But there was also a presentation from Public Financial Management, the firm hired by the state to help the committee and Chief Recovery Officer Dave Meckley with the process.
Dean Kaplan, with PFM, explained that the firm was starting by providing a baseline look at district finances, to help look at the district’s situation long-term instead of year to year.
PFM projects district expenses to grow from about $110 million in 2013-14 to almost $140 million in five years, Kaplan said.
But revenue is projected to be $107 million in 2013-14, and it won’t grow to even $120 million in five years.
“The growth in the revenue side is pretty sluggish,” Kaplan said.
Those numbers were determined making some assumptions, such as:
- no tax increases
- no base wage increases for staff after the ones contracted for 2013-14
- Student growing at 1 percent per year, and charter enrollment growing by 8 percent per year
- basic education funding growing by 2 percent each year
- state reimbursement for pension costs remaining steady
So, projected deficits could grow from about $4.5 million next year to about $20 million in 2018.
You can see the entire PFM presentation here.