November 28, 2023 Budget Workshop

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Analyzing our financial outlook through September and October 2023, illustrating revenue and expenditure trends, fund balances, compliance with policies, and funds required for balance. Important details for planning the 2024 budget.


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November 28, 2023 Budget Workshop

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  1. November 28, 2023 Budget Workshop 1

  2. Budget Workshop Goals Provide an update on our finances Presentation of the 2024 Preliminary General Fund Budget 2

  3. Our Current Financial Outlook Based on Actuals Through September 30, 2023 Actual Actual Adopted Projected Projected Projected Year Ended 2021 Year Ended 2022 Year Ended 2023 Year Ended 2023 Year Ended 2024 Year Ended 2025 Total Revenues $633,263,128 $652,954,802 $668,529,106 $670,495,884 $684,253,960 $704,072,625 Total Expenditures $638,337,948 $656,174,842 $684,977,338 $678,741,294 $713,873,121 $732,615,728 Beginning Balance Operating Surplus/(Deficit) Ending Fund Balance Less Projected Reservations Less Committed Fund Balance Less Assigned Fund Balance Unassigned Fund Balance % Budgeted Expenditures $91,701,905 ($5,074,821) $86,627,084 ($4,131,698) $86,627,084 ($3,220,039) $83,407,045 ($2,500,000) $59,625,250 ($16,448,232) $43,177,018 ($2,500,000) $83,407,045 ($8,245,410) $75,161,635 ($2,500,000) $75,161,635 ($29,619,161) $45,542,474 ($2,500,000) $45,542,474 ($28,543,103) $16,999,371 ($2,500,000) $0 $0 $0 $0 $0 $0 (27,001,834) $55,493,552 8.69% (16,448,232) $64,458,813 9.82% (23,936,978) $16,740,040 2.44% (29,619,161) $43,042,474 6.34% ($28,543,103) $14,499,371 ($35,581,030) ($21,081,658) -2.88% 2.03% Minimum Fund Balance per Board Policy #721 $31,916,897 $32,808,742 $34,248,867 $33,937,065 $35,693,656 $36,630,786 Compliance with Fund Balance Policy Yes Yes No Yes No No Funds needed to comply with Fund Balance Policy ($23,576,654) ($31,650,071) $17,508,827 ($9,105,409) $21,194,285 $57,712,445 3

  4. Our Current Financial Outlook Based on Actuals Through October 31, 2023 Actual Actual Adopted Projected Projected Projected Year Ended 2021 Year Ended 2022 Year Ended 2023 Year Ended 2023 Year Ended 2024 Year Ended 2025 Total Revenues $633,263,128 $652,954,802 $668,529,106 $672,762,445 $686,829,261 $706,638,256 Total Expenditures $638,337,948 $656,174,842 $684,977,338 $678,334,422 $713,873,121 $732,634,839 Beginning Balance $91,701,905 $86,627,084 $59,625,250 $83,407,045 $77,835,068 $50,791,208 Operating Surplus/(Deficit) Ending Fund Balance Less Projected Reservations Less Committed Fund Balance ($5,074,821) $86,627,084 ($4,131,698) ($3,220,039) $83,407,045 ($2,500,000) ($16,448,232) $43,177,018 ($2,500,000) ($5,571,977) $77,835,068 ($2,500,000) ($27,043,860) $50,791,208 ($2,500,000) ($25,996,583) $24,794,625 ($2,500,000) $0 $0 $0 $0 $0 $0 Less Assigned Fund Balance (27,001,834) (16,448,232) (23,936,978) (27,043,860) ($25,996,583) ($32,974,796) Unassigned Fund Balance % Budgeted Expenditures $55,493,552 8.69% $64,458,813 9.82% $16,740,040 2.44% $48,291,208 7.12% $22,294,625 3.12% ($10,680,170) -1.46% Minimum Fund Balance per Board Policy #721 $31,916,897 $32,808,742 $34,248,867 $33,916,721 $35,693,656 $36,631,742 Compliance with Fund Balance Policy Yes Yes No Yes No No Funds needed to comply with Fund Balance Policy ($23,576,654) ($31,650,071) $17,508,827 ($14,374,487) $13,399,031 $47,311,912 4

  5. Revenue, Expenditure, and Fund Balance Trends 800,000,000 678,741,294 700,000,000 670,495,884 656,174,842 652,954,802 638,337,948 633,263,128 622,434,373 622,957,866 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 91,701,905 86,627,084 83,407,045 100,000,000 75,161,635 - Revenue Expenditures Fund Balance 2020 2021 2022 2023 Projection 5

  6. Year to Date Comparison 571,376,909 507,969,864 495,863,577 500,000,000 465,507,232 400,000,000 300,000,000 200,000,000 158,656,137 129,178,941 100,000,000 75,513,332 42,462,632 - Revenues Expenditures (Deficit)/Surplus Fund Balance 10/31/2022 10/31/2023 6

  7. Year to Date Comparison for Local Revenues 200,000,000 189,591,212 183,556,725 180,000,000 160,000,000 140,000,000 120,000,000 105,297,870 98,907,610 100,000,000 80,000,000 60,000,000 40,000,000 17,050,464 20,000,000 11,541,022 - Earned Income Tax Real Estate Tax Real Estate Transfer Tax 10/31/2022 10/31/2023 7

  8. Year to Date Comparison for State Revenues 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - (20,000,000) Basic Ed Subsidy 120,327,197.29 148,942,865.68 Special Ed Subdsidy 24,713,536.42 25,375,361.64 Social Security 2,697,022.15 5,482,284.11 Retirement 28,826,674.77 28,836,056.38 Transportation (887,056.92) 8,183,212.66 10/31/2022 10/31/2023 8

  9. Year to Date Comparison for Expenditures 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - Special Education 20,253,901.42 25,375,361.64 Salaries Benefits Transportation Charter Schools Tax Refunds 10/31/2022 10/31/2023 158,947,359.49 153,992,796.75 101,351,893.64 102,853,170.66 24,978,318.87 24,229,906.75 96,367,959.04 114,173,317.92 2,925,068.87 1,896,460.67 9

  10. 2024 Preliminary Budget Expenditures for 2024 are budgeted at $713.9 million: Represents a 4.23% increase from 2023 adopted budget Includes an operating deficit of $29.6 million in 2024 which is $13.2 million more that the 2023 operating deficit of $16.4 million The current budget does NOT adhere to Board s minimum 5 percent fund balance policy for the General Fund through 2024 based on assumptions to date Projections as of 10/31/23 indicate final expenditures of $678.3 million and an operating deficit of $5.6 million Does NOT include a millage increase ESSER III funding ends September 30, 2024 10

  11. Revenues 11

  12. 2024 Revenues LOCAL SOURCES Real Estate Earned Income Tax Real Estate Transfer Tax Other Local Revenues Total - Local Sources PROJECTED REVENUES $191,161,952 $176,901,321 $14,505,025 $8,498,768 PERCENT OF TOTAL 26.69% 24.69% 2.02% 1.19% $391,067,066 54.59% STATE SOURCES Basic Instructional Subsidy Special Education State Reimbursement Transportation State Reimbursement State Property Tax Reduction Social Security Payments Retirement Contributions Other State Revenues Total - State Sources $177,705,418 $30,656,855 $13,000,000 $19,636,817 $7,819,081 $40,324,760 $3,425,037 24.81% 4.28% 1.81% 2.74% 1.09% 5.63% 0.48% $292,567,968 40.84% REVENUE FROM OTHER SOURCES $618,926 0.09% $618,926 0.09% FROM FUND BALANCE $29,619,162 4.13% $29,619,162 4.13% PRIOR YEAR ENCUMBRANCES $2,500,000 0.35% $2,500,000 0.35% 12 TOTAL $716,373,122 100.00%

  13. 2024 Revenues Fund Balance, $29,619,162 , 4% Other, $618,926 , 0% State, $292,567,968 , 41% Local, $391,067,066 , 55% 13

  14. 2024 Revenues Other State Revenues $3,425,037 0% Other Sources Revenues $618,926 0% Fund Balance $29,619,162 4% Prior Year Encumb. $2,500,000 0% Retirement Contributions $40,324,760 6% Social Security Payments $7,819,081 1% Real Estate $191,161,952 27% State Property Tax Reduction $19,636,817 3% Transportation State Reimbursement $13,000,000 2% Special Education State Reimbursement $30,656,855 4% Total Revenue Prior Encumbrances Deficit $716,373,122 $ 2,500,000 $ 29,619,162 Basic Instructional Subsidy $177,705,418 25% Earned Income Tax $176,901,321 25% Other Local Revenues $8,498,768 1% Real Estate Transfer Tax $14,505,025 2% 14

  15. Expenditures 15

  16. 42% of Our Expenditures Are Non-Negotiable Benefits, $5,624,837 , 1% Other Funds Transfers, $328,800 , Debt Service, $40,777,137 , 6% 0% Fixed Charges, $508,582 , 0% Post Retirement Benefits, $3,728,111 , 1% Tax Refunds, $3,525,000 , 0% Remainder of Budget, $173,104,878 , 24% Intersystem Payments, $99,352,991 , 14% Contingencies , $748,761 , 0% Schools, $241,459,190 , 34% Charter Schools, $144,714,834 , 20% 16

  17. 2024 Appropriations by Major Object Property, $4,447,616, 1% Other Objects, $3,730,857, 0% Supplies, $11,459,101, 2% Other Purch. Services, $11,823,113, 2% Other Finan. Uses, $328,800, 0% Purch. Prop. Services, $4,100,478, 1% Prior Year Encumbrances, $2,500,000, 0% Purch. Prof. & Tech. Services, $10,575,836, 1% Utilities, $11,724,127, 2% Total Appropriations $716,373,121 Prior Encumbrances $ 2,500,000 Transportation, $39,096,166, 5% Salaries & Benefits $338,762,065 47% Charter Schools, $144,714,834, 20% Debt Service, $40,777,137, 6% Special Education, $92,332,991, 13% 17

  18. Major Changes by Object Expenditure Category Salaries & Benefits Special Education Debt Service Charter Schools Transportation Utilities Purch. Prof. & Tech. Services Purch. Prop. Services Other Purch. Services Supplies Property Other Objects Other Finan. Uses Total 2023 2024 Increase/(Decrease) 3,806,777 1,994,045 (230,692) 23,862,946 4,478,233 1,082,525 704,459 (92,239) (3,080,626) % Change 334,955,288 90,338,946 41,007,829 120,851,888 34,617,933 10,641,602 9,871,377 4,192,717 14,903,739 11,427,771 4,399,161 7,440,287 328,800 684,977,338 338,762,065 92,332,991 40,777,137 144,714,834 39,096,166 11,724,127 10,575,836 4,100,478 11,823,113 11,459,101 4,447,616 3,730,857 328,800 713,873,121 1.14% 2.21% -0.56% 19.75% 12.94% 10.17% 7.14% -2.20% -20.67% 0.27% 1.10% -49.86% 0.00% 4.22% 31,330 48,455 (3,709,430) - 28,895,783 18

  19. 2024 Appropriations by Function Debt Service $44,277,137 6% Support Services - Central $12,106,759 2% Facilities $2,362,476 0% Other Uses $328,800 0% Non-Instructional $5,412,490 1% Prior Year Enc. $2,500,000 0% Support Services - Transportation $39,246,446 5% Support Services - Operations & Maintenance $65,707,641 9% Total Appropriations $716,373,121 Prior Encumbrances $ 2,500,000 Support Services - Business $7,398,377 1% Support Services - Pupil Health $11,601,994 2% Instruction $449,628,699 63% Support Services - Administration $39,820,566 6% Instructional Support $35,981,736 5% 19

  20. Major Changes by Function Expenditure Category Instruction Instructional Support Support Services - Administration Support Services - Pupil Health Support Services - Business Support Services - Operations & Maint. Support Services - Transportation Support Services - Central Non-Instructional Facilities Debt Service Other Uses Total 2023 2024 Increase/(Decrease) 28,571,990.00 2,001,886.00 932,845.00 769,444.00 (9,305.00) % Change 421,056,709 33,979,850 38,887,721 10,832,550 7,407,682 449,628,699 35,981,736 39,820,566 11,601,994 7,398,377 6.79% 5.89% 2.40% 7.10% -0.13% 68,271,343 35,050,399 13,012,113 5,529,836 2,362,476 48,007,859 578,800 684,977,338 65,707,641 39,246,446 12,106,759 5,412,490 2,362,476 44,277,137 328,800 713,873,121 (2,563,702.00) 4,196,047.00 (905,354.00) (117,346.00) -3.76% 11.97% -6.96% -2.12% 0.00% -7.77% -43.19% 4.22% - (3,730,722.00) (250,000.00) 28,895,783.00 20

  21. Key Takeaways for the 2024 Budget The 2024 budget includes an operating deficit of $29.6 million The 2024 budget does NOT adhere to Board s minimum 5 percent fund balance policy for the General Fund through 2024 based on assumptions to date We CANNOT rely on fund balance to balance the 2026 budget Does NOT include a millage increase ESSER III funding ends September 30, 2024 Some ESSER funded programming will not continue beyond September 30, 2024 21

  22. 2024 Budget Adoption Timeline November 15, 2023 Preliminary Budget Released November 28, 2023 Budget Workshop #2 November 29, 2023 Budget Workshop #3 December 4, 2023 Budget Public Hearing December 18, 2023 Public Hearing December 20, 2023 Legislative Meeting 22

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