Tentative FY2014 General Fund Budget Balancing Plan

Transcription

1 April 29, 2013 Tentative FY2014 General Fund Budget Balancing Plan REVISED FY2014 BUDGET SHORTFALL Note: April 29 revisions are in red (Millions) $807.6 Revenue Tenative Budget Adopted by the Board 4/29/13 $887.2 Expenditure Budget Estimate on March 21, 2013 $2.4 Increase in Certified Health Insurance Premium from $912 to $945 per employee per month $4.4 Additional professional personnel based on FY2014 Projected Enrollment $894.0 Expenditure Budget Estimate on April 3, 2013 ($86.4) FY2014 Projected Budget shortfall as of April 3, 2013 Tentative FY2014 BUDGET BALANCING PLAN April 22 Budget Balancing 1st Revision - April 29 Budget 2nd Revision - April 29 Budget Balancing Balancing Proposed Proposed Proposed Proposed Position Proposed Position Proposed Position Reductions Reductions Reductions Reductions Reductions Reductions Descriptions and Comments General Fund Revenue Options 1 ($8,800,000) ($8,800,000) ($8,800,000) The district has received $8.8 in additional one time FY2013 State QBE Midterm Adjustment funding 1A ($3,470,230) Adjust Tax Digest to Reflect 0% Growth 2 ($10,000,000) ($10,000,000) ($10,000,000) General Fund Lapse Expenditures - (Prior Year Actual Expenditure Compared to Budget) Utilize $10 Million in General Fund Lapse Expenditures Fund Balance Reserve (General Fund) 3 ($22,200,000) ($22,200,000) ($22,200,000) Utilize Fund Balance Reserve Note: For the FY2013 Budget - One Month Fund Balance Reserve is 8.33% or $71 million Other Reductions 4 ($4,200,000) ($4,200,000) ($4,200,000) Budget beginning teachers with no experience at beginning salary step instead of average teacher salary Notes: FY2014 beginning teacher salary - $38,958 FY2014 average teacher salary - $56,055 ($75,000 with benefits) 5 ($5,000,000) ($5,000,000) ($5,000,000) Mid-Year Salary Step Increase for Eligible Employees (January 1, 2014) 6 ($15,500,000) ($15,500,000) ($15,500,000) Furlough Days 5 Furlough days for all employees - ($14,500,000) Note: Each Furlough Day for all employees = $2.9 Million Eliminate 5 Instructional days (transportation savings) - ($1,000,000) 7 ($527,199) General Fund Staff Development - Reduce by 25% - ($2,108,798 X.25 = $527,199) ($800,000) ($800,000) Reduce General Fund Staff Development Budget History FY2008 $2,565,166 FY2009 $2,674,762 FY2010 $2,094,652 FY2011 $2,044,652 FY2012 $1,920,318 FY2013 $2,108,798 Includes 1.5 staff development positions

2 April 22 Budget Balancing 8 ($100,000) General Fund Travel Budget - Reduce Travel - $100,000 CCSD Travel and Registration Budgets Total General Fund Travel Budget - $239,000 School Focused Staff Development Funds $2,108,798 FY2013 State Allotment less $572,088 FY2010 ($139,000) ($139,000) Reduce General Fund Travel Budget CCSD Budget Cut Central Office Travel/Registration $203,000 Magnet/IB Program Travel/Registration $36,000 Total Travel/Registration Budget $2,347,798 9 ($1,906,500) ($1,906,500) $0 Utilize Paraprofessional Positions for In School Suspension instead of Teacher Positions (41.00) (41.00) Cut 41 ISS Teacher Positions 41 x $75,000 = ($3,075,000) Add 41 Paraprofessional Positions 41 x $28,500 = $1,168, ($17,288,642) (226.00) Reduce 226 professional positions at schools ($14,917,191) (195.0) Reduce 195 professional positions at schools ($13,910,111) (182.0) Reduce 182 professional positions at schools 11 ($2,400,000) (24.00) Reduce 24 administrative contingency positions (24 X $100,000 = $2,400,000) ($1,400,000) (14.00) ($1,400,000) (14.00) Reduce 14 administrative contingency positions 12 Implement Proof of Concept for Virtual Learning in FY2014 $2,079, $2,079, Add 66 equivalent Online Teachers X $31,500 = $2,079,000 $1,650, $1,650, Add 66 Parapro positions for Online class supervision X $25,000 = $1,650,000 $250,000 $250,000 $250,000 Program Development - Less than $250,000 $409, Add 13 equivalent Online Teachers X $31,500 = $409,500 $325, Add 13 Parapro positions for Online class supervision X $25,000 = $325,000 Central Office Reductions 13 ($1,832,612) (12.50) Central Office FY2014 Reduction Total - ($1.8 Million and 12.5 Position reductions) ($2,095,112) (16.00) ($2,095,112) (16.00) Reduce Central Office Budget Central Office Statistics Note A: Central Office Cuts during the period of FY FY % Note B: Central Office Cuts during the period of FY FY2013 were more than double the percentage of total district cuts during that same time period Note C: Central Office Expenditure Comparison to other Metro Atlanta Districts: General Admin. Per Pupil Exp. Atlanta $1,342 Cobb $83 DeKalb $206 Fulton $181 Gwinnett $240

3 FY2014 Detail Central Office Cut Listing Detail to the Right>>> Administration Division Position Cuts Comments ($5,000) Supplies ($7,000) Other Purchased Services ($58,000) Contract Services ($70,000) Total Administration Division Operations Division ($65,033) (1.00) Technology Reorganization resulting in 1 position cut ($67,336) (1.00) Transportation Field Coordinator ($300,000) Savings from Utilities ($432,369) (2.00) Total Operations Division Human Resources Division ($46,600) (0.50) Elimination of 1/2 Supervisor for Evaluation Systems ($75,000) (1.00) Eliminate 1 HR Position ($48,913) Reduce property insurance ($170,513) (1.50) Total Human Resources Division Academics - Curriculum & Instruction Division ($11,000) Reduce C & I academic materials ($2,000) Reduce alternative Ed materials ($10,000) Reduce ESOL materials ($20,000) Reduce science supplies ($1,500) Reduce foreign language supplies ($10,000) Reduce EIP Supplies ($10,000) Reduce CTAE Supplies ($10,000) Reduce band materials ($10,000) Reduce music materials ($500) Reduce health/pe materials/supplies ($500) Reduce remedial summer school supplies ($40,000) Reduce substitutes for professional learning ($10,000) Reduce other purchased services ALP/AVID ($350,000) (4.00) Reduce 4 academic positions ($29,700) Reduce research/assessment materials ($62,500) Reduce Project 2400 program ($3,613) Reduce funds to support America's Choice ($10,000) Reduce mentoring professional development ($7,000) Reduce funds to support CRCT remediation ($598,313) (4.00) Total Academics - Curriculum and Instruction Division Leadership and Learning Division ($279,000) (2.00) Reduce 2 central office administrative positions ($279,000) (2.00) Total Leadership and learning Division Finance Division ($59,630) (1.00) Reduce 1 Accounts Payable Clerical ($38,720) Vacate 590 Commerce Park Lease - Move Audit Dept to 440 Glover ($57,179) (1.00) Reduce 1 Finance Clerical ($10,000) (1.00) Reorganize Int Audit function - 1 net position cut ($165,529) (3.00) Total Finance Division Audit Reorganization Summary -Cut 2 Internal Audit Positions & add 1 Compliance Accounting Mgr -Outsource Local School Financial Audits Academics - Special Education Division ($116,888) Supplies ($116,888) 0.00 Total Academics - Special Education Division Central Office ($262,500) (3.50) Positions to be determined Total Central Office Detail ($2,095,112) (16.00) Grand Total

4 April 22 Budget Balancing 14 ($42,506) ($42,506) ($42,506) Require Direct Deposit/Paperless Payroll for all employees - ($42,506) Note: The district will need to place paystubs online with this option. Total Employees 19,196 Employees currently on Direct Deposit 16,936 Employees currently receiving Paychecks 2,260 Savings Detail: Check stock $32,971 Toner $5,632 Info seal for check folder $1,670 Printer repairs (NC Office) $731 Printer Maintenance kits $317 Printer Maintenance labor $85 Mileage for Warehouse to deliver $1,100 Total Savings $42, ($502,390) ($502,390) ($502,390) Eliminate Hiring Bonus for Special Education Teachers and SLPs 16 ($7,300) ($7,300) ($7,300) Eliminate Artists at School General Fund Support 17 ($20,360) ($20,360) ($20,360) Reduce Postage by 15% FY2012 Budget FY2012 Actual General Fund Postage $135,737 $106,894 ($135,737 X.15 = $20,360) 18 ($51,491) ($51,491) ($51,491) Eliminate Recruiting Budget FY2012 Budget FY2012 Actual Human Resource Teacher Recruiting $51,491 $10, $754, Utilize 49% Teaching Positions to Reduce Class Size $75,000 Average teacher salary + benefits ($11,000) Health insurance ($6,000) TRS $58,000 Average full-time teacher salary - benefits $29,000 49% teacher salary ($86,400,000) (130.50) ($83,602,850) (93.00) ($86,400,000) (160.00) TOTAL TENTATIVE FY2014 REDUCTIONS ($2,797,150) ($0) Difference from the April 22 Budget Plan Note: Additional reductions need to be identified from "below the line" ideas ABOVE THE LINE - REVISED FY2014 BUDGET PROPOSAL BELOW THE LINE - ADDITIONAL BUDGET REDUCTION IDEAS NOT INCLUDED IN THE FY2014 PROPOSAL - SEE THE NEXT PAGES

5 Miscellaneous Budget Balancing Ideas - (BELOW THE LINE) The following items are NOT currently included as a reduction in the FY2014 Budget>>>>>> 19 ($6,895,834) (172.00) Eliminate Full Day Kindergarten Program Only provide 1/2 day program required by the State Positions Salary & Benefits Teachers (86.00) ($6,380,254) Parapros (86.00) ($2,327,762) Total (172.00) ($8,708,016) Transportation Cost $1,812,182 Total Savings ($6,895,834) 20 $20,000,000 Increase the General Fund Millage rate from to Mills - $20 Million 21 For Discussion Examine Legal Fee Budget Base Legal Fees $904,908 Legal Fees Litigation $880, ($10,000,000) No Salary Step for Eligible Employees 23 ($946,294) (17.00) Eliminate Grounds Maintenance Current in house cost is $946,294 and 17 positions Cost to outsource is $3.9 million - (Note: Outsourcing will produce no savings) 24 ($640,000) Eliminate Central Cell Tower Revenue - Currently the General Fund maintains 40% and the schools 60% District wide portion of Cell Tower Earnings for FY2014 (40%) - $640, ($468,911) Eliminate Testing Materials Testing Materials $468,911 Note: Includes testing materials for scoring and report, ITBS/COGAT Testing, Test Development, score reports for SAT, ACT, AP and PSAT. 26 ($2,643,200) (82.60) Eliminate All Media Paraprofessionals Elementary Middle High ($390,000) Eliminate Replacement Textbooks - (General Fund) Regular Textbooks are currently funded through the SPLOST Program. 28 ($360,096) (5.00) Eliminate Consulting Nurses 29 ($6,000,000) Implement a Four Day School Week - (Transportation Savings) 30 Fridays X $200,000 Transportation Savings Impact - Students would have a longer day 30 ($72,000) Eliminate AVID Program Funding 31 ($30,000) Eliminate Project Lead the Way - Walton HS 32 ($10,000) Eliminate America's Choice

6 33 ($75,000) Eliminate Mentor Teacher Program 34 ($141,481) Eliminate Local Supplement for National Board Certified Teachers $1,000 annual supplement paid to NBC teachers each December 35 ($481,123) Reduce Instructional Supply Allotment to Schools Current Rate/Proposed Rate Current Allotment Proposed Allotment Difference Elementary $32.00/$28.00 $1,547,904 $1,354,416 $193,488 Middle $40.00/$35.00 $978,160 $855,890 $122,270 High $48.00/$43.00 $1,596,744 $1,431,379 $165,365 $4,122,808 $3,641,685 $481, ($455,009) Reduce Recurring Software Budget by FY2012 Budget FY2012 Actual Recurring Software Budget $1,820,036 $1,502,253 (Examples - Accelerated Reader, Skills Tudor, etc.) 37 ($101,240) Eliminate Corrective Action School support for schools on a corrective action plan. 38 ($52,000) Eliminate the Drivers Ed Program 39 ($28,000) Eliminate 4H Program Funding 40 ($27,500) Eliminate Cobb Consortium Funding 41 ($15,000) Eliminate Funding for Cobb County Youth Museum 42 ($63,393) Eliminate General Fund Subsidy to the Cobb Schools Foundation Foundation Director Salary and Benefits $42,573 Accounting Overtime $12,820 Foundation Audit $6,000 Foundation Tax Return $2,000 $63, ($52,465) Eliminate Refresh of Science Consumables (Lab Kits) 44 ($75,000) Eliminate Funding for Safety Village 45 ($50,000) Eliminate Cobb Chamber of Commerce General Fund Support 46 ($2,300,000) Athletics - Eliminate Supplements for Coaches 47 ($247,000) Athletics - Eliminate Transportation 48 ($188,000) Athletics - Eliminate General Fund Support for Field Maintenance 49 ($27,000) Athletics - Eliminate General Fund Support for Ambulance Service ($12,835,546) (276.60) TOTAL BELOW THE LINE REDUCTIONS - APRIL 29, 2013 (Note: These reduction ideas are not included in this budget proposal) ($99,235,546) (407.10) TOTAL ABOVE & BELOW THE LINE REDUCTIONS - APRIL 29, 2013

7 FY2014 Budget Development Process - BUDGET RISKS FOR BOARD CONSIDERATION 1 FY2014 Budget - Digest Growth Estimate FY 2014 Budget Estimate (-1%) FY2014 Tax Assessor Estimate (-2.3%) (Note: The FY2014 Tax Digest Growth might be worse than -1% which would result in a decline in local property taxes). 2 Georgia School Board Association (GSBA) - Potential Mid-Year State Health Benefit Plan Cut GSBA has identified the possibility of a FY2014 Midterm State Health Benefit Plan Cut - Dollar amount unknown. 3 Additional Potential Mid-Year State of Georgia QBE Cut The State of GA Department of Education has implemented several mid-year cuts during the past several years. 4 Utilization of Expenditure Lapse (Budgeted line Items not spent) might result in greater use of fund balance in FY Utilization of Current Year Fund Balance for recurring expenditures will result in a smaller cushion to address district cash flow, emergencies and potential mid-year State revenue cuts. 6 Utilization of (one-time) Fund Balance money to fund recurring expenditures in the FY2014 Budget will result in a significant FY2015 Budget GAP.