educational funding sturgis public schools 2010 - 2011
Post on 01-Apr-2015
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Educational Funding
Sturgis Public Schools
2010 - 2011
Why do we need to understand educational funding?
• School improvement
• Student achievement
• Site-based management
• School as a business
What does funding affect?
• Class sizes• Employee compensation• Buildings and playgrounds• Textbooks• Technical equipment• Specialist classes• Extracurricular activities• Community confidence
Sturgis Public Schools Revenue Budget 2010-2011
Federal Revenue
• Historically driven by equal opportunity
• 1790 – mid 19th century – equal opportunity defined by physical access to school
• 20th century – equal opportunity defined by equal spending per pupil
• ARRA – create and save jobs and jump-start economy
Michigan School Aid Fund Revenue By Source FY 2010-11
State Revenue – Proposal A
• 1994 Constitutional amendment
• Attempt to close funding gap
• Created per-pupil funding
• Increased sales tax from 4 – 6%
• Decreased property tax
• Homestead – 6 mills
• Nonhomestead – 18 mills
Michigan’s Struggling Economy
• Lost automotive manufacturing jobs
• Revenue consensus – Balanced budget requirement
• 1995 – Michigan was in the top 1/3 in individual wealth
• 2010 – Michigan now in the bottom ¼ in individual wealth
• Population decline
Local Revenue
• Tuition, investment earnings, rentals
• Universal service funds
• Grants – Sturgis Foundation endowment grants, mini-grants, solar grant, etc.
• Abbott solar/wind grant
Fund Balance
• Cumulative excess of revenues over expenditures
• Measurement tool of the district’s financial health
• School’s form of a savings account• Safety net for unforeseen circumstances• Savings plan for future needs
Advantages of Higher Fund Balance
• Minimizes reductions of employees and programs
• Decreases dependency of state aid borrowing
• Provides security from fluctuating expenses
• Contributes to higher bond ratings
Sturgis Public SchoolsSpend Down Formula
Expenditures
• State wide 2008-2009 - per-pupil revenue of $8,981 fell below expenditure of $9,545
• Some costs out of district control – retirement contribution
• Some costs difficult to contain – energy and health care
• Federal and state mandates
What Have We Done to Control Costs?
• Renovated buildings
• Energy education
• Reduction in employees
• Changed health insurance carrier
• Others?
Questions? Please contact Vicki Watson
Thank you for your time
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