Funding Projections

Funding Projections

Funding Projections

MPS is now, in fact, projecting another deficit as it plans for the 2018-2019 school year. Due to the cumulative effects of years of deficits without significantly changing our budgeting strategy, we project an upcoming $33 million deficit for the next school year.

Here’s what makes up that $33 million:

  • We made difficult one-time cuts last year, but didn’t change ongoing costs, so last year’s $16.5 million deficit continues into FY 18-19
  • The inflationary costs of annual salary increases committed in collective bargaining agreements will be an estimated $10 million
  • And then the associated increases in salary benefits are estimated to come in at around $7 million
  • Other inflationary costs such as utilities and fuel are not yet included in these estimates

Our basic infrastructure — the programs and services we offer — continues to exceed our available resources. This has to change and MPS has committed that we will structurally balance our revenue and expenses by the 2019-2020 school year.

FY 2018-19 Funding Projections

FY 2018-19 Funding Projections. In FY18-19 projected expenses are $635.2 million; projected revenues in FY18-19 are $602.2 million, resulting in a deficit of $33 million compared to an available fund balance of $25.5 million.

 

Projected FY 2018-19 Deficit

Projected FY 2018-19 Deficit. The ongoing deficit is $16.5 million; projected salary increases are $10 million, and the projected increase to benefits is $7 million. Total expenditures are $33 million.