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FIVE YEAR FINANCIAL FORECASTMAY 2013

Cleveland Municipal School District

The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of

America.

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Five Year Forecast - Contents

Major AssumptionsGeneral Fund RevenuesGeneral Fund ExpendituresFive Year Forecast Summary

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Cleveland Municipal School District

Major Assumptions

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Major Assumptions

Revenue: On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning

January 2013. Forecast includes new levy. Assumes levy will expire December 31, 2016. Half year value is $31.4 million.

Forecast assumes that the property tax current collection rate will remain at 76.10% and the total collection rate will remain at 84.96%. 1% change represents $2.4 million.

Cuyahoga County completed its 6 year reappraisal. Property assessed valuation decreased by $800 million from $5.7 billion to $4.9 billion.

State foundation - Governors proposed bi-annual budget. Assumes FY14 and FY15 will be same as FY13 except for transportation and Charter schools. Assumes that $75.5 million guarantee will not be eliminated in FY16 and FY17.

Forecast assumes the Average Daily Membership for K-12 to be:CMSD Charter TotalFY13 39,088 18,344 57,432FY14 37,521 19,597 57,118FY15 36,023 20,796 56,819FY16 35,001 21,613 56,614FY17 34,139 22,303 56,442

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Major Assumptions continued

Expenditures: The district restored 50 minutes to the classroom in January 2013– 193

teachers were added – Estimated cost is $6.7 million in FY13 and $16.7 million in FY14-17.

Forecast assumes 50 less employees each year in FY14-17 due to attrition. Forecast assumes $14 million of budgetary savings per year in FY14-17. Forecast shifts $3.4 million of personnel cost to the General Fund in FY14 due

to a decline in federal funding (sequestration). Healthcare rates are forecasted to increase an average of 9.3% in FY14 - FY17. Forecast assumes all union agreements as currently defined including step

increases. Forecast assumes a $3.2 textbook budget for all fiscal years. Forecast assumes $3.6 million of strategic investments per year. Forecast assumes investment schools each year. $3.5 million FY14, $7.0 million

FY15, $10.5 million FY16-FY17. Forecast assumes $7,335 per student for charter schools in FY14 – 17.

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Cleveland Municipal School District

General Fund Revenues

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Cleveland Municipal School DistrictFY 2012-2013

Local Taxes; 26.4%

State; 64.4%

State of Ohio Re-

im-burse-ments, 4.5%Other;

4.7%

Where the Money Comes From

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Cleveland Municipal School DistrictLocal Taxes – Property Tax Revenue

2010 2011 2012 2013 2014 2015 2016 20170.0

25.050.075.0

100.0125.0150.0175.0200.0

147.1 148.1 144.1171.0 186.9 189.5 189.5

170.9

4.3 1.0 0.3

1.0

Real Estate Personal TangibleFiscal Year

R e v e n u e ( I n M i l l i o n s )

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Cleveland Municipal School DistrictProperty Taxes – Current Collection Rate

75.0

77.0

79.0

81.0

83.0

85.0

87.0

89.0

91.0

93.0

95.0

97.095.6

95.9

76.1

Cur

rent

Col

lect

ion

Rat

e

Year

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Cleveland Municipal School DistrictProperty Taxes – Total Collection Rate

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

75.0077.0079.0081.0083.0085.0087.0089.0091.0093.0095.0097.0099.00

101.00103.00105.00107.00

95.6

76.1

4.5

8.86

Current Collection Rate Delinquencies

Cur

rent

Col

lect

ion

Rat

e

Year

11

Cleveland Municipal School DistrictState Foundation Revenue

2010 2011 2012 2013 2014 2015 2016 2017$400

$405

$410

$415

$420

$425

$430

$435

$440

411.3404.5

421.4 419.5

410.5 410.5 408.8 407.6

27.334.1

State Foundation Fiscal Stabilization Fund

Rev

enue

(In

Mill

ions

)

Fiscal Year

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Cleveland Municipal School DistrictState Foundation Revenue – Excluding Charter School Portion

2010 2011 2012 2013 2014 2015 2016 2017$240

$250

$260

$270

$280

$290

$300

$310

$320

$330

$340

313.0298.5 304.4

290.5

267.6 258.8 251.1 244.8

27.334.1

State Foundation Fiscal Stabilization Fund

Rev

enue

(In

Mill

ions

)

Fiscal Year

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Cleveland Municipal School DistrictEducation Jobs

2010 2011 2012 2013 2014 2015 2016 2017$0

$5

$10

$15

$20

17.7

Education Jobs

R e v e n u e ( I n M i l l i o n s )

Fiscal Year

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Cleveland Municipal School DistrictProperty Tax Allocation – State Hold Harmless Reimbursements

2010 2011 2012 2013 2014 2015 2016 2017$0

$10

$20

$30

$40

$50

$60

12.4 12.4 12.3 15.2 18.0 18.0 18.0 15.2

4.5 4.4

38.6 39.8

26.913.9

13.9 13.9 13.913.9

Property Tax Reimbursements Utility Tax Reimbursements HB 66 CAT Reimbursements

R e v e n u e ( I n M i l l i o n s )

Fiscal Year

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Cleveland Municipal School DistrictOther Revenue

2010 2011 2012 2013 2014 2015 2016 2017$0

$5

$10

$15

$20

$25

$30

10.6

18.224.4 23.3 22.2 22.7 22.8 22.82.4

2.1

0.60.4

0.5 0.6 0.6 0.7

1.7

1.9

1.8 5.52.5 2.5 2.5 2.5

2.5

1.7

3.51.4

1.3 1.3 1.3 1.3 1.3

Other Interest Catastrophic Aid Medicaid Advance In

Fiscal Year

Rev

enue

(In

Mill

ions

)

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General Fund Revenue

2010 2011 2012 2013* 2014* 2015* 2016* 2017*550.0

570.0

590.0

610.0

630.0

650.0

670.0

690.0

662.7 668.2654.2 651.2 655.9 659.0 657.4

634.8

654.2

611.2 607.2 604.2 601.9 600.1

Total Revenue May 2013 Total Revenue Oct 2012

*Projected

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Cleveland Municipal School District

General Fund Expenditures

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Cleveland Municipal School DistrictWhere the Money Goes

Salaries, $284,310,264,

44.9%

Benefits, $112,797,530, 17.8%

Charter School Pass-

Through, $129,000,

000, 20.4%

All Other, $107,232,

885, 16.9%

FY 2012-2013

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Cleveland Municipal School DistrictSalaries

2010 2011 2012 2013 2014 2015 2016 2017$250

$270

$290

$310

$330

$350

$370

359.3

312.7 309.3

284.3297.3 296.6 295.3 293.7

Salaries

Fiscal Year

E x p e n d i t u r e s ( I n M i l l i o n s )

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Cleveland Municipal School DistrictFringe Benefits

2010 2011 2012 2013 2014 2015 2016 2017$0

$20

$40

$60

$80

$100

$120

$140

50.2 47.9 44.7 41.3 44.8 44.7 44.5 44.2

60.754.9 57.7 56.4

60.4 66.3 72.5 79.1

4.43.9 4.0

3.44.1

4.14.1

4.06.6

5.2 4.53.5

4.44.4

4.44.4

3.57.8 8.4

8.27.3

6.24.5

4.0

STRS/SERS Employee Insurance Benefits MedicareWorkers Compensation Other

Fiscal Year

E x p e n d i t u r e s ( I n M i l l i o n s )

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Cleveland Municipal School DistrictPurchased Services

2010 2011 2012 2013 2014 2015 2016 2017$0

$50

$100

$150

$200

$250

$300

15.1 14.2 12.0 12.8 13.0 13.2 13.4 13.69.3 7.8 10.3 10.8 11.0 11.2 11.4 11.6

63.4 56.5 57.7 59.7 68.2 72.9 77.6 78.7

98.3 106.0 117.0 129.0142.9 151.7 157.7 162.8

Utilities Student Transportation (Contract)Other Purchased Services Charter School Pass-Through

Fiscal Year

Expe

ndit

ures

(In

M

illio

ns)

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Cleveland Municipal School DistrictSupplies, Textbooks, Equipment, and Other Expenditures

2010 2011 2012 2013 2014 2015 2016 20170.0

5.0

10.0

15.0

20.0

25.0

30.0

12.69.0 10.0 11.7 10.5 10.5 10.5 10.5

1.3

0.8 1.01.1

0.7 0.7 0.7 0.7

7.8

8.3 6.58.6

8.3 8.3 8.3 7.6

7.711.5

4.22.5

3.5 3.5 3.5 3.5

Supplies and Textbooks Equipment Other Expense Transfers/Advances

E x p e n d i t u r e s ( I n M i l l i o n s )

Fiscal Year

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General Fund Expenditures

2010 2011 2012 2013* 2014* 2015* 2016* 2017*450.0

500.0

550.0

600.0

650.0

700.0

750.0

700.1

646.4 647.3 633.3

676.3694.2 708.3 718.4

601.8

540.4 530.3504.3

533.4 542.5 550.6 555.6

Total ExpendituresTotal Expenditures Excluding Charter

*Projected

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Cleveland Municipal School District

Five-Year Forecast Summary

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Cleveland Municipal School DistrictMay 2013 Five-Year Forecast

(in millions of dollars)

Beginning Cash Balance $50.4 $13.0 $39.7 $46.7 $64.4 $44.0 $8.8 ($42.1)

Total Revenues 662.7 668.2 654.3 651.1 655.9 659.0 657.4 634.8

Total Expenses 700.1 646.4 647.3 633.4 676.3 694.2 708.3 718.4

Revenue over Expenses (37.4) 21.8 7.0 17.7 (20.4) (35.2) (50.9) (83.6)

Ending Cash Balance 13.0 34.8 46.7 64.4 44.0 8.8 (42.1) (125.7)

Encumbrances/Reserves 6.5 8.2 11.1 11.0 8.6 8.6 8.6 8.6

Unencumbered Balance $6.5 $26.6 $35.6 $53.4 $35.4 $0.2 ($50.7) ($134.3)

FY 2017FY 2016FY 2014 FY 2015 FY 2010 FY 2011 FY 2012 FY 2013

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QUESTIONS

T H E P R I M A R Y G O A L O F T H E C L E V E L A N D M U N I C I PA L S C H O O L D I S T R I C T I S T O B E C O M E A P R E M I E R S C H O O L D I S T R I C T I N T H E U N I T E D S T A T E S O F

A M E R I C A .

Cleveland Municipal School District

Five-Year Financial Forecast – May 2013