Superintendent s Proposed Budget Recommendation

Transcription

1 Superintendent s Proposed Budget Recommendation April 12, 2011

2 Framework for Budget Development Align resources to support Strategic Plan 2014 Keep strong academic focus coupled with data driven decision making Recognize and plan for the impact of the economic environment and employ sound fiscal management respond to signals from state and local sources that funding may be limited Acknowledge uncertainty regarding expected funding levels from all sources, but be prepared for the worst Request funding from County for growth and sustaining operations Pay for Strategic Plan 2014 initiatives through budget reductions or redirections Establish flexibility in the budget to allow for various reduction levels 2

3 What is the financial investment required? 3

4 Superintendent s Proposed Budget County $ 312,839,101 State 650,447,670 Federal/Other Grants 140,812, Other and Special Revenue 13,402,000 Total Operating Budget $ 1,117,501,067 Capital Replacement 4,960,000 Child Nutrition 66,499,202 After School Enrichment Program 13,962,253, Total Proposed Budget $ 1,202,922,522 4

5 Comparison to Prior Year Proposed Operating Budget* $ 1,117,501, Adopted Operating Budget* $ 1,150,186,045 Decrease $ (32,684,978) % Change (2.8%) Note: Proposed Budget does not include potential reductions in Tiers 1-4 totaling $86.8 million. * Operating Budget only does not include Capital or Enterprise Funds 5

6 Superintendent s Proposed Budget* SOURCES $312.8M - 28% $13.4M - (1%) $140.8M - 13% $650.5M - 58% State Federal and Other Grants County Other and Special Revenue * Operating Budget only does not include Capital or Enterprise Funds 6

7 Superintendent s Proposed Budget* USES $48.4M - 4% $1.8M - (<1%) $17.0M - 2% $124.7M - 11% $221.1M - 20% $704.5M - 63% Salaries Benefits Purchased Services Supplies and Materials Furniture and Equipment Other * Operating Budget only does not include Capital or Enterprise Funds 7

8 Superintendent s Proposed Budget* $102.0M - 9% $99.5M 9% $915.9M - 82% Central Office Schools Support - Schools * Operating Budget only does not include Capital or Enterprise Funds 8

9 Staff Prioritized Budget Reduction Recommendations included in Proposed Budget Operationalized Comprehensive review - School Closures $ (5,210,576) Subtotal - Operationalized $ (5,210,576) Efficiencies Average salary adjustment $ (2,176,485) Midwood relocation (969,617) 617) Redirect contracted services to state technology funds (651,321) Eliminate annual maintenance fee for AAL NC WISE (245,000) Utilities (reducing consumption) (1,903,552) Eliminate prior year extended employment (79,713) 713) Transportation - Bell schedule and 7 hour instructional day for all students (4,009,059) Subtotal - Efficiencies $ (10,034,747) SUB-TOTAL $ (15,245,323) 9

10 Factors Increasing the Proposed Budget Sustaining Operations Salaries and Benefits County Total Health Insurance Increase - 7.1% ($4,929 to $5,279) $ 836,448 $ 4,919,083 Retirement Rate Increase % to 11.62% ($4,741 to $5,241*) 1,909,667 6,934,799 Program Continuation Charlotte-Mecklenburg Police Department SRO Contract Increase 958, ,426 Utilities Rate Increase 915, ,790 Charter Schools Enrollment Increase (pre Senate Bill 8)** 2,165,318 2,165,318 Mileage Reimbursement Rate Increase (.50 to.51 cents) 16,282 16,282 Lease Payment Increases 93,696 93,696 Intervention Team Specialists Cost Share Increase*** 258, ,867 Total Sustaining Operations 7,154,494 16,262,261 Student Growth Enrollment - Staffing and Non-Personnel 3,434,607 11,880,177 Total Sustaining Operations & Student Growth $ 10,589,101 $ 28,142,438 * Estimate based on an average teacher salary. Exact amount varies based on individual position salary. ** Estimated increase does not include any impact for changes that may occur with passing of Senate Bill 8. *** Previously shared cost with DSS. 10

11 Superintendent s Recommendation for County Budget Request Adopted Budget $ 302,250,000 Replacement of ARRA Cliff Funding 14,781,272, Base Budget 317,031,272 Redirections/Reductions (14,781,272) Sustaining Operations 7,154,494 Student Growth 3,434,607 Program Expansion and New Initiatives County Budget Request $ 312,839,101 Increase Requested from County $ 10,589,101 11

12 Superintendent s Proposed Budget (Does not include reductions in Tiers 1-4 totaling $86.8M) State County Federal and Other Grants Other and Special Revenue Total ADOPTED BUDGET $ 634,731,052 $ 302,250,000 $ 185,891,151 $ 27,313,842 1,150,186,045 REVISIONS TO ADOPTED BUDGET A. Revisions to Base Budget* (1,836,719) - (66,333,454) (13,926,364) (82,096,537) B. Replacement of ARRA Cliff** - 14,781,272 20,874,378-35,655,650 Sub-Total (1,836,719) 14,781,272 (45,459,076) (13,926,364) (46,440,887) BASE BUDGET 632,894, ,031, ,432,075 13,387,478 1,103,745,158 I. REDIRECTIONS/REDUCTIONS (14,781,272) (464,051) - (15,245,323) II. SUSTAINING OPERATIONS A. Salaries and Benefits 9,107,767 2,746, ,272 14,522 12,712,676 B. Program Continuation - 4,408, ,408,379 Sub-Total 9,107,767 7,154, ,272 14,522 17,121,055 III. STUDENT GROWTH A. Enrollment Increases 8,445,570 3,434, ,880,177 Sub-Total 8,445,570 3,434, ,880,177 TOTAL PROPOSED CURRENT EXPENSE BUDGET $ 650,447,670, $ 312,839,101, $ 140,812,296, $ 13,402,000, $ 1,117,501,067,, * Includes state revisions, anticipated federal revenue adjustments, and reduction of one-time fund balance appropriation included in the Adopted Budget. ** Includes funds to replace a portion American Recovery and Reinvestment Act (ARRA) funding expiring in This funding will be for school based-clerical and custodial positions, a portion of the Bright Beginnings program, teacher-level positions for the Midwood program at Hawthorne High School and school based Exceptional Children positions. 12

13 Proposed Budget with Potential Budget Reductions (Tiers1-4) Budget Request Tier 1 Tier 2 Tier 3 Tier ADOPTED BUDGET $ 1,150,186,045 $ 1,150,186,045 $ 1,150,186,045 $ 1,150,186,045 $ 1,150,186,045 REVISIONS TO ADOPTED BUDGET (46,440,887) (46,440,887) (46,440,887) (46,440,887) (46,440,887) BASE BUDGET 1,103,745,158 1,103,745,158 1,103,745,158 1,103,745,158 1,103,745,158 I. REDIRECTIONS/REDUCTIONS A. Redirection of Funds to Alternative Uses (15,245,323) (15,245,323) (15,245,323) (15,245,323) (15,245,323) Tier 1 - (15,067,577) (15,067,577) (15,067,577) (15,067,577) Tier (6,808,552) (6,808,552) (6,808,552) Tier (28,718,723) (28,718,723) Tier (35,202,222) Total Redirections/Reductions (15,245,323), (30,312,900), (37,121,452), (65,840,175), (101,042,397), REDUCTIONS AS A % OF CURRENT BASE BUDGET -1.38% -2.75% -3.36% -5.97% -9.15% II. SUSTAINING OPERATIONS A. Salaries and Benefits 12,712,676 12,712,676 12,712,676 12,712,676 12,712,676 B. Program Continuation 4,408,379 4,408,379 4,408,379 4,408,379 4,408,379 Total Sustaining Operations 17,121,055 17,121,055 17,121,055 17,121,055 17,121,055 III. STUDENT GROWTH A. Enrollment Increases 1. Enrollment - Staffing and Non-Personnel 11,880,177 11,880,177 11,880,177 11,880,177 11,880,177 Total Student Growth 11,880,177 11,880,177 11,880,177 11,880,177 11,880, PROPOSED BUDGET $ 1,117,501,067 $ 1,102,433,490 $ 1,095,624,938 $ 1,066,906,215 $ 1,031,703,993 CHANGE FROM ADOPTED BUDGET $ (32,684,978) $ (47,752,555) $ (54,561,107) $ (83,279,830) $ (118,482,052) NET CHANGE AS A % OF ADOPTED BUDGET -2.84% -4.15% -4.74% -7.24% % 13

14 Capital Replacement Proposed Budget Revenues $ 4,960,000 Expenditures: Building and Sites 4,209,616 Furniture and Equipment 750,384 Total Expenditures $ 4,960,000 Historically funded from state s Public School Capital Building Fund but since has been funded with County revenues Provides pay-as-you-go funding for systematic and scheduled major repair and replacement of major assets 14

15 Child Nutrition Proposed Budget Operating Revenues $ 19,675,799 Operating Expenses 66,499,202 Operating Income (Loss) (46,823,403) Non-operating Revenues U.S. Government Subsidy and Commodities 46,101,756 Interest Revenue and Other Misc. Revenue 204,832 Transfer from General Fund 516,815 Net Income $ - Child Nutrition serves more than 30,000 breakfasts and 80,000 lunches per day Meal costs have not increased since , but the lunch price will increase by 5 cents per meal in due to a Federal requirement 15

16 After School Enrichment Program Proposed Budget Operating Revenues $ 13,930,253 Operating Expenses 13,962,253 Operating Income (Loss) (32,000) Non-operating Revenues 32,000 Net Income $ - Total program fee for Before School and After School programs will increase $5 from $81 to $86 per week for participation both the before school and after school programs. Fees will vary based on end of the day bell schedule: 2:45-3:15: After School $56 and Before School increase from $25 to $30 per week 3:30-3:45: After School decrease from $56 to $45 and Before School increase from $25 to $41 per week 4:15: After School decrease from $56 to $30 and Before School increase from $25 to $56 per week 16

17 What has been the return on past investments? 17

18 Math Proficiency (without retests) Math Proficiency* Change Grade Grade Grade Grade Grade Grade Composite Over the past 4 years, CMS has increased proficiency at each grade level by between 5 and 16 percentage points. *Percentage of scores at Levels III and IV 18

19 Math Gap Trends - Grades 3-8 (without retests) African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend * 39 n/a 30 n/a 34 n/a CMS gaps have narrowed consistently. *Mathematics for reflects the state adjustment of minimum proficiency standards. 19

20 Reading Proficiency (without retests) Reading Proficiency* Change Grade Grade Grade Grade Grade Grade Composite Since the test standards were raised in , CMS has increased proficiency at each grade level by between 3 and 10 percentage points. *Percentage of scores at Levels III and IV 20

21 Reading Gap Trends - Grades 3-8 (without retests) African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend * 41 n/a 39 n/a 37 n/a CMS gaps have narrowed consistently. *Reading for reflects the state adjustment of minimum proficiency standards. 21

22 End-of-Course Proficiency (without retests) (with retests) Change (without retests) Algebra I* Algebra II* Biology** Civics & Economics* English I* Geometry* Physical Science** n/a US History* Composite *Test standards were raised in **Test standards were raised in Note: Chemistry and Physics were discontinued at the start of the school year 22

23 Trends within Subgroups (without retests) Algebra I African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 27 n/a 24 n/a The gaps have narrowed in each subgroup. 23

24 Trends within Subgroups (without retests) Algebra II African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 23 n/a 21 n/a The gaps have narrowed in each subgroup. 24

25 Trends within Subgroups (without retests) Biology African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 23 n/a 21 n/a The gaps have narrowed in each subgroup. 25

26 Trends within Subgroups (without retests) Civics & Economics African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 23 n/a 21 n/a The gaps have narrowed in each subgroup. 26

27 Trends within Subgroups (without retests) English I African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 36 n/a 29 n/a The gaps have narrowed in each subgroup. 27

28 Trends within Subgroups (without retests) Geometry African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 23 n/a 21 n/a The gaps have narrowed in each subgroup. 28

29 Trends within Subgroups (without retests) US History African-American White Hispanic White Economically Disadvantaged Not Economically Disadvantaged Students Year Gap Gap Trend Gap Gap Trend Gap Gap Trend n/a 27 n/a 31 n/a The gaps have narrowed in each subgroup. 29

30 SAT School System Total Total # Tested % % % Total # Tested Total # Tested Tested Tested Tested Total United States (All Students) ,518, ,530, ,547, North Carolina (All Students) , , , Charlotte- Mecklenburg , , ,

31 AP Pass Rates Global NC CMS

32 AP Tests Taken Number of Exams Taken Global 2,105,803 2,533,431 2,736,445 2,929,929 3,213,225 NC 76,578 81, ,378 89,344 92,334 CMS 12,903 11,287 12,231 13,293 13,362 32

33 Strategic Plan 2010: High Academic Achievement Goal: Eighty percent of schools will make expected or high growth on ABCs. Percentage of Schools Making Expected or High Growth % % % % % *Metro and Morgan are excluded from these counts because the state identifies them as schools with no ABC status 33

34 ABC Results All Schools Charlotte-Mecklenburg Schools ABC Results - All Schools Number of Schools by Growth Status through Number of Sch hools High Growth Expected Growth Less Than Expected Growth *Metro and Morgan are excluded from these counts because the state identifies them as schools with no ABC status 34

35 What is the risk of further reductions in our community s investment? 35

36 The greatest challenge facing CMS may be this - If we have to cut an additional $86 million* from the budget, it could jeopardize the strong academic progress we ve made since *remainder of $101 million in potential cuts previously identified 36

37 What This Means for CMS (as estimated January 2011) Reduction % State Reduction Federal Funding Cliff County Growth/ Sustaining Estimate* Subtotal** Reduction % County Reduction Total $32M $15M $15M $15M $63M $15M $15M $30M $95M $15M $15M $45M $170M The budgeted per-pupil amount is $8,523***. The per-pupil amount drops to $7,263 under the worst- case scenario presented above. The $7,263 per-pupil amount is between the and budgeted per-pupil amounts. The estimates above do not include any additional amounts required to cover discretionary reductions from the prior year nor do they assume the non-recurring cuts will be reinstated. * Estimate based on historical trend average which includes estimated increases for items such as benefits (health insurance and retirement) and costs due to enrollment growth (staffing and instructional materials) ** Assumes flat funding from county *** Adopted budget divided by projected enrollment 37

38 Staff Prioritized Potential Budget Reductions Tier 1 Central Office Reductions $ (8,785,421) DSSF funding for high school plans (1,229,914) Achievement Zone - school based positions (689,290) Media Specialists - 1 position (69,019) Bonuses- Incentive, Critical Needs, Signing (4,293,933) Subtotal - Tier 1 $ (15,067,577) Tier 2 Reduce funds for equitable supplies and materials $ (125,000) CTE - 38 teachers (2,504,830) Alternative Ed (1,146,108) ) CSA's - 10 Rapid Response (362,880) SQR training (135,000) Building Services - trade positions (712,422) Custodians (1,734,753) Academic Competitions (87,559) Subtotal - Tier 2 $ (6,808,552) 38

39 Staff Prioritized Potential Budget Reductions Tier 3 CTE - 10 teachers $ (659,170) Extended Day allotment to schools (1,052,532) Talent Development - 6 teachers (412,380) CSA's - 16 positions (543,160) 107 teacher-level positions for Zones and leave (6,338,359) Bright Beginnings reduction of classes (10,417,921) Teacher Assistants (9,295,201) Tier 4 Subtotal - Tier 3 $ (28,718,723) Eliminate one support position at each school positions $ (11,152,000) 152 Change WSS weight from 1.3 to teacher positions (8,648,602) Increase class size +2 for grades teacher positions (15,401,620) Subtotal - Tier 4 $ (35,202,222) Total Potential Budget Reduction - Tiers 1-4 (85,797,074) GRAND TOTAL (including reductions in Budget Request) $ (101,042,397) 39

40 Key Points We do not want to lose ground we have fought so hard to gain We will continue to put resources into the initiatives and strategies that have helped us increase academic achievement We are making progress but it s critical that resources do not shrink to the point we stop making progress We have much more work to do but continued reductions in funding will affect our ability to move students forward and reach SP2014 goals 40

41 Key Dates April/May Begin notifying at-will employees affected by RIF April 26 Public hearing on Superintendent s Budget Recommendation April 27 Board work session May 1 Deadline for notifying administrators of superintendent s intent to nonrenew contracts May 10 Board of Education's proposed budget approved May 13 Board of Education's proposed budget delivered to County Manager May 15 Deadline for notifying teachers of superintendent s intent to non-renew May 17 County Manager s Recommended Operating and Capital Budgets presented to Board of County Commissioners May 24 Board of County Commissioners Budget Workshop May 26 Public hearing on Board of County Commissioners Budget June 1 Deadline for notifying administrators of non-renewal June 15 Deadline for notifying teachers of non-renewal June 21 FY County Operating Budget and 3-year CIP adopted 41

42 Conclusion Superintendent s closing remarks Q & A 42

43 Key Points We do not want to lose ground we have fought so hard to gain We will continue to put resources into the initiatives and strategies that have helped us increase academic achievement We are making progress but it s critical that resources do not shrink to the point we stop making progress We have much more work to do but continued reductions in funding will affect our ability to move students forward and reach SP2014 goals 43