Beruflich Dokumente
Kultur Dokumente
Madonna University
EDU 7610
October 5, 2016
Running Head: FINANCIAL ANALYSIS OF DETROIT PUBLIC SCHOOLS 2
Detroit public school funded under the Proposal A that approved by Michigan
voter in 1994.The aim of Proposal A is to shift the school funding from local
districts that put pressure on school funding especially with the economic
Manager. The district suffers from deficits in general funds because the
,pensions, and facilities. Also the district creates a plan to solve the reduced
funding.
The expenditure were less than the final budget expenditures due decreasing in spending and
federal funding. There is a decreased in net position due to decreased in property tax revenues,
general revenues and interest payments on long-term operating debt. As a result the district
reduced expenditures in instructional; and non-instructional areas. The Emergency manager, the
Board of education and the administrations must evaluate districts needs and balance those needs
There is a separate fund for general operations, food services, debt services, and capital
projects. The objectives of this funds is to provide information that help in assessing the
financing requirements. In 2015 there is an increase in fund deficit compare to the other years
Running Head: FINANCIAL ANALYSIS OF DETROIT PUBLIC SCHOOLS 3
due to increase in general fund revenue and decreased in total expenditures. The district needs to
continue in reducing staff and other expenditures in eliminating the deficits. The district plan to
address the deficits by budget reductions and revenues enhancement strategies that include staff
Revenues:
Revenues
800,000,000
FY2013
600,000,000
FY 2014
400,000,000 FY2015
200,000,000
0
Local Sources State Sources Federal Sources Total Revenues
Based on the above graph the general fund revenues for the fiscal year 2015 was $660,394,413
lower than 703,332,653 for the fiscal years 2013 and 641.866.464 for the fiscal year 2014 due to
decreased in local sources. However if we compare the local sources revenues for the fiscal year
2015 we notice that the percentage decreased 8.5 % compare to the other fiscal years 2013 and
2014. Also, the State sources revenues(408,734,474) decreased 5.6% compared to the fiscal year
2013 it was $ 408,734,474.Finally the Federal sources (169,259,155 ) decreased 5.7% compared
Expenditures:
Current Expenditures
400000000
350000000
300000000
250000000
200000000
150000000
100000000
50000000
0
expenditurs
Total expenditures
730,000,000
710,000,000
700,000,000
FY2013 FY2014 FY2015
The total Expenditures for the fiscal year 2015 ($714,030,093) decreased 1.6% compared to the
fiscal years 2013 (725,557,870) and 2014 (721.254.403 ) the decreased 1.5% is due to the
Districts cost effort. As we notice the Instruction decreased 1.7% and the community services
decreased 44,1%. However, the support services increased 4.4% and the Athletics increased
appropriations at the legal level of budgetary control. Budget expenditure were decreased -8.4%
Running Head: FINANCIAL ANALYSIS OF DETROIT PUBLIC SCHOOLS 5
on the net basis due to athletics operation and maintenance, school administrators and
community services.
0
-50,000,000
-100,000,000
FY2013
-150,000,000
FY2014
-200,000,000 FY2015
-250,000,000
Fund Balance
FY2013 FY2014 FY2015
-17578540
-46471610
-75578383 -76303384
-93881924 -93881924
-169460307 -169460307
-215931917
The net change in fund balances over the three years increased to
(46,471,610) due to inability to meet the future operational needs. Also over
the last three years The fund balance deficits of the beginning of school
Enrollment:
FTE's
FTE's
49,873 48,904 47,238
Based on the above graph we notice there is a steady declining K-12 funded student membership.
The enrollment showed that there is a significant declining the FTEs decreased from 49,873 for
2013 to 48,904 for 2014 and 47,238 for 2015 the percentage of decreasing -5% change .The
district suffers from a declining in students enrollment is due to increased number of charter and
private schools, also the surrounding districts began to accept Detroit residents. In addition to
that some of Detroit residents to moved to another districts such as Dearborn and Dearborn
Heights that get more funds for students. The district believes that the best way to mange the
safe and clean environment, developing more efficient and effective organization, and improving
student achievement.
Running Head: FINANCIAL ANALYSIS OF DETROIT PUBLIC SCHOOLS 8
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000 Local sources
0
State sources
Federal sources
All Sources
According to the above table Detroit public schools get less local sources
than the other districts while they get more federal sources than the other
districts. While they get the highest average in all sources compared to other
districts.
basic programs and total instruction were less than the other districts .While
General Fund
300,000
250,000
200,000
150,000
100,000 Detroit Public schools
50,000 Dearbon City District
0
Gross pointe Public Schools
River rouge School District