OLYMPIA CUSD NO. 16

1. OLYMPIA CUSD NO. 16 MISSION STATEMENT The mission of the Olympia School District is to graduate all students instilled with a hunger for life long learning based on rigorous standards of quality and excellence, achieved through a partnership of school, family, and community. A TRADITION OF EXCELLENCE IN EDUCATION

2. What Do You See? Young Girl or An Old Woman?

3. DEFICIT VS GAP • Deficit is the difference between revenue and expenditures in one given year. • Gap is the anticipated difference between revenue and expenditures including the spending of early tax monies, and spending down working cash fund, FY 04 revenue enhancements and FY 04 cost containments.

4. CLOSING THE 3,890,000 GAP 1,100,000 935,000 355,000 1,500,000

5. 2001-2002 Expenditures By Fund

6. 2001-2002 O&M Fund Expenditures

7. 2001-2002 Education Fund Expenditures

8. Education Fund Revenue99-02 Audited, 03-06 Projected Includes $1.5 Million Transfer from Working Cash Includes $1Million Transfer from Working Cash

12. Education and Working Cash Fund Balances 4 mill 3 mill 2 mill 1 mill 0 -1 mill -2 mill -3 mill

13. Financial Information2002 School Report Card Expenditure Percentage by Function 2000-01

14. Grade 3 Class Size ComparisonDistrict vs State

15. Grade 6 Class Size ComparisonDistrict vs State

16. Includes Working Cash Transfers

20. PROJECTED

21. Enrollment Trends If this pattern holds true through 2005-2006, Olympia’s enrollment would have declined in excess of 366 students in nine years!

25. STATE AID FUNDING • Declining enrollment is occurring in many rural districts throughout the State of Illinois • Average daily attendance impacts State Aid Funding • Declining student enrollment results in less State Aid Funding

26. FOUNDATION FORMULA on JAN 2003 Foundation Level X Average Daily Attendance (ADA) $4,560 X 2,167 = $9,881,322 MinusAvailable Local Resources .03 X $205,680,657 + $278,000 = $6,448,420 Equals Foundation Formula Claim $9,881,322 - $6,448,420 = $3,432,903

27. FOUNDATION FORMULA on Aug 2003 Foundation Level X Average Daily Attendance (ADA) $4,810 X 2,169 = $10,432,842 Minus Available Local Resources .03 X $205,680,657 + $259,387 = $6,429,807 Equals Foundation Formula Claim $10,432,842- $6,429,807 = $4,003,035

29. Other Districts Facing Financial Crunch • PANTAGRAPH 09-11-03 Headline – Task Force to Evaluate Unit 5 Budget “To balance the budget, at least $5.3 million in cuts or new money must be found .” - Rebecca Loda - Pantagraph

30. Why the Gap is Getting Bigger • Expenditures Exceed Revenue • Salary and benefits increases • Declining student enrollment • Unfunded mandates • Reduction in state funding • Increased energy costs • Equalized Assessed Valuation flat lined

31. Early Taxes in Jeopardy • PANTAGRAPH 09-11-03 Headline – Single Tax Bill in the Works “Most counties have a single tax bill, and it’s better to be doing things the same as other counties.” - Bob Kahman McLean County Supervisor of Assessments

32. Depending on Early Taxes Why not include early taxes on a regular basis? • Borrowing from future revenue to balance the budget is not a good practice • McLean County doesn’t guarantee that the funding will arrive each June • McLean County just announced a plan to change in how taxes are collected

33. Depending on Early Taxes • Last 18 days of this Fiscal Year were paid with Next Year’s Tax Money.

34. How Long Will $1 Million Dollars in the Education Fund Last? 25 days (spend about $38,926 a day)

35. 2003 Actual Expenses – Ed. Fund 5.75% is average increase over 5 years 5.15% is average Teachers salary increase over last 5 years 8.00% 5.90% 6.23% 4.05% 3.05% 6.93% Minus Onetime Transfer

36. Special Education Revenues and Expenditures TOTAL REV UNDER EXP = $5,892,492 1.2 Million Dollar Gap

38. Why $1,053,000 increase in 2003 expenditures? • Salary Increases $487, 103 • One Time Tech Transfer $282, 500 • Special Ed Increase $110,000 • Benefits (ERO/Health Ins.) $92,838 $972,441

39. Increases in line item expenses greater than $2,500 or 25% of the previous year • $10,119 in Curriculum Salary Absences/Illnesses/Transportation Reimbursement • $1,159 in Administrative Supplies Inform Public on Finance Issues • $2,078 in Principals Travel 1 Principal Between Two Schools & Required Administrative Training • $16,276 in Technology Repair Salary Down 1 FTE Technology in FY ‘03

40. Increases in line item expenses greater than $2,500 or 25% of the previous year • $9,005 in OHMS Supplies Postage, Supplies • $19,659 in OHMS Food Service 5% increase for food and we increased sales • $28,326 in OHMS Technology MS License, Network Software, Virus Protection • $17,900 in OHMS Copy Machine Internal transfer to eliminate the need for another Administrative Cost Limitation Hearing

41. Example of an Actual Solution • Increase HS Class Size $262,000Fewer Classes, Fewer Jobs • Cut Admin, Support, Exp $105,000Cuts - Food Ser, Tech, O&M, Trans • Eliminate Block Schedule $90,000 Fewer Classes, Fewer Jobs • Eliminate Full Day Kind. $93,000 Fewer Classes, Fewer Jobs • Eliminate 10% of Line Item Growth in Baseline of 04 Budget $110,000 Comes from Salaries, Benefits, Negotiations – All Contractual • Reverse 10% of Line Item Growth in Expenses Last 2 Years $180,000 Would be a 20% decrease for some items • $0.33 referendum $660,000

42. What Do You See? Rabbit or Duck?