FY2019 Approved Operating Budget June 12, 2018

Transcription

1 FY2019 Approved Operating Budget June 12, 2018 Board of Education Barbara S. Palko, Chairman Jennifer S. Abell, Vice Chairman Mark J. Crawford Victoria T. Kelly Michael Lukas Margaret T. Marshall Virginia R. McGraw Krisha Patel, Student Member Charles County Public Schools Dr. Kimberly A. Hill, Ed. D Superintendent Randolph A. Sotomayor Assistant Superintendent of Fiscal Services The Charles County Public Schools Operating Budget was prepared by the Office of Fiscal Services. If there are questions regarding this document, please contact Randolph A. Sotomayor, Executive Director for Finance, Business Administration, P.O. Box 2770, La Plata, MD The Charles County public school system does not discriminate on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity, age or disability in its programs, activities or employment practices. For inquiries, please contact Dr. Patricia Vaira, Title IX/ADA/Section 504 Coordinator (students) or Nikial M. Majors, Title IX/ADA/Section 504 coordinator (employees/adults), at:charles County Public Schools, Jesse L. Starkey Administration Building, P.O. Box 2770, La Plata, Maryland 20646, or by phone: (301) or (301) For special accommodations call (301) or TDD two weeks prior to the event. 1

2 Contents TRANSMITTAL LETTER... 3 ACTION ITEM FOR THE BOARD OF EDUCATION... 4 Attachment: FY 2019 Budget Planning Model... 5 Attachment: Operating Revenue... 6 Attachment: Operating Budget by Category and Object Code... 7 Attachment: Full-time Equivalent Staff... 8 REVENUE INCREASES... 9 County Funding... 9 State Funding... 9 Fund Balance Transfer... 9 Food Service Meal Price Increase... 9 Restricted Funds... 9 MANDATORY COST INCREASES Health Insurance Bus Contracts Teachers' Pension (SB1301) Non-Public Placement Tuition Maryland Association of Boards of Education (MABE) Insurance Premium Increase 12 Nurses Contract COLLECTIVE BARGAINING ASSUMPTIONS Reserve for Collective Bargaining OTHER COST INCREASES Teachers for Enrollment Growth Capital Projects ASPIRE Program English Language Learners and Special Education Instructional Assistants Psychologists Communications Television Equipment BUDGET REDUCTIONS Lapsed Salary Savings Target PRESENTATION 2

3 TRANSMITTAL LETTER 3

4 ACTION - OFS June 12, 2018 Attachments ACTION ITEM FOR THE BOARD OF EDUCATION SUBJECT: Revised FY 2019 Operating Budget OVERVIEW: Attached is the final FY 2019 operating budget for consideration by the Board of Education (BOE). Expenditure increases included in this budget are: a teacher salary scale conversion, a cost-of-living adjustment for all other employees, mandatory increases for health insurance, state-mandated teachers pension contribution and mandatory school bus replacements. This budget supports student enrollment growth, the ASPIRE program, capital projects, school psychologists and additional instructional assistants for special population students including one-time funding to upgrade television equipment. The budget is balanced with reliance on fund balance and a lapsed salary savings target. BUDGET IMPLICATIONS: The FY 2019 operating budget of $369.6 million represents an increase in funding of $17.4 million (4.9 percent) over the FY 2018 budget. Of this amount, state funding is assumed to increase $11.7 million (7.0 percent) based on the Maryland State Department of Education final allocation on June 8, 2018 and approved county funding increases of $6.6 million (3.8 percent). This budget includes a reduction in the requirement to transfer in fund balance of $1.0 million over the amount that was needed in FY In the Food Nutrition Services program, lunch prices will remain the same as the current fiscal year until the required Federal price subsidy is determined. STAKEHOLDERS INVOLVEMENT: Board of Education (BOE), students, parents, teachers, staff, Charles County Commissioners, the Maryland State Department of Education, the Education Association of Charles County (EACC) and the American Federation of State, County and Municipal Employees (AFSCME) collective bargaining units. RECOMMENDATION/FUTURE DIRECTION: It is recommended that, prior to the start of the new fiscal year, the BOE approve the recommendations included in the FY 2019 Operating Budget and forward to the County Commissioners for categorical approval. This budget is subject to change based on final funding from the state. 4

5 Attachment: FY 2019 Budget Planning Model DESCRIPTION FY2019 COST BASE REVENUE BUDGET $ 352,242,260 REVENUE INCREASES: County Funding - Additional Base 2,596,140 County Funding - Maintenance of Effort student increase 3,876,900 One-time, Non-recurring Additional County Funding 166, % TOTAL ADDITIONAL COUNTY FUNDING 6,639,540 7% STATE FUNDING (MSDE Final) 11,823,588-8% STATE FUNDING -Non-public Tuition Reimbursement (OLS Estimate 4/5/2018) (107,527) LOCAL REVENUES FUND BALANCE TRANSFER (total base transfer requirement $3.2 M ) (1,000,000) TOTAL REVENUE INCREASES: 17,355,601 TOTAL REVENUE BUDGET 369,597,861 Percent Increase 4.9% BASE EXPENDITURE BUDGET $ 352,242,260 MANDATORY COST INCREASES: - 5.4% Health Care Costs 2,000, % Bus Contracts (25 replacement buses and 3 special education routes, driver salary) 1,572, % Teachers' Pension (SB1301) - State Retirement Agency 865, % Non-public Placement Tuition 336, % MABE Insurance Premium Increase 181, % Nurses' Contract 103,700 TOTAL MANDATORY COST INCREASES: 5,059,350 COLLECTIVE BARGAINING ASSUMPTIONS: Reserve - Collective Bargaining - Teacher Salary Scale Conversion, No STEP, 2.75 Percent COLA, for eligible employees FY 2011 STEP owed. 9,615,100 TOTAL COLLECTIVE BARGAINING ASSUMPTIONS: 9,615,100 OTHER COST INCREASES: Teachers for Enrollment Growth (460 FTE student increase; 25 to 1 average student to teacher ratio) 28 Teachers 1,814,400 Capital Projects (Restore base budget) 1,070,000 ASPIRE Program (2 Teachers, 2 Instructional Assistants, 2 Psychologists) 421,000 Instructional Assistants (5 English Language Learners and 5 Special Education) 331,000 Psychologists (2) 216,300 Communications - Television Equipment - Non-recurring Cost Exclusion 166,500 TOTAL OTHER COST INCREASES: 4,019,200 BUDGET REDUCTIONS: LAPSED SALARY SAVINGS TARGET (1,338,049) TOTAL BUDGET REDUCTIONS: (1,338,049) TOTAL EXPENDITURE BUDGET 369,597,861 NET SURPLUS/(DEFICIT) - Note: FY 2018 Base Budget includes $25,060 additional funding for the Center for Children training 5

6 Attachment: Operating Revenue *** APPROVED *** FISCAL YEARS DESCRIPTION FINAL $ BUDGET BUDGET VARIANCE $ % CHANGE GENERAL FUND 50 - STATE REVENUES STATE-NONPUBLIC SPEC ED 1,292,656 1,301,900 1,194,373 (107,527) -8.3% STATE-FOUNDATION PROGRAM 106,585, ,084, ,700,280 4,616, % STATE-SPECIAL ED FORMULA 7,312,017 8,247,138 8,816, , % STATE-TRANSPORTATION 10,781,197 10,889,250 11,276, , % STATE-COMPENSATORY AID 31,967,559 32,049,847 34,227,033 2,177, % STATE-OUT OF COUNTY 59, (0) 0.0% STATE-MEDICAID REVENUES 1,105, , ,000 (0) 0.0% STATE-LIMITED ENGLISH 1,726,345 2,159,880 2,860, , % STATE-GUARANTEED TAX BASE 220, ,596,663 1,596, % STATE-GCEI 3,547,566 3,579,100 3,685, , % STATE-NET TAXABLE INCOME 1,584,503 3,941,805 5,612,105 1,670, % 50 - STATE REVENUES Total 166,182, ,143, ,859,095 11,716, % 51 - FEDERAL REVENUES FEDERAL-IMPACT AID 307, , ,000 (0) 0.0% FEDERAL-R.O.T.C. 427, , ,000 (0) 0.0% FEDERAL-SP ED IMPACT AID 44,319 64,000 64,000 (0) 0.0% 51 - FEDERAL REVENUES Total 778, , ,000 (0) 0.0% 52 - LOCAL REVENUES PRIOR YEAR FUND BALANCE TRANSFER 0 4,201,086 3,201,086 (1,000,000) -23.8% TUITION-SUMMER YOUTH CAMP 26,074 30,000 30,000 (0) 0.0% TUITION-SUMMER SCHOOL 108, , ,296 (0) 0.0% TUITION-OUT OF STATE 185, , ,400 (0) 0.0% TUITION-PARENT PAYMENTS 97, , ,100 (0) 0.0% INTEREST INCOME 181, , ,880 (0) 0.0% RENT-SCHOOL FACILITIES 224, , ,000 (0) 0.0% PAYROLL TRANSFERS 82, , ,000 (0) 0.0% SALE OF PROPERTY 51,625 36,000 36,000 (0) 0.0% TUITION-OTHER MD COUNTIES 227, , ,704 (0) 0.0% MISCELLANEOUS REVENUE 36,214 65,000 65,000 (0) 0.0% RESTITUTION 43,626 20,000 20,000 (0) 0.0% REBATES 67,779 51,700 51,700 (0) 0.0% VENDING COMMISSIONS 100, , ,000 (0) 0.0% TUITION-NOVEL ,000 20,000 (0) 0.0% 52 - LOCAL REVENUES Total 1,433,811 5,620,166 4,620,166 (1,000,000) -17.8% 53 - LOCAL COUNTY APPROPRIATIONS COUNTY-SUPPLEMENT 130, , , % COUNTY-APPROPRIATIONS 170,474, ,509, ,982,100 6,473, % 53 - LOCAL COUNTY APPROPRIATIONS Total 170,604, ,509, ,148,600 6,639, % GENERAL FUND Total 338,999, ,242, ,597,861 17,355, % FOOD SERVICE * 13,257,639 13,448,739 13,613, , % RESTRICTED 16,851,209 14,969,831 14,740,698 (229,133) -1.5% Grand Total 369,108, ,660, ,951,832 17,291, % *Note: Includes no price increase 6

7 Attachment: Operating Budget by Category and Object Code CATEGORY *** APPROVED *** FISCAL YEARS DESCRIPTION FINAL $ BUDGET BUDGET VARIANCE $ % CHANGE GENERAL FUND 01 - ADMINISTRATION 9,505,305 9,757,682 10,441, , % 02 - MID-LEVEL ADMINISTRATION 22,626,638 23,408,315 24,626,280 1,217, % 03 - INSTRUCTION 71 - SALARIES & WAGES 127,074, ,150, ,544,983 5,394, % 73 - SUPPLIES & MATERIALS 4,429,064 4,297,148 4,303,877 6, % OTHER INSTRUCTIONAL COSTS 1,633,695 2,467,519 2,388,290 (79,229) -3.2% 03 - INSTRUCTION Total 133,137, ,914, ,237,150 5,322, % 04 - SPECIAL EDUCATION 33,177,568 35,568,075 37,875,310 2,307, % 05 - STUDENT PERSONNEL SERVICE 3,538,925 3,658,578 3,750,865 92, % 06 - STUDENT HEALTH SERVICES 2,958,857 3,309,000 3,592, , % 07 - STUDENT TRANSPORTATION 25,920,895 26,644,794 28,241,797 1,597, % 08 - OPERATION OF PLANT 25,248,365 25,703,035 26,466, , % 09 - MAINTENANCE OF PLANT 8,012,453 8,328,745 8,459, , % 10 - FIXED CHARGES 68,028,237 73,401,958 77,138,478 3,736, % 12 - COMMUNITY SERVICE 866, , ,369 39, % 13 - CAPITAL OUTLAY 4,098,111 2,618,577 3,799,101 1,180, % GENERAL FUND Total 337,119, ,242, ,597,861 17,355, % FOOD SERVICE* 13,253,638 13,448,739 13,613, , % RESTRICTED 16,851,209 14,969,831 14,740,698 (229,133) -1.5% Grand Total 367,224, ,660, ,951,832 17,291, % OBJECT CODE *** APPROVED *** FISCAL YEARS DESCRIPTION FINAL $ BUDGET BUDGET VARIANCE $ % CHANGE GENERAL FUND 71 - SALARIES & WAGES 201,780, ,891, ,298,246 10,407, % 72 - CONTRACTED SERVICES 37,976,317 43,634,361 45,639,382 2,005, % 73 - SUPPLIES & MATERIALS 11,479,367 8,589,980 9,185, , % 74 - OTHER CHARGES 9,128,677 11,339,310 11,189,682 (149,628) -1.3% 75 - EQUIPMENT 5,213,733 2,161,370 2,585, , % 78 - FIXED CHARGES 68,028,237 73,401,958 77,138,478 3,736, % 79 - TRANSFERS 3,513,047 3,224,194 3,560, , % GENERAL FUND Total 337,119, ,242, ,597,861 17,355, % FOOD SERVICE* 13,253,638 13,448,739 13,613, , % RESTRICTED 16,851,209 14,969,831 14,740,698 (229,133) -1.5% Grand Total 367,224, ,660, ,951,832 17,291, % 7

8 Attachment: Full-time Equivalent Staff ***APPROVED *** FISCAL YEARS BUDGET BUDGET ACTUAL DESCRIPTION POSITIONS POSITIONS FTE CHANGE GENERAL FUND 01 - ADMINISTRATION MID-LEVEL ADMINISTRATION INSTRUCTION 2, , , SPECIAL EDUCATION STUDENT PERSONNEL SERVICE STUDENT HEALTH SERVICES STUDENT TRANSPORTATION OPERATION OF PLANT MAINTENANCE OF PLANT COMMUNITY SERVICE CAPITAL OUTLAY GENERAL FUND Total 3, , , FOOD SERVICE RESTRICTED (0.2) Grand Total 3, , ,

9 EXPLANATORY PARAGRAPHS REVENUE INCREASES County Funding County funding requirements are subject to Maintenance of Effort (MOE) set forth in the Maryland Annotated Code Education Article Full-time equivalent enrollments increased by students from 25,521.3 the previous fiscal year, or 2.2 percent. The established MOE threshold is $3.9 million. To fully fund the operating budget requirements, the county will provide an additional $2.6 million above the MOE threshold level. Funding also includes a one-time allocation under COMAR 13A (2), for upgrades of the broadcast recording and television programming equipment. This is a non-recurring cost exclusion from the maintenance of effort calculations. State Funding State revenues are based on changes in enrollment, county wealth and free-and-reduced meal enrollments. Charles County ranks ninth out of 24 counties for student enrollment and 10th out of 24 in county wealth. State revenue projection assumes a growth rate of 7 percent. According to the Office of Legislative Services (OLS), state revenues for nonpublic tuition reimbursement is projected to decrease by 8 percent. Fund Balance Transfer The use of fund balance relies on one-time funds for designated maintenance projects at schools, such as asphalt repair, carpet replacement and school playgrounds. The school system has operated in a deficit budget since FY Assuming there is no budget surplus in FY 2018, the level of discretionary unassigned fund balance will jeopardize best practices for targeted reserves. Food Service Meal Price Increase The Healthy, Hunger-Free Kids Act of 2010 requires that the school system set meal prices equal to the Federal reimbursement rate for Free and Reduced Meals (FARMS). The school system has increased lunch prices for the past five years in order to comply with the Healthy, Hunger-Free Kids Act of This act requires that Federal reimbursement rates do not subsidize paying students. At this time, the school system has reached the mandated threshold and will not recommend price increases for FY 2019 until the new Federal reimbursement rate threshold is determined. Lunch prices for the school year will remain the same at $2.65 for elementary students and $2.90 for secondary students. Restricted Funds All budgeted amounts are based on original proposals. In most cases, changes between fiscal years are due to adjustments in the final allocations from authorizing agencies. 9

10 Final grant allocations are usually made official in the month of September. Restricted funds are anticipated to decrease by $229,132 from the previous year for a total of $14.7 million overall. The reduction is due to the sunset of the Title I Focus grant in FY 2018 ($359K), and a reduction of the aging schools program ($212K). The program reductions were offset by increases from the following grants, which are new this year: Title IV ($97K) primarily focusing on STEM and physical education initiatives, and Way To Work ($50K) focusing on adult student development. In addition, Special Education Pass-through ($40K), fully recognizing the NOAA three-year grant ($311K) and other miscellaneous grant increases which total $73K. They are: Secondary Transition ($15K), the Adult Education program ($14K), Science Center Program ($22K), Title II Restorative Practices ($15K), and Peer Collaborative Training ($7K). Restricted Funds FTEs are anticipated to decrease by.2, with a planned reduction of 3 Interventionists in Title I due to one-year funded positons and a.7 reduction from Judy Center. This will be partially offset by an increase of 2.2 FTEs in Special Education, 1 FTE Environmental Education Assistant in the National Oceanic and Atmospheric (NOAA) three-year grant, and a.3 increase in Adult Education. 10

11 MANDATORY COST INCREASES Charles County Public Schools (CCPS) considers mandatory costs (cost elements that are vital to the operations of the school system) an essential part of the budget development process. Mandatory costs include state mandates, contractual requirements, utilities and insurance costs. Health Insurance CCPS became self-insured in FY Annual health care cost increases are due to claims and additional enrollments. There are additional costs associated with the Affordable Care Act that have not been fully determined. This request provides funds for anticipated industry trend cost increases. The CCPS insurance committee meets on a regular basis to review and discuss health care costs. Changes to benefits or employee contribution levels (75/25) must be negotiated with collective bargaining units. Bus Contracts Under Maryland Annotated Code 7-804(b)(2)(i) CCPS may not operate a school vehicle for longer than 15 years. The school system s operational bus fleet consists of 366 buses: 358 contractual buses and eight buses owned by CCPS (four special education buses and four spare buses). The funds will replace 25 buses that have reached the 15-year limitation. Funds would support per vehicle allotment (PVA) for replacement buses and three additional special education bus contracts to accommodate our special education student population. There is a need to reduce student travel times due to their program, number of students on the route, and the location of their homes in relation to their placement at their regional programs and out-of-county non-public placements. Due to contract modifications (including driver salaries), erosion of funding reserves due to replenishing the spare bus inventory and establishing reserves for potential increases in the retail price per gallon, funds would align with current expenditure trends. Over the past two years, the number of spare buses reaching the age of retirement has increased, resulting in the purchase of replacement buses. This has eroded reserve funds. Lastly, additional funds would replenish reserve funds to a maximum retail price of $3.00 per gallon of gasoline. Teachers' Pension (SB1301) This budget is required by the Budget Reconciliation and Financing Act of 2012 (Senate Bill 1301/House Bill 1801). The teachers pension cost was shared between county and the Board of Education between fiscal years 2013 through Starting in FY 2017, the incremental normal cost" for teachers pension is the burden of the Board of Education. Normal cost is a rate determined by the contributions that should have been paid for a period. Non-Public Placement Tuition For special education students placed in non-public day and residential programs, the counties are responsible for the local share of the basic cost of educating a child ($26,003). The cost above the base amount is shared between the state and the local 11

12 school boards on a 70 percent local/30 percent state basis. Expenditures for students placed in non-public institutions are reimbursed by the state on a proportional basis. The ten-year annual expenditure growth rate is 2.5 percent. Expenditures associated with students placed in non-public institutions varies based on the student s needs and required care. In FY 2017, the average expenditure per student was $58,194 (serving 63 students) compared to a budget of $51,587 per student. The FY 2019 budgeted amount would provide per pupil funding at an estimated level of $60,661 for an anticipated 61 students. Maryland Association of Boards of Education (MABE) Insurance Premium Increase Founded in 1957, the Maryland Association of Boards of Education is a private, nonprofit organization dedicated to serving and supporting boards of education in Maryland. Members benefit in numerous ways from participating in the MABE Insurance Trusts, the Group Insurance Pool and the Workers' Compensation Fund. This budget reflects a 10 percent insurance premium increase for workers compensation, liability and property. Nurses Contract Funding includes estimated contract increases of 3.2 percent for benefits and wages. COLLECTIVE BARGAINING ASSUMPTIONS Reserve for Collective Bargaining Funds would support the estimated cost for the teacher salary scale conversion, a COLA adjustment for administrative and other professional EACC scales, 2.75 percent COLA for American Federation of State, County and Municipal Employees (AFSCME), along with grade increases for eligible employees. In addition, funds would support one additional STEP/Level increase for eligible employees who were due these increases for FY OTHER COST INCREASES Teachers for Enrollment Growth Funding supports anticipated student enrollment growth and reach a 25 to 1 ratio at all levels. Currently, the student to teacher ratio is 27 to 1 at grades 3 through 12 and 25 to 1 for K to 2 nd grade. Capital Projects Increases are planned to restore base budget reductions which were implemented in FY 2018 to balance the budget. Funding will be restored to support various maintenance projects at the schools. 12

13 ASPIRE Program The Aspire Program is designed to provide a data driven, highly structured, safe and positive classroom environment for elementary students who demonstrate persistently maladaptive behavior that impedes their ability to access academic curriculum. Emphasis is placed on developing self-regulatory social and academic skills in a small group setting, with the goal of gradual re-integration into the original classroom setting with support. This is accomplished through behavioral assessment, the implementation of a class-wide behavior management/social skills program, individualized behavioral interventions, intensive case management, and collaboration/training with parent, teachers and community service providers. Additional funding would support two teachers, two instructional assistants and two psychologists. English Language Learners and Special Education Instructional Assistants The addition of 10 permanent instructional assistants for the school year will improve instructional and behavioral outcomes for students with disabilities in regional programs and inclusive settings. In addition, the English Language Learners (ELL) student population continues to grow; therefore, more support is needed especially at the high school level. Psychologists Our elementary schools, with the exception of Ryon and Parks, currently have a school psychologist assigned two days a week. During this time, they consult with administrators, teachers and parents, provide direct intervention to students, conduct psychological assessments, and attend all Student Study Team (SST), Individual Education Program (IEP) and section 504 meetings. It is critical to note that several of our elementary schools have student populations that exceed the size of several of our middle schools who have full-time school psychologists assigned. In light of the increasing student population and the instructional and mental health needs of our students, it is critically important to increase our psychological services staff to better meet the needs of our student population. Funding would support two psychologists. Communications Television Equipment Funding includes a one-time allocation under COMAR 13A (2), a non-recurring cost exclusion from the maintenance of effort calculations, for upgrades of the broadcast recording and television programming equipment. BUDGET REDUCTIONS Lapsed Salary Savings Target Funds would be generated from employee turnover. 13