Proposed Budget

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Jennifer Knight
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1 Proposed Budget June 13, 2017 Tom Wohlleber Chief Financial Officer Teddy Dumlao Director of Finance

2 October 4, 2016 Work Study (Capital Needs Overview) November 9, 2016 Work Study (Salary Schedule Review) December 6, 2016 Work Study (Proposition 206 Impact and Initial Budget Planning Workshop) January 17, 2017 Work Study (Budget Projection Scenarios) February 14, 2017 Work Study (Budget Planning Workshop and Capital Budget Update) March 7, 2017 Work Study (Budget Planning Workshop) April 11, 2017 Work Study (Budget Balancing Strategies) May 9, 2017 Work Study (Operational Budget Review) 2

3 Average Daily Membership (ADM) based on CURRENT YEAR estimate/projection for the school year Unweighted ADM 33,095 - decrease of 1,100 (from ) Weighted ADM of 45,403 - decrease of 1,401 (from ) M & O budget includes: Inflationary increase of 1.31% in base level w/teacher comp (from $3, to $3,721.31) Estimated increase of $1,348,266 in budget capacity for the recent state budget approved 1.06% teacher salary increase 3

4 FY17 Revised Budget #2 FY 18 Proposed Budget Revenue Control Limit (1) $184,916,311 $183,229,408 M&O Override Amount 18,491,631 18,573,358 Transfer to Capital (1,477,514) (1,100,000) Tuition Revenue 85,000 85,000 Budget Balance Carryforward 6,679,718 2,000,000 Energy & Water Savings Transfer (780,242) (780,000) Prop123 $50M Additional Funding 1,583,892 1,500,000 M&O General Budget Limit Total (2) $209,498,796 $203,507,766 (1) Includes ESTIMATED amount for the 1.06% teacher increase in FY18 (2) Does NOT include potential adjustment from ADM audit 4

5 Eligibility and other criteria: Teacher must have taught at GPS or another Arizona School District or Charter School during the school year. New teachers or out-of-state teachers are not eligible for the increase in Substitute teachers or contracted teachers (i.e. SmartSchools) are NOT eligible for the 1.06% increase. Only the portion of the teacher s salary coded to Function 1000 Instruction (in all funds including Classroom Site Fund) is eligible for the 1.06% increase (including stipends or any other payments correctly coded to Instruction). The 1.06% increase is based on the teacher s eligible salary amount (whether part-time or full-time) from the school year. 5

6 Approval, Verification and Payment Process: The state will fund the 1.06% increase in eligible salaries as well as the applicable amounts for ASRS and social security. The Governing Board must hold a public hearing regarding the allocation for the 1.06% increase when the budget is adopted as well as when budget allocation for the 1.06% increase is revised (no later than November 1 st ). The District must also notify its teachers of all public hearings and subsequent votes regarding the 1.06% increase. The District is responsible for verifying eligibility and salary amounts for both returning and new to the District teachers. The District will need to verify eligibility and eligible salary amount from with the teacher s former district or charter school. 6

7 Approval, Verification and Payment Process (continued): The proposed budget reflects an initial estimate of the increase needed for the 1.06% salary increase and related benefits. The budget for the increase will be updated/revised in October. The calculation of the cost of the 1.06% salary increase and related benefits is subject to the independent annual audit for FY18 Any audit findings regarding a miscalculation must be reported to ADE and are subject to a budget correct as provided in ARS The District is scheduled to receive payment from the state by December 1 st. The tentative plan is to pay the 1.06% increase in a special payroll run in December. 7

8 Maintenance & Operations Expenditure Budget Additions Expenditure Increase Description - Staff Compensation 0.75% ($1,275,000) - PROP 206 Minimum Wage Increase ($412,000)* - Health Insurance Trust Contribution Increase ($1,800,000) - New Finance Software Support Costs ($150,000) - Salary Schedule Adjustments ($120,000) - Estimated Teacher 1.06% Increase ($1,348,266) *Does NOT include leave impact or salary compression impact Amount $5,105,266 8

9 Budget Balancing Strategies DISTRICT DEPARTMENTS Staff Reductions - Academic Services FTE ($25,000) - Facilities/Operations FTE ($35,000) - Finance FTE ($131,000) - Office of Superintendent FTE ($115,000) - Talent Management FTE ($86,000) - Technology FTE ($147,000) - Transportation FTE ($146,000) Amount $685,000 District Department Budget Reductions $528,000 9

10 Budget Balancing Strategies DISTRICT DEPARTMENTS - continued Other Staff-Related Reductions - Reduce Transportation Mechanic Overtime ($25,000) - Smart School Savings ($295,000) Efficiency / Outsourcing / Other Expenditure Reductions - New Vehicle Efficiency - Transportation ($235,000) - Outsource Remaining Grounds Operations Except Athletics ($138,000) - Cell Phone Expenditure Reduction ($20,000) Amount $320,000 $393,000 10

11 Budget Balancing Strategies FUNDING SOURCE CHANGES - 50% of WAN and Internet Costs to E-Rate Fund ($285,000) FTE ELL Positions to SEI Grant ($168,000) - Reduce Portion of School PD Funding from Instructional Improvement Fund ($200,000) - Move Remaining Portion of School PD Funding to Classroom Site Fund ($335,000) - Move 7.0 FTE CTE Teachers and HS Vocational Stipends to Vocational Education Fund ($500,000) - Move Portion of M&O Funded Staff (TBD) to Federal Medicaid Reimbursement (MIPS) Fund ($2,500,000)* *Short-term strategy Amount $3,988,000 11

12 Budget Balancing Strategies SCHOOL LEVEL Staff Reductions - Reduce Substitute Budget by 10% ($170,000) - Reduction in Special Ed Paraeducator Hours ($22,000) - Eliminate Nursing Services Screening Team Model ($27,000) - High School Office Support Staff Re-alignment ($350,000) - Reduction in Classroom Teacher FTE - 22 FTE ($1,210,000) Amount $1,779,000 12

13 Projected FY18 Per Pupil Amount: $386 (includes $19 in one-time funding) Projected FY18 Expenditures by Category: Base Increase Amount ($3,559) Pay for Performance ($2,836) $ 8,400,000 $ 6,694,000 Teacher Development $ 335,000 School Improvement (SIC) $ 261,000 TOTAL $15,690,000 Projected FY18 Budget Limit: $17,043,046 13

14 Instructional Improvement Fund (020) Expenditures: Class size relief $ 900,000 Curriculum/Instruction $ 450,000 School-based PD from FY17 Carry-Forward $ 150,000 TOTAL $1,500,000 14

FY18 Funding Allocation: Pending from ADE Funding Utilization per A.R.S. 15-259.

results-based funding Majority of funds shall be used for teacher salaries, to

the expansion and replication of that school site as a quality school model to:

with a letter grade designation of A or B Increase salaries for teachers, other

15 FY18 Funding Allocation: Pending from ADE Funding Utilization per A.R.S (2)(c): Funds shall be allocated directly to the school site that generated the results-based funding Majority of funds shall be used for teacher salaries, to hire teachers and to provide teacher development Portion of funds may be used for the expansion and replication of that school site as a quality school model to: Sustain and replicate results Serve more students on a waiting list at a school with a letter grade designation of A or B Increase salaries for teachers, other classroom staff and school leaders closing the achievement gap in high-poverty schools 15

16 A.R.S Estimated End Cash Balance 6/30/2017 $ 300,000 Estimated Revenue $ 100,000 Estimated Total Available Estimated FY Expenditures to cover property damage and deductibles beyond insurance coverage Estimated Ending Balance $ 400,000 $ 115,000 $ 285,000 16

17 Capital (610) Funding Sources: Capital (DAA) Formula $2,000,592 Transfer from M & O $1,100,000 FY16 Projected Carry-Forward $ 900,000 TOTAL $4,000,592 17

18 Capital (610) Expenditures: Governing Board District Athletics Health/Nursing Services Facilities/Operations Finance/Business Services Talent Management Academic Services - Curriculum Academic Services - Assessment Academic Services - On-line/Blended Learning Technology TOTAL $ 9,000 $ 40,000 $ 10,000 $ 550,000 $ 303,392 $ 45,000 $1,005,500 $ 437,700 $ 150,000 $1,450,000 $4,000,592 18

Bond Building 10% Auxiliary Operations 1%

1% State Projects 0% Federal Projects 4%

Service 4% Other 6% Instructional Improvement

Amount Maintenance & Operation $ 203,507,766

14,402,869 State Projects $ 495,713 Capital $

Plant Fund $ 38,000 Auxiliary Operations $

19 Bond Building 10% Auxiliary Operations 1% School Plant Fund 0% Debt Service 6% Capital 1% State Projects 0% Federal Projects 4% Classroom Site 5% Structured English 0% Food Service 4% Other 6% Instructional Improvement 1% Maintenance & Operation 62% Fund Budget Amount Maintenance & Operation $ 203,507,766 Instructional Improvement $ 1,500,000 Structured English Immersion $ 259,742 Classroom Site $ 17,043,046 Federal Projects $ 14,402,869 State Projects $ 495,713 Capital $ 4,000,592 Debt Service $ 20,663,044 School Plant Fund $ 38,000 Auxiliary Operations $ 2,600,000 Bond Building $ 31,320,000 Food Service $ 11,816,000 Other $ 18,363,500 19

20 (FY 17) (FY 18) Primary Tax Rate Secondary Tax Rates: M & O Override Bonds Secondary Tax Rate Overall Tax Rate * *Estimated 20

21 $2,000,000,000 $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $- FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 Primary Assessed Valuations

22 Primary Secondary FY FY FY FY FY FY

REVENUES AND PROPERTY TAXATION STATE OF ARIZONA

COUNTY Pinal CTD NUMBER 1144 FY 219 REVENUES AND PROPERTY TAXATION STATE OF ARIZONA 1. Total Budgeted Revenues for Fiscal Year 218 $ 58,354,587 SCHOOL DISTRICT ANNUAL EXPENDITURE BUDGET 2. Estimated Revenues