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Portage Public SchoolsTHEFUTURELEARNSHERE2014/15 Budget AmendmentsGeneral Fund #1Building & Site Sinking Fund #1February 23, 2015

Portage Public SchoolsTllEToFromDateSubjFUTURELEARHSHEREMark Bielang, SuperintendentKarla Colestock, Director of FinanceFebruary 4, 2015General Fund Budget Amendment #1 Resolution for 2014/15RecommendationThat the Board of Education approve the attached budget amendment resolution to theGeneral Appropriations Act (General Fund) for the 2014/15 year at the February 23, 2015Board meeting.Background InformationThis amendment to the District's operating fund represents the first of two plannedrevisions during this school year. Typically, the budget is amended each year in Februaryand June. The extensive amendment process demonstrates our commitment to acontinuous budget cycle that updates the Board and community as new and improvedinformation becomes available.The modifications incorporated in this document are the result of a number of factors thatwe have previously discussed:I. Estimate changes due to information available from our 2013/14 audit. These revisionscome from a detailed account analysis of budget to actual during the last school year.2. Changes in budgets necessitated by actual enrollments, actual staffing, and programadjustments.3. Information received after the budget was adopted in early June, 2014.Typically the first budget amendment is the most extensive one completed during the year.This is certainly the case again this year. Foundation grant revenues have been adjusted toreflect the results of our fall membership count and revised February count estimates, for anew blended membership count. In addition, salaries and fringe benefits have beenadjusted to actual staffing levels and reflect negotiated contracted settlements. Theresolution attached that will be passed on February 23 is provided at the functional level.Also attached is the Comparison by Major Categories and Fund Balance Schedule, whichis a format familiar to you from the budget adoption process in that it compares majorcategories and gives you both projected total fund balance and unassigned fund balanceinformation. After the amendment, unassigned fund balance stands at 7.88%. This allowsus to maintain compliance with Board Policy Executive Limitations 2.4 and 2.5 for theplanning and expenditure of funds so that unassigned fund balance does not fall below7%.1

After all of the proposed changes are considered, the revised budget reflects excessexpenditures over revenues of ( 117,124) for the year. The largest portions of the netchange of 6,000 can be identified as follows:RevisionsAmountRevenues:Overall net decrease in the foundation grant and property taxes, consisting ofadjusting to 126 less actual blended membership fte's than budgeted based onactual October, 2014 and Februa1y, 2015 count estimates(979,000)Increase in other State Aid Categoricals181,000Increase in final allocations and carryover funds for federal and state programgrants472,000Increase in Special Education state categoricals213,000Decrease in projection for Childcare and Preschool fees(49,000)Increase in budget for Athletic Gate Receipts and PAF Contributions from SOAROther miscellaneous revenue adjustments148,000( 135,000)Expenditures:Net decrease in estimated salaries and fringe benefits based on actual staffing andcontract settlements (net of decrease in estimated ACA healthcare costs below)40,000Decrease in estimated healthcare costs for hourly employees from the AffordableCare Act implementation273,000Increase in estimated substitute and contractual staff costs(172,000)Increase in teaching supply allocation from fund balance reserve transfers(153,000)Increase in athletic supply and capital outlay costs due to SOAR and PAFcontributions(148,000)Decrease in estimated textbook expenses due to delaying of math and sciencetextbook purchases to 15/16 year (offset by allocation for chromebookpurchases)373,000Increase in other capital outlay expenditures(114,000)Decrease in technology contracted services and software implementation costsOther miscellaneous expenditure adjustmentsTotal revisions accounted for in these items2131,000( 75,000)6.000

Please note that this amendment is being completed at a very complex time related to theeconomy and the State's funding of their obligations. On February 11, 2015, the Governorwill release his budget recommendation for the State's 2015/16 fiscal year. This willprovide us infonnation as we begin preparation of the 2015/16 school year budget.3

For Board of Education Discussion at February 9, 2015 Meeting; Action at the February 23, 2015 MeetingPORTAGE PUBLIC SCHOOLSGENERAL FUND BUDGET RESOLUTION2014/15 AMENDED BUDGET #1Be it resolved that this resolution shall be the General Fund appropriations of Portage Public Schools for the fiscal year2014/15. A resolution to make appropriations; to provide for the expenditures of appropriations; and to provide for thedisposition of all revenue received by Portage Public Schools.Be it further resolved that the total unappropriated fund balance and total revenues to be available for appropriations inthe General Fund of Portage Public Schools for fiscal year 2014/15 is as follows:Actual2013/14Total Fund Balance, Beginning of Year, July 436,702,5357,200,936REVENUES:Local Sources*State SourcesFederal SourcesIncoming Transfers and other 323,45560,264,962973,9431 024 63721,445,43059,760,2961,230,1661,001,614Total Revenues and Other Transactions79 826 33383 586 99783 437 506Total Available to Appropriate87 064 37690,289,53290 638 44241,078,0266,613,3565046043,144,5386,774,417107 62442,627,9056,900,197161 72347 741,84250 026 57949 689 7543,421,6812,406,1661 360 5593,546,7422,753,9081 186 3793,562,4642,470,9411 361 84329 598 51231,024 01431117 547 1n compliance with Section 16 of the UniformBudgeting and Accounting Act, this includes a tax levyof 18.000 mills on Non-Homestead property.Be it further resolved that 83,554,630 of the totalavailable to appropriate is hereby appropriated in theamounts and for the purposes set forth as follows:EXPENDITURES:Instruction:Basic ProgramsAdded NeedsAdult EducationTotal InstructionSupporting Services:PupilInstructional StaffGeneral AdministrationSchool AdministrationBusiness ServicesOperations and MaintenanceTransportationCentral ServicesAthleticsTotal Supporting Services4

For Board of Education Discussion at February 9, 2015 Meeting; Action at the February 23, 2015 MeetingActual2013/14Community Servicesother Financing Use Debt ServiceTotal Expenditure AppropriationExcess (Deficiency) of Revenues over ExpendituresTotal Fund Balance (Assigned and Unassigned),End of Year, June 30 2,348,689338,092398,596398,56979 863 44083,709 99283 554 630(37,107)7,200,936 AdoptedBudget2014/15(122,995) 6,579 540(117,124) 7,083,812Be it further resolved that no Board of Education member or employee of the School District shall expend any funds orobligate the expenditure of funds except pursuant to appropriations made by the Board of Education and in keepingwith the budgetary policy statement previously adopted. Changes in the amount appropriated shall require approvalby the Board of Education.Be it further resolved that the superintendent is hereby charged with general supervision of the execution of the budgetas adopted by the Board of Education and shall hold the directors and department heads responsible for performanceof their responsibilities within the amounts appropriated.5

For Board of Education Discussion at February 9, 2015 Meeting; Action at February 23, 2015 MeetingPORTAGE PUBLIC SCHOOLS2014/15 GENERAL FUND AMENDED BUDGETCOMPARISON BY MAJOR CATEGORIES AND FUND BALANCE INFORMATIONACTUALSY 13/14ADOPTEDBUDGETSY 14/15AMENDEDBUDGET#1SY 14/15Not Program RelatedProgram Related68,678,62711147 70672,746,51510 840 48071,910,19311 527 313(836,322)686 833Total ,993129,88431,975484 59,390584,35795,883124,35433,628848 91524,956,43752,7995,413(9,582)1,138229 enuesExpensesSalariesFringe Benefits:FICA'Retirement*Health InsuranceOther Insurances:DentalVisionLong-Term DisabilityLifeother fringesTotal Fringe BenefitsPurchased ServicesSupplies, Materials, OtherCapital OutlayDebt ServiceTotal Expenses(117,124)(37,107)(122,995)Total Fund Balance - BeginningPrior Period Adjustment required byMDE related to indirect costcalculationslncome(Deficit) - Allocated to 124)Estimated Ending Total Fund 0,0006,787,2436,164,5406,583,812Excess Revenues (Expenditures) ProjectedTotal Fund Balance InformationNon-Spendable and Assigned Fund Balance RestrictionsEstimated Ending Unassigned Fund BalanceAs a Percentage of Budgeted Expenditures8.50%1Notes:'Mandated fringe benefits67.36%17,200,9367.88%15,871

PORTAGE PUBLIC SCHOOLSGENERAL FUND AMENDMENT #1PROGRAM LEVEL SUPPORTING DEDBUDGET#12014/15REVENUES:From Local Sources:Property Tax Levy, including Regional Enhancement MillageEarnings from Investments and DepositsInterest on Delinquent TaxesReimbursements from Other Funds:Accounting Services and Indirect CostsFacility Rental FeesOther Local Sources (includes bus m State Sources:Foundation Grant AllowanceOther State Categoricals/Foundation AdjustmentsFrom Federal Sources-Medicaid Administrative Outreach ProgramProgram Related Revenues:Great Start Readiness ProgramPay to Participate FeesOn-line Class and 18 Test FeesAthletic Gate Receipts and ContributionsCommunity High SchoolNon-Public School Foundation AllowanceEnrichment Class and Advertising FeesChildcare and Preschool FeesAdult Education CategoricalsEnglish as a Second Language GrantTechnology ServicesCounty Special Education, Federal Grants, and CategoricalsAt Risk GrantTille I Gran!Student Assisistance Program GrantsOther GrantsTransportation Categoricals and BillingsTOTAL 149,490)83,437,506

PORTAGE PUBLIC SCHOOLSGENERAL FUND AMENDMENT #1PROGRAM LEVEL SUPPORTING l ServicesAmberly ElementaryAngling Road ElementaryCentral ElementaryHaverhill ElementaryLake Center ElementaryMoorsbridge Elementary12th Street ElementaryWoodland ElementaryGreat Start Readiness Program GrantAcademically Gifted and TalentedNon-Public Schools-Shared Time ProgramCentral MiddleNorth MiddleWest MiddleMiddle School AthleticsCentral HighNorthern HighHigh School AthleticsEducation for EmploymentEducation for the ArtsAuditorium ManagementCommunity High School ProgramChildcare and Preschool ProgramAdult EducationEnglish as a Second LanguageHomebound ServicesInstructional Services AdministrationTechnology and Student Information SystemsMedia ServicesTechnology ServicesLibrary ProcessingSpecial Education ServicesSpecial Education ProgramAt Risk GrantTitle I GrantCurriculum and Professional DevelopmentCurriculum DevelopmentProfessional DevelopmentOther GrantsOperationsBudget and FinanceCentral ServicesMaintenance & OperationsTransportationCommunity RelationsCommunicationsCommunity Enrichment ProgramStudent Assistance ProgramHuman ResourcesAdministrationTOTAL EXPENDITURESEXCESS (DEFICIT) REVENUES OVER EXPENDITURESAMENDEDBUDGET ERS5,870(117,124)