WELCOME TO THE 2008-09 BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF

WELCOMETO THE 2008-09

BUDGET HEARINGAND

ANNUAL MEETING

OF THE

SCHOOL DISTRICT OF

SOUTH MILWAUKEE

SOUTH MILWAUKEE SCHOOL DISTRICT

September 3, 2008 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

A. Academic Progress Report IX. Adjournment

THE 2008-09 SCHOOL YEAR

Continue work to improve academic achievement through high standards and rigorous curriculum.

$713,277 in reductions - the gap between revenues and expenditures.

Estimated mill rate of $9.47 using an estimated equalized valuation increase of 6%. The average over the last three years has been 8%. The final valuation will be received in October and the mill rate will be finalized at that time.

If the equalized values come in above the 6% estimate, the mill rate will decrease.If the equalized values come in below the 6% estimate, the mill rate will increase.

WHY $713,277 IN REDUCTIONS?

(The Gap Between Revenues & Expenditures)

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

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 2009-10 school year.

Continue review of long-term financial and budget planning.

2008-09 REDUCTION SUMMARY

The $713,277 gap between revenue and expenditures was addressed as follows:

Staff reductions and department restructuring.

Grant funding changes.

Utility and custodial overtime transfers to Fund 80.

Retirement and resignation savings.

Budget reductions in supplies, equipment and travel for all schools and departments.

Use of 2007-08 declining enrollment exemption change.

Description Amount Totals

Initial Revenue Assumptions:    

Revenue Cap Increase 522,552  

Special Education Aid Increase 29,420  

Total Revenue Increase   551,972

Initial Expenditure Assumptions:    

Salary/Benefits/Lane Movement/Retiree Health (1,205,916)  

Utilities (43,590)  

District Insurance (15,743)  

Total Expenditure Increase (1,265,249

)

Total Budget Adjustment   (713,277)

2008-09 Budget AssumptionsFebruary 27, 2008 - APPROVED

2008-09 Budget Assumptions February 27, 2008 – APPROVED

(continued)

Description Amount Totals

Proposed Expenditure Reductions:    

1.0 FTE HS Family & Consumer Ed Position 62,600  

1.0 FTE HS Art Position 66,650  

1.0 FTE HS Business Education Position 52,490  

.33 FTE HS English Position 28,880  

1.0 FTE Band Teacher Position 64,620  

1.0 Elementary Teacher Position 62,600  

.80 FTE Speech & Language Teacher Position (no $ impact) 0  

Eliminate Additional Days for Technology Integration 5,665  

Revise Title 1 Funding and Duties 10,250  

Reduce two 2.5 Hour/Day MS Classroom Aide Positions 14,280  

Reduce one 6 Hour/Day High School PASS Aide Position 18,250  

Remove Additional Staff from HS Swim Unit 5,075  

Reduce/Restructure Business Office Staff 27,950  

Reduce one 6 Hour/Day MS At-Risk Aide Position (no $ impact) 0  

Reduce Secretarial Overtime Budget 12,000  

Reduce Various Fund 10 Budgets 60,247  

Transfer Custodial/Supply/Utility Costs to Fund 80  10,995

Reduce Staffing Costs due to Retirements/Resignations  110,000  

Reduce IMC Equipment Budget 3,000  

Potential Savings from Dental/Life/LTD Employee Ins Change 25,000  

 Total Budget Reductions    640,552

2008-09 Budget AssumptionsFebruary 27, 2008 – APPROVED

(continued)

Description Amount Totals

Total Budget Adjustment (from prior slide) (713,277)

Total Budget Reductions (from prior slide) 640,552

Prior Year Revenue not Expended:  

Use of 2007-08 Declining Enrollment Exemption  93,300  

Total Use of Fund Balance 93,300

Budget Additions:

Increase Substitute Rate of Pay (25,000)

Increase Substitute Paraprofessional Aide Rate of Pay (5,000)  

Revise Luther Faculty Secretary 1 Hour and Remove Cashier Duties (4,380)

Total Budget Additions (34,380)

Variance (13,805)

Description Amount Totals

February 27, 2008 - Approved Variance   (13,805)

Per Pupil Increase from $270 to $274.68 14,649  

Transfer of Service 37,022  

Special Education Aid (13,338)  

Potential Savings from Dental/Life/LTD Employee Insurance Change (25,000)  

Interest Revenue (15,000)  

Open Enrollment Net In/Out Net Regular 126,147  

Open Enrollment Net In/Out SPED (56,608)  

Teacher .10 FTE Increase (Spanish) (7,252)  

Teacher .33 FTE Increase (Math/Science Overloads) (13,000)  

Aide 12 hours/week Increase (Blakewood EC) (7,382)  

Teacher .33 FTE Increase (High School Spanish Overload) (13,000)

Teacher .17 FTE Increase (High School Science Overload) (6,500)

 Aide 3 hours/week Increase (Blakewood 5th Grade)  (1,827)  

Total Adjustments   18,910

Adjusted Variance   5,105

Continue to Monitor:    

Staffing Costs due to Retirements/Resignations    

Blakewood 5th Grade Class (transfer current aide and inc hrs from 17 to 20)    

Lakeview 5k and 1st Grade    

Occupational Therapy FTE    

2008-09 Budget AssumptionsSeptember 3, 2008 - RECONCILIATION

THE BIG PICTURE

1. TOTAL FUND 10 & 27 NET BUDGET

2007-08 2008-09 $ Inc/(Dec) % Inc/(Dec)

$ 34,763,264 $ 35,690,855 $ 927,591 2.7%

2. THE TOTAL TAX LEVY FUND EXPENDITURE BUDGETS ARE INCREASING 2.9 %

2007-08 2008-09 $ Inc/(Dec) % Inc/(Dec)

GENERAL FUND $ 32,807,152 $ 33,695,709 $ 888,557 2.71%

DEBT SERVICE $ 4,590,335 $ 4,656,417 $ 66,082 1.44%

COMMUNITY SERVICE $ 878,521 $ 1,039,717 $ 161,196 18.35%

TOTAL $ 38,276,008 $ 39,391,843 $ 1,115,835 2.9%

3. THE TOTAL PROPERTY TAX LEVY IS INCREASING BY 6.6%

2007-08 2008-09 $ Inc/(Dec) % Inc/(Dec)

GENERAL FUND $ 7,702,460 $ 8,433,495 $ 731,035 9.49%

DEBT SERVICE $ 4,191,582 $ 4,242,032 $ 50,450 1.20%

COMMUNITY SERVICE $ 525,420 $ 561,768 $ 36,348 6.92%

TOTAL $ 12,419,462 $ 13,237,295 $ 817,833 6.6%

1. Salaries $773,731 2. Benefits $423,183 3. Purchased Services $45,851 4. Supplies ($58,855) 5. Capital Objects ($302,612) 6. District Insurance $21,780 7. Interfund Transfers $13,954 8. Debt Retirement & Other $10,559 TOTAL EXPENDITURE INCREASE $927,591

TOTAL Costs $34,763,264 $35,690,855 + $927,591 (Fund 10 & 27) 2.7%

2007-08Unaudited

2008-09Proposed Inc/(Dec)

2008-09 Budget Increase Summary

AREA SCHOOL DISTRICT'S 2007-08 Mill Rate Comparison

11.2110.64 10.43

9.418.81

8.40

7.74

-

2.00

4.00

6.00

8.00

10.00

12.00

Gre

endale

Fra

nklin

Cudahy

South

Milw

aukee

Gre

enfield

West

Allis

Oak C

reek/F

ranklin

District

Mill R

ate

Mill Rate Comparison2007-08

SCHOOL DISTRICT OF SOUTH MILWAUKEE1993-94 to 2008-09 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$9.41 $9.47

$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

20

08

-09

Pro

po

sed

Mill Rate History

SCHOOL DISTRICT OF SOUTH MILWAUKEE 1993-94 to 2008-09 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

Tax Levy HistoryAll Funds

2008-09 REVENUE SOURCES

  State$23,372,429

  Property Taxes $8,969,485

  Open Enroll/Tuition $1,672,633

  Other $168,500

  Federal $1,414,508

$35,597,555

Federal4.0%

Property Taxes25.2%

Open Enroll/Tuition

4.7%

Other.4%

State65.7%

Revenue Budget SummaryFund 10 & 27

2008-09 Expenses by Object

  Salaries $21,000,526

  Benefits $9,402,145

  Purchased Svcs. $2,760,241

  Supplies $1,223,988

  Capital Objects $299,303

  District Insurance $322,325

  Interfund Transfers $348,925

  Debt Retirement/Other $333,402

Total $35,690,855

85.1%

Capital Objects0.8%

Interfund Transfers1.0%

Debt Retirement & Other0.9%

Supplies3.5%

Purchased Services7.8%

Salaries58.8%

Benefits26.3%

District Insurance0.9%

Expenditure Budget SummaryFund 10 & 27

Staffing Summary

2007-08 Total FTE

2008-09Reduced

2008-09Increased

Approved 2008-09 FTE's

Teachers 237.92 (6.63) 1.93 233.22

Admin 17.00 0.00 0.00 17.00

Support 14.40 (0.50) 0.20 14.10

Aides 30.21 (2.43) 1.86 29.64

Clerical 23.00 0.00 0.00 23.00

Custodial 19.00 0.00 0.00 19.00

BSH 16.19 0.00 0.00 16.19

Total 357.72 (9.56) 3.99 352.15

SUMMARY

Staff and expenditure reductions made primarily due to revenue limits and declining enrollments.

Projected mill rate of $9.47 – final adjustment in October 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.

2009-10 will likely see another year of reductions.

Questions&

Answers

SOUTH MILWAUKEE SCHOOL DISTRICT

September 3, 2008 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

A. Academic Progress Report IX. Adjournment