me. Your guidance throughout this course is truly invaluable.

School Treasurer Celeste Winscott: Your insight and the time you took to write the whole process out for me (from teacher request to final submission) are invaluable. I won’t forget it. I feel the anxiety of the biannual audits, which includes the prior and current year. I definitely have a greater appreciation for treasurers.

TABLE OF CONTENTS

BUDGET ANALYSIS 3

The Superintendent’s Budget Overview...................................................................................................... 4

Budget Presentation to School Board ....................................................................................................... 5

Clark-Pleasant Community School Corporation Overview ....................................................................... 6

Current Operating Budget .......................................................................................................................... 10

CPCSC Funds ............................................................................................................................................ 11

Total Operating Budget ........................................................................................................................... 12

Major Budget Issues ................................................................................................................................ 13

Revenue Analysis ........................................................................................................................................ 16

Revenues ................................................................................................................................................. 17

Four Year Summary Receipts and Expenditures ..................................................................................... 22

Assessed Valuations ............................................................................................................................... 23

Expenditure Analysis .................................................................................................................................. 27

General Fund Overview ........................................................................................................................... 28

Instructional Expenses ............................................................................................................................ 29

Support Service Expenditures ................................................................................................................. 30

Food Service ............................................................................................................................................ 31

Debt Funds and Retirement Pension Funds ............................................................................................ 33

Capital Projects Fund .............................................................................................................................. 38

Miscellaneous ......................................................................................................................................... 40

Summary and Conclusion ........................................................................................................................... 43

Reviews ................................................................................................................................................... 44

Conclusion ............................................................................................................................................... 49

References .................................................................................................................................................. 51

BUDGET ANALYSIS 4

THE SUPERINTENDENT’S BUDGETOVERVIEW

SECTION I

CLARK-PLEASANT COMMUNITY SCHOOL CORPORATION

Our superintendent, Dr. Patrick Spray, presented the budget for 2013-2014 to the School Board of Trustees on October 29, 2013, and it was subsequently approved. The School Board presented the budget to the public on November 19, 2013 and was also successively approved.

Dr. Patrick SpraySuperintendentClark-Pleasant Community School Corporation

BUDGET ANALYSIS 5

CLARK-PLEASANT COMMUNITY SCHOOL CORPORATION

The Clark-Pleasant Community School Corporation (CPCSC) is located in Central Indiana in Johnson County, which is approximately 20 miles south of Indianapolis.The school corporation is made up of the towns of Whiteland and New Whiteland, and portions of Greenwood, Franklin, and Needham Townships. The district has commercial, industrial, agricultural and residential areas. The largest taxpayers are the following: Nachi Technology Inc., Pedcor Investments, LLC, Pattillo Industrial Partners LLC, Wal-mart Real Estate Business, Greenwood Industrial Capital, Aldi (Indiana), LP, Retail, and Crossman Properties LLC.CPCSC is governed by a five member Board of School Trustees.The district employs 306 certified personnel and 333 classified personnel.The grade configuration is K-4, 5-6, 7-8 and 9-12.

BUDGET ANALYSIS 6

BUDGET ANALYSIS 7

CPCSC ENROLLMENTGrade 2008-09 2009-10 2010-11 2011-12 2012-13

Kindergarten 398 446 429 427 487

Grade 1 517 451 497 465 489

Grade 2 456 504 450 475 449

Grade 3 487 474 490 478 499

Grade 4 466 501 477 477 478

Grade 5 425 450 499 485 484

Grade 6 417 436 449 501 485

Grade 7 464 435 451 453 492

Grade 8 417 472 425 454 451

Grade 9 395 437 484 419 454

Grade 10 426 390 422 472 408

Grade 11 366 440 386 400 460

Grade 12 364 345 421 385 403

Total Enrollment 5,598 5,781 5,880 5,891 6,039

BUDGET ANALYSIS 8

CPCSC DATA

CPCSC CONTINUES TO BE ONE OF THE FASTEST GROWING SCHOOL CORPORATION

Rank School Corporation Change # Change %

1 Clark-Pleasant Community School Corp 930 22.9%

2 Hamilton Southeastern Schools 2,374 19.3%

3 Avon Community School Corp 960 14.7%

4 Franklin Township Community School Corp 996 14.7%

5 South Madison Community School Corp 399 11.5%

6 Hanover Community School Corp 179 11.5%

7 Noblesville Schools 778 10.9%

8 Zionsville Community Schools 465 10.8%

9 North West Hendricks Schools 161 10.4%

10 East Porter County School Corp 197 10.1%

Source: IN Dept. of Education. Note: Fastest growing corporations in Indiana between SY 04/05 and SY 06/07. Rank based on DOE ADM Total Enrollment of 292 Indiana school districts.

BUDGET ANALYSIS 9

BUDGET ANALYSIS 10

CURRENT OPERATING FUNDSECTION II

BUDGET ANALYSIS 11

CPCSC FUNDS

GENERAL FUNDUsed for controlling most of the operating

expenses: salaries, fringe benefits, supplies, utilities & insurance

DEBT SERVICE FUNDUsed for all payments of debt incurred by the corporation

PENSION DEBT FUNDUsed for payment of pension debt

incurred by the corporation

TRANS. OPERATING FUNDUsed for operating expenses of

transporting children to and from school and school events

TRANS. BUS REPL. FUNDUsed for purchase of school buses.

CAPITAL PROJECTS FUNDUsed for purchase & maintenance

of equipment; construction & repair of buildings, land acquisition; and

fees for professional services

There are 6 separate funds that make up the school corporation budget:

NOTE: The Special Ed Pre-School fund has been eliminated and is now part of the General Fund.

TOTAL OPERATING BUDGET 2012

General Fund $35,562,000Rate: $0.00

Trans. Oper. Fund $2,995,000 Rate: $0.2885

Debt Service Fund $14,887,140 Rate: $1.4854

Capital Projects Fund $3,700,000 Rate: $0.3923

Total Advertised Budget for 2012:$58,555,348

Total Advertised Tax Rate:$2.3609

Trans. Bus Repl. Fund $840,000 Rate: $0.1291

Pension Debt Fund $571,208

Rate: $0.0656

BUDGET ANALYSIS 12

BUDGET ANALYSIS 13

2012 MAJOR BUDGET ISSUESThere are several major budget issues that concern CPCSC’s Business Department. It

is totally astounding, to me, how many diverse accounts there are to reconcile and the magnitude of the responsibility that comes along with being accountable to all stakeholders. It most certainly raises my appreciation for all the business department must do with numbers and accounting!

All Funds:Sonntag shared that Low Assessed Valuation (AV) means higher advertised Tax Rate. The advertised tax rate is $2.3609. Actual rate will be lower if our actual AV is higher.

General FundSonntag also stated that in Indiana, it is extremely difficult to prepare a budget because the student enrollment and the assessed value is not known when the district budget is prepared. Furthermore, most of the General Fund is currently supported by state revenues, which is another reason CPCSC takes care in preparing their budget. CPCSC has taken precautionary measures over the last four years to transfer balances into their “rainy day” fund which is similar to what the state has developed. The state has over $1.2 billion in reserves and CPCSC has $5 million in their rainy day fund.

BUDGET ANALYSIS 14

2012 MAJOR BUDGET ISSUES (CONT.)General Fund (cont.)

CPCSC has been very pragmatic since the Budget Advisory Team (BAT) suggested a $1.6 million reduction in early 2010. CPCSC has increased their focus on instruction, curriculum, special needs and student services.Sonntag shared that CPCSC participated in Susan Brudvig’s Enrollment study, which shows approx. 170 new students in the forecast, however, to err on the positive side, CPCSC used 150 new students to build revenues in General Fund. He also said that there is no official way to be sure until after the official student count date in mid-September.Categorical funding remained the same, which of course does not keep up with inflation.Additional teachers employed in ’11-‘12 due to growth, particularly in Essential Skills.

BUDGET ANALYSIS 15

2012 MAJOR BUDGET ISSUES (CONT.)Debt Service Fund

Sonntag said that CPCSC budgeted an increase in Lease Rental Payments to include full bond payment for the new Middle School project and to continue payment on the Common School Fund loan of $109,000 and the (MS/HS) project. Even though the payments increased, Sonntag said that the interest rate of approximately 1% is saving taxpayers an enormous amount of interest expense.

Pension Debt/Retirement FundCPCSC continues to have a pension Fund solely to pay for Pension Debt.

Capital Projects FundSonntag also shared that the lower CPF budget reflects a decrease in technology personnel and lower equipment budgets for all buildings. He noted that storm water management fees are built into budget for all three years.Indiana will continue to allow Utilities & Property Insurance up to $780,000 be paid from CPF in 2012 instead of General FundNote: the circuit breaker (property tax reductions) means that CPCSC will pay more in addition to utilities & insurance out of General Fund in the future.

Transportation Operating & Bus ReplacementLower budget reflects consolidated bus routes and lower operational costs even though enrollment continues to grow.

BUDGET ANALYSIS 16

REVENUE ANALYSISSECTION III

BUDGET ANALYSIS 17

2012 GENERAL FUND ESTIMATED REVENUES

Local Revenue: Property Tax $ 0 0.0% License Excise 0 0.0% All Other 355,097 1.0%Total Local $ 355,097 1.0%

Total Estimated General FundRevenues for 2012:

$35,562,000

State and Other Revenue: State Grant $34,764,947 97.8% All Other 441,956 1.2%Total State & Other $35,206,903 99.0%

BUDGET ANALYSIS 18

2012 PENSION DEBT FUND ESTIMATED REVENUES

Local Revenue: Property Tax $ 655,654 93.6% License Excise 42,000 6.0% All Other 3,000 0.4%Total Local $ 700,654 100.0%

Total Estimated Pension Debt FundRevenues for 2012:

$700,654

All revenue supporting Pension Debt Fund is locally generated.

BUDGET ANALYSIS 19

2012 CAPITAL PROJECTS FUND ESTIMATED REVENUES

Local Revenue: Property Tax $3,758,079 86.2% License Excise 220,000 5.1% All Other 380,000 8.7%Total Local $4,358,079 100.0%

Total Estimated Capital Projects FundRevenues for 2012:

$4,358,079

All revenue supporting Capital Projects Fund is locally generated.

BUDGET ANALYSIS 20

2012 TRANSPORTATION OPERATING FUND ESTIMATED REVENUES

Local Revenue: Property Tax $2,746,839 88.8% License Excise 180,000 5.8% All Other 165,000 5.4%Total Local $3,091,839 100.0%

Total 2012 Estimated Transportation Operating Fund Revenues:

$3,091,839

State Revenue: State Basic Grant $ 0 0.0%Total State $ 0 0.0%

BUDGET ANALYSIS 21

2012 TRANS. BUS REPLACEMENT FUND ESTIMATED REVENUES

All revenue supporting the Transportation Bus Replacement Fund is locally generated.

Local Revenue: Property Tax $1,267,885 95.5% License Excise 35,000 2.6% All Other 25,000 1.9%Total Local $1,327,885 100%

Total 2012 Estimated Transportation Bus Replacement Fund Revenues:

$1,327,885

BUDGET ANALYSIS 22

FOUR YEAR SUMMARYRECEIPTS AND EXPENDITURES

INDIANA DEPARTMENT OF EDUCATIONOffice of School Finance

CALENDAR FINANCIAL REPORTSummary of Receipts and Expenditures

January 1 to December 31

Funds Total

Cash BalanceJanuary 1 Receipts

ReceiptExceptions

andPlus

Adjustment

Expenditures

ExpenditureExceptions

andMinus

Adjustment

Cash BalanceDecember 31

2012 18,666,202.11 72,075,985.09 3,187,833.39 69,647,432.00 3,187,833.39 21,094,755.20

2011 17,762,869.10 66,907,689.95 6,013,455.53 66,004,356.94 6,013,455.53 18,666,202.11

2010 11,774,053.01 67,409,701.30 6,396,545.16 63,420,885.21 4,396,545.16 17,762,869.10

2009 16,480,081.62 72,072,308.72 8,968,696.20 66,803,653.33 18,934,380.20 11,774,053.01

BUDGET ANALYSIS 23

PAST AND PRESENT AV’STax Assessed Amount of Percent Year Valuation Change Growth 1997 $132,533,040 $6,359,330 5.04%

1998 $138,355,030 $5,821,990 4.39%

1999 $149,726,020 $11,370,990 8.22%

2000 2001

$155,787,080 $172,265,670

($516,797,010)

$6,061,060 $16,478,590

4.05% 10.58%

2002 $555,106,050 $38,309,040 7.41%

2003 $901,203,590 $346,097,540 62.34%

2004 $927,933,680 $26,730,090 2.97%

2005 2006

$993,296,930 $1,059,442,060

$65,363,250 $66,145,130

7.04% 6.67%

2007 $1,161,655,510 $102,213,450 9.65%

2008 $1,216,320,540 $54,665,030 4.72%

2009 $1,057,592,693 $(158,727,847) -13.04%

2010 $1,047,123,358 $(10,469,335) -0.99%

2011 $1,059,137,326 $12,013,968 1.16%

2012 (est.) $1,000,000,000 $(59,137,326) Approx. -5.5%

Comparison of ADVERTISED and APPROVED Tax Rates

CLARK-PLEASANT COMMUNITY SCHOOL CORPORATIONCOMPARISON of ADVERTISED and APPROVED TAX RATES

ADVERTISED2007 2008 2009 2010 2011 2012

Assessed Valuation 1,091,225,321 1,200,000,000 1,100,000,000 1,000,000,000 1,000,000,000 1,000,000,000

TAX RATEGeneral 1.0951 0.8702 0.8810 0.0000 0.0000 0.0000Debt Service 0.9250 0.8466 0.9980 1.2297 1.4090 1.4854Capital Projects 0.4554 0.4686 0.6420 0.7619 0.5240 0.3923Transportation Operating 0.2818 0.2606 0.3626 0.4111 0.3448 0.2885Transportation Bus Replacement 0.0963 0.0769 0.1053 0.1615 0.1153 0.1291SpEd Pre-School 0.0033 0.0033 0.0033 0.0000 0.0000 0.0000Pension Debt 0.0574 0.0594 0.0673 0.0589 0.0674 0.0656

ADVERTISED TOTAL TAX RATE 2.9143 2.5856 3.0595 2.6231 2.4605 2.3609

APPROVED2007 2008 2009 2010 2011

Assessed Valuation 1,161,655,510 1,216,320,540 1,057,592,693 1,047,123,358 1,059,137,326

TAX RATEGeneral 0.6823 0.6453 0.0000 0.0000 0.0000Debt Service 0.8371 0.8352 0.9980 1.1743 1.3303Capital Projects 0.3341 0.3319 0.3415 0.3422 0.3414Transportation Operating 0.2004 0.2086 0.2566 0.2731 0.2746Transportation Bus Replacement 0.0383 0.0302 0.0380 0.0778 0.0461SpEd Pre-School 0.0019 0.0019 0.0000 0.0000 0.0000Pension Debt 0.0450 0.0427 0.0673 0.0562 0.0627

APPROVED TOTAL TAX RATE 2.1391 2.0958 1.7014 1.9236 2.0551

Advertised Rate 2.9143 2.5856 3.0595 2.6231 2.4605Approved Rate 2.1391 2.0958 1.7014 1.9236 2.0551Rate Change -0.7752 -0.4898 -1.3581 -0.6995 -0.4054

BUDGET ANALYSIS 24

ASSESSED NET EVALUATIONS FOR CPCSC (SEPTEMBER 2011 PAY 2012)

TAXING DISTRICT Bank PP AV Net AV Real

Estate

Net AV Other Personal

Property (excl. Business PP)

Net AV Business Personal

Property Only

Minus AV of TIF Other PP, excl Business PP

Minus Captured Net AV for Real

Property

Minus AV of TIF Business

Personal Property Only

Adjusted Net AV

006-NEEDHAM FPD-CKARK TWP 11,450 136,241,079 0 6,181,250 0 0 0 142,422,329

007-WHITELAND FPD-CKARK TWP 0 11,792,617 0 2,852,370 0 0 0 14,645,987

023-PLEASANT TWP-CP SCH-CO LIB 0 10,590,379 0 4,600,350 0 0 0 15,190,729

025-GREENWOOD CITY-CP SCH-PL TWP 1,092,540 396,069,756 0 25,036,460 0 85,540,973 0 335,565,253

027-NEW WHITELAND TOWN 72,350 94,790,491 0 3,446,480 0 0 0 98,236,951

028-WHITELAND TOWN-PLEASANT

TWP163,540 105,705,438 0 5,480,610 0 0 0 111,199,048

029-FRANKLIN CITY-PLEASANT TWP 0 21,315,240 0 311,420 0 0 0 21,626,660

030-GWD CITY-CP SCH-CO LIB 191,810 309,396,068 0 45,860,739 0 110,693,240 0 244,563,567

031-PLEASANT TWP-CP SCH-GWD LIB 0 255,419 0 1,450,500 0 0 0 1,675,919

033-WHITELAND FPD-PLEASANT TWP 0 54,805,358 0 4,441,802 0 0 0 59,247,160

047-GWD CITY-CP SCH-CLARK TWP 0 9,443,625 0 6,710 0 0 0 9,450,335

048-WHITELAND TOWN EAST-PL TWP 0 1,364,130 0 100 0 0 0 1,364,230

050-GWD CITY-CP SCH-GWD LIB-PL-

MTE0 640,000 0 0 0 0 0 640,000

052-GWD CITY-CP SCH-CO LIB-PL-MTE 0 1,152,570 0 0 0 0 0 1,152,570

TOTALS 1,531,890 1,153,557,180 0 99,637,771 0 196,243,213 0 1,056,980,738

BUDGET ANALYSIS 25

BUDGET ANALYSIS 26

SUMMARY OF ASSESSED VALUATION (AV)Sonntag shared that the Johnson County Auditors and the Department of Local Government Finance certified CPCSC’s Assessed Valuation (AV) for 2011 @ $1.059 billion which is more than a 1% increase from last year.CPCSC projected a 5% decrease for 2012 ($1.059 billion to $1.0 billion) due to the decline in the housing market values. He also stated that business department recommended that CPCSC should use a lower AV to protect the tax levy and tax rate due to a potential lower AV. By decreasing the estimated AV to $1 billion, the advertised tax rate increases.

BUDGET ANALYSIS 27

EXPENDITURE ANALYSISSECTION IV

BUDGET ANALYSIS 28

2012 GENERAL FUND EXPENDITURES

Salaries Teachers/Administrators Secretaries/Aides/Subs Custodians/Maintenance

Other Supplies and Materials Instructional Operating

Employee Benefits Insurance FICA Retirement

Purchased Services Utilities Central Nine Special Services

Total Budgeted General FundExpenditures for 2012:

$35,562,000

Salaries $23,425,400 65.8%Empl. Benefits 8,494,525 23.9%Purch. Services 1,628,275 4.6%Supplies/Materials 1,883,800 5.3%Other 130,000 0.4%

INSTRUCTIONAL EXPENSESProgram Total

Personal Services-Salaries

Personal Services-Employee Benefits

Purchased Professional Technical Services

Purchased Property Services

Other Purchased Services

Supplies Other Objects

Elementary 11,656,874 8,127,000 3,287,400 12,500 - 13,500 166,474 50,000

Middle/Jr. High 2,845,879 1,921,000 821,950 3,250 - 6,000 53,679 30,000

High School 5,299,834 3,654,000 1,444,500 4,250 - 11,250 145,834 40,000

Vocational Education 485,000 410,000 75,000 - - - - -

Special Programs 2,158,000 1,837,000 311,000 - - - 10,000 -

Summer School 40,000 33,000 5,500 - - - 1,500 -

Remediation 246,000 221,500 24,500 - - - - -

Payments to Other Gov. Units Within State 1,190,000 - - - - 1,190,000 - -

BUDGET ANALYSIS 29

BUDGET ANALYSIS 30

SUPPORT SERVICE EXPENDITURESProgram Total

Personal Services-Salaries

Personal Services-Employee Benefits

Purchased Professional Technical Services

Purchased Property Services

Other Purchased Services

Supplies Other Objects

Students 1,464,963 1,072,000 375,300 - - 997 16,666 -

Instruction 817,450 584,000 173,000 - - 2,903 56,647 -

General Administration 557,000 320,000 141,000 41,000 - 25,000 20,000 10,000

School Administration 2,958,000 2,199,000 755,375 - - 3,625 - -

Central Services 702,000 520,000 175,000 - - 5,000 2,000 -

Operation and Maintenance of Plant Services

4,649,000 2,110,000 819,000 - 163,000 146,000 1,411,000 -

Operation of Noninstructional Services

492,000 416,900 75,100 - - - - -

TOTALSINSTRUCTIONALAND SUPPORT

35,562,000 23,425,400 8,494,525 61,000 163,000 1,404,275 1,883,800 130,000

BUDGET ANALYSIS 31

FOOD SERVICE FUNDLOCAL SOURCES AMOUNTSchool Lunch Program (reimbursable) 874,871.97

School Breakfast Program (reimbursable) 61,749.45

Adult Sales (non-reimbursable) 54,876.77

Ala Cart (non-reimbursable) 287,330.17

Special Functions 18,708.61

Daily Sales-Summer Food Program 1,250.75

TOTAL 1,298,787.72

STATE SOURCES AMOUNTState Matching Fund-School Lunch 31,369.62

TOTAL 31,369.62

FEDERAL SOURCES AMOUNTSchool Lunch Reimbursement 1,159,739.94

Summer Food Service Program 16,587.61

TOTAL 1,176,327.55

OTHER ITEMS AMOUNTReturn of Petty Cash 160.00

Other 13,188.99

TOTAL 13,348.99

SUPPORT SERVICES AMOUNTRefund of Revenue 600.87

Other Personnel Services 850.01

Insurance 55,000.00

TOTAL 56,450.88

COMMUNITY SERVICES AMOUNTService Area Direction-Operations 258,268.30

Food Preparation and Dispensing 983,720,.82

Food Purchases 1,065,998.70

Distribution of School Lunch Reimbursement 5,286.10

Other Food Services 201,039.11

TOTAL 2,514,313.03

GRAND TOTAL $2,570,763.91

BUDGET ANALYSIS 32

2012 GENERAL FUND EXPENDITURESYet again, Direct of Business Steven Sonntag was very generous with his explanations to how the department built the General Fund Expenditures.

He said, “First and foremost, our Instructional Programs and Special Ed Programs were the only major programs to increase over last year. That emphasizes our districts efforts to keep budget cuts away from the classroom.He also said that CPCSC has been very prudent in their decisions since the Budget Advisory Team (BAT) recommended a $1.6 million reduction in early 2010. He specifically noted that CPCSC has increased its focus on instruction, curriculum, special needs and student services.Categorical funding stayed the same despite inflation.In 2011-12, CPCSC hired additional teachers due to growth, especially in Essential Skills.

BUDGET ANALYSIS 33

2012 PENSION DEBT FUND BUDGETED EXPENDITURES

Total Budgeted Pension Debt Fund Expenditures for 2012:

$571,208

Bond Principal $325,000 56.9%Bond Interest $246,208 43.1%

Bond Principal

Bond Interest

Pension Debt/Retirement Fund is used solely to pay for the teacher retirement plan, which is an obligation that is not funded. This fund is also a tax neutral fund meaning another fund will have to be reduced by this amount.

BUDGET ANALYSIS 34

2012 DEBT OBLIGATIONSLOCAL SOURCES AMOUNT

Property Taxes ( Ad Valorem Taxes) 11,652,448.89License Excise Tax 1,385,576.64Commercial Vehicle Excise Tax 61,567.64Property Tax Replacement 630,960.50TOTAL 13,730,553.97

DEBT SERVICES AMOUNTTemporary Loans-Interest 21,716.41Buildings-Principal 8,950,209.00Buildings-Interest 5,427,822.70Common Sch Fund Loan-Principal

21,866.00

Common Sch Fund Loan-Interest

710.65

TOTAL 14,422,324.76

NON-PROGRAMMED CHARGES

AMOUNT

Transfers From One Fund to Another

55,779.58

TOTAL 55,779.58

GRAND TOTALS RECEIPTS $13,730,553.97EXPENDITURES 14,422,324.76EXCEPTIONS 55,779.58

BUDGET ANALYSIS 35

2012 RETIREMENT/SEVERANCE BOND FUND DEBT SVC

LOCAL SOURCES AMOUNTProperty Taxes ( Ad Valorem Taxes) 550,119.51License Excise Tax 65,413.96Commercial Vehicle Excise Tax 2,906.67TOTAL 618,440.14

FINANCING SOURCES AMOUNTTemporary Loans Principal 185,000.00TOTAL 185,000.00

DEBT SERVICES AMOUNTBonds-Principal 325,000.00Temporary Loans-Principal 185,000.00Bonds-Interest 244,707.50TOTAL 754,707.50

GRAND TOTALS RECEIPTS $618,440.14EXPENDITURES 569,707.50EXCEPTIONS 185,000.00

NOTE: The fringe benefits of health, vision, dental, and life that I could find were my own insurance plan, which I don’t think is applicable to this research project.

2012 CAPITAL PROJECTS FUND BUDGETED EXPENDITURES

Maintenance

Equip.

Building Rental

Emergency

Total Budgeted Capital Projects Fund Expenditures for 2012:

$3,700,000

Land Acq. & Dev. $ 50,000 1.3%Professional Serv. 143,000 3.9%Educational Spec. 5,000 0.1%Building Improve. 400,000 10.8%Building Rental 100,000 2.7%Equipment 158,000 4.3%Emergency 202,000 5.5%Maint. of Equip. 962,000 26.0%Util., & Insur. 800,000 21.6%Technology 880,000 23.8%

BuildingImprovement

Land Acq. & Dev.

Professional Services

Util. & Insur.

Technology

BUDGET ANALYSIS 36

BUDGET ANALYSIS 37

2012 CAPITAL PROJECTS FUND BUDGETED EXPENDITURES

The CPF expenditures in the previous slide support the first year of CPCSC’s three year plan.The lower CPF budget signifies a reduction in technology personnel. As Sonntag said, “(It’s) having to do more with less.” The lower equipment budgets for all buildings involved teachers having to give up their individual printers for shared printing stations. Indiana will allow a maximum of $780,000 Utilities & Property Insurance to be paid from CPF in 2012 instead of using the General Fund. Sonntag said that due to a circuit breaker, property tax reductions, CPCSC will pay more utilities and insurance out of the General Fund in the future.The circuit breaker reductions will have the most affect on the CPF and Transportation budgets.

BUDGET ANALYSIS 38

2012 TRANSPORTATION OPERATING FUND BUDGETED EXPENDITURES

Salaries

Supplies & EquipmentBenefits

Purchased Services

Total 2012 Budgeted TransportationOperating Fund Expenditures:

$2,995,000

Salaries $1,623,000 54.2%Benefits 567,000 18.9%Purchased Services 100,000 3.4%Supplies & Equip. 705,000 23.5%

The lower budget reflects consolidated bus routes and lower operational costs even though enrollment continues to grow.

BUDGET ANALYSIS 39

2012 TRANS. BUS REPLACEMENT FUND BUDGETED EXPENDITURES

Bus Replacement Total 2012 Budgeted Transportation

Bus Replacement Fund Expenditures: $840,000

Purchases of Buses 840,000 100%

Again, CPCSC has a 12 year bus purchase plan. The expenditures in Bus Replacement Fund budget shown support only the first year. CPCSC will continue to purchase 84 passenger buses as well as special education type buses.

BUDGET ANALYSIS 40

TOTAL ADVERTISED TAX RATE ANALYSIS

General Fund $35,562,000Rate: $0.00

Trans. Oper. Fund $2,995,000 Rate: $0.2885

Debt Service Fund $14,887,140 Rate: $1.4854

Capital Projects Fund $3,700,000 Rate: $0.3923

Total Advertised Budget for 2012: $58,555,348 Total Advertised Tax Rate: $2.3609

Trans. Bus Repl. Fund $840,000 Rate: $0.1291

Pension Debt Fund $571,208

Rate: $0.0656

BUDGET ANALYSIS 41

REVENUES REPEALED OR EXPENSES ADDED IN LAST FEW YEARS

REVENUE ITEMS:$1,546,123 Reduction in 2010 State Funding Formula {4.54% cut}.$2,678,457 Estimated Circuit Breaker Reduction in Funding due to Property Tax Caps.Eliminated New Facility Appeal {$1,050,000}.Debt Service State ADA Flat Grant Eliminated {$200,000}.Transportation State Support Eliminated {$80,000}.State Funding of New Students @ 75% (not 100%) during 2006-08.State Funding of Summer School {50%}– not sufficientState Elimination of Business Inventory Tax {4% of AV}State Decrease in PTRC and HC funding.

EXPENDITURE ITEMS:Transfer of Utilities & Insurance Costs from General to CPF {$779,000}.

BUDGET ANALYSIS 42

TOTAL ADVERTISED TAX RATE ANALYSIS

Sonntag said that the total advertised tax rate of $2.36 supports CPCSC’s total advertised $58 million budget. A low Assessed Valuation means higher advertised Tax Rate. The advertised tax rate was $2.3609. He said the actual rate will be lower if our actual AV is higher. We have advertised our tax rates at a higher rate than the anticipated final DLGF tax rates. At the time I received CPCSC’s budget , they still did not have (which is normal) the certified AV mentioned earlier or the official ADM for the budget. Sonntag said that without these two main items, it is extremely hard to predict tax rates. He explained that you can reduce your tax rate or levy, but you can’t increase your tax rate or levy over and above what you advertise. So to protect the budget, especially in a growing district, it is essential to advertise higher than expected.Therefore, the advertised tax rate was $0.10 cents lower than last years advertised rate.

BUDGET ANALYSIS 43

SUMMARY AND CONCLUSIONSECTION V

BUDGET ANALYSIS 44

RESEARCHThroughout this research project, I was able to find almost all aspects with the exception of detailed athletic expenditures and the corporations contribution to health insurance.A major concern with CPCSC is the how to provide educational services due to the exceptional growth incurred. This can be shown on the following slides provided by Sonntag.

BUDGET ANALYSIS 45

REVIEWThe number of students grew 88% over the last ten years.

2,905 in 97/983,870 in 02/035,472 in 07/08}

Source: CPCSC Demographic Enrollment Studies

1997-98 2002-03 2007-080

1000

2000

3000

4000

5000

6000ADM

BUDGET ANALYSIS 46

REVIEW

The number of students with special needs grew 160% over the last ten years.

302 in 97/98502 in 02/03784 in 07/08}

Source: IN DOE for CPCSC: Population Characteristics

1997-98 2002-03 2007-080

1000

2000

3000

4000

5000

6000

SPECIAL EDUCATION

BUDGET ANALYSIS 47

REVIEWTotal number of employees grew 89% over the last ten years

330 in 97/98393 in 02/03623 in 07/08

Compare student growth at 88% to total number of employee growth at 89%Source: IN DOE for CPCSC: Population Characteristics and DOE – NE report

1997-98 2002-03 2007-080

1000

2000

3000

4000

5000

6000EMPLOYEES

BUDGET ANALYSIS 48

REVIEWTotal number of Instructional Employees (Teachers and Instructional Aides) grew 88% over the last ten years.

199 in 97/98227 in 02/03374 in 07/08

Source: IN DOE for CPCSC: FTE Teachers and DOE – NE report

1997-98 2002-03 2007-080

1000

2000

3000

4000

5000

6000

INSTRUCTIONAL STAFF

BUDGET ANALYSIS 49

CONCLUSIONClark-Pleasant Community School Corporation’s Business Department is to be commended for doing such an awesome job of keeping our district financially secure. Throughout my research, I have found that the accounting practices and numbers are astronomical and at times appeared to swarm before my eyes. It can be absolutely overwhelming!

I would like to thank Superintendent Dr. Patrick Spray for allowing me access to some records in addition to the ones that are required by the state of Indiana to be public notifications.

My heartfelt gratitude goes to the Director of Business Steven Sonntag for providing much of the information I needed to complete this project. As studies indicated in the Business Management (EDFA 60800) course, the General Fund Revenues comes from approximately 1% local sources and 99% state sources. Obviously, CPCSC is no exception. Sonntag reiterated how difficult it is to establish a final budget in the state of Indiana due in part to the time table of establishing set student enrollment numbers and obtaining the assessed values. He is obviously concerned about the projected growth rates and providing services in all areas of the budget. The

BUDGET ANALYSIS 50

budgeting accounts are multiple (literally there are pages of accounts). I have a new admiration for everything the business department does.

I would also like to thank Whiteland Elementary Principal, Cirsten Lewis, for all the time she took out of her busy schedule to discuss finance with me. So many times I felt like I was reading a foreign language, but her explanations helped me to comprehend finance more thoroughly. Thank you for being patient with me. Your knowledge is impressive.

The school treasurer, Mrs. Celeste Winscott, was extremely informative despite that fact that she is so demure. She expressed how stressful her job can be due to the accountability fact. She showed me how she does her accounting. She also shared how it is extremely important it is to keep meticulous records.

In all, business management is extremely extensive. I am so thankful for what I have learned in this class and look forward to my potential career as an administrator.

BUDGET ANALYSIS 51

REFERENCESLewis, Cirsten. Personal interview. 22 Nov. 2012.

Spray, Patrick. Personal interview. 30 Oct. 2013.

Sonntag, Steven. Email interview. 31 Oct. 2013.

Winscott, Celeste. Personal interview. 18 Nov. 2013.

"IDOE - Office of School Finance." IDOE - Office of School Finance. N.p., n.d.

Web. 23 Nov. 2013.

<https://dc.doe.state.in.us/ofsform9/views/reportpublic.aspx>.

"IDOE: Compass." IDOE: Compass. N.p., n.d. Web. 23 Nov. 2013.

<http://compass.doe.in.gov/dashboard/overview.aspx?type=corp&id=4145>.