Budget Workshop: Status of Budget Preparation

Transcription

1 Budget Workshop: Status of Budget Preparation June 14, 2010

2 Our budget must reflect our values Alberto Carvalho

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4 # of Schools # of Students 33 5k 1920 YEAR

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6 # of Schools # of Students 33 5k k 1945 YEAR

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8 # of Schools # of Students k 33 5k k YEAR

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10 # of Schools # of Students k k k 33 5k k YEAR 2002

11 # of Students 358, ,425 14% # of Schools % # of Teachers 18,834 20,728 9% Art & Music Teachers 6% World Lang Teachers 2% Gifted Teachers 15%

12 FEFP Breakout by Source State Local 66% 64% 62% 61% 57% 53% 53% 61% 34% 36% 38% 39% 43% 47% 47% 39%

13 Final General Fund Budget $3.1B $4M in contingency Four year projected revenue drop of a half-billion dollars General Fund Budget $2.6B

14 Our budget must reflect our values Guiding Principles: 1. Improve student achievement 2. Protect the classroom 3. Protect the workforce 4. Maintain the fiscal viability of the District

15 # of Teacher RIF 0 1 Includes ARRA Stabilization Central Administration 32% $3.1B Total Number of Positions 11% $2.8B Operating Budget Contingency Funds 1800% Average Teacher Salary 2% Operating Budget

16 Drastic Teacher Layoffs Predicted L.A. Unified Sends Layoff Notices to 5,200 Teachers School Districts Ax Teachers, Blame State for Financial Meltdown Broward Schools to Lay Off 568 Teachers

17 Budget: The Bottom Line Student Achievement Above All No teacher RIF Protects most vulnerable members of the workforce No cut to art & music Further reduces class sizes Improves credit rating No tax increase

18 FTE Trend 370, , , , , , , , , ,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 M-DCPS TOTAL CHARTER ONLY

19 CLAIM: Education Held Harmless REALITY: FTE Increase $28M Collection Rate $12M FRS Increase $15M

20 Revenue Summary Adopted Tentative Variance Federal Sources (traditional) $ 17.3 $ 15.1 $ (2.2) State Sources $ $ 1,169.5 $ Local Sources $ 1,424.2 $ 1,288.4 $ (135.8) Other $ $ $ (30.4) TOTAL REVENUE $ 2,696.2 $ 2,710.3 $ 13.9 American Recovery & Reinvestment Act State Stabilization Funds IDEA & Title I (flexible portion) $ $ 47.0 $ $ 24.4 $ (4.0) $ (22.6) FUNDS AVAILABLE TO BALANCE $ 2,827.9 $ 2,836.3 $ (12.7) Subtracting: 1) FTE Increase and 2) Collection Rate Change $ (52.7)

21 Millage Summary Change STATE MANDATED MILLAGE Required Local Effort (0.009) LOCALLY LEVIED MILLAGE Discretionary Operating Capital Outlay (0.150) Total Locally Levied Millage VOTED MILLAGE Debt Service Millage TOTAL MILLAGE M-DCPS is not advocating supplemental tax increase that the majority of districts state-wide levied in

22 Major Cost Increases Item Detail Increase Textbooks Salaries Charters Class Size Reserves Due to the six-year textbook adoption cycle, new Math textbooks must be purchased. The increase in cost reflects a 70% reduction in initial price. Salary adjustment accounts for annualizing the cost of mid-year agreements with unions. Teacher increases accounts for over 80% of the total. Increase in projected Charter School FTE leads to increase payments of $28M; total cost increase though should reflect net of reduced costs. The increase in the Class Size categorical is $14M; all revenue received will be spent on full compliance..15 Capital millage shift of $29M reserved for protection of employees and programs. Tax Roll Yield reserve lowered to collection rate change of 96% only. Assume 95% collections. $ 11M $ 36M $ 10M $ 14M $ 21M

23 Major Saving Initiatives Non-School Budgets Item Detail Decrease Millage Transfer Central Office Transferred.15 mills from Capital to GF, now up to.20 of allowable.25 transfer. Put entire amount in Reserves; a move strongly endorsed by credit rating agencies All non-school locations were tasked with streamlining and cutting all non-essential functions. The average cut was 10% and will result in a RIF that will occur in July Bell Schedule By altering the bell schedule in a minimal way, route planning and hiring is more efficient. No RIF of drivers Maintenance Projects Brought $26M of contracted maintenance projects inhouse $ (29M) $ (8M) $ (4M) $ (26M)

24 Major Saving Initiatives School Budgets Item Detail Decrease Senior High Programs Gifted Historical and out-dated programs phased out $ (7M) Changed the ratios for gifted teacher allocations from to class size ratios, still keeping the formulas more generous than Basic Supplements Changed the ratio extra-period supplements are converted to teachers from 5 to 8 $ (7M) $ (8M) Magnets Aligned allocations to match district-wide demand $ (2M) ESE ESOL Bring ESE allocations closer in line with Statesupported levels; still exceed that level by over $150M Eliminates supplemental allocations above and beyond standard allocation by making programmatic shift to self-contained classes at elementary level $ (18M) $ (6M)

25 Appropriation Summary Function Budget (in millions) % of Budget Instruction: $ 1, % School Admin & Students Svcs: $ % Curriculum Support: $ % Transportation: $ % Custodial & Maintenance Svcs: $ % Business Services: $ % Central Administration: $ % Reserves & Transfers: $ % GRAND TOTAL $ 2, % % Change from % -1% -4% -10% -4% -5% 3% 2% 41% *Does not include ARRA Stimulus funds. ARRA Funds will be used on same expenses as Declining revenue in these funds is offset by sun-setting expenditures.

26 $887M Positions Abated to Capital Fund 43% Facilities Maintenance Positions % $521M Capital Construction Expenditures Growth in In-Sourced Project Work $26M Capital Construction Appropriations

27 Current Unmet Needs & Deferred Maintenance $2.1 Billion Work to be Performed $521M

28 Class Size Reduction: The Facts Compliance: Constitution State Responsibility Statutes District Responsibility Penalties: None Punitive November Referendum Scenario #1: Meet class size at school average with class level caps Scenario #2: Full implementation

29 Class Size Reduction: The History Capital Outlay General Fund M-DCPS portion of allocated funds: 5% M-DCPS portion of state s students:13% Avg. Class Size Cost = $1.5 Billion Net Class Size Revenue = $1.0 Billion Underfunded by $500 Million 1 Data from FLDOE Class Size Averages, Grades Shortfall $354M $82M $40M Amount FLDOE & State Board say is necessary to meet CSR statewide Amount allocated for CSR compliance by Florida Legislature Amount M-DCPS does not receive due to State under-allocation

30 Class Size Reduction: The Options Option #1: Option #2: Full compliance thru cuts Full compliance thru issuing of optional.25 mills Pros Compliance Current State estimate for cost of full compliance for M-DCPS is $40-50M Compliance Cons Large RIF Cuts in $ to schools Cuts to electives: Arts Music PE Bilingual Magnets Athletics Put further burden on struggling tax payers Stress community relations

31 Class Size Reduction: The Options Pros Cons Option #3: Comply at school average plus caps at class level Elective courses remain No increase in taxes Credit rating protected Workforce protected Fully expend CSR $ on compliance Expand virtual instruction to try and fully comply Referendum may fail District would face mid-year penalty Note: by indicating penalty $ will be returned with a plan for compliance, State is implying this is the path it expects districts to take

32 Budget: The Bottom Line Student Achievement Above All No teacher RIF Protects most vulnerable members of the workforce No cut to art & music Further reduces class sizes Improves credit rating No tax increase

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