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| Madison Metropolitan School District Madison, Wisconsin Art Rainwater, Superintendent | ||
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| BOARD OF EDUCATION Minutes for Finance and Operations January 22, 2007 |
Doyle Administration Building 545 West Dayton Street, Auditorium Madison, Wisconsin |
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Finance and Operations Committee meeting was called to order by Lawrie Kobza at 8:51 p.m.
MEMBERS PRESENT: Carol Carstensen, Lawrie Kobza, Lucy Mathiak
MEMBERS ABSENT: None
OTHER BOARD MEMBERS PRESENT: None
STUDENT REPRESENTATIVES PRESENT: None
STAFF PRESENT: Sue Abplanalp, Mary Gulbrandsen, Doug Johnson, Pam Nash, Roger Price, Art Rainwater, Candie Steffen, Ken Syke, Donna Williams, Barbara Lehman-Recording Secretary
1. Approval of Minutes
It was moved by Carol Carstensen and seconded by Lucy Mathiak to approve the Finance and Operations Committee minutes dated November 21, November 27, and November 29, 2006as distributed. Motion unanimously carried.
2. Public Appearances
There were no public appearances.
3. Announcements
There were no announcements.
4. Forecast relative to the 2007-08 MMSD Budget
(Packets included an executive summary (1/18/07), parameters used to build the 2007-08 budget forecast model (1/3/07); and the five year financial projections. Copies are attached to the original of these minutes.)
Scott Gralla, a representative from PMA Financial Network, Inc.; and Roger Price, Assistant Superintendent for Business Services, presented the budget forecast for 2007-08 which projects a gap of $10,547,777. Projected gaps for subsequent years are:
2008-09 $15,346,480
2009-10 $17,681,797
2010-11 $21,848,281
2011-12 $26,069,055
No "salary savings" is budgeted in any of these forecasts. The Administration will continue to refine these projections as it moves through the budget process and as more information becomes available from the DPI and other sources.
Mr. Price reviewed the summary of the parameters utilized in the analysis and a projection summary for Funds 10 and 27. Current enrollment projections indicate that enrollment will increase by 948 students during the next five years. Such an enrollment increase will contribute to the projected long-term budget deficits because the revenue limit formula does not give the District full credit for each new student until that student has been enrolled for three consecutive years. He stressed that this is not the budget; it is a financial analysis at this point in time.
DISCUSSION:
o Projected gaps are based on doing nothing. If a $10.5 million cut is made, the deficit would be $5 million. They are cumulative. The $26 million is the total of the deficits from this year until 2012.
o The $10.5 million includes the $2.5 million cut as a result of the shortage for special education and more.
o If the Board decided to go to referendum for this year and next year, would go for $25 million continuing.
o Approach to salary savings has been changed - pulled back any negative expenditures - when the times gets closer to real numbers, adjustments will be made.
o Salary savings budgeted for this year in the amount of $5.9 million is an accumulation of many things. This is a conservative number. This year the balance will be looked at and adjusted and positions will be held if covered through substitutes. Retirements and new hires are built in; they are not considered salary savings.
o Projection Summary - CPI is 1.3%. How come expenditures are 1.3%? Because of salaries and fringe benefits.
o Why an additional $300,000 was built in every year to the Fund 80 Reserve. Reduction of tax levy shows up in projection analysis.
o This year may focus more on the Community Services Budget.
o Administration will be working off the $10.5 million number. Approach will be conservative.
o Some changes that are being talked about in the State Legislature may have some impact: 1) agreement made between the Governor and the Republicans to increase the voucher program in Milwaukee vs. increasing the amount of SAGE will affect the proposal from DPI that would fund that at $2250 this year and $2250 next year; 2) there is a Legislative Committee looking at school finance and may recommend increasing the revenue cap by 1 percent, non-recurring, to use for some extra expenses; 3) Spencer Black's proposal to take security out from under the revenue cap (depends on how they end up doing it).
o Next step is to begin the process of building the budget and apply some of these assumptions; define the detailed department requests and build them from zero. Budget 1 will be cost to continue, not same services. There will be $10.5 million worth of changes.
FOLLOW UP: Please provide list of districts that have decided to go to referendum for operating budgets.
5. Other Business
There was no other business.
6. Adjournment
It was moved by Lucy Mathiak and seconded by Carol Carstensen to adjourn the meeting at 9:27 p.m. Motion unanimously carried.
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