WELCOME TO THE 2007 - 2008 BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF SOUTH MILWAUKEE.

WELCOMETO THE

2007 - 2008

BUDGET HEARINGAND

ANNUAL MEETING

OF THE

SCHOOL DISTRICT OF

SOUTH MILWAUKEE

SOUTH MILWAUKEE SCHOOL DISTRICT

September 5, 2007 7:00 p.m.

AGENDA FOR PUBLIC HEARING

I. Explanation of Dual Meeting and Opening Remarks A. Introduction of School Board and Selected

Staff Members B. Introduction of Legal Counsel and

Parliamentarian II. Presentation of Treasurer’s Report III. Opportunity for Public Comments on the Proposed

Budget IV. Closing Remarks and Adjournment

AGENDA FOR ANNUAL MEETING I. Call to Order II. Explanation of Ground Rules III. Elect Chairperson IV. Approve Agenda V. Approval of Previous Minutes VI. Adoption of Resolution on Tax Levy VII. Old Business VIII. New Business IX. Adjournment

THE 2007-08 SCHOOL YEAR

Continued work to improve academic achievement through high standards and rigorous curriculum

$820,561 in budget reductions- the gap between revenues and expenditures

Infrastructure work including:

PLTW tables for the High School Tech Ed Department

Walkway at Luther Elementary

Projection systems at Middle & High School

Security Systems at Blakewood, Lakeview & Luther Elementary Schools

Battery backup connected to generator for Technology Department

Maintenance vehicle for the Operations Department

Basketball hoops for the High School

WHY $820,561 IN REDUCTIONS?

(The Gap Between Revenues & Expenditures)

Revenue limits control the total amount of taxes and general state aid a school district can collect

This amount is allowed to increase annually by the CPI, the 2007 increase is 2.8%

State mandates and guidelines often limit the District’s ability to balance the budget

FUTURE BUDGETS

As long as revenue limits are in place and expenses increase at a greater rate than revenues, the district will be facing a budget gap.

We expect to see continued reductions for the 2008-09 school year.

2007-08 REDUCTION SUMMARY

The $820,561 gap between revenue and expenditures was addressed as follows:

Staff reductions

Copy center lease changes

Budget reductions at all schools and departments that include employee travel, paper, postage, dues/fees and supplies

Revenue increases in special education aid, school fees and open

enrollment

School District of South Milwaukee

2007-08 Budget Assumptions

February 21, 2007 - APPROVED

Description Additions/Reductions Totals

Initial Revenue Assumptions:    

Revenue Cap 505,087  

Special Education Aid 56,004  

Total Revenue Increase   561,091

Initial Expenditures Assumptions:    

Salary/Benefits/Lane Movement/Retiree Health 1,339,220  

Utilities 46,655  

District Insurance 19,480  

District Purchased Services (23,703)  

Total Expenditure Increase   1,381,652

Total Budget Adjustment   (820,561)

Proposed Expenditure Reductions:    

.50 FTE Business Ed Teacher Position 28,000  

.66 FTE French Teacher Position 43,000  

.50 FTE German Teacher Position 29,400  

1.0 FTE HS Social Studies Teacher Position 65,000  

1.0 FTE Guidance Counselor Position 69,000  

1.0 FTE Elementary Teacher Position 65,000  

1.0 FTE Speech Teacher - Revise Funding 93,000  

1.0 FTE Special Ed Teacher to two .50 FTE 2,000  

Teacher Leadership Structure Changes 13,572  

MS Library Paraprofessional 7 hrs to 5 hrs 6,800  

Elementary Classroom Paraprofessionals 10.5 hrs 29,500  

HS Receptionist Position 4.5 hrs 14,200  

Copy Center Budget Reduction 10,000  

Custodial Overtime Reduction 25,000  

District Level Budget Reduction 15,430  

School Site Budget Reduction 17,429  

Total Expenditure Reductions   526,331

Proposed Expenditure Additions:    

Two 3.5 hr MS Science Paraprofessional 20,000  

.50 FTE Teacher Position to Fund 27 39,500  

Total Expenditure Additions   59,500

Proposed Revenue Additions:    

Increased School Fees 21,800  

Open Enrollment Additional Revenue 257,000  

Total Revenue Additions   278,800

Variance   (74,930)

School District of South Milwaukee

2007-08 Budget Assumptions

September 5, 2007 Adjustment Reconciliation

Description Increase/(Decrease) Totals

February 21, 2007 - Approved Variance   (74,930)

Transfer of Service (14,910)  

Teacher Leadership Structure Changes (2,088)  

Interest Earnings 75,000  

Utilities 75,810  

District Insurance 39,750  

Associate Principal Change (18,350)  

SAGE Aid (57,679)  

Handicap Aid 21,646  

Total Adjustments   119,179

Adjusted Variance   44,249

THE BIG PICTURE2006-07   2007-08 Inc/(Dec)

1. TOTAL NET BUDGET $ 34,008,000 $ 34,902,470 $ 894,470

2. THE TOTAL TAX LEVY FUND EXPENDITURE BUDGETS ARE INCREASING 2.05 %

2006-07 2007-08 $ Inc/(Dec)

% Inc/(Dec)

GENERAL FUND $ 32,258,180 $ 32,885,707 $ 627,527 1.95%

DEBT SERVICE $ 4,559,224 * $ 4,589,972 $ 30,748 0.67%

COMMUNITY SERVICE $ 808,777   $ 920,250 $ 111,473 13.78%

TOTAL $ 37,626,181 $ 38,395,929 $ 769,748 2.05%

3. THE TOTAL PROPERTY TAX LEVY IS INCREASING BY 3.14 %

2006-07 2007-08 $ Inc/(Dec)

% Inc/(Dec)

GENERAL FUND $ 7,015,557 $ 7,370,551 $ 354,994 5.06%

DEBT SERVICE $ 4,178,019 $ 4,191,582 $ 13,563 0.32%

COMMUNITY SERVICE $ 525,420   $ 525,420 $ - 0.00%

TOTAL $ 11,718,996 $ 12,087,553 $ 368,557 3.14%

* Less refinancing entry as required by DPI

1. Salaries $ 946,223 2. Fringe Benefits $420,904 3. Purchased Services ($365,046) 4. Supplies and Equipment ($117,957) 5. Debt Retirement $24,844 6. District Insurance ($39,465) 7. Other Misc. (Debt, Fees, Etc.) ($32,218) 8. Interfund Transfers $57,185 TOTAL EXPENDITURE INCREASE $894,470

TOTAL Costs $34,008,000 $34,902,470 + $894,470 (Fund 10 & 27) 2.6%

2007 Actual 2008 Proposed Inc/(Dec)

2007-08 BUDGET INCREASE SUMMARY

Mill Rate Comparison(2006-07)

AREA SCHOOL DISTRICT'S 2006-07 Mill Rate Comparison

10.73

10.039.65 9.53

8.388.13

6.91

-

2.00

4.00

6.00

8.00

10.00

12.00

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District

Mill

Ra

te

SCHOOL DISTRICT OF SOUTH MILWAUKEE1993-2007 Mill Rate History

$17.53

$15.98$15.38

$11.71$10.80

$9.85 $10.24 $10.33$9.67

$10.82 $10.36 $10.39$9.73 $9.65 $9.57

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

19

93

-94

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

Pro

po

sed

Mill Rate History

1993-2006 Tax Levy History

(All Funds)

SCHOOL DISTRICT OF SOUTH MILWAUKEE 1993-2006 Tax Levy History (All Funds)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

REVENUE BUDGET SUMMARYFUND 10 & 27

Federal4%

Property Taxes21%

Open Enroll/Tuition

4%

Other2%

State69%

2007-08 REVENUE SOURCES

  State$23,798,0

42

  Property Taxes$7,370,55

1

 Open Enroll/Tuition

$1,463,740

  Other $809,494

  Federal$1,460,64

3

$34,902,470

EXPENDITURE BUDGET SUMMARY

Fund 10 & 27

District Insurance0.9%

Capital Objects1.0%

Interfund Transfers1.0%

Debt Retirement/Oth.

0.8%

Supplies/Equip3.6%

Purchased Svcs.7.9%

Salaries59.0%

Benefits25.9%

2007-2008 Expenses by Object

  Salaries$20,580,7

10

  Benefits$9,028,00

7

  Purchased Svcs.$2,746,07

4

  Supplies/Equip$1,253,09

7

  Capital Objects $360,598

  District Insurance $314,850

  Interfund Transfers $338,925

  Debt Retirement/Other $280,209

$34,902,470

84.9%

FTE Teachers Administrators Support Aides Clerical Custodial Building Service Total

2006-07 Total FTE 240.58 16.00 15.00 31.71 23.46 19.00 16.19 361.94

% of Total FTE 66.5% 4.4% 4.1% 8.8% 6.5% 5.2% 4.5% 100.0%

Changes for 2007-08:Reduced -4.66 0 -1.00 -1.79 -0.46 0 0Increased 1.00 1.00 0 1.00 0 0 0% of Staff Group Change -1.5% 6.3% -6.7% -2.5% -2.0% 0.0% 0.0% -6.4%

Approved 2007-08 FTE's 236.92 17.00 14.00 30.92 23.00 19.00 16.19 357.03

% of Total FTE's 66.4% 4.8% 3.9% 8.7% 6.4% 5.3% 4.5% 100.0%

NOTE: FTE (Full-time Equivalent) for each staff group is defined as follows:Teachers: Based on contract %; 100% contract =192 paid days/7 hour standard work day.Administrators: Based on contract %; 100% contract for Elem Principal=210 days, MS/HS Associate Principal=230 days and Others=260 daysSupport: Based on contract %; Nurse/OT/PT=192, FS=202, STW=211 and Others=260Aides: 100% FTE (1)=1288 hours per year (184 days * 7 hours/day)Clerical: 100% FTE (1)=1971 hours per year (260 days * 7.58 hours/day)Custodial: 100% FTE (1)=2080 hours per year (260 days * 8 hours/day)Building Service: 100% FTE (1)=1800 hours per year (225 days * 8 hours/day)

Staff assigned and funded from Community Services (Recreation Department - Fund 80) are not included.

SCHOOL DISTRICT OF SOUTH MILWAUKEE STAFFING SUMMARY

SUMMARY

Budget reductions made primarily due to revenue limits and declining

enrollments

Projected mill rate of $9.57 – remains lower than 2006-07

Budget will change after 3rd Friday enrollment count, final certification of state aid and property valuation

Rising costs of insurance and utility costs will continue even with controls

Future state legislation uncertain

2008-09 will likely see another year of reductions

Questions&

Answers

SOUTH MILWAUKEE SCHOOL DISTRICT

September 5, 2007 7:00 p.m.

AGENDA FOR PUBLIC HEARING

I. Explanation of Dual Meeting and Opening Remarks A. Introduction of School Board and Selected

Staff Members B. Introduction of Legal Counsel and

Parliamentarian II. Presentation of Treasurer’s Report III. Opportunity for Public Comments on the Proposed

Budget IV. Closing Remarks and Adjournment

AGENDA FOR ANNUAL MEETING I. Call to Order II. Explanation of Ground Rules III. Elect Chairperson IV. Approve Agenda V. Approval of Previous Minutes VI. Adoption of Resolution on Tax Levy VII. Old Business VIII. New Business IX. Adjournment