FY 2016 Q & A. Proposed Budget. Follow-Up Questions Board of Education, Finance, Audit and Budgeting Committee Meeting.

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1 Raymond Brown Chief Financial Officer FY 2016 Proposed Budget Q & A Follow-Up Questions Board of Education, Finance, Audit and Budgeting Committee Meeting January 14, 2015 Responses provided: February 6, 2015

2 Business Management Services FY 2016 Proposed Budget Q & A Follow-Up Questions Finance, Audit and Budget Committee January 14, 2015 INTRODUCTION 1. Page 18 Fiscal Highlights/Redirected Resources What positions are included in the 9.00 FTE reductions? 2. Page 18 Fiscal Highlights a) How many students will be served by for each program? Provide table to include a list of all expansions by school and number of students. List of expansions Charter Schools FY15 to FY16 b) Home and Hospital Teaching are students being serviced all year long? 3. Page 18 Fiscal Highlights/Organization Improvement Provide breakout of the17 FTE and $12 million for International schools. 4. Page 19 Pupil Population a) How many evening high school students are included in the 9-12 full-time enrollment? b) If we are expanding prekindergarten, why are the numbers for 2015 and 2016 the same? 5. Page 19 Pupil Population How did we project an additional 27 for non-public for FY 2016? 6. Page 22 CIP Routine and Non-Routine On Page 22, the total state contribution for routine and non-routine expenditures is $59,447,000, not the $68,742,000 in the table on page 23. However, when the carryover of $9,285,000 is added, the amount in the table is correct. Why was the carryover added to the State contribution and not the county contribution? 7. Page 23 CIP Are the dollar amounts for future years actual funding levels or requested funding levels? How are the number derived? FINANCIAL PLAN 8. Page 32 Debt Management Explain how we monitor to ensure that the debt does not exceed 5% of the unrestricted budget? 9. Page 33 Nine-Year Debt History 5% x 1,716,249,495 (unrestricted) = 85,812, Out debt is $114,735,070 it appears that our debt exceeds 5% of the unrestricted budget. a) Provide updated schedule to include 2015 and 2016 projected. b) Explain the debt coverage ratio and how individual revenue streams must meet a 2% debt coverage ratio test. 10. Page 36 Before and After School Fund Since Before and After School funds are housed in the respective schools, are there orientation sessions for school personnel who collect these funds? How often do we run into mismanagement of funds and who prepares and monitors reports on revenue and expenses of school funds collected? 11. Page 36 Self-Insurance Fund Provide more detailed description of self-insurance fund. 12. Page 37 School Activity Fund Where are school activity funds? FAB Meeting Page 2

3 Business Management Services FY 2016 Proposed Budget Q & A Follow-Up Questions Finance, Audit and Budget Committee January 14, Page 37 School Activity Fund Since School Activity funds are housed in the respective schools, are there orientation sessions for school personnel who collect these funds? How often do we run into mismanagement of funds and who prepares and monitors reports on revenue and expenses of school funds collected? 14. Page 38 Budget Highlights a) Cost per student allocation Why is it much lower than charter schools? b) How do we compare with other jurisdictions? 15. Page 39 Budget Projections / State Aid Does State Aid include GCEI? 16. Page 41 Revenue Sources Provide example of Board Sources. 17. Page 43 State Sources Explain the Foundation Program. 18. Page 43 Fund Balance a) What is the current fund balance? b) What is the preferred practice for fund balance? c) How did we generate the fund balance? d) How much do we presently have in the fund balance? e) What is the desired amount that should exist in the Fund Balance? 19. Page 44 Special Revenue Funds Should Food Services be self-supporting? Food & Nutrition Services What are considered board subsidies here? 20. Page 44 to 45 Special Revenue How is special revenue generated? 21. Page 46 Restricted Program Summary a) Do grant funds support school-based programs or the school system? b) Provide a list of schools by grants. 22. Page 55 Staffing by Organization Payroll & Benefits realignment Did we add positions? 23. Does the FY15 discretionary freeze impact FY16? 24. Vacancies Provide a vacancy report by job. SCHOOL-BASED RESOURCES 25. Page 60 Per Pupil Weights Does the State have any say on how it is weighted? 26. Page 61 Student Weighted Formula a) Why are we spending more on ESOL? b) How many students get more than 1 weight? c) How much of budget is related to international schools? d) What expenditures are covered in Base Funding? e) There is $68,700,000 in the SBB budget not included in Base Funding. What is the rationale for spending approximately 38% of those dollars or $26,000,000 on one of nine FAB Meeting Page 3

4 Business Management Services FY 2016 Proposed Budget Q & A Follow-Up Questions Finance, Audit and Budget Committee January 14, 2015 categories of students or approximately 10.4% of the students in all categories? There is a stalk contrast in the percentage of those dollars (6.6%) of $4,500,000 for Double Basic learners that make up 9.8% f) What is covered with the $26 million for ELL students and the $4.5 million for Double Basic students? g) Why is it that we are proposing to spend approximately 5½ times more on ELL learners ($1,450) than on Double Basic learners ($268) when both groups have language challenges? The Double Basic learners also have mathematics challenges. h) How many of the ELL students are included in the Poverty Category? 27. Pages Student Weighted Formula Is ELL and ESOL the same? Please provide exact definition and how the criteria used to identify students to those classifications. 28. How many student are double basic and ELL? 29. Page 61 Student Weighted Formula How much of the budget included in the International schools is ELL? 30. Page 62 Student Weighted Formula What is the true percentage of ESOL/ELL? 31. Page 62 Table 2: SBB ESOL Weights a) Why use ESOL rather than ELL? b) Do we use ELL and ESOL interchangeably? 32. Page 63 Student Weighted Formula a) Provide an explanation of funding caps. b) Explain the rationale for the per pupil adjustment cap. c) Should we understand that this cap only pertains to the Basic Funding provided? 33. Page 65 Position Status Can schools purchase Locked+ positions? 34. Page 70 Locked Program Resources Dual Language 3 position In addition to locked resources allocated for language immersion programs, how is additional staff acquired to support the program? 35. Pages School Demographics If the information is correct, then of the 121,783 students in K-12, approximately 16% or 19,051 are ESOL students receiving aid. Please explain the percentages and numbers and give us an idea of the number of ESOL students that do not receive aid. 36. Pages 82 and 83 Why is Academy of Health Sciences at Prince George s Community College listed as both an Alternative School and a Specialty School? 37. Page 83 Specialty Schools Of the 34 schools listed as Proposed Specialty School Locations, which ones are new? 38. Page 84 Staffing School-Based Resources Five additional Reading Specialists will be added to the 84 currently on board. Where will theses specialist be assigned? 39. Page 90 Charter School Per Pupil Allocation a) Explain the formula and how it may differ from the one used per pupil not enrolled in FAB Meeting Page 4

5 Business Management Services FY 2016 Proposed Budget Q & A Follow-Up Questions Finance, Audit and Budget Committee January 14, 2015 charter schools. b) Why is there a difference in the per pupil amounts the charter School Per Pupil Allocation is $9,546, the non-charter School per pupil allocation is $14,274 (K-12) and $13,879 (Pre- K). c) Are there expenses for charter Schools in other categories? FAB Meeting Page 5

6 Business Management Services FY 2016 Proposed Budget Q & A INTRODUCTION 1. Page 18 Fiscal Highlights Redirected Resources What positions are included in the 9.00 FTE reductions? The reduction of (9.00) FTE included in Redirected Resources reflects (1.00) Hyperion Developer III and (7.00) restricted program positions (three classroom teachers, three paraprofessionals, and one instruction specialist) due to the ending of the Prekindergarten Expansion Grant. The additional (1.00) position is an error that is offset by the addition of 1.00 position under Organizational Improvements for Science Technology Engineering and Mathematics (STEM). 2. Page 18 Fiscal Highlights a) How many students will be served by for each program? Include a table to include a list of all expansions by school and number of students. Provide a list of expansions for Charter Schools FY 2015 to FY 2016 The table below provides a listing of all program expansions by school and the number of students served. The Charter school expansions proposed for FY 2016 impact current schools with a grade expansion only. These expansions are also listed in the table below: Program Schools Students Served FTE Cost Charter Schools - Additional Grades Imagine Morningside Imagine Andrews College Park Chesapeak Math and IT (South) Chesapeak Math and IT (North) $ 5,084,123 Creative & Performing Arts Expansion Benjamin Foulois Academy Edward Felegy ES Thomas Pullen MS 2, $ 417,629 IT High School Duval HS $ 83,526 Language Immersion Not Yet Determined $ 1,085,835 Montessori Expansion John Hanson Montessori $ 83,526 Pre-Kindergarten Expansion Not Yet Determined $ 1,281,912 Reading Specialist Not Yet Determined 1, $ 492,603 Saturday School Not Yet Determined - $ 100,000 Science Technology Engineering & Mathematics (STEM) Oxon Hill MS Thomas Johnson MS $ 334,101 b) Home and Hospital Teaching are students being serviced all year long? Home and Hospital teachers provide services to students with chronic conditions for the entire school year. The students with intermittent conditions are served based on the update of the physician s verification every 60 days FAB Meeting Page 6

7 Business Management Services FY 2016 Proposed Budget Q & A 3. Page 18 Fiscal Highlights/Organization Improvement Provide breakout of 17 FTE and $12 million for International Schools. The charts below reflect the International Schools projected funding and staffing: International Schools Staffing FTE (FY 2016) Social Workers 2.00 Principal 0.00 Professional School Counselor 0.00 Secretary 0.00 Project Manager 0.00 Classroom Teachers (12 months) Technologist (12 Month) 1.00 Custodians 2.00 Total Expense Category Object Category Estimated Budget (FY 2016) School Expense Contracted Services $707,794 Employee Benefits $280,305 Equipment- Capital Outlay $330,000 Other Operating Expense $14,760 Salaries & Wages $1,335,858 Supplies & Materials $261,912 School Expense Total $2,930,629 Facility Expense Options: Contracted Services: Major Renovs + Utilities + Insurance $9,843,947 Total School Expense w/major Renovs $12,774, Page 19 Pupil Population a) How many evening high school students are included in the 9-12 full-time enrollment? Currently, there are 69 concurrently enrolled evening high school students, however, this number does not reflect forthcoming second semester enrollment. b) If we are expanding prekindergarten, why are the numbers for 2015 and 2016 the same? The systems prekindergarten expansion is designed to increase the opportunity within the elementary schools to transition current programs from half-day classes to full-day classes. As a result, there is no impact to enrollment because the student base from half-day to full-day remains the same FAB Meeting Page 7

8 Business Management Services FY 2016 Proposed Budget Q & A 5. Page 19 Pupil Population How did we project an additional 27 for nonpublic for FY 2016? The official Maryland State Department of Education (MSDE) Nonpublic enrollment for Prince George s County Public Schools as of September 30, 2014 was 898. However, the total nonpublic student enrollment at the end of the FY 2014 (June 30, 2014) was 913. The difference in the two enrollment numbers can be attributed to students who moved out of the district and/or graduated or aged out of the Special Education Nonpublic Program. Since the nonpublic enrollment is so fluid, when projecting enrollment for FY 2016, the Nonpublic Office wanted to demonstrate the highest possible enrollment and the impact it would have on nonpublic education. Therefore, the projection was completed using the enrollment number at the end of the FY 2014 of 913 adding the new Kennedy Krieger Institute program which will provide 12 additional seats for a total of 925 possible placements for nonpublic students. Enrollment as of June 30, Additional seats added for FY Subtotal 925 Enrollment as of September 30, 2014 (848) Projected increase for FY Page 22 CIP Routine and Non-Routine On Page 22, the total state contribution for routine and non-routine expenditures is $59,447,000, not the $68,742,000 in the table on page 23. However, when the carryover of $9,285,000 is added, the amount in the table is correct. Why was the carryover added to the State contribution and not the county contribution? The $68,732,000 represents the total FY 2016 State's request. This request includes forward funded projects for a total of $9,285,000 which is State money that is owed to PGCPS and not County funds that are requested in FY Therefore, the $9,285,000 was the carry over that was added to the State's request. The net State's request is $59,447,000 for new money. 7. Page 23 CIP a) Are the dollar amounts for future year s actual funding levels or requested funding levels? The dollar amounts shown for future years are projected funding requests to support the projects in each fiscal year based on the current estimated cost (FY 2016). In some cases, the projected amount is the balance of funding from the State or County to complete the project. Most capital projects are multi-year funded, except the systemic projects (i.e., roofing, boiler, etc.) which are one year funded requests. b) How are the number derived? The numbers are derived from cost per square foot estimates, actual bid costs, architectural engineering estimates, or a funding shortfall FAB Meeting Page 8

9 Business Management Services FY 2016 Proposed Budget Q & A FINANCIAL PLAN 8. Page 32 Debt Management Explain how we monitor to ensure that the debt does not exceed 5% of the unrestricted budget? As of December 31, 2014, the Debt Principal Capacity ratio (without the energy performance leases) was 3.38%. With the energy performance leases, the Debt Principal Capacity increases to 7.53%. In addition, with or without the energy performance leases, the Debt Capacity Ratio is under the 2% guideline. The Debt Principal Capacity ratio increases to 7.97% if the FY 2016 $43M projected debt is included. 9. Page 33 Nine-Year Debt History 5% x 1,716,249,495 (unrestricted) = 85,812, Out debt is $114,735,070 it appears that our debt exceeds 5% of the unrestricted budget. Provide updated schedule to include 2015 and 2016 projected. Explain the debt coverage ratio and how individual revenue streams must meet a 2% debt coverage ratio test. Attachment Question 9 provides an updated schedule inclusive of fiscal years 2015 and 2016 projected. The debt is monitored consistent with Board Policy The Assistant Treasurer reports to the Chief Financial Officer quarterly. Debt exceeding benchmark ratios is approved by the Chief Executive Officer. The debt coverage ratio, or debt service capacity, is the total annual debt service payments as a percentage of total actual unrestricted general fund revenues. It measures the capacity of the school system to meet its annual long term debt service obligations. A low percentage (2% or lower) indicates greater capacity to meet annual long term debt service obligations. The ratio formula is (n1/n1) x100 n1 = total actual annual debt service payments required to repay long term debt obligations of the school system and N1 = total unrestricted general fund revenues. 10. Page 36 Before and After School Funds Since Before and After School funds are housed in the respective schools, are there orientation sessions for school personnel who collect these funds? How often do we run into mismanagement of funds and who prepares and monitors reports on revenue and expenses of school funds collected? The Before and After School program is a revenue generating program located within our schools, but managed by central office personnel. The funds that are collected for the students enrolled in this program are also managed centrally and not at the schools facilitating the program. Specific guidelines have been set forth to help ensure that accountability and provide minimal risk for potential mismanagement of funds. For instance, all funds collected are immediately issued receipts, deposited and sent to the assistant treasurer s office. All funds collected are collected either electronically or by check/money orders. The central office financial team monitors revenue collected by using comparisons against monthly enrollment averages. Additionally, periodic spot checks are FAB Meeting Page 9

10 Budget & Management Services FY 2016 Proposed Budget made by field coordinators and internal audits are conducted by the central office financial team as well. 11. Page 36/37 Self-Insurance Fund Provide more detailed description of self-insurance fund. The Self-Insurance Fund is a non-operating fund that covers expenditures for both health insurance and automobile related claims. The health insurance component is comprised primarily of revenue sources collected from health insurance premiums from both the Board of Education and employees, both past and present. This fund covers all insurance plans including health, dental, prescription and vision. Also included are funds associated with employee life insurance. Additional revenue is also received in the form of rebates from Carefirst for prescriptions and from the Federal Government for reimbursement of Medicare Part D. Revenue associated with the automobile component is collected from the Board of Education at the end of the fiscal year. Expenses to the Self-Insurance Fund cover various claims, administrative expenses to manage the fund, affordable health care act fees, and certain employees within the Benefits Administration Office that work primarily on health insurance activities. At the end of the fiscal year, if revenue exceeds expenditures, the fund will have a positive fund balance that will carry over to the next fiscal year. These funds can be used to offset future increases, but must remain within the fund as utilization of the fund balance for other purposes would pose a potential risk of the district not meeting the obligations of employee contracts as negotiated. If revenues are lower than expenses, this will create a negative fund balance which will be built into the next years premiums resulting in an increase in premiums. In FY 2014, a decision was made that the fund status would be reviewed on an annual basis by management to determine if revenue from Medicare Part D reimbursements could possibly be directed towards the OPEB Trust Fund. This is not an automatic transfer and the amount would be determined by the performance of the fund and other factors. 12. Page 37 School Activity Fund Where are school activity funds? School activity funds reside in schools' respective bank accounts. The source of these funds is collections at the school level for extra-curricular activities. 13. Page 37 School Activity Fund Since School Activity funds are housed in the respective schools, are there orientation sessions for school personnel who collect these funds? How often do we run into mismanagement of funds and who prepares and monitors reports on revenue and expenses of school funds collected? There are student activity fund training sessions for Bookkeepers and staff. Bookkeepers are mostly trained by Accounting Office staff. Principals receive training in a variety of ways: upon request for one on one training from Internal Audit; training sessions held by Area Offices; Summer training institutes, and during audit engagements while Internal Auditors are onsite FAB Meeting Page 10

11 Budget & Management Services FY 2016 Proposed Budget Internal Audit usually becomes aware of mismanagement of funds while customary audits are being conducted or by someone (i.e., principal, staff, parent) reporting suspicion of mismanagement. Although corrective action for strengthening internal controls and adherence to policies and procedures is recommended in primarily every audit performed, instances of mismanagement of funds is not widely noted as compared to all audits conducted annually. Schools are required to submit financial reports of funds received and expenditures quarterly to Internal Audit. Internal Audit performs a review of these reports. A more detailed review is conducted during periodic Internal Audits of schools' student activity funds. 14. Page 38 Budget Highlights a) Cost per student allocation Why is it much lower than charter schools? The FY 2016 proposed cost per pupil is $14,274 for K-12, which is $4,728 higher than the charter school per pupil allocation of $9,546. The process that is used to calculate these figures have different exclusions which is the reason for the variance in these two numbers. b) How do we compare with other jurisdictions? The table below provides a comparison of per pupil costs for surrounding jurisdictions as provided in Washington Area Boards of Education Guide (WABE). This is a uniform formula developed by the WABE committee for consistency area wide. These numbers are comparable; however, the cost per pupil reported here may differ from that reported in individual districts' budget documents or other reports. School District FY 2015 Approved Alexandria City $ 17,041 Arlington County $ 19,040 Fairfax County $ 13,519 Falls Church City $ 17,109 Loudoun County $ 12,195 Manassas City $ 12,613 Manassas Park City $ 10,836 Montgomery County $ 15,351 Prince George's County $ 12,902 Prince William County $ 10, Page 39 Budget Projections State Aid Does State Aid include GCEI? State Aid was included in the Geographic Cost of Education Index (GCEI) FY 2016 preliminary draft calculations as of January 23, Prince George s County Public Schools will only receive half of the GCEI it is scheduled to receive. The State only included $20,023,393 of the $40,046,786 anticipated funding from the GCEI component of the funding formula FAB Meeting Page 11

12 Budget & Management Services FY 2016 Proposed Budget 16. Page 41 Revenue Sources Provide example of Board Sources. Board Sources are funds received from non-government sources including tuition, reimbursement for use of buildings and vehicles (e.g., reimbursements for community building use), interest earnings on cash investments, and other miscellaneous revenues (e.g., sales of assets). 17. Page 43 State Sources: Explain the Foundation Program. The Foundation Program is part of Major State Aid used to fund Maryland school districts based on enrollment. Maryland provides a foundation funding program intended to guarantee a set minimum or foundation level of per-pupil expenditures to children in all school systems of the State through a combination of state aid and local revenue. The "maintenance of local effort" has been in the foundation formula since In 1996, the local maintenance of effort requirements was altered by authorizing counties to spend fewer dollars in times of decreasing enrollment and by authorizing the State Board to grant a temporary or partial waiver in certain circumstances. Under the Bridge to Excellence in Public Schools Act of 2002, commonly referred to as Thornton, school systems receive a basic per pupil funding amount through the Foundation Program. The formula recognizes the disparities in local abilities to raise revenue from local sources. It provides less wealthy counties, as measured by property assessable base and net taxable income, relatively more aid than wealthier counties. More precisely, aid is distributed inversely to wealth per student. Overall, the State and counties each provide about 50% of the minimum foundation. The State/Local shares of the minimum foundation however, vary from county to county depending on local wealth. 18. Page 43 Fund Balance a) What is the current fund balance? The current General Fund balance as of June 30, 2014, is $133,035,593. The details associated with the General Fund Fund Balance are provided below: Non-spendable Inventories and Prepaid $ 6,288,265 Restricted Grant Programs $ 334,289 Assigned To: Student Needs $ 49,000,000 Supporting Employees $ 36,000,000 OPEB Trust Fund $ 10,000,000 Retirement Burden Shift-Teacher Pension $ 13,582,153 Special Projects $ 53,666 Encumbrances $ 16,017,873 $ 124,653,692 Unassigned $ 1,759,347 Total Fund Balance $ 133,035, FAB Meeting Page 12

13 Budget & Management Services FY 2016 Proposed Budget b) What is the preferred practice for fund balance? The Government Finance Officers Association (GFOA) recommends that governments establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund. Such a guideline should be set by the appropriate policy body and should provide both a temporal framework and specific plans for increasing or decreasing the level of unrestricted fund balance, if it is inconsistent with that policy. The adequacy of unrestricted fund balance in the general fund should be assessed based upon a governments own specific circumstances. Nevertheless, GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. The choice of revenues or expenditures as a basis of comparison may be dictated by what is more predictable in government s particular circumstances. Furthermore, a government s particular situation often may require a level of unrestricted fund balance in the general fund significantly in excess of this recommended minimum level. In any case, such measures should be applied within the context of long-term forecasting, thereby avoiding the risk of placing too much emphasis upon the level of unrestricted fund balance in the general fund at any one time. c) How did we generate the fund balance? Fund Balance was generated through a combination of funds not spent in the prior year along with inventories, pre-paids, restricted grant funds, special projects, and encumbrances. The unspent unrestricted funds include salary lapse associated with vacant positions and timing of filling positions, payroll taxes and fringe benefits associated with salaries, and unspent funds appropriated for discretionary spending. d) What is the desired amount that should exist in the Fund Balance? The Board of Education has not adopted a minimum fund balance policy. However, the school system has established a process of applying expenditures against committed amounts first, followed by assigned amounts, and then unassigned amounts (Reference: Comprehensive Annual Financial Report (CAFR): Note 15 Fund Balance Policy and Reporting page 51). 19. Page 44 Special Revenue Funds Should Food Services be self-supporting? Food & Nutrition Services What are board subsidies here? Food & Nutrition Services is expected to be self-supporting. Revenue is generated from state and federal reimbursement for meals served to students, student payments and adult sales. In previous years, expenses have exceeded revenue due to increased cost of food, supplies, wages and benefits requiring financial supplement from PGCPS Operating Budget. On page 44, the Board Subsidy represents a $2.7 million supplement in addition to revenue received to assist with the increase in operational expenses. 20. Page 44 to 45 Special Revenue How is it generated? See table on next page FAB Meeting Page 13

14 Budget & Management Services FY 2016 Proposed Budget FY 2016 Revenue as Percent of Food and Nutrition Services Revenue Source % of Revenue Explanation Federal Subsidy 76.1% Federal subsidies supporting the Food and Nutrition program are estimated based on the formula applied to the number of students eligible for free and reduced meals and estimated participation. State Subsidy 2.5% State subsidies supporting the Food and Nutrition program and are estimated based on the formula applied to the number of students eligible for free and reduced meals and estimated participation. Board Subsidy 3.9% Board subsidies fund ongoing Food and Nutrition expenses when expenditures exceed revenues. US Donated Commodities 4.7% Revenues valuing United States donated commodities are based on historical trends adjusted for anticipated availability. Interest & Other Income 1.6% Interest & Other Income reflect miscellaneous provider reimbursements, payments and rebates. Sales 11.2% Sales estimated reflect student participation trends adjusted for anticipated meal price changes. Total 100.0% 21. Page 46 Restricted Program Summary Do grant funds support school-based programs or the school system? Provide a list of schools by grants. Grant funds support the entire school system in an attempt to supplement activities and initiatives outlined in the Bridge to Excellent Master Plan. The Restricted Program budget totals $122 million projected from various funding level (i.e., federal, state, local, and private and civic foundations). Approximately 41% of the grant funded total budget supports school-based programs and initiatives. A number of our grants also support ideas and activities that span across offices and divisions district-wide. Attachment Question 21 provides the list of schools supported by projected grant funding in whole or in part within the district as part of the FY 2016 proposed budget. 22. Page 55 Staffing by Organization Payroll & Benefits realignment Did we add positions? Twelve (12.00) positions were realigned from Payroll Services to the newly created Benefits Administration Office. An additional 2.00 FTE were added directly to the Benefits Office after the FYs2015 budget was reconciled and adopted in June Does the FY 2015 discretionary freeze impact FY 2016? The FY 2015 discretionary freeze is a cost saving measure intended to support critical program needs for FY 2015 and to generate fund balance to support FY FAB Meeting Page 14

15 Budget & Management Services FY 2016 Proposed Budget 24. Provide a vacancy report by job. See Attachment Question 24 for Vacancy Report SCHOOL-BASED RESOURCES 25. Page 60 Per Pupil Weights Does the State have any say on how it is weighted? No, specific weights are presented to the Board for approval, similar to the SBB directed portion of the overall operating budget. 26. Page 61 Student Weighted Formula a) Why are we spending more on ESOL? Limited English Proficiency (LEP) students generate over $79 million in Limited English Proficiency Aid in State Revenue (see Budget Book page 45). Under Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974, public schools must ensure that English learner (EL) students can participate meaningfully and equally in educational programs (Note: equally does not necessarily mean equally funded, as they have additional revenue and additional required services). Under SBB, funding for ESOL weights purchases the required ESOL-certified teachers who directly provide ESOL related services and support alongside the classroom, or content teacher. Under federal law, PGCPS ESOL program as a whole must to ensure that English learner students have equal access to a high-quality education and the opportunity to achieve their full academic potential; our obligations include: identify English learner students in a timely, valid and reliable manner; offer all English learner students an educationally sound language assistance program; provide qualified staff and sufficient resources for instructing English learner students; ensure English learner students have equitable access to school programs and activities avoid unnecessary segregation of English learner students from other students; monitor students progress in learning English and doing grade-level classwork; remedy any academic deficits English learner students incurred while in a language assistance program; move students out of language assistance programs when they are proficient in English and monitor those students to ensure they were not prematurely removed; evaluate the effectiveness of English learner programs; and provide limited English proficient parents with information about school programs, services, and activities in a language they understand. b) How many students get more than 1 weight? All students get the base weights. Students in kindergarten, 1st, 6th, 7th, 8th, and 9th grade also receive their grade weights (56,193 total students for FY 2015). In addition for FY 2015, 71,790 students received a farms weight, 17,941 received an ESOL weight, 16,835 received a double basic weight, and 9,060 received a double advanced weight FAB Meeting Page 15

16 Budget & Management Services FY 2016 Proposed Budget Students enrolled in our 45 small schools receive a weight because they attend a small school (student weight would be calculated by the Small School Subsidy for their school / enrollment of their specific school) c) How much of budget is related to international schools? The International Schools are set up similarly to our alternative high schools and therefore do not participate in SBB. All positions are locked and tied directly to programmatic need, similar to any alternative or specialty program. Specific student characteristics will be available later in the spring as students enroll, however if those students would have been beginner ESOL students, in 9th grade at a traditional high school, under SBB they would have received: $3,110 base weight $336 9th grade weight potentially $268 for Double basic potentially $95 for FARMS They also would have had access to all other locked resources within their high school, such as ROTC, Career & Technology Education, Secondary School Reform, AVID, high school athletics, etc. (for complete list, please see Locked Program Resources on pages and of the budget document). d) What expenditures are covered in Base Funding? Base funding supports general education classroom teachers, front office support, out-ofclassroom instructional support and administration (principals are provided to all schools and do not need to be purchased). For example, schools purchase assistant principals, guidance counselors (one is Locked for all elementary schools), reading specialists, instructional lead teachers, school secretaries, classroom educators, and para educators. Schools that house specialty programs receive locked staffing solely to implement and support those programs. e) There is $68,700,000 in the SBB budget not included in Base Funding. What is the rationale for spending approximately 38% of those dollars or $26,000,000 on one of nine categories of students or approximately 10.4% of the students in all categories? There is a stalk contrast in the percentage of those dollars (6.6%) of $4,500,000 for Double Basic learners that make up 9.8%. After the base weight (84% of the total budget), we allocate $26 million to ensure compliance and services for ELL students. The balance is directed to: grade weights, K, 1 = $3.4 million for lowered desired class size $22.8 million grades grade 9 $3.7 million to address class size and retention $4 million directly to 45 small schools to fund teachers and school operations $6.8 million for nearly 72,000 FARMS eligible students Remaining $5.3 million based on student achievement data FARMS & Performance weights were created to provide schools some autonomy to direct funds and provide differentiated services and programs for particular student needs FAB Meeting Page 16

17 Budget & Management Services FY 2016 Proposed Budget f) What is covered with the $26 million for ELL students and the $4.5 million for Double Basic students? English Language Leaners (ELL) funds purchase the ESOL certified classroom teachers responsible for: providing direct instruction, monitoring student progress, completing testing and providing accommodations, working with general educators and performing school-based compliance activities. The double basic weight is designed as a supplement to the base, grade, FARMS and ESOL weight to provide additional funding for intervention programs, activities, materials, etc. g) Why is it that we are proposing to spend approximately 5½ times more on ELL learners ($1,450) than on Double Basic learners ($268) when both groups have language challenges? The Double Basic learners also have mathematics challenges. Based on their Limited English Proficiency, ELL students generate over $79M in revenue to provide federally mandated services. With additional funding, we could provide Double Basic students more supplemental funding via SBB, or via enhancements to centrally-managed programs (such as Reading Recovery and Locked Reading Specialists, etc.). h) How many of the ELL students are included in the Poverty Category? FARMs data is based on each school s prior year (10/31) eligibility rate, so the FARMs rate is applied as a percentage to the entire school s enrollment in the next year; we don t monitor specific students within the Poverty category. 27. Pages Student Weighted Formula Is ELL and ESOL the same? Please provide exact definition and the criteria used to identify students to those classifications. English language learner (ELL) refers to a student in the ESOL program who is eligible to receive state and federal funding based on their Limited English Proficiency (LEP) status. English Language Learner (ELL) an actual student, who speaks a language other than English at home (whether born here or abroad) and scores below proficient on ACCESS for ELLs, the English Language Proficiency Assessment used by 35 states across the US. A student is considered proficient on ACCESS for ELLs if they score at the level of 5.0 overall and at least a 4.0 on both reading and writing. English for Speakers of Other Languages (ESOL) Refers to programs, personnel, and the office associated with the district s program. Limited English Proficiency (LEP) Refers to a State and Federal term, classified under the No Child Left Behind Act, on which funding is based. 28. Page 62 Table 2: SBB ESOL Weights Why use ESOL rather than ELL? Do we use ELL and ESOL interchangeably? Please refer to the response provided above (Question 27) FAB Meeting Page 17

18 Budget & Management Services FY 2016 Proposed Budget 29. How many student are double basic and ELL? Based on FY 2013 performance data used for the FY 2015 budget cycle, 1,176 double basic students in grades 3 thru 8 also received ESOL services. The FY 2016 funding model will be finalized in March See MSA and FARMS/ESOL data below: 30. Page 61 Student Weighted Formula How much of the budget included in the International schools is ELL? International schools are not funded under Student-Based Budgeting (SBB). SBB is a locked program similar to our alternative high schools. Admissions criteria should be available when the student application and application guidelines are published in the spring. 31. Page 62 Student Weighted Formula What is the true percentage of ESOL/ELL? The official ESOL/ELL enrollment represents 15.79% of the total pupil population when compared to the September 2014 enrollment. English Language Learners K-12 (ELL) 19,229 Total Pupil Enrollment (K-12) 121, FAB Meeting Page 18

19 Budget & Management Services FY 2016 Proposed Budget 32. Page 63 Student Weighted Formula Provide an explanation of funding caps. Explain the rationale for the per pupil adjustment cap. Should we understand that this cap only pertains to the Basic Funding provided? The caps are designed so that individual schools do not gain or lose more than 4% of their per-pupil allotment between budget years due to changes in their school population that schools do not have the ability to control. For example, a school s 6th grade is moved to middle school and since 6th grade enrollment receives a grade weight, we ease the reduction of funds so the school doesn t lose more than 4% in a single year. This cap only monitors the SBB per-pupil, increases in resources based on centrally managed resources, specialty programs, etc. are not considered. 33. Page 65 Position Status Can schools purchase Locked+ positions? Yes, under Student-Based Budgeting (SBB) schools do have the autonomy to purchase more than the districts minimum locked FTE. Example: A school is allocated a 0.80 Art teacher based on their enrollment then purchases the additional 0.20 with SBB funds to keep the teacher in the building full time. 34. Page 70 Locked Program Resources Dual Language 3 positions In addition to locked resources allocated for language immersion programs, how is additional staff acquired to support the program? The Dual Spanish Immersion programs operate in schools that receive Student-Based Budgeting (SBB) funding. As a direct result, foreign language teachers are allocated / purchased by the school through the school s SBB allocation. Additional staffing and program resources for the language immersion program are allocated, subject to funding availability, based on assessment and distributed by the Department of Curriculum and Instruction s World Languages office. 35. Pages School Demographics If the information is correct, then of the 121,783 students in K-12, approximately 16% or 19,051 are ESOL students receiving aid. Please explain the percentages and numbers and give us an idea of the number of ESOL students that do not receive aid. There are 19,056 students between grades K-12 identified within SchoolMax as of September 30, 2014, as Limited English Proficient (LEP). The percentage is derived of total number of students identified as LEP divided by the total number of students. Registration for all English language learners begins at the International Student Counseling Office (ISCO). Students register at ISCO if they speak a language other than English in the home and/or they are born outside of the United States. Students are enrolled in the English for Speakers of Other Languages (ESOL) program if they have not yet reached full English proficiency in the four domains of language (listening, speaking, reading and writing) as determined by the WIDA-ACCESS Placement Test. Parent of students that are eligible for ESOL service do have the right to opt-out of accessing these services. At this time, approximately 136 students have opted out of receiving aid FAB Meeting Page 19

20 Budget & Management Services FY 2016 Proposed Budget 36. Pages 82 and 83 Why is Academy of Health Sciences at Prince George s Community College listed as both an Alternative School and a Specialty School? The Academy of Health Sciences at Prince George s Community College (AHS) is listed on the Alternative Schools page and specialty programs due to the school s instructional delivery and entrance requirement via lottery. AHS is a high school whose instructional delivery does not completely conform to the delivery of our other high schools due to its college setting components. Additionally, it is listed on the specialty programs page due to the lottery application required for admission. 37. Page 83 Specialty School Locations Of the 34 schools listed as Proposed Specialty School Locations, which ones are new? None of the schools, listed in the Specialty School Locations table, are new. However, upon approval and finalization of the FY 2016 budget, the two proposed international schools will be added to the list of Special School Locations found on page 83 of the proposed budget document. 38. Page 84 Five additional Reading Specialists will be added to the 84 currently on board. Where will theses specialist be assigned? The assignment for the five additional Reading Specialists is currently undetermined. The team will use MUST (Must Benchmark) and Scholastic Reading Inventory (SRI) data to determine the assignment for these additional FTE. 39. Page 90 Charter School Per Pupil Allocation a) Explain the formula and how it may differ from the one used per pupil not enrolled in charter schools. The current charter school formula is derived by subtracting restricted funding, current charter school funding, special education funding (district provides to charter schools), lease purchase funding (district provides textbooks to charter schools), and transportation funding (district does not provide to charter schools) from the total operating budget, divided by the estimated total number of students, less an administrative fee of two percent. The traditional schools per pupil formula is derived in a similar fashion to the charter school formula, except that the traditional formula subtracts the costs of outgoing transfers, Head Start, Prekindergarten, and Montessori, whereas the charter school formula does not. b) Why is there a difference in the per pupil amounts the Charter School Per Pupil Allocation is $9,546, the non-charter School per pupil allocation is $14,274 (K-12) and $13,879 (Prekindergarten). The variance between the charter school and traditional per pupil allocation is the value of the inclusions / exclusions in each formula. c) Are there expenses for Charter schools in other categories? Yes, charter school expenses are reflected/included in other state categories FAB Meeting Page 20

21 PRINCE GEORGE'S COUNTY PUBLIC SCHOOLS Attachment - Question 9 Nine-Year Debt History Projected as of Projected FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Debt Payments: Principal $ 23,527,249 $ 23,363,942 $ 34,744,537 $ 33,914,334 $ 28,644,796 $ 25,079,134 $ 34,292,338 $ 66,725,800 $ 16,503,261 $ 23,813,266 $ 32,688,290 Interest $ 1,537,035 $ 2,334,472 $ 2,413,879 $ 3,798,966 $ 3,313,391 $ 2,937,945 $ 5,507,742 $ 2,712,542 $ 2,650,037 $ 2,780,615 $ 2,754,051 Revenue Outstanding Debt: Debt Threshold Total $ 25,064,284 $ 25,698,414 $ 37,158,416 $ 37,713,300 $ 31,958,187 $ 28,017,079 $ 39,800,080 $ 69,438,342 $ 19,153,298 $ 26,593,881 $ 35,442,341 Non-Energy $ 25,064,284 $ 25,698,414 $ 33,796,771 $ 33,129,035 $ 27,457,125 $ 23,602,540 $ 24,192,368 $ 60,701,815 $ 10,146,771 $ 17,427,354 $ 26,135,814 Energy Performance $ - $ - $ 3,361,645 $ 4,584,265 $ 4,501,062 $ 4,414,539 $ 15,607,712 $ 8,736,527 $ 9,006,527 $ 9,166,527 $ 9,306,527 Unrestricted $ 1,274,877,413 $ 1,384,496,418 $ 1,549,360,427 $ 1,570,414,938 $ 1,540,304,501 $ 1,436,553,815 $ 1,493,048,757 $ 1,541,870,919 $ 1,565,739,301 $ 1,672,296,486 $ 1,716,249,495 Lease/Purchase Agreement: $ 80,772,197 $ 136,967,334 $ 102,222,798 $ 100,287,704 $ 95,554,506 $ 171,254,262 $ 136,961,924 $ 85,441,421 $ 114,735,070 $ 126,486,156 $ 136,713,483 Non-Energy $ 80,772,197 $ 102,344,062 $ 70,907,447 $ 71,057,653 $ 68,492,959 $ 76,214,138 $ 49,799,147 $ 2,744,468 $ 36,937,522 $ 55,663,755 $ 73,216,763 Energy Performance $ - $ 34,623,272 $ 31,315,351 $ 29,230,051 $ 27,061,547 $ 95,040,124 $ 87,162,777 $ 82,696,953 $ 77,797,548 $ 70,822,401 $ 63,496,720 Debt Service Capacity (Total) 2% 2% 2% 2% 2% 2% 3% 5% 1% 2% 2% Debt Service Capacity (Non-Energy 2% 2% 2% 2% 2% 2% 2% 4% 1% 1% 2% Debt Principal Capacity (Total) 6% 10% 7% 6% 6% 12% 9% 6% 7% 8% 8% Debt Principal Capacity (Non-Energ 6% 7% 5% 5% 4% 5% 3% 0% 2% 3% 4% (1) Energy Performance - self supporting through utility savings. (2) All data provided in this chart are shown as of June 30th for both actual and projected.

22 Restricted Fund Allocations by School School Grant Amount Accokeek Academy $ 2,000 Adelphi ES $ 313,393 Andrew Jackson Academy $ 351,865 Apple Grove ES $ 700 Arrowhead ES $ 185,145 Avalon ES $ 35,350 Baden ES $ 1,150 Barnaby Manor ElS $ 466,570 Beacon Heights ES $ 188,078 Beltsville Academy $ 353 Benjamin Stoddert MS $ 481,078 Berwyn Heights ES $ 165,757 Bladensburg ES $ 365,486 Bladensburg HS $ 202,964 Bowie HS $ 1,016,717 Bradbury Heights ES $ 460,389 Brandywine ES $ 129,058 Buck Lodge MS $ 402,260 C Elizabeth Rieg $ 944,850 Calverton ES $ 363,061 Capitol Heights ES $ 3,182 Carmody Hills ES $ 190,386 Carole Highlands ES $ 310,355 Carrollton ES $ 437,491 Catherine T Reed ES $ 432,691 Central HS $ 224,236 Cesar Chavez ES $ 233,968 Chapel Forge ECC $ 947,439 Charles Carroll MS $ 855,985 Charles Herbert Flowers HS $ 326,645 Cherokee Lane ES $ 200,055 Chillum ES $ 244,265 Columbia Park ES $ 182,274 Concord ES $ 175,406 Cool Spring ES $ 789,228 Cooper Lane ES $ 228,147 Cora L Rice ES $ 297,256 Croom HS $ 67,875 Crossland HS $ 111,838 District Heights ES $ 173,203 Dodge Park ES $ 217,967 Doswell E Brooks ES $ 146,500 Dr. Henry A. Wise Jr. HS $ 183,421 Drew-Freeman MS $ 733,660 Duval HS $ 332,399 School Attachment Question 21 Grant Amount Dwight D Eisenhower MS $ 101,723 Edward M. Felegy ES $ 238,832 Eleanor Roosevelt HS $ 241,895 Ernest Everett Just MS $ 2,423 Fairmont Heights HS $ 164,779 Flintstone ES $ 297,356 Forest Heights ES $ 102,107 Forestville HS $ 921,417 Fort Foote ES $ 149,289 Fort Washington Forest ES $ 1,257 Frances R Fuchs ECC $ 3,190,674 Francis Scott Key ES $ 410,989 Frederick Douglass HS $ 127,370 Friendly HS $ 1,117,835 G James Gholson MS $ 348,210 Gaywood ES $ 365,503 Gladys Noon Spellman ES $ 339,865 Glassmanor ES $ 150,758 Glenridge ES $ 710,409 Green Valley Alternative MS $ 49,581 Green Valley ES $ 193 Greenbelt MS $ 74,639 Gwynn Park HS $ 234,518 Gwynn Park MS $ 78,699 H Winship Wheatley ECC $ 3,372,570 HB Owens Science Ctr $ 207,708 High Bridge ES $ 1,950 High Point HS $ 322,586 Highland Park ES $ 347,985 Hillcrest Heights ES $ 224,401 Hollywood ES $ 4 Hyattsville ES $ 253,816 Hyattsville MS $ 356,024 Imagine Andrews $ 45,136 Imagine Foundations At $ 500 Moringside Indian Queen ES $ 8,780 Isaac Gourdine MS $ 4,516 J Frank Dent ES $ 197,849 James E Duckworth $ 373,565 James H Harrison ES $ 148,896 James Madison MS $ 77,686 James Mc Henry ES $ 459,038 James Ryder Randall ES $ 582,759 Jessie B Mason $ 130,055 Page1