INTRODUCTION:   Good evening. We could easily spend a couple of hours talking about school finance, but for the purpose of tonight’s presentation, we will take an abbreviated look at our finances. Beginning with some revenues and expenditures facts ----then I will talk about some past and projected trends---followed by the financial forecast and lastly---I will end my presentation with a brief conclusion.

Revenues:   Let’s begin with revenues for fiscal year 2009.   For 2009 the District received closed to $72 million dollars---of that----80% came from the property taxes ---16% from State Foundation and the remaining 4% from interest and other revenues.

If you further breakdown the revenue into two categories, Local and State, you will notice that most revenues are being generated locally while the state remains stagnant as shown on this graph. This helps illustrate two things: How reliant we are on our residents to provide financial support How the State maintains funding schools at the same level from year to year with little or no adjustments for inflation.

 How FY09 revenues compare to FY08?   Overall revenues were up 1%, but revenues from interest and other categories were down a total of 73%, while property tax collections increased by 3%.   This is an indication of the current economic times.

Now, let’s take a look at our expenditure for FY2009  Total expenditures amounted to slightly over $75 million--of that---82% were for salaries and benefits and the remaining 18% for discretionary expenditures such as purchased services, supplies and equipment.   Like in many other school districts, over 80% of the general fund budget is related to services for instruction.

How FY09 expenditures compare to FY08?   Again total expenditures in FY09 were over $75 million, which represents an increase from FY08 of 6.7%   The increase related to the “Other” category, 49%, is mostly related to county fees. Health and Dental benefits increased 7%, which has been constant from prior years. Lastly, per pupil expenditures increased 7% in FY09.

Furthermore, if we categorized expenditures, 86% of revenues are being spent toward instructional/pupil support and operation support. 12 % toward administration and the remaining 2% for staff support.

Let’s see the history of property values update changes, which happens every three years. As you can see on this graph, property value changes have been in the double digits from 1993 to 2005, but that is not the story in 2008, the change was only 2.36%, which has an impact on property tax collections.   This is also an indication that the next re-appraisal year, which is in 2011, we could see property values to go up by a lower rate than the one for 2008 or perhaps we could see no increase at all.  

Because of current economic times is affecting property values, we are projecting property tax collections to be minimal from FY2010 to FY2014 as shown on this graph.

 Let’s take a look at our finances from FY1999 to FY 2009. In 2003 the district had an ending cash balance of about 40 million, but from that point on the ending cash balance started to drop. By the end of FY2009 the ending cash balance was below the 20 million and for FY2010, we are expecting an ending cash balance of less than 10 million as you will see on my next slide.

Our forecast is projecting a positive ending balance of over 8 million by the end of FY2010, but from FY2011 and thereafter, we are projecting negative balances.   In order to address these negative balances, the Board is placing an operating levy on the May ballot for 9 mills.

The projected ending balances with the additional dollars from the 9 mills are positive through FY2013, which tells us that a 9 mill operational levy could take us for another 3 years on the levy cycle.   It has been a tradition in Gahanna, to make levies last as long as possible.

The community, since 1968, has voted 60.50 mills at which today the district is collecting at an effective rate of 32.67.

How our effective rate compare with other districts?   This chart shows you just that. Among 16 county districts we rank number 14, leaving only two other school district below. Additionally, some districts also have school income tax collections as you can see at the bottom of this chart.

In conclusion Among some of the financial challenges facing the district are: Lower Real Estate values updates. Which means lower Real Estate revenues State budget deficit could mean additional cuts to education Slow recovery from recession.

Some of the district actions to the current economic times are : Creative financing for Clark Hall Implementing costs reduction measures districtwide. Refinancing all debt.

Lastly among some of the upcoming district actions are: An operation levy of 9 mills to address future negative cash balance. Stabilize District’s finances with the lowest possible mills. And lastly, accomplished the above with frugal management . -------------------------------------------------------------------- This concludes my presentation and now I will turn it over to Mr. Morris. Thank you.

Welcome to the 2010 Gahanna-Jefferson State of the Schools Presentation Gregg Morris, Superintendent

Clark Hall Additional space for GLHS students Cost: 18-20 million dollars Retail will be on the first floor 400 students, mainly juniors and seniors will have classes in Clark Hall

The income from Clark Hall’s first floor and two other office buildings built by a developer will reduce the building costs of Clark Hall.

Clark Hall Educational Programming A part of Lincoln High School Teaching and learning to fit today’s teenager. Flexibility in scheduling and course work Technology based instruction

More options during the summer, evenings, and weekends For all kinds of students The teacher will always play a vital role

Architectural Design A university and business environment Large classrooms for student space Conference rooms for projects Designed for flexible use into the future LEED certified as a “green” building

Clark Hall Endorsements Governor Ted Strickland State Superintendent of Instruction Deborah Delisle University Chancellor Eric Fingerhut

GJPS Goals To provide an excellent education and to be financially prudent

Academic Progress 26 of 30 State Indicators met Higher test scores Seven “Excellent” schools Each school met or exceeded state testing expectations

STATE OF THE SCHOOLS JULIO VALLADARES,MBA TREASURER/CFO GAHANNA-JEFFERSON CITY SCHOOL DISTRICT

Agenda Introduction Facts: Revenue Expenditure Financial Trends Financial Forecast Conclusion The Gahanna-Jefferson City School District stands for quality educational programs, quality athletic programs and extracurricular opportunities to it’s students. This presentation provides an overview of the finances utilized to operate the District. All information being shared is available to the public.

Local & State Revenues Trend

Revenues Comparison……

Expenditures Comparison……

Expenditures Breakdown……

Collection Real Property Taxes In Millions

Actual Trend

Forecast Unreserved Fund Balance

Projected Ending Balance With 9.0 Mills

Voted Vs. Effective Tax Rates Residential and Agricultural

Conclusion District facing financing challenges: Possible lower updates in Real Estate values for the year 2011 re-appraisal Real Estate revenues lower State budget deficit could mean additional cuts to education Slow recovery from recession

Conclusion District Actions Creative financing (Clark Hall)in dealing with economic challenges facing the District Implementing costs reduction measures District wide. Refinancing old debt.

Conclusion Upcoming Actions Address the negative 2011 balance by placing a levy on the May ballot (9.0 Mills). Stabilize District’s finances with the lowest possible mills. Accomplished the above with frugal management.

Economically Responsible A long history of stretching dollars and providing excellent instruction Clark Hall is an economical solution to crowding Over one million dollars in cuts have already been made

The GJPS Graduate Profile and Our Vision Examining education goals in Grades K-12 Improving student learning through data, interventions, and positive relationships

We want each student to be… A Responsible Community Member A Collaborative Team Member A Comprehensive Problem Solver An Effective Communicator A Proficient Technology User

Professional Training Continuing the training of our teachers in formative assessment Professional Learning Communities for teachers have been established in many of our schools. We have continued our training of teachers to assist students from poverty.

We continue to offer a strong entry year program to assist beginning teachers We have partnerships with 12 universities to help train college students who going to be educators Quality Assurance

A Partnership with Ohio Dominican University Dual credit courses Plans for other college level courses Plans for a Masters in Curriculum program designed around GJPS initiatives, taught in GJPS, for GJPS teachers, by GJPS personnel

Credit flexibility is being finalized for GLHS Mandarin Chinese I is now being offered to eighth graders Grades 2-5 have either Spanish or Mandarin Chinese offered as an option in all buildings We are currently in the process of improving our elementary grade card. Parent feedback is welcomed and encouraged! Continued implementation of a technology plan that improves technology usage at all levels. Our Character Education continues to grow at many levels. Continued Progress…

Guest Speakers June 2009 260 GJPS educators heard Dr. Tom Guskey speak about student assessment June 2010 GJPS is hosting Ian Jukes, an internationally known expert on using educational technology to enhance learning

The Future An “Excellent” rating Technology being used by students to create and to document progress New and exciting ways to teach and to learn A school system that continues to partner with the community and local and national businesses

In summary… A commitment to meet the needs of today’s GJPS students and to lay the foundation for future progress!

Our Vision The support of our community The construction of Clark Hall Progress on the state report card Financial security for the district