Elida Local Schools Financial Summit V

1. Elida Local Schools Financial Summit V Report to Stakeholders Fiscal Year 2009-10 Joel L. Parker,CPA

2. Introductions • Economic Outlook • Federal Programs

3. Goals • Review the financial condition of Elida Local Schools • Expand the knowledge base on school funding issues • Review data for future financial planning • Exchange ideas on “best practices” • Encourage dialogue on future economic trends

4. Trivia • $65,000 • $38,000 • $2,080 • $10,000 • $33,658 • Indiana Schools

5. Concerns • State budget gap- $5-$10 billion • Projected loss to Elida FY 12- $1.6 to $2.1 million(what is coming?) • Tax delinquencies • Loss in state aid • Tax payer still hurting from recession • Unfunded mandates

6. Perfect Storm • Loss in stimulus $510,083 • Loss in inventory tax $364,235 • Loss in inventory tax $364,235 • Foundation $129,560 • Foundation $211,376 • Inflation on expenses • Levy fatigue

7. Legislation • SB 5 Collective Bargaining Reform • HB 69 Pension Reform • HB 136 Charter/voucher expansion • HB 153 Budget Bill

8. State Aid

9. Charter/Voucher Concerns • OVA $146,102 /23 = $6,352 • Elida Cupp Report = $2,684

10. Tangible Personal Property Tax

11. WHAT HAVE WE DONE TO GET LEAN? • Staff cuts • Administrative cuts $239,155 • Administrative Wages-0% increase 2 yrs • Streamlined food service • Moved staff to PPO insurance plan • Moved to pay to participate • Passed a levy in 2005 to bring back specific programs • Reduce bus fuel consumption • Think long term • Savings on Retire/Rehire • Sharing on health premiums

12. Continued • Withdrawal from ESC Alternative Program - $7,000 • Not replace mechanic - $58,472 • Hire Psychologist - $9,923 • 2004-05 one less teacher at EE • 2005-06 one less teacher at EE and HS • Partner with WCLA on software $14,000 • Review SF6 billing - $24,000

13. Review Staffing Meal Policy American Express Bus Idle Share Ins Increases Bulk Paper Bid Property/Liability Diesel Grant Safe Route Grant Dir dep/email PO Hire maint. person Turn down thermostats Change drug company No health ins R/R New health plans Auto lights switches Bid projects MAC Grants Early bus buy What have we done to get lean?

14. What have you done lately? • Review set points $74,000 • Reduce Teacher Academy $65,000 • Re-route buses(4) $84,444 • Reduce special ed teacher $76,102

15. What will you do next year? • Consolidate choir position • Reduce MS teacher-(technology class) • Move Central Office secretary to HS • Reduce building budget • Lean on grant $ for technology • Work on reductions in health care • Reduce bus route • Review staffing • Pay off HB 264 Note early

16. Cost Reduction-Spring 2011 • Phase I- Cut 11.5 teachers $878,000 • Phase II – Close Gomer $433,000 • Phase III – EMS re-configure $275,000 • Phase IV – Return to ½ K $240,000 • TOTAL $ 1,826,000

17. Wage Freeze • Administrators – 2 yr freeze • All Others – 0 on base 2 years, steps year 1, no steps year 2 • Savings $823,000

18. Fund Raising Efforts • Fieldhouse Renovation $350,000 • Concession Building $150,000 • Locker/weight room $100,000 • Piano Fund • Safe Route Grant

19. PERFORMANCE INDICATORS • Carry-over Growth 1-5%(update) • Strength of Carry-over - 60 day(update) • 85% Rule on Salaries and Benefits(update) • Review Levy Cycles • Debt to Total Assets • Residential Tax Rate • Per Pupil Spending (vs. other schools)

20. 74Day Cash Balance! 60 DAY CASH BALANCE ALMOST A REALITY

21. June 30 Carry-Over: A New Cycle • 2000 $1,048,819 23 days • 2001 $ 758,675 17 days • 2002 $ 821,146 18 days • 2003 $ 360,933 8 days • 2004 $ 967,429 21 days • 2005 $1,865,900 39 days • 2006 $2,645,703 53 days • 2007 $3,496,376 68 days • 2008 $4,071,288 76 days • 2009 $4,127,565 74 days • 2010 $3,454,672 60 days • 2011 $2,702,030 47 days (estimate)

22. Health Insurance • 1/1/09 Medical Rate Increase 15% • 1/1/09 Dental Rate Increase 20% • 1/1/09 New Plan MDHP Developed • 1/1/10 New High Deductible Plan • 1/1/10 Medical Rate Increase 20% • 1/1/10 Dental Rate Increase 20% • Meeting this year to introduce HDHP plan • Continue discussions on spousal coordination of benefits • What are you doing/seeing???

23. Health Care • 2011-Spousal language • Increase employee share(20,15,10) • 3 plans(low,mid,high ded) • Change TPA • Change consultant

24. General Fund

25. General Fund Expenditures

27. FOOD SERVICE

28. Program Spending-6/30/10

31. AUDIT REPORT • Performed every year • Cost to taxpayers $16,000 • Cash basis (saves taxpayers $10,000-$13,000 each year) • Tests are performed on accounts payable, payroll, compliance with ORC, fund raising, athletics, food service, grants, etc. • Clean opinion • No adjustments

32. ADMINISTRATIVE EXPENSES Administration: Salaries for administrators, office staff, and office supplies

35. TAX BASE

36. State Budget Concerns-FY 2010 • CAT $ 1.3 billion new • Corporate Franchise Tax 1.1 billion loss • Tangible Property Tax 1.6 billion loss • Income Tax 2.1 billion loss • NET LOSS 3.5 billion in state revenue • 10 year job loss – 210,000 manufacturing • 10 year job loss- 4,000 Allen County • BUDGET GAP $5-$10 BILLION????

37. Levy Timeline-Future Dates • May 2010 Renew Emergency Levy • Fall 2012, 2013 Renew PI Levy • 2012, 2013 Levy Discussion • 2012-2013 OSFC Issue • 2014,2015 Renew Emergency Levy

38. Revenue Shortfalls-Ernie Strawser SBO Quarterly • Ohio’s income tax down by 12% • By FY 2011- 9% of state education budget supported by stimulus $ • Unemployment at 11% (difficult to achieve tax revenue at pre-recession levels(would take 2 years to respond) • In 30 years, never witnessed greater challenges for schools

39. Open Enrollment • FY 07 In $535,000 Out $1.3 million • FY 08 In $597,000 Out $1.4 million • FY 09 In $912,000 Out $1.5 million • FY 10 In $1.24 million Out $1.48 million • FY 11 In $1.38 million Out $ 1.6 million

40. What Next???