Budget Development for Budget Forums May 23 and 24, 2011

Transcription

1 Budget Development for Budget Forums May 23 and 24, 2011 as of May 23, 2011

2 Agenda Welcome and introductions Meeting format Budget presentation Input

3 Context for Budget Development Unprecedented state budget deficit Federal stimulus funding expiring Legislature reduced school funding mid-year for Legislature proposing significant cuts in school funding for Legislature in extended session and final budget challenge unknown Legislature is not meeting the constitutional obligation for fully funding public schools Lawsuit to be heard in June by Supreme Court on education funding Enrollment decline slows

4 Budget Preparation Schedule January 26 January 27 February 7 March 23 March April April April 24 April 27 May 10 May 18 May 23 May 24 May 25 June 7 June 22 August 10 Preliminary budget forecast presented to School Board Administrator forecast preview Citizens Advisory Committee (CAC) preview of budget forecast Board work session on budget development Elementary staffing Departmental budget review hearings Secondary staffing End of regular legislative session 105 th day Budget development update for School Board School Board work session on budget development School Board work session on preliminary budget issues and possible solutions Staff Budget Forum 4 p.m. - Chase Community Budget Forum 7 p.m. - Chase Staff Budget Forum 4 p.m. - Glover Community Budget Forum 7 p.m. Glover End of 1 st Special Legislative Session Board work session on preliminary budget Superintendent s preliminary recommended budget presented to the School Board School Board adoption of budget

5 Types of District Funds General Fund to operate schools each year Capital Projects Fund to improve facilities and technology (restricted to projects in the 2003 and 2009 bond issues) Associated Student Body Fund for student government activities

6 Summary of Budget Challenge In millions Estimated Budget Challenge Governor House Senate State/Federal Impact $ Local Impact Total Estimated Challenge $ Notes: Legislature reduced an additional $3.2 million in class size funding mid-year ( ). Final budget challenge will be determined when legislative session ends.

7 Revenues In millions Federal Stimulus Funding $ % Federal $ % Other Miscellaneous $ % Local Levy $ % Local Nontax $ % State $ % Total Revenues of $311.0 Express, Lunch and Other Fees Fundraising for KSPS-TV

8 Expenditures Food Services $ % Support Services $ % Transportation $ % Community Services $ % In millions Instruction $ % Total Expenditures of $316.8

9 Budget Reduction History SCHOOL YEAR Millions $ Eight Year Total $ By Major Category 2002 through 2010 Central Administration Reduced (13.60 %) $ 5.7 Teacher Reductions (10.28%) 14.8 Support Positions Reduced 8.9 Other District Program Reductions 8.3 Revenue Strategies 2.4 Utilization of Fund Balance (Savings Account) 13.9 Grand Total $ 54.0

10 Student Enrollment Cumulative Decline fewer students in $1 million less revenue

11 Budget Planning Standards with School Board Priorities Focus financial resources on programs that directly support the District s Strategic Plan and student achievement, with an emphasis on: improving graduation rates supporting high-achieving students at all grade levels ensuring content-rich offerings for all students of all academic abilities maintaining a strong K-4 foundation (e.g., all-day kindergarten and lower class size) Maintain a safe learning and working environment for students and staff Sustain staff, parent and community support Maintain the District s: financial integrity investment in facilities, technology, and other physical assets Retain an essential level of support services for District operations Assure revenue generating programs break even Budget decisions should be: practical sustainable timely cost effective legal commensurate with adjustments in student enrollment evaluated on an ongoing basis, based on the standards

12 Non-Mandatory Expenditures Examples: Extracurricular activities (sports, clubs, intramurals, etc.) Number of schools Alternative programs (virtual learning, drop-out prevention programs, etc.) Gifted and talented program Elementary art program Library positions Elementary band and strings program Elementary principal assistant positions Support specialists positions (counselors, career, etc.) Number of secondary administrative positions Class size Secondary elective classes Support staff (custodial, maintenance, clerical, etc.) Number of central administrative positions Student transportation for activities General program travel Social services Security staff

13 Summary of Options Ideas to solve a potential $9 to $12 million budget challenge created by reduction in state and federal funding Revenue strategies Initial recommended reduction and investment ideas Other possible budget reduction and investment options Establish a general fund contingency budget of $1.5 million for unforeseen emergencies by eliminating contingencies in other existing budgets such as utilities, staffing, etc.

14 Revenue Strategies Use of excess fund balance (savings) $ 1,500,000 Budget for additional special education funding 1,000,000 Revise projected enrollment drop for from 200 to 150 students 250,000 Increase selected fees 227,000 Charge some technology staff to bond 181,500 Total Revenue Strategies $ 3,158,500 Estimated Budget Gap $ -12,000,000 Revenue Strategies 3,158,500 Remaining Budget Challenge $ - 8,841,500

15 Initial Recommended Solutions for Budget Challenge Summary Central administration reductions $ 1,298,500 Instructional support reductions 3,000,000 Building administrative support reductions 280,000 Educational program & curriculum reductions 340,000 Extracurricular program reductions 7,500 Other district program reductions 1,704,000 Total Initial Recommended Solutions $ 6,630,000 Note: See budget worksheet for specifics

16 Initial Recommended Program Investments (adds additional costs) Implement Board math resolution (Year 1 of 3) $ 500,000 Start development of data reporting system 500,000 Implement middle school academic intervention programs 400,000 Enhance high school credit retrieval program 163,000 Develop K-8 online learning program, (through The Enrichment Cooperative at Bryant) 81,000 Total Initial Investment Recommendations $ 1,644,000

17 Summary - Initial Budget Recommendation Initial recommended budget solutions $ 6,630,000 Less: budget increase for program investments - 1,644,000 Total Initial Budget Recommendations - NET $ 4,986,000 Budget Gap Calculation Estimated budget gap $ -12,000,000 Less: new revenue strategies 3,158,500 Less: net initial recommendations from above 4,986,000 Remaining Budget Gap $ - 3,855,500

18 Other Possible Budget Reduction Options Central Administration 3% base salary reduction for independent staff (executive secretaries, professional and technical staff) Building Administrative Support Request principal pay concessions equivalent to a 3% salary reduction Reduce secretary work year by 4 days (< than 260 day positions) $ 94,000 $ 240,000 $ 140,000 Curriculum, Teacher Training & Instruction Reduce professional development $ 81,000 Limit high school student schedules to 6 periods $ 1,000,000 Extracurricular Programs Suspend elementary extracurricular programs $ 300,000 Suspend middle school interschool and significantly reduce activities - convert to an intramural program $ 525,000

19 Other Possible Budget Reduction Options - continued Items subject to bargaining Request supplemental pay concessions from classified unions Implement payroll operating efficiency (mandatory direct deposit and use of online system for pay notification) Close all district buildings for 1 week in winter (mandatory vacation for employees) Close all district buildings for 1 week in summer (mandatory vacation for employees) $ 300,000 $ 48,500 $ 44,000 $ 22,000

20 Other Possible Budget Reduction Options - continued Class Size Options Estimated Expenditure Reductions Increase class size up to 3 students per class $ 5,000,000 OR Increase class size up to 3 at grades 4 12 (maintain smaller primary class sizes) $ 3,500,000 OR Increase class size up to 3 at grades 7-12 only (maintain smaller class size at elementary level) $ 2,300,000 OR Increase class size at high school only (maintain smaller class size at K-8) $ 1,100,000 OR Maintain current class size at K-12 $ 0

21 Summary of Other Possible Budget Reduction Options Central Administration $ 94,000 Building Administrative Support 380,000 Curriculum, Teacher Training, Instruction 1,081,000 Extracurricular Programs 825,000 Items Subject to Bargaining 414,500 Class Size Increases (up to 3 students per class) 5,000,000 Total Other Possible Budget Reduction Options $ 7,794,500

22 Other Possible Investment Options (adds additional costs) Automated parent notification system $ 64,000 Develop a Board adopted strategic plan (with staff and community input) Expand full day kindergarten to four more schools (proposed 6-year phase-in for remaining 22 schools) Conduct magnet and innovative program study (e.g., International Baccalaureate, STEM, etc.) 90, , ,000 Total Other Possible Investment Options $ 879,000

23 Summary of Other Possible Budget Considerations Other possible budget reduction options $ 7,794,500 Other possible program investment options - 879,000 Total Additional Options for Closing Budget gap $ 6,915,500 Budget Gap Calculation Estimated budget gap $ -12,000,000 Less: new revenue strategies 3,158,500 Less: net initial recommended budget options 4,986,000 Less: additional options for closing budget gap 6,915,500 More Budget Solutions Than Needed $ + 3,060,000

24 Ideas for Further Study Ownership of KSPS-TV Extracurricular activities pay to participate Evaluate high school sports offerings Facility consolidations Relocate science warehouse, eliminate lease Relocate MAP program, eliminate lease Determine use of Pratt school Examine other cost efficiencies

25 Next Steps Seek staff and community input on reduction and investment ideas to solve budget challenge - Please provide feedback on budget worksheet by May 31 When will legislature finish? - May 25 th end of 1 st special legislative session Early June Board work session on budget End of June recommended budget presented to Board