Guilford County Schools Budget for

Transcription

1 Guilford County Schools Budget for Board of Education Retreat January 22, 2011 Presented by Sharon Ozment, CFO

2 BUDGET Budget Resolution = $651,945,431 Funding sources: State ($342.6M) Local ($186.4M) Federal ($82.2M) Capital Outlay ($3.2M) Enterprise Funds Child Nutrition ($30.9M) ACES (After School Care Enrichment Services) ($6.6M) 2

3 BUDGET Operating Budget Revenues/Sources Where The Money Comes From State $ 342,643,112 Local 186,348,911 Federal 82,245,397 Total $ 611,237,420 State 56.1% 13.4% Local 30.5% 3

4 BUDGET Employee Benefits 18.1% Salaries 65.0% Reserve for Operational Expenses 0.6% Supplies & Materials 4.1% Transfers to Charter Schools 0.7% Purchased Services 11.5% 4

5 BUDGET Schools 77.7% Administrative Support Services 22.3% 5

6 FEDERAL FUNDS ARRA (American Recovery and Reinvestment Act) Funds: State Fiscal Stabilization Funds = $20.7M Fund school-based custodians, treasurers, NC WISE data managers, office support (guidance/attendance/registrar) positions Title I Funds = $9.6M Fund positions in Title I schools (schools most impacted by poverty as measured by % of students receiving free or reduced priced meals) VI-B Funds = $5.8M Fund positions serving children with special needs School Improvement Grant (SIG) = $2,864,207 (3-year timeframe) Fund turnaround Oak Hill ES Education Technology = $38,126 Education Jobs Fund (EduJobs) = $14.4M Race to the Top (RTTT) Funds = $9.9M (estimate) 6

7 BUDGET REDUCTIONS/REDIRECTIONS = $21.9M Losses in State funding = $20.7M Increase in employer s hosp ins rate = $569K = $4,157/FTE; = $4,527/FTE Increase in employer s retirement rate = $585K = 8.14%; = 8.75% = $17.7M (in addition to reductions/redirections) Losses in State funding = $10.4M Increase in employer s hosp ins rate = $1.5M = $4,527/FTE; = $4,929/FTE Increase in employer s retirement rate = $682K = 8.75%; = 10.51% Strategic plan implementation/magnet revisioning = $892K Increase in sustaining operations costs = $475K Possible add l 1% state reduction in January 2011 = $3.7M 7

8 STATE BUDGET OUTLOOK November 2010 NC Department of Public Instruction (NCDPI) released 5% and 10% budget cuts provided to Office of State Budget and Management (OSBM) per directive to state agencies 5% budget cuts = $522,022,196 10% budget cuts = $791,311,818 5% and 10% amounts above exclude the recurring $304.8M discretionary reduction (GCS share = $14.8M) GCS share of 5% reduction = $24,782,953 GCS share of 10% reduction = $37,204,517 Allotment areas targeted for reduction by NCDPI: Classroom teachers Instructional Support (counselors, social workers, psychologists, media specialists) Assistant Principals CTE (Career Technical Education) Teacher Assistants 8

9 STATE BUDGET OUTLOOK Allotment Category Classroom Teachers Instructional Support (i.e., counselors, social workers, psychologists, media specialists) Assistant Principals CTE (Career Technical Education) Teacher Assistants NC Dept of Public Instruction s Proposed change(s) to allotment formula(s) 5% Diff Positions 5% Diff Months of Employment 5% Diff Amount Increase class size ratio in grade span K-3 by 1; 4-6 by 2; 7-8 by 3; 9 by 1.5 Current state allotment formulas: 1 teacher per 18 students 1 teacher per 22 students 1 teacher per 21 students 1 teacher per 24.5 students 1 teacher per students (206.50) ($11,367,412) Increase the allotment ratio from 1: ADM to 1: ADM (36.00) ($2,226,672) Increase the allotment ratio from 1:80.00 ADM to 1:92.89 ADM (124.00) ($797,444) Increase the budget ratio from 1:9.033 ADM in grades 8-12 to 1:9.557 ADM in grades 8-12 (169.00) ($970,060) Fund grades K-1 ADM and ½ of grade 2; funding factor = $1, per ADM ($9,421,365) TOTAL(S) (242.50) (293.00) ($24,782,953) 9

10 STATE BUDGET OUTLOOK Allotment Category Classroom Teachers Instructional Support (i.e., counselors, social workers, psychologists, media specialists) Assistant Principals CTE (Career Technical Education) Teacher Assistants NC Dept of Public Instruction s Proposed change(s) to allotment formula(s) 10% Diff Positions 10% Diff Months of Employment 10% Diff Amount Increase class size ratio in grade span K-3 by 1; 4-6 by 3; 7-8 by 4; 9 by 1.5 Current state allotment formulas: 1 teacher per 18 students 1 teacher per 22 students 1 teacher per 21 students 1 teacher per 24.5 students 1 teacher per students (253.00) ($13,927,144) Increase the allotment ratio from 1: ADM to 1: ADM (40.00) ($2,474,080) Increase the allotment ratio from 1:80.00 ADM to 1: ADM (186.00) ($1,196,166) Increase the budget ratio from 1:9.033 ADM in grades 8-12 to 1:9.842 ADM in grades 8-12 (253.00) ($1,452,220) Fund grade K only; funding factor $1, per ADM ($18,154,907) TOTAL(S) (293.00) (439.00) ($37,204,517) 10

11 STATE BUDGET GAP ESTIMATE December 2010 preliminary budget gap estimate report prepared by Fiscal Research Division (a staff agency of the NC General Assembly): FY Revenue Availability Expiration of 1% sales tax on 6/30/11 Expiration of corporate and personal income surtaxes on 6/30/11 Other one-time funds used to balance budget Mid-range potential revenue growth ($0.5B to $0.9B) Preliminary revenue estimate for $19.0 billion $ 1.1 billion $ 0.2 billion $ 0.2 billion $ 0.7 billion $18.2 billion continuation budget $19.0 billion State funds to replace expiring federal ARRA funds $ 1.6 billion One-time reductions and spending $ 0.4 billion Subtotal continuation budget $21.0 billion Potential spending items 2011 session: State retirement system contribution $ 0.3 billion State health plan $ 0.2 billion Education enrollment growth (K-12, UNC and community colleges) $ 0.2 billion Medicaid (preliminary) $ 0.2 billion Subtotal potential spending items $ 0.9 billion Preliminary spending estimate for $21.9 billion Preliminary budget gap for $ 3.7 billion 11

12 BUDGET DEVELOPMENT PHILOSOPHY Staff s approach to date: Use Board of Education s Mission, Core Values and Strategic Plan Achieving Educational Excellence to guide budget development process Reflect projected economic condition(s) Develop 2 to 3 budget reduction targets or tiers TIER 1: 5% reduction in state funds per NCDPI calculation $24.8 million LESS: EduJobs $ allocated in (-$1M for class size adjustments) $13.4 million LESS: WSF (Weighted Student Formula) $ currently held in abeyance $ 3.7 million LESS: WSF $ to be held in abeyance $ 3.7 million LESS: estimated energy savings $ 1.0 million LESS: estimated savings from multi-tier transportation system $ 1.0 million LESS: employee cost saving suggestions $ LESS: administrative budget sheet cuts for Tier 1 $ 2.0 million = TOTAL $ 0.0 million 12

13 BUDGET DEVELOPMENT PHILOSOPHY Staff s approach to date (continued): Develop 2 to 3 budget reduction targets or tiers TIER 2: 10% reduction in state funds per NCDPI calculation $37.2 million LESS: 5% reduction in state funds per NCDPI calcs in TIER 1 $24.8 million = SUBTOTAL $12.4 million LESS: salary reduction (-2 days pay for all GCS employees earning >=$35K) $ 2.9 million LESS: savings due to increasing class size by up to 1 in grades $ 8.0 million K-12 and/or other school-based adjustments LESS: employee cost saving suggestions $ LESS: administrative budget sheet cuts for Tier 2 $ 1.5 million = TOTAL $ 0.0 million 13

14 BUDGET DEVELOPMENT PHILOSOPHY Additional budget reduction possibilities to be discussed with the board: Eliminate/reduce extended Brooks Global Studies, Johnson Street Global Studies and Washington Montessori Eliminate/reduce magnet transportation costs Eliminate/reduce locally funded Mission Possible recruitment and/or retention incentives Eliminate/reduce IB/AP offerings Eliminate/reduce district funds for AP exam fees Eliminate/reduce MS athletics (i.e., supplements, supplies/materials, boys volleyball) Close/repurpose under-utilized schools Establish a 4-day work week during summer months Other 14

15 Millions CAPITAL OUTLAY Annual GCS Capital Outlay Budget Fiscal Years thru $12 $10 $8 $6 $4 $2 $ $10,170,000 $11,514,935 $10,000,000 $7,000,000 $7,000,000 $7,000,000 $4,000,000 $3,200,000 Years 15

16 BUDGET DEVELOPMENT Questions, Answers and Next Steps 16