HomeMy WebLinkAboutWestlake Academy Long-range Financial Forecast - 03102011.1Westlake Academy
Long-range Financial Forecast
Scenarios Based
On State Public
Education Funding Reductions
Current Total WA Yearly Cost
3/21/2013 BOT Meeting 2
Overall Cost Summary FY 10-11 Budget
Proposed Westlake Academy Budget $ 4,649,822
Estimated Town Funded Indirect Operational
Costs (Support Services) 324,607
Subtotal All Operating Costs 4,973,129
Annual Debt Service Payment 1,501,778
Grand Total $ 6,476,207
WA Total Operating Expenditures
3/21/2013 Block Schedule Information Meeting 3
WA – Total Operating Expenditures
Adopted Estimated Adopted
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
General Fund $ 3,709,086 $ 3,918,033 $ 4,092,899 $ 4,425,054
Special Revenue Funds 96,610 139,680 270,131 224,768
Total Governmental Funds $ 3,805,696 $ 4,057,713 $ 4,363,030 $ 4,649,822
WA Yearly – Expenditures by
Object Code
3/21/2013 BOT Meeting 4
WA Yearly - Expenditures by Object Code
Adopted Estimated Adopted
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
61XX Payroll & Related Items $ 2,790,289 $ 3,090,775 $ 3,275,786 $ 3,396,643
62XX Contracted Services 553,162 488,190 444,608 641,745
63XX Supplies & Materials 252,376 252,105 305,659 258,287
64XX Other Operating 126,878 184,643 295,481 353,147
65XX Debt Service 82,990 42,000 41,496 -
Total Expenditures $ 3,805,696 $ 4,057,713 $ 4,363,030 $ 4,649,822
WA Yearly Revenue Detail
3/21/2013 Block Schedule Information Meeting 5
FY 08/09
Audited
FY 09/10
Adopted
Budget
FY 09/10
Estimated
Budget
FY 10/11
Adopted
Budget
Local & Intermediate Sources
Blacksmith Apprentice Program (WAF) 394,129 $ 420,000 $ 435,095 $ 419,230 $
Gifts and Donations 20,000 - 3,000 -
Investment Earnings 4,617 3,000 625 1,500
Lunchroom Revenues 6,339 8,600 - 3,000
WAF Salary Reimbursement 64,858 64,858 64,858 64,858
Local Revenue 25,341 11,000 16,388 12,000
Athletic Activities Income 32,743 48,006 44,953 51,953
Transportation & Parking - - - 32,840
Total Local & Intermediate Sources 506,248 555,464 564,919 585,381
State Revenues
Foundation School Program 2,960,589 3,443,120 3,379,040 3,748,836
State Revenue (TRS and Medicare On-Behalf) 202,539 174,285 193,989 189,630
Medicare Part D On-Behalf - - 6,044 6,165
Total State Revenues 3,163,129 3,617,405 3,579,073 3,944,631
TOTAL REVENUES 3,669,377 $ 4,172,869 $ 4,143,993 $ 4,530,013 $
Total Enrollment
3/21/2013 BOT Meeting 6
0
100
200
300
400
500
600
700
FY 03/04
1-6
FY 04/05
K-7
FY 05/06
K-8
FY 06/07
K-9
FY 07/08
K-10
FY 08/09
K-11
FY 09/10
K-12
FY 10/11
K-12
FY 11/12
K-12
FY 12/13
K-12
FY 13/14
K-12
195
264
324 346 379 417
491 520
610 630 630
Models Examined
•Status Quo (current enrollment & staffing)
•Status Quo + 2 students per class (maintain current
staffing)
•Option B Expanded Block Schedule as planned
•Option B Expanded Block Schedule + 2 students/class
•Apply: 5%, 10%, and 15% FSP Funding Reduction to
each scenario.
3/21/2013 BOT Meeting 7
−0% = $7,328
−5% = $7,040
−10% = $6,752
−15% = $6,464
Scenario Assumptions
•Revenues
–100% use of Blacksmith
–5-15% FSP Reduction through FY12-13
–3% growth in other revenues
–3% growth in FSP beginning FY13-14
•Expenditures
–Salaries flat until FY 13-14
–3% growth in all other expenditures
–Transfer indirect costs from Town to WA starting FY 11-12
–3% increase in salaries beginning in FY13-14
3/21/2013 BOT Meeting 8
Scenarios
3/21/2013 BOT Meeting 9
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Status Quo “Option B”
No Change
Maintain the Status Quo
No Change to the Plan
Implement Option B
Additional Staff and Facilities
Add 2 New Students/Class
No Additional Staff or Facilities
Implement Option B
Add 2 New Students/Class
Additional Staff and Facilities
1,5,9 3,7,11
2,6,10 4,8,12
Scenario 1-4 = 5% FSP Reduction
Scenario 4-8 = 10% FSP Reduction
Scenario 9-12 = 15% FSP Reduction
Scenarios – 5% FSP Reductions
3/21/2013 BOT Meeting 10
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Status Quo “Option B”
~528 Students
~45.3 Teaching Staff
~18.8 FTE Support Staff
~(368,005) Exp. over Rev.
~37 Operating Days
~606 Students
~50.3 Teaching Staff
~18.8 FTE Support Staff
~(96,540) Exp. Over Rev.
~52 Operating Days
~577 Students
~45.3 Teaching Staff
~18.8 FTE Support Staff
~24,880 Rev. over Exp.
~67 Operating Days
~663 Students
~50.3 Teaching Staff
~18.8 FTE Support Staff
~358,631 Rev. over Exp.
~84 Operating Days
1 3
2 4
Scenarios – 10% FSP Reductions
3/21/2013 BOT Meeting 11
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Status Quo “Option B”
~528 Students
~45.3 Teaching Staff
~18.8 FTE Support Staff
~(523,210) Exp. over Rev.
~25 Operating Days
~606 Students
~50.3 Teaching Staff
~18.8 FTE Support Staff
~(274,674) Exp. Over Rev.
~40 Operating Days
~577 Students
~45.3 Teaching Staff
~18.8 FTE Support Staff
~(144,788) Exp. over Rev.
~54 Operating Days
~663 Students
~50.3 Teaching Staff
~18.8 FTE Support Staff
~163,742 Rev. over Exp.
~71 Operating Days
5 7
6 8
Scenarios – 15% FSP Reductions
3/21/2013 BOT Meeting 12
2
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Status Quo “Option B”
~528 Students
~45.3 Teaching Staff
~18.8 FTE Support Staff
~(678,416) Exp. over Rev.
~13 Operating Days
~606 Students
~50.3 Teaching Staff
~18.8 FTE Support Staff
~(452,808) Exp. over Rev.
~28 Operating Days
~577 Students
~45.3 Teaching Staff
~18.8 FTE Support Staff
~(314,457) Exp. over Rev.
~41 Operating Days
~663 Students
~50.3 Teaching Staff
~18.8 FTE Support Staff
~(31,147) Exp. over Rev.
~57 Operating Days
9 11
10 12
Scenario’s Conclusion
•Only Scenarios 2, 4, and 8 have positive cash flow
•Whether a 5%, 10%, or 15% FSP Funding
Reduction, Option B + 2 new students per class
(22 per class) provides the best financial
outcome.
•The only scenarios that positively cash flow (2, 4,
and 8) require 22 students/class in grades 1 – 12.
•All other scenarios require use of Fund Balance
3/21/2013 BOT Meeting 13
Fund Balance
•Board Policy – “General Fund Undesignated Fund
Balance – The Academy will strive to maintain the
General Fund undesignated fund balance at 45
days of operation.”
•Current Fund Balance = $767,490
3/21/2013 BOT Meeting 14
Fund Balance Financial Impact
3/21/2013 BOT Meeting 15
Scenario's FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21
Scenario 1 $ 960,388 $ 592,383 $ 88,893 $ (591,685) $ (1,300,298) $ (2,024,382) $ (2,795,400) $ (3,596,937) $ (4,485,377) $ (5,407,631)
Scenario 2 960,388 985,268 874,662 577,516 262,658 (57,040) (414,498) (791,245) (1,260,210) (1,751,538)
Scenario 3 960,388 863,848 861,611 696,142 516,908 336,904 142,879 (65,586) (288,924) (527,582)
Scenario 4 960,388 1,319,019 1,786,327 2,083,020 2,378,402 2,685,840 2,992,471 3,298,270 3,603,212 3,907,272
Scenario 5 960,388 437,178 (221,519) (1,061,959) (1,935,230) (2,828,911) (3,773,953) (4,754,735) (5,821,479) (6,927,386)
Scenario 6 960,388 815,600 535,325 63,421 (431,438) (936,536) (1,484,230) (2,056,919) (2,720,755) (3,412,800)
Scenario 7 960,388 685,714 500,052 145,655 (228,174) (608,613) (1,009,084) (1,430,188) (1,872,546) (2,336,793)
Scenario 8 960,388 1,124,130 1,390,728 1,480,690 1,563,140 1,651,258 1,731,989 1,805,111 1,870,395 1,927,608
Scenario 9 960,388 281,972 (531,931) (1,532,233) (2,570,161) (3,633,440) (4,752,506) (5,912,533) (7,157,580) (8,447,141)
Scenario 10 960,388 645,931 195,989 (450,673) (1,125,534) (1,816,033) (2,553,962) (3,322,593) (4,181,300) (5,074,062)
Scenario 11 960,388 507,580 138,493 (404,832) (973,257) (1,554,129) (2,161,046) (2,794,791) (3,456,167) (4,146,005)
Scenario 12 960,388 929,241 995,130 878,361 747,879 616,676 471,506 311,951 137,578 (52,057)
Other Choices: Expenditure
Reduction
•PYP Page - 16
–Specials art, library, and music - approximately
$160,000 cost reduction
–Spanish begins in Grade 2 – approximately
$30,000 cost reduction
•Other Page - 19
3/21/2013 BOT Meeting 16
WA Expenditures Structure
•Driven by past decisions
–Salary levels
•Internationals’ Stipends
–Staffing levels
–Quality of facility materials drives maintenance
costs
3/21/2013 BOT Meeting 17
Conclusions
•Centrist approach
•Scenario 8 makes the most sense
–Allows implementation of Option B
–22 students/class in G1-12 avoids use of Fund
Balance and can still incurs a 10% FSP reduction
–Positions us best financially from a solvency
standpoint; meets BOT financial policy
–Maintains educational quality with lower class size
than surrounding public schools
3/21/2013 BOT Meeting 18
Discussion
•Questions
•Feedback
•Board Direction
3/21/2013 BOT Meeting 19