Ruth Beier

MEA Economist

March 5, 2013

Galesburg-Augusta Community

Schools

A note about the data

March 5, 2013Galesburg-Augusta2

Data sources are included for each exhibit.

When possible, data for 2011-12 is included.

2011-12 audited data is not yet available for

comparing a large number of districts.

2012-13 data is still “budgeted” information. The

district is not required to complete the 2012-13

audit until November 15, 2013.

Galesburg-Augusta General Fund

Balance

March 5, 2013Galesburg-Augusta3

School YearEnd of Year General Fund

Balance General Fund ExpenditureGeneral Fund Balance as a % of

General Fund Expenditure

2006-07 $980,098 $11,497,229 8.5%

2007-08 $1,100,130 $10,856,984 10.1%

2008-09 $953,179 $10,935,997 8.7%

2009-10 $475,594 $11,236,583 4.2%

2010-11 $898,009 $10,992,802 8.2%

2011-12 $918,818 $10,604,657 8.7%

Average $887,638 $11,020,709 8.1%

Source: Michigan Department of Education FID Reports: http://cepi.state.mi.us/FidFormb/

Galesburg-Augusta General Fund

Balance

in Dollars

March 5, 2013Galesburg-Augusta4

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

End of Year General Fund Balance

Source: Michigan Department of Education FID Reports:

http://cepi.state.mi.us/FidFormb/

Galesburg-Augusta General Fund

Balance

as a % of General Fund Expenditure

March 5, 2013Galesburg-Augusta5

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

General Fund Balance as a % of General Fund Expenditure

Source: Michigan Department of Education FID Reports:

http://cepi.state.mi.us/FidFormb/

Recent Budgeting Accuracy

March 5, 2013Galesburg-Augusta6

YearBudgeted Change in

General Fund BalanceActual Audited Change in

General Fund Balance

Difference Between Budget

and Audit

2010-11 $6,762 $422,415 $415,653

2011-12 -$225,104 $20,808 $245,912

Source: District Audits

Recent Budgeting Accuracy

March 5, 2013Galesburg-Augusta7

$6,762

-$225,104

$422,415

$20,808

-$300,000

-$200,000

-$100,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

2010-11 2011-12

Budgeted Change in General Fund Balance

Actual Audited Change in General Fund Balance

Source: District Audits

Commitment to Instruction

March 5, 2013Galesburg-Augusta8

Year

Instructional Expenditure as a % of

General Fund Expenditure

Instructional Expenditure

2002-03 65.8% $6,054,167

2003-04 57.6% $5,918,393

2004-05 59.8% $6,183,893

2005-06 60.9% $6,816,545

2006-07 61.1% $7,019,924

2007-08 61.7% $6,699,946

2008-09 64.0% $6,997,029

2009-10 63.2% $7,105,861

2010-11 56.7% $6,236,021

2011-12 60.4% $6,407,083

Instructional expenditure includes salary, benefits, FICA, MPSERS, supplies, purchased services, capital purchases for

the instruction function

Source: Michigan Department of Education FID Reports: http://cepi.state.mi.us/FidFormb/

Commitment to Instruction

March 5, 2013Galesburg-Augusta9

52.0%

54.0%

56.0%

58.0%

60.0%

62.0%

64.0%

66.0%

68.0%

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

Instructional Expenditure as a % of General Fund Expenditure

Source: Michigan Department of Education FID Reports:

http://cepi.state.mi.us/FidFormb/

Last year before new Superintendent

Commitment to Instruction

March 5, 2013Galesburg-Augusta10

$6,750,125

$6,382,886

$6,558,945

$6,808,273

$5,948,859

$6,058,666

$5,400,000

$5,600,000

$5,800,000

$6,000,000

$6,200,000

$6,400,000

$6,600,000

$6,800,000

$7,000,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Instructional Total Compensation

Last year before new Superintendent

Expenditure includes salary, benefits, FICA, MPSERS for teachers and

instructional parapros

Source: Michigan Department of Education FID Reports:

http://cepi.state.mi.us/FidFormb/

Teacher Contribution to District Fund

Balance

March 5, 2013Galesburg-Augusta11

General Fund Balance at the beginning of 2012-13 $918,818

Source: District Audit

DISTRICT SAVINGS FROM TEACHERS IN 2012-13

Salary, FICA, and retirement cost of teachers -- 2011-12 $4,637,092

Salary, FICA, and retirement cost of teachers -- 2012-13 $4,542,762

Savings from reduced salary, FICA, retirement cost of teachers $94,330

Source: Data provided by district

District's Insurance cost of teachers -- 2011-12 $1,058,378

District's Insurance cost of teachers -- 2012-13 $896,874

Savings from reduced insurance cost of teachers $161,504

Source: Data provided by district

Total Teacher Contribution to District General Fund Balance $255,834

Teacher Contribution as a Percent of Total General Fund Balance 28%

Impact of Privatization on General Fund

Balance

March 5, 2013Galesburg-Augusta12

Expenditure includes salary, benefits, equipment, purchased services, supplies

Source: Michigan Department of Education FID Reports: http://cepi.state.mi.us/FidFormb/

Budget information provided by district

General Fund Balance at the beginning of 2012-13 $918,818

Source: District Audit

DISTRICT COST INCREASE FROM TRANSPORTATION

General Fund expenditure on transportation -- 2011-12 $683,441

General Fund expenditure on transportation -- 2012-13 $752,167

Increased in transportation expenditures $68,726

DISTRICT COST INCREASE FROM CUSTODIAL MAINTENANCE

General Fund expenditure on custodial maintenance -- 2011-12 $1,010,503

General Fund expenditure on custodial maintenance -- 2012-13 $1,154,998

Increased in transportation expenditures $144,495

Total Reduction in General Fund Balance from Transportation and Custodial/Maint. $213,221

Transportation and Custodial Maint Cost Increase as a % of General Fund Balance 23%

Commitment to Administration

March 5, 2013Galesburg-Augusta13

Year

Administrative Expenditure as a % of General Fund

Expenditure Administrative Expenditure

2002-03 12.2% $1,126,280

2003-04 10.4% $1,071,628

2004-05 12.3% $1,276,757

2005-06 11.9% $1,330,229

2006-07 12.0% $1,376,112

2007-08 12.5% $1,359,912

2008-09 11.2% $1,221,751

2009-10 11.9% $1,332,966

2010-11 13.1% $1,434,711

2011-12 14.6% $1,544,410

Source: Michigan Department of Education FID Reports:

http://cepi.state.mi.us/FidFormb/

Commitment to Administration

March 5, 2013Galesburg-Augusta14

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2Administrative Expenditure as a % of General

Fund Expenditure

Last year before new Superintendent

Source: Michigan Department of Education FID Reports:

http://cepi.state.mi.us/FidFormb/

Four Year Superintendent Total Compensation

March 5, 2013Galesburg-Augusta15

YEAR TOTAL COMPENSATION %

CHANGE

09-10 149,820

10-11 176,378 +17.7%

11-12 185,177 +5.0%

12-13 192,942 +4.2%

Superintendent % Change from 09-10 to 12-13=+28.8%

VS.

Teacher % Change from 09-10 to 12-13= -9.0%Budget information provided by district

Superintendent Total Compensation

March 5, 2013Galesburg-Augusta16

Budget information provided by district

2011-12 Audited Expenditure 2012-13 Budgeted Expenditure

SALARY-SUPERINTENDENT $109,594 $109,594

403B AND LONGEVITY APYMENTS $5,500 $5,500

HEALTH INSUR-SUPERINTENDENT $14,537 $14,204

COLLEGE TUITION-SUPERINTEND $350 $2,600

FICA-SUPERINTENDENT $8,155 $9,460

RETIREMENT-SUPERINTENDENT $27,812 $31,732

WORKERS COMP;SUPERINTENDENT $402 $416

BD PD ANNUITIES, SUPT $8,565 $8,565

WORKSHOPS/CONF EXP-SUPT $6,991 $7,500

DUES/FEES-SUPT $1,065 $1,500

MISC EXPENSE, SUPT $2,206 $2,500

Total Superintendent Compensation $185,177 $193,571

Instructional Total Expenditure in Districts with Similar Pupils Counts (Plus and Minus 75 Students)

March 5, 2013Galesburg-Augusta17

School District 2006-07 2007-08 2008-09 2009-10 2010-11

Blissfield Community Schools 63.04% 63.99% 65.74% 65.92% 67.22%

Bad Axe Public Schools 66.20% 64.96% 64.57% 65.87% 66.12%

Grass Lake Community Schools 63.78% 65.23% 60.17% 62.71% 65.88%

Bangor Public Schools (Van Buren) 63.09% 62.88% 62.36% 61.49% 65.59%

Hesperia Community Schools 65.41% 64.45% 66.28% 67.09% 65.16%

Pine River Area Schools 62.61% 60.33% 63.35% 66.07% 64.35%

N.I.C.E. Community Schools 63.13% 63.25% 64.12% 67.86% 63.88%

Byron Area Schools 63.25% 61.87% 60.79% 65.56% 63.83%

Houghton-Portage Township Schools 65.14% 67.17% 67.93% 65.72% 63.82%

Saranac Community Schools 62.07% 62.51% 64.41% 64.22% 63.45%

Clinton Community Schools 60.14% 58.79% 62.41% 67.23% 62.99%

Cass City Public Schools 61.78% 67.77% 64.13% 65.42% 62.64%

Hart Public School District 61.24% 60.77% 60.92% 61.53% 62.62%

Mason Consolidated Schools (Monroe) 60.00% 58.54% 59.42% 62.05% 62.57%

St. Louis Public Schools 60.71% 60.13% 61.81% 62.41% 62.41%

Laingsburg Community School District 62.67% 63.02% 63.90% 65.01% 62.25%

Bronson Community School District 60.35% 59.90% 60.10% 61.57% 61.00%

Frankenmuth School District 57.16% 57.79% 55.34% 58.89% 60.25%

Lake City Area School District 60.32% 58.56% 58.23% 60.74% 60.04%

Schoolcraft Community Schools 58.96% 58.63% 59.81% 59.15% 59.64%

Galesburg-Augusta Community Schools 61.05% 61.71% 63.98% 63.23% 56.72%

Whitmore Lake Public Schools 55.44% 55.26% 55.69% 55.79% 56.36%

Cassopolis Public Schools 53.47% 54.38% 55.73% 56.28% 55.83%

Manchester Community Schools 51.62% 52.14% 53.56% 54.15% 54.65%

Sandusky Community School District 61.90% 62.84% 62.67% 55.77% 52.58%

River Rouge School District 56.42% 52.07% 48.64% 47.64% 49.82%

Comparable Group Average 60.81% 60.73% 61.00% 61.90% 61.22%

DefinitionsInstruction: Teachers and classroom paraprofessionals. Instructional Total Expenditure: salary, benefits, equipment, purchased services, supplies.

Source: Michigan Department of Education FID Reports: http://cepi.state.mi.us/FidFormb/

Administrative Total Expenditure in Districts with Similar Pupils Counts (Plus and Minus 75

Students)

March 5, 2013Galesburg-Augusta18

2006-07 2007-08 2008-09 2009-10 2010-11

Sandusky Community School District 9.62% 9.12% 9.00% 18.37% 23.30%

Saranac Community Schools 14.82% 15.24% 13.58% 15.07% 14.95%

St. Louis Public Schools 12.31% 12.53% 12.00% 12.56% 13.52%

Cassopolis Public Schools 15.19% 14.14% 13.57% 14.38% 13.16%

Laingsburg Community School District 12.36% 12.10% 12.41% 12.90% 13.09%

Galesburg-Augusta Community Schools 11.96% 12.52% 11.17% 11.86% 13.05%

Pine River Area Schools 12.26% 11.32% 11.59% 12.36% 12.69%

Mason Consolidated Schools (Monroe) 13.30% 13.53% 13.14% 12.85% 12.68%

Schoolcraft Community Schools 10.07% 10.61% 10.09% 10.63% 12.50%

Bronson Community School District 12.57% 12.75% 11.69% 11.70% 12.37%

Lake City Area School District 11.28% 12.60% 12.53% 12.22% 12.33%

Whitmore Lake Public Schools 10.80% 10.64% 11.65% 12.41% 11.81%

Blissfield Community Schools 12.22% 11.04% 11.11% 11.45% 11.45%

Houghton-Portage Township Schools 12.09% 11.67% 11.56% 10.86% 11.45%

Bad Axe Public Schools 11.15% 11.14% 11.32% 12.20% 11.44%

Cass City Public Schools 9.25% 10.12% 11.82% 11.62% 11.24%

Grass Lake Community Schools 9.77% 9.45% 10.04% 10.77% 11.24%

Hart Public School District 12.04% 11.46% 11.54% 11.78% 11.10%

Frankenmuth School District 10.46% 10.22% 10.64% 10.99% 11.08%

River Rouge School District 10.58% 12.43% 10.95% 11.06% 11.00%

Bangor Public Schools (Van Buren) 12.41% 12.95% 13.52% 13.17% 10.73%

Byron Area Schools 12.28% 12.68% 12.21% 11.13% 10.56%

Clinton Community Schools 13.42% 11.75% 11.74% 11.35% 10.53%

Manchester Community Schools 10.25% 10.66% 9.89% 9.75% 9.92%

N.I.C.E. Community Schools 10.07% 10.66% 9.78% 9.38% 9.46%

Hesperia Community Schools 8.62% 8.28% 8.97% 8.82% 8.27%

Comparable Group Average 11.58% 11.60% 11.44% 11.99% 12.11%

DefinitionsAdministration: Superintendent’s office, business office, principals’ offices. Admin Total Expenditure: salary, benefits, equipment, purchased

services, supplies.

Source: Michigan Department of Education FID Reports: http://cepi.state.mi.us/FidFormb/

Custodial Maintenance Total Expenditure in Districts with Similar Pupils Counts (Plus and Minus 75

Students)

March 5, 2013Galesburg-Augusta19

2006-07 2007-08 2008-09 2009-10 2010-11

River Rouge School District 12.93% 15.54% 17.48% 13.99% 13.33%

Manchester Community Schools 12.57% 12.43% 11.60% 11.11% 10.80%

Laingsburg Community School District 11.68% 10.98% 11.20% 10.19% 10.72%

Cassopolis Public Schools 11.84% 12.05% 12.22% 11.42% 10.61%

Schoolcraft Community Schools 11.46% 11.44% 11.06% 10.56% 10.51%

St. Louis Public Schools 10.35% 11.55% 11.70% 10.91% 10.47%

Bronson Community School District 9.53% 9.61% 10.51% 10.38% 10.16%

Galesburg-Augusta Community Schools 11.34% 10.79% 12.40% 11.27% 10.08%

Bangor Public Schools (Van Buren) 9.29% 9.82% 9.38% 9.72% 10.07%

Sandusky Community School District 11.65% 11.55% 11.94% 9.87% 9.67%

Bad Axe Public Schools 10.56% 11.22% 11.01% 9.75% 9.54%

Grass Lake Community Schools 11.41% 13.52% 13.14% 9.14% 9.54%

Frankenmuth School District 10.33% 10.29% 9.77% 10.14% 9.52%

Clinton Community Schools 9.38% 10.21% 9.54% 9.01% 9.30%

Whitmore Lake Public Schools 11.51% 12.90% 10.78% 9.39% 9.25%

Hart Public School District 9.60% 10.10% 10.36% 10.30% 9.23%

Pine River Area Schools 10.34% 13.30% 11.48% 8.37% 9.16%

Mason Consolidated Schools (Monroe) 10.01% 10.61% 10.64% 9.79% 9.12%

Lake City Area School District 9.50% 9.62% 9.77% 8.90% 8.79%

Byron Area Schools 10.15% 10.15% 10.56% 8.88% 8.72%

Houghton-Portage Township Schools 8.86% 8.92% 8.41% 8.98% 8.47%

N.I.C.E. Community Schools 9.19% 9.33% 8.91% 9.25% 8.32%

Saranac Community Schools 8.67% 9.06% 9.01% 7.87% 8.14%

Blissfield Community Schools 9.43% 9.33% 8.76% 8.07% 7.96%

Hesperia Community Schools 9.41% 9.12% 8.56% 8.19% 7.66%

Cass City Public Schools 16.99% 7.62% 8.86% 7.21% 6.96%

Comparable Group Average 10.69% 10.81% 10.73% 9.72% 9.47%

DefinitionsCustodial Maintenance: Custodial Maintenance services. Custodial Maint. Total Expenditure: salary, benefits, equipment, purchased services,

supplies.

Source: Michigan Department of Education FID Reports: http://cepi.state.mi.us/FidFormb/

Summary

March 5, 2013Galesburg-Augusta20

* Galesburg-Augusta has a steady General Fund Balance.

* In the past two years, the public Budget has overstated the district's financial problem.

* The portion of the budget dedicated to instruction is lower than it has been.

* The portion of the budget dedicated to instruction began to fall in the 2009-10 year.

* Reductions in the district’s cost of teacher wages and benefits in 2012-13 will add to the district's fund balance.

* Privatization resulted in increased costs of transportation and custodial services.

* The portion of the budget dedicated to administration is higher than it has been.

* The portion of the budget dedicated to administration began to rise in the 2009-10 year.

* In contrast to the district's proposal for teachers, superintendent compensation is budgeted to go up this year.

* Compared to similar sized districts, Galesburg-Augusta ranks:

Below average in the portion of the budget dedicated to instruction

Above average in the portion of the budget dedicated to administration

Above average in the portion of the budget dedicated to custodial maintenance