Budget PresentationBudget Presentation2014 School Year 2014 School Year

Jereamy RoseJereamy Rose

May 22, 2013May 22, 2013

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District Vision/MissionDistrict Vision/Mission

• Vision Statement-The vision of the Willow Run Community Schools is to prepare students to excel in a global society.

• Mission Statement-To empower ALL students, whatever it takes, to become productive, responsible, educated citizens.

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Strategic Goals Strategic Goals

• Parents, students, staff, business, local Parents, students, staff, business, local universities, and administration were members of universities, and administration were members of the committee that identified the priorities for the committee that identified the priorities for funding for the upcoming fiscal year based on the funding for the upcoming fiscal year based on the district strategic plan. Sub committees were district strategic plan. Sub committees were formed to identify specific department priorities . formed to identify specific department priorities .

• Sub Committees/Priorities- Special Education, Sub Committees/Priorities- Special Education, Teaching, Transportation, cradle to career Teaching, Transportation, cradle to career education, anytime/anywhere/any place, Increase education, anytime/anywhere/any place, Increase enrollment. enrollment.

• Priorities given to departments.Priorities given to departments. 33

Budget Timeline Budget Timeline • January 2013:January 2013: Strategic planning committee presents priorities. Strategic planning committee presents priorities.

Building administrators and Central office personal obtain Building administrators and Central office personal obtain documents regarding budget and trends (enrollment and economic) documents regarding budget and trends (enrollment and economic)

• February 2013:February 2013: Building administrators meet with CFO to begin Building administrators meet with CFO to begin budget discussion and assign dates, duties and to present the budget discussion and assign dates, duties and to present the process.process.

• March 2013:March 2013: Building Administers meet with building departments to Building Administers meet with building departments to create wants and needs list related to the school strategic plan. create wants and needs list related to the school strategic plan. Each building submits the plans to the district department Each building submits the plans to the district department head/director. head/director.

• March 2013:March 2013: All District departments meet with the superintendent All District departments meet with the superintendent and CFO for wants and needs presentations (based on individual and CFO for wants and needs presentations (based on individual buildings and overall needs and wants). buildings and overall needs and wants).

• April 2013:April 2013: Superintendent and CFO develop budget proposal Superintendent and CFO develop budget proposal• April 2013: April 2013: Superintendent and CFO present budget proposal to the Superintendent and CFO present budget proposal to the

boardboard• May 2013:May 2013: Budget Proposal modified by CFO and Superintendent Budget Proposal modified by CFO and Superintendent

(based on Board Recommendations). (based on Board Recommendations). • June 2013:June 2013: CFO and Superintendent present finalized version of the CFO and Superintendent present finalized version of the

budget. Budget Proposal adopted by Board of Educationbudget. Budget Proposal adopted by Board of Education

General Fund previous school General Fund previous school year 2011-2012year 2011-2012

• Revenues- Revenues- $20,545,538$20,545,538

• Expenditures- Expenditures- $21,307,696$21,307,696

• Deficit- Deficit- $762,158$762,158

General Fund previous school General Fund previous school year 2012-2013year 2012-2013

• Revenues- Revenues- $18,754,479$18,754,479

• Expenditures -Expenditures -$18,741,992$18,741,992

• $12,487$12,487

Sale price (decrease in property Sale price (decrease in property tax revenue) tax revenue)

Real estate Trends Real estate Trends

1.7% property tax ($2689 1.7% property tax ($2689 average)average)

Taxable income decline Taxable income decline

Trends Graph population Trends Graph population decline, jobs, etc. Charter decline, jobs, etc. Charter schoolsschools• Most manufacturing jobs lost since 2000,

(400,000) and 860,400 jobs overall (including 64-78% of all auto manufacturing jobs).

• Ypsilanti population trends 2000 38,746,

• 2010-17,593

21,153

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Enrollment Enrollment

Enrollment Trends Enrollment Trends

• 2009-17172009-1717

• 2010- 1671 (2010- 1671 (46 drop46 drop))

• 2011- 1674 (2011- 1674 (3 3 increaseincrease) )

• 2012- 1509 (2012- 1509 (165 drop165 drop))

• 2013 projection-2013 projection- (1408) (1408) or -101=or -101=

• 46+165/3= 10146+165/3= 101

0

200

400

600

800

1000

1200

1400

1600

1800

2009 2011 2013

Enrollment 3-D Column 23-D Column 3

Variable 1- Enrollment Variable 1- Enrollment Decline Decline • 2012/13 Student Enrollment = 2012/13 Student Enrollment = 1509 1509 • 2013/14 Student Enrollment= 2013/14 Student Enrollment= 14081408 • 11% Decline per previous year trend 11% Decline per previous year trend

projections and enrollment applications = projections and enrollment applications = 165165

• State Aid Per Pupil = $6966State Aid Per Pupil = $6966

• 101 Students x 6966 = $101 Students x 6966 = $703,566703,566

• Total Declining Enrollment 2013-2014 = Total Declining Enrollment 2013-2014 = $703,566$703,566

Variable 2- State Aid Variable 2- State Aid ReductionReduction• 2012/13 Student Enrollment = 1509 2012/13 Student Enrollment = 1509 • 2013/14 Student Enrollment= 2013/14 Student Enrollment= 14081408 • Decline per previous year trend projections and enrollment Decline per previous year trend projections and enrollment

applications = 101applications = 101• State Aid Per Pupil Reduction = $6966 to $6900State Aid Per Pupil Reduction = $6966 to $6900(-$66)(-$66)

• 101 Students x 6966 = $703,566101 Students x 6966 = $703,566• 1408*661408*66=+_$92,928=+_$92,928 • Total Declining Enrollment 2013-2014Total Declining Enrollment 2013-2014 796,494796,494

–

Variable 3- State Retirement Variable 3- State Retirement Rate Rate

• Total expenditures $18,741,998Total expenditures $18,741,998

• *.85*.85

• $15,930,698$15,930,698

• $15,930,698$15,930,698

• *.005 (retirement rate)*.005 (retirement rate)

• $79,653 (total retirement rate $79,653 (total retirement rate change)change)

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2013/2014 General fund2013/2014 General fund

• total deficit $796,494 (per pupil total deficit $796,494 (per pupil funding)funding)

• +$79,653 +$79,653 (retirement) (retirement)

• $876,147$876,147

• $876,147$876,147

• --$12,487$12,487 (fund balance) (fund balance)

• $863,660$863,660

General Fund 2013-2014General Fund 2013-2014

• Total Revenues 2012-2013Total Revenues 2012-2013 $18,754,479 $18,754,479• Total 101 Student Decline Decline FA ($66/pupil)Total 101 Student Decline Decline FA ($66/pupil) --$$796,494796,494 • Total Revenue 2013-2014Total Revenue 2013-2014 $17,957,985 $17,957,985

• Total Expenditures 2012-2013Total Expenditures 2012-2013 $18,741,992$18,741,992• .005% Retirement Increase.005% Retirement Increase +$79,653 +$79,653 • Total Expenditures 2013-2014 $18,821,645Total Expenditures 2013-2014 $18,821,645

• Total Revenues $17,957,985$17,957,985• Total Expenditures Total Expenditures -$18,821,645-$18,821,645• Total Deficit Total Deficit $863,660$863,660•

Budget Reduction ProposalBudget Reduction Proposal

• To balance the budget the strategic To balance the budget the strategic planning committee along side the CFO planning committee along side the CFO and the superintendant propose a plan to and the superintendant propose a plan to reduce expenditures and generate reduce expenditures and generate revenue using a collaborative revenue using a collaborative opportunities and trend based decision opportunities and trend based decision making related to the strategic making related to the strategic plan/priorities. The committee agreed plan/priorities. The committee agreed that we need to utilize resources with the that we need to utilize resources with the least amount of negative impact on least amount of negative impact on services. services.

Budget Proposal Budget Proposal

• Close Building Close Building • Staff attrition (retirement)Staff attrition (retirement)• Shared Special Eduction director and Shared Special Eduction director and

School Psychologist School Psychologist • Marketing campaign including school Marketing campaign including school

bus advertisements, websites, and bus advertisements, websites, and buildings. buildings.

• Lease the building that has been closedLease the building that has been closed• District developed virtual schoolDistrict developed virtual school• Aviation Charter SchoolAviation Charter School

Expenditure Reduction Expenditure Reduction

• Close Building Close Building

• Staff attrition (retirement)Staff attrition (retirement)

• Shared Special Eduction Director and Shared Special Eduction Director and School Psychologist School Psychologist

Close BuildingClose Building

• Rationale- Because of the enrollment trends, a decision has been Rationale- Because of the enrollment trends, a decision has been made to close the Primary Learning Center which houses the made to close the Primary Learning Center which houses the kindergarten – 1kindergarten – 1stst graders. They are projected to house 173 graders. They are projected to house 173 students (2014). The students and staff will be moved to The students (2014). The students and staff will be moved to The Elementary Learning Center which currently has a capacity of 344 Elementary Learning Center which currently has a capacity of 344 students. The building capacity is 580 students. students. The building capacity is 580 students.

• Savings for the districtSavings for the district=$64,624=$64,624– Water and sewage- $8003Water and sewage- $8003

– Telephone service- $4652Telephone service- $4652

– Snow removal- $4500Snow removal- $4500

– Insurance cost- $3865Insurance cost- $3865

– Heat/natural gas- $10,389Heat/natural gas- $10,389

– Electrical cost- $19,493Electrical cost- $19,493

– Miscellaneous- $13,722Miscellaneous- $13,722

Staff Attrition (retirement) Staff Attrition (retirement)

• Rationale- There will be a total of 5 staff members retiring in 2013. 3 staff Rationale- There will be a total of 5 staff members retiring in 2013. 3 staff from the high school (two counselors, 1 teacher). 2 elementary teachers, from the high school (two counselors, 1 teacher). 2 elementary teachers, and 1 middle school teacher. and 1 middle school teacher.

• Counselor roles absorbed by The social workers and Dean/Assistant Counselor roles absorbed by The social workers and Dean/Assistant Principal. Principal.

• High school teacher (social studies), elementary teachers, middle school High school teacher (social studies), elementary teachers, middle school teacher (Art). Class size permits reducing the number of classes (teachers) teacher (Art). Class size permits reducing the number of classes (teachers) needed. This action does not affect instruction and fits within the needed. This action does not affect instruction and fits within the contractual and state mandated classroom size. contractual and state mandated classroom size.

• Savings for the district= Savings for the district= $516,060$516,060 (*Total cost per staff member $103,212 (*Total cost per staff member $103,212 x 5)x 5)

• *includes Salary, retirement, insurance, FICA*includes Salary, retirement, insurance, FICA

Shared Special Education Shared Special Education Director and School Director and School Psychologist Psychologist • RationaleRationale- I am proposing two collaborations for a reduction of - I am proposing two collaborations for a reduction of

expenditures. The Special Education supervisor position will be shared expenditures. The Special Education supervisor position will be shared with the ISD. We will continue to pay for the salary of the position but with the ISD. We will continue to pay for the salary of the position but we will not be required to pay for the total benefits package of the we will not be required to pay for the total benefits package of the position. The School Psychologist positions will change. We are reducing position. The School Psychologist positions will change. We are reducing the number of school fulltime staffed school psychologist from 2-1. We the number of school fulltime staffed school psychologist from 2-1. We will continue to have a 1 fulltime school psychologist but will continue to have a 1 fulltime school psychologist but will collaborate with the ISD for another school psychologist. This will collaborate with the ISD for another school psychologist. This position is not a layoff, the current employee obtained a position with position is not a layoff, the current employee obtained a position with Ann Arbor Public Schools. We were willing to make this a layoff if need Ann Arbor Public Schools. We were willing to make this a layoff if need be but the situation did not require it. be but the situation did not require it. 

• Savings - $122,835 (total compensation Special Education Savings - $122,835 (total compensation Special Education Supervisor) Supervisor)

• $-78,680$-78,680 (salary) (salary)• $44,155$44,155• $72.418 (total compensation School $72.418 (total compensation School

Psychologist)Psychologist)• -$48,548-$48,548 (salary) (salary)• $23,870$23,870 • Total Savings $44,155+$23,287Total Savings $44,155+$23,287=$98,025=$98,025

Increased Revenue Increased Revenue

• Advertise on buildings, buses, Advertise on buildings, buses, website, etc. website, etc.

• Lease building that has been closedLease building that has been closed

• Online learning (District owned)Online learning (District owned)

• Aviation Charter SchoolAviation Charter School

MarketingMarketing

• Rationale- to increase revenue the district Rationale- to increase revenue the district will contract with Steep Creek Media to will contract with Steep Creek Media to advertise on the school bus fleet in advertise on the school bus fleet in compliance with state and federal safety compliance with state and federal safety regulations. regulations.

• Revenue= Revenue= $86,184$86,184– $171-$1050 per month (depending on the size $171-$1050 per month (depending on the size

of the advertisement) of the advertisement) – Total fleet 20Total fleet 20– Possible $41,040-$252,000 (-company’s 30%)- Possible $41,040-$252,000 (-company’s 30%)-

$28,740-$176,400. $28,740-$176,400. – Actual amount of per companies/advertising Actual amount of per companies/advertising

interested in a contract- $123,120-interested in a contract- $123,120-$36,936=$86,184$36,936=$86,184

Building LeaseBuilding Lease

• Rationale-Rationale- We have chosen to close one of our We have chosen to close one of our elementary schools based on our enrollment trends and the elementary schools based on our enrollment trends and the capacity of the other elementary school. This will not affect capacity of the other elementary school. This will not affect services to students or staff employment because the other services to students or staff employment because the other

building is not functioning at full capacity.building is not functioning at full capacity. We have already We have already acquired 2 bids (Local Church, Private non profit social acquired 2 bids (Local Church, Private non profit social

services) for the leasing of the school building.services) for the leasing of the school building. The lease The lease agreements will include limited modifications to the agreements will include limited modifications to the

structure with the lessee responsible for all remodeling. structure with the lessee responsible for all remodeling.

• Savings- $5550 (monthly)Savings- $5550 (monthly)

• x12x12

• $66,600$66,600

Open Aviation Charter Open Aviation Charter SchoolSchool• Willow Run is going to Willow Run is going to

open a 9-12 charter open a 9-12 charter school based in the school based in the steep history of steep history of aviation within the city. aviation within the city.

• The school will be a The school will be a blended format (online, blended format (online, classroom, internship classroom, internship based). based).

• The school will open in The school will open in 2013 with three grade 2013 with three grade levels (9-11). levels (9-11).

• There has been over There has been over 127 applications 127 applications already submitted to already submitted to the school.the school.

• Earn college credit through Earn college credit through Eastern Michigan aviation Eastern Michigan aviation program and WCC. program and WCC.

• Internship opportunitiesInternship opportunities• If the students complete the If the students complete the

program that will work in program that will work in conjunction with Willow Run conjunction with Willow Run Airport, they will earn private Airport, they will earn private and recreational license (age and recreational license (age 17) according to FAA 17) according to FAA standards. In addition, they can standards. In addition, they can earn Dispatch, flight technology earn Dispatch, flight technology and mechanics preliminary and mechanics preliminary certification (prerequisite certification (prerequisite courses).courses).

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Charter School Operational Charter School Operational NeedsNeeds• Staff- English/social studies, Staff- English/social studies,

math/science, Art/foreign math/science, Art/foreign language (teaches 1 group one language (teaches 1 group one day and alternates the next day day and alternates the next day with online sessions in between) with online sessions in between) cuts staffing cost. duel cuts staffing cost. duel enrollment, flight instructors, enrollment, flight instructors, internships (elective hours). Math internships (elective hours). Math courses based on PC can be courses based on PC can be substituted with mechanics, substituted with mechanics, technology, and engineering. technology, and engineering.

• Per Pupil funding $6900*100= Per Pupil funding $6900*100= $690,000$690,000

• Staff Cost $69,639*3=$208,917 Staff Cost $69,639*3=$208,917 (Total Compensation salary and (Total Compensation salary and benefits) benefits)

• Flight instruction $per hour 85= Flight instruction $per hour 85= $76,500$76,500

• Duel enrollment WCC 575 (6 Duel enrollment WCC 575 (6 credit hours) 40 (upper classmen) credit hours) 40 (upper classmen) students=$23,000students=$23,000

• $100,000 start up grant$100,000 start up grant

• $690,000$690,000 ++$100,000$100,000 $790,000$790,000 -$208,917-$208,917 -$76,500-$76,500 -$23,000 -$23,000 $481,583$481,583• Future projections will Future projections will

change based on change based on enrollment, in and out of enrollment, in and out of state students, and possible state students, and possible

residential programming.residential programming.

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Create distant learning Create distant learning programprogram•

• Willow Run virtual school will create programming Willow Run virtual school will create programming with the highering of a online course creator, a with the highering of a online course creator, a technology professional, and master teacherstechnology professional, and master teachers

• Teachers will receive stipends for 1 year. As the Teachers will receive stipends for 1 year. As the school size grows more courses will be added. school size grows more courses will be added.

• Each course will have 1 teacher per subject area Each course will have 1 teacher per subject area that has accountability and responsibility for the that has accountability and responsibility for the 125-200 students on their caseload. 125-200 students on their caseload.

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Courses offered Courses offered

• Math- AlgebraI-II, Geometry, Accounting, Business Math- AlgebraI-II, Geometry, Accounting, Business and budgeting. and budgeting.

• Science- Biology, Chemistry, Physics, Science- Biology, Chemistry, Physics, enviromental scienceenviromental science

• Social Studies- World and American, Economics, Social Studies- World and American, Economics, Government, Psychology, and Sociology. Government, Psychology, and Sociology.

• Language arts- College Writing, Research and Language arts- College Writing, Research and analasis, English1-4analasis, English1-4

• Computer science- ? Computer science- ?

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Structure and budget Structure and budget

• Programming Cost Programming Cost (technology staff member, (technology staff member, program development) program development) $169,639$169,639– Technology Staff member Technology Staff member

$79,639$79,639– Master teacher stipends 5 Master teacher stipends 5

at $12,000 each ($60,000)at $12,000 each ($60,000)– Software/hardware $50,000Software/hardware $50,000

• Teacher (5) Cost Teacher (5) Cost $69,639*5=$348,195$69,639*5=$348,195– As enrollment increases As enrollment increases

profits will because teacher profits will because teacher student ration is much student ration is much higher (180-270)higher (180-270)

• Number of applicants 140 Number of applicants 140 (115) (115) $6900*115=$793,500$6900*115=$793,500

$793,500$793,500 $189,639 (start up cost)$189,639 (start up cost)-$348,195 -$348,195 (teacher cost)(teacher cost)$255,666$255,666

2014/15 There will be start up 2014/15 There will be start up cost for teacher cost for teacher stipends($60,000) and stipends($60,000) and increases in enrollment will not increases in enrollment will not affect hiring of new teachers affect hiring of new teachers unless we reach staff/student unless we reach staff/student

ratio. ratio.

Review expenditures and Review expenditures and revenue revenue • Reduced Expenditures Reduced Expenditures

– Staff attrition- $516,060Staff attrition- $516,060

– Close building- $64,624Close building- $64,624

– Staff Collaboration- +Staff Collaboration- +$98,025$98,025

– Total savingsTotal savings $687,709$687,709

• Increased RevenueIncreased Revenue

– Marketing- $86,184Marketing- $86,184

– Building Lease- $66,600Building Lease- $66,600

– Online Learning- $255,266Online Learning- $255,266

– Aviation Academy- +Aviation Academy- +$481,583 $481,583

– $889,633$889,633

– Total savings 2014- Total savings 2014- $1,577,342$1,577,342

$687,709+$789,633$1,477,342

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Budget balanced Budget balanced

• Total Revenues $17,957,985Total Revenues $17,957,985

• Total Expenditures Total Expenditures -$18,821,645-$18,821,645– Beginning Deficit Beginning Deficit $863,660 $863,660

$ + $ +$1,577,342$1,577,342

– Fund balance Fund balance $713,682$713,682

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References References

• MDE Charter Schools Grant and start up information. MDE Charter Schools Grant and start up information. http://www.michigan.gov/mde/0,1607,7-140-6530_30334_40088---,00.htmlhttp://www.michigan.gov/mde/0,1607,7-140-6530_30334_40088---,00.html

• National Resource Center For Charter Schools (2009). Charter School Cost Estimation Tool retrieved on National Resource Center For Charter Schools (2009). Charter School Cost Estimation Tool retrieved on April 15April 15thth, 2013 from: , 2013 from: http://www.charterresource.org/files/TFPCostEstimationTool.pdfhttp://www.charterresource.org/files/TFPCostEstimationTool.pdf

• Florida Department Of Education (2012). How To Start Up a Charter School. Retrieved on April 15Florida Department Of Education (2012). How To Start Up a Charter School. Retrieved on April 15thth, , 2013 from: 2013 from: http://www.floridaschoolchoice.org/information/charter_schools/files/How_to_Start_Charter_School_in_http://www.floridaschoolchoice.org/information/charter_schools/files/How_to_Start_Charter_School_in_Florida.pdfFlorida.pdf

• Ypsilaniti unemployment rates http://www.homefacts.com/unemployment/Michigan/Washtenaw-Ypsilaniti unemployment rates http://www.homefacts.com/unemployment/Michigan/Washtenaw-County/Ypsilanti.html County/Ypsilanti.html

• Ypsilanti City TrendsTrends http://www.ewashtenaw.org/about/quick_facts.html Ypsilanti City TrendsTrends http://www.ewashtenaw.org/about/quick_facts.html http://www.bouma.com/ypsilanti-quickfacts.php http://www.city-data.com/zipmaps/Ypsilanti-http://www.bouma.com/ypsilanti-quickfacts.php http://www.city-data.com/zipmaps/Ypsilanti-Michigan.html#48198 Michigan.html#48198

• Steep Creak Media (n.d.) School Advertisement. Retreived on April 22, 2013 from: Steep Creak Media (n.d.) School Advertisement. Retreived on April 22, 2013 from: http://steepcreekmedia.com/pricing.html http://steepcreekmedia.com/pricing.html

• K12 (n.d.). Online Public Schools. Retrieved on May 5, 2013 from: http://www.k12.com/schools-K12 (n.d.). Online Public Schools. Retrieved on May 5, 2013 from: http://www.k12.com/schools-programs/online-public-schools/#.UZDlOSJiqSo programs/online-public-schools/#.UZDlOSJiqSo

• Florida Virtual School (n.d.). How Does Florida Virtual School Work? Retrieved on May 5, 2013 from: Florida Virtual School (n.d.). How Does Florida Virtual School Work? Retrieved on May 5, 2013 from: http://flvs.net/Pages/default.aspx http://flvs.net/Pages/default.aspx

• Palm Beach County School District (n.d.) Business partnerships. Retrieved on May 1, 2013 from: Palm Beach County School District (n.d.) Business partnerships. Retrieved on May 1, 2013 from: http://www.palmbeachschools.org/Community/AboutUs.asp http://www.palmbeachschools.org/Community/AboutUs.asp

• Willow Run Community Schools (n.d.). Building use and rentals. Retrieved on May 1, 2013 from: Willow Run Community Schools (n.d.). Building use and rentals. Retrieved on May 1, 2013 from: http://wrcs.k12.mi.us/District/DistrictMain.htmlhttp://wrcs.k12.mi.us/District/DistrictMain.html

• Willow Run Community Schools (n.d.). Strategic Plan. Retrieved on May 1, 2013 from: Willow Run Community Schools (n.d.). Strategic Plan. Retrieved on May 1, 2013 from: http://wrcs.k12.mi.us/District/DistrictMain.html http://wrcs.k12.mi.us/District/DistrictMain.html

• Willow Run Community Schools (n.d.). School Budget. Retrieved on May 1, 2013 from: Willow Run Community Schools (n.d.). School Budget. Retrieved on May 1, 2013 from: http://wrcs.k12.mi.us/District/DistrictMain.html http://wrcs.k12.mi.us/District/DistrictMain.html

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Questions Questions

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