anderson community school corporation madison county, indiana 2015 proposed budget executive summary...

Anderson Community School Corporation

Madison County, Indiana

2015Proposed Budget

Executive Summary and Supplemental Graphs

Scheduled Hearing: August 12, 2014Scheduled Adoption: September 9, 2014

Anderson Community School Corporation2015 Budget

Assumptions

• Continued weak enrollment. Net impact on revenue: slight reductionin the General Fund.

• Class sizes to remain within the unchanged contractual limitations.

• Assessed valuation expected to stabilize towards an increasing trend. (actual data for 2015 unavailable from Madison County).

• Tax collections rate same as recent historical collections.

• State support disbursements tied directly to student enrollment.

• Circuit Breaker losses as forecast by the legislative services agency, and continue to have an crippling effect on innovation and expansion of services.

• Pension Bond offset to continue to reduce revenue in Capital Projects Fund, Transportation and Bus Replacement Funds.

• Competitive environment expected to increase requiring aggressive responses to the educational needs of the community.

204/19/23 BUSINESS OFFICE- KEVIN J. BROWN

Anderson Community School Corporation2015 Budget

Expected OutcomesTotal tax rate to drop, primarily due to the impact of cash balances in debt funds and the State of Indiana control of maximum levies in most funds. (Rate expected to be below historical rates of 2010 through 2014).

Total revenue to be lower in 2015 as compared to 2014, and well below prior years as governed by enrollment.

General fund revenue to be nearly the same as 2014 primarily based on enrollment.

Circuit breaker losses to amount to approximately $6.5 million.

Required Pension Bond offset to reduce revenue in Capital Projects Fund, Transportation, and Bus Replacement Funds.

Tax collections estimated to be below 100% due to overall economic conditions.

Bargained and administratively driven cost reductions in Capital Projects Fund, Transportation, Bus Replacement and General Fund continue to hold the overall budget in balance for all funds.

Staffing for the 2014-15 school year reflects the re-opening of the Ebbertt Center for the reborn Career and Technical Education Program and the total is expected to be approximately 854.5 full time employees.(Based on an expected regular education average class size of approximately 25; within the unchanged, bargained class size goals.)

Start up operations and capital costs are included for the introduction of the Career Center on 38th Street.

Budget as advertised ensures the maximum revenue allowed by law to be secured by Anderson Community School Corporation.

All funds expected to be balanced in aggregate in 2014 with an ongoing, unchanged general fund cash balance. This should be considered the best case scenario as staffing is now locked in for the upcoming school year and enrollment remains uncertain.


CALENDAR YEAR

FINANCIAL SCENARIOANDERSON COMMUNITY SCHOOL CORPORATION

2015 BUDGET AND BEYONDREVENUE AND EXPENSE FORECAST – ALL FUNDS

2014 FORECAST 2015 FORECAST 2016 FORECAST 2017 FORECAST

REVENUE $73.3 $68.8 $72.0 $72.0

EXPENSE $71.3 $70.8 $72.0 $72.0

ALL FUNDS SURPLUS/SHORTFALL

$2.0* ($2.0)** $0 $0

GENERAL FUND SURPLUS/SHORTFALL

$0 $0 $0 $0

GENERAL FUND CUMULATIVE SURPLUS/SHORTFALL (INCLUDES CARRYOVER FROM PRIOR YEARS)

$11.0 $11.0 $11.0 $11.0

NOTE: INCLUDES FULL IMPLEMENTATION OF TARGETED COSTS REDUCTIONS; ASSUMES STUDENT ENROLLMENT AS FORECAST; ASSUMES STABILIZING OF ASSESSED VALUE; ASSUMES STABLE STATE SUPPORT REVENUE PER STUDENT.*SURPLUS ACCRUES TO DEBT SERVICE AND PENSION DEBT FUNDS IN THE FORM OF A CASH BALANCE. GENERAL FUND CASH BALANCE IS FORECAST TO REMAIN CONSTANT.**LOSS IS OFFSET BY DEBT SERVICE CASH BALANCE.

Millions of Dollars


0

5

10

15

20

2519

7119

7219

7319

7419

7519

7619

7719

7819

7919

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

14*

5

CALENDAR YEARS

* Forecast for Budget Purposes

ANDERSON COMMUNITY SCHOOL CORPORATION Sept. Total Enrollment for “K” thru “12”


6

YEAR


7

ANDERSON COMMUNITY SCHOOL CORPORATION Budget Order Assessed Valuation

CALENDAR YEARS* In 2009, major increases in the homestead deduction resulted in a substantial drop in assessed valuation.

“AN” - Anticipated


8

ANDERSON COMMUNITY SCHOOLSSTAFFING SUMMARY

FULL-TIME EMPLOYEES 2013-14

INSTR ASST./ISS, 114, 13.52%

CUST/MAINT/IT, 64, 7.59%

FOOD SERVICE, 70, 8.30%

OTHER/NON CERT, 18.5, 2.19%

SPEC. ED.CERT., 102, 12.09%

CLASSROOM CERT, 333, 39.48%

ADMIN, 26, 3.08%

CLERICAL, 32, 3.79%

ADMIN SUPPORT STAFF, 10, 1.19%

OTHER-CERTIFIED, 74, 8.77%

INSTR ASST./ISS CUST/MAINT/IT FOOD SERVICE OTHER/NON CERT

SPEC. ED.CERT. CLASSROOM CERT ADMIN CLERICAL

TOTAL: 843.5


INSTR ASST./ISS, 120, 14.04%

CUST/MAINT/IT, 61, 7.14%

FOOD SERVICE, 70, 8.19%

OTHER/NON CERT, 19.5, 2.28%

SPEC. ED.CERT., 101, 11.82%

CLASSROOM CERT, 344, 40.26%

ADMIN, 27, 3.16%

CLERICAL, 34, 3.98%

ADMIN SUPPORT STAFF, 10, 1.17%

OTHER-CERTIFIED, 68, 7.96%

INSTR ASST./ISS CUST/MAINT/IT FOOD SERVICE OTHER/NON CERTSPEC. ED.CERT. CLASSROOM CERT ADMIN CLERICALADMIN SUPPORT STAFF OTHER-CERTIFIED

9

ANDERSON COMMUNITY SCHOOLSSTAFFING SUMMARY

FORECAST FULL-TIME EMPLOYEES 2014-15 TOTAL: 854.5


Anderson Community School Corporation2015 BudgetTax Rate Analysis

* Based on an estimated assessed value of $1,600,000,000

2011 2012 2013 2014 2015 Fund Actual Actual Actual Actual Expected

Actual

Debt Service Fund .7736 1.0006 .5237 .8021 .5544

Trans. Operating Fund

.3403 .2086 .3565 .2858 .2793

Bus Replacement Fund

.0784 .0024 .0248 .0117 .0330

Capital Projects Fund .3911 .2346 .3941 .3135 .3034

Debt Service Pension Fund

.2366 .3498 .2094 .2982 .2202

TOTAL TAX RATE 1.8200 1.7960 1.5085 1.7113 1.3903


11

ANDERSON COMMUNITY SCHOOL CORPORATIONTax Rates By Fund

1.3271

1.6084

1.8188

1.6759

1.998

1.6202

1.8371 1.821.796

1.5085

1.7113

1.3903

0

0.5

1

1.5

2

2.5

3

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015AN

DEBT SERV PENSION BUS REPLACEMENT FUND PRESCHOOL GENERAL FUND

DEBT SERVICE FUND CAPITAL PROJECTS FUND TRANSPORATION FUND TOTAL

AN-ANTICIPATED


12

ANDERSON COMMUNITY SCHOOL CORPORATION2014 County School Corporations

Tax Rate Comparisons

Frankton/Lapel South Madison Alexandria Anderson ElwoodTOTAL 1.7062 1.4842 0.6509 1.7113 1.2486DEBT SVS PENS 0 0 0.0613 0.2982 0.079DEBT 1.0899 0.9738 0.1436 0.8021 0.5953BUS 0.0785 0.0499 0.0102 0.0117 0.0562TRANS 0.2947 0.2215 0.139 0.2858 0.2043CPF 0.2431 0.239 0.2968 0.3135 0.3138

1.7062

1.4842

0.6509

1.7113

1.2486

0

0.5

1

1.5

2

2.5

3


13

TAX LEVYACTUAL TAX COLLECTION SHORTFALL

DEBT SERVICE $14,772,543.00 $10,374,780.00 ($4,397,763.00)

PENSION DEBT SERVICE $5,164,337.00 $3,626,921.00 ($1,537,416.00)

CAPITAL PROJECT FUND $3,463,560.00 $2,432,463.00 ($1,031,097.00)

TRANSPORTATION $3,079,705.00 $2,162,880.00 ($916,825.00)

BUS REPLACEMENT $35,433.00 $24,883.00 ($10,550.00)

TOTAL LOCAL PROPERTY TAX SUPPORTED FUNDS * 70.2% COLLECTION RATE:

$26,515,578.00 $18,621,927.00* ($7,893,651.00)

ANDERSON COMMUNITY SCHOOL CORPORATIONCIRCUIT BREAKER & TAX COLLECTION LOSSES

PROPERTY TAX REVENUE ONLY2012 BUDGET YEAR


14

ANDERSON COMMUNITY SCHOOL CORPORATIONCIRCUIT BREAKER & TAX COLLECTION LOSSES

PROPERTY TAX REVENUE ONLY2013 BUDGET YEAR

TAX LEVYACTUAL TAX COLLECTION SHORTFALL

DEBT SERVICE $7,785,810.00 $5,563,438.00 ($2,222,372.00)

PENSION DEBT SERVICE $3,113,135.00 $2,224,525.00 ($888,610.00)


TRANSPORTATION $5,300,060.00 $3,787,218.00 ($1,512,842.00)

BUS REPLACEMENT $368,700.00 $263,459.00 ($105,241.00)

TOTAL LOCAL PROPERTY TAX SUPPORTED FUNDS * 71.5% COLLECTION RATE:

$22,426,761.00 $16,025,294.00* ($6,401,467.00)


15

ANDERSON COMMUNITY SCHOOL CORPORATION2014 BUDGET YEAR FORECAST

CIRCUIT BREAKER AND TAX COLLECTION SHORTFALL INCLUDING PROTECTED FUNDS.

PROPERTY TAX REVENUE ONLY.

TAX LEVYEXPECTED ACTUAL TAX COLLECTION

EXPECTED SHORTFALL

DEBT SERVICE $12,986,626.00 $9,090,638.00 ($3,895,988.00)



TRANSPORTATION $4,627,325.00 $3,239,128.00 ($1,388,197.00)

BUS REPLACEMENT $189,432.00 $132,602.00 ($56,830.00)

TOTAL LOCAL PROPERTY TAX SUPPORTED FUNDS *

$27,707,284.00 $19,395,098.00* ($8,312,186.00)

NOTE: Including Protected Funds in Circuit Breaker calculation.* Assumes 70% overall collection rate.


16

ANDERSON COMMUNITY SCHOOL CORPORATION2015 BUDGET YEAR FORECAST

CIRCUIT BREAKER AND TAX COLLECTION SHORTFALL INCLUDING PROTECTED FUNDS.

PROPERTY TAX REVENUE ONLY.

TAX LEVYEXPECTED ACTUAL TAX COLLECTION

EXPECTED SHORTFALL

DEBT SERVICE $8,873,821.00 $6,211,675.00 ($2,662,146.00)



TRANSPORTATION $4,200,000.00 $2,940,000.00 ($1,260,000.00)

BUS REPLACEMENT $200,000.00 $140,000.00 ($60,000.00)

TOTAL LOCAL PROPERTY TAX SUPPORTED FUNDS *

$21,396,817.00 $14,977,772.00* ($6,419,045.00)

NOTE: Including Protected Funds in Circuit Breaker calculation.* Assumes 70% overall collection rate.


17

ANDERSON COMMUNITY SCHOOL CORPORATIONTRANSPORTATION FUND

PROJECTED EXPENDITURES 2014 2015

Actual anticipated expenditures $5,100,000.00 $4,500,000.00

Budgeted appropriations $3,711,808.00 $3,700,000.00

Projected Revenue

Property tax levy $4,627,325.00 $4,200,000.00

Other revenue (EXCISE, CVET, FIT) $299,819.00 $299,819.00

____________ ____________

Total budgeted revenue $4,927,144.00 $4,599,819.00

Expected actual property tax revenue $3,239,128.00* $2,940,000.00*

Expected other revenue (EXCISE, CVET, FIT) $275,113.00 $275,113.00

____________ ____________TOTAL ANTICIPATED ACTUAL REVENUE: $3,514,241.00 $3,215,113.00

RESULT: EXPENDITURES EXCEED REVENUE BY $1.6 MILLION IN 2014 AND BY $1.3 MILLION IN 2015.

* Shortfall due to Circuit Breaker and Collections Shortages.


PROJECTED EXPENDITURES: 2014 2015Utilities Cost $2,273,805.00 $2,273,805.00

Maintenance Staff $1,152,000.00 $1,152,000.00

Technology Staff $655,000.00 $655,000.00

____________ ____________

TOTAL COMMITTED COSTS $4,080,805.00 $4,080,805.00

Remaining Budget (all other capital expense) $558,198.00 ($80,805.00)

Total Budgeted Expenditures $4,639,003.00 $4,000,000.00

PROJECTED REVENUE:

Property Tax Levy $5,075,810.00 $4,600,000.00

Other revenue (EXCISE, CVET, FIT) $328,878.00 $328,878.00

____________ ____________

Total Budgeted Revenue $5,404,688.00 $4,928,878.00

Expected actual property tax revenue $3,553,067.00* $3,220,000.00*

Expected other revenue (EXCISE, CVET, FIT) $358,227.00 $358,227.00

____________ ____________

TOTAL ANTICIPATED ACTUAL REVENUE: $3,911,294.00 $3,578,227.00

RESULT: NO REVENUE AVAILABLE FOR CAPITAL IMPROVEMENTS.*Shortfall due to Circuit Breaker and Collections Shortages.

18

ANDERSON COMMUNITY SCHOOL CORPORATIONCAPITAL PROJECTS FUND


Anderson Community School Corporation2015 BudgetConclusions

• REVENUE side of the budget in All Funds continues to be the major budget issue for 2015 and beyond.

• Enrollment losses moderating• State support losses reversed based on stable enrollment• Circuit breaker losses continue• Tax collection losses continue• Pension Bond tax rate offset continues to compromise revenue in Capital Projects Fund, Transportation and Bus Replacement Funds•2015 Budget as presented maximizes revenue available according to state law.

•EXPENSE side of the budget has been addressed within the constraints of administrative authority and collective bargaining, however cost pressures and delivery of services is placing pressure on our fiscal condition.

•Targeted class sizes will not exceed contractual guidelines which are unchanged•Additional reductions should be targeted to offset any future enrollment losses•Staffing in place is being maintained at near peak efficiency•Buildings are being operated at near optimal occupancy and efficiency•Budgets for 2014 and 2015 are balanced in aggregate with the challenge of continuing balanced budgets in the years ahead•General fund cash balance has been established and efforts will be made to preserve it for future financial uncertainties•The Ebbertt Education Center will be re-opened to provide space relief for the high school and to better accommodate Career and Technical Education programs and their future expansion.•Since the completion of building and staff consolidation, we have been experiencing “staffing creep” upwards, despite continued falling enrollment. This increase in staffing serves to erode our financial condition, cannot be sustained at the current rate, and must be kept in check to avoid future financial problems which includes an erosion of our cash balance and potential annual deficits.


NEXT STEPS:• Continue to promote a partnership with the all education stakeholders to

collaborate on cost reduction and strategies as needed that may be necessary to maintain fiscal solvency.

• Continue similar collaboration through professional associations in Indianapolis to pursue additional revenue solutions with the state legislature.

• Intensify discussions with our local legislators in gaining their support for potential revenue generating solutions.

• Continue marketing of the school corporation to promote an increase in enrollment trends.

• Closely monitor staffing levels to ensure alignment with enrollment needs.

• Promote and expand efficiency gains in the areas of facilities utilization and operations.

• Continue to move in the direction of a marketplace responsive delivery of services and offerings, such as the planned career center on 38th Street.

• In light of the reality of K-12 education being in transition from largely a monopoly to a competitive model, the administration, AFT and each employee individually must intensify their efforts to be customer oriented.


anderson community school corporation madison county, indiana 2015 proposed budget executive summary...

Documents

general fund revenue

total revenue

capital projects fund

maximum revenue

bus replacement funds

general fund surpluss

debt funds

funds surplusshortfall