FY2010 Preliminary Budget Appoquinimink School District July 14, 2009 Presentation

1. FY2010 Preliminary Budget Appoquinimink School District July 14, 2009 Presentation

2. ASD FY2010 Preliminary Budget • What we will cover • Process and timeline • Principles • Major changes from FY2009 • The budget

3. Process and timeline • Start with FY2009 Final Budget • May/June – forecast final FY2009 revenues/expenditures • May/June – meet with schools and departments to discuss FY2010 needs

4. Process and timeline • May/June – make Superintendent and Financial Advisory Committee aware of potential major budget issues • June – forecast FY2010 revenues based on FY2009 and draft State budget • June/July – set tax rates

5. Process and timeline • July – adjust based on final State budget and FY2009 ASD figures • July – preliminary budget reviewed by Financial Advisory Committee (FAC)*** • July – preliminary budget presented to the Board for approval*** *** These may be done in June in years of more financial certainty

6. Process and timeline • July 1 – fiscal year begins – operate conservatively using draft preliminary budget until Board approval • July 1 (or so) – State pre-loads State appropriations in Appoquinimink’s “account” (typically 75%) • October – unit count finalized, balance of State money allocated

7. Process and timeline • December – prepare final budget • January – final budget reviewed by FAC, presented to Board • April-July – amendments to the final budget may be considered by the FAC and Board • May – cycle starts again

8. Process and timeline • Monitoring and reporting • Finance Director monitors appropriation balances and expenditure budgets almost daily • Payroll staff monitor reports after each payroll disbursement • Finance staff review reports weekly/monthly as applicable • Monthly reporting to FAC, Board, public

9. Budgeting Principles • Balanced budget (total revenue budget = total expenditure budget) • Build and maintain our reserve • Preliminary budget conservatively forecasts revenues in a lean year like FY2010

10. Major changes from FY2009 • Federal – additional $1.8 million in ARRA (“Stimulus”) one-time special education funds – spending plan being developed openly with a committee of parents, Board, district and school staff • Federal – also receiving smaller amounts of ARRA funds for nutrition equipment and homeless student support

11. Major changes from FY2009 • ARRA Stabilization funds are filling State cuts in Student Success, Technology, ELL, Reading Resource, Math Specialists, Tax Relief, Academic Excellence Allotment (~$1.5M total) • Preliminary budget shows these funds as State – will likely show as Federal in the final budget

12. Major changes from FY2009 • The ARRA Stabilization funds should also be available to backfill the zeroed-out State appropriations for FYs 2010 and 2011, but not after that • State salaries – 2.5% cut on State side – Appoquinimink’s “furlough” plan has not been finalized

13. Major changes from FY2009 • Local –$500K from reserve to balance the budget (to cover contractual local raises) • IBU16 (Instructional Materials) cut 17% then split between school budgets and the district textbook fund • Building Use/Rentals revenue is now a line in the detailed revenue budget

14. Major changes from FY2009 • Major capital • All Year Three funding is in the Bond Bill (less $273,966) • “Escheat” funded construction from FY2009 – never received in FY09 but it was added to FY2010 bond bill

15. Major Capital Bond Funding

16. FY2010 Prelim Revenue Budget

17. 27% 70% FY2010 Prelim Revenue Budget TOTAL124.1M FEDERAL3.9M 3% LOCAL33.6M STATE86.5M Was 3%, 26%, 72% in FY09

18. FY2010 Prelim Expenditure Budget

19. FY2010 Preliminary Budget • This preliminary budget was reviewed and endorsed by the Financial Review Committee on July 7, 2009 • Questions? • Approval