At the May 2014 meeting, the board approved the revised five-year forecast, which must be updated every year. The forecast shows revenues are up $3.6 million this fiscal year due to several different sources. It also shows revenue increases of $3.1 million in fiscal years 2015-18, the other years covered in the forecast. In addition, expenses for this year are down slightly over $600,000, but this is really a trade as textbook purchases of $636,000 have been delayed until next year.
For compensation, the current forecast includes the estimated amount for “steps” in the budget, which is appr. 2% of the compensation budget. The district is currently in negotiations with the union for the next contract; the current contract expires this fiscal year. We are estimating a 10% increase in benefits as a best-guess moving forward with the new self-insured health plan.
When the Milford school district community passed the operating levy last May, the district promised to work to stretch those levy funds at least four years. Under this forecast, this is definitely possible. Treasurer Debbie Caudle has been realistic yet conservative in her projections, and the forecast shows a balance at the end of FY2018 of $3.3 million – significantly better than it has been.
However, it is also important to note how tight our budget is: even with the increases in revenue we received this year and expect to receive over the next four years, our ending balance in FY2018 is only just stable. If these assumptions hold true, a levy will be needed no later than that year to carry us on in the black.
The current board and administration are committed to managing our funds wisely to continue to provide a high level of education while keeping expenses reasonable.
Here is the Powerpoint Mrs. Caudle presented to the board: Five_Year_Forecast 2014 Board Presentation May 2014