Budget FY 2018 Budget Adoption. Board of Education August 28, 2017

Transcription

1 Budget FY 2018 Budget Adoption Board of Education August 28, 2017

2 Budget Year : A Year of Budget Uncertainty Year 2 of the Block Grant most funding frozen Board adopted a $662M Budget $22.7 million in cuts were necessary to balance budget State in deep financial trouble $280 million state budget shortfall Concern that the Governor would make allotments to reduce funding to schools Legislature convened but struggled with a school finance formula, a budget, and a tax plan Mid year cuts were discussed for several months State missed two KPERS payments

3 Budget Year : A Year of Budget Uncertainty Supreme Court rules Block Grant unconstitutional Stage is set for possible school shut down With no funding formula or tax plan, plans were made to use any year end cash to cover fixed cost increases Legislature acted late in the session Passed a school finance formula, SB19, on May 30 Overrode the Governor s veto to pass a tax plan to fund the formula and fill the state s overall budget deficit Question of the constitutionality of SB19 remains Supreme Court did allow SB19 into law, ending the immediate threat of school shutdown No decision yet as to SB19 s adequacy and equity

4 FY18 Budget Highlights New revenues set the maximum budget authority for 2018 The overall mill levy is flat The overall net budget is higher compared to last year due primarily to increase in state aid The new formula returns to weightings, so some new funds are targeted to certain populations (At Risk, Pre-K At Risk, Special Ed) The District is budgeting year end cash in FY18 expenditures

5 FY18 Proposed Budget Net Budget (after transfers): $682.6 Million in FY18 Comparisons to the last two budget years are difficult due to the Block Grant, funds flowing through the General Fund, and Transfers.

6 State Aid Comparison General State Aid (includes weightings) Special Ed State Aid Local Option State Aid FY17 Budget FY18 Budget Increase (Decrease) $282,193,236 $306,302,556 $24,109,320 $ 44,623,547 $ 44,744,673 $ 121,126 $ 60,417,935 $ 58,713,982 $ (1,703,953) KPERS State Aid $ 39,346,728* $ 43,854,601 $ 4,507,873 Capital Outlay State Aid Bond & Interest, CTE, PD $ 9,434,110 $ 9,651,511 $ 217,401 $ 17,626,468 $ 18,000,322 $ 373,854 Total State Aid $453,642,024 $481,267,645 $27,625,621 *The state only made partial KPERS payments in FY 17

7 FY18 New Funds Available General and Weighted Funds Local Option Taxes & Cash C/O Local Option State Aid FY17 FY18 Increase (Decrease) $282,193,236 $306,302,556 $24,109,320 $ 50,951,530 $ 54,823,335 $ 3,871,805 $ 60,417,935 $ 58,713,982 $ (1,703,953) Contingency Transfer $ 2,000,000 $ 2,000,000 Total Funds Available* Less: Fixed Cost Increases New Funds Available after Fixed Costs $393,562,701 $421,839,873 $28,277,172 ($8,200,000) $20,077,172 * Excluding KPERS, Capital Outlay, Bond & Interest, and SPED

8 FY18 Budget Priorities: Need is great/dollars are limited Budget Year Wages Positions Reduced Other Reductions Use of Contingency Reserve Expenses moved to Capital Outlay Cost of Cuts/Use of other Funds Travel, transportation, Frozen (62) computers, intervention ($300,000) ($16,500,000) Frozen Drivers Ed, Metro Midtown, Temp Custodians, (139) Computers, Transportation ($14,000,000) Frozen Blackbear Bosin, Workforce, Midtown Learning, lost ARRA, Elementary Strings, (234) Computers, Transportation ($19,800,000) Wage increases 71 Closed 3 schools (opened 2) Eliminated 17 positions Wage increases 88 Admin/Operations Mid year LOB state aid cuts, used unused budget to Wage increases cover fixed costs ($1,751,424) ($10,499,900) ($12,300,000) Frozen 10% cuts Non-FTE Spending, (14) Adult Programs ($3,360,357) ($12,400,000) Wage increases 10% cuts Non-FTE Spending, Cut 15 days from calendar, Changes to Health Plan, Eliminated Hazard Routes, (39) Reorg Alternative Programs ($22,700,000) Totals (328) ($5,111,781) ($10,799,900) ($97,700,000)

9 FY18 Budget Priorities Recruitment and Retention through Compensation At risk programs, including those to increase graduation rates Enrich Parents as Teacher program Curriculum and Textbook needs Student Technology Deferred Maintenance needs Pre-K expansion Professional Development Expand Technical Education Strengthen STEM and other academic programs Career and Academic Counselors working with Students towards Individual Plans of Study Continue work with Student Social-Emotional needs

10 FY18 Budget Priorities Funds In Action!! Recruitment and Retention through Compensation Addition of 4 ELL teachers and 4 ELL paras Addition of teaching staff, particularly at Southeast Salary increases will be addressed through the negotiations process At risk programs, including those to increase graduation rates Expansion of Learning Centers six comprehensive high schools will have all day programs to help kids graduate Expansion of after school and summer programs targeted to At Risk kids Curriculum and Textbook needs Used year end cash to provide support for reading adoption Student Technology Chromebook initiative Restored funding for District s technology plan Pre-K Expansion ipad/chromebook technology plan to enhance Pre-K curriculum

11 FY18 Budget Priorities Funds In Action!! Professional Development $1 million in year end cash to support PD and training programs Reinstatement of limited training for temporary employees $500,000 in new federal funds targeted for PD Expand Technical Education Culinary arts improvements at North Robotic kits for middle school pre-engineering Expanded technology for high school engineering Strengthen STEM and other academic programs Expand Summer STEM academies to three sites Continue work with Student Social-Emotional Needs Development of Elementary Trauma Team

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13 FY18 Proposed Mill Levies Based on Estimates Mill Levy Projections Actual Estimate General Fund Supplemental General (LOB) * Capital Outlay Bond and Interest Special Liability Total Levy Increase/(Decrease) *LOB state aid is based on last year s LOB.

14 FY18 LOB Estimated Mill Levy In the new formula, state aid on LOB is based on last year s LOB, which was $111 million This year s LOB is $115 million. With less state aid, the District would need to raise property taxes to make up the difference Under this proposed budget, to keep mill levy flat in light of a mid-year, retroactive income tax increase, $2 million in Contingency Reserve is being used to make up the loss in state aid

15 USD 259 Total Mill Levy Comparison Special Liability (.125 mills 17/18) Special Assessment (.409 mills 15/16) Bond & Interest Suppl. General (LOB) Capital Outlay General Fund Est.

16 FY18 Public Notice of Vote USD 259 PUBLIC NOTICE OF VOTE PROPERTY TAX RATES 2-YEAR PROPERTY TAX REVIEW (Excluding General Fund, Bond and Interest, No-Fund Warrants, and Temporary Note) Once General Fund and Bond and Interest Fund tax rates are included, the overall impact is a 0% rate increase for the taxpayer. The Supplemental General tax rate increased due to a decrease in Supplemental State Aid. That increase was offset by a decrease to the Bond and Interest rate Fund Amount Levied Rate Amount Levied Rate Percent Increase 1. Supplemental General 45,061, ,034, % 2. Capital Outlay 21,401, ,935, % 3. Special Liability Expense , % 4. TOTAL 66,462, ,311, % NOTE: Publication in the local newspaper is required if Line 4 is over 1.4 percent increase over the prior year. Required by KSA b. BOARD OF EDUCATION VOTE Approved: Disapproved: Clerk of the Board Date

17 FY18 Budget Recommendation Administration recommends the Board adopt the Budget as proposed. Max Budget Authority: Estimated Mill Levy: $682.6 Million Mills