Ann Arbor Public Schools Budget Information

1. Ann Arbor Public Schools Budget Information Presentation to PTOC For 2012-13 Budget February 13, 2012

2. Overview of 2011-12 AAPS Budget

3. Specific Fund Use • General Fund – Used for general operating expenditures of the • school district such as salaries and benefits, utilities, supplies, • equipment etc…, • Grant Funds- Restrictedby the grantor, i.e Title I, IDEA , Career & • Tech ed., etc..,) • Bond Funds- Restricted by the voters to fund capital projects such • as building construction, technology, bus purchases, etc… • Debt Service- Restrictedby law to fund debt service for bonds. • Sinking Fund- Restricted by state law to fund capital projects • including land acquisition and remodeling and repairing of current • facilities by contracted sources. • Special Revenue Funds- Restricted for specific purposes such as • Food Service and Rec & Ed.

4. Total Revenue for the District as a WholeFor Fiscal Year End June 30, 2011(unaudited)

5. Analysis of Operating Budget Fiscal Year 11-12 Basic & Added Instructional Needs $103,376,874 55.14% Adult Education 69,168 .01 Student Support Services 43,449,724 23.34 Executive Administration 1,703,442 1.09 Central Administration 4,806,114 2.75 Operations & Maintenance 19,409,028 10.45 Business Services 2,209,507 1.20 Transportation 4,805,473 4.00 Community Services 601,238 0.26 Outgoing Transfers 3,184,432 1.76 Total $183,510,493 100.00%

6. Expenditures as Percentage of Total Budget FY 2011-12

7. What’s Included? Instruction & Support Teachers Teacher Assistants Technical Assistants Coordinators Building Administration Building Secretaries Administration & Support Central Administration Directors/Supervisors Administrative Support (Executive Secretaries) Custodial/Maintenance Transportation

8. The Driving Cost in our District is People 3% 1% 11% 85% Salaries & Benefits Includes: 3% Other 12% Principals, School Secretaries 14% Aids, Curriculum Development 71% Teacher Costs Teachers include Classroom Teachers, Media Specialists, Counselors, Social Workers

9. Definitions Foundation Allowance: A funding formula providing for a per pupil distribution of State Aid based on the district’s previous combined state and local revenue, the growth in the State’s School Aid Fund and legislative action. Since determined in 1994, growth can only occur by legislative action. Blended Membership Count: The actual number of pupil membership (converted to full-time equivalent) for the February and September counts. A 25 percent to 75 percent blend respectively of these counts determines the number of pupils eligible for Foundation Allowance Funding.

10. Building a Foundation Allowance FY 2011/12 Per Pupil Allocation Non-Homestead 18.00 Mills $3,310 Local Non-Homestead (Commercial, Industrial, Rental, and Seasonal Homes) (Variable) 6 mills (fixed) Valuation $2.90 Billion State Revenue Sources: Sales, Income, Use, Cigarette, Liquor, Excise Taxes, Lottery, etc. $4,476 State Contribution (Variable) $ 0 State Contribution -20J Hold Harmless $7,786 Foundation Allowance (Base) 6 mills (fixed) 4. 6912 mills (variable) Homestead 1,234 Hold Harmless (fixed) $9,020 Foundation Allowance (Per-pupil Funding) Valuation $4.41 Billion

11. Funding Allocation Since Proposal A

12. Revenues driven by two major Factors Student population (blended count) State revenues (dependent on state economy) Revenue Projections

13. Key Components: Incremental Budget Increase (Step, FICA, Retirement) Fringe Increases (Health, Life, Dental, etc.) State Retirement Rate Contract Negotiations Other (Legal, Liability Insurance, Utilities, etc) Expenditure Projections

14. Annual expenditure increase of 8% over the next three years for health benefits Retirement rate will increase from 24.46% to 27.37% for FY 12/13 The retirement rate is projected to exceed 30% over the next two years if significant structural changes are not made. Assumptions Used forExpenditure Projections

15. Three-Year Budget Projection PROJECTED

16. Budgeted Expenditure Reduction& Fund Equity Usage

17. Potential impact of the Governor’s proposed budget for 2012-13 Up to $100 per pupil for meeting academic progress $115 per pupil estimated MPSERS contribution offset” Estimated $75 Per pupil for best practice incentives $10 million in competitive grants for reimbursement of transition costs for consolidation of services $1.75 for grants to support professional development for principals and assistant principals for implementing educator evaluations POTENTIAL of $4.6 million in additional non grant revenues for 2012-13 HOWEVER this does not replace the per pupil revenue we have lost over the past 2 years

18. AAPS Mission The mission of the Ann Arbor Public Schools is to ensure each student realizes his or her aspirations while advancing the common good, by creating a world-class system of innovative teaching and learning.

19. District Strategic Plan We will create a complete educational program featuring personalized learning that realizes student aspirations and meets international standards. We will develop and implement a personalized learning plan for each student. We will actualize the potential for excellence in all students through inspiration and support. 4. We will ensure meaningful learning through effective instruction. We will enhance the district’s professional learning system in order to provide relevant learning experiences and support for all staff in order to continually improve academic and social achievement for all students. We will engage and inform our constituents to engender trust and support to accomplish our mission and objectives. We will create and maintain physical learning environments that enable us to fulfill our mission. 8. Ensuring resources adequate to accomplish our mission and vision.

20. Considerations for Developing the Budget Non-Instructional Areas Maintaining service levels and providing the service differently Changing service levels Combination of the first two Consolidation with other districts Instruction and Student Programs Impact on student achievement Number of students impacted Equity Opportunity to provide instruction/learning differently

21. QUESTIONS?