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9 P Solving the financial puzzle requires ongoing work in several areas. A successfullery is an important J}iece, but levies only fund 10 percent of the District's budget. Even with a successfUl levy, funding shortfitlls are expected in the near future. legislative support: . Legislative action is needed to revamp the funding formula to support districts with declining enrollment. . Because of declining enrollment, the recenr 4% funding increase from the Legislature produced only $600,000 in new money for Mounds View's 11 schools. , Downsizing: Over the last 10 years, Mounds View has reduced expenses by $20 million. That's about 2.3% of the General Fund budget reduced each year. 1996-2006: A decade of differences . Closed 2 schools . Created transportation fees-$200 . Raised class size averages" for service beyond state requirement -28 in elementary schools (increase of 4) e Cut World Language classes from -35 in middle school core classes (increase of 10) elementary and middle schools -36 in high school core classes (increase of 5) @ Cut 20 positions from central . Raised activity fees: administrative services -$150-$320 for athletics (jocrease of$100-$270) I) Cut 8 positions from central -$90 for fine arts (increase of $40) maIntenance . Ar'emges bmed 011 AlIg/IJ1 } 5,2006, projectioll$ Aij Legislative support Downsizing cis Vl PUBLIC Providing employee compensation in a competitive marketplace Employee compensation: . The District needs to balance its financial constraints with the challenges of providing employee compensation in a competitive marketplace that struggles (like private industry does) with the rising costs of health care. . Like most school districts, the greatest expense is related to employee compensation. For Mounds View, more than 70% of the General Fund budget goes to salaries and benefits. . Last year, teacher salaries in Mounds View ranked 320d out of 50 metro districts. Employee benefits ranked 29.1'. . Mounds View reformed teacher salaries by becoming the 4"1, district in the state to join the governor's Q Comp program. Now compensation is tied to performance. CHO Voters approve a levy Levy: For Mounds View, an important piece of the financial puzzle is levy support from voters. On November 7,2006, residents will consider an operating levy request. Why? An expiving levy that has not been atijusted fOr inflation will soon leave the schools with a loss of more than $3 million a year. Funding shortfalls will continue as enrollment and revenue continue to decline. Without the levy, the District expects shortfalls of $5 million and $10 million in the next two years. Class sizes are rising. Averages this fall': Elementary schools 28 students Middle school core classes 35 students High school core classes 36 students . Averages baled 011 AligNS! 15, 2006, projmiolls.