MID-YEAR BUDGET REVIEW

1. MID-YEAR BUDGET REVIEW School Year 2017-2018 Nancy J Ross 505-330-3203 nancyross@q.com

2. GENERAL • Revenue is dependent on state funding and, thus, the economy of our State as well as our Nation • Though State funding has been restored from its plummet after 2009, the economy of our State has continued to be somewhat volatile • Legislative mandates may not be totally funded on the local level because of enrollment and/or demographic changes • Additionally, PEDcontinues to request the Legislature to place funding “below the line” to fund PED’s initiatives for education in our state. • Though typically a rising expense, salaries and benefits have actually decreased in the last two years.

3. OPERATIONAL FUND

5. Nancy J Ross, FY18 Budget Analysis

7. Nancy J Ross, FY18 Budget Analysis

10. STATUS OF BUDGETED EXPENDITURES

11. STATUS BY TYPE OF EXPENDITURE

12. Remember Save Harmless ?? Still there but we haven’t received this additional funding since FY15.

13. PAUSE FOR THOUGHT

16. Fact • Considering the state of the economy, management has been cautious in its efforts to protect Mosaic Academy • Cash balance has remained fairly stable as a result of proper management by the Council and Administration. Any decreases in cash were a result of thoughtful consideration for the needs of the students and staff of Mosaic Academy and with a plan for recovery in subsequent year(s) • The final unit value for FY18 has not yet been set • Our T & E (Training and Experience) index is increased slightly for next year’s budget – hypothetically gaining $2,181based on beginning FY18 demographics

17. Fact • “Living within our means” is a common sense approach • It’s how we manage our personal finances, our Charter and our state and nation • Critical to maintain an established cash goal and financial stability • Continued review supports resources are spent to improve student achievement and meet other established goals • Occasional deficit spending CAN work but only when serious discussions have preceded the decision to do so and when a definitive plan is in place to recover the cash balance lost • Continued control of cash balance is necessary in order to maintain stability • Continual review of cash balance goal • Budget decisions to protect cash balance goal while providing for the classroom • Understand the impact of using cash balance for recurring expenses • ANTICIPATE THE STATE’S INVOLVEMENT IN CASH BALANCES

19. Standard Focus for Budgeting • Expenditure of resources must clearly reflect the goals of the Charter • Every decision made should be based on these questions • “What is best for the students in our classrooms?” • “Are we living within our means?” • “Have we considered our cash balance goal?” • Realizing the State may also be looking at cash balances • Which also means: • Utilizing “best practices” • Thoughtful decision making at all levels • Long-range planning – even within a given year • Efficient and effective operations

20. Budget Impact for FY19

21. Other items to consider for FY19 • T & E increase, though minimal (Training and Experience Index) • Increased salary costs as teachers move to higher levels of licensure • Salaries of employees • Rising insurance costs (unknown at this time) • Cost of the educational retirement and retiree healthcare benefit; • Cost of repair of equipment and facilities as they age • Cost of permanent facilities • Other costs related to the world economy

22. QUESTIONS