Public School Budget Amendment Presentation 2016/2017

1. Paw Paw Public SchoolsBudget Amendment Presentation2016/2017 December 14, 2016

2. Financial GoalPolicy 2201 • 10% Fund Equity • Calendar • Conservative • Planning • Budgets to the Board: • Adopt Preliminary Budget prior to start of school year • Mid year revision to reflect changes we know about • End of year revision

3. Budget Amendment2016/2017 • General Fund • School Service Fund • Cafeteria • Child Care • Debt Information

4. Foundation • $7,511 Foundation allowance (with equity and other payments rolled up into it) • The fall count day is the 1st Wednesday in October to be within federal rules for special education related student data • The funded count blend is based on 90% of the October count and 10% of prior February count. (This is consistent with last year) • Students changing districts outside the county between count days will also impact funding for the year. Last year we had a net gain of 2 students. • This is partially paid through local taxes (the 18 mills) with the majority paid to us by the State. Cash to districts is significantly behind expenditures. • Local taxes are remitted to us after people pay the townships. Basically this means January through March. • State Aid is paid in 11 installments starting October and ending in August after the end of the school year.

5. Enrollment TotalK-12Alt. Ed.Other Oct. Actual Count 2,220 2,100 111 9 Projected Count 2,2032,090 104 9 Inc. (Dec.) 17 10 7 0 Allow. for error in projection 10 10 0 0 Feb count 2,185 2,092 84 9 Blended (funded) count Projected Blend 2,192 2,081 102 9 16/17 blended count 2,217 2,099 108 9 Increase in blended count 24 18 6 0

6. General Fund 2016/2017 Preliminary Budget (adopted June 2016) Revenue and Sources $ 20,091,867. Expenditures and Uses (20,242,636) Net Excess of Expenditures $ (150,769) Expected 6/30/17 total fund balance$4,403,947 21.76% Expected 6/30/17 unassigned fund balance $3,411,314 As % of total expenditures 16.85%

7. Funding changes • State funding Per Pupil Foundation Grant (PPFG) rates were basically finalized when we presented our preliminary budget. The final amount was $7,511 which was the same as our budgeted rate. • The October count enrollment was higher than estimated by 17 students total. We also allowed for a 10 student count error in our projection based on the 2015/16 experience. After considering these our projected State foundation revenue budget increased by $182,000 • State Special Education Hold Harmless currently computes at a reduction of $60,000 for this school year.

8. Funding changes (cont.) • The state increased the 147c retirement flow through by $160,000. This will have the same increase in expenditures as we immediately return the funds to the state as a payment into the retirement system. • We added services to At Risk state aid program to use approximately $70,000 in carryover funds. This will also result in an increase in our expenditures by the same amount. • The VBISD flow through funding is reduced $12,000. • The net impact was an increase in revenue of approximately $353,000.

9. General Fund 2016/17 Other changes • Actual ending fund balance at 6/30/16 was $409,000 more than projected which increased the beginning fund balance from preliminary estimates. This was a combination of increased revenues and fewer expenditures. It is a 2% variance of the total expenditure budget.

10. Expenditure Budget Changes • Staffing changes and revised benefit costs are included in this presentation. This includes summer notices related to turnover, and summer staffing assignment changes. We did determine a need to increase staffing levels at the MS and in special education. This budget reflects the actual staffing as we currently anticipate it. • Benefit budgets were adjusted to current insurance cost and retirement contribution expectations. • The retirement flow through was increased $160,000 to match the increased revenue. • The At Risk grant expenditure budget was increased to match the increased $70,000 revenues. • Other 15/16 expenditures were reviewed and budget lines were adjusted as needed. • The net impact is an increase in expenditure budget of approximately $320,000.

11. Where are we now?

12. General Fund 2016/2017 Revised Budget Ending Balance Estimates @ 6/30/2017 • Assigned for Maintenance $ 424,646 • Assigned for Technology 441,703 • Assigned for Community Education 193,577 Subtotal Assigned Fund Balances $ 1,059,926 Unassigned Fund Balance 3,697,532 Total Assigned and Unassigned Fund Balance 6/30/17$ 4,757,458 23.14% Unassigned Fund Balance @ 6/30/17 $ 3,697,532 17.98%

13. School Service Fund Revised 2016/17 Budget Revenue & incoming transfer $ 1,050,000. Expenditures & outgoing transfer (1,045,000) 2016/17 Excess Revenue $ 5,000. Est. Ending Fund Balance @ 6/30/17 $ 185,668 17.77%

14. Cafeteria Revised 2016/17 Budget Revenue & incoming transfer $ 995,000. Expenditures & outgoing transfer (990,000) 2016/17 Excess Revenue $ 5,000 Est. Ending Fund Balance @ 6/30/17 $ 145,874 14.73%

15. Child Care Program Revised 2016/17 Budget Revenue $ 55,000. Expenditures(55,000) 2016/17 Excess Expenditures $ 0.

16. Debt 2016/2017 Millage by Debt Issue (R=Refinance) • 1998 Debt (R) 0.300 mills • 2008 Debt (R) 1.400 mills • 2012 Debt (R) 3.700 mills • 2013 Debt (R) 1.800 mills • 2014 Debt (series I) 0.400 mills • 2014 Debt (R) 0.100 mills • 2014 Debt (R) 0.200 mills • 2015 Debt (R) 0.300 mills Total Debt Millage 8.200 mills

17. Debt 2016/2017 Debt Fund Revenue: Levy $ 3,649,101 Borrowing Nov., 2016 708,483 Borrowing May, 2017 1,308,676 Total $ 5,666,260 School Loan Revolving Fund balance at 6/30/16 (P&I) $ 5,216,227 Projected date to pay off loan 2037 Mandatory repayment date 2037