AASBO March Bi-Monthly Membership Meeting

Dr. Chuck Essigs

The difficult times will stay for a number of years.

Could it get more difficult? – It could.

When will it improve?

Think long term.

Source of State DollarsSales tax individual $4.3 billion 52%

Income tax $2.5 billion 31%

Corporate tax $0.6 billion 7%

Other $0.86 billion 10%

Total $8.2 billion

Budget/ Future ConsiderationsOne cent sales tax ends in FY2014 - $1 billion

K-12 rollover - $1.2 billion (estimate)

Suspended funding formulas - $1 billion

State Jobs Plan – ? millions

Long Range ForecastEstimated revenue in FY2014 of $8.46 billion

Vs. actual revenue in:FY2005 of $7.72 billionFY2006 of $9.26 billionFY2007 of $9.62 billion

Soft Capital $165,120,700

New Utilities $100,000,000

Charter School Additional Assistance

$10,000,000

Building Renewal $241,593,600

Total: $516,694,300

* No estimate for New School Construction

Suspended K-12 Funding Formula Items

Other Issues

Full-day Kindergarten $218 million

No inflation increase for Base Formula

Over $100 million

Classroom Site Fund Over $200 million

School Budget

Parents, Community, Students and Employees

Portion of M/O Budget for Salaries and BenefitsState Average 84%

7 Districts are at 89% or more

43 Districts are between 89% and 85%

Times Have Changed

Past – Pay your people more or pay more people

Present – Pay your people less or pay less people

OptionsEliminate services

Contract services

Cooperative programs

Do Not Forget the Benefits

21 Districts - Over 30%

76 Districts - Between 30% and 25%

118 Districts - Between 25% and 20%

Special Education

Should not be overlooked

You need to look at comparisons

Special EducationKnow your spending and know why

Special Education/ % of M/O9 Districts - Over 20%

58 Districts - Between 20% and 15%

73 Districts - Between 15% and 10%

Special EducationSpend more or less than other districts

More or less students that need special services

More or less expensive services

Closing Schools

Why

When

Win

CLOSEDCLOSED