2013-2014 Preliminary Budget Projections

March 25, 2013

What Will Be Covered Tonight?

• Update on state legislature and public school funding

• Update on 2012-2013 Budget• 2013-2014 Preliminary Budget Projections

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Update on State Legislature and Public School Funding

• State projection: $8.8B surplus by 8/31• Senate Bill 1 introduced - $1.5B

• Lockhart ISD – possible $690K• House Bill 1 - $2.5B • No new Instructional Facilities Allotment • Direction of 2013-2015 final state budget?

2012-2013 Average Daily Attendance (ADA)

• 2011-2012 final ADA 4,420• 2012-2013 budgeted ADA 4,509• 2012-2013 year to date ADA (as of 3/4/13) 4,568

• (increase of 59 ADA over budget)• (increase of 148 ADA over last year’s actual)• Subject to change throughout the year (usually decreases)

•Possible increase in General Fund revenues of $265 K• (Increase contingent upon continued ADA levels)

•Hired 3 teachers at $150 K + classroom supplies of $7,500 + Instructional improvements/support of $63K = $221K•Increased revenues of $265 – additional costs $221K = $44K

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Budget Assumptions Through 2014

• No new money• More students = more revenues• Balanced budget

• Projections:• 2.5% property values increase (No impact on

total LISD revenues)

• 3.5% ADA increase

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Sequestration of Federal FundsPossible for 2013-2014

• Approximately 5.1% reduction -reduces federal budget deficit

• Effective date of 3/1/13 at the federal level• Possibly affects 2013-2014 school funds• Possible reduction of approximately $165K for LISD• LISD evaluating options

Reduce federal expendituresAbsorb federal expenditures in General Fund

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TRS Active Care Premium Increase for 2013-2014

• Active Care 2 increase: $69 per month/$828 per year• Estimated cost of $439,668

General Fund $373,718Special Revenue Funds $65,950General Fund cost possibly higher due to

sequestration•Options?

1. Do nothing (employee absorbs cost)

2. LISD increases employer contribution

3. Cost sharing (employee + LISD share the increase)

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2013-2014 Requests for Capital Outlay and Facilities Improvements

• 2012-2013 Budget savings redirected to purchase 2013-2014 capital outlay requests now

• Maintenance budget fulfilling facilities improvement requests

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2013-2014 Preliminary Budget Projections (Current Law)

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CurrentObj 2012-13 2013-14 2014-15

LOCAL REVENUE SOURCES 10,580,158$ 10,848,460$ 11,096,782$ STATE REVENUE SOURCES 23,907,983$ 24,284,578$ 24,557,361$ FEDERAL REVENUE SOURCES 258,235$ 243,235$ 243,235$ TOTAL ESTIMATED REVENUES 34,746,376$ 35,376,273$ 35,897,378$

SALARIES/BENEFITS 27,764,490$ 27,858,982$ 27,894,304$ CONTRACTED/PROF SERVICES 3,704,469$ 3,829,860$ 3,875,886$ SUPPLIES/MATERIALS 1,438,774$ 1,448,376$ 1,458,354$ OTHER OPERATING COSTS 1,049,328$ 1,127,012$ 1,153,920$ TOTAL ESTIMATED EXPENSES 33,957,061$ 34,264,230$ 34,382,464$ Less:Transfer Out (Community Ed) 180,000$ 180,000$ 180,000$ Transfer Out (Maint. Tax Note) 475,632$ 445,000$ 445,000$ TOTAL ESTIMATED TRANSFERS OUT 655,632$ 625,000$ 625,000$

Amount To/(From) Fund Balance * 133,683$ 487,043$ 889,914$

* Excludes 12-13 facilities improvements budget of $2,538,209 (using fund balance)

Biennium

Budget Timelines

• Budget Updates at Regular meetings:• April 22, 2013 • May 20, 2013

• Special Called Meeting:• June 3, 2013 –– to call a public hearing and approve a tax rate to be

published

• Regular meetings:• June 24, 2013 – Budget adoption• August or September 2013– adopt tax rate

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Questions?

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