FY19 Budget Process. Reading School Committee December 18, 2017

Transcription

1 FY19 Budget Process Reading School Committee December 18, 2017

2 Agenda Budget Process FY19 Budget Overview Communication Calendar of Events Questions 2

3 Budget Process School Committee Presentation 3

4 Types of Funds Operating Budget Funds All of the salaries, materials, supplies, and services needed to operate the school district Revenue sources include property taxes, state aid, excise tax, fees, sale of land Property Taxes can only increase 2.5% per year plus any new growth unless community decides on a Proposition 2 ½ override Any funds at the end of the fiscal year need to be returned to the Town s General Fund Capital Funds Targeted at 5% of the operating budget Funds capital improvement projects (i.e. roof replacement) or purchases (i.e. fire truck) RMHS litigation is being funded for next 10 years from this fund Cannot use capital funds to support operating budget Grants and Revolving Accounts Funds raised either by user fees, tuitions, ticket sales, or receiving grants Must be used for specific purposes (i.e. Full Day Kindergarten) 4

5 Budget Fundamentals Budget consists of five Cost Centers Administration Regular Day Special Education District-wide Programs Athletics Extracurricular Health Services Networking and Technology Infrastructure & Maintenance School Buildings (Facilities) 5

6 Administration Smallest Cost Center This Cost Center funds: Central Office Administrators and Administrative Assistants Legal and Auditing Employee Recruiting and Hiring Data and Information Management District Telecommunication Services Annuity Matching Contributions Miscellaneous Supplies & Expenses 6

7 Regular Day Largest Cost Center This Cost Center funds: Building Administrators and Secretaries Regular Education Teachers, Tutors, and Paraprofessionals School Psychologists and Guidance Counselors ELL and Instructional Specialists Teacher Mentor and Leadership Stipends Curriculum Materials Professional Development Substitute Teachers and Paraprofessionals Mandatory Student Transportation ( > 2 miles for K-6) Instructional Materials and Supplies Instructional Technology and Equipment Library Materials and Technology Testing and Assessment Software and Materials 7

8 Special Education This Cost Center funds: Special Education Administrators and Secretaries Special Education Teachers and Paraprofessionals Therapeutic Specialists (OT, PT, SLP) Extended School Year Program Staff and Expenses Legal Services Home and Hospital Tutoring Consultative and Evaluative Services Adaptive Equipment and Technology Testing and Assessment Software, Materials, and Services Instructional Materials and Supplies Transportation Out-of-District Tuition 8

9 This Cost Center funds: District Wide Programs Athletics H.S. Assistant Principal (0.5 FTE), Secretary, and Coaches Officials, Event Detail, and Crowd Monitors Equipment and Field Repair and Maintenance Facility Rentals (Pool, Ice Arena) Transportation Equipment and Supplies Extracurricular Assistant Principal (0.25 FTE) and Advisor Stipends Fees, Memberships, Royalties, and Transportation Supplies & Equipment 9

10 District Wide Programs (cont.) Health Services Director of Nursing and School Nurses School Physician Medical Supplies and Equipment Networking & Technology Infrastructure/Maintenance Network Manager and Technology Support Computer Technicians Internet Service Software and Licensing Network, Infrastructure, and Telecommunications Repair and Maintenance Network, Infrastructure, and Telecommunication Supplies and Equipment 10

11 School Building Maintenance (Facilities) This Cost Center funds: Custodial Manager Custodial Staff Custodial Equipment and Supplies Cleaning Services (RMHS, Coolidge) 11

12 What s Not In the Budget? Funded by Grants, Donations, User Fees, Other Fees Field Trip Expenses Additional Technology Hardware Food Services Non-Mandatory Student Transportation Before and After School Programs Enrichment Programs Students Supplies Additional coaches for athletics Additional advisors for drama, band, and other activities Additional tutor support Research and Development A Portion of Athletics, Extracurricular, Pre-School, and Full Day Kindergarten 12

13 Grants/Reimbursements We Currently Receive State Grants Racial Imbalance (Metco) State Reimbursements Special Education Circuit Breaker Federal Grants (Entitlement Grants) Title 1 Title 2A Title IV IDEA Program Quality Grant (Special Education) Early Childhood Education Federal Grants (Competitive) School Transformation Grant 13

14 Change in Grant Funding (FY17 to FY18) 2017 Grant Funding 2018 Grant Funding Change in Funding Grant Circuit Breaker $ 1,062,769 $ 860,352 $ (202,417) Racial Imbalance - METCO $ 410,080 $ 403,630 $ (6,450) Special Education - IDEA $ 1,020,222 $ 1,014,000 $ (6,222) Early Childhood Education Entitlement Grant $ 18,439 $ 16,994 $ (1,445) Special Education Program Improvement Grant $ 34,809 $16,107 $ (18,702) Special Education Early Childhood Program Improvement $ 2,650 $0 $ (2,650) FY18 data pending Title I $ 107,791 $ 91,810 $ (15,981) Title IIA $ 53,279 $ 54,567 $ 1,288 Title IVA - Student Support and Academic Enrichment Grant $ - $ 2,766 $ 2,766 New grant in FY18 Title I School Improvement Funds - DSAC (Title I Support) $ 6,286 $0 $ (6,286) FY18 data pending State Treasurer's Financial Education Innovation Fund - "Credit For Life" fair $ 5,000 $ - $ (5,000) One year grant School Climate Transformation Grant $ 250,000 $ 250,000 $ - Total change in Grant Funding $ (261,099) 14

15 FY19 Budget Overview School Committee Presentation 15

16 Why Are We in this Situation? Revenues can only increase by 2.5% each year, plus new growth Town of Reading does not have a large commercial tax base New growth is limited Some expenses (i.e. health insurance, special education) increase more than 2.5% leaving less funds for remainder of town and school budgets Chapter 70 Funding is not sufficient (approximately $100,000 increase per year) Override did not pass in October, 2016 In order to maintain level service, budget increases need to be around 3.5-4% per year 16

17 Chapter 70 Education Funding (FY07-FY16) Percent Increase % Increase FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 % Increase 17

18 Total FY16 Per Pupil vs. Comparable Communities District Per Pupil Expenditure Rank District Per Pupil Expenditure Rank Burlington $18,364 1 Walpole $13, Concord $18,012 2 Wakefield $13, Dedham $17,475 3 Milton $13, Lexington $16,941 4 Hanover $13, Bedford $16,232 5 Natick $13, Westwood $16,179 6 Chelmsford $13, Andover $15,501 7 Westford $12, Wilmington $14,722 8 Winchester $12, Sharon $14,627 9 Franklin $12, Nashoba $14, Shrewsbury $12, Westborough $14, Reading $12, Tewksbury $14, Easton $12, Canton $14, Hingham $12, Danvers $14, Belmont $11, Stoneham $14, Holliston $11, Lynnfield $13, Marshfield $11, North Reading $13, Melrose $11, Mansfield $13, North Andover $11, Longmeadow $13,652 19

19 Reading s Average Per Pupil Expenditure vs State Average $18,000 $16,000 $14,000 $12,000 $11,858 $10,149 $12,448 $10,407 $13,006 $13,047 $10,742 $10,749 $13,354 $13,637 $10,976 $11,051 $14,021 $11,281 $14,518 $11,807 $14,936 $12,519 $15,544 $13,284 $10,000 $8,000 $6,000 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 19 READING STATE AVERAGE

20 Reading s Per Pupil Expenditure State Ranking (out of 326 School Districts) State Rank for Per Pupil Expenditure 206 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY S T A 246 T E R 286 A N K READING 20

21 Town of Reading FY19 Budget Process Establish Available Revenues (October) Estimate Projected Accommodated Costs (October) Subtract Accommodated Costs from Available Revenues to Determine Operating Budget Contribution Net Available Revenues are apportioned based on historical share of expenses School share for FY 19 allocated at 64.1% 21

22 Revenue Projection* One Yr One Yr One Yr Projected Changes Projected Changes Projected Changes FY18 FY18 FY19 FY19 FY20 FY20 Total Property Taxes 66,511, % 68,560, % 70,758, % Total Other Local Revenues 7,030, % 7,280, % 7,537, % Total Intergov't Revenues 14,109, % 14,462, % 14,823, % Total Transfers & Available 3,954, % 4,042, % 4,099, % Revs before Free Cash $ 91,605, % $ 94,344, % $ 97,219, % Free Cash 1,200, % 1,200, % 1,200, % Net Available Revenues $ 92,805, % $ 95,544, % $ 98,419, % * Based on information presented at the October 11, 2017 Financial Forum FY19 & FY 20 Property Taxes assumes $500K and $600K new growth each year, respectively FY18 Other Local Revenue recognizes Excise Tax increase attributed to more people Intergov t Revenues includes Chapter 70 funding which assumes a hold harmless $25 per student increase. Other Intergov t Revenues assumes a 2.5% increase As with Health Care Premiums, Fincom has voted to fund any shortfall from Free Cash No new sources or significant changes in forecast 22

23 Accommodated Costs* Projected FY18 % Change Projected FY19 % Change Projected FY20 % Change Benefits 16,496, % 17,605, % 18,785, % Capital 2,259,400 2,925, % 3,014, % Debt (inside levy) 1,884,811 1,526, % 1,698, % Debt (excluded) 2,983,582 2,944, % 2,902, % Energy 1,989, % 2,015, % 2,095, % Financial 840, % 852, % 881, % Education - Out of district 4,033, % 4,445, % 4,668, % Education - Vocational 386, % 405, % 421, % Miscellaneous 3,183, % 3,280, % 3,379, % Community Priorities % 0 0.0% 0 0.0% Accommodated Costs $ 34,057, % $ 36,001, % $ 37,847, % * Based on information presented at the October 11, 2017 Financial Forum 23

24 Projected FY18-19 Accommodated Costs Driving Factors Health Care Based on national trends and discussions with our consultant, we forecast premium increases above 8% annually for the next five years. In line with guidance from FINCOM, we have budgeted +7.5% annually. Fincom has agreed to support any shortfall from Free Cash. Out of District Special Education Costs Evaluating FY18 budget in place the needs of the affected student population is uncertain. State Circuit Breaker Reimbursement was $200,000 less than last year. FY19 assumes 5% increase in OOD and a 5% increase in transportation. 24

25 Revenue and Accommodated Costs * Town of Reading Budget Summary Projected % Projected % Projected % FY17 FY18 Change FY19 Change FY20 Change Total Avail. Revenues $ 90,699,405 $ 92,805, % $ 95,544, % $ 98,419, % Total Accom. Costs $ 33,443,039 $ 34,057, % $ 36,001, % $ 37,847, % * Based on information presented at the October 11, 2017 Financial Forum Town and School Operating budgets impacted by limited revenue growth and a continued growth in accommodated costs. Continued reliance on Free Cash to support Town and School Operating Expenses. 25

26 Total Revenue for Town/School FY19 Budgets $95,544,602 Total Revenue Total Revenue 26

27 Accommodated vs. Non-Accommodated Costs Total Budget 62% 38% Accomodated Costs Non-Accomodated 27

28 Total Expense Breakdown Total Municipal and School Budget $21,358,456 $36,001,919 $38,164,823 Accommodated Schools Municipal 28

29 Budget Projection School Expenses Approved FY'18 Budget Allocated FY'19 Budget * % Change School Expenses (Non-Accomodated) $ 37,367,991 $ 38,164, % School Expenses (Accomodated) 4,033,670 $ 4,445, % Total School Expenses $ 41,401,661 $ 42,610, % Projected Level Service Budget for FY'19 Projected Deficit TBD TBD * Based on information presented at the October 11, 2017 Financial Forum 29

30 School Department will Develop 2 budgets Baseline Balanced Budget (Below Level Service) Restore Budget (For Possible Override) 30

31 District Priorities for FY19 Four Focus Areas Closing the Achievement Gap Literacy Mathematics Instruction Social Emotional Learning Class sizes in K-2 (18-22 students) Middle school interdisciplinary model Ensuring that RMHS Juniors and Seniors have access to coursework for graduation Joshua Eaton School Improvement Plan Process 31

32 Projected Budget Drivers for Baseline FY19 Budget The funding of all contractual step and COLA increases for represented and non-represented employees We will be negotiating new collective bargaining agreements again this year An increase in special education tuition and transportation expenses. Addressing $450,000 in one time expense reductions and additional free cash allotment in FY18 budget to preserve 7.0 FTE middle school teachers A decrease in State Circuit Breaker grant program for special education An increase in athletic facility rental fees (pool and ice) and field maintenance An increase in athletic and regular day mandatory transportation An increase in contractual cleaning services for RMHS. Renewal of anti-virus protection and other software programs. 32

33 School Committee Guiding Principles Discussed in October, 2017 Address any structural deficit Sustainability Direct student contact positions are first priority Maintain previously funded programs ie. Science No gimmicks i.e. Use of offsets, increase projected fees etc. All cuts must be viewed through the lens of promoting the intellectual, physical, social and emotional health of each child. There should be intentional focus on low and inexpensive practices that make the environment and culture one that supports and encourages teachers. Develop well balanced and prepare students for college, career and life. 33

34 School Committee Guiding Principles Discussed in October, 2017 (cont.) To the extent possible protect as much of the staff and programming focused on core academics and the closure of our achievement gap; science curriculum k-12, elementary literacy, math k- 12. The social emotional learning, health, and our co-curricular programming while critical, cannot supersede core academics where difficult choices need to be made. To the extent possible the cuts should be balanced across all levels and the impacts to staff and administrators must be factored in. Too often we make cuts and silently put the burden on teachers, staff, and administrators. Prioritize and complete the assessment of all elementary school students in reading (e.g., comparable FP assessments across all elementary schools) and provide a plan for bringing all students to grade level in reading. Prioritize and complete the assessment of all elementary school students in math/numeracy (e.g., comparable AMC assessments across all elementary schools) and provide a plan for bringing all students to grade level in math. Keep their total % of budget spent in administration at or below the median % spent on administration spent in FY18 by the (12?) comparable districts we use in our existing budget benchmarking process. 34

35 Communication School Committee Presentation 35

36 Communication of FY19 Budget Process Meetings with School Councils and PTOs Budget Liaisons Budget Bulletins School Committee Meetings Community Discussions 36

37 Calendar of Events School Committee Presentation 37

38 Key FY19 Budget Dates October 11 Dec 12,13,19 & 20 December 18 January 8 th January 10 th January 11 th Financial Forum I Board of Selectmen Budget Meetings School Committee Meeting- Prebudget Process Overview School Committee Presentation: Administration, District Wide, School Facilities and Capital School Committee Presentation: Regular Day, Special Education School Committee Presentation: Public Hearing, Override Budget January 16 th School Committee Presentation: Questions January 18 th School Committee Presentation: Final Vote January 24 January 30 February 7 February 8 February 14 February 15 Financial Forum II Town Manager Budget to FINCOM FINCOM: School budget FINCOM: Town budgets FINCOM: Other FINCOM: Vote Budgets & Articles 38

39 Questions School Committee Presentation 39