May 14, 2009

The annual budget presents a complete financial plan and includes the following:

Important features and major changes from the preceding year

Projected revenues and expenditures from all sources with a comparative statement for the two preceding years, itemized by year, fund, source and activity

Interest, amortization and redemption amounts due on debt funds

A general budget summary

In no event shall the total proposed expenditures from any fund exceed the estimated revenues to be received plus any unencumbered balance

or less any deficit estimated for the beginning of the budget year….

04/10/23 2St. Louis Public Schools

The Fiscal Year 2010 budget includes several base assumptions:

1. No deficit spending

2. School closing savings of $12.2M1

3. Magnet schools staffed better than the MSIP desired ratios (currently underfunded)

4. Student enrollment projected at 24,9542 vs. 25,906

Preschool @ 1,1162 vs. 1,432

K-12 @ 23,8382 vs. 24,474

1 - Continuation of school(s) for alternative education not included

2 – Source, Planning Dept., April 17, 2009

Fiscal Year 2009-10Executive Summary

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The Fiscal Year 2010 budget is marked with several challenges and key issues:

1. Projected revenue = $289.0M1

Revenue down $17.0M

Current/Delinquent Taxes (2.0M)

Prop C (1.0M)

VICC (1.0M)

Basic Formula (11M)

ERATE (1.5M)

Medicaid (.5M)

1Includes potential $3.0M DESE funding increase

Fiscal Year 2009-10Executive Summary

04/10/23 4St. Louis Public Schools

The Fiscal Year 2010 budget is marked with several challenges and key issues:

2. Budget gap of $53.0M

3. FY09-10 projected enrollment to decrease by 9521

compared to April 16, 2009 enrollment

4. Charter enrollment projected to increase by 1,000 (10%)

1 - Decrease based on enrollment as of April 16, 2009

Fiscal Year 2009-10Executive Summary

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FY08-09

Current

FY09-10

Proposed

CHANGE

%

Revenues $306 $289 ($17) (5.5)

Expenditures $342 $289 ($53) (15.5)

Deficit Spend

($36) 0

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FY08-09 Amended

FY09-10 Proposed Variance %

Local Revenues 203,372$ 201,826$ (1,546)$ -0.8%County Revenues 2,911 2,718 (193) -6.6%State Revenues 92,738 80,259 (12,479) -13.5%Federal Revenues 6,660 4,370 (2,290) -34.4%

Total Revenues 305,681$ 289,173$ (16,508)$ -5.4%

Salary & Benefit Expenditures:Regular Salaries 144,886$ 126,263$ (18,623)$ -12.9%Temporary / Overtime 14,621 10,551 (4,070) -27.8%Benefits 58,049 50,462 (7,587) -13.1%

Salary & Benefit Expenditures 217,555$ 187,276$ (30,279)$ -13.9%

Non-Payroll Expenditures:Purchased/Professional Services 59,169$ 47,781$ (11,388)$ -19.2%Property Services 17,822 16,272 (1,550) -8.7%Contracted Transportation 31,664 24,064 (7,600) -24.0%Operational Expenditures 14,944 13,174 (1,770) -11.8%Debt Obligations 1,083 568 (515) -47.5%

Non-Payroll Expenditures 124,682$ 101,859$ (22,823)$ -18.3%

Total Expenditures 342,238$ 289,135$ (53,102)$ -15.5%

Saint Louis Public SchoolsFY 2009-10 Proposed Budget

General Operating Funds(in thousands)

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Three Year Revenue Summary

Revenue Source FY08 Actual FY09 Amended FY10 Proposed FY10 - FY09

Variance % FY10 - FY08

Variance %

LOCAL REVENUES 218,032,150 203,371,874 201,826,346 (1,545,528) -0.8% (16,205,803) -7.4%Property Taxes 150,539,039 146,621,194 148,133,630 1,512,436 1.0% (2,405,409) -1.6%Current Taxes 54,779,955 49,565,680 46,972,716 (2,592,964) -5.5% (7,807,239) -14.3%Other Local Revenue 11,221,455 7,075,000 5,610,000 (1,465,000) -26.1% (5,611,455) -50.0%Sale of Property 887,706 - 1,000,000 1,000,000 100.0% 112,294 12.6%

COUNTY REVENUES 2,784,670 2,910,815 2,717,755 (193,060) -7.1% (66,915) -2.4%

STATE REVENUES 115,600,067 92,738,205 80,258,708 (12,479,497) -15.5% (35,341,359) -30.6%Basic Formula 92,829,702 73,621,916 62,359,837 (11,262,079) -18.1% (30,469,865) -32.8%Classroom Trust 10,075,438 7,281,288 6,928,871 (352,418) -5.1% (3,146,567) -31.2%Transportation 12,381,758 11,550,000 10,800,000 (750,000) -6.9% (1,581,758) -12.8%

FEDERAL REVENUES 3,654,946 6,660,000 4,370,000 (2,290,000) -52.4% 715,054 19.6%Other (ERATE) 1,049,340 1,960,000 1,320,000 (640,000) -48.5% 270,660 25.8%Medicaid Direct Prov 162,885 1,200,000 450,000 (750,000) -166.7% 287,115 176.3%Medicaid Case Mgmt 2,442,720 3,500,000 2,600,000 (900,000) -34.6% 157,280 6.4%

Total $340,071,832.31 $305,680,893.95 $289,172,809.16 ($16,508,084.79) -5.7% ($50,899,023.15) -15.0%

04/10/23 9St. Louis Public Schools

School Closing Savings1 (62) 12.2Staff Reductions2 (354) 20.7Central Office Reductions 4.8Special Education Stimulus 8.5Substitute Costs 4.5Reduction-in-Force Costs -1.0Other Savings Opportunities 3.3

Total $53.0

1 - Includes $5.1M in staff reductions

2 - Possibly 95 positions Title I funded

Revenue Estimates1

Enrollment: SLPS & Charter Schools

VICC Local Effort and Special Education Legal Settlements

Transportation

Energy Costs

Stimulus Plan

1 - Based on current information

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Title I – FY10 Regular Allocation 20.1MTitle I – FY10 Stimulus Allocation 14.0MTitle I Total $34.1M

GOB Leveraged $ 6.1M

Special Education – FY10 Regular Allocation 7.7MSpecial Education – FY10 Stimulus Allocation 8.5MSpecial Education Total $16.2M

GOB Leveraged $ 8.5M

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Increase Student Attendance

Tax Rate Increase

Stimulus Construction Bonds

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Other Cost Saving Options

1. Salary Reductions

2. Increase Employee Retirement Contribution

3. Reduce Health Care Costs

4. Reduce Number of Workdays

5. One-time Revenue• Desegregation Fund Flexibility• “No Tax Increase” Bond• Additional Building Sales ($1M assumed)

04/10/23 13St. Louis Public Schools