Stories indexed with the term ‘deficit’

At its May 8, 2013 meeting, the Ann Arbor Public Schools board of education was presented with the third quarter financial report for FY 2012-13.

According to the report, the expenditure budget will be approximately $1.3 million higher than originally projected. The increase is due to a $700,000 increase to transportation costs, a $300,000 increase of the substitute budget, and an increase of $300,000 for the health care budget to cover anticipated usage through the remainder of the fiscal year.

The $1.3 million increase in expenditures comes after the trustees had already amended the budget by $2.5 million two months ago, on March 13, 2013, to account for the second quarter financial report.

At its next regular meeting, the board will be asked … [Full Story]

Ann Arbor Public Schools board of education regular meeting (Feb. 27, 2013): At a meeting that lasted until 3 a.m., the Ann Arbor Public School (AAPS) school board covered a variety of topics, including: an extensive report on high school issues; budget shortfalls; and budget reductions.

A report on high school scheduling got a mixed reaction from the board. While many trustees appreciated the work that went into the report, there was disappointment that no hard recommendations were made by the committee. No decisions were made on the issue of moving high school start times or moving Skyline High School from a trimester to a semester schedule.

And Robert Allen, deputy superintendent of operations, left the board reeling when he reported the district was just under $2.5 million over budget and needed to adjust the 2012-2013 budget. The discrepancy resulted from staffing adjustments and changes in funding from the state of Michigan.

Having been directed by the board at a previous meeting to explain better the implications of each item cut, Allen again reviewed some budget reduction options for the coming year.

The board was also briefed on the condition of physical properties and updated on the capital funding plan. Executive director of physical properties Randy Trent suggested the possibility of placing a combined bond and sinking fund millage on the ballot, instead of asking for a simple renewal of the sinking fund millage, levied currently at 1 mill. The idea would be to ask voters for the same amount – to cover the combined proposal – with the advantage that the bond revenues can be spent more flexibly.

The board was briefed on major purchases for projectors and copiers and voted to approve some purchases on which they’d already been briefed a their previous meeting – for AstroTurf and laptop computers.

The board also voted to place a discussion of a resolution on its agenda for March 13, which would express the board’s support for three district high school students who now face criminal charges as a result of a brawl at the conclusion of a football game last year.  [Full Story]

Washtenaw County board of commissioners meeting (Sept. 21, 2011): County administrator Verna McDaniel and the county’s finance staff formally presented the two-year general fund budget on Sept. 21, showing how the administration proposes to balance the 2012-2013 budget with a mix of labor concessions, fee increases and funding cuts. Previously, an estimated $17.5 million deficit had been projected for that two-year period.

Although the budget calls for a net loss of 32.22 full-time-equivalent jobs, most of those positions are either already vacant or will be handled through retirements, McDaniel said. One significant retirement was recognized during the meeting: Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s worked for the county for 20 years. Commissioners awarded her a resolution of appreciation, and also gave final approval to the CSTS budget for the coming year.

But the meeting’s main focus was the proposed general fund budget, which was discussed at length and will be the topic of most board meetings and working sessions at least through November. The county budget is based on a calendar year, from Jan. 1 through Dec. 31, and is developed in two-year cycles.

Among the recommended cuts is a reduction of $1.2 million to local nonprofits and other agencies. For example, funding for the Humane Society of Huron Valley’s contract is proposed to drop from $500,000 in 2011 to $250,000 in 2012 and 2013. The Delonis Center homeless shelter’s funding could decline from $160,000 to $25,000.

The budget also calls for the county to relinquish its status as the federal “grantee” for the Head Start program in Washtenaw County, which would trigger a process to find a replacement entity. The county has administered the program for 46 years. About a dozen Head Start supporters showed up to Wednesday’s meeting, and urged commissioners to continue support for the program.

Though commissioners had several questions and comments about the 2012-2013 budget, several of them expressed even more concern for what’s on the horizon: Projected deficits of $11.6 million in 2014 and $14.7 million in 2015.

Board chair Conan Smith characterized the 2012-2013 budget as a recommendation that’s “ripe for public discussion at this point.” Everything is still on the table, he said. The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for Oct. 19. The target date for approving the budget is Nov. 16.

There was no vote taken on the 2012-2013 budget directly, but the board took action on several other budget-related items. Among them, commissioners gave final approval to levy two taxes: for (1) services for indigent veterans; and (2) economic development and agriculture.

The board also passed a resolution in support of developing a regional transportation authority, after a failed attempt to postpone the vote. The resolution is a prelude to a Sept. 30 summit with Detroit and the counties of Wayne, Oakland, Macomb and St. Clair, which will focus on region transit issues.

Two issues of note did not come before the board as expected. A proposed reorganization of county administration was pulled from the agenda at the start of the meeting. It would have replaced the deputy administrator position by giving additional responsibilities to four managers, paying them annual stipends of $15,000 each. The stipends were a sticking point – during public commentary, AFSCME Local 2733 president Caryette Fenner objected to the timing of that pay, in light of recent labor concessions made by employees.

And not on the agenda was an anticipated proposal by the Washtenaw County Road Commission, which was discussed by the board at its Sept. 8 working session. The road commission is presenting a request for a countywide millage to help pay for road repair. It’s a tax that the county board could impose without seeking voter approval. The plan was subsequently submitted to the county clerk on Friday, and could be addressed at the board’s Oct. 5 meeting. [Full Story]

Ann Arbor Transportation Authority board meeting (Sept. 15, 2011): With four of its seven members in attendance, the AATA board had just enough members present to transact two major pieces of business for the coming year. The board approved its 2012 fiscal year work plan and the budget that will support that plan.

The AATA fiscal year runs from Oct. 1 through Sept. 30. The budget approved by the board calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. At the meeting, members stressed that the nearly $1 million deficit was due to one-time expenses associated with the planned transition to a countywide service. They also stressed that even by using unrestricted reserves over the next year to cover the planned deficit, the AATA would still be left with more than three months’ worth of operating expenses in its reserve.

Incurring a deficit this year was characterized as a way to “catapult” the organization forward, allowing it to pursue an aggressive work plan for the coming year, which was also approved at the meeting. Highlights of that work plan include reconstruction of the Blake Transit Center in downtown Ann Arbor. Design for the station is expected to be complete by the end of the year, with construction to start in spring 2012.

In terms of increased service, next year’s work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metro Airport; improving work-transportation connections between Ann Arbor and Ypsilanti; and continuing work on commuter rail. Also related to enhanced services, the AATA is also holding rider forums in October to get feedback on proposed increased service on Route #4, between Ann Arbor and Ypsilanti.

Related specifically to commuter rail, the board received an update at the meeting on the Washtenaw Livingston Line (WALLY) project, a proposed north-south commuter rail connection between Howell and Ann Arbor. The board expressed some caution about the project by passing a resolution that requires the board’s explicit approval for the expenditure of the $50,000 in next year’s budget allocated for station designs.

In other business, the board approved the selection of Plante & Moran as its new auditor. A new auditor rotation policy put in place by the board earlier this year made the previous auditor, Rehmann Robson, ineligible for the contract. The AATA board also approved a contract with an outside vendor to begin offering vanpool service.

In business that could be described as housekeeping, the board opted to keep its same slate of officers for the coming year and to keep the same meeting schedule – the third Thursday of the month. Jesse Bernstein was elected chair last year, and will continue in that role.

Also at the meeting, other members of the financial review group were announced. That group will be analyzing funding options for an expansion to countywide service. Previously, it had been announced that McKinley CEO Albert Berriz and former Washtenaw County administrator Bob Guenzel would co-chair the group. Their first meeting was Friday, Sept. 16, the day after the AATA board met. Berriz stated at that first meeting that the group will meet three more times, and will produce a white paper by the end of this year.

Related to that countywide effort, the initial board for an unincorporated transit authority – a precursor to an eventual formal authority – could be seated by Oct. 20, the date of the AATA board’s next meeting. It would include representatives from Ann Arbor, Ypsilanti, and other districts throughout the county. [Full Story]

At its Sept. 15, 2011 meeting, the Ann Arbor Transportation Authority board approved its operating budget for the 2012 fiscal year, which runs from Oct. 1 through Sept. 30. In a separate vote, the board also approved the AATA work plan for the year.

The budget calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. That shortfall will be made up by drawing on the fund balance. According to the budget resolution, the AATA’s fund balance policy requires it to maintain reserves equal to at least three months’ worth of operating expenses. And the AATA expects to have $1.2 million more in its fund reserve to start the year than that minimum fund balance policy requires. So the projected deficit – which the budget resolution attributes partly to one-time expenses associated with the transportation master plan – is within the $1.2 million excess beyond the minimum three-month reserve, which the AATA holds in its fund balance. [.pdf of AATA 2012 operating budget]

During  deliberations, the four board members present stressed the unique, one-time nature of the deficit budget.

In the most significant categories, the AATA’s revenues break down percentage-wise as follows: 31.4% local transit tax; 29.4% state operating assistance; 18.6% passenger fares; 12.8% federal operating assistance. The AATA also receives some revenue from surrounding municipalities that get transit service through purchase of service (POS) agreements. [2012 AATA revenue pie chart]

In the most significant expense categories, the AATA’s expenses break down percentage-wise as follows: 54.7% employee compensation; 18.2% purchased transportation from other providers; 9.3% other purchased services; 5.7% diesel fuel and gasoline. [2012 AATA expenses pie chart]

In a separate vote, the AATA board also approved the 10-page work plan for the fiscal year. Highlights include reconstruction of the Blake Transit Center in downtown Ann Arbor. In terms of increased service, the work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metropolitan Airport; improved work-transportation connections between Ann Arbor and Ypsilanti; and continued work on commuter rail.

The plan also calls for continued work on the AATA’s information technology, including its website as a communication tool and improved point-of-sale systems to allow people to pay for their fares. [.pdf of work AATA 2012 work plan]

This brief was filed from the downtown location of the Ann Arbor District Library, where the AATA board holds its meetings. A more detailed report will follow: [link] [Full Story]