Fiscal Year 2016 Superintendent s Proposed Operating Budget Board of Education of Charles County Public Schools January 13, 2015

Transcription

1 Fiscal Year 2016 Superintendent s Proposed Operating Budget Board of Education of Charles County Public Schools January 13,

2 Agenda Objectives Revenue Increases Requested Cost Increases Financial Overview Future Financial Considerations 2

3 Objectives Submit a budget that reflects the basic needs of the system and avoids program or personnel reductions. Keep the focus on student achievement and maintain funding for the classroom. Address State mandated testing requirements. Maintain core programs and progress. Provide Phase II base funding for St. Charles High School. Request base funding for salary increases so employees are placed on proper longevity STEPS/LEVELS. Utilize fund balance to address deferred maintenance. Maintain employment and avoid furloughs or layoffs. 3

4 REVENUE INCREASES 4

5 Request State Funding $1.6 Million Increase Total increase in State revenue is based on preliminary estimates of $1.6 million, or 1.0 percent. State revenues are based on changes in enrollment, county wealth, and free-and-reduced-meals program eligibility relative to all other counties. Full-time equivalent enrollments decreased from the previous fiscal year by students, or 0.4 percent. State Compensatory Aid is based on eligible Free and Reduced-Price Meal Students (FARMS). Enrollments increased 281 students or 3.1 percent from last fiscal year. The total FARMS rate is 35.0 percent. Geographic Cost of Education Index (GCEI) funding base is $2.2 million. $15.0 $10.0 $5.0 $.0 State Incremental Funding $ in Millions State funding will change based on the legislative budget process, which ends mid-april. ($5.0) Note: FY 2012 reflects federal ARRA and Ed jobs funding. 5

6 Request County Funding $22.7 Million Increase Total County funding request is an increase of $22.7 million or 14.0 percent. $24.0 County Incremental Funding $ in Millions State Law (Article 5-202) requires the minimum Maintenance of Effort (MOE) funding level to be no less than the prior year s per pupil funding amount, adjusted by the change in enrollments. The County MOE funding requirement is $684,234 less than FY2015. $19.0 $14.0 $9.0 County funding also includes required allocations to support the teachers pension in accordance with the Budget Reconciliation and Financing Act of 2012 (Senate Bill 1301/House Bill 1801). $4.0 ($1.0) Note: 2013 includes state retirement 2014 include $2.0M one-time funding. 6

7 Other Revenues Fund Balance Transfer $2.0 Million Total use of fund balance is $5.2 million; $3.2 million for general fund operations and $2.0 million for deferred maintenance projects. The fund balance obligation will be reduced, to the extent possible, from savings related to employee turnover and retirements. 7

8 Other Revenues Food Service Meal Price Increase The Healthy, Hunger-Free Kids Act of 2010 requires the school system to set meal prices equal to (or above) the Federal reimbursement rate for Free and Reduced Meals. The law limits the amount of the increase to $0.10 in any one-year period. This required increase would raise lunch prices for the school year to $2.55 for elementary students and $2.80 for secondary students. 8

9 REQUESTED COST INCREASES 9

10 Health Care Costs Insurance $6.0 Million The budget includes a cost increase of $6.0 million, or 21.0 percent over the FY2015 budget. Funding would provide for FY 2015 base budget shortfalls in addition to anticipated industry trend cost increases for FY An ongoing insurance committee is reviewing health care costs. The potential impact of the Affordable Care Act is under review. Changes in benefits are subject to union negotiations and directly impact overall compensation. $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $.0 General Fund Actual Expenditures ($ in Millions) 10

11 St. Charles High School Recurring Cost: Phase Two - $1.6 Million Recurring operating funds are requested for the new high school based on additional enrollments and maintaining class size: Expected FY2016 enrollment of 1,370 students 24 new staff positions related to 392 additional students Total amount requested is $1.6 million Description FTE Amount $* Teachers 16 1,169,563 Instructional Assistants Building Service Personnel, Pool Manager Vice Principal and Guidance Counselor Total Compensation Supplies and Materials 3 93, , , ,598,477 30,723 Total Request $1,629,200 *Note: Includes employee benefits 11

12 Teachers Pension $955,800 The budget increase required by the Budget Reconciliation and Financing Act of 2012 (BRFA [Senate Bill 1301/House Bill 1801]) to support the teachers pension is $955,800 more than last fiscal year. The following chart shows the expected funding streams from county government for fiscal years 2013 through The funding streams are in addition to the required MOE amount calculated under the Education Article In FY2016, this cost will be offset by a county revenue increase of $948,300. The net impact on the operating budget is $7,500. $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $.0 Pension Funding Requirements $ in Millions

13 Request Bus Contracts - $780,000 The school system s operational bus fleet is 340 (331 contractual and 9 owned by CCPS). This request will provide funds to replace 17 buses beyond the 15-year limitation, and four additional special education buses to accommodate 100 new special education students. State transportation funding represents 41 percent of transportation expenditures. $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $.0 Student Transportation Actual Contractual Expenditures In FY 2011, Charles County ranked 5 th in the state out of 24 counties in cost per pupil attending ($929.46). 13

14 Project Lead The Way Technology Education - $324,200 Description Amount $ Funds would support STEM programs including Gateway to Technology, Pathway to Engineering and Biomedical Sciences. Cost includes: the cost of required teacher training (registration fees, stipends, travel and lodging), materials of instruction (instructional supplies and equipment) Technology. Materials of Instruction (consumable materials for all programs) Student and Teacher Laptops (55 total laptops) Core Teacher Training (37 teachers) 186,600 59,600 78,000 Total Request $324,200 14

15 Other Mandatory Costs Maryland Association of Board of Education Insurance Premium - $260,500 This budget request reflects an insurance premium increase for workers compensation (10.0 percent) and an increase for property / liability insurance (5.0 percent). Nurses Contract - $138,000 Contract increases of 4.4 percent, for benefits. 15

16 CONTRACT ASSUMPTIONS Reserve for Negotiations $13.2 Million This request is to set aside funding for FY 2016 contract negotiations including STEP/LEVEL increases and salary scale compression with the Education Association of Charles County (EACC) and the American Federation of State, County and Municipal Employees (AFSCME). In addition to FY 2016, the system needs to provide two additional STEP/LEVEL increases for FY 2011 and FY The chart includes data based on the current scales and salary grades prior to negotiations, which can change how salaries are distributed. There is no COLA provision included in this proposal. Description Estimate $ Comment EACC LEVEL 3,135,000 One Level = 3.1 % avg. Average LEVEL 1, percent affected EACC 1% COLA 1,662,000 AFSCME STEP 653,000 One STEP = 1.6% avg. Average STEP percent affected AFSCME 1% COLA 486,000 Reserve for Grade Increases 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 612,000 Trends in Cost-of-Living Adjustment (EACC) 16

17 Other Cost Increases Positive Alternative to School Suspension (PASS) - $637,000 The PASS program will be designed to help each high school to meet the criteria outlined by Maryland State Department of Education (MSDE). The request provides funds for one teacher and one instructional assistant at each high school. Computer Analyst Positions (9 positions) - $359,500 Provide support for PARCC testing and instruction at the elementary and middle school levels. Maintenance Projects - $2,000,000 Provide funds for asphalt, infrastructure and roof repairs. 17

18 FINANCIAL OVERVIEW 18

19 Budget Trends in Full-time Equivalent (FTE) Student Enrollments For FY2016, preliminary estimates for student enrollment are expected to reach 25,501, an increase of 0.4 percent (89 students more than the previous year). Fiscal Year FTE Change Percent , % , % , % , % , % , % , % , % ,870 (85) -0.3% ,717 (153) -0.6% ,524 (193) -0.8% ,412 (112) -0.4% 2016 Est. 25, % (100.0) (200.0) (300.0) Student Enrollment Change in Full-Time Equivalent (FTE) 19

20 FY2015 Budget Operating Cost Per Pupil = $12,774 (An increase of $ from the previous fiscal year) Instruction (Classroom) Student Transportation $0.08 Maintenance, Operations & Capital Outlay $0.67 Student & Community Services School Administration $0.12 Central Administration $0.01 $0.09 $

21 FY2015 Budget By Object $327 Million Other (Utilities, Transfers etc.) 4% Contracted Services 12% Salaries & Wages 61% Compensation 81% Supplies & Materials, Equipment 3% Employee Benefits 20% 21

22 Revenue Schedule Description Amount $ FY2015 Revenue Budget 327,336,800 Incremental Changes: Local Revenues Teachers Pension (SB1301) 948,348 Maintenance of Effort (MOE, student decline) (684,234) Additional Base Funding Request 22,435,585 Total Local Revenues (14.0 percent increase) 22,699,700 State Revenues (Preliminary 1.0 percent increase) 1,584,500 Fund Balance Transfer (Total of $5.2 million) 2,000,000 Total Incremental Changes 26,284,200 FY2016 Revenue Budget 353,621,000 Percent Increase 8.0 percent 22

23 Expenditure Schedule Description Amount $ FY2015 Expenditure Budget 327,336,800 Requested Cost Changes: Health Insurance 6,000,000 St. Charles High School Recurring Cost (Phase two of two) 1,629,200 Teachers Pension (SB1301) 955,800 Bus Contracts (replace 17 buses, add 4 special education routes) 780,000 Project Lead The Way Technology Education 324,200 MABE Insurance Premium 260,500 Nurses Contract (Estimate) 138,000 Reserve Negotiations (Estimate three STEP/LEVEL cost) 13,200,000 PASS Program and Computer Analyst Positions 996,500 Maintenance Projects 2,000,000 Total Requested Cost Changes 26,284,200 FY2016 Expenditure Budget 353,621,000 Percent Increase 8.0 percent 23

24 Future Financial and Program Considerations Funding OPEB (Other Post-Employment Benefits) Requirement ($35.3 million ARC) Funding Partnership for Assessment of Readiness for College and Careers (PARCC) testing requirements Financial Impact of the Affordable Care Act Requirements and managing health care costs. Unmet Requirements (Supplemental Budget Request, deferred maintenance projects, GWWO study, technology) Funding STEP/LEVEL increases and cost-of-living adjustments. Address starting teacher salaries. 24

25 Next Steps BOE work-session January 26, 2015 BOE final approval February 10, 2015 BOE budget submission to the county February 27, 2015 Negotiations with unions Mid April 2015 End of legislative session Mid April 2015 County government public hearing April 22, 2015 Board adopts final budget based on final cost estimates, funding levels and contract ratifications June 9,