Budget. The Road to Sustainability. Change Technology Wellness. July 1, 2010 to June 30, 2011

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1 Budget July 1, 2010 to June 30, 2011 Change Technology Wellness The Road to Sustainability

2 North East Independent School District San Antonio, Texas Official Budget Effective July 1, 2010 June 30, 2011 Issued by: Business Services and Operations Division Brian Gottardy, Ed.D, Associate Superintendent for Business Services and Operations James C. Terry, Ph.D., CPA, Executive Director of Finance and Accounting Services Brian Moy, Senior Director of Budgets and Financial Analysis Mary Alex, Director of Grant Administration and Financial Control Lori Ganci, Comptroller for Instruction and Technology Services Susan Lackorn, Comptroller for Business Services and Operations Deidra Parchman, Comptroller for Campus Support and Human Resources Stella Gonzales, Budget Analyst

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4 Reader s Guide North East Independent School District s Budget Book This guide is intended to assist readers in finding information in the North East Independent School District s annual Budget Book. Information is grouped into the following sections. Introductory Section - This section includes the Superintendent s budget message, District profile, District achievements, and the Executive Summary. The Executive Summary describes each fund in the Official Budget and gives financial highlights of each adopted fund s budget. Organizational Section - This section includes the mission and goals of Texas Public Education, the District and each division; District Improvement Plan; financial structure and accounting information; financial and budget policies; procedures; and the budget preparation calendar. Financial Overview - This section includes the adopted budgets for all required funds, a summary schedule combining all District funds, and tax information. General Fund - This section includes General Fund information and General Fund divisional summaries. Debt Service Fund - This section includes financial, tax, and other pertinent information concerning the Debt Service Fund. School Nutrition Services Fund - This section includes financial and other pertinent information concerning the School Nutrition Services Fund. Other Funds - This section includes financial and other pertinent information concerning other funds such as Special Revenue Funds, Campus Activity Funds, Enterprise Funds and Internal Service Funds. Capital Funds This section includes financial and other pertinent information regarding Capital Projects, improvements, bond plans, and energy management. Informational Section - This section includes financial forecast information, human resource information, investment information, and demographics. Glossary - This section includes definitions of terms used throughout the Budget Book. Supplement Under separate cover, this section contains detailed budgets by campus/department, selected performance measures for each division, and selected benchmarking reports.

5 Table of Contents Introductory Section Page Principal Officials... 1 Budget Message...2 Executive Summary... 4 Community Profile... 6 San Antonio & Surrounding Area Map... 7 District Map... 8 District Rating School Accountability Ratings Academic Performance Results Financial Accountability Organizational Section State Mission and Goals District Mission and Goals Division and Department Missions District Instructional Improvement Plan Organizational Charts Financial Structure Basis of Budgeting Classification of Revenues and Expenditures Financial Policies Budget Development and Management Budget Process Budget Calendar Notice of Public Meeting to Discuss Budget Financial Overview Adopted Budget Budget Summaries Impact of Budget on Taxpayers General Fund General Fund General Information... 91

6 Revenue and Expenditure Summary by Major Object & Function Expenditure Summary by Object within Function Division of Business Services and Operations Budget Division of Campus Support and Human Resources Budget Division of Instruction and Technology Budget Debt Service Fund Debt Service Fund General Information Five Year Debt Service Revenues and Expenditures Debt Service Requirements to Maturity by Issue Debt Comparison with Comparable Districts Debt Information for Districts with Highest Total Debt Service Computation of Debt Margin School Nutrition Services Fund School Nutrition Services Fund General Information Fund Balance Analysis School Nutrition Fund Revenues and Expenditures Other Funds Special Revenue Funds Campus Activity Funds Internal Service Funds Enterprise Funds Capital Funds Capital Budget General Information Expenditures by Object and Funding Capital Project Expenditures Projection Capital Projects Impact Summary Bond Program Planning Bond Program Bond Funded Capital Improvement Projects Expenditures Elementary School Portable Building Classrooms Management Facility Assessment Projects Individual Project Summaries

7 Energy Management School Building Information Utility Costs by Campus Informational Section Long Range Financial Forecast State Foundation Revenue Estimate Financial Projection: School Nutrition Services Fund Financial Projection: Debt Service Fund Human Resources Information Schedule of Salary Pay Scales General Fund Schedules of Compensation Expenditures Investment Summary Traditional Calendar Property Tax Rates, Levies and Collection Assessed Value of Taxable Property Local Demographics Glossary Glossary Note: Detailed budgets by campus/department, performance measures, and benchmarking information can be found under separate cover in the Budget Book Supplement.

8 Principal Officials North East Independent School District San Antonio, Texas Board of Trustees: Beth Plummer, President Susan Galindo, Vice President Sandy Hughey, Secretary Letti Bresnahan, Member Randy Bristow, Member Brigitte Perkins, Member Edd White, Member Executive Staff: Dr. Richard Middleton, Superintendent of Schools Dr. Brian Gottardy, Associate Superintendent for Business Services and Operations Dr. Mark Scheffler, Associate Superintendent for Campus Support and Human Resources Dr. Alicia Thomas, Associate Superintendent for Instruction and Technology Services North East ISD Budget

9 October 2010 Dear Friends, Every year as I write this opening letter for our Budget Book, I look back at our previous school year and envision what lies ahead in the current school year. I can confidently say that was a successful year in many ways and that the actions we took then, eased the way for us in True to our past, North East continues to grow. This year, our District grew to almost 67,000 students. We remain the second largest school district in Bexar County and the eighth largest in Texas. Our rapid residential growth, especially in the northern and eastern areas of our district, led voters in 2007 to approve the construction of several new elementary schools, two of which opened this August. Combined, Tuscany Heights and Cibolo Green elementary schools now house more than 1,700 students, opening up enrollment at previously capped schools. While both of these new schools offered us opportunities to incorporate green features, Cibolo Green is the District s first truly green school. This effort was so successful that our new Agriscience Magnet Program at Madison High School is also being developed as an energy efficient facility. Because of our District s growth and our commitment to renovate aging campus facilities we are considering the possibility of a bond election in the next year or two. Constituents can rest assured that we will do our best to implement a green philosophy if voters approve such a bond. Our student enrollment growth is a testament to the instructional efforts of our teachers and campuses and the many departments that support them. As a direct result of their tireless work, the Texas Education Agency (TEA) designated North East as a Recognized district for the third year in a row, making it one of the largest districts to earn this rating. Eighty-seven percent of the district s schools earned the two highest accountability ratings of Exemplary or Recognized an increase over the previous year. And for the first time, NEISD has three Exemplary high schools International School of the Americas, Johnson High School and Reagan High School. North East achieved TEA distinction for its accountability performance, but the District has also been recognized by other entities. H-E-B awarded NEISD with its Excellence in Education Award in the large district category with a $100,000 prize. Newsweek included seven of our high schools in its annual listing of the top 1,600 high schools in the country. And Garner Middle School was one of only 314 schools nationwide and the only school in San Antonio to have been named a No Child Left Behind-Blue Ribbon School by the U.S. Department of Education. There is no question that student academic achievement is a top North East priority. But we have a long tradition of the 360 degree education. This means that we focus on the whole child by offering diverse academic and extracurricular courses and support programs to help students focus on learning. Our District s Health and Wellness initiative is a good example of this effort. At North East, we believe that a healthy student is a student ready and able to learn. Aimed at making wellness a lifestyle, this initiative takes a multi-faceted approach tackling North East ISD Budget

10 childhood obesity and nutrition, mental health, asthma, indoor air quality and fitness. North East and its employees have received many recognitions for this effort. Most recently, North East was named a Faculty School District by the Environmental Protection Agency because of our efforts to improve indoor air quality. NEISD is one of two districts in the state to be named a Faculty School District, and only one of nine across the country. More important than the awards, however, is the impact the program is having on students' health and academic success. Our students and staff have earned many recognitions, and our parents and taxpayers have come to expect a high level of achievement and service from our District. As we plan for the future, our biggest challenge is to sustain these levels of achievement and service during tough economic times and beyond. We are all aware of the financial challenges North East and other Texas school districts are facing due to our target revenue finance system. This is why North East has followed a budget austerity plan since the school year. In the first year of the three-year plan, the District met and even exceeded its $12 million spending reduction goal. We eliminated the high school A/B schedule and reduced staff. The decision to reduce staff was difficult, but without new state aid, the district was forced into this position. Almost all identified employees found other positions within the district due to attrition and retirements. Our Human Resources department did an outstanding job of providing the remaining employees with employment assistance and support. In the school year, we were forced to declare a state of financial exigency. By doing so, it allowed the district to make budget cuts and program changes to help secure our financial future. Financial exigency must be declared every year if needed. Since we have entered into a new school year, we are no longer in this state and have no current plans to declare again in The district is not out of the woods, however. We will continue to work on austerity program goals and make cuts where needed, but we are moving in the right direction. NEISD has not only met its spending reduction target of $12 million, but actually exceeded it. By having taken these proactive steps, we are in a much stronger position now even though school districts face financial uncertainties in the upcoming legislative session. For , we will continue to follow our budget austerity plan to reach our $63 million goal in cumulative savings by In the last few years, we have proven that we can make the difficult decisions when necessary and still achieve success. Despite the challenges we face, our Board and staff are committed to maintaining the NEISD tradition of excellence and our focus on the whole child. Our students, parents, staff and community depend on it. Sincerely, Richard A. Middleton Superintendent of Schools North East ISD Budget

11 Executive Summary The North East Independent School District (NEISD) continues its tradition of student success and instructional excellence. The results of the 2010 Texas Assessment of Knowledge & Skills (TAKS) show NEISD performing above the State average in all grades and subjects. Twenty-five campuses (39%) earned the State s highest rating of Exemplary; an additional 30 campuses (47%) were rated Recognized, the State s second-highest rating. No NEISD schools were rated Academically Unacceptable. The District achieved an overall rating of Recognized, the third largest district in the State to garner a rating that high. On June 21, 2010, the North East ISD Board of Trustees adopted the budgets for the General Fund, School Nutrition Services Fund, and the Debt Service Fund. The General Fund is used to account for all District activities except those required to be accounted for in another fund. It encompasses the majority of the activities associated with the normal operation of the District. The District s food service operations are accounted for in the School Nutrition Services Special Revenue Fund. The Debt Service, or Interest and Sinking (I&S), Fund accounts for payments of principal, interest and related fees on the District s general obligation bonds General Fund Highlights Austerity Program The budget reflects the ongoing effort of the District to restrain total expenditures despite enrollment growth, new school openings, unfunded state mandates, and increases in utilities. After deficit spending of nearly $10 million in , North East ISD faced another $10 million deficit in Even before the Texas Legislature began its biennial legislative session in January 2009, it became apparent there would not be sufficient funds available for the State to implement significant positive changes in funding for Texas school districts. With no significant relief foreseen, District leadership decided the time had come to be more proactive in reducing expenditures. NEISD instituted a three-phase Austerity Program, effective January Phase One of the plan was to simply curtail as much discretionary spending as possible for the remainder of the fiscal year. Between January and June 2009 expenditures were reduced almost $2.2 million compared to the previous year. The goal of Phase Two of the Austerity Program was to reduce costs for to a point where the adopted General Fund budget was balanced. The Board of Trustees adopted a General Fund Budget that reflected a deficit of only $131,672, less than 0.03% of the total budget. This was accomplished by tightening student-to-staff ratios, restructuring custodial operations, reducing employee benefits, and reducing campus and department discretionary budgets across-the board. Phase Three of the program looks to implement broad operational changes to increase efficiency and lay the groundwork for long-term financial health. This restructuring effort was the basis for the General Fund budget. Phase Three will continue through the fiscal year, with a goal of cumulative reductions of $63 million in these three years. On October 19, 2009, the North East Board of Trustees declared the District in a state of financial exigency and declared a need for programmatic change. This resolution was required under Texas Education Code to enable the District to implement broad restructuring of teaching staff. The most significant portion of the restructuring plan was to shift NEISD high schools from an A/B block schedule to a 7-period day. The change in schedule allowed for greater efficiency of high school teaching positions despite increased enrollment and allowed the district to focus resources on additional math and science teachers to comply with changes made by the state to the high school curriculum standards. District Growth North East ISD continues to grow. Nearly 1,300 more students are expected to enroll in North East schools for Two new elementary schools will open their doors this year. This third phase of the austerity program is meant to temper the cost of that growth to keep expenditure increases at a minimum despite the growth in students. Under North East ISD Budget

12 current education funding formulas, the new enrollment guarantees additional fund of approximately $9.2 million. Without changes to spending patterns, the District was facing an increase to expenditures of nearly $14 million compared to the final budget for Costs Associated With Growth Description Amount New teachers for enrollment growth $ 4,425,000 State-mandated teacher/librarian raise 2,534,000 Costs for opening 2 new schools 2,609,000 Increased utilities (not incl. new schools) 1,888,000 Costs associated with inflation, mandates, safety & security or infrastructure 2,366,000 Total Growth, Mandates, Inflation $13,822,000 Actions Taken to Temper Growth Description Amount Restructure teacher allocation ($ 7,924,000) Restructure campus administrators & paraprofessionals (2,504,000) Restructure central office operations (826,000) Restructure custodial & transportation (896,000) Net of all other (1,292,000) Total Reductions to Temper Growth ($13,442,000) Fund Balance One measure of a district s financial well-being is the amount of operating reserve, or fund balance, it has on hand at the end of the year, relative to the size of the district. A standard benchmark is a fund balance that is, at a minimum, equivalent to two months operating expenditures. North East ISD s fund balance declined by nearly $18 million over fiscal years and , to $61 million, or only 1.6 months of operating expenditures. By June 30, 2010, fund balance increased to nearly $72 million, or 1.8 months. The adopted budget results in a fund balance of almost $81 million, or 2.1 months operating reserve by June 30, Given the gravity of the State of Texas current financial condition, a reserve of more than 2.1 months is warranted. The State is facing a biennial budget deficit of $18 to $21 billion. Some legislators have suggested the State not fund new enrollment growth, to maintain school district funding at its levels. Over the and fiscal years, this would mean nearly $25 million less operating revenue. North East plans to continue its current austerity program to offset any reduction in funding. Additional information regarding the General Fund budget is included in the General Fund section of this book on pages Debt Service Fund Highlights North East ISD did not issue any new debt in For , the District plans to issue $37.5 million in Qualified School Construction Bonds (QSCBs). The QSCBs are tax-exempt for the bond holders and interest free for the District. Bond payment is not expected until 2028, and there are no covenants for interest and sinking requirements. The District will manage a voluntary interest and sinking program that allows for flexibility and substantial return on the sinking fund investments. The QSCBs have no effect to the Debt Service fund budget for Despite lower property values and lower property tax collection rates, the District was able to maintain its debt service tax rate at $ per $100 of assessed value for the fourth straight year. Additional information regarding the Debt Service Fund budget is included in the Debt Service Fund section of this book on pages School Nutrition Service Fund Highlights The District s school nutrition program continues to operate efficiently. Despite maintaining tray meal prices at the same level for the past several years, the fund is projected to operate at a surplus for Several initiatives are planned for the year, including improving food choices and investments in new capital equipment. Additional information regarding the School Nutrition Services Fund budget is included in the School Nutrition Services Fund section of this book on pages North East ISD Budget

13 Community Profile The North East Independent School District spans approximately 144 square miles in the north central and northeast sections of Bexar County, Texas. The majority of the District lies within the boundaries of the City of San Antonio, but several small communities are also encompassed within North East ISD, including the cities of Castle Hills, Hill Country Village, Village Park, and Windcrest. The District is the second largest independent school district in the Metropolitan San Antonio area and the eighth largest in the state of Texas. It is also among the 100 largest in the United States. History The District was originally established as a county school district in 1949 named the North East Rural High School District #9. The District had an enrollment of 756 students. In 1955, the board voted to become North East Independent School District. The District included 10 campuses and grew from 756 students in 1949 to 14,316 students in Today, the District s student population has grown to more than 65,000 students. North East Schools The District presently is comprised of eight high schools, 13 middle schools, and 44 elementary schools. North East also offers 12 magnet schools and programs. Two elementary schools Tuscany Heights and Cibolo Green are opening in the school year. Tradition of Excellence The District s Tradition of Excellence continues to attract families and businesses. The U.S. Department of Education bestowed the No Child Left Behind - Blue Ribbon Award to three North East high schools in 2000, three elementary schools in 2001, two elementary schools in 2007, one elementary school in 2008, and one middle school in In addition, North East boasts a National Exemplary Community Education Program. Under the Texas Academic Excellence Indicator System (AEIS) for 2010, 86 percent of the District s schools were rated either Exemplary or Recognized the two highest recognitions given by the State. For 2010, North East was named the large district winner of the H-E-B Excellence in Education award. The H-E-B Excellence in Education Award program was created to celebrate and recognize the contributions of public school district professionals give to all students. The judges looked for examples of North East's commitment to student achievement through innovative programs, parental and community involvement, as well as professional development opportunities for teachers and administrators. However, North East ISD s tradition of excellence goes beyond academic accomplishments and includes robust extra-curricular programs. We attract families with our focus on a 360 degree education academics plus extra-curricula s. Demographics The North East ISD community has a population in excess of 400,000, 20% of the San Antonio Metropolitan Area. Eighty-nine percent of the community s adult population has a high-school diploma or equivalent, compared to 82% and 80%, respectively for the City of San Antonio and State of Texas. Sixty-eight have education beyond high school, compared to 54% and 56%, respectively, for the city and state. The North East ISD community has a diverse population; 47% are White, 41% Hispanic/Latino, and 6% Black/African-American. The Hispanic/Latino community is by far the largest growing sub-population, evidenced by the NEISD student population versus the total community population. NEISD student demographics include 54% Hispanic/Latino, 33% White, and 7% Black/African-American. Additional demographic information can be found on pages North East ISD Budget

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15 exas Tradition of Excellence SCALE: 1" = 9800' COPYRIGHT by MAPSCO, INC. - ALL RIGHTS RESERVED #10727 LCR # North East ISD Budget

16 HIGH SCHOOLS 1 Academy of Creative Education 3736 Perrin-Central, Bldg. 2, D-6 7 Agriscience Magnet Program 5005 Stahl Rd., , ext E-4 9 Alternative Center/HSRC 103 West Rampart, B-7 1 Automotive Technology Academy 3736 Perrin-Central, Bldg. 4, D-6 1 Center School 3736 Perrin-Central, Bldg. 1, D-6 2 Churchill Blanco Rd., B-6 3 Design & Technology Academy 5110 Walzem Rd., , ext E-7 6 Electrical Systems Technology 2923 Bitters Rd., , ext D-7 3 Engineering & Technologies Academy 5110 Walzem Rd , ext E-7 1 Evening High School 3736 Perrin-Central, Bldg. 4, D-6 4 International School of the Americas 1400 Jackson-Keller, B-7 5 Johnson Bulverde Rd., D-2 4 Lee 1400 Jackson-Keller, B-7 6 MacArthur 2923 Bitters Rd., D-7 7 Madison 5005 Stahl Rd., E-4 4 North East School of the Arts 1400 Jackson-Keller, B-7 1 North East Transition School 3736 Perrin-Central, Bldg. 1, D-6 4 Plumbing, Heating, Ventilation & Air Conditioning 1400 Jackson-Keller, B-7 8 Reagan Ronald Reagan, B-3 3 Roosevelt 5110 Walzem Rd., E-7 MIDDLE SCHOOLS 1 Adolescent Intervention Center 3736 Perrin-Central, Bldg. 1, D-6 9 Alternative Center/MSRC 103 West Rampart, B-7 10 Bradley Heimer Rd., C-5 11 Bush 1500 Evans Rd., C-2 12 Driscoll Jones Maltsberger, D-4 13 Eisenhower 8231 Blanco Rd., B-6 14 Garner 4302 Harry Wurzbach, D-7 15 Harris 5300 Knoll Creek, E-4 17 Interactive Media Applications at Krueger 438 Lanark Dr., , ext E-8 16 Jackson 4538 Vance Jackson, A-7 17 Krueger 438 Lanark Drive, E-8 17 Krueger School of Applied Technologies 438 Lanark Drive, , ext E-8 18 Lopez (opens ) Hardy Oak Blvd., B-2 19 Nimitz 5426 Blanco Rd., B-8 20 Tejeda 2909 East Evans Rd., D-2 21 White 7800 Midcrown, E-7 22 Wood Judson Rd., F-5 ELEMENTARY SCHOOLS 23 Bulverde Creek 3839 Canyon Pkwy., D-3 24 Camelot 7410 Ray Bon, E-8 25 Canyon Ridge Stone Oak Pkwy., C-2 26 Castle Hills 200 Lemonwood, B-7 27 Clear Spring 4311 Clear Spring, E-7 28 Coker 302 Heimer Rd., C-5 29 Colonial Hills 2627 Kerrybrook Court, A-7 30 Dellview 7235 Dewhurst Rd., A-8 31 East Terrell Hills 4415 Bloomdale, E-8 32 El Dorado El Sendero, E-6 33 Encino Park 2550 Encino Rio, D-3 34 ESRC, Child Intervention Center 519 Pike Rd., D-7 35 Fox Run 6111 Fox Creek, F-4 36 Hardy Oak Hardy Oak Blvd., B-2 37 Harmony Hills Memory Lane, B-6 38 Hidden Forest 802 Silver Spruce, B-4 39 Huebner Huebner Rd., A-4 40 Jackson-Keller 1601 Jackson-Keller, B-7 41 Larkspur Bel Air Drive, B-6 42 Longs Creek O Connor Rd., E-4 43 Montgomery 7047 Montgomery Drive, F-7 44 Northern Hills Higgins Rd., E-5 34 Northwood 519 Pike Rd., D-7 45 Oak Grove 3250 Nacogdoches, D-7 46 Oak Meadow 2800 Hunter s Green, A-5 47 Olmos 1103 Allena Drive, B-8 48 Redland Oaks Redland Rd., D-4 49 Regency Place 2635 Bitters Rd., D-6 50 Ridgeview 8223 N. McCullough, B-7 51 Roan Forest Roan Park, D-2 52 Royal Ridge 5933 Royal Ridge, F-6 53 Serna 2569 NE Loop 410, D-7 54 Stahl 5222 Stahl Rd., E-5 55 Steubing Ranch 5100 Knoll Creek, E-4 56 Stone Oak Crescent Oaks, B-3 57 Thousand Oaks Henderson Pass, D-4 58 Walzem 4618 Walzem Rd., E-7 59 West Avenue 3915 West Avenue, A-8 60 Wetmore 3250 Thousand Oaks, D-5 61 Wilderness Oak Wilderness Oak, B-2 62 Wilshire 6523 Cascade, D-8 63 Windcrest 465 Faircrest, E-7 64 Woodstone 5602 Fountainwood, E-5 OTHER NEISD FACILITIES 65 Blossom Athletic Center Jones Maltsberger, C-6 North East Education Center 8961 Tesoro Drive (210) C-7 65 Transportation - BAC Jones Maltsberger, C-6 NOTE: The number on the left corresponds to the map of the district printed on the front of this form. Locator grid coordinates are to the right of the phone number. North East ISD Budget

17 District Rating The Texas Education Agency rates school districts annually. There are four ratings available: Exemplary, Recognized, Acceptable, and Academically Unacceptable. This chart shows the ratings of the twenty largest districts in Texas, representing almost 32% of all students in the state. North East ISD earned the rating of Recognized for , the third largest district in the state to earn that recognition. District Rating Enrollment 250 Exemplary Recognized Acceptable Unacceptable (In Thousands) Houston Dallas Cypress-Fairbanks Northside Austin Fort Worth Fort Bend North East Arlington El Paso Aldine Katy Garland San Antonio Plano Pasadena Lewisville Conroe Brownsville Alief Enrollment Although 21% of school districts within Texas received a rating of Exemplary, only 9% of Texas students attend a district that received an Exemplary rating. As shown above, only 1 district out of the largest twenty received a rating of Exemplary. % of Districts by Rating Exemplary Recognized Acceptable Unacceptable 3% 26% 21% 36% % of Students by District Rating Exemplary Recognized Acceptable Unacceptable 3% 9% 50% 52% North East ISD Budget

18 2010 School Accountability Ratings Exemplary Recognized Academically Acceptable ISA Churchill Acad. of Creative Ed Reagan Lee Colonial Hills ES Johnson MacArthur East Terrell Hills ES Bush MS Madison Krueger MS Lopez MS Roosevelt Larkspur ES Tejeda MS Bradley MS Olmos ES Bulverde Creek ES Driscoll MS Serna ES Canyon Ridge ES Eisenhower MS Stahl ES Encino Park ES Garner MS Walzem ES Hardy Oak ES Harris MS Harmony Hills ES Jackson MS Hidden Forest Es Nimitz MS Huebner ES White MS Northwood ES Wood MS Oak Grove ES Camelot ES Oak Meadow ES Castle Hills ES Redland Oaks ES Clear Spring ES Roan Forest ES Coker ES Steubing Ranch ES Dellview ES Stone Oak ES El Dorado ES Thousand Oaks ES Fox Run ES Wetmore ES Jackson-Keller ES Wilderness Oak ES Longs Creek ES Wilshire ES Montgomery ES Woodstone ES Northern Hills Regency Place ES Ridgeview ES Royal Ridge ES West Avenue ES Windcrest ES Academically Unacceptable None Received Same Rating as Prior Year Recognized in 2009 Recognized in 2009 Academically Acceptable in 2009 Exemplary in 2009 North East ISD Budget

19 Academic Performance Results 2010 (TAKS Test Results -- All Students) % Met Standard % Commended Performance State % Met Standard State % Commended Performance Grade 3 All Tests 85% 28% 82% 25% Reading/ELA 93% 52% 91% 45% Math 86% 33% 85% 31% Grade 4 All Tests 79% 16% 77% 13% Reading/ELA 88% 33% 86% 28% Math 87% 37% 87% 37% Writing 92% 33% 92% 30% Grade 5 All Tests 86% 26% n/a n/a Reading/ELA 94% 40% 85% 33% Math 94% 48% 85% 42% Science 90% 50% 88% 44% Grade 6 All Tests 80% 24% 76% 20% Reading/ELA 90% 38% 86% 32% Math 85% 35% 82% 31% Grade 7 All Tests 82% 17% 74% 13% Reading/ELA 91% 37% 86% 29% Math 87% 30% 81% 23% Writing 97% 42% 95% 36% Grade 8 All Tests 80% 19% n/a n/a Reading/ELA 98% 55% 91% 46% Math 92% 29% 80% 23% Science 83% 36% 78% 30% Social Studies 97% 55% 95% 42% Grade 9 All Tests 77% 18% 69% 13% Reading/ELA 95% 33% 92% 26% Math 78% 30% 70% 24% Grade 10 All Tests 72% 8% 64% 6% Reading/ELA 93% 22% 90% 16% Math 80% 21% 74% 18% Science 84% 24% 74% 17% Social Studies 96% 51% 93% 42% Grade 11 All Tests 88% 13% 82% 9% Reading/ELA 96% 41% 93% 32% Math 93% 31% 89% 25% Science 95% 23% 91% 18% Social Studies 99% 66% 98% 54% North East ISD Budget

20 Financial Accountability The Texas Education Agency (TEA) maintains the Schools Financial Integrity Rating System of Texas (FIRST). The system was implemented in The primary goal of Schools FIRST is to achieve quality performance in the management of school districts financial resources, a goal made more significant due to the complexity of accounting associated with Texas school finance system. The Schools FIRST accountability rating system assigns one of four financial accountability ratings to Texas school districts: Superior Achievement Above-Standard Achievement Standard Achievement Substandard Achievement Ratings are issued annually. North East ISD has received the highest rating of Superior Achievement in each year Schools FIRST has been in effect. Schools FIRST rankings depend on the District s response to certain indicators. Indicators One through Six are pass/fail indicators; indicators One through Four must be passed to earn a rating above Substandard Achievement. Additionally, Indicator Five or Six must be passed to earn a passing rating. The remaining indicators are scored on a sliding scale from zero to five with a minimum score of 72 plus a passing score on Indicator Seven required to earn Superior Achievement status. Three Year Schools FIRST Results 1. Was the total Fund Balance less Reserved Fund Balance greater than zero in the General Fund? $57,266, $67,552, $75,682, Was the Total Unrestricted Net Asset Balance in the Governmental Activities Column in the Statement of Net Assets (Net of Interest Accretion on Capital Appreciation Bonds Greater than Zero)? $52,335, $82,798, $95,598, Were there NO disclosures in the Comprehensive Annual Financial Report (CAFR) and/or other sources of information concerning default on bonded indebtedness obligations? No default in any year 4. Was the CAFR filed within one month after the November 27 deadline? CAFR filed timely every year 5. Was there an Unqualified Opinion in the CAFR? Yes - Unqualified opinion every year 6. Did the CAFR NOT disclose any instance(s) of material weakness in internal controls? No material weaknesses in any fiscal year 7. Did the District s academic rating exceed academically acceptable? Recognized District Recognized District Recognized District 8. Was the percent of total tax collections (including delinquent) greater than 98 percent? % collected % collected % collected 9. Did the comparison of Public Education Information Management System (PEIMS) data to like information in the CAFR result in an aggregate variance of less than three percent of expenditures per fund type (Data Quality Measure)? % variance % variance % variance North East ISD Budget

21 10. Were Debt-Related Expenditures less than $350 per student? (OR, if the district s five-year percentage change in students was a seven percent increase or more, or if property taxes collected per penny of tax effort were more than $200,000, then answer this indicator YES.) $1,292 debt cost per student - FAIL 10.34% enrollment growth - PASS $2,732,783 tax/penny - PASS $1,307 debt cost per student - FAIL 10.54% enrollment growth - PASS $2,488,491 tax /penny - PASS $1,144 debt cost per student - FAIL 11.35% enrollment growth - PASS $2,195,765 tax/penny - PASS 11. Were there NO disclosures in the CAFR of Material Noncompliance? No material noncompliance noted in audit report in any fiscal year. 12. Did the district have full accreditation status in relation to financial management practices? NEISD was fully accredited in all fiscal years 13. Was the aggregate of Budgeted Expenditures and Other Uses LESS THAN the aggregate of Total Revenues, Other Resources and Fund Balance in the General Fund? $55,895,747 Balance $58,561,823 Balance $66,535,994 Balance 14. If the district s Aggregate Fund Balance in the General Fund and Capital Projects Fund was LESS THAN zero, were construction projects adequately financed? N/A: Aggregate Balance > 0 every year. 15. Was the ratio of Cash and Investments to Deferred Revenues in the General Fund greater than or equal to 1:1? $95,130,748 > $8,793, $90,365,759 > $8,972, $95,222,160 > $9,989, Was the Administrative Cost Ratio less than the threshold in State Law (11.05%)? % % % 17. Was the Ratio of Students to Teachers within the range prescribed by TEA (13.5:1 to 22:1 for districts greater than 10,000 students)? students per teacher students per teacher students per teacher 18. Was the Ratio of Students to Total Staff within the range prescribed by TEA (7:1 to 14:1 for districts greater than 10,000 students)? students per staff students per staff students per staff 19. Was the Total Fund Balance in the General Fund more than 50 percent and less than 150 percent of Optimum according to the Fund Balance and Cash Flow Calculation Worksheet in the CAFR? Optimum = $98,637,727 Actual = $61,002,284 Ratio = 61.8% Optimum = $100,925,331 Actual = $70,993,011 Ratio = 70.3% Optimum = $101,835,767 Actual = $78,939,075 Ratio = 77.5% North East ISD Budget

22 20. Was the decrease in Unreserved, Undesignated Fund Balance less than 20 percent over two Fiscal Years? Decrease of $17,866,192, or 23.8% Decrease of $6,246,213 or 10.2% N/A -- Increase 21. Was the Aggregate Total of Cash and Investments in the General Fund more than $0? $95,130, $90,365, $95,222, Were Investment Earnings in all funds (excluding Debt Service and Capital Projects funds) more than $20 per student? $38 per student $111 per student $108 per student Total Score = 76 Minimum for Superior Achievement = 72 Additional Schools FIRST Results Information Detailed ratings and certain appendices for NEISD are available on the NEISD Web site at the following address: TEA maintains the listing for all school districts and the state as a whole at the following Web site: The website lists the districts by their County ID number. NEISD s county ID number is North East ISD Budget

23 Texas Public Education Mission, Goals & Objectives Mission The mission of the public education system of this State is to ensure that all Texas children have access to a quality education that enables them to achieve their potential and fully participate now and in the future in the social, economic, and educational opportunities of our State and nation. That mission is grounded on the conviction that a general diffusion of knowledge is essential for the welfare of this State and for the preservation of the liberties and rights of citizens. It is further grounded on the conviction that a successful public education system is directly related to a strong, dedicated, and supportive family, and that parental involvement in the school is essential for the maximum educational achievement of a child , Texas Education Code Public Education Academic Goals To serve as a foundation for a well-balanced and appropriate education: 1. The students in the public education system will demonstrate exemplary performance in the reading and writing of the English language. 2. The students in the public education system will demonstrate exemplary performance in the understanding of mathematics. 3. The students in the public education system will demonstrate exemplary performance in the understanding of science. 4. The students in the public education system will demonstrate exemplary performance in the understanding of social studies , Texas Education Code Public Education Objectives 1. Parents will be full partners with educators in the education of their children. 2. Students will be encouraged and challenged to meet their full educational potential. 3. Through enhanced dropout prevention efforts, all students will remain in school until they obtain a high school diploma. 4. A well-balanced and appropriate curriculum will be provided to all students. 5. Educators will prepare students to be thoughtful, active citizens who have an appreciation for the basic values of our state and national heritage and who can understand and productively function in a free enterprise society. 6. Qualified and highly effective personnel will be recruited, developed, and retained. 7. The state's students will demonstrate exemplary performance in comparison to national and international standards. 8. School campuses will maintain a safe and disciplined environment conducive to student learning. 9. Educators will keep abreast of the development of creative and innovative techniques in instruction and administration using those techniques as appropriate to improve student learning. 10. Technology will be implemented and used to increase the effectiveness of student learning, instructional management, staff development and administration , Texas Education Code North East ISD Budget

24 North East ISD Mission, Core Values & Goals Mission We challenge and encourage each student to achieve and demonstrate academic excellence, technical skills, and responsible citizenship. Core Values Academic Rigor Excellence Integrity Security Service Goals of the Board of Trustees 1. NEISD will prepare our students for college and workforce readiness by challenging them to maximize their knowledge, technological skills, and potential for learning through both academic achievement and personal excellence. 2. NEISD will provide and maintain safe and supportive environments for our students. 3. NEISD campuses will serve as centers for community involvement. 4. NEISD will develop and promote positive relationships through communication, involvement and partnerships with our community. 5. NEISD will emphasize character development and civic responsibility. 6. NEISD will continue to use best practices in its efficient and effective management of District resources. 7. NEISD will recruit and retain exemplary employees committed to student excellence and professional development. 8. NEISD will foster a culture of health and wellness among our students, staff and community. Framework for Achievement To achieve the mission of the North East Independent School District, district leadership follows a planning and decision-making process specified in Section of the Texas Education Code. The following is a brief summary of the process. Districtwide Educational Improvement Council In compliance with Education Code , the Districtwide Educational Improvement Council shall advise the Board or its designee in establishing and reviewing the District s educational goals, objectives, and major districtwide instructional programs identified by the Board or its designee. The council shall serve exclusively in an advisory role except that the Council shall approve staff development of a Districtwide nature. Staff representatives are elected by secret ballot, serve staggered two-year terms and meet outside the regular school day at least four times a year. Two-thirds of the elected members shall be classroom teachers. One-third shall be district professional employees. Parents, community members, and business representatives are appointed to the Council by the Superintendent. The Council consists of: Four elementary classroom teachers Four middle school classroom teachers Four high school classroom teachers Five non-teaching district-level professional employees Seven parent representatives (one per cluster) Two or more community members Two business representatives District Instructional Improvement Plan Each school district shall have a district improvement plan that is developed, evaluated, and revised annually, in accordance with district policy, by the superintendent with the assistance of the district-level committee established under Section The purpose of the district improvement plan is to guide district and campus staff in the improvement of student performance for all student groups in order to attain state standards in respect to the student achievement indicators adopted under Section North East ISD Budget

25 The district improvement plan must include provisions for: 1. a comprehensive needs assessment addressing district student performance on the student achievement indicators, and other appropriate measures of performance, that are disaggregated by all student groups served by the district, including categories of ethnicity, socioeconomic status, sex, and populations served by special programs, including students in special education programs under Subchapter A, Chapter 29; 2. measurable district performance objectives for all appropriate student achievement indicators for all student populations, including students in special education programs under Subchapter A, Chapter 29, and other measures of student performance that may be identified through the comprehensive needs assessment; 3. strategies for improvement of student performance that include: a. instructional methods for addressing the needs of student groups not achieving their full potential; b. methods for addressing the needs of students for special programs, such as suicide prevention, conflict resolution, violence prevention, or dyslexia treatment programs; c. dropout reduction; d. integration of technology in instructional and administrative programs; e. discipline management; f. staff development for professional staff of the district; g. career education to assist students in developing the knowledge, skills, and competencies necessary for a broad range of career opportunities; and h. accelerated education 4. strategies for providing to middle school, junior high school, and high school students, those students' teachers and counselors, and those students' parents information about: a. higher education admissions and financial aid opportunities; b. the TEXAS grant program and the Teach for Texas grant program established under Chapter 56; c. the need for students to make informed curriculum choices to be prepared for success beyond high school; and d. sources of information on higher education admissions and financial aid; 5. resources needed to implement identified strategies; 6. staff responsible for ensuring the accomplishment of each strategy; 7. timelines for ongoing monitoring of the implementation of each improvement strategy; and 8. formative evaluation criteria for determining periodically whether strategies are resulting in intended improvement of student performance Each campus is required to produce a Campus Improvement Plan which follows similar guidelines and is in agreement with the goals and strategies of the District Improvement Plan. The District Improvement Plan includes the following district-wide goal: To enhance the professional practice of all North East educators in order to improve learning for all students and to keep all students on track for high school graduation and post secondary success, focusing on the student populations of African-American, Anglo, Asian, Hispanic, Economically Disadvantaged, Special Education, and English Language Learners through a common, high-quality curriculum, focused teacher collaboration, and formative assessment that guides differentiated instruction and creates flexibility and responsiveness to best serve learners and to increase student achievement. The District Improvement Plan includes the following district-wide results: North East ISD schools will prepare all students for college and work force, be Recognized or Exemplary under the State Accountability System, meet the Federal Standard of Adequate Yearly Progress, and work toward a minimum of ten National Merit Semifinalists per comprehensive high school. North East ISD Budget

26 Divisions, Departments, and Missions Division of Business Services and Operations Division Mission To support student success by providing well built schools, a safe and secure environment, clean and well-maintained facilities, adequate nutrition, reliable transportation, and high-quality, efficient business services Department Missions Construction Management & Engineering To create educational environments that promote exemplary student achievement through cost-effective and innovative facility designs Facilities Maintenance & Support To provide children with the best possible learning environment. Finance & Accounting Services To demonstrate responsible stewardship of District resources by providing customers with progressive, efficient and effective business solutions that comply with Generally Accepted Accounting Principles and with federal, state and District laws, policies, rules and regulations Procurement & e-commerce To facilitate the educational process by procuring goods and services, which meet District specifications, with available fiscal resources at the lowest possible cost Risk Management, Employee Benefits, & Health Services To protect the health and safety of employees, students and visitors, while also protecting the District s physical and financial resources through sound risk management techniques, utilizing appropriate loss control and claims management procedures Transportation To provide safe, reliable, economical and courteous school bus service to all eligible students Division of Campus Support and Human Resources Division Mission To support campus personnel promoting student involvement, academic success and a community of life-long learners Department Missions Athletics To develop a program of competitive athletics that focuses on enhancing student performance Fine Arts & Student Activities To educate our students in partnership with other academic disciplines, empowering them to use their minds more creatively, inspiring them through diversity in learning, to broaden their life experiences Human Resources To employ and retain the best personnel possible so that all NEISD students and employees have a positive and secure environment where all can be successful Student Support Services To assist campus administration to analyze their campus discipline data and formulate plans to decrease the number and seriousness of incidences through the Behavior Management Plan; to coordinate with Special Education to properly discipline special education qualified students; and to actively pursue the removal of improperly enrolled students residing outside the North East ISD boundaries Safety To provide children and staff with a safe environment North East ISD Budget

27 High School Administrative Staff Development To support campus personnel promoting student involvement, academic success and a community of life-long learners which learning in an environment that is most appropriate and least restrictive Middle School Administrative Staff Development To support campus personnel promoting student involvement, academic success and a community of life-long learners Elementary School Administrative Staff Development To support campus personnel promoting student involvement, academic success and a community of life-long learners Division of Instruction and Technology Division Mission To prepare all students for college, career readiness and global competitiveness in the 21st century Department Missions Curriculum Compliance To provide comprehensive support for the instructional programs on all campuses Management Information Services To provide data processing, process automation, and technology implementation support to District departments in a timely and cost effective manner and to provide technical support and consultation to facilitate District processes and decisions Research & Information Technologies To promote student learning by providing timely and pertinent information for the District's schools and departments School Improvement To provide comprehensive support for the instructional programs on all campuses Special Education To meet the individual student s needs through communication and collaboration among general education staff, special education staff, and parents and to provide North East ISD Budget

28 District Instructional Improvement Plan Each year, district staff prepare an instructional improvement plan. The plan lists specific actions to be taken to impact student achievement. Each action strategy is linked to a specific board goal. Also listed are evaluation indicators, the student-centered strategies used, the timeline, responsible person(s), and estimated cost and resources. Under Cost/Resources, costs are listed if estimable. Most items do not require additional resources; rather, the strategy identified is a use of existing resources. Many items are identified as being funded through special revenue funds. Board Goals (BGs) 1. NEISD will prepare our students for college and workforce readiness by challenging them to maximize their knowledge, technological skills, and potential for learning through both academic achievement and personal excellence. 2. NEISD will provide and maintain safe and supportive environments for our students. 3. NEISD campuses will serve as centers for community involvement. 4. NEISD will develop and promote positive relationships through communication, involvement and partnerships with our community. 5. NEISD will emphasize character development and civic responsibility. 6. NEISD will continue to use best practices in its efficient and effective management of District resources. 7. NEISD will recruit and retain exemplary employees committed to student excellence and professional development. 8. NEISD will foster a culture of health and wellness among our students, staff and community. CT Critical Thinking and Problem Solving DI Differentiated Instruction (Content, Process and/or Product) RELEVANCE Teachers will set goals with individual students and provide frequent feedback regarding progress toward goal mastery. GSF Goal-Setting and Frequent Feedback with Individual Students AFL Assessment-for-Learning Strategies to Guide Instruction PGP Personal Graduation Plans CCR College/Work Force Readiness PBL Performance-Based Learning IBL Inquiry-Based Learning TI Technology Integration RELATIONSHIPS Every student will have a personal teacher advocate who will convey a sense of caring and support CLP Collegial Learning and Planning (ie professional learning communities) MCP Managing Classroom Procedures/Positive Behavior Supports IA Improved Student Attendance PI Parent and Community Involvement HW Health and Wellness HQ Highly Qualified Employees Student-Centered Strategies (SCSs) RIGOR All students will have access to a challenging, TEKS-focused curriculum that is engaging and reflects college/work force readiness 3TL 3-Tier Instructional Model RS Reading Strategies WS Writing Strategies CR Critical Reading AV Development of Academic Vocabulary North East ISD Budget

29 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: Student-Centered Strategies 1,2,3,4,5,6,7 Focus on the student-centered strategies listed above. Support board goals in all district and campus planning to include rigor, relevance and relationship components that enhance student achievement using researchbased, best practices for learning. Action strategies will be evident in campus planning: *Campus Instructional Improvement Plan *August campus professional development PowerPoint for faculty learning/planning sessions addressing campus needs, AEIS/AYP campus data *Faculty meeting agendas, lesson plans and classroom walk-throughs *Campus Leadership Teams evaluation of data, including mini-assessments, benchmarks and common assessments 3TL, CR, AV, AL, CT, DI, GSF, AFL, PGP, CCR, CLP, MCP, IA June - May Campus Principals, Campus Leadership Teams, Teachers Target Area: College and Career Readiness - AVID 1,2 Continue to strengthen the AVID Elective Coordinators and existing AVID programs through District Director will complete campus professional development, curriculum development, collaboration, data analysis, recruitment, parent education/ and district site team plans and create an evaluation instrument that will include the following information: attendance, assessment scores, course involvement, community projects, enrollment, graduation rates, college tutors, and college visits. acceptance and scholarships received, and student/parent surveys. All AVID campuses will complete the AVID Certification process. CT, DI, GSF, CCR, CLP, PGP, PI August - June College & Career Readiness Coordinator, AVID Coordinators, Campus site teams, District site team $661,800 High School Allotment North East ISD Budget

30 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: College and Career Readiness - Establish a College-Going Culture 1,2 Continue partnerships with postsecondary institutions - Gateway, Pathways, SA Education Partnerships. 100% of students will have access to programs that will allow them access to college information 100% of 9th, 10th, and 11th graders will take a college 3TL, CR, AV, AL, August - July Provide students the opportunity preparatory assessment 100% of seniors CT, DI, to take college preparatory assessments - PSAT, ACCUPLACER, AP Exams. Develop and implement a comprehensive plan to prepare NEISD students for the will be accepted into a postsecondary pathway There will be a comprehensive PSAT/SAT plan, a College Board Early Participation document and calendar of events, Memorandums of GSF, AFL, CCR, CLP, PI PSAT/SAT. Partner with College Understanding and Articulated Board in their Early Participation Agreements between NEISD and Program to develop a systemic approach to promoting postsecondary readiness through the implementation and use of programs like AP Potential, My College Quick Start, and district ACCD, increased number of dual credit course offerings, increased number of students participating in dual credit program, increased number of total dual credits earned, and increased number of Distinguished graduates. participation in data analysis of student performance on college readiness exams. Implement Texas College Readiness Standards throughout the district curriculum. Continue and expand partnerships with ACCD campuses to increase students' opportunity to earn dual credit. College and High School Career Readiness Allotment for: Coordinator, Dir. Gateway - of Guidance $100,000 (1/2 Services, Asst. from local) Principals of SA Instruction, Dir. Partnership - and Asst. Dir. of $25,000 Career College Board - Technology, $147,000 and Campus AP $300,000 Counselors, Dual Credit Teachers, ACCD Personnel Target Area: Data Analysis 1,5 Train all campus administration and faculties to use data screens All faculty and administration will receive training, through the trainer-oftrainers GSF, AFL July - May Research and Info, Ed Tech, model, as documented through to locate and analyze student data Campus obtained through benchmark assessments and TAKS assessments. attendance at training sessions or completion of courses through ATRAIN. Leadership Teams Target Area: Interventions, Personal Graduation Plans, Student Success Initiative 1,5 Train all campus administration and faculties to identify students' needs as they relate to the Personal Graduation Plan and Student Success Initiative components and to record and monitor student interventions and parental involvement in the intervention process. All faculty and administration will receive training, through the trainer-oftrainers model, as documented through attendance at training sessions or completion of courses through ATrain. GSF, PGP, 3TL, CCR, PI July - May Research and Info, School Improvement, Ed Tech, Campus Leadership Teams North East ISD Budget

31 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: Curriculum 1,5,6 Provide access to the district curriculum per core content area through the School Improvement Web page. Provide exemplar lessons aligned with TEKS identified as weaknesses in the instructional program through the content specialists. Provide Content Specialist support to all campuses to positively impact student achievement. Target Area: Reading/ELA 1,5 Utilize the North East Scope and Sequences for ELA and Reading in Grades K-12 as the basis for lesson planning, along with the Revised ELAR TEKS. 1,5 Provide teachers instruction and support in before, during, and after reading strategies. Alignment of the common curriculum will be evident through classroom observations. Targeted Efforts forms will indicate training, modeling and support with exemplar lessons. Targeted Efforts forms will indicate campus support by Specialists. All observations, formative walkthroughs, and lesson planning will indicate use of District scope and sequences. 100% of students in grades 3-11 will meet expectations on TAKS reading and writing. Observations, formative walk-throughs, and lesson planning will indicate appropriate application of district expectations for instruction. 100% of students will meet expectations on TAKS reading, writing and ELA tests with increasedcommended level performances. 3TL, CR, AV, AL, CT, DI, GSF, AFL, PGP, CCR, CLP, MCP, IA 3TL, CR. AV, AL, CT, DI 3TL, CR, AV, AL, CT, DI August - May Fall - Spring Fall - Spring Ex. Dir. of School Improvement Asst. Dir. of $5,000 Reading, Asst. Dir. of ELA, Literacy Specialists, Title I Facilitators, MS Reading and English Department Chairs, HS Deans of Instruction for English Asst. Dir. of $50,000 Reading, Asst. Dir. of ELA, Literacy Specialists 1,5 Provide teacher support in vocabulary development, especially ELA academic vocabulary, using a variety of strategies and Four Blocks support to new and veteran teachers. Observations, formative walk-throughs, and lesson planning will indicate appropriate application of vocabulary development strategies. 100% of students in grades 3-11 will meet expectations on TAKS reading. AV Fall - Spring Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists $25,000 North East ISD Budget

32 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5 Focus on meeting the needs of struggling readers through implementation of best practices for reading using core instruction, targeting needs based on current data, and the implementations of the Voyager program for grades K-5 and 9-10 and Rex Extreme for grades 6-8. Using the What to Look for in the Reading Classroom Checklist as a guide, observations or formative walkthroughs will indicate appropriate application of reading strategies for all students, as will Voyager data. 3TL, DI Fall - Spring Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists $420,000 1,5,6 Provide focused learning opportunities for IITs, Title I facilitators, MS English and Reading Department Chairs, HS Academic Literacy teachers, and MS and HS Deans. These individuals will demonstrate evidence of implementation through reflective feedback at district departmental meetings. 3TL, Fall - CLP, Spring DI, AL, CT, AFL, PGP Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists $25,000 1,5 Develop, implement and monitor benchmark assessments to guide reading and writing instruction, student goal-setting, and to prepare for upcoming EOCs: reading, grades 2-9; writing/ela grades 2, 3, 4, ,5,6 Increase support of MS reading and English programs by guiding and supporting the creation of aligned lessons/units of study based on updated curriculum for grade 6-8 reading/english. 1,5,6 Provide for support of the teacher-as-writer through Abydos Institutes (formerly NJWPT) in Texas and Teacher-as-Writer Academies. 1,5,6 Provide support for rigorous PreAP, AP, and GT ELA curricula and for students taking the PSAT and SAT through a variety of support programs: Laying the Foundation, Applied Practices Onsite License, SAT and AP Institutes, etc. 100% of students at grades 2-9 will be administered periodic benchmark assessments to determine reading progress. 100% of students at grades 4, 6, 7, 10, 11 will be administered periodic benchmark assessments to determine writing/ela progress. All MS English and reading department lesson plans will reflect collaborative planning aligned with district curriculum guidelines. At least 20 teachers of writing will participate in the Abydos Institute. At least 25 teachers of reading/writing will participate in the Teacher-as-Writer Academies. Observations and formative walkthroughs will show evidence of appropriate use of these materials. District will have a 10% increase in number of students achieving at least a 3 on English AP testing. PSAT and SAT test scores will improve by an average of ten points. GSF, AFL, PGP Fall - Spring CLP, Fall - DI, Spring 3TL, CR, AV, AL, CT CLP, CR, AL, DI Fall - Spring CCR, Fall - CT, DI, Spring AV, AL Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists Asst. Dir. of ELA, Literacy Specialists Asst. Dir. of ELA, Literacy Specialists $70,000 $50,000 $20,000 $100,000 North East ISD Budget

33 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5,6 Support differentiated writing instruction by providing instruction and support in the implementation of writing workshop, 6-Trait writing, the use of mentor text, and strategies for using the writing process. Using the What to Look For in the Writing Classroom Checklist as a guide, formative walk-throughs, observations and lesson planning will indicate appropriate application of 6-Trait writing principles and best practices of writing instruction. 100% of students will meet expectations of TAKS writing test. DI, AL, CR, MCP Fall - Spring Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists $80,000 1,5,6 Support less experienced teachers through collaborative staff development as they prepare students to meet the demands of the TAKS Writing test, the TAKS ELA at grades 4, 7, 9, 10, 11, and the upcoming EOCs. Benchmarks at grades 2, 3, 4, 6, 7, 9, 10, 11 will indicate improvement in meeting all TAKS writing/ela objectives. All students will meet expectations on TAKS Writing and ELA. 1,5,6 Align North East Scope and Alignment of curriculum will be Sequence and curriculum support evident through classroom walkthroughs and all students in grades 3 - to the newly revised TEKS, ELPS, CCRS for ELA, grades K - 12 meeting expectations of TAKS 12. Reading/Writing/ELA. 1,5 Promote college readiness by supporting student engagement and rigor in the secondary ELA and reading classrooms through more effective research, questioning, and discussion strategies. Target Area: Mathematics 1,5 Utilize the North East Scope and Sequence for grades K - 12, along with the TEKS-based Resource Web site. Integrate the use of best practices, use of formative and summative assessments, and utilize the vocabulary development process when supporting teachers with instruction. Walk-throughs will indicate use of effective research, questioning, strategies, and student engagement in content-based conversation. Using the What to Look for in the Mathematics Classroom Checklist as a guide, observations and formative walkthroughs will indicate that the appropriate TEKS and levels of understanding are being addressed. 100% of students in grades 3-12 will meet expectations on TAKS mathematics. GSF, AFL, CLP 3TL, CR, AV, AL, CT, DI Fall - Spring Summer- Spring CCR, August - MCP, June DI, CT, AL 3TL, Fall - AFL, Spring GSF, AV,DI, CT, CLP Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists Asst. Dir of Reading, Asst. Dir of ELA, Literacy Specialists Asst. Dir. of Reading, Asst. Dir. of ELA, Literacy Specialists $35,000 $30,000 $10,000 Principals, Asst. $18,000 Principals, Academic Deans, Math Instructional Deans, Math Facilitators, Asst. Dir. of Math, Math Specialists North East ISD Budget

34 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5,6 Provide K 12th grade teachers with focused professional development and support in the implementation of best instructional practices and standards-based mathematics curriculum, including use of the problem solving process, implementation of rubrics, differentiated instruction, and standards-based assessment. For secondary grade levels, focus will include increasing the number of students enrolling in Pre-AP and AP mathematics courses. 85% of students will score a minimum of 70% on each benchmark. Using the What to Look for in the Mathematics Classroom Checklist. 100% of formative walk-throughs will indicate application of the skills acquired during the professional development. 1,5,6 Provide continued support for Using the What to Look for in the Kinder to 2nd grade teachers with Mathematics Classroom Checklist, 100% of focused professional development formative walk-throughs will indicate about assessments designed to application of the skills acquired during increase teacher content the professional development. knowledge and the 100% of 3rd grade students will meet implementation of best expectations on the mathematics TAKS instructional practices and and 100% of second graders will meet standards-based mathematics expectations on the final benchmark. curriculum. 1,5,6 Provide HS leadership teams, including team leaders from Algebra I, geometry, and Algebra II, math instructional deans, and one campus administrator with professional development and support in leadership, with a focus on increasing success for all students in mathematics courses. 85% of students will score a minimum of 70% on each benchmark. Using the What to Look for in the Mathematics Classroom Checklist, 100% of formative walk-throughs will indicate application of the skills acquired during the professional development. 3TL, CLP, HQ, DI CLP, HQ, DI CLP, HQ, DI Ongoing throughout the school year November, April August, September, November, February, March Asst. Dir. of Math, Math Specialists $50,150 Title II Asst. Dir. of $ Title Math, II for training Elementary Math Specialists Asst. Dir. of Math, Secondary Math Specialists, HS Math Instructional Deans $10,880 Title II 1,5,6 Provide Geometry teachers with 85% of students will score a minimum professional development and of 70% on each benchmark. Using the support in preparation for the What to Look for in the Mathematics Geometry EOC requirements and Classroom Checklist, 100% of formative the 4x4. walk-throughs will indicate application of the skills acquired during the professional development. CLP, HQ, DI September, November, January Asst. Dir. of Math, Secondary Math Specialists, HS Math Instructional Deans $10,200 Title II North East ISD Budget

35 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5,6 Provide MS vertical focus teams with continued professional development focused on the big ideas of vertical connections between the grade levels. 85% of students will score a minimum of 70% on each benchmark. Using the What to Look for in the Mathematics Classroom Checklist, 100% of formative walk-throughs will indicate application of the skills acquired during the professional development. CLP, HQ, DI September, November, March Asst. Dir. of Math, Secondary Math Specialists, HS Math Instructional Deans $10,200 Title II 1,5,6 Provide elementary teachers new 85% of students will score a minimum to their grade level with targeted of 70% on each benchmark. Using the professional development prior to What to Look for in the Mathematics the start of each new unit of math Classroom Checklist, 100% of formative study. walk-throughs will indicate application of the skills acquired during the professional development. CLP, HQ, DI Ongoing throughout the school year, based on grade level sequences Asst. Dir. of Math, Secondary Math Specialists, HS Math Instructional Deans $44,880 Title II Target Area: Science 1,5 Utilize the North East Scope and Sequence for Grades K through 12. Observations, formative walk-throughs, and lesson planning will indicate use of District scope and sequences and the appropriate student expectations and levels of understanding are being addressed. 3TL, AFL Fall - Spring Principals, Asst. $5,000 Principals, Academic Deans, Asst. Dir. of Science, Science Specialists 2 Provide all students, K - 12, with 100% of walk-throughs of all campuses a safe environment in which to will demonstrate compliance with state learn science by fully standards. implementing the Texas Science 100% of campus safety audits will Safety Standards found at the demonstrate compliance with the state Dana Center website. standards. Campuses not in compliance will provide an action plan for meeting encetoolkit/safety/ compliance. Provide professional development to campus science Safety Officers. 1, 5 Integrate inquiry-based instruction, K - 12, to increase student achievement, including: * The 5E instructional model * Improved questioning strategies * Questions that target the unifying concepts * Use of science notebooks 100% of the walk-throughs will indicate the incorporation of some aspect of inquiry-based instructional strategies. GSF, CLP September 3TL, Every nine AL, CT weeks Asst. Dir. of $10,000 Science, Principals, Asst. Principals, Science Instructional Specialists, Campus Science Safety Officers, Science Academic Deans, Department Chairmen Asst. Dir. of $2,000 Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairmen North East ISD Budget

36 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1, 5 Promote differentiated instruction through the use of small group instruction, including student work stations, literacy stations, technology stations, and teacherguided groups. 1, 5 Integrate the use of concrete models and manipulatives to reinforce scientific concepts during inquiry-based activities to balance 2D and 3D instruction. 1, 5 Integrate the use of reading and writing in K- 12 science classrooms through the use of science notebooking, exploratory writing, and presentational writing. 1, 5 Integrate the use of the following best practices into the science program: * Inquiry-based instruction/5e instructional model * field and laboratory experiences * Appropriate tools * Differentiated instruction * Reading/writing strategies * Graphic organizers * SIOP strategies 100% of formative walk-throughs will indicate appropriate use of these instructional strategies. 100% of formative walk-throughs will indicate appropriate use of these instructional strategies. 100% of formative walk-throughs will indicate appropriate use of these instructional strategies. 100% of formative walk-throughs will indicate appropriate use of these instructional strategies. 3TL, Monthly DI, AL, CR 3TL, AL 3TL, CR Monthly Monthly 3TL, Monthly CR, AV. DI Asst. Dir. of Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairpersons, Teachers Asst. Dir. of Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairpersons, Teachers Asst. Dir. of Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairpersons, Teachers Asst. Dir. of Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairpersons, Teachers North East ISD Budget

37 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1, 5 Use multiple means of formative and summative assessments, including mini-assessments, benchmarks, TAKS. Analyze data from assessment to inform instructional decisions. Central Office staff will assist campuses in reviewing miniassessment and benchmark data and assist in developing campus action plans. 100% of the science teachers will incorporate formative assessment strategies, such as performance, portfolio, essay, lab reports, presentation of research projects, models, notebooks, etc. to guide instruction. 1, 5, 6 Provide 6th, 7th, 8th grade, 100% of formative walk-throughs will biology, chemistry, and physics indicate application of the skills content coaches with professional acquired during the professional development and support in development. leadership with a focus on increasing success for all students in science courses. 1, 5, 6 Provide all science teachers with 100% of formative walk-throughs will focused professional development indicate application of the skills and support in the acquired during the professional implementation of best development. 85% of students will instructional practices and score a minimum of 75 on each standards-based science benchmark. curriculum. 1, 5, 6 Provide content-specific Sign-in sheets will reflect attendance of professional development for Title I science facilitators for 7 out of 9 elementary campus Title 1 science monthly meetings. facilitators. 1, 5, 6 Provide professional development Sign-in sheets will reflect attendance of for all Title 1 science facilitators Title I science facilitators for 7 out of 9 in the area of instructional monthly meetings. coaching. 1, 5 Assemble teams of teachers at each grade level and content area to develop new scopes and sequences and other materials in preparation for the implementation of the revised science TEKS. All grade levels and content areas will have a revised scope and sequence and pacing guide at the beginning of the school year. AFL, GSF CLP 3TL, CLP, DI CLP,G SF, 3TL, CR Every nine weeks Every nine weeks August, October, January, April Monthly 3TL, Monthly DI, AL, AL, CT, AFL Monthly Asst. Dir. of $2,000 Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairpersons, Teachers Asst. Dir. of $35,000 Science, Principals, Asst. Principals, Science Instructional Specialists, Science Academic Deans, Department Chairpersons, Teachers Asst. Dir. of $50,000 Science, Science Instructional Specialists Asst. Dir. of Science, Principals, Asst. Principals, Science Instructional Specialists Asst. Dir. Of Science, Science Specialists Asst. Dir. Of Science, Science Specialists, Teacher Teams $5,000 $2,000 $3,000 North East ISD Budget

38 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1, 5 Increase student access to Pre-AP and AP classes. Target Area: Social Studies 1,5 Adhere to published District scope and sequence for social studies instruction at all subject/grade levels. 1,5 Support implementation of differentiated instruction through best practices using Perspective- Based Learning, SIOP strategies, and Content Reading/Writing Strategies in the Classroom. Address the needs of all learners while closing the achievement gaps of Economically Disadvantaged, English Language Learners, and Special Education students. Enrollment numbers will increase by 10% from the previous school year. Common assessments and benchmarks, where appropriate, and walk-throughs will indicate adherence to District scope and sequence. Overall improvement of 5% of students meeting expectations on common assessments, benchmarks, and the TAKS. Raise commended rates by 5%. Evidence of differentiated instruction in the classroom will be provided through walk-throughs and classroom observation, with an overall improvement of 5% of students meeting expectations and commended on common assessments, benchmarks, and the TAKS. 3TL, CCR Annual GSF, Quarterly 3TL, CR, AV, AL, CT, DI 3TL, Quarterly CR, AV, AL, CT, DI Asst. Dir. of Science, Science Instructional Specialists & Science Academic Deans Principals, Asst. Dir. of Social Studies, Social Studies Specialists, Instructional Deans, Department Chairs, APs for Instruction, Teachers Asst. Dir. of Social Studies, APs for Instruction, Teachers, Department Chairs and Instructional Deans $2,000 Title II $3,000 North East ISD Budget

39 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5,6 Continue the North East Social Studies Excellence (NESSE) Lyceum Instructional Leadership, Journeyman, and NESSE Academies. Build leadership capacity at the campus and district levels, while developing social studies teachers for instructional leadership roles. Provide a ready resource for campus-based, job-embedded staff development, focusing on stronger assessment pieces which provide timely feedback for both learner and instructor by means of mini assessments and authentic/project-based assessments. Increase student achievement by impacting instructional quality with a focus on struggling readers and writers and vocabulary development while challenging all learners. Cohort members conduct a minimum of one campus-based staff development during the academic year and participate in North East Social Studies Excellence (NESSE) staff development in the role of participant and presenter/copresenter. Cohort members will assist department and campus leadership as facilitators and active members of the campus leadership team. Cohort members will submit one exemplar lesson each semester for publication to the NESSE Web page lesson plan data base. 3TL, Quarterly CR, AV, AL, CT, DI, AFL, CLP, MCP Asst. Dir. of Social Studies, APs for Instruction, classroom Teachers, Department Chairs and Instructional Deans $27,425 1,5 Incorporate writing into the context of student work in the social studies classroom: Open response/short answer writing in the social studies classrooms on all common and classroom assessments, multi-genre writing in all World Geography classes. Publish one exemplar lesson from each secondary campus per semester on the NESSE Web page lesson plan data base. Provide instruction and support for Document-Based Question (DBQ) in all American and World History classes. Evidence of writing in the social studies classroom through lesson plans and classroom observation. Increased participation in local, state, and national writing competitions will include the Barbara Jordan Essay Contest, Daughters of the Republic of Texas, and National History Day research papers competition. The use of the Mini-DBQ Project will be evident in grades 8, 10, and 11. Samples of student work demonstrating skill development and progress in open response/short answer writing and DBQ analysis. CR, Quarterly AV, CT, DI, AFL Asst. Dir. of Social Studies, Social Studies Specialists; Academic Deans, Teachers North East ISD Budget

40 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: Pre-K/K 1,5,6 Provide research-based professional development and collaborative opportunities (i.e., Early Childhood Connections Meetings, Early Childhood Super Saturday, School-to-School Guided Classroom Observations) for PPCD, PreK and Kindergarten teachers focused on instructional improvement within and across the programs and grade levels (general education to special education, Pre-K to Kindergarten). Attendance at and evaluation of collaborative opportunities. Collaboration and vertical alignment of curriculum between programs and grade levels will increase. CLP, MCP Each nine weeks Exec. Dir. of Curriculum Compliance, Coordinators, Specialists, Early Childhood Coordinator 1,3 Increase attendance of students, parent involvement and collaboration with community preschools and childcare centers through community education efforts with parents and caregivers of 3, 4, and 5 year olds in district. Target Area: Foreign Language 1,5 Implement an instructional program in all languages that is based on articulated performance objectives and includes the vocabulary development process for all students using researchbased strategies. 1,5 Continue the Pre-AP and AP curricula, along with vertical teaming in Levels I, II, III, IV, and AP. The percentage of attendance in Pre-K classrooms will increase. Evaluations and letters from parents and local child care providers will be collected following collaborative efforts. Common departmental semester exams (or other appropriate assessments at the MS level) will indicate that 100% of students are meeting or surpassing proficiency goals. All teachers will distribute performance objectives at the beginning of the school year, post them on their teacher Web, and prominently display the appropriate objective in the classroom. 90% of language teachers will be trained in and will implement Pre-AP and AP teaching strategies. Enrollment numbers in Pre-AP and AP courses will remain stable throughout the school year. Review of failure rates will show fewer than 10% of students failing Pre-AP and AP courses. IA, PI Fall - Spring GSF, 3TL, CLP, AV CLP, GSF, 3TL, ITL December - May Every nine weeks Exec. Dir. of Curriculum Compliance, Coordinators, Specialists, Early Childhood Coordinator Dir. of Curriculum Compliance, Principals, Asst. Principals, Foreign Language Coordinator, Foreign Language Department Chairs and Teachers Dir. of Curriculum Compliance, Foreign Language Coordinator, Foreign Language Department Chairs and Teachers $5,000 $5,000 Title II $5,000 North East ISD Budget

41 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5 Maintain the exploratory Spanish program in all elementary schools taught by instructional assistants using the video program Espanol Para Ti. 1,5 Continue building the MS AP Spanish Language program. Target Area: Gifted/Talented 1,2,5 Increase under-represented populations in G/T using Procedure # 2 testing, the District's alternative way to identify G/T students. (Low socioeconomic students are tested using a different number of tests and different stanines.) Instructional Assistants are trained in teaching video Spanish program. Every elementary student will have a minimum of 45 minutes of Spanish instruction per week. Attendance at professional development opportunities with HS foreign language teachers to assist with strengthening the program. The number of students testing under Procedure #2 compared to the number tested under Procedure #2 last year will increase, thus creating the possibility that more under-represented students will qualify for G/T. CCR, AL GSF, 3TL August - May Nimitz/Jac kson ongoing throughout the year CR. August - AV, May AL, CT, DI, GSF, PGP, CCR, IA Dir. of Curriculum Compliance, Foreign Language Coordinator, Elementary Principals, Instructional Assistants Dir. of Curriculum Compliance, Nimitz & Jackson MS Principals, Asst. Principals, Counselors, & Spanish Teacher, Foreign Language Coordinator G/T Coordinator $10,000 $10,000 $2,000 1,2,5,6 Continue to provide training for G/T 30-Hour Foundation Certification for all core teachers in NEISD. Number of teachers completing this training will show an increase in the number of NEISD teachers having G/T Certification. CR. June - May G/T AV, Coordinator AL, CT, DI, GSF, PGP, AFL, MCP, CCR $2,000 North East ISD Budget

42 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,2 Continue implementation of the new elementary "Test Out/Independent Research" project in regular classrooms. Number of regular classroom teachers implementing the program will show an increase in the number of NEISD CR. AV, AL, June - May G/T Coordinator teachers who are using differentiation to CT, DI, add learning experiences for advanced students. GSF, PGP, CCR, MPG, IA $2,000 Target Area: Library Services 1 Develop lifelong readers through All librarians will promote reading the use of current district reading incentive programs using the most incentive programs (Read Kids appropriate technology tools (Web Read, iread, etc.) and continue to pages, wikis, blogs, etc.). create new and innovative reading incentive programs to encourage reading in all genres. RS, CR, August - AV, May CT, DI, CCR, PI Dir. of Library $15,000 Services, Campus Librarians, Library Services Coordinator for 21st Century Skills 1, 5 Engage in regular and meaningful collaboration with teachers in order to align library instruction with content areas (with a focus on the use of non-fiction texts) and differentiate instruction to meet the needs of all learners. All librarians will: attend training in September to learn how to implement the new NEISD library scope and sequence effectively, work collaboratively with classroom teachers on a regular basis to plan and implement lessons aligned to standards, and update and enter lessons in the Web-based Librarian Lesson Plan Database. RS, July - June WS, CR, AV, CT, DI, CLP, CCR, IBL, TI, HQ Dir. of Library $7,000 Services, Campus Librarians, Library Services Coordinator for 21st Century Skills 1, 5 Model and promote the effective integration of technology and student-centered strategies to support the access, use, evaluation and creation of information. All librarians will refine and/or develop rigorous new lessons that demonstrate the effective integration of technology and will enter the lessons in the Webbased Librarian Lesson Plan Database. RS, August - WS, June CR, AV, CT, DI, CCR, IBL, TI, HW Dir. of Library Services, Campus Librarians, Library Services Coordinator for 21st Century Skills 1, 2, 4, 7 Model, teach and practice the ethical use of information in order to promote good digital citizenship in students, teachers and the community. All librarians will complete the Digital Citizenship course for staff and provide training for staff members, students and parents to include copyright, the 3C Matrix, and the 9 core values of digital citizenship. RS, WS, CR, AV, CT, DI, CCR, TI, PI, HW, HQ August - June Dir. of Library Services, Campus Librarians, Library Services Coordinator for 21st Century Skills North East ISD Budget

43 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: English Language Learners 1,5 Continue support for core content-area classes as they develop Language Objectives in the core areas based on proficiency standards. Special attention and training will be conducted to introduce the English Language Proficiency Standards across the content areas. Collaboration with SI content specialist will ensure implementation of the ELPS. 1,5,6 Administrators, paraprofessionals, teachers and other key stakeholders will have access to the campus-based and general ELL Professional Development offerings through the ELL intranet page for training in initial SIOP, SIOP coaches meetings, linguistic accommodations, English language proficiency standards (ELPS), offerings related to compliance and best practice for English language learners. All elementary and secondary campuses will use the SIOP framework to make their content more comprehensible. Formative evaluation: LEP students will make one level gain in English proficiency as measured annually. District will meet AMAO targets. Teachers will use the SIOP component of building background, lesson preparation and comprehensible input as observed by specialists and campus administration. Formative evaluation: LEP students will make one level gain in English language proficiency as measured annually. District will meet AMAO targets. CR, ITL, CLP GSF, ITL Fall - Spring Fall - Spring Dir. of ELL Programs and ESL Instructional Interventionists Instructional Interventionist, Secondary ESL Instructional Interventionist, Campus Administration Title III 1,2,5,6 The ELL Department will offer initial SIOP training. Core content-area teachers (math, science, social studies, reading and ELA) should receive 18 hours of training within two years of securing the teaching position to ensure implementations of strategies in all classrooms. Teachers will use SIOP strategies in lesson planning as observed and evidenced by specialists and campus administration. Formative evaluation: LEP students will make one level gain in English proficiency as measured annually. District will meet AMAO targets. CR, ITL, CLP Fall - Spring ESL Instructional Interventionists $8,000 - Title III 1,5 Train staff on the revised ELL procedural handbook addressing philosophy, instruction, compliance and reporting procedures, forms and PEIMS coding. 1,5 Conduct training in the following areas at a minimum of 6 times a year: LPAC, LAS-O, LPAC Decision Making Process for the Texas Assessment Program. Campus LPACs will comply with the procedures set forth in the handbook. PEIMS LEP data will be 100% accurate. Campus LPACs will comply with procedures set forth in Chapter 89, Title III, and procedures developed by TEA. PEIMS LEP data will be 100% accurate. CR, ITL, CLP CR, ITL, CLP Fall Fall - Spring Dir. of ELL Programs and ESL Instructional Interventionists Dir. of ELL Programs and ESL Instructional Interventionists Title III Title III North East ISD Budget

44 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5 Conduct training on LEP Student Assessment as requirements are updated and changed through TEA for ELL Points of Contact. Campus LPACs will comply with procedures set forth in Chapter 89, Title III, and procedures developed by TEA. PEIMS LEP data will be 100% accurate. TAKS pre-codes will be 100% accurate. CLP, GSF Fall - Spring Dir. of ELL Programs and ESL Instructional Interventionists Local budget 1,5 Conduct training on the revised LEP screen for campus and/or district personnel involved in entering LEP student data. Special attention to the new PEIMS program codes for Bilingual and ESL will be addressed. 1,2,5 Plan and expand the Dual/Two- Way Immersion program to include all 12 bilingual sites. PEIMS LEP data will be 100% accurate. Increase in the non-lep dual students at the implementation grades (K and 1 at the new schools) will be evident. Target Area: Fine Arts - Special Projects 1,2,6 Provide continual professional All approved workshops will be listed training with workshop on ATrain. Overall participation will opportunities. improve by 10%. CLP Fall - Spring CLP Throughou t the year AL, Monthly CT, DI, GSF, IA Dir. of ELL Programs and ESL Instructional Interventionists Dir. for ELL Programs/ ELL Specialist Dir. of Fine Arts, Fine Arts Staff Local budget Title III 1,2,3,5 Promote increased participation in competitions, performances and exhibits. 1,5 Develop, implement and monitor benchmark assessments to guide program growth and success. 1,5 Support instruction by providing needed equipment and materials to enhance learning experience. All activities will be listed on Fine Arts Web site, distributed through District and posted on District home page. Overall participation will improve by 10%. AL, CT, DI, GSF, IA Weekly Evaluation journals and scorecards will AL, Every 9 be submitted each 9 weeks to document CT, DI, weeks participation, student and faculty achievement and cross-curricular GSF, IA activities. Increase participation by 10%. Central Office staff will review budgetary data and meet with principals and directors to discuss needs and results. AL, Monthly CT, DI, GSF, IA Dir. of Fine Arts, Fine Arts Staff Dir. of Fine Arts, Fine Arts Staff Dir. of Fine Arts, Fine Arts Staff 1,2,5 Promote cross-curriculum activities utilizing Fine Arts programs in core curriculum classes. Classroom observations and program AL, Monthly showcases will indicate successful use of CT, DI, these instructional strategies. GSF, IA Dir. of Fine Arts, Fine Arts Staff North East ISD Budget

45 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: Professional Development 1,2,5,6 Support the New Teacher Quarterly surveys and mentor logs will Induction Program with a indicate 100% of mentors are mentoring program that guides, supporting new teachers as articulated coaches and models professional in the monthly mentoring duties. teaching and learning. Each novice teacher will have a mentor who supports the monthly checklist provided by the mentor teacher. Each campus will have a lead mentor that trains and coordinates the campus mentors. CLP January, May Exec. Dir. and $86,000 Title Dir. of School II A Improvement, Principals, Asst. Principals, Deans of Instruction 1,2,5,6 Provide a Dean of Math, Science, English, and Social Studies at all comprehensive HSs to model, guide and coach core teachers. Four Deans will be identified at each comprehensive HS; ISA will have two Deans. Alignment of the common curriculum will be evident through classroom walkthroughs. Targeted Efforts forms will indicate training, modeling and support with exemplar lessons for the core teachers. Targeted Efforts forms will indicate teacher support for Dean coaching, modeling and professional development. 3TL, CR, AV, AL, CT, DI, GSF, AFL, PGP, CCR, CLP, MCP, IA August - June School Improvement Department for Curriculum Compliance Title II A $241,800 1,2,5,6 Provide supplemental assistance through specialists in the areas of math, science, social studies, ESL, literacy, early childhood education and dual language. Provide a data compliance coordinator part time. Alignment of the common curriculum will be evident through classroom walkthroughs. Targeted Efforts forms will indicate training, modeling and support with exemplar lessons for the core teachers. Targeted Efforts forms will indicate additional teacher growth from assistance by supplemental specialists and coordinator. 3TL, CR, AV, AL, CT, DI, GSF, AFL, PGP, CCR, CLP, MCP, IA August - June School Improvement Department for Curriculum Compliance Title II A $819,137 North East ISD Budget

46 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,2,5,6 Provide supplemental professional development in the core content areas by providing campus-based training and afterhours training. Alignment of the common curriculum will be evident through classroom walkthroughs. Targeted Efforts forms will indicate training, modeling and support with exemplar lessons for the core teachers. Targeted Efforts forms will indicate teacher growth from campus-based professional development. 3TL, CR, AV, AL, CT, DI, GSF, AFL, PGP, CCR, CLP, MCP, IA August - June School Improvement Department for Curriculum Compliance Title II A $332,330 1,2,3,4,5,6,7 Provide one-on-one coaching sessions for campus principals, conduct campus walks, and support interview committees. Principal s evaluation Successful implementation of campus and district goals CLP May August June Exec. Dir. for Campus Administration $6,500 1,2,3,4,5,6,7 1,2,3,4,5,6,7 Provide coaching sessions for campus assistant principals each semester or as needed. Conduct information meeting for individuals who possess an interest in educational leadership. Records/logs of coaching sessions August June Assistant Principal evaluation CLP September May Records and responses of individuals in attendance Exec. Dir. for Campus Administration, CLP October Exec. Dir. for Campus Administration Target Area: Leadership Development 1,2,5,6 Provide the 7 Habits of Highly Successful completion of 7 Habits Effective People training (5 cohorts). training, NPS of 90 or above 1,2,5,6 Provide 8th Habit Leadership training to 4 cohorts (Leadership: Great Leaders, Great Teams, Great Results). 1,2,5,6 Build capacity by coordinating Covey Leadership training, certification, and facilitation. Successful completion of LQ/Survey Successful completion of 8th Habit Leadership training. NPS of 90 or above Completion of certification for new facilitators. Completion of training sessions conducted by certified trainers. NPS of 90 or more. Target Area: Accelerated Education At-Risk 1,5 Allocate teachers and assistants to Monthly monitoring of enrollment reduce student teacher ratio in analysis to ensure student to teacher Pre-K - 5 classes. ratio is lower than state-mandated average. CLP August - June CLP August - June CLP August - June CLP August - May Dir. of Leadership Development Dir. of Leadership Development Dir. of Leadership Development Exec. Dir. for Research and Information Technologies and Curriculum Compliance $10,000 $20,000 $30,000 SCE Funds $381,304 FTE Title II $402,297 North East ISD Budget

47 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,5 Increase affective, cognitive and linguistic proficiencies of the limited English proficient students. 1,5 Personalize strategies developed and implemented in every HS. 100% of the ESL/Bilingual students will pass TAKS in the language in which they were assessed. 100% of the ESL/Bilingual students will show an increase of one proficiency level as determined by the staterequired Reading Proficiency Test in English (RPTE). Student failure rates, attendance, tutoring sessions and benchmark scores will be analyzed and monitored. 1 Provide local credit TAKS success classes in reading and 100% of the targeted students enrolled in TAKS success courses will pass math for students who have failed TAKS. TAKS and are in jeopardy of retention. Provide opportunitites for students to receive credit protection and credit recovery if Reduce disparity in performance on assessment instruments administered between students at risk of dropping out of school and all other students in the four curriculum areas. they failed any nine weeks, the semester or a class. 3 Implement effective parental involvement activities to improve student academic achievement, school performance and attendance. CLP August - June 3TL August - May 1% increase in student attendance 3TL, PI June district wide at the elementary level. 1% increase in parent attendance at school activities at each elementary Title I campus. 3 Provide pregnancy-related School-age parenting students identified services and academic support to and enrolled in the School-Age improve student performance and Parenting Program will receive dropout attendance. intervention. 1 Enroll homeless students immediately and provide academic interventions and campus support to promote student success. Homeless students will access all Title I programs to promote academic success. Students identified as homeless will receive services and academic support as defined in the Public Law McKinney-Vento Homeless Education Assistance Improvements Act of Dir. of ELL Programs, ESL Specialists STAN Counselors, Principals SCE Funds $821, FTE SCE Funds $173,222-3 FTE 3TL May - July Principals, Asst. SCE Funds Principals, Deans $449,424 Title I $100,174 HSA $51,000 3TL June - August GSF June - August Family SCE $942,500 Specialists, HSA $380,000 Principal, Counselor, Exec. Dir. of Curriculum Compliance & Dir. of McKinney - Vento Project Dir. of SCE Funds McKinney - $202,640 Vento Project, 4 FTEs and School Age Parenting Case Manager/Instruc tor Dir. of $50,000 Title I McKinney - Vento Project, and McKinney Family Liaisons North East ISD Budget

48 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1 Provide students with additional instructional time (beyond the required instructional days) to master state content and performance standards (Summer school, SSI Academy, TAKS Success and Credit Recovery). 3 Provide eligible students enrolled in private, nonprofit schools the opportunity to receive services or benefits. 1,6 The district will actively recruit and hire highly qualified teachers. Students will attend a minimum of 90% of the program days and satisfy the requirements for promotion prescribed by Section Quarterly reports provided by Region 20 through a shared services agreement will show required implementation of services. An annual documentation/evaluation report from Region 20 will show progress of the program by campus. Personnel rosters and recruiting records will show personnel interviewed and hired for Title I campuses are fully qualified. 1,2,5 Implement research-based Assess the results of the district AEIS accelerated education programs report. to address the needs of all special 100% of students with special needs will population students, including, pass TAKS. but not limited to, limited English proficient, migrant, students with disabilities and disadvantaged students. Target Area: Special Education 1,2,5 Increase understanding and Increase passing rates and achievement consistent use of of special education students taking accommodations and TAKS/TAKS-A/TAKS-M modifications for both instruction assessments. and assessment as tools to support achievement of special education and dyslexic students served through general education. Training module will provide specific examples of appropriate accommodations at all grade levels. 1,5 Provide training to all campus staff working with special education students in understanding the state and federal accountability system related to decision making around testing of special education students. Increase the number of special education students taking and passing grade level TAKS/TAKS-A/TAKS-M tests. 3TL June - August Summer School Principal, Exec. Dirs. of Curriculum Compliance and School Improvement 3TL July - June Exec. Dir. of Curriculum Compliance, Region 20 Cooperative CLP July - June Exec. Dir. of Human Resources, Principals 3TL September Principals, Exec. Dir. of Curriculum Compliance, Exec. Dir. of School Improvement, Exec. Dir. of Special Education and Coordinators AFL GSF August, October, February October, January, February, April Special Education Directors and program coordinators Exec. Dir. for Special Education, Director, & Special Education Program Coordinators SCE Funds $135,000 Title I Title II A & D Title III Title IV Title I $3,000 for substitutes IDEA-B North East ISD Budget

49 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,2,6 Provide training to all teachers Increase passing rates of included and paraprofessional staff special education students as measured working with students in special from 9 weeks to 9 weeks. education to equip them to differentiate classroom instruction in ways that increase the success of students. Training will address differentiation of process, product and content, including the analysis of lesson plans and strategies that match specific student learning profiles. Training will be done by level - Elementary, MS or HS. CIP October, Exec. Dir. for December, Special March, May Education and Director. Training done by SPED Coordinators - Monitoring done by Campus Principal $3,000 IDEA- B 1,5 Implement efficient and consistent management of required paperwork and tracking of progress for students in special education on all campuses using software tools: Special Education Manager, Review 360, online COR and a district developed Accountability Summary of Support form which is completed as a running record for each SPED student throughout each 9 week reporting period. Program will be implemented on all campuses by all special education staff. Compliance with timelines for annual ARD meetings and evaluations will increase. Compliance with TEA State Performance Plan indicators 11 and 12 for SPED will be at the required level of 100%. GSF Each 9 weeks SPED Director for compliance, SPED Program Coordinators & Secondary Campus Coordinators $16,000 IDEA- B 1,5,6 Implement training on Transition Procedures which meet the requirements of IDEA, 2004 and best practice criteria with all secondary special education staff using a TOT model in which teams are trained on each secondary campus. 1,2,5,6 Develop, provide training on, and implement an intervention model for students experiencing academic and behavior difficulty using the Three-Tier Model of Intervention, which encourages appropriate implementation of interventions prior to considering Special Education or Dyslexia testing and services for the student. Review of special education student folders will indicate appropriate transition plans. Teachers will articulate the relationship of Transition Activities to their daily work with students. Student-led IEP meetings will be implemented with all 6th - 12th graders. State Performance Plan Indicator 13 will be reported to TEA as 100% in compliance. Reduce the number of referrals for testing in Special Education and Dyslexia which do not result in placement. Percentage of district student population identified as special education will continue to decrease to a level recommended by TEA (8.5%). GSF April SPED Director of Instructional Improvement, Secondary Program Coordinators & Campus Coordinators 3TL December, June Exec. Dir. for Special Education & Campus Principals $20,000 IDEA- B $10,000 IDEA- B North East ISD Budget

50 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,2,5,6 Provide training on a continuum Reduce the percentage of special of Positive Behavior Supports for education students served through students with disabilities involving disciplinary alternative education behavioral and/or emotional programs. PBMAS indicators related to disorders. These interventions discipline will reflect that the district may include identification of data is in line with state average data. replacement behaviors, development of effective BIPS, use of Redirection or inclusive support models, or a structuring of more extensive behavioral supports for individual students. CLP Each 9 weeks SPED Director for Instructional Improvement and SPED Program Coordinators $10,000 IDEA- B 1,2,5,6 Support implementation of Percentage of Special Education effective inclusive strategies students earning passing grades in through the training and use of a general education classes will increase staffing model which allows and observations in co-taught classes campuses to make decisions will indicate a variety of models of coteaching in use by staff. about best use of special education staff and by providing training and support of effective strategies for co-teaching, including models that will provide a range of supports in general education to increase the success of included students. 1,2,5,6 Support district CHAMPs Reduce district-wide percentages of initiative through trainings at students assigned to ISS and DAEP district and campus levels, programs and see CHAMPS strategies including the Foundation Schools used in classrooms during observations. pilot and support meetings throughout the year. 1,2,5 Develop curriculum frameworks for all levels of ALE/Specialized Support classrooms which support teachers writing IEPs using grade level TEKS that are aligned with general education curriculum scope and sequence. Target Area: Career & Technology 1,5,6 Expand opportunities for teachers to obtain industry certifications/licenses in order to provide like opportunities for students. Review of IEPs will indicate grade level TEKS reflected in IEPs for students with significant cognitive disabilities, and classroom observations will indicate level of rigor which is differentiated to address the needs of all students. 10% increase of teachers and students obtaining industry certifications and licenses. DI Each 9 weeks CLP December, June DI Each 9 weeks Exec. Dir., Director & Program Coordinators for Special Education Director for Special Education Exec. Dir., Director & Program Coordinators for Special Education $5,000 IDEA- B $25,000 IDEA- B $15,000 IDEA- B for summer curriculum writing GSF May Exec. Dir., $5,000 - cost Director & Asst. of training and Dir. for Career & tests for Technology teachers North East ISD Budget

51 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1 Increase the number of students accessing the Kuder program to research college, career and scholarships opportunities based on assessments. 3 Develop and implement strategies that will foster collaboration among educational agencies, community partnerships, and parents to promote CTE programs. 50% of CTE students will have accessed the Kuder program. Stakeholders will attend meetings with CTE staff to establish goals focusing on long-range planning, TEKS realignment, and evaluation of program resources. 1,5,6 Provide magnet program 100 % of CTE Magnet Directors will directors with leadership, data attend scheduled meetings. analysis, and instructional support to promote student success in each area. 2 Develop and implement safety rules for all CTE facilities and programs. Provide students with a safe learning environment. 1,2,6 Provide CTE teachers training and support, on an individualized and/or group basis, in addressing the instructional needs of special population students. 1,5 Develop and implement a plan to monitor CTE programs to ensure we are addressing the compliance issues in the PBMAS guidelines pertaining to student populations in Career and Technology. 100% CTE teachers will attend safety training sessions and workshops. 100% CTE teachers will attend meetings, training sessions and/or workshops that will provide them with streamlined data that will serve the needs of special populations students. 100% of CTE teachers will attend professional development activities to better serve the needs of special populations students. PGP,C CR, GSS CLP, 3TL CLP, AFL June Each semester Monthly Exec. Dir. and Director for Career & Technology, Director for Guidance and Special Populations Specialist Exec. Dir., Director & Asst. Dir. for Career & Technology, Director for Guidance and Special Populations Specialist CTE Magnet Directors, Dept. Chairs Exec. Dir. and Director for Career & Technology, CTE Magnet Directors MCP Annual Exec. Dir. and Director & Asst. Dir. for Career & Technology, CTE Magnet Directors and Dept. Chairs. AL, CLP, DI Annual Exec. Dir., Director & Asst. Dir. for Career & Technology & Special Populations Specialist GSF Quarterly Exec. Dir. and Director for Career & Technology & Special Populations Specialist $30,000 funded by Perkins North East ISD Budget

52 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1,3 CTE teachers will apply for Adjunct Faculty status and attend college alignment meetings to provide more opportunities for students to earn academic and college dual credit. 1,5,6 Provide opportunities for teachers to receive training in the new CTE TEKS through the TEA Training Modules ,3,5 Provide opportunities for new Dual Credit programs for CTE students. Target Area: Technology Applications 1, 2, 5 Educational Technology staff will meet with Campus Technology Committees (CTC) regularly as determined by Educational Technology Department to identify and support technology professional development needs, technology trainers, and campus infrastructure needs (lab maintenance, troubleshooting procedures, work order system, etc.). The CTC provides and models instructional technology leadership. 10% increase of CTE teachers will obtain adjunct faculty status through ACCD. 100% of CTE teachers will attend professional development activities to implement the new TEKS. 10% increase in dual credit courses for students Campus administrators will monitor progress (through minutes of CTC meetings and Texas STaR Chart data) to ensure the CTC follows the NEISD CTC timeline. ( c/tech_committee.html) CCR, CLP CLP, CCR CCR, CLP June June - August Each semester CLP, Monthly CR, CT, AV, DI Exec. Dir. and Director for Career & Technology & Special Populations Specialist Exec. Dir. and Director for Career & Technology & Special Populations Specialist Exec. Dir. and Director for Career & Technology & Special Populations Specialist Principals, Campus Technology Committee Representatives, Educational Technology Specialists, Coordinators, Asst. Dir., and Director $5,000 - cost of training and travel $2, Title IID North East ISD Budget

53 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 3, 5 Educational Technology staff will support teachers in the utilization of applications such as GradeSpeed to manage grades. In addition, teachers will be provided support in creating and maintaining Teacher Web pages and Web 2.0 tools, such as podcasts, wikis and/or blogs to improve communication with staff, students and parents. 1 Educational Technology staff will provide K-5 teachers and students with keyboarding software, equipment, and professional development to deliver keyboarding instruction and practice. 100% of teachers who report grades will use GradeSpeed to record grades. 100% of teachers who report grades will use GradeSpeed to upload 3, 6 and/or 9-weeks grades as outlined in grading policy. ( adespeed/) 100% of teachers will update essential classroom information as outlined in the teacher Web page template. ( m) 100% of campuses will create and maintain at least one podcast, blog and/or wiki. ( adespeed/) 100% of students will demonstrate mastery of grade level keyboarding proficiencies as assessed by teacher observation (K-2) and proficiency tests (3-5). ( eyboarding/kbprog/) 1 Educational Technology staff will 100% of educators will show progress support educators in the mastery towards mastery of the Foundations, of technology proficiencies as Basic, and Intermediate proficiency outlined in the North East levels of the North East Educator Educator Technology Standards. Technology Standards as measured by ( proficiency tests and PDAS. ch/ed_stds.html) Using the Texas State Technology and Readiness Chart, 100% of teachers will establish and meet three technology proficiency goals that are standardsbased, data-driven, and job-embedded. ( CLP, GSF Daily to weekly Three, six, and nine weeks 3TL, Quarterly CR, AL, DI CLP, Annual 3TL, CR, AL Principals, Asst. Principals, Teachers, Data Processors, Help Desk Staff, Educational Technology Specialists, Coordinators, Assistant Directors, and Director $36, Bond Principals, Asst. $1,335, Principals, Bond & Title Teachers, Data IID Processors, Help Desk Staff, Educational Technology Specialists, Coordinators, Asst. Dir., and Director Principals, Asst. Principals, Teachers, Educational Technology Specialists, Coordinators, Asst. Dir., and Director $75, Bond North East ISD Budget

54 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 1, 4 Educational Technology staff will support teachers in the utilization of the North East Technology Applications Student Standards to assess mastery of essential knowledge and skills ( ch/tech_apps.html) and the expectations of the State Board of Educator Certification. 1, 4 Educational Technology staff will support teachers and students in the utilization of classroom computers, computer labs, portable keyboards, and other technologies on a regular basis to integrate Technology Applications Standards into the content areas. 100% of students will demonstrate mastery of grade-level technology standards as measured by student products. 100% of 8th grade students will demonstrate mastery of grade level technology standards as measured by an online assessment. 100% of classroom teachers and administrators will use the Texas STaR Chart for planning, instruction, reflection, walk-throughs, and observations. 100% of Elementary classroom teachers will ensure students use technology tools appropriate for the task a minimum of 9 hours during each 9- week grading period as evidenced by lesson plans correlated to content-area TEKS and Technology Applications Standards, lab schedules, and student products. CLP, Quarterly 3TL, CR, AL AV, Quarterly 3TL, CR, AL, CT, DI Principals, Asst. Prin., Teachers, School Improvement Specialists and Coordinators, Educational Technology Specialists, Coordinators, Asst. Dir. and Director Principals, Asst. Principals, Teachers, School Improvement Specialists and Coordinators, Educational Technology Specialists, Coordinators, Asst. Dir. and Director $1,714,673 State Technology Allotment & Title IID $1, State Technology Allotment, Local, & Title IID 100% of middle and HS core content teachers will ensure students use technology tools appropriate for the task a minimum of four class periods each semester as evidenced by lesson plans correlated to Content Area TEKS and Technology Applications Standards, lab schedules, and student products. 1, 4 Educational Technology staff will support all content- area curriculum by modeling the inclusion of Technology Applications Standards within the context of instruction. In addition, staff will support the efforts of teachers to differentiate instruction and meet accommodations, using strategies to incorporate technology where appropriate. 100% of classroom teachers will integrate technology within the context of content-area instruction. Content TEKS and Technology Applications TEKS are available through online resources and include special education accommodations, differentiation strategies, and bilingual/esl strategies. AV 3TL CR AL CT DI Quarterly Academic and $27, Instructional Bond & Title Deans, Teachers, IID Librarians, Instructional Division Specialists and Coordinators, and Educational Technology Asst. Dir. and Director North East ISD Budget

55 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: Safe and Drug-Free Schools and Communities 2,3,4,7 All campus plans will include Safe Review of campus plans will indicate and Drug-Free Schools program 100% compliance with Safe and Drugefforts, including goals and Free mandates, including the six areas: strategies for substance abuse and 1. Reduction in the use of tobacco, violence prevention and alcohol and other drugs among students intervention on campus 2. Reduction in incidents of violence addressing the following six areas: and improvement in school safety 1. Reduce the use of tobacco, 3.Increased awareness of suicide alcohol and other drugs among prevention and following the NEISD students Suicide Prevention policy 2. Reduce incidents of violence 4. Increased parental and community and improve school safety involvement in violence and drug through conflict resolution prevention activities training and implementation 5. Increased student involvement in 3. Increase awareness of suicide school activities prevention and following the 6. Increased awareness and prevention NEISD Suicide Prevention policy efforts related to teen dating violence 4. Increase parental and and development of a dating violence community involvement in prevention plan (secondary level) violence and drug prevention activities 5. Increase student involvement in school activities 6. Increase awareness and prevention efforts related to teen dating violence by implementing HB 121 and developing a dating violence policy GSF, PI June Principals, STAN Counselors, SDFS Campus Contacts, Exec. Dir., SDFSC Director & Specialists of Student Support Services, Secondary Asst. Prin. and Secondary Campus Police Officers 2,3,4,7 Complete the Annual Title IV, Safe and Drug-Free Schools and Communities Evaluation Report. District reduction in incidents of violence and drug use as indicated in the following sources: * Drug, Alcohol and Violence Report from Pupil Personnel Services * STAN Quantifiable Measures Report * Positive Mediation Reports by campus * PAL Six Weeks Training and Service Reports, Safe School Ambassador Surveys, training evaluations GSF, CT September - Director of May SDFSC, SDFSC Campus Contacts, STAN Counselors, PAL Teachers, Principals, Exec. Dir., (omit- Coordinator) and Specialists of Student Support Services North East ISD Budget

56 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 2,3,4,7 Using information from needs assessment, provide professional development opportunities for STAN Counselors, PAL/Peace teachers and SDFS Campus Contacts. Using information from needs assessment, provide professional development opportunities for administrators, counselors and teachers. Professional development evaluations will indicate Exceeds Expectations in 95% of the responses. Professional development surveys will indicate 100% of participants utilized information in current position. GSF, CT Monthly Director of SDFSC, STAN Counselors, SDFSC Campus Contacts, PAL Teachers, Principals, Exec. Dir., and Specialists of Special Programs $20,000 Target Area: Guidance 1,2,3,4 Continue state-mandated,7 comprehensive developmental guidance program (TEC ). 1,2,3,4,7 1,2,3,4,5,7 1,2,3,4,5,7 Develop yearly campus guidance plans supporting appropriate counselor time spent in the four guidance components: guidance curriculum, responsive services, individual planning and system support. Implement and evaluate campus guidance programs to ensure alignment with the TEA guidance program framework. Increase time in counselor role and guidance program components. 100% of guidance counselors and counselor supervisors will receive training to include expectations, evaluations, guidance program. 100% of campus guidance departments will develop yearly plans which incorporate level-appropriate activities in the four guidance components: guidance curriculum, individual planning, responsive services, and system support. 100% of campuses will submit yearly guidance plans, program improvement plans, and individual professional development goals to the Director for Guidance Services, who will evaluate progress bi-annually. 100% of guidance counselors will meet to plan strategies to decrease the amount of time spent in non-guidance activities as defined by the statemandated comprehensive developmental guidance program. GSF June - August GSF August - May Counselors, Counselor Supervisors, and Director of Guidance Counselors, Guidance Leadership Team, Director of Guidance GSF June Counselors, Principals, Director of Guidance GSF August - June Counselors, Principals, Director of Guidance North East ISD Budget

57 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources Target Area: Health Services 2,3,4,5,7 Each campus will demonstrate inclusion of the eight components of a coordinated school health program: 1) Health education teaches physical, mental, emotional, and social topics 2) Physical education supports physical activity and cardiovascular fitness 3) Health services provides prevention, early intervention, and management of acute and chronic health conditions 4) Nutrition services offers nutritious meals and an environment that promotes healthy food choices and support for nutrition education 5) Counseling, psychological, and social services provide consultation and other assistance 6) A healthy environment promotes positive physical, social, and emotional climate 7) Staff health promotion helps staff maintain their health and act as healthy role models 8) Family and community involvement promotes partnerships that maximize resources and expertise 2,3,4,7 School nurses will provide and support a safe and nurturing learning environment by promoting healthy lifestyles and disease prevention, complying with Texas immunization laws, implementing health-related guidelines and procedures, assisting with the development and implementation of IEPs, and assisting with monitoring the school environment for safety. Review of campus plans, health/wellness initiatives, and findings from School Health Index (even numbered years) on each campus will indicate all components are being addressed and promoted. District Wellness Plan Goals are achieved. Health Services will review monthly reports and TDSHS annual immunization report and vision, hearing, spinal, and acanthosis nigricans screening reports. Monitor campus/cluster-based health initiatives. Review accident/injury reports. Track current health-related trends. District Wellness Plan goals are achieved. AL, CT, GSF, IA GSF, IA, HW School year Dir. of Health Services, Exec. Dir. of School Nutrition Services, Exec. Dir., Safe and Healthy Schools, Exec. Dir., Facilities Maintenance, Health/PE Coordinator, Dir. of Guidance and Counseling, Principals, Campus Nurses, Flex Nurses, Counselors, Health Teachers, Family Specialists, PE Teachers/Coach es, Cafeteria Managers, Parents/Families, School Health Advisory Council Monthly, annually and as needed Director of Health Services Campus/Flex nurses North East ISD Budget

58 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 2,3,4,7 Campus and flex nurses will Monitor monthly reports, conduct provide the crucial link between campus visits, review of student/clinic student health and academic referrals and staff meetings. success by conducting health District Wellness Plan goals are assessments, providing preventive achieved. care, minimizing student risktaking behaviors, providing first aid for injured and ill students, developing Individualized Health Plans (IHPs) to benefit students with acute and chronic health needs, providing communicable disease surveillance, providing individual and group health education, creating programs and strategies to promote healthful living, offering parent-nurse conferences, providing families with referral information, monitoring results of treatments and interventions, and working closely with campus staff to ensure student health needs are met and goals are achieved. AL, CT, GSF, IA, HW Monthly, annually and as needed Director of Health Services, Campus/Flex Nurses, Special Education Campus Coordinators, Family Specialists, Counselors, Faculty/Staff 2,3,4,7 Collaborate with Family Specialists, campus counselors, local health care providers, and local/state/federal agencies to secure health-related resources (glasses, hearing aids, medical care, dental care, immunizations, prescription medication assistance) for uninsured/underinsured students to facilitate improved attendance and academic success. 2,3,4,7 Provide accurate, current, concise health-related information to parents and community members through PTA meetings and newsletters, HEALS Committee activities, campus/cluster activities, and campus nurse/district Health Services Web sites. Improved student attendance and academic performance in target population Campus nurses and Health Services representatives will collaborate with principal and PTA officers to provide health information. AL, CT, GSF, IA, HW July-June PI, HW Monthly Dir. of Health Services, Campus/Flex Nurses, Family Specialists, Counselors, Teachers Dir. of Health Services, Campus/Flex nurses, Principals, PTA officers North East ISD Budget

59 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 2,3,4,5,6,7 Develop and implement 3-4 professional development days for campus nurses, flex nurses, and substitute nurses each school year. Professional development/inservice programs will be conducted on District staff work days. Program evaluations will reflect a score of 3 or above. Target Area: Discipline Management 2,5 Provide and encourage campus administrators to use the on-line attendance and discipline applications for their campuses. Campus administrators will monitor misbehavior trends to determine needs of students in better self-management. HW CT, MPC August, October, February August- June Dir. of Health Services Ex. Dir. Student Support Services, Campus Principals $ estimated cost for printing materials, speakers and other supplies as needed. 2,6 Provide training and motivation of school personnel for BMP implementation. Each campus will continue with needed training for existing and new staff members for implementation of the BMP and character education module. MCP August Campus Principals $1000 per campus 2,4,7 Review District Discipline Procedures K-12 and make changes to improve discipline process. Changes to discipline procedures and alternative techniques will be presented at August Leadership and at other times during the year as needed. Significant reduction in number of students expelled to JJAEP and assigned to District DAEP's. MCP, CLP August- June Target Area: Student Support Services - Dropout/Leaver/Prevention/Retention 3,5 Provide continuous support and training for campus personnel involved in the Leaver/ Training provided during leadership, mid-year and end of year while conducting site training and one-on-one Withdrawal Process. support as appropriate Success will be measured on error rate compared before and after campus-based audits. Exec. Dir., Dir. of Student Support Services, Hearing Officers CLP Full Year Dropout Leaver Coordinator, Data Processors, Campus Dropout Coordinators 3,5 Conduct campus leaver audits and confer with campus Dropout Coordinators regarding errors while providing additional direction as needed. Results of three campus-based audits conducted by principal and Campus Dropout Coordinator. Results of spot audits conducted by District Dropout Coordinator. CLP Full Year Dropout Leaver Coordinator, Data Processors, Campus Dropout Coordinators 3,4 Provide, thorough examination of all dropouts trends, programs serving at risk populations and the formulation of a multi-tiered prevention strategy. Expand and develop relevant programs that will decrease the actual number of "98" coded students. Measureable goals will include program enrollment, leaver status and graduation/ leaver rates. 3TL, IA Full Year Dropout Leaver Coordinator, Data Processors, Campus Dropout Coordinators North East ISD Budget

60 District Instructional Improvement Plan BGs Action Strategies Evaluation Indicators SCSs Timeline Responsible Person(s) Cost / Resources 3,4 Investigate innovative dropout Longitudinal Completion rates, Annual prevention strategies that assist in Dropout Rate. retaining and preventing student dropouts and increase changes for student achievement. CLP Full Year Dropout Leaver Coordinator, Data Processors, Campus Dropout Coordinators Target Area: Physical Education/Health - FITNESSGRAM 1,2,3,7 Provide campuses with inservices End of year FITNESSGRAM PACER and statistical reports to assist in report improving their percentage of students reaching the Healthy Fitness Zone for the FITNESSGRAM PACER. PI, HW August - May Asst. Director of PE/Health, Testing and Assessment Specialist, Campus Principals, Campus PE Coordinators and PE Teachers North East ISD Budget

61 District-wide Organizational Chart North East ISD Community Board of Trustees Director Internal Audit Superintendent Associate Superintendent Business Svcs & Operations Associate Superintendent Campus Support & Human Resources Associate Superintendent Instruction & Technology Executive Director Communication Svcs Executive Administrator to the Superintendent Executive Director School Nutrition Svcs Executive Director Facility Maintenance Executive Director Transportation Executive Director Construction Mgmt & Engineering Police Chief Executive Director Safety Executive Director Finance & Accounting Svcs Executive Director Procurement & ecommerce Executive Director Risk Mgmt Employee Benefits & Health Svcs Executive Director Student Support Svcs Executive Director Athletics Executive Director Fine Arts & Student Activities Principals Executive Director Elementary School Admin Executive Director Middle School Admin Executive Director High School Admin Executive Director Human Resources Executive Director Curriculum Compliance Executive Director Special Education Executive Director Research & Information Technologies Executive Director School Improvement Executive Director Management Information Systems North East ISD Budget

62 Division of Businesss Services and Operations Associate Superintenden Business Svcs & Operations Executive Director Finance & Accounting Svcs Sr Director Budgets & Financial Analysis Sr Director Accounting Svcs Police Chief Captain Executive Director School Nutrition Svcs Area Supervisors Warehouse Supervisor Executive Director Maintenance Director Facility Support Director Facility Maintenance Executive Director Transportation Director Executive Director Constructionn Mgmt & Engineering Sr Director Planning & Design Sr Director Construction Mgmt Executive Director Safety Safety Manager Executive Director Procurement & ecommerce Director Document Mgmt Asst Director Executive Director Risk Mgmt Employee Benefits & Health Svcs Director Risk Mgmt Director Health Svcs Director Grants Admin & Financial Control Sr Director Engineering North East ISD Budget

63 Division of Campus Support and Human Resources Associate Superintendent Campus Support & Human Resources Executive Director Athletics Principals Executive Director Student Support Svcs Executive Directorr Fine Arts & Studentt Activities Executive Director ES Admin Executive Director MS Admin Executive Director HS Admin Executive Director Human Resources Asst Athletic Directors (4) Asst Principals Director Director Visual Arts Sr Director Asst Director PE/Health Director Music Director Classified Directors (2) Certified Directorr Staff Development Directorr North East ISD Budget

64 Division of Instruction & Technology Associate Superintendent Instruction & Technology Executive Director Special Education Executive Director Curriculum Compliance Executive Director Research & Information Technologies Executive Director School Improvement Executive Director Management Information Systems Directors (3) Special Education Directorr Curriculum Compliance Director Planning Director School Improvement Sr Directorr Data Processing Directorr ELL Sr Directorr Research Director Library Svcs Sr Directorr Network Technology Svcs Directorr Guidance Svcs Director Instructional Technology Director Career & Technology North East ISD Budget

65 Financial Structure The District s accounts are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of selfbalancing accounts which are comprised of each fund s assets, liabilities, equity, revenues, and expenditures or expenses. Fund Types Governmental Funds consist of four governmental fund groups (General, Debt Service, Capital Projects and Special Revenue) that account for the acquisition, use and balances of expendable financial resources and related liabilities as required by law or rule. General Fund The General Fund is used to account for financial resources used for general operations. It is the basic fund of the school system and covers all activities for which a special fund has not been established. Any fund balances are considered resources available for current operations. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Debt Service Fund This fund is used to account for the payment of principal and interest on longterm general obligation debt of the District. The main source of revenue for debt service is the apportionment of local property taxes. Capital Projects Fund The proceeds from longterm debt financing and revenues and expenditures related to authorized construction and other capital asset acquisitions are accounted for in a capital projects fund. Special Revenue Funds These funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of specified project periods. Proprietary Funds are used to account for a school district s on-going organizations and activities where net income and capital maintenance are measured. All related assets, liabilities, equities, revenues, expenses, non-operating revenues and expenses, and transfers are accounted for through the fund. Proprietary funds consist of Enterprise and Internal Service Funds. Enterprise Funds These funds are used to account for operations financed and operated in a manner similar to private business enterprises, where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds These funds are conceived to be self-supporting. Revenues are earned mainly from sales of services to the schools and operating departments of the District. Fiduciary Funds are used to account for assets held by a school district in a trustee capacity, or as an agent for individuals, private organizations, and other governmental units. North East ISD s Fiduciary Funds are limited to Agency Funds used to account for resources held in a custodial capacity for student group activities. Budget Requirements within the Fund Types Budgets for the General Fund, the Debt Service Fund and the School Nutrition Services Fund (a Special Revenue Fund) are approved annually by the Board of Trustees and included in the official district budget. The budgets for the three appropriated funds are presented in this document in total and individually. In addition, the Capital Projects Fund, although not an appropriated fund, is considered a major fund of the District. The budgets for Special Revenue Funds (other than School Nutrition Services) and Proprietary Funds do not require approval of the Board of Trustees. Fiduciary funds are not budgeted. North East ISD Budget

66 Fund Structure Diagrams All Funds Governmental Funds Proprietary Funds Fiduciary Funds General Fund Non-Major Governmental Funds Internal Service Funds Agency Funds Special Revenue Funds (Includes School Nutrition) Enterprise Funds Debt Service Fund Capital Project Funds Appropriated Funds Governmental Funds General Fund School Nutrition Services Fund Debt Service Fund Note: The Texas Education Agency only requires budget adoption for the General Fund, School Nutrition Services Fund, and Debt Service Fund. The other funds listed under All Funds do not have budgets officially adopted by the Board of Trustees. They are presented for informational purposes only. North East ISD Budget

67 Basis of Budgeting The Texas Education Agency prescribes that the basis of budgeting follows the basis of accounting used in the Fund Financial Statements of the District s Comprehensive Annual Financial Report. No budget adjustments or provisions are made for the differences between Government-Wide and Fund Financial Statements. Basis of Accounting Governmental Funds use the modified accrual basis of accounting. The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available, and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest and principal on long-term debt, which is recognized when due. The District considers all revenues available if they are collectible within 60 days after year end. Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues received from the State are recognized under the susceptible-to-accrual concept. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. accounting period in which they are incurred and become measurable. Agency Funds utilize the accrual basis of accounting. Exceptions and Items of Note In all fund types, Other Financing Sources are included in revenue and Other Financing Uses are included as expenditures/expenses for budgetary presentations. To maintain comparability across fiscal years, the Texas Education Agency requires districts to adopt their General Fund budget inclusive of amounts provided through the State Fiscal Stabilization Fund (SFSF) portion of the American Recovery and Reinvestment Act. The SFSF is reclassified into a special revenue fund for reporting of actual activity in the Comprehensive Annual Financial Report. For comparability between budget and actual amounts, the SFSF is included in the General Fund in all relevant reports in this Budget Book. To ensure consistency of budgetary and actual financial data, revenue and expenditures equal to the amount paid by the State of Texas to the Teacher Retirement System of Texas on-behalf of the District for retirement and fringe benefits are included in the budgets of all appropriate funds, despite no actual financial resources flowing in or out of the District. The Texas Education Agency considers these as operating revenue and expenditures/expenses in all state reporting and when determining compliance with functional expenditure mandates. Grant (Special Revenue) fund revenues are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related and authorized expenditures have been made. Proprietary Funds utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they are earned and become measurable and expenses in the North East ISD Budget

68 Classification of Revenue & Expenditures Section of the Texas Education Code (TEC) requires that a standard school district fiscal accounting system be adopted by all school districts. This TEC section further requires that a report be provided at the time that the school district budget is filed, showing financial information sufficient to enable the State Board of Education to monitor the funding process and to determine educational system costs by school district, campus, and program. The code structure is established for school districts by the Texas Education Agency in the Financial Accountability System Resource Guide. Although certain codes within the structure may be used at local option, the sequence of the codes within the structure, and the funds and chart of accounts, are to be uniformly used by all school districts in accordance with GAAP and State regulations. Basic Code Composition 1. Fund Code A mandatory 3-digit code is to be used for all financial transactions to identify the fund group and specific funds. The first digit refers to the fund group, and the second and third digits specify the fund. 2. Function Code A mandatory 2-digit code that identifies the purpose of the transaction as applied to expenditures. The first digit identifies the major service area and the second digit refers to the specific function within the area. 3. Object Code A mandatory 4-digit code identifying the nature and object of the account, a transaction, or a source. The first of the four digits identifies the type of account or transaction, the second digit identifies the major area, and the third and fourth digits provide further sub-classifications. 4. Sub-Object Optional code. Used at NEISD to provide special accountability for certain programs or areas. 5. Organization Code A mandatory 3-digit code identifying the organization, i.e., campus, department. 6. Fiscal Year Code A mandatory single digit code that identifies the fiscal year of the transaction, or the project year of inception of a grant project. 7. Program Intent Code A mandatory 2-digit code used to designate services provided to students. 8. Optional Code 3, 4, 5 Optional code that may be used further to describe the transaction. Revenue Classification Revenue is classified using the 4-digit Object Code. The following is a description of the major revenue classifications used throughout this document Revenues from Local and Intermediate Sources Local Real and Personal Property Taxes 5720 Services Rendered to Other Districts 5730 Tuition and Fees 5740 Other Revenues from Local Sources 5750 Revenue from Cocurricular, Enterprising Services or Activities Revenues from Intermediate Sources 5800 State Program Revenues 5810 Per Capita and Foundation Program Revenues 5820 State Revenues Distributed by TEA 5830 Revenues from Other State Agencies 5840 State Shared Service Arrangements 5900 Federal Program Revenues 5910 Federal Revenue Distributed by Agency Other than Texas Agency 5920 Federal Revenue Distributed by TEA 5930 Federal Revenue Distributed by Texas Agency Other than TEA 5940 Revenue Directly From Federal Government 5950 Federal Shared Service Arrangements Expenditure Classification Expenditures are classified using the 2-digit Function Code and the 4-digit Object Code. The expenditure budget must be adopted by Function Code. The function identifies the purpose of the expenditure, and the object identifies the nature of the expenditure. Each is equally important and necessary North East ISD Budget

69 for communicating the use of the District s funds. In this document, expenditures in Governmental Funds are shown both by function and by object. The following is a description of the expenditure function codes used throughout this document. Given the unique use of these function codes in an education finance setting, a detail description of each is presented. 10 Instruction and Instruction Related 11 Instruction -- Used for activities that deal directly with the interaction between teachers and students, including expenditures for direct classroom instruction and other activities that deliver, enhance, or direct the delivery of learning situations to students. 12 Instructional Resources and Media -- Used for expenditures that are directly and exclusively used for a resource center, establishing and maintaining libraries, and other major facilities dealing with educational resources and media. 13 Curriculum Development and Instructional Staff Development -- Used for expenditures that are directly and exclusively used to aid instructional staff in planning, developing, and evaluating the process of providing learning experiences for students. This function also includes expenditures related to instructional research and development activities. 20 Instruction and School Leadership 21 Instructional Leadership -- Encompasses those activities that have as their purpose managing, directing, and supervising the general and specific instructional programs and activities. 23 School Leadership -- Includes expenses for directing, managing, and supervising a school. It includes salaries and supplies for the principal, assistant principal, and other administrative and clerical staff. 30 Student Support Services 31 Guidance, Counseling, and Evaluation Services -- Includes expenses for testing and assessing students abilities, aptitudes, and interests with respect to career and educational goals and opportunities. It includes psychological services, testing, and counseling. 32 Social Work Services -- Includes expenditures which directly and exclusively promote and improve school attendance. Examples include visiting teachers, home visitor aides, and truant officers. 33 Health Services -- Embraces the area of responsibility providing health services, which are not a part of direct instruction, including medical, dental, and nursing. 34 Student Transportation -- Includes the cost of providing management and operational services for transporting students to and from school. 35 Food Services -- Includes management of the food service programs at the schools and the serving of meals, lunches, or snacks in connection with school related activities. 36 Extracurricular Activities -- Incorporates those activities which are student and curricular related, but which are not necessary to regular instructional services, such as football, baseball, etc. and the related activities (drill team, cheer). 40 Administrative Support Services 41 General Administration -- Includes expenses incurred for the overall administrative responsibilities of the school district. It includes expenses for the school board, superintendent s office, human resources, and other administrative personnel. 50 Support Services Non-Student Based 51 Facility Maintenance and Operations -- Deals with expenditures made to keep buildings, grounds, and equipment safe for use and in efficient working condition. Examples include janitors, facility insurance premiums, and utilities. 52 Security and Monitoring Services -- Used for expenditures that are for activities to keep student and staff surroundings safe, whether in transit to or from school, on a campus, or participating in schoolsponsored events at another location. 53 Data Processing Services -- Includes noninstructional data processing services such as computer facilities management, North East ISD Budget

70 computer processing, systems development, analysis, and design. 60 Ancillary Services 61 Community Services -- Encompasses all other activities of the school district that are designed to provide a service or benefit to the community as a whole or portion of the community, such as recreation programs, public libraries, and parenting programs. 70 Debt Service 71 Debt Service -- Includes expenditures for bond and lease purchase principal, and all types of interest paid. 80 Capital Outlay 81 Facility Acquisition and Construction -- Includes the acquisition of land and buildings, the remodeling of buildings and additions to buildings, and installation and extension of service systems and other builtin systems. 90 Intergovernmental Charges 93 Payments to Fiscal Agent/Member Districts of a Shared Services Arrangement -- Includes expenditures for payments from a member district to a fiscal agent of a shared services arrangement, or from a fiscal agent to a member district of a shared services arrangement. 95 Payments to Juvenile Justice Alternative Education Programs (JJAEP) -- Used for expenditures that are for the purpose of providing financial resources for JJAEPs under Chapter 37, TEC. This function code is used to account for payments to other governmental entities in connection with students that are placed in discretionary or mandatory JJAEP settings. 99 Other Intergovernmental Charges -- Includes amounts paid to county appraisal districts for appraisals of property. The following is a description of the major expenditure object codes used throughout this document Support Personnel 6130 Employee Allowances 6140 Employee Benefits 6200 Professional and Contracted Services 6210 Professional Services 6220 Tuition and Transfer Payments 6230 Education Service Center Services 6240 Contracted Maintenance & Repairs 6250 Utilities 6260 Rentals Operating Leases 6290 Miscellaneous Contracted Services 6300 Supplies and Materials 6310 Maintenance & Operations Supplies & Materials 6320 Textbooks and Reading Materials 6330 Testing Materials 6340 Food Service Materials 6390 General Supplies and Materials 6400 Other Operating Expenditures 6410 Travel 6420 Insurance and Bonding Costs 6430 Elections Costs 6440 Depreciation (Proprietary Funds) 6490 Miscellaneous Operating Costs 6500 Debt Service (Debt Service Fund) 6510 Debt Principal 6520 Interest 6590 Other Debt Service Costs 6600 Capital Outlay (Governmental Funds) 6610 Land Purchase and Improvements 6620 Building Purchase, Construction, or Improvements 6630 Capitalizable Equipment 6650 Fixed Assets under Capital Leases Other Resources & Non-Operating Revenue / Other Uses & Non-Operating Expenditures 7910 Other Resources/Non-Operating (Governmental Funds) 7950 Other Resources/Non-Operating (Proprietary Funds) 8910 Other Uses 6100 Payroll Costs 6110 Teachers and Other Professional Personnel North East ISD Budget

71 Financial Policies The majority of the financial policies of North East ISD are established in the Financial Accountability System Resource Guide (FASRG), published by the Texas Education Agency (TEA). The FASRG is law, adopted by reference in the Texas Administrative Code (19TAC, Part 2C, ) However, if these legal requirements conflict with Generally Accepted Accounting Principles (GAAP), GAAP prevails, and supplementary information is prepared as necessary to satisfy legal compliance. Accounting Policies Fund Accounting - The accounting system shall be organized and operated on a fund basis. All funds of school districts shall be accounted for and included on the end-of-year combined balance sheet. Central Accounting - Accounting for public funds of independent school districts shall be on an organization-wide basis covering all funds. Governmental, proprietary and fiduciary fund types shall be the accounting responsibility of a centralized unit or office within the organizational structure of a school district. Capital Assets - Capital assets shall be accounted for at historical cost (which includes any ancillary charges necessary to place in its location and condition for use). Donated capital assets shall be recorded at their estimated fair value at the time received. Capital assets shall include land, buildings, improvements other than buildings, vehicles, machinery, infrastructure, works of art and historical treasures, furniture and equipment that: Are not consumed as a result of use. Have a useful life of at least one year and a perunit cost of $5,000 or more. Can be controllable, identified by a permanent or assigned number or label, and be reasonably accounted for through a fiscal inventory system. Groups of like items may be included in the inventory system. Depreciation - Depreciation of capital assets should be over their estimated useful lives unless they are either inexhaustible or are infrastructure assets using the modified approach. Depreciation of capital assets should be reported in the government-wide statement of activities; the proprietary fund statement of revenues, expenses, and changes in fund net assets; and the statement of changes in fiduciary net assets. Uniform Classifications and Terminology - Fund codes, mandatory account classifications and terminology prescribed in the Account Code section of this module of the Resource Guide shall be used by school districts. General ledger accounts prescribing a double entry system and distribution of related payroll expenses with payroll shall be uniformly used throughout the budgeting, accounting and financial reporting system. A school district accounting system shall use the accounting code structure presented in the Account Code section of the Resource Guide. Funds shall be classified and identified on required financial statements by the same code number and terminology provided in the Account Code section of the Resource Guide. Revenues shall be recorded on a gross basis and shall be classified by fund, source (object code), fiscal year and where fiscal integrity (separate accountability) is necessary, by program and/or project. Expenditures or expenses shall be classified by fund, function, object, organization, program intent and fiscal year. Special Revenue Fund programs requiring project accountability are to be identified by project through the use of the fiscal year code. Once the fiscal year code has been assigned a project, it shall remain with the project until its termination, regardless of the fiscal year in which termination occurs. Project accountability is a requirement for most federal projects; however, it rarely applies to state grants. Interfund transfers and proceeds from notes or other indebtedness shall be classified separately from and not recorded as fund revenues and expenditures or expenses. o Interfund transactions (except loans or advances, interfund service provided and used transactions and reimbursements) shall be accounted for as interfund transfers. Interfund transfers shall consist of transfers North East ISD Budget

72 which are nonrecurring or non-routine transfers of equity between funds. o Interfund service provided and used transactions and reimbursements shall not be accounted for as interfund transfers, but shall be appropriately accounted for as fund revenues, expenditures or expenses, or adjustments thereto. An example is a billing to the General Fund by the Internal Service Fund, thus constituting an expenditure for the General Fund and a revenue for the Internal Service Fund. Reimbursements shall be recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. Accounting Alternatives - The accounting system shall allow certain flexibility in the recognition of relatively minor amounts of certain revenues and expenditures. Application of alternatives in accounting methods shall be consistently applied from accounting period to accounting period. Monies collected in advance and the property tax levy recorded in the school district s opening budget entries that will ultimately be recognized as revenues shall be recorded as deferred revenues, and at the appropriate time shall be recognized as revenues of the accounting period to which they apply Inventory items of materials, supplies, etc., may be considered expenditures/expenses either when purchased (purchases method) or when used (consumption method), but significant amounts of inventory shall be reported on the balance sheet Expenditures/expenses for insurance and similar services extending over more than one accounting period need not be allocated between or among accounting periods, but may be accounted for as expenditures/expenses of the period of acquisition Financial Reporting Policies The financial reporting objectives identified in GASB Concept Statement No. 1 are to be used as a framework for establishing accounting and reporting standards for both the fund financial statements and government-wide financial statements. Financial reporting should primarily assist: In fulfilling government s duty to be publicly accountable and should enable users to assess that accountability Users in evaluating the operating results of the governmental entity for the year Users in assessing the level of services that can be provided by the governmental entity and its ability to meet its obligations as they become due. The following reports are required to be submitted to TEA: Annual Financial and Compliance Report, or modified CAFR Report to management or other similarly named correspondence from the school district s independent auditor issued during the annual financial audit Public Education Information Management System (PEIMS) and other reports as required by individual TEA divisions The minimum requirements for general purpose external financial reporting are: Management s Discussion & Analysis (MD&A) as Required Supplementary Information (RSI) Basic Financial Statements o Government-Wide Financial Statements o Fund Financial Statements o Notes to Financial Statements Required Supplementary Information other than MD&A Budgeting Policies Budgetary Objectives - The Texas Education Agency has identified the following budget objectives, adopted from the Governmental Accounting Standards Board (GASB) Concepts Statement No. 1. Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services. Financial reporting should demonstrate whether resources were obtained and used in accordance with the entity s legally adopted budget. It should also demonstrate compliance with other financerelated legal or contractual requirements. North East ISD Budget

73 Financial reporting should provide information to assist users in assessing the service efforts, costs and accomplishments of the governmental entity. Meeting these objectives requires budget preparation to include several concepts recognizing accountability. Often these concepts have been mandated for state and local public sector budgets. They include requirements that budgets should: Be balanced so that current revenues are sufficient to pay for current services. Be prepared in accordance with all applicable federal, state, and local legal mandates and requirements. Provide a basis for the evaluation of a government s service efforts, costs and accomplishments. Although the objective of balanced budgets is generally applicable to all school districts to ensure long-term fiscal health, variations of this objective which are considered appropriate for some school districts over short-term periods are available. For example, the balanced budget objective may be met through the use of fund balance reserves to pay for current services during certain periods. Encumbrance Accounting - To control budgeted fund commitments as a result of unperformed executory contracts for goods or services, the accounting system shall employ a method of encumbrance accounting. Encumbrances shall be documented by contracts, purchase orders, or other evidence showing binding commitments for goods or services. Encumbrances outstanding at year end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year end are completed. Appropriations lapse at year end. A school district may intend to honor the encumbrance contracts in progress at year end (unless prohibited to do so by law or program regulations) or to cancel them. If there is intent and legal authorization to honor them, encumbrances outstanding at year end shall be a reservation of fund balance, and the subsequent year s appropriations shall provide the authority to complete these transactions. Additional Local Policy In addition to the policies developed by the TEA, the District adopted Policy CE (Local) regarding the annual operating budget. The District shall operate on a fiscal year beginning July 1 and ending June 30. Budget planning shall be an integral part of overall program planning so that the budget effectively reflects the District s programs and activities and provides the resources to implement them. In the budget planning process, general educational goals, specific program goals, and alternatives for achieving program goals shall be considered, as well as input from the District- and campus-level planning and decision-making committees. Budget planning and evaluation are continuous processes and shall be a part of each month s activities. The annual public meeting to discuss the proposed budget and tax rate shall be conducted as follows: 1. The Board President shall request at the beginning of the meeting that all persons who desire to speak on the proposed budget and/or tax rate sign up on the sheet provided. 2. Prior to the beginning of the meeting, the Board may establish time limits for speakers. 3. Speakers shall confine their remarks to the appropriation of funds as contained in the proposed budget and/or the tax rate. 4. No officer or employee of the District shall be required to respond to questions from speakers at the meeting. The adopted budget provides authority to expend funds for the purposes indicated and in accordance with state law, Board policy, and the District s approved purchasing procedures. The expenditure of funds shall be under the direction of the Superintendent or designee who shall ensure that funds are expended in accordance with the adopted budget. The Board shall amend the budget when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources. The budget shall be amended when a change is made in the fund balance. North East ISD Budget

74 Cash & Investment Policies Legal Framework - All investments made by the District shall comply with the Public Funds Investment Act (Texas Government Code Chapter 2256, Subchapter A) and all federal, state, and local statutes, rules or regulations. Investments shall be made in accordance with written policies approved by the Board. The investment policies must primarily emphasize safety of principal and liquidity and must address investment diversification, yield, and maturity and the quality and capability of investment management. The Board shall review its investment policy and investment strategies not less than annually. The Board shall adopt a written instrument stating that it has reviewed the investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies. The District shall perform a compliance audit of management controls on investments and adherence to the District s established investment policies. The compliance audit shall be performed in conjunction with the annual financial audit. As part of the investment policy, the Board shall adopt a separate written investment strategy for each of the funds or group of funds under the Board s control. Each investment strategy must describe the investment objectives for the particular fund under the following priorities in order of importance: 1. Understanding of the suitability of the investment to the financial requirements of the District 2. Preservation and safety of principal 3. Liquidity 4. Marketability of the investment if the investment needs to be liquidated before maturity 5. Diversification of the investment portfolio 6. Yield Investment Strategy - The main goal of the investment program is to ensure its safety and maximize financial returns within current market conditions in accordance with this policy. Investments shall be made in a manner that ensures the preservation of capital in the overall portfolio, and offsets during a 12-month period any market price losses resulting from interest-rate fluctuations by income received from the balance of the portfolio. No individual investment transaction shall be undertaken that jeopardizes the total capital position of the overall portfolio. Investments of the following fund categories shall be consistent with this policy and in accordance with the strategy defined below. Operating Funds - Operating funds (including any commingled pools containing operating funds) shall have as their primary objectives safety, investment liquidity, and maturity sufficient to meet anticipated cash flow requirements. Agency Funds - Agency funds shall have as their objectives safety, investment liquidity, and maturity sufficient to meet anticipated cash flow requirements. Debt Service Funds - Debt service funds shall have as their objective sufficient investment liquidity to timely meet debt service payment obligations in accordance with provisions in the bond documents. Maturities longer than one year are authorized provided legal limits are not exceeded. Capital Project Funds - Capital project funds shall have as their objective sufficient investment liquidity to timely meet capital project obligations. Maturities longer than one year are authorized provided legal limits are not exceeded. Proprietary Funds - Proprietary funds shall have as their primary objectives safety, investment liquidity, and maturity sufficient to meet anticipated cash flow requirements. Debt Policies Allowable Debt Instruments for Texas school districts include various types of bonds, notes, loans, and leases. The types of debt that school districts may issue include: General obligation bonds which are negotiable coupon bonds for the construction, acquisition and equipping of school buildings; the acquisition North East ISD Budget

75 of land; energy conservation measures; certain refinancing of property; and the purchase of new school buses. Revenue bonds that are generally issued to acquire, purchase, construct and improve or equip athletic or recreational facilities. Bonds may be issued serially not to exceed 50 years. Such bonds are to be paid with revenues generated by the facilities or the activities supporting the facilities. Advance refunding bonds to provide funds to make interest payments on outstanding bonds and to retire the principal of outstanding bonds as it becomes due or at an earlier call date. Refunding bonds issued to retire outstanding bonds. Proceeds may be used to redeem outstanding bonds or the refunding bond may be exchanged for the outstanding bonds. Capital appreciation bonds which are deepdiscount or zero coupon bonds with no cash interest payments. Tax anticipation notes and other notes which are issued for the purpose of paying current maintenance expenses, and for certain types of real property financing. At no time will the note balance exceed 75% of the previous year s income. Loans secured by delinquent tax collections levied in or for past, current and future years may be used for any legal maintenance expenditure or purpose, and for certain types of real property financing. Interest-bearing time warrants used to fund loans may be used for any legitimate school purpose, and for certain types of real property financing. Capital and Operating Leases. Texas Education Agency Financial Accountability System resource Guide: nu_id=645 North East ISD Policy Manual: Educational legislation has eliminated limits on outstanding debt. While there is no specified debt limit, State law prohibits school districts from raising their debt service property tax rate beyond $0.50 per $100 of taxable property value. Other Policies The policies presented in this section are not an exhaustive list of all policies included in the FASRG or the District s policy manual. Additional information can be found at the respective websites of TEA and the District. North East ISD Budget

76 Budget Development and Management Legal Requirements Sections through of the Texas Education Code establish the legal basis for budget development in school districts. The following items summarize the legal requirements from the code: The Superintendent is the budget officer for the district and prepares or causes the budget to be prepared. The district s budget must be prepared by a date set by the State Board of Education. The President of the Board of Trustees must call a public meeting of the Board of Trustees, giving ten days public notice in a newspaper, for the adoption of the district budget. Any taxpayer in the district may be present and participate in the meeting. A summary of the proposed budget by Function must be posted to the district s website concurrently with the notice of public meeting. No funds may be expended in any manner other than as provided for in the adopted budget. The Board does have the authority to amend the budget or adopt a supplementary emergency budget to cover unforeseen expenditures. The budget must be prepared in accordance with GAAP (Generally Accepted Accounting Principles) and State guidelines. The budget must be adopted prior to the start of the next fiscal year. The adopted budget must be displayed on the district s website. Annual budgets must be prepared for the following funds: General Fund, Debt Service Fund, and School Nutrition Services Fund. The budgets for these funds must be approved by the Board of Trustees. Budget Development North East ISD s budgetary approach is a hybrid of line-item, site-based and outcome-focused budgeting methods. All expenditure allocations are determined based on projected revenue from the State and local sources with the goals of maintaining an appropriate fund balance while still meeting District educational goals. The budget process begins in October with preliminary enrollment projections. Student enrollment drives most significant budgetary decisions including state revenue projections, perpupil allocations for campuses and instructional staffing allocations. The Office of Budgets and Financial Analysis prepares revenue projections for all funds. These projections are based on enrollment projections, estimates of local tax revenue, State funding formulas, and other significant factors. Staffing and Salaries Salaries and benefits comprise 87% of the annual operating budget. Therefore, the Board of Trustees gives careful consideration to staffing allocations for both instructional and non-instructional positions. Additional personnel units are evaluated by the Department of Research and Information Technologies, Department of Personnel and the Budget Office each year, and after extensive review and analysis, recommendations are presented to Executive Staff and ultimately, the Board of Trustees. Personnel units are allocated to each campus based on projected student enrollment following State mandated ratios, as applicable. The budget amounts for the approved staffing levels are then developed by the Office of Budgets and Financial Analysis. Projected costs for each position are based on the actual earnings and benefits of filled positions and average (or mid-point) costs for allocated but vacant positions. Non-Staffing Expenditures The District has implemented site based budgeting for non-payroll related budget allocations; therefore, campus principals and other campus staff contribute extensively to campus budget decisions. Each campus receives a base allocation per student to be used for supplies, materials, equipment, staff development, and other appropriate instructional costs. The per-pupil allocations are weighted, adding budget to campuses which have higher ratios of economically disadvantaged students or high mobility rates (mobility refers to the number of students entering or leaving the campus during the year). Decisions concerning utilization of this allocation are made by the campus administration. North East ISD Budget

77 For , the following average per-pupil weighted allocations were used: Per-Pupil School Level Allocation High School $88 Middle School $81 Elementary School $81 In addition, there are certain cost areas that are managed centrally by the District, but the expenditures (and related budget allocations) are recorded at the campus level. They include: Copier paper, toner, and repairs Computer repairs Data processing costs for attendance, student records, etc. Raptor visitor security system costs University Interscholastic League costs Custodial supplies and overtime Career & Technology program supplies Those allocations are determined by various factors. For instance, the copier-related costs are based on types and number of equipment. Custodial costs are allocated based on square footage of buildings. Others are based on enrollment. Department (i.e., non-campus) budgets are strictly line item budgets that do not increase due to changes in enrollment. Additional Allocation Requests Campuses and departments may request additional staffing allocations or non-staffing funds through a process called Additional Allocation Requests. Unless the staff or funds requested address a specific safety issue or legal mandate, the request system is based on outcome-focused budgeting. To be approved, the request should: be linked to a specific Board goal or Campus Improvement Plan component should demonstrate the current deficiency or weakness leading to the request explain the benefits if approved, or the alternatives, if any, if not approved describe in detail the measurable outcome that can be evaluated to determine the effectiveness of the request, if approved All requests are reviewed by the Office of Budgets and Financial Analysis and forwarded to the appropriate associate superintendent for prioritization. Executive staff (the superintendent and the associate superintendents) then meets to review and approve/disapprove each request. Debt Service Fund The District Treasurer collaborates in developing the Debt Service Fund budget. This budget is based primarily on property tax roll value assumptions (for local revenue projections) and projected debt retirement requirements. The District s general obligation bonds have stated maturity schedules, so attaining the expenditure budget is a straightforward process. The Treasurer and Executive Director of Finance and Accounting Services recommend an Interest & Sinking property tax rate to executive staff and the Board that will produce the adequate tax levy to cover the budget year s debt service requirements. Board Budget Study Sessions Following the initial development process, consolidated budgetary information is presented to the Board of Trustees in budget study sessions. The sessions attempt to provide the Board information not only on the current budget requirements, but also on the long-term financial status of the District, any changes to school funding statewide, and how North East ISD s spending patterns compare to similar districts in our local area and across the state. A total of six budget meetings were conducted with the Board of Trustees for the budgets, including the official adoption meeting required by the Texas Education Code. Topics discussed during the budget study sessions included: Recap and effect of prior year changes to budgets Expected changes to enrollment and various student sub-populations (special education, bilingual, economically disadvantaged, etc) Benchmarking of expenditure levels by function compared to other districts Staffing allocation process and decisions Local and State revenue estimates North East ISD Budget

78 Additional Allocation Requests Effect of the recession to the Texas economy and future state education funding Effect of federal stimulus funding The effect to the General Fund of significant capital spending through bond-funded capital programs Three-year financial forecasts and fund balance recommendations Budget Management Following the adoption of the official budget by the Board of Trustees, the budget must be actively managed throughout the fiscal year to ensure that authorized expenditure amounts are not exceeded and are used for intended, proper, and legal purposes. Expenditure Controls and Approvals Expenditure appropriations are allocated between approximately 135 organizations (campuses, departments, etc.) Each organization is assigned a budget manager (i.e. principal, department head). The budget manager is accountable for his or her organization s portion of the General Fund budget. Budget managers are authorized to approve the expenditure of funds within their respective organization, provided that funds are expended in accordance with District purchasing procedures and legal requirements. This is accomplished through the use of the standard account code system prescribed by the Texas Education Agency, which includes an organization code. Each budget manager (or designee) is granted on-line access to the budget for his or her organization. This access includes purchase orders, check requisition, account inquiry, and reporting capabilities. Purchase Orders The Board of Trustees approves bid awards and contracts that exceed $50,000. Purchase Orders (P.O.) are prepared for some services and all tangible goods. Once requisitions are entered into the system and approved at the campus/departmental level, they are reviewed by the Procurement Department for proper account coding and compliance with legal purchasing procedures. Procurement then sends the P.O. to the appropriate vendor. Once the P.O. is printed and mailed, an encumbrance is entered into the budget account. Encumbrances are reservations of appropriations for open purchase orders for goods that have not yet been received. The purpose of the encumbrance is to ensure that obligations are recognized as soon as financial commitments are made in order to prevent inadvertent over expenditure of funds due to lack of information about future commitments. The majority of goods are received by the campus or department that requested the items. Receiving of the items is performed on-line. Once received in the system, Accounts Payable recognizes the receipt, and upon receipt of the invoice, payment can be made. Check Requisitions Check requisitions are used for payment for services and employee travel. Check requisitions, along with the appropriate supporting documentation, are forwarded to the Accounting Department for verification, approval, and payment. Amending the Budget The budget is legally adopted at the fund and function level. In an effort to fully support campus instruction, the Board passed a resolution authorizing District budget managers to transfer budgeted funds between functions as long as the overall District budget is not exceeded. This allows campus staff maximum flexibility in utilizing funds to ensure student achievement. Budget amendments are prepared and submitted to the Board as requests to increase (decrease) any major revenue, increase (decrease) overall appropriations, or increase (decrease) other resources or other uses. A report reflecting the budget amendment as well as any transfers that transpired during the month is submitted to the Board on a monthly basis. The report keeps the members abreast of the movement of budgeted funds between functions. Monitoring the Budget The District s interactive, on-line budgetary control system provides many useful tools including reports to assist budget managers and Business Services personnel in administering, monitoring, and controlling budget expenditures. The system provides checks on account balances to ensure that funds are not over expended. Due to the magnitude of effort required in the management of North East ISD s budget, the District North East ISD Budget

79 established the positions of Comptroller for each division. Each Comptroller is assigned to support an associate superintendent. The Comptrollers review expenditures for their respective divisions on a monthly basis. Additionally, they forecast expenditures and impact to the fund balance for the fiscal year. The Comptrollers act as financial advisors to provide decision support to the associate superintendents as well as the organizational budget managers. Relevant reports are submitted to the Board of Trustees on a monthly basis. The final step in the budget monitoring process is the evaluation of the results of operations, which are presented annually in the District s Comprehensive Annual Financial Report (CAFR). Reporting to the Texas Education Agency The District budget must be submitted to TEA via the Public Education Information Management System (PEIMS) transmission process as of the date established in the annual instructions for the system. TEA monitors the District for compliance. This monitoring is a legal requirement to ensure mandatory expenditure levels in certain areas. In addition, amended budgets are reflected on the schedule comparing budget and actual results in the Annual Financial and Compliance Report. The requirement for filing the amended budget with TEA is formally met when the District submits its Annual Financial and Compliance Report. Additional Information A graphical representation of the budget process is included on page 73. Significant dates and events included in the budget development process are summarized in the budget calendar on pages Extensive information regarding North East ISD s benchmarking process is included in the supplement to this budget document. North East ISD Budget

80 Budget Process Overview Student Estimates District & Campus Improvement Plans Departmental Planning Special Allocations Campus Budgets Campus Staffing Additional Allocation Requests Central Office Budgets Budget Property Appraisals State Estimates New Laws Board of Trustees North East ISD Budget

81 Budget Process Summary The following outline (and the associated graphic on the previous page) describes the budget process for North East ISD. Expenditures I. The process begins with students North East ISD has nearly 66,000 students and grows by 1,000 2,500 students each year 1. The Research and Information Technologies Department (RIT) works with demographers, builders, city planning, & local historical trend information to estimate how many students there will be and where they will be enrolled. 2. The Special Education Department estimates changes in Special Education student populations II. Student estimates drive teacher, custodial & campus administration staffing decisions North East ISD has approximately 4,400 teaching FTEs, with approximately 4,200 funded through the General Fund 1. The RIT and Human Resources (HR) departments work to construct initial estimate of teacher requirements; this process goes through several iterations, with several factors influencing change, such as a. District-wide and individual campus academic improvement initiatives b. Legislative changes c. ESL & Special Ed population changes 2. For , the District put much more emphasis on efficient staffing, especially at the high school level, increasing student teacher ratios III. Student estimates also drive campus operating budgets North East ISD has 65 traditional campuses plus several alternative and magnet programs 1. Campuses receive a per-student allotment, weighted according to the campus free/reduced lunch percentage and historic mobility rates. The principal must budget these funds to cover: a. Overtime for office staff b. Substitute teachers for campus-directed activities c. Supplies d. Contract services e. Maintenance and replacement of office equipment (not including instructional copiers and computers) f. Police coverage for after-school events (above a base amount provided by the district) 2. Each campus receives special allocations that are actually controlled by various Central Office departments, for items such as a. Custodial overtime & supplies b. Campus police coverage, including some after-hours activities c. Standard copier and classroom computer supplies & maintenance d. Data processing charges e. Graduation expenses IV. Central office staffing and operating budgets are not student-driven North East ISD has more than 75 central-office departments 1. Department budgets are traditionally maintained at a constant dollar amount (or decreased by a percentage) V. Increases to budgets are applied for via Additional Allocation Requests (AARs) A web-based system that ensures that requests are methodically processed and are consistent in support 1. Any request for increases to operating budget or staffing must be processed through an AAR 2. Requestor must supply various information, including: a. Detail of the request b. How the AAR supports a campus/department/district goal c. What alternatives are there if the AAR is denied d. The length of the request (e.g., 1 year/ 5 year/ permanent) 3. Executive Staff works with the Budget Office to review and prioritize each AAR North East ISD Budget

82 a. Priority 1 -- Essential must have for the operations of the District i. Costs for new schools ii. Legal mandates iii. Safety & security iv. Infrastructure b. Priority 2 Critical vital for fulfilling the District s mission c. Priority 3 Program Initiatives Complimentary to the District s mission VI. Results from I. thru V. are accumulated into an initial revenue & expenditure estimate model An Excel model that allows for certain what-if changes to major components of expenditures 1. At this point, total estimated expenditures are compared to estimated available revenue 2. Models are created altering assumptions for major expenditure items, such as: a. Total student-teacher ratio b. Across-the-board pay raises c. Total AARs approved d. Changes in health insurance e. Increases to utilities & fuel f. Across-the-board increases/decreases to campus/department operating budgets 3. The model projects the effect of these decisions not just for the next budget but for three years forward The results of this exercise will require changes to the steps already completed. For instance, a decision to alter the student-teacher ratio will require RIT and HR to revise the campus staffing allocations. Also, any significant change to revenue estimates requires the Budget Office to re-address this model. Revenue I. The process begins with students North East ISD has nearly 66,000 students and grows by 1,000 2,500 students each year 2. The Special Education Department estimates changes in Special Education student populations II. Student estimates feed into foundation revenue templates Estimates are compiled from multiple sources and compared to each other 1. The Budget Office (BO) prepares a revenue estimate from an Excel template that follows the State Summary of Finances (SOF) 2. The BO s estimate is compared to estimates prepared by an outside consultant (Dr. Rostam Kavoussi), who utilizes the Region XIII funding template. 3. The BO s estimate is also compared to any projection models prepared by Moak/Casey & Associates 4. Dr. Kavoussi also provides the BO with an initial estimate of property value, which really only effects debt service and general fund Tier II III. During legislative years, the potential effects of finance legislation are modeled in the Foundation Revenue templates As bill text, fiscal notes, and analyses are released, those changes are updated in the template 1. The BO also relies heavily on organizations such as Moak/Casey & Associates to provide estimates of the effect of new legislation IV. Results from I. thru III. are accumulated into an initial revenue & expenditure estimate model An Excel model that allows for certain what-if changes scenarios 1. At this point, total estimated revenue is compared to estimated expenditures 2. The model projects the effect not just for the next budget, but for three years forward 3. Expenditure budgets will be altered as necessary 1. The Research and Information Technologies Department (RIT) works with demographers, builders, city planning, & local historical trend information to estimate how many students there will be and where they will be enrolled North East ISD Budget

83 Budget Calendar Start Finish Item Responsible Area October 20, 2009 High School Course Fair Curriculum October 21, 2009 November 20, 2009 High School Course Selection Campuses December 1, 2009 Course tallies sent to campuses Curriculum December 18, 2009 Deadline for Principals/Supervisors to submit to Human Resources the names of contract employees they want to recommend for possible non-renewal or termination Human Resources January 11, 2010 January 15, 2010 Human Resources makes initial contact with Principals/Supervisors to discuss documentation on proposed non-renewals or terminations Human Resources January 11, 2010 Preliminary List of Non-Renewals/Terminations Campuses January 19, 2010 January 29, 2010 Follow-up meetings with Principals/Supervisors to review documentation of proposed non-renewals or terminations Human Resources February 1, 2010 February 19, 2010 Executive Director of Human Resources meets with employees proposed for non-renewal or termination Human Resources February 1, 2010 Preliminary Estimate of Certified Values Budget February 1, 2010 Preliminary Staffing & Enrollment Estimate Research & Information Technologies February 26, 2010 Deadline for Human Resources to submit agenda item to Board on proposed non-renewals or terminations Human Resources March 1, 2010 Board Meeting -- Approve Potential RIF List Human Resources March 1, 2010 Campuses notified of preliminary budget allocations Budget March 1, 2010 Online Transfer Requests opened for CAMPUS personnel (classified and certified) Human Resources March 1, 2010 Staffing & Enrollment Estimate Research & Information Technologies March 5, 2010 April 9, School Day RIF Rule Period Human Resources March 8, 2010 Report to Board of Trustees on proposed non-renewal or terminations Human Resources March 15, 2010 April 5, 2010 AAR Input- Non-campus Departments March 15, 2010 April 19, 2010 AAR Input- Campus Campuses March 15, 2010 April 19, 2010 Campus/Department input managed accounts into BUDS Campuses/Departments March 24, 2010 March 26, 2010 BUDS Training Budget March 29, 2010 AAR/Budget workshop for principals (voluntary) Budget April 5, 2010 Staffing & Enrollment Estimate Research & Information Technologies April 12, 2010 Board Meeting -- Action on RIF Human Resources April 13, 2010 Official notification to employees of proposed non-renewal or termination (Per TEC A &B, must be 45 calendar days before the last day of instruction) Human Resources April 16, 2010 Employment Contracts sent to campuses & departments and returned to HR Human Resources April 19, calendar days before the last day of instruction based on the SY calendar Human Resources April 19, 2010 May 7, 2010 Executive Staff Ranks AARs and determines approvals Executive Staff April 26, 2010 Deadline for Principals to submit Classified Displaced list to HR Human Resources April 30, 2010 Deadline for principals to provide classified employees letters of Reasonable Assurance Human Resources April 30, 2010 Last day to input Purchase Orders for TITLE I PURCHASES Campuses/Departments April 30, 2010 Campuses review & adjust managed account balances Campuses April 30, 2010 BCAD provides Certified Value Estimate Budget May 3, 2010 Executive Staff Budget Update Budget May 3, 2010 Board Budget Study Session #1 Budget May 6, 2010 Deadline for PDAS Summative and End Of Year Evaluations Human Resources May 10, 2010 Executive Staff Budget Update -- approved AAR list finalized Budget May 11, 2010 Employee Group Compensation Proposals Budget May 14, 2010 Last day to input Purchase Orders Procurement & e-commerce May 14, 2010 Deadline for returning Classified Letters of Assurance to HR Human Resources May 17, 2010 Executive Staff Budget Update Budget May 17, 2010 Board Budget Study Session #2 Budget May 20, 2010 Deadline for all other Certified and Classified School Evaluations Human Resources North East ISD Budget

84 Budget Calendar Start Finish Item Responsible Area May 24, 2010 Executive Staff Budget Update Budget May 24, 2010 Board Budget Study Session #3 (call for public meeting and posting notice of same) Budget May 24, 2010 June 11, 2010 Data Processing runs salary estimator models Data Processing May 26, 2010 Deadline for Transfer Requests to be submitted through the online transfer request process Human Resources May 28, 2010 Deadline for Evaluations for the following: Maintenance, Custodial, Transportation, SNS Assistants, Non-Campus Admin Support, and Non-Campus Administrators Human Resources May 28, 2010 Budget Transfer deadline Budget June 3, 2010 Last Day of Instruction Campuses June 7, 2010 Executive Staff Budget Update Budget June 9, 2010 Notice of Public Meeting to Express-News & La Prensa Budget June 11, 2010 Deadline for principals to submit transfer change of assignments Human Resources June 11, 2010 Warehouse Requisition deadline Procurement & e-commerce June 14, 2010 Executive Staff Budget Update Budget June 14, 2010 Board Budget Study Session #4 Budget June 14, 2010 Last workday for MS bookkeepers Campuses June 17, 2010 Last day to submit P.O. Action Forms Procurement & e-commerce June 21, 2010 Public Hearing for Budget Adoption Budget June 25, 2010 Last workday for ES & High School bookkeepers Campuses June 30, 2010 Last day to transfer Administrative Support Staff Human Resources July 9, 2010 Resignation deadline - Contract employees (45 days before the first day of instruction for the school year) Human Resources July 15, 2010 Deadline to request Eligible Roll-Forward funds Campuses/Departments July 15, 2010 Chapter 41 Letter of Intent due to TEA Finance July 25, 2010 Certified Values from BCAD Bexar County Appraisal District August 9, 2010 Tax Rate Adoption Budget North East ISD Budget

85 NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE The North East Independent School District will hold a public meeting at 6:00 PM, June 21, 2010 in the Board Room on the First Floor of the North East Education Center Building at 8961 Tesoro Drive, San Antonio, Texas The purpose of this meeting is to discuss the school district's budget that will determine the tax rate that will be adopted. Public participation in the discussion is invited. The tax rate that is ultimately adopted at this meeting or at a separate meeting at a later date may not exceed the proposed rate shown below unless the district publishes a revised notice containing the same information and comparisons set out below and holds another public meeting to discuss the revised notice. Maintenance Tax School Debt Service Tax Approved by Local Voters $ /$100 (proposed rate for maintenance and operations) $ /$100 (proposed rate to pay bonded indebtedness) Comparison of Proposed Budget with Last Year's Budget The applicable percentage increase or decrease (or difference) in the amount budgeted in the preceding fiscal year and the amount budgeted for the fiscal year that begins during the current tax year is indicated for each of the following expenditure categories: Maintenance and operations Debt service Total expenditures (0.27)% (decrease) 8.78% increase 1.14% increase Total Appraised Value and Total Taxable Value (as calculated under Section 26.04, Tax Code) Preceding Tax Year Current Tax Year Total appraised value* of all property $31,824,964,284 $31,118,120,401 Total appraised value* of new property** Total taxable value*** of all property Total taxable value*** of new property** $780,837,257 $463,233,741 $28,678,506,769 $28,042,941,367 $755,483,330 $418,923,428 * "Appraised value" is the amount shown on the appraisal roll and defined by Section 1.04(8), Tax Code. ** "New property" is defined by Section (17), Tax Code. *** "Taxable value" is defined by Section 1.04(10), Tax Code. Bonded Indebtedness * Outstanding principal as of August 31, Total amount of outstanding and unpaid bonded indebtedness* $1,238,705,494 Comparison of Proposed Rates with Last Year's Rates Last Year's Rate Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service Maintenance & Operations $ $ Interest & Sinking Fund* $ $ * * Total $ $ Local Revenue Per Student $6,269 $6,137 State Revenue Per Student $2,816 $2,873 Proposed Rate $ $ $ * The Interest & Sinking Fund tax revenue is used to pay for bonded indebtedness on construction, equipment, or both. The bonds, and the tax rate necessary to pay those bonds, were approved by the voters of this district. Comparison of Proposed Levy with Last Year's Levy on Average Residence Last Year This Year Average Market Value of Residences $178,770 $177,185 Average Taxable Value of Residences $163,192 $161,911 Last Year's Rate Versus Proposed Rate per $100 Value $ $ Taxes Due on Average Residence Increase (Decrease) in Taxes $2, $2, $(17.97) Under state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older or of the surviving spouse of such a person, if the surviving spouse was 55 years of age or older when the person died, may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value. Notice of Rollback Rate: The highest tax rate the district can adopt before requiring voter approval at an election is $ This election will be automatically held if the district adopts a rate in excess of the rollback rate of $ Fund Balances The following estimated balances will remain at the end of the current fiscal year and are not encumbered with or by a corresponding debt obligation, less estimated funds necessary for operating the district before receipt of the first state aid payment: Maintenance and Operations Fund Balance(s) $64,471,735 Interest & Sinking Fund Balance(s) $27,946,955* * As of August 31, 2010 Source: Kavoussi & Associates * $6,009 $2,994 North East ISD Budget

86 Adopted Budget June 21, 2010 General School Nutrition Debt Service Total Estimated Revenues Fund Services Fund Fund All Funds Local $ 290,178,278 $ 14,053,436 $ 99,395,169 $ 403,626,883 State 209,635,777 * 821, ,457,454 Federal & Other 3,988,966 15,497,754-19,486,720 Other Resources 220, ,975 Total Revenues $ 504,023,996 $ 30,372,867 $ 99,395,169 $ 633,792,032 Appropriations Function 11 Instruction $ 310,625,867 $ 310,625,867 Function 12 Instructional Resources & Media Svcs 8,355,800 8,355,800 Function 13 Curriculum & Instructional Staff Dev 10,993,736 10,993,736 Function 21 Instructional Leadership 6,123,466 6,123,466 Function 23 School Leadership 30,217,319 30,217,319 Function 31 Guidance, Counseling & Evaluation 17,799,719 17,799,719 Function 32 Social Work Services 2,612,844 2,612,844 Function 33 Health Services 6,910,834 6,910,834 Function 34 Student (Pupil) Transportation 15,712,526 15,712,526 Function 35 Food Services 28,673,785 28,673,785 Function 36 Extracurricular Activities 9,629,813 9,629,813 Function 41 General Administration 11,096,295 11,096,295 Function 51 Facilities Maintenance & Operations 53,347,430 1,320,000 54,667,430 Function 52 Security & Monitoring Services 3,995, ,750 4,121,594 Function 53 Data Processing Services 3,345,023 3,345,023 Function 61 Community Services 361, ,182 Function 71 Debt Service 86,481,416 86,481,416 Function 81 Facilities Acquisition & Construction - Function 93 Payments To Fiscal Agent/Ssa 400, ,000 Function 95 Juvenile Justice Alt. Education 412, ,069 Function 99 Other Intergovernmental Charges 2,340,215 2,340,215 Total Appropriations $ 494,279,982 $ 30,119,535 $ 86,481,416 $ 610,880,933 Other Uses 550, ,000 Total Appropriations & Other Uses $ 494,829,982 * $ 30,119,535 $ 86,481,416 $ 611,430,933 Projected Beginning Fund Balance 7/1/10 $ 70,027,706 $ 6,944,128 $ 77,754,586 $ 154,726,420 Net Revenue/Sources Over (Appropriations)(Uses) $ 9,194,014 $ 253,332 $ 12,913,753 $ 22,361,099 Projected Ending Fund Balance 6/30/11 $ 79,221,720 $ 7,197,460 $ 90,668,339 $ 177,087,519 Projected Reserved/Designated Fund Balance (3,736,010) - (90,668,339) (94,404,349) Projected Unreserved/Undesignated Fund Balance 6/30/11 $ 75,485,710 $ 7,197,460 $ - $ 82,683,170 * The Texas Education Agency (TEA) mandates, for consistency in presentation, approximately $18,000,000 in ARRA funds be included in the initial budget of the General Fund in estimated state revenue and in appropriations. After receiving additional information from the TEA the District will prepare an amended budget that reclassifies these funds to a federal Special Revenue Fund (266). North East ISD Budget

87 Combined Budget Summaries Appropriated Funds Appropriated Budget Funds Total Actual Near Final General School Debt Appropriated Fund Nutrition Service Funds Total Revenues Local Sources $ 407,567,596 $ 403,718,353 $ 290,178,278 $ 14,053,436 $ 99,395,169 $ 403,626,883 State Sources 171,500, ,918, ,635, , ,457,454 Federal Sources 14,590,498 19,178,645 3,988,966 15,497,754-19,486,720 Other Sources 223,701 1,897, , ,975 Total Revenues $ 593,881,952 $ 625,712,694 $ 504,023,996 $ 30,372,867 $ 99,395,169 $ 633,792,032 Expenditures Payroll Costs $ 431,836,233 $ 440,285,322 $ 428,722,830 $ 13,959,182 $ - $ 442,682,012 Contracted Svcs 36,118,228 39,483,278 41,799,209 1,826,250-43,625,459 Supplies/Materials 27,746,607 28,452,779 17,636,942 13,903,103-31,540,045 Other Operating 4,076,679 3,860,311 5,815,832 81,000-5,896,832 Capital Outlay 784, , , , ,169 Other Uses 2,294, , , ,000 Debt Service 81,659,250 95,771, ,481,416 86,481,416 Total Expenditures $ 584,515,723 $ 609,058,855 $ 494,829,982 $ 30,119,535 $ 86,481,416 $ 611,430,933 Revenues Over/(Under) Expenditures $ 9,366,229 $ 16,653,839 $ 9,194,014 $ 253,332 $ 12,913,753 $ 22,361,099 Fund Balance, Beginning 130,369, ,735,411 71,894,269 7,714,703 76,780, ,389,250 Fund Balance, Ending $ 139,735,411 $ 156,389,250 $ 81,088,283 $ 7,968,035 $ 89,694,031 $ 178,750,349 *This schedule only includes funds that require budget adoption by the Board of Trustees. North East ISD Budget

88 Combined Budget Summaries All Funds All Budget* Funds Total Actual Near Final Appropriated Special Capital Proprietary All Funds Revenue Funds Funds Funds Total Revenues Local Sources $ 504,471,862 $ 490,453,769 $ 403,626,883 $ 5,792,983 $ 3,750,000 $ 75,356,801 $ 488,526,667 State Sources 182,926, ,686, ,457,454 8,709, , ,391,613 Federal Sources 41,723,815 55,274,451 19,486,720 36,067,349-90,500 55,644,569 Other Sources 6,620,793 2,806, , , , ,328 Total Revenues $ 735,743,469 $ 759,220,813 $ 633,792,032 $ 50,819,594 $ 3,750,000 $ 75,871,551 $ 764,233,176 Expenditures Payroll Costs 472,341, ,327,847 $ 442,682,012 $ 27,902,598 $ - $ - $ 470,584,610 Contracted Svcs 50,779,413 52,207,260 43,625,459 7,214,937-15,570,225 66,410,621 Supplies/Material 37,911,497 43,902,742 31,540,045 11,250,923-8,524,837 51,315,805 Other Operating 56,193,007 55,515,971 5,896,832 4,304,151-4,223,379 14,424,362 Capital Outlay 190,204, ,590, , ,326 69,059,210 51,527, ,379,909 Other Uses 6,200,136 2,582, , , , ,134 Debt Service 81,659,250 95,771,706 86,481, ,481,416 Total Expenditures $ 895,289,694 $ 939,899,323 $ 611,430,933 $ 51,041,580 $ 69,059,210 $ 79,989,133 $ 811,520,858 Revenues Over/(Under) Expenditures $ (159,546,225) $ (180,678,510) $ 22,361,099 $ (221,986) $ (65,309,210) $ (4,117,582) $ (47,287,682) Fund Balance, Beginning 697,063, ,517, ,389,250 3,667, ,603,142 42,178, ,838,934 Fund Balance, Ending $ 537,517,447 $ 356,838,937 $ 178,750,349 $ 3,445,928 $ 89,293,932 $ 38,061,046 $ 309,551,252 *This schedule includes funds that do not require budget adoption by the Board of Trustees. This is also not in GASB 34 format. Budget amounts for Special Revenue funds are based on prior year expenditures. Although, the School Nutrition Services Fund is a special revenue fund, it is not included in the Special Revenue totals. It is included in the Appropriated Funds total because its budget requires adoption by the Board of Trustees. North East ISD Budget

89 General Fund Summary by Major Object and Function Actual Near Final Budget Percent Inc/(Dec) Revenues Local Property Taxes $ 287,392,586 $ 285,911,475 $ 284,812,251 (0.4%) Tuition & Fees 1,339, ,353 1,339, % Other Revenues from Local Sources 3,113,801 1,617,307 1,769, % Cocurricular, Enterprising Services 1,306,957 1,371,332 1,456, % Miscellaneous 495, , ,553 (3.3%) Total Local Revenues $ 293,648,351 $ 290,260,949 $ 290,178,278 (0.0%) Per Capita & Foundation School Program $ 148,837,569 $ 176,928,727 $ 186,661, % Miscellaneous State Revenue 83, ,267 66,314 (60.6%) TRS On-behalf Payments 21,898,465 23,174,328 22,907,827 (1.1%) Total State Revenues $ 170,819,713 $ 200,271,322 $ 209,635, % Revenue Distributed by TEA $ 495,683 $ 1,158,617 $ 1,038,274 (10.4%) Revenue Distributed by Other Texas Gov't 81,427 2,192,808 2,181,427 (0.5%) Revenue Distributed by Federal Gov't 689, , , % Total Federal Revenues $ 1,266,893 $ 4,082,809 $ 3,988,966 (2.3%) Other Resources $ 220,976 $ 1,768,326 $ 220,975 (87.5%) Total Revenues $ 465,955,933 $ 496,383,406 $ 504,023, % Expenditures Payroll Costs $ 417,688,921 $ 426,443,586 $ 428,722, % Prof/Contracted Services 34,661,552 37,646,738 41,799, % Supplies & Materials 16,580,074 16,429,463 17,636, % Other Operating 4,019,408 3,824,516 5,815, % Capital Outlay 702, , ,169 (47.9%) Other Uses 2,294, , ,000 (1.9%) Total Expenditures $ 475,946,660 $ 485,491,421 $ 494,829, % Revenues Over/(Under) Expenditures $ (9,990,727) $ 10,891,985 $ 9,194,014 (15.6%) Fund Balance, Beginning 70,993,011 61,002,284 71,894, % Fund Balance, Ending $ 61,002,284 $ 71,894,269 $ 81,088, % North East ISD Budget

90 General Fund Summary by Major Object and Function Actual Near Final Budget Percent Inc/(Dec) Expenditures Instruction $ 297,702,823 $ 304,167,172 $ 310,625, % Instructional Resources & Media Svcs 8,563,363 8,718,196 8,355,800 (4.2%) Curriculum/Instruct. Staff Development 9,731,775 8,962,586 10,993, % Instructional Leadership 6,233,530 6,162,593 6,123,466 (0.6%) School Leadership 30,769,302 31,393,512 30,217,319 (3.7%) Guidance & Counseling 17,660,470 17,911,962 17,799,719 (0.6%) Social Work Services 2,443,384 2,592,484 2,612, % Health Services 6,891,051 6,787,285 6,910, % Student Transportation 15,606,627 16,479,348 15,712,526 (4.7%) Extracurricular Activities 9,117,068 9,459,493 9,629, % General Administration 10,738,540 11,232,461 11,096,295 (1.2%) Facilities Maintenance & Operations 47,982,286 50,274,144 53,347, % Security & Monitoring Services 3,881,519 4,324,714 3,995,844 (7.6%) Data Processing Services 3,293,060 3,607,564 3,345,023 (7.3%) Community Services 304, , , % Facilities Acquisition & Construction 41, Payments To Fiscal Agent 297, , , % Juvenile Justice Alternative Education 9, , , % Other Governmental Charges 2,383,284 2,255,319 2,340, % Other Uses 2,294, , ,000 (1.9%) Total Expenditures $ 475,946,660 $ 485,491,421 $ 494,829, % North East ISD Budget

91 School Nutrition Services Fund Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 13,735,562 $ 13,527,712 $ 14,053,436 State Sources 676, , ,677 Federal Sources 13,323,605 15,095,836 15,497,754 Proceeds from sale of fixed assets 2, ,936 - Total Revenues $ 27,738,463 $ 29,399,596 $ 30,372,867 Expenditures by Object Payroll Cost $ 14,147,311 $ 13,841,733 $ 13,959,182 Professional/Contracted Services 1,456,676 1,836,541 1,826,250 Supplies & Materials 11,166,533 12,023,317 13,903,103 Other Operating 57,271 35,795 81,000 Capital Outlay 82,021 58, ,000 Total Expenditures $ 26,909,812 $ 27,795,727 $ 30,119,535 Revenues Over/(Under) Expenditures $ 828,651 $ 1,603,869 $ 253,332 Fund Balance, Beginning 5,282,183 6,110,834 7,714,703 Fund Balance, Ending $ 6,110,834 $ 7,714,703 $ 7,968,035 Expenditure Summary by Function Expenditures by Function Food Services $ 24,522,414 $ 26,412,911 $ 28,673,785 Plant Maintenance & Operations 2,288,373 1,252,264 1,320,000 Security & Monitoring Services 99, , ,750 Total Expenditures $ 26,909,812 $ 27,795,727 $ 30,119,535 North East ISD Budget

92 Debt Service Fund Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 100,183,683 $ 99,929,691 $ 99,395,169 State Sources 3, Total Revenues $100,187,555 $99,929,691 $99,395,169 Expenditures Principal $ 20,035,000 $ 35,330,000 $ 27,290,000 Interest and Fees: 61,624,250 60,441,706 59,191,416 Total Expenditures $ 81,659,250 $ 95,771,706 $ 86,481,416 Revenues Over/(Under) Expenditures $ 18,528,305 $ 4,157,985 $ 12,913,753 Fund Balance, Beginning 54,093,988 72,622,293 76,780,278 Fund Balance, Ending $ 72,622,293 $ 76,780,278 $ 89,694,031 Expenditure Summary by Function Expenditures by Function Debt Service $ 81,659,250 $ 95,771,706 $ 86,481,416 Total Expenditures $ 81,659,250 $ 95,771,706 $ 86,481,416 North East ISD Budget

93 Special Revenue Funds Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 6,367,608 $ 5,792,983 $ 5,792,983 State Sources 10,444,121 8,709,909 8,709,909 Federal Sources 26,997,093 36,067,349 36,067,349 Other Sources 624, , ,353 Total Revenues $ 44,433,583 $ 50,819,594 $ 50,819,594 Expenditures by Object Payroll Cost $ 25,089,424 $ 27,902,598 $ 27,902,598 Professional/Contracted Services 8,234,507 7,214,937 7,214,937 Supplies & Materials 6,752,407 11,250,923 11,250,923 Other Operating 4,008,023 4,304,151 4,304,151 Capital Outlay 128, , ,326 Other Uses 170, , ,645 Total Expenditures $ 44,384,224 $ 51,041,580 $ 51,041,580 Revenues Over (Under) Expenditures $ 49,359 $ (221,986) $ (221,986) Fund Balance, Beginning 3,840,541 3,889,900 3,667,914 Fund Balance, Ending $ 3,889,900 $ 3,667,914 $ 3,445,928 Expenditure Summary by Function Expenditures by Function Instruction $ 30,671,229 $ 36,844,972 $ 36,844,972 Instructional Resources & Media Svcs 37, , ,429 Curriculum/Instruct. Staff Development 7,046,011 8,212,994 8,212,994 Instructional Leadership 978,913 1,126,948 1,126,948 School Leadership 49, , ,221 Guidance & Counseling 2,440,123 1,896,979 1,896,979 Social Work Services 1,425,170 1,604,409 1,604,409 Health Services 23, , ,442 Student Transportation 381, , ,561 Food Services 8,230 18,982 18,982 Extracurricular Activities 48,827 71,032 71,032 Plant Maintenance & Operations 32,719 13,610 13,610 Security & Monitoring Services 23,682 24,438 24,438 Data Processing Services 33, , ,648 Community Services 929, , ,270 Facilities Acquisition & Construction 82, Other Uses 170, , ,645 Total Expenditures $ 44,384,224 $ 51,041,580 $ 51,041,580 North East ISD Budget

94 Capital Projects Fund Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 16,280,274 $ 5,055,630 $ 3,750,000 State Sources 187, ,047 - Federal Sources Other Sources 1,603,900 29,962 - Total Revenues $ 18,072,060 $ 5,282,639 $ 3,750,000 Expenditures by Object Payroll Cost $ - $ - $ - Professional/Contracted Services Supplies & Materials Other Operating Capital Outlay 189,291, ,807,956 69,059,210 Other Uses Total Expenditures $ 189,291,906 $ 204,807,956 $ 69,059,210 Revenues Over (Under) Expenditures $ (171,219,846) $ (199,525,317) $ (65,309,210) Fund Balance, Beginning 525,348, ,128, ,603,142 Fund Balance, Ending $ 354,128,459 $ 154,603,142 $ 89,293,932 Expenditure Summary by Function Expenditures by Function Facilities Acquisition & Construction $ 189,291,906 $ 204,807,956 $ 69,059,210 Total Expenditures $ 189,291,906 $ 204,807,956 $ 69,059,210 North East ISD Budget

95 Total Enterprise Funds Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 8,036,561 $ 8,512,531 $ 8,314,292 State Sources 155, , ,250 Federal Sources Other Sources 137, , ,000 Total Revenues $ 8,329,136 $ 8,880,054 $ 8,540,542 Expenditures by Object Payroll Cost $ 5,144,463 $ 5,648,290 $ 5,735,980 Professional/Contracted Services 726, , ,140 Supplies & Materials 347, , ,449 Other Operating 908, ,374 1,026,826 Other Uses 1,809, , ,489 Total Expenditures $ 8,935,768 $ 8,020,331 $ 8,177,884 Revenues Over (Under) Expenditures $ (606,632) $ 859,723 $ 362,658 Total Net Assets, Beginning 12,359,697 11,753,065 12,612,788 Total Net Assets, Ending $ 11,753,065 $ 12,612,788 $ 12,975,446 Expenditure Summary by Function Expenditures by Function Instruction $ 21,629 $ 7,304 $ - Instructional Leadership 1, Extracurricular Activities 362, , ,131 General Administration - 27,900 50,000 Plant Maintenance & Operations 962,242 1,043,847 1,015,364 Security & Monitoring Services 5,630 17,453 17,200 Data Processing Services - - 5,000 Community Services 5,772,172 6,307,643 6,430,700 Other Uses 1,809, , ,489 Total Expenditures $ 8,935,768 $ 8,020,331 $ 8,177,884 North East ISD Budget

96 Total Internal Service Funds Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 66,219,822 $ 67,374,272 $ 67,042,509 State Sources 639, ,853 98,000 Federal Sources 136,224 28,457 90,500 Other Sources 4,031, , ,000 Total Revenues $ 71,026,737 $ 68,525,833 $ 67,331,009 Expenditures by Object Payroll Cost $ 10,271,347 $ 10,491,641 $ 9,834,245 Professional/Contracted Services 5,700,597 4,703,224 7,744,697 Supplies & Materials 3,065,212 3,712,988 3,731,930 Other Operating 47,200,097 46,373,135 50,500,377 Other Uses 1,924,821 1,689,615 - Total Expenditures $ 68,162,074 $ 66,970,603 $ 71,811,249 Revenues Over (Under) Expenditures $ 2,864,663 $ 1,555,230 $ (4,480,240) Total Net Assets, Beginning 25,145,947 28,010,610 29,565,840 Total Net Assets, Ending $ 28,010,610 $ 29,565,840 $ 25,085,600 Expenditure Summary by Function Expenditures by Function General Administration $ 50,746,835 $ 49,143,279 $ 54,672,216 Plant Maintenance & Operations 4,750,785 4,830,859 4,976,207 Security & Monitoring Services 3,883,754 4,000,388 3,804,755 Data Processing Services 6,855,879 7,306,462 8,358,071 Other Uses 1,924,821 1,689,615 - Total Expenditures $ 68,162,074 $ 66,970,603 $ 71,811,249 North East ISD Budget

97 Impact to Taxpayers Tax Year Fiscal Year Assesed/Market Value of Average Home* $ 143,310 $ 155,641 $ 172,929 $ 180,555 $ 178,806 $ 177,185 Less: Homestead Exemption $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Less: Other Exemptions** $ 799 $ 1,999 $ 3,609 $ 1,933 $ 674 $ 274 Taxable Value of Average Home $ 127,511 $ 138,642 $ 154,320 $ 163,622 $ 163,132 $ 161,911 Maintenance & Operations Tax Rate $ $ $ $ $ $ Interest & Sinking Tax Rate $ $ $ $ $ $ Total Property Tax Rate $ $ $ $ $ $ Property Tax Due $ 2,288 $ 2,314 $ 2,165 $ 2,295 $ 2,289 $ 2,271 Property Tax Percent Increase (Decrease) 6.5% 1.2% -6.4% 6.0% -0.3% -0.7% from prior year * Value as of January 1 of Tax Year, as determined by the Bexar County Appraisal District. ** Represents the average of all other exemptions (Source: Kavoussi & Associates) Average Homeowner Property Taxes $2,500 $2,450 $2,400 $2,350 $2,300 $2,250 $2,200 $2,150 $2,100 $2,050 $2, North East ISD Budget

98 General Fund The General Fund is used to account for all transactions that are not required to be included in other funds. It represents the main operating fund of North East Independent School District (NEISD). The General Fund represents 80.9% of the expenditure budget of the three fund budgets required to be adopted by the Board of Trustees. General Fund Revenue Budget (In Thousands) Local Property Taxes Other Total Local $284,812 5,366 Amount $290,178 State Foundation Program TRS On-Behalf Total State 186,728 22, ,636 Federal & Other 4,210 Total General Fund Revenue $504,024 Revenue The two largest revenue sources in the General Fund are property taxes and State aid through the Foundation School Program. These two items are 93.5% of General Fund Revenue. There is a slight shift for from the portion of revenue that is from the state rather than local. For , approximately 58.5% of General Fund revenue was from local sources and 40.3% was from state sources. For , 57.6% of the budget is from local sources and 41.6% is from state Local Revenue More than 98 percent of the local revenue budget is maintenance and operations property tax collections. The District levies a property tax of $1.04 per $100 of assessed taxable property value. This rate is the maximum allowed by law without voter approval. Property values within the District s boundaries increased dramatically from 2000 to The increase included new residential and commercial construction as well as values of existing property. For , property values came to a standstill and for the District experienced a decline in value for the first time in more than ten years. Property Value (In billions) General Fund Revenue Distribution North East ISD Budget

99 State Revenue Eighty-nine percent of the state revenue budget is funding from the Texas Education Agency through the Foundation School Program. The remaining 11 percent represents the value of payments the State makes to the Teachers Retirement System of Texas on behalf of North East ISD. The on-behalf payments are both revenue and expenditures to the District, although no funds actually flow into or out of the District s accounts. The Texas legislature meets biennially in oddnumbered years. The major factors that drive the Foundation School Program revenue budget for were set in place in The Legislature entered the 2009 session faced with a funding deficit of $9.1 billion compared to the previous biennium. The Texas Constitution prohibits the State to deficit spend, so lawmakers needed to (a) create additional sources of revenue; (b) reduce funding for programs; or (c) balance the budget by utilizing the State s Economic Stabilization, or Rainy Day, Fund, which requires a three-fifths majority vote of the Legislature. Then, on February 17, 2009, a fourth solution materialized the American Recovery and Reinvestment Act of 2009 (ARRA). Statewide, the Legislature used the State Fiscal Stabilization Fund (SFSF) portion of the ARRA funds to supplant nearly $6.4 billion in State General Revenue, $3.2 billion just in education. Of the $3.2 billion, $1.3 billion was used to fund payments to school districts based on existing funding requirements, and $1.9 billion was used to finance changes made to the Foundation School Program (FSP), the State s primary funding mechanism for education, as dictated by House Bill NEISD s General Fund budget included $18.4 million from the SFSF for and s budget includes an additional $17.7 million, half of which is supplanting what was already FSP revenue. The second half is NEISD s share of the funds provided by HB3646. HB3646 was written with the intent of easing the financial restraints placed on school districts since the 2006 creation of target revenue provisions of the FSP. It was an attempt to return to formula-based education funding across the state. The target revenue provisions essentially limit the amount of total revenue (local property tax plus state funding) per student a school district may receive, without allowances for inflationary growth. The target revenue provisions also limit a local school board s ability to raise property taxes. The system arbitrarily set each district s revenue target to the amount the district received in , no matter the circumstances a district may have faced at that time. This left districts with revenue targets varying from just over $3,600 per Weighted Average Daily Attendance (WADA) to more than $10,000/WADA, although most districts on the higher end of the range had to pay recapture funds to the State. NEISD s target was $5,350, 5% higher than the statewide median of $5,075. HB 3646 guaranteed a minimum gain of $120/WADA for every district in the state beginning in Many districts with low targets under the previous system received much more, up to a maximum of $350/WADA. However, as written, HB3646 did not eliminate the target revenue system; more than 70% of districts are still locked into a particular amount. Rather, the bill simply adjusted the target amount. It also collapsed certain funding streams that were considered outside the target into the new target amount. Unfortunately for NEISD, these changes did not result in a sizable improvement to the District s fiscal situation. NEISD qualified for the $120/WADA minimum gain, guaranteeing the District approximately 2% more funding per student for and than it received in The total gain is approximately $9.2 million annually. In terms of financial flexibility, the reality is that the gain for NEISD is closer to $30/WADA, or $2.3 million. This is due to spending mandates also within HB3646 requiring the use of these funds for pay raises for certain employee groups, the cost of which equates to $6.9 million, or $90/WADA. The only variables in determining total Foundation funding are weighted average daily attendance and property value. As WADA increases, total target revenue increases. The portion of total target that is the burden of Foundation funding is then determined by the estimated property taxes NEISD collects on the first $1.00 of maintenance and operations taxes. For , both of these factors increased the Foundation revenue budget. As was discussed earlier, property values declined for , lowering the local share of target. Next, NEISD continues to increase student enrollment (and, in turn, WADA). North East ISD Budget

100 Enrollment is expected to increase 1,267 and WADA by 1,532. Enrollment and WADA 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20, Expenditures by Object (In Thousands) Payroll Professional & Contracted Services Supplies & Materials Other Operating Costs Capital Outlay Other Uses Expenditure Distribution Amount $428,723 41,799 17,637 5, Total General Fund Expenditures $494,830 10,000 - Enrollment WADA Expenditures The total General Fund expenditures budget reflects an increase of only $380,000 over the final budget for , despite an enrollment increase of nearly 1,300 students. This is in line with the District s ongoing austerity program. Costs Associated With Growth Description Amount New teachers for enrollment growth $ 4,425,000 State-mandated teacher/librarian raise 2,534,000 Costs for opening 2 new schools 2,609,000 Increased utilities (not incl. new schools) 1,888,000 Costs associated with inflation, mandates, safety & security or infrastructure 2,366,000 Total Growth, Mandates, Inflation $13,822,000 Austerity Actions Taken to Temper Growth Description Amount Restructure teacher allocation ($ 7,924,000) Restructure campus administrators & paraprofessionals (2,504,000) Restructure central office operations (826,000) Restructure custodial & transportation (896,000) Net of all other (1,292,000) Total Reductions to Temper Growth ($13,442,000) Payroll As the above graphic demonstrates, North East ISD is a people-business. The District s investment in human capital represents nearly 87% of the operating budget. For , the following significant changes were made to the District s payroll expenditures: Reductions were made to staffing levels of all types, including teachers, aides, administrators, custodial and other support staff. These changes represent approximately 124 FTEs, nearly $4.2 million. These changes are discussed in great length in the Human Resources section of this book on pages Legislation passed in 2009 that disallowed districts from freezing the pay of teachers and librarians. Districts must pay in a teachers step increase for years of experience. For NEISD, the average step is approximately $500, for a total addition to the budget of $2.5 million. North East ISD Budget

101 As part of the continuing austerity program, the District reduced its employee retention supplement by approximately one-third, saving $2.3 million. The District s payroll budget also includes a contingency of $3.2 million that will be used throughout the year to add teaching staff to campuses as needs arise. This is primarily to add elementary teaching staff to ensure compliance with the statemandated 22:1 student teacher ratio for grades K-4. Payroll Costs Near Final Budget Salaries $354.6M $357.3M Benefits 42.2M 42.5M TRS On-Behalf 23.2M 22.9M Subs & Overtime 6.4M 6.0M Total $426.4M $428.7M Despite all of the reductions noted earlier, the payroll budget is greater than the prior year actual costs. This is because the budget reflects 100% position fill rates and includes the $3.2 million contingency. Professional & Contract Services The single largest component of this expenditure category is utilities, with a budget of $15.6 million. This reflects a significant increase of North East is opening two new schools and several other expanded facilities. This is discussed in much greater detail in the Capital section of this book on pages At approximately $13.5 million, the next largest set of expenditures in this category is internal service fund charges. The District operates several internal service funds. The benefit operating internal service funds is in the ability to manage costs. For instance, the Computer Service Center is managed centrally, and all costs are tracked in the internal service fund in total; but the Center bills its services to every campus and department in the General Fund, which allows for cost analysis by campus. for property appraisal and tax collection services. These fees are approximately $2.5M. Professional & Contracted Services Near Final Budget Utilities $12.8 $15.6 ISF Charges Appraisal & Collection Contract Maintenance Other Total $37.7 $41.8 Supplies and Materials Supplies and materials costs represent less than 4% of the District s operating budget. The two largest components are fuel for the District s buses at $2.0 million, and maintenance/custodial parts at $4.4 million. Of the remaining $11.2 million in this category, $7.5 million is budgeted at the campus level for direct instructional or campus support use. Supplies & Materials Near Final Budget Fuel $1.8 $2.0 Cust/Maint Supplies Other Total $16.5 $17.6 Distribution by Function School districts not only account for expenditures by the type of cost (the object ), but also the purpose of the cost, or function. It is important for the District to maintain a high level of financial support directly to instruction and student-support functions Expenditure Distribution Also included in professional and contract services are the fees paid to the Bexar County Appraisal District and the Bexar County Tax Assessor-Collector North East ISD Budget

102 Almost 67% of the General Fund expenditures are for Instruction or Instruction-Related Functions. Expenditure Distribution by Function Near Final Budget Instruction & Related 66.3% 66.7% School & Inst Leadership 7.7% 7.3% Student Support 11.0% 10.6% Administrative 2.3% 2.2% Non-Student Support 12.0% 12.3% Intergovernmental Charge 0.5% 0.6% Ancillary & Other 0.2% 0.2% Total 100.0% 100.0% The District performs extensive benchmarking to study NEISD s trends in spending by function compared to the State average and to districts of similar size and demographics. A sample of those benchmark reports is found under separate cover in the Budget Book Supplement. $120 $115 $110 $105 $100 $95 $90 $85 $80 $75 $70 $65 $60 $55 $50 $45 $40 Fund Balance Trend (in millions) Fund Balance One measure of a district s financial well-being is the amount of operating reserve, or fund balance it has on hand at the end of the year, relative to the size of the district. A standard benchmark is a fund balance that is, at a minimum, equivalent to two months operating expenditures. North East ISD s fund balance declined by nearly $18 million over fiscal years and , to $61 million, or only 1.6 months of operating expenditures. By June 30, 2010, fund balance increased to nearly $72 million, or 1.8 months. The adopted budget results in a fund balance of almost $81 million, or 2.1 months operating reserve by June 30, As the District continues with the austerity program, the fund balance could grow to $114.1 million by June 30, 2013, or 2.8 months reserve. Given the gravity of the State of Texas budget situation, this reserve is not guaranteed; however, it is a sign that the NEISD s austerity program has put the District in a position to weather a potential reduction in funding Fund Balance Months Operating Reserve North East ISD Budget

103 General Fund Summary by Major Object and Function Actual Near Final Budget Percent Inc/(Dec) Revenues Local Property Taxes $ 287,392,586 $ 285,911,475 $ 284,812,251 (0.4%) Tuition & Fees 1,339, ,353 1,339, % Other Revenues from Local Sources 3,113,801 1,617,307 1,769, % Cocurricular, Enterprising Services 1,306,957 1,371,332 1,456, % Miscellaneous 495, , ,553 (3.3%) Total Local Revenues $ 293,648,351 $ 290,260,949 $ 290,178,278 (0.0%) Per Capita & Foundation School Program $ 148,837,569 $ 176,928,727 $ 186,661, % Miscellaneous State Revenue 83, ,267 66,314 (60.6%) TRS On-behalf Payments 21,898,465 23,174,328 22,907,827 (1.1%) Total State Revenues $ 170,819,713 $ 200,271,322 $ 209,635, % Revenue Distributed by TEA $ 495,683 $ 1,158,617 $ 1,038,274 (10.4%) Revenue Distributed by Other Texas Gov't 81,427 2,192,808 2,181,427 (0.5%) Revenue Distributed by Federal Gov't 689, , , % Total Federal Revenues $ 1,266,893 $ 4,082,809 $ 3,988,966 (2.3%) Other Resources $ 220,976 $ 1,768,326 $ 220,975 (87.5%) Total Revenues $ 465,955,933 $ 496,383,406 $ 504,023, % Expenditures Payroll Costs $ 417,688,921 $ 426,443,586 $ 428,722, % Prof/Contracted Services 34,661,552 37,646,738 41,799, % Supplies & Materials 16,580,074 16,429,463 17,636, % Other Operating 4,019,408 3,824,516 5,815, % Capital Outlay 702, , ,169 (47.9%) Other Uses 2,294, , ,000 (1.9%) Total Expenditures $ 475,946,660 $ 485,491,421 $ 494,829, % Revenues Over/(Under) Expenditures $ (9,990,727) $ 10,891,985 $ 9,194,014 (15.6%) Fund Balance, Beginning 70,993,011 61,002,284 71,894, % Fund Balance, Ending $ 61,002,284 $ 71,894,269 $ 81,088, % North East ISD Budget

104 General Fund Summary by Major Object and Function Actual Near Final Budget Percent Inc/(Dec) Expenditures Instruction $ 297,702,823 $ 304,167,172 $ 310,625, % Instructional Resources & Media Svcs 8,563,363 8,718,196 8,355,800 (4.2%) Curriculum/Instruct. Staff Development 9,731,775 8,962,586 10,993, % Instructional Leadership 6,233,530 6,162,593 6,123,466 (0.6%) School Leadership 30,769,302 31,393,512 30,217,319 (3.7%) Guidance & Counseling 17,660,470 17,911,962 17,799,719 (0.6%) Social Work Services 2,443,384 2,592,484 2,612, % Health Services 6,891,051 6,787,285 6,910, % Student Transportation 15,606,627 16,479,348 15,712,526 (4.7%) Extracurricular Activities 9,117,068 9,459,493 9,629, % General Administration 10,738,540 11,232,461 11,096,295 (1.2%) Facilities Maintenance & Operations 47,982,286 50,274,144 53,347, % Security & Monitoring Services 3,881,519 4,324,714 3,995,844 (7.6%) Data Processing Services 3,293,060 3,607,564 3,345,023 (7.3%) Community Services 304, , , % Facilities Acquisition & Construction 41, Payments To Fiscal Agent 297, , , % Juvenile Justice Alternative Education 9, , , % Other Governmental Charges 2,383,284 2,255,319 2,340, % Other Uses 2,294, , ,000 (1.9%) Total Expenditures $ 475,946,660 $ 485,491,421 $ 494,829, % North East ISD Budget

105 General Fund Expenditures by Object Within Function Actual Near Final Budget Instruction 61XX Payroll Costs $ 287,442,733 $ 293,334,814 $ 298,240,789 62XX Purchased and Contracted Services 4,840,007 5,241,589 5,564,364 63XX Supplies and Materials 4,946,649 5,131,384 5,845,950 64XX Other Operating Expenditures 438, , ,764 66XX Capital Outlay 34,610 11,870 - Total Function 11 $ 297,702,824 $ 304,167,178 $ 310,625, Instructional Resources & Media Services 61XX Payroll Costs $ 7,206,643 $ 7,444,170 $ 7,163,656 62XX Purchased and Contracted Services 272, , ,010 63XX Supplies and Materials 1,007, , ,841 64XX Other Operating Expenditures 28,819 31,328 27,293 66XX Capital Outlay 47,609 17,630 - Total Function 12 $ 8,563,363 $ 8,718,196 $ 8,355, Curriculum & Instructional Staff Development 61XX Payroll Costs $ 7,169,666 $ 7,364,667 $ 8,107,829 62XX Purchased and Contracted Services 1,001, ,330 1,155,608 63XX Supplies and Materials 1,204, ,936 1,274,338 64XX Other Operating Expenditures 356, , ,961 66XX Capital Outlay Total Function 13 $ 9,731,775 $ 8,962,586 $ 10,993, Instuctional Leadership 61XX Payroll Costs $ 5,790,058 $ 5,654,799 $ 5,572,666 62XX Purchased and Contracted Services 168, , ,707 63XX Supplies and Materials 172, , ,728 64XX Other Operating Expenditures 102,546 62, ,365 66XX Capital Outlay Total Function 21 $ 6,233,530 $ 6,162,593 $ 6,123, School Leadership 61XX Payroll Costs $ 29,479,719 $ 30,197,164 $ 29,052,676 62XX Purchased and Contracted Services 631, , ,241 63XX Supplies and Materials 449, , ,662 64XX Other Operating Expenditures 208, , ,741 66XX Capital Outlay - 6,661 - Total Function 23 $ 30,769,303 $ 31,393,512 $ 30,217,320 North East ISD Budget

106 General Fund Expenditures by Object Within Function Actual Near Final Budget Guidance & Counseling 61XX Payroll Costs $ 17,132,207 $ 17,000,296 $ 16,582,473 62XX Purchased and Contracted Services 253, , ,321 63XX Supplies and Materials 235, , ,480 64XX Other Operating Expenditures 39,304 22,716 88,445 66XX Capital Outlay - 12,660 - Total Function 31 $ 17,660,470 $ 17,911,962 $ 17,799, Social Work Services 61XX Payroll Costs 2,259,386 2,456,540 2,460,118 62XX Purchased and Contracted Services 40,836 27,965 40,700 63XX Supplies and Materials 97, , ,126 64XX Other Operating Expenditures 11,204 3,901 4,900 66XX Capital Outlay 34, Total Function 32 $ 2,443,384 $ 2,592,484 $ 2,612, Health Services 61XX Payroll Costs $ 6,468,898 $ 6,484,818 $ 6,443,228 62XX Purchased and Contracted Services 144, , ,853 63XX Supplies and Materials 268, , ,503 64XX Other Operating Expenditures 8,930 6,650 11,250 66XX Capital Outlay Total Function 33 $ 6,891,051 $ 6,787,285 $ 6,910, Student Transportation 61XX Payroll Costs $ 12,806,351 $ 13,400,088 $ 12,180,954 62XX Purchased and Contracted Services 419, , ,744 63XX Supplies and Materials 2,208,989 2,397,778 2,829,028 64XX Other Operating Expenditures 171, , ,800 66XX Capital Outlay - 40,144 20,000 Total Function 34 $ 15,606,627 $ 16,479,348 $ 15,712, Extracurricular Activities 61XX Payroll Costs $ 6,272,179 $ 6,390,768 $ 6,146,984 62XX Purchased and Contracted Services 784, , ,147 63XX Supplies and Materials 973,923 1,048,619 1,136,781 64XX Other Operating Expenditures 1,079,180 1,109,033 1,435,901 66XX Capital Outlay 7,000 30,996 - Total Function 36 $ 9,117,068 $ 9,459,493 $ 9,629,813 North East ISD Budget

107 General Fund Expenditures by Object Within Function Actual Near Final Budget General Administration 61XX Payroll Costs $ 8,039,538 $ 8,138,871 $ 7,693,236 62XX Purchased and Contracted Services 1,708,911 2,224,086 2,037,311 63XX Supplies and Materials 329, , ,084 64XX Other Operating Expenditures 661, ,353 1,018,664 66XX Capital Outlay Total Function 41 $ 10,738,540 $ 11,232,461 $ 11,096, Facilities Maintenance & Operations 61XX Payroll Costs $ 27,315,520 $ 28,282,331 $ 28,787,882 62XX Purchased and Contracted Services 14,953,491 16,436,532 19,653,482 63XX Supplies and Materials 4,603,949 4,521,676 3,906,567 64XX Other Operating Expenditures 579, , ,330 66XX Capital Outlay 529, , ,169 Total Function 51 $ 47,982,286 $ 50,274,144 $ 53,347, Security & Monitoring Services 61XX Payroll Costs $ 70,192 $ 78,726 $ 38,547 62XX Purchased and Contracted Services 3,737,349 3,965,509 3,904,013 63XX Supplies and Materials 63, ,627 48,154 64XX Other Operating Expenditures 3,804 4,852 5,130 66XX Capital Outlay 7, Total Function 52 $ 3,881,519 $ 4,324,714 $ 3,995, Data Processing Services 61XX Payroll Costs $ - $ - $ - 62XX Purchased and Contracted Services $ 3,292,691 $ 3,607,202 $ 3,341,693 63XX Supplies and Materials XX Other Operating Expenditures ,330 66XX Capital Outlay Total Function 53 $ 3,293,060 $ 3,607,564 $ 3,345, Community Services 61XX Payroll Costs $ 235,833 $ 215,539 $ 251,793 62XX Purchased and Contracted Services 19,330 11,272 29,731 63XX Supplies and Materials 18,349 12,739 9,700 64XX Other Operating Expenditures 31,194 32,471 69,958 66XX Capital Outlay Total Function 61 $ 304,705 $ 272,022 $ 361,182 North East ISD Budget

108 General Fund Expenditures by Object Within Function Actual Near Final Budget Facilities Acquisition & Construction 61XX Payroll Costs $ - $ - $ - 62XX Purchased and Contracted Services XX Supplies and Materials XX Other Operating Expenditures XX Capital Outlay $ 41,927 $ - $ - Total Function 81 $ 41,927 $ - $ - 93-Payment To Fiscal Agent 64XX Other Operating Expenditures $ 297,842 $ 200,986 $ 400,000 Total Function 93 $ 297,842 $ 200,986 $ 400, Juvenile Justice Alternative Education 62XX Purchased and Contracted Services $ 9,510 $ 128,650 $ 412,069 Total Function 95 $ 9,510 $ 128,650 $ 412, Other Governmental Charges 62XX Purchased and Contracted Services $ 2,383,284 $ 2,255,319 $ 2,340,215 Total Function 99 $ 2,383,284 $ 2,255,319 $ 2,340, Other Uses 8900 Other Uses $ 2,294,594 $ 560,930 $ 550,000 Total Function 00 $ 2,294,594 $ 560,930 $ 550,000 Total Expenditures & Other Uses $ 475,946,661 $ 485,491,426 $ 494,829,982 North East ISD Budget

109 General Fund Division of Business Services and Operations Summary by Major Function and Object Actual Near Final Budget Expenditures by Function Instruction $ 76,019 $ 120,425 $ 1,800 Instructional Resources & Media Services 122, , ,870 Instructional Leadership 57,299 58,242 58,346 School Leadership 127, , ,106 Health Services 1,159, ,685 1,009,569 Student Transportation 14,773,726 15,545,007 14,787,325 General Administration 4,849,943 5,133,502 4,483,172 Facilities Maintenance & Operations 29,188,559 30,984,739 33,928,261 Security & Monitoring Services 37, ,339 17,394 Data Processing Services 727, , ,226 Community Services 18, Other Governmental Charges 2,383,284 2,255,319 2,340,215 Total Expenditures $ 53,522,405 $ 56,272,632 $ 57,658,283 Actual Near Final Budget Expenditures by Object Payroll Costs $ 27,806,465 $ 28,843,716 $ 26,916,539 Prof/Contracted Services 18,242,281 19,647,002 22,907,611 Supplies & Materials 5,866,327 6,156,112 6,095,670 Other Operating 1,083,378 1,119,429 1,433,294 Capital Outlay 523, , ,169 Total Expenditures $ 53,522,405 $ 56,272,632 $ 57,658,283 North East ISD Budget

110 General Fund Division of Campus Support and Human Resources Summary by Major Function and Object Actual Near Final Budget Expenditures by Function Instruction $ 793,059 $ 773,225 $ 1,046,433 Curriculum/Instructional Staff Development 557, , ,047 Instructional Leadership 1,139,969 1,261,882 1,049,677 School Leadership 718, , ,705 Guidance & Counseling 665-2,040 Social Work Services 1,300,945 1,301,227 1,293,220 Health Services 57 13,494 10,800 Student Transportation 13,325 11,882 20,000 Extracurricular Activities 3,664,699 3,687,129 3,727,037 General Administration 2,393,834 2,436,192 2,261,223 Facilities Maintenance & Operations 726, , ,459 Security & Monitoring Services 249, , ,225 Data Processing Services 55,760 41, ,160 Community Services 15,000 15,078 12,384 Juvenile Justice Alternative Education 9, , ,069 Total Expenditures $ 11,638,364 $ 11,976,448 $ 12,579,478 Actual Near Final Budget Expenditures by Object Payroll Costs $ 7,479,841 $ 7,829,878 $ 7,704,560 Prof/Contracted Services 1,848,265 1,788,963 2,048,740 Supplies & Materials 1,302,958 1,378,087 1,633,881 Other Operating 965, ,824 1,192,297 Capital Outlay 41,536 26,696 - Total Expenditures $ 11,638,364 $ 11,976,448 $ 12,579,478 North East ISD Budget

111 General Fund Division of Instruction and Technology Summary by Major Function and Object Actual Near Final Budget Expenditures by Function Instruction $ 2,470,111 $ 2,307,927 $ 2,418,615 Instructional Resources & Media Services 953,628 1,005, ,052 Curriculum/Instructional Staff Development 6,056,663 5,253,354 6,169,962 Instructional Leadership 2,671,529 2,418,355 2,571,088 School Leadership 213, ,082 48,056 Guidance & Counseling 1,369,395 1,418,912 1,635,736 Social Work Services 95,976 92,503 88,257 Health Services 75,730 50, ,728 Student Transportation 31,466 63,180 30,500 Extracurricular Activities 64,431 80,664 69,748 General Administration 556, , ,615 Facilities Maintenance & Operations 1,058,947 1,257,293 1,235,555 Security & Monitoring Services 94,116 62,579 37,486 Data Processing Services 163, ,646 98,181 Community Services 12,133 9,988 26,276 Payments To Fiscal Agent 297, ,986 - Total Expenditures $ 16,185,086 $ 15,330,167 $ 16,538,855 Actual Near Final Budget Expenditures by Object Payroll Costs $ 10,620,920 $ 10,076,699 $ 9,465,779 Prof/Contracted Services 2,794,133 3,208,026 3,505,341 Supplies & Materials 2,038,324 1,459,931 3,055,690 Other Operating 722, , ,045 Capital Outlay 9,589 23,795 - Total Expenditures $ 16,185,086 $ 15,330,167 $ 16,538,855 North East ISD Budget

112 Debt Service Fund The Debt Service Fund accounts for payments of principal, interest, and related fees on the District s long-term debt obligations. The fund is also used to account for the accumulation of resources for the payment of principal and interest in future years. All debt currently outstanding is in the form of general obligation bonds. Currently, the only resource for payment of the debt is Interest & Sinking (I&S) property taxes. Since fiscal year , North East ISD has maintained an I&S tax rate of $ per $100 of taxable property value. Although the District s fiscal year is from July 1 to June 30, the tax rate must be set to ensure adequate funds are available through October of the subsequent fiscal year, as taxes are not assessed in Bexar County until September, and significant tax receipts to not begin until November. Below is a summary of all outstanding general obligation bonds as of June 30, Summary of Outstanding Debt Description Original Amount Outstanding June 30, 2010 Principal Due Interest Due Unlimited Tax School Building Bonds Series 1999 Series 2004 Series 2005 $ 211,000, ,000, ,000,000 $ 10,975, ,320, ,105,000 $ - 6,625,000 2,905,000 $ 493,875 8,272,738 5,142,248 Series 2007A Series 2007A Capital Appreciation 417,000,000 71,590, ,000,000 71,803,427-9,145,000 20,850,000 - Unlimited Tax Refunding Bonds Series 2004 Series 2004 Capital Appreciation Series 2005 Series ,435, , ,580, ,795, ,950, ,739 71,625, ,795,000 8,615, ,959,381-3,581,250 12,881,925 Total $1,709,709,349 $1,263,332,116 $27,290,000 $59,181,417 Debt Service Fund Balance $100 $90 $80 Millions $70 $60 $50 $40 $30 $20 $10 $ Budget North East ISD Budget

113 Debt Service Fund Five Year Summary of Revenue and Expenditures Actual Actual Actual Near Final Budget Revenues Local Sources $ 68,988,325 $ 92,173,994 $ 100,183,683 $ 99,120,438 $ 99,395,169 State Sources 1,712,379-3, Total Revenues $ 70,700,704 $ 92,173,994 $ 100,187,555 $ 99,120,438 $ 99,395,169 Expenditures Principal $ 27,890,000 $ 29,120,000 $ 20,035,000 $ 35,330,000 $ 27,290,000 Interest and Fees: 43,215,567 51,800,742 61,624,250 60,437,916 59,191,416 Total Expenditures $ 71,105,567 $ 80,920,742 $ 81,659,250 $ 95,767,916 $ 86,481,416 Other Sources (Uses) Other Sources 284,870,706 6,939, Other Uses (283,136,459) Total Other Sources (Uses) 1,734,247 6,939,088 $ - $ - $ - Revenues and Other Sources 1,329,384 18,192,340 18,528,305 3,352,522 12,913,753 Over (Under) Expenditures Fund Balance (Beginning) 34,572,264 35,901,648 54,093,988 72,622,293 75,974,815 Fund Balance (Ending) $ 35,901,648 $ 54,093,988 $ 72,622,293 $ 75,974,815 $ 88,888,568 Interest & Sinking Tax Rate $ $ $ $ $ North East ISD Budget

114 Fiscal Year Ending Total Debt Service Fund Debt Service Requirements to Maturity by Issue Series 1999 Series 2004 Series 2004 Refunding June 30 Principal Interest Principal Interest Principal Interest Principal Interest 2011 $ 27,290,000 $ 59,181,416 $ - $ 493,875 $ 6,625,000 $ 8,272,738 $ 8,615,000 $ 7,959, ,685,000 58,062, ,875 6,850,000 7,935,863 17,975,000 7,286, ,035,000 56,623, ,875 7,075,000 7,587,738 18,945,000 6,317, ,475,000 55,129, ,875 7,325,000 7,227,738 19,945,000 5,311, ,975,000 53,545, ,875 7,600,000 6,854,613 20,995,000 4,270, ,225,000 51,924, ,875 7,900,000 6,467,113 20,910,000 3,214, ,260,000 49,897, ,875 8,225,000 6,063,988 18,165,000 2,237, ,440,000 47,771, ,875 8,550,000 5,644,613 12,395,000 1,473, ,395,000 45,944, ,875 8,925,000 5,207,738 12,965, , ,270,000 43,818, ,875 9,300,000 4,752,113 5,450, , ,545,000 41,607, ,875 4,025,000 4,418,988 2,370, , ,710,000 39,514, ,875 4,200,000 4,213,363 2,485,000 62, ,470,000 37,212, ,875 4,395,000 3,998, ,080,000 34,857, ,875 4,600,000 3,773, ,430,000 32,335,206 10,975, ,938 11,650,000 3,396, ,200,000 29,901, ,045,000 3,008, ,055,000 27,133, ,285,000 2,749, ,055,000 24,184, ,545,000 2,479, ,255,000 21,116, ,810,000 2,195, ,780,000 17,892, ,100,000 1,897, ,085,000 15,176, ,400,000 1,585, ,325,000 12,906, ,710,000 1,257, ,190,000 10,572, ,040, , ,105,000 8,070, ,140, , ,675,000 5,343, ,365,000 3,629, ,735,000 2,226, ,170, , Totals $ 1,271,280,000 $ 886,333,387 $ 10,975,000 $ 7,161,188 $ 170,320,000 $ 102,424,003 $ 161,215,000 $ 39,534,025 Fiscal Year Ending Series 2005 Series 2005 Refunding Series 2007 Refunding Series 2007A June 30 Principal Interest Principal Interest Principal Interest Principal Interest 2011 $ 2,905,000 $ 5,142,248 $ - $ 3,581,250 $ - $ 12,881,925 $ 9,145,000 $ 20,850, ,055,000 5,033,310-3,581,250-12,881,925 18,805,000 20,850, ,210,000 4,911,110-3,581,250-12,881,925 18,805,000 20,850, ,375,000 4,782,710-3,581,250-12,881,925 10,830,000 20,850, ,550,000 4,613,960-3,581,250-12,881,925 10,830,000 20,850, ,730,000 4,436,460-3,581,250 4,855,000 12,881,925 10,830,000 20,850, ,920,000 4,277,935-3,581,250 5,120,000 12,663,450 10,830,000 20,579, ,125,000 4,121,135-3,581,250-12,433,050 11,370,000 20,024, ,335,000 3,947,885 8,230,000 3,581,250-12,433,050 11,940,000 19,441, ,555,000 3,761,480 8,590,000 3,169,750 7,840,000 12,433,050 12,535,000 18,829, ,790,000 3,562,199 8,975,000 2,740,250 8,220,000 12,021,450 13,165,000 18,187, ,035,000 3,351,439 7,630,000 2,291,500 13,540,000 11,589,900 13,820,000 17,512, ,295,000 3,127,381 8,020,000 1,910,000 14,245,000 10,879,050 14,515,000 16,804, ,565,000 2,889,106 3,640,000 1,509,000 13,035,000 10,131,188 15,240,000 16,060, ,850,000 2,638,681 3,845,000 1,327,000 10,110,000 9,446,850 16,000,000 15,279, ,150,000 2,382,744 4,050,000 1,134,750 22,155,000 8,916,075 16,800,000 14,459, ,030,000 2,099,844 4,270, ,250 26,830,000 7,752,938 17,640,000 13,598, ,795,000 1,948,344 4,520, ,750 24,670,000 6,344,363 18,525,000 12,694, ,145,000 1,634,075 4,785, ,750 26,065,000 5,049,188 19,450,000 11,744, ,515,000 1,312,550 5,070, ,500 17,675,000 3,680,775 20,420,000 10,748, ,695,000 1,136, ,550,000 2,752,838 21,440,000 9,701, ,300, , ,800,000 2,093,963 22,515,000 8,602, ,860, , ,650,000 1,631,963 23,640,000 7,448, ,055, , ,090, ,338 24,820,000 6,237, ,265, , ,345, ,613 26,065,000 4,965, ,365,000 3,629, ,735,000 2,226, ,170, ,250 Totals $ 114,105,000 $ 73,239,783 $ 71,625,000 $ 48,710,750 $ 246,795,000 $ 220,635,638 $ 496,245,000 $ 394,628,001 North East ISD Budget

115 Debt Service Fund Debt Service Requirements to Maturity by Issue Fiscal Year Cumulative Ending Percent Percent June 30 Principal Interest Total Retired Retired 2011 $ 27,290,000 $ 59,181,416 $ 86,471, % 4.0% ,685,000 58,062, ,747, % 8.9% ,035,000 56,623, ,658, % 13.7% ,475,000 55,129,235 96,604, % 18.2% ,975,000 53,545,891 96,520, % 22.7% ,225,000 51,924, ,149, % 27.3% ,260,000 49,897,123 96,157, % 31.8% ,440,000 47,771,548 84,211, % 35.7% ,395,000 45,944,673 92,339, % 39.9% ,270,000 43,818,893 92,088, % 44.2% ,545,000 41,607,386 83,152, % 48.1% ,710,000 39,514,701 86,224, % 52.1% ,470,000 37,212,919 83,682, % 55.9% ,080,000 34,857,031 76,937, % 59.5% ,430,000 32,335,206 90,765, % 63.7% ,200,000 29,901,056 84,101, % 67.6% ,055,000 27,133,269 84,188, % 71.5% ,055,000 24,184,819 84,239, % 75.4% ,255,000 21,116,125 84,371, % 79.3% ,780,000 17,892,438 70,672, % 82.6% ,085,000 15,176,250 59,261, % 85.4% ,325,000 12,906,000 59,231, % 88.1% ,190,000 10,572,875 58,762, % 90.8% ,105,000 8,070,078 66,175, % 93.9% ,675,000 5,343,325 39,018, % 95.7% ,365,000 3,629,375 30,994, % 97.1% ,735,000 2,226,875 30,961, % 98.6% ,170, ,250 30,924, % 100.0% Totals $ 1,271,279,999 $ 886,333,387 $ 2,157,613, % North East ISD Budget

116 Debt Comparison with Comparable Districts Total Debt as of August 31, 2009 $2,500 20% $2,250 18% $2,000 16% $1,750 14% $1,500 12% Millions $1,250 $1,000 10% 8% $750 6% $500 4% $250 2% $0 0% Total Debt 5 Year ADA Growth This graph compares NEISD with districts that have a comparable ADA (+/- 50% of NEISD) as well as a comparable ADA growth rate number for the last 5 years (+/- 50% of NEISD). In relation to other fast-growth districts in Texas, NEISD has a larger amount of debt. This is primarily due to NEISD's philosophy of rebuilding our oldest schools at the same time as building new schools to maintain equitable education environments for all students. Source: Texas Bond Review Board North East ISD Budget

117 Debt Information for 50 Largest Texas School Districts Sorted by Debt-to-Value Ratio As of August 31, 2009 Debt to I&S Wealth ADA Growth ISD Name Assessed Value Tax Rate Per ADA Number Percent La Joya 16.83% $0.282 $78,948 4, % Laredo 9.94% $0.234 $92,373 (547) (2.36%) Grand Prairie 9.79% $0.425 $197,956 3, % Pharr-San Juan-Alamo 8.78% $0.231 $119,639 3, % Spring 8.53% $0.420 $259,385 6, % Mansfield 7.81% $0.410 $303,391 9, % Leander 7.47% $0.339 $471,535 9, % Frisco 7.45% $0.370 $522,285 16, % Keller 7.13% $0.377 $367,769 7, % Mesquite 6.59% $0.360 $188,958 3, % Humble 6.04% $0.350 $306,171 6, % Irving 5.43% $0.371 $310,378 1, % McKinney 5.27% $0.477 $405,688 6, % Cypress-Fairbanks 5.24% $0.310 $363,218 23, % Katy 5.19% $0.400 $341,207 13, % Socorro 5.10% $0.223 $176,661 7, % Lamar Consolidated 4.90% $0.278 $453,521 4, % Northside 4.76% $0.263 $373,936 15, % North East 4.60% $0.363 $461,438 7, % Conroe 4.59% $0.230 $408,538 9, % Clear Creek 4.44% $0.320 $439,284 3, % Fort Bend 4.36% $0.230 $346,440 6, % Klein 4.31% $0.270 $310,879 7, % Pasadena 4.21% $0.280 $227,567 4, % Lewisville 4.04% $0.340 $482,243 6, % Brownsville 3.98% $0.073 $109,115 1, % Edinburg Cons 3.98% $0.150 $195,070 4, % San Antonio 3.86% $0.210 $243,423 (4,328) (8.11%) Ysleta 3.51% $0.160 $153,034 (2,294) (5.28%) El Paso 3.43% $0.195 $246,968 (909) (1.56%) Round Rock 2.97% $0.315 $522,995 5, % Plano 2.85% $0.263 $660,789 2, % Spring Branch 2.83% $0.293 $616,762 (958) (3.12%) Garland 2.80% $0.213 $261,780 2, % Aldine 2.79% $0.159 $232,342 4, % United 2.77% $0.155 $256,642 6, % Fort Worth 2.77% $0.217 $339,203 (2,208) (2.95%) Carrollton-Farmers Branch 2.73% $0.322 $572, % Richardson 2.45% $0.300 $542, % Killeen 2.20% $0.110 $163,812 4, % Dallas 2.15% $0.143 $567,733 (7,961) (5.23%) Corpus Christi 2.11% $0.116 $297,947 (837) (2.30%) Alief 2.03% $0.215 $287,601 (386) (0.92%) Arlington 1.98% $0.232 $355,484 (265) (0.46%) McAllen 1.98% $0.105 $261, % Houston 1.74% $0.150 $601,484 (14,002) (7.22%) Amarillo 1.65% $0.090 $250,933 1, % Lubbock 1.52% $0.195 $321,281 (1,117) (4.14%) Austin 1.26% $0.123 $779,775 1, % Ector County 0.93% $0.089 $373, % Averages 4.52% $0.255 $344,480 3, % Source: Texas Bond Review Board North East ISD Budget

118 Debt Information for 50 Largest Texas School Districts Sorted by Debt-per-Capita As of August 31, 2009 Debt Wealth Wealth ADA Growth ISD Name Per Capita Per Capita Per ADA Number Percent Frisco $9,209 $123,594 $522,285 16, % Leander $8,885 $118,973 $471,535 9, % Keller $5,745 $80,610 $367,769 7, % Lamar Consolidated $5,229 $106,678 $453,521 4, % Mansfield $4,370 $55,977 $303,391 9, % Humble $4,230 $70,025 $306,171 6, % Katy $3,957 $76,266 $341,207 13, % Spring $3,675 $43,100 $259,385 6, % McKinney $3,616 $68,656 $405,688 6, % La Joya $3,459 $20,548 $78,948 4, % Lewisville $3,402 $84,102 $482,243 6, % North East $3,340 $72,644 $461,438 7, % Northside $3,333 $70,065 $373,936 15, % Conroe $3,332 $72,669 $408,538 9, % Grand Prairie $3,330 $34,003 $197,956 3, % Round Rock $3,193 $107,605 $522,995 5, % Pharr-San Juan-Alamo $3,188 $36,302 $119,639 3, % Klein $2,842 $65,863 $310,879 7, % Clear Creek $2,834 $63,886 $439,284 3, % Spring Branch $2,761 $97,583 $616,762 (958) (3.12%) Irving $2,631 $48,448 $310,378 1, % Plano $2,614 $91,596 $660,789 2, % Mesquite $2,611 $39,649 $188,958 3, % Fort Bend $2,465 $56,523 $346,440 6, % Cypress-Fairbanks $2,396 $45,736 $363,218 23, % Socorro $2,224 $43,580 $176,661 7, % Carrollton-Farmers Branch $2,000 $73,335 $572, % Laredo $1,968 $19,800 $92,373 (547) (2.36%) Pasadena $1,966 $46,651 $227,567 4, % United $1,937 $69,822 $256,642 6, % Edinburg Cons $1,680 $42,244 $195,070 4, % Richardson $1,643 $67,049 $542, % Houston $1,574 $90,332 $601,484 (14,002) (7.22%) Aldine $1,485 $53,193 $232,342 4, % San Antonio $1,458 $37,776 $243,423 (4,328) (8.11%) El Paso $1,353 $39,440 $246,968 (909) (1.56%) Dallas $1,349 $62,880 $567,733 (7,961) (5.23%) Fort Worth $1,260 $45,543 $339,203 (2,208) (2.95%) Garland $1,256 $44,847 $261,780 2, % Arlington $1,098 $55,353 $355,484 (265) (0.46%) Corpus Christi $1,073 $50,816 $297,947 (837) (2.30%) Ysleta $1,005 $28,621 $153,034 (2,294) (5.28%) Alief $1,003 $49,365 $287,601 (386) (0.92%) Austin $988 $78,330 $779,775 1, % Brownsville $984 $24,704 $109,115 1, % McAllen $909 $45,991 $261, % Killeen $745 $33,824 $163,812 4, % Amarillo $727 $44,043 $250,933 1, % Ector County $685 $73,650 $373, % Lubbock $661 $43,401 $321,281 (1,117) (4.14%) Averages $2,594 $60,314 $344,480 3, % Source: Texas Bond Review Board North East ISD Budget

119 Computation of Debt Margin Budget Year Net Taxable Property Value $ 22,078,454,440 $ 23,591,128,564 $ 26,074,943,045 $ 25,985,753,661 $ 25,389,993,780 Debt limit - 10% of property value $ 2,207,845,444 $ 2,359,112,856 $ 2,607,494,305 $ 2,598,575,366 $ 2,538,999,378 Bonds Payable, beginning of year $ 897,844,915 $ 850,023,371 $ 1,312,564,669 $ 1,295,672,580 $ 1,255,968,782 Amount available in Debt Service Fund 34,572,263 35,901,648 54,093,988 72,622,293 75,974,815 Applicable debt $ 863,272,652 $ 814,121,723 $ 1,258,470,681 $ 1,223,050,287 $ 1,179,993,967 Debt margin $ 1,344,572,792 $ 1,544,991,133 $ 1,349,023,624 $ 1,375,525,079 $ 1,359,005,411 Applicable Debt as a Percent of Net Taxable Value 6.09% 6.55% 4.83% 4.71% 4.65% Maximum Legal I&S Tax Rate $ $ $ $ $ Adopted I&S Tax Rate $ $ $ $ $ Amount under Legal Limit $ $ $ $ $ Value of I&S Levy Available (up to legal limit) $ 42,169,848 $ 32,343,437 $ 35,748,747 $ 35,626,468 $ 34,809,681 Available Levy as % of Debt Service Budget 59.31% 39.97% 43.78% 37.20% 40.25% Texas Statutes do not prescribe a debt limit; however, by custom, a practical economic debt limit of 10% of property valuation is used. Texas statutues do limit the Interest & Sinking tax rate to $0.50. NEISD has considerable taxing capacity available before reaching that amount. Despite fast growth and considerable capital needs, the District has maintained borrowing capacity to meet future needs. North East ISD Budget

120 School Nutrition Services Fund The District s school nutrition service operations are accounted for in the School Nutrition Services Special Revenue Fund. Although special revenue funds are generally not included in the annual budget adopted by the Board of Trustees, Texas Education Agency regulations require inclusion of the School Nutrition Services Fund. Below is a chart representing the School Nutrition Services Fund s portion of the adopted budget. The projected increase in payments for meals is primarily due to an increase in enrollment not pricing. Increases in projected federal revenues are also due to projected increases in free and reduced meal participation and the reimbursement rate provided by the federal government. Actual Near Final Budget (In Thousands) Meal Payments from Students & Adults $13,621 $13,486 $14,033 Other Total Local $13,735 $13,528 $14,053 State Match $164 $170 $176 TRS On-behalf Total State $677 $647 $822 Federal Reimbursements $12,132 $13,598 $14,118 USDA Commodities 1,191 1,498 1,380 Total Federal $13,323 $15,096 $15,498 Sales of Equipment Total Revenues $27,738 $29,400 $30,373 NEISD s School Nutrition Services Department serves an average of 1,142,181 meals per month. School Nutrition Services contributes to the learning experience of students by providing a variety of nutritious meals. Studies have proven that students learn and perform better if they are not hungry. Therefore, this service is an important contributing factor in student performance. Revenue sources come from local, state, and federal sources. The budget includes 46.3% of total revenues coming from local sources and 51% from federal. The following table details the types of revenues received by the School Nutrition Services fund: North East ISD Budget

121 School Nutrition Services Fund Fund Balance Analysis The fund balance for School Nutrition Services should not exceed three months of average food service operations expenditures. Currently, the fund balance is projected for at approximately $7.97 million, which is not within these guidelines. A plan has been implemented to bring the fund balance back into compliance. This plan includes increases in capital expenditures, primarily for vehicles and equipment. Additional food expenditures are projected due to changes in menu planning. It is expected that by the end of , the fund balance will be within the guidelines. Thousands $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Fund Balance as a Percentage of Expenditures % 25% 20% 15% 10% 5% 0% Fund Balance % of Total Expenditures North East ISD Budget

122 School Nutrition Services Fund Summary of Revenues and Expenditures Actual Near Final Budget Revenues Local Sources $ 13,735,562 $ 13,527,712 $ 14,053,436 State Sources 676, , ,677 Federal Sources 13,323,605 15,095,836 15,497,754 Proceeds from sale of fixed assets 2, ,936 - Total Revenues $ 27,738,463 $ 29,399,596 $ 30,372,867 Expenditures by Object Payroll Cost $ 14,147,311 $ 13,841,733 $ 13,959,182 Professional/Contracted Services 1,456,676 1,836,541 1,826,250 Supplies & Materials 11,166,533 12,023,317 13,903,103 Other Operating 57,271 35,795 81,000 Capital Outlay 82,021 58, ,000 Total Expenditures $ 26,909,812 $ 27,795,727 $ 30,119,535 Revenues Over/(Under) Expenditures $ 828,651 $ 1,603,869 $ 253,332 Fund Balance, Beginning 5,282,183 6,110,834 7,714,703 Fund Balance, Ending $ 6,110,834 $ 7,714,703 $ 7,968,035 Expenditure Summary by Function Expenditures by Function Food Services $ 24,522,414 $ 26,412,911 $ 28,673,785 Plant Maintenance & Operations 2,288,373 1,252,264 1,320,000 Security & Monitoring Services 99, , ,750 Total Expenditures $ 26,909,812 $ 27,795,727 $ 30,119,535 North East ISD Budget

123 Special Revenue Funds The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Elementary and Secondary Education Act ( ESEA ), Title IV, Part A Safe and Drug Free Schools and Communities Act These funds are provided as a result of the NCLB Act of 2001 and are to be used to develop age-appropriate comprehensive violence and drug/alcohol education prevention programs. This program is authorized under P. L (84.186A) (U. S. Department of Education) ESEA, Title X, Part C Education for the Homeless Children and Youth These funds are to be used to account, on a project basis, for funds allocated to local educational agencies to enable schools to provide a variety of staff development and supplemental services, including inservice training, counseling, psychological services and tutoring. This program is authorized under P. L , McKinney-Vento Homeless Education Assistance Improvement of 2001 as amended by NCLB Act of 2001, Title X, Part C. (84.196) (U. S. Department of Education) ESEA, Title I, Part A Improving Basic Programs These funds are to be used to account, on a project basis, for funds allocated to local educational agencies to enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and to meet the challenging State performance standards developed for all children. This program is authorized under P. L (84.010A) (U. S. Department of Education) Adult Basic Education, Federal These funds are to be used to account, on a project basis, for funds granted to provide or support programs for adult education and literacy services to adults who are beyond compulsory school age attendance, and do not have a high school diploma, or lack sufficient mastery of basic educational skills to function effectively in society, or are unable to speak, read or write the English language; and are not enrolled in school. Education services include basic educational skills (reading, writing, speaking and mathematics), English as a Second Language instruction, and secondary level competencies for acquisition of a high school diploma or equivalent. This includes sections 322, 326, and 353 under P. L as amended by P. L , The National Literacy Act. (84.002A) (U. S. Department of Education) Temporary Assistance for Needy Families (TANF) These funds are to be used to account, on a project basis, for funds granted to provide educational services to undereducated adults who receive cash assistance under Temporary Assistance for Needy Families. Recipients of benefits are required to participate in adult basic education or job training programs as a condition of eligibility. Educational services include basic educational skills, English as a second language, instruction, and secondary level competencies for acquisition of a high school diploma or its equivalent. This program is authorized under P. L (93.558) (U. S. Department of Health and Human Services) Individuals With Disabilities Education Act Part B ( IDEA-B ), Formula These funds are to be used to account, on a project basis, for funds granted to operate educational programs for children with disabilities. This funding also includes capacity building and improvement (sliver) sub-grants. (84.027) (U. S. Department of Education) IDEA-B, Preschool These funds are to be used to account, on a project basis, for funds granted for preschool children with disabilities. This program is authorized under P. L (84.173) (U.S. Department of Education) National Breakfast and Lunch Program Operations of the District s cafeterias are accounted for in this fund. Revenue sources are principally from the sale of meals to students, teachers, and others, and the National School Lunch and Breakfast program. (10.555, , ) North East ISD Budget

124 Career and Technical - Basic Grant These funds are to be used to account, on a project basis, for funds granted to provide career and technology education to develop new and/or improve career and technology education programs for paid and unpaid employment. Full participation in the basic grant is from individuals who are members of special populations. (84.048) (U. S. Department of Education) In addition, funds are also provided for the Tech Prep Education Program from the U.S. Department of Education through the Texas Higher Education Coordinating Board. (84.243) ESEA, Title II, Part A - Teacher and Principal Training and Recruiting These funds are used to provide financial assistance to LEAs to increase student academic achievement through improving teacher and principal quality and increasing the number of highly qualified teachers in classrooms and highly qualified principals and assistant principals in schools, and hold LEAs accountable for improving student academic achievement. This program is authorized under P. L (84.367A) (U. S. Department of Education) Title II, Part D, Subpart 1 - Enhancing Education through Technology These funds are used to account, on a project basis, for funds granted for the implementation and support of a comprehensive system that effectively uses technology in elementary and secondary schools to improve student academic achievement. This program is authorized under P. L (84.318) (U.S. Department of Education) Title III, Part A - English Language Acquisition and Language Enhancement These funds are used to account, on a project basis, for funds granted to improve the education of limited English proficient children, by assisting the children to learn English and meet challenging State academic content and student academic achievement standards. This program is authorized under P. L (84.365A) (U.S. Department of Education) Title IV, Part B - 21st Century Community Learning Centers This fund classification is to be used to account, on a project basis, for funds granted to provide opportunities for communities to establish or expand activities in community learning centers that provide opportunities for academic enrichment and additional services to students and literary and related educational development for families of students (P. L , Title IV, Part B) (84.287) (U.S. Department of Education). ARRA of 2009, Title XIV, State Fiscal Stabilization Fund This fund classification is to be used to account, on a project basis, for funds granted to improve basic programs authorized under by the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001; the Individuals with Disabilities Education Act (IDEA); the Adult and Family Literacy Act; the Carl D. Perkins and Technical Education Act of This program is authorized under the American Recovery and Reinvestment Act (ARRA) of 2009, Title XIV. (84.394) Medicaid Administrative Claiming Program - MAC These funds are used to account, on a project basis, for funds allocated to local education agencies for reimbursement of eligible administrative costs for activities attributed to the implementation of the Medicaid state plan. (93.778) Title II, Part D, Subpart 1 - Enhancing Education through Technology ARRA (Stimulus) These funds are used to account, on a project basis, for funds granted for the implementation and support of a comprehensive system that effectively uses technology in elementary and secondary schools to improve student academic achievement. This program is authorized under P. L (84.386) (U.S. Department of Education) (American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII) ESEA, Title X, Part C Education for the Homeless Children and Youth ARRA (Stimulus) These funds are to be used to account, on a project basis, for funds allocated to local educational agencies to enable schools to provide a variety of staff development and supplemental services, including inservice training, counseling, psychological services and tutoring. This program is authorized under P. L , McKinney-Vento Homeless Education Assistance Improvement of 2001 as amended by NCLB Act of 2001, Title X, Part C. (84.387) (U. S. Department of Education). (American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII) North East ISD Budget

125 IDEA - Part B, Formula ARRA (Stimulus) These funds are to be used to account, on a project basis, for funds granted to operate educational programs for children with disabilities. (84.391) (U. S. Department of Education) (American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII) IDEA- Part B, Preschool ARRA (Stimulus) These funds are to be used to account, on a project basis, for funds granted for preschool children with disabilities. This program is authorized under P. L (84.392) (U.S. Department of Education) (American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII) ESEA, Title I, Part A Improving Basic Programs ARRA (Stimulus) These funds are to be used to account, on a project basis, for funds allocated to local educational agencies to enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and to meet the challenging State performance standards developed for all children. This program is authorized under P. L (84.389) (U. S. Department of Education) (American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII) NASA Student Launch Initiative These funds are used to engage students in a learning opportunity that involves design, construction, test, and launch of a reusable launch vehicle and sciencerelated payload. The initiative is intended to encourage students to pursue careers in engineering or science-related fields. Homeless Education Disaster Assistance Program These funds are to be used to account, on a project basis, for funds allocated to local educational agencies whose enrollment of homeless students increased as a result of a natural disaster that occurred in calendar year The program supports activities that address the educational and related needs of homeless students consistent with the requirements of section 723(d) of the McKinney-Vento Homeless Assistance Act. NASA Student Launch Initiative These funds are used to engage students in a learning opportunity that involves design, construction, test, and launch of a reusable launch vehicle and sciencerelated payload. The initiative is intended to encourage students to pursue careers in engineering or science-related fields. Title VI, Part A, Summer School LEP These funds are to be used to account, on a project basis, for funds granted for summer school programs for LEP students only if a bilingual program is part of the standard curriculum. Monies may be used to fund both required summer school and voluntary summer school LEP students. (84.369A) SSA IDEA-B, Discretionary These funds are used to account, on a project basis, for funds used to support an Education Service Center ( ESC ), special education component, priority projects in secondary special education, and adaptive/assertive devices component through ESCs, private residential placements, state school student support, support of students in care and treatment or hospital facilities, enhanced Braille production, and other emerging needs. (84.027) (U. S. Department of Education) SSA IDEA-B, Deaf These funds are used to account, on a project basis, for funds granted to provide educational programs for children with disabilities. This fund includes capacity building and improvement (sliver) deaf subgrants. (84.027) (U. S. Department of Education) SSA IDEA-B, Preschool Deaf These funds are used to account, on a project basis, for funds granted to preschool children with disabilities. This program is authorized under P.L (84.173) (U. S. Department of Education) SSA IDEA-C, Early Intervention (Deaf) These funds are used to account, on a project basis, for funds granted to assist local Regional Day School for the Deaf programs and the Texas School for the Deaf in providing direct services to hearing-impaired infants and toddlers, age s birth through two years of age. This program provides supplemental and appropriate services to students that are provided by a Certified and trained teacher. This program is authorized under P. L (84.181A) (U. S. Department of Education) North East ISD Budget

126 Adult Basic Education (ABE) - State These funds are to be used to account, on a project basis, for funds granted to provide or support programs for adult education and literacy services to adults 16 years of age and above, who do not have a high school diploma and are out of school. State Supplemental Visually Impaired (SSVI) These funds are to be used to account, on a project basis, for funds granted to provide supplemental services for the visually impaired. Non-educational Community-Based Support These funds are to be used to account, on a project basis for funds granted for the provision of noneducational community-based support services to students with disabilities who would remain or have to be placed in residential facilities for educational reasons without the provision of these services. The support services may include transportation, respite for the parents, case management, social work and inhome family support. (TEC ) Life Skills Program These funds are to be used to account, on a project basis, for funds granted to provide pregnant and parenting students the services needed to keep them in school until completion. (TEC ) Advanced Placement Incentives These funds are to be used to account, on a project basis, for funds awarded to school Districts under the Texas Advanced Placement Award Incentive Program, Chapter 28, Subchapter C, TEC. Investment Capital These funds are to be used to account, on a project basis, for funds to help individual public school campuses implement practices and procedures to increase parental involvement through staff development and training. (TEC 7.024) Student Success Initiative These funds are to be used to account, on a project basis, for funds granted for teacher training and allocations to schools to implement scientific, research-based programs for students who have been identified as unlikely to achieve the third grade TAKS reading standard by the end of the third grade. Texas Science, Technology, Engineering and Math (T-STEM) Academy / First Robotic Challenge These funds are to be used to account, on a project basis, for funds granted to support the design and implementation of a T-STEM Academy. This Academy is designed to increase student achievement by engaging students through innovative science and math instructional techniques. The Texas High School Project has also provided funds to promote the Robotic Programs to students, faculty, parents and the general community. Technology Allotment These funds are used to account, on a project basis, for funds awarded to purchase technological software or equipment that contributes to student learning, or to pay for training for educational personnel involved in the use of these materials. (TEC Chapter 32, Subchapter A) Active Employee Health Insurance Coverage or Supplemental Compensation These funds are used to account for revenues that are legally restricted to the Teacher Retirement System (TRS) supplemental compensation. Master Reading Teacher Program These funds are used to account, on a project basis, for stipends to school districts with Master Reading teachers who are certified according to the provisions in TEC Texas Educator Excellence Grant, Cycle 1 These funds are used to account, on a project basis, for funds awarded to award teachers who demonstrate the ability to improve student achievement and collaborate with faculty and staff to improve student achievement. This program is authorized by House Bill 1 (79th legislative session, 3rd Called Session, 2006). Beginning Teacher Induction and Mentoring Program These funds are used to account, on a project basis, for funds awarded to enhance a beginning teacher induction and mentoring program at eligible campuses where a mentor teacher is assigned to a classroom teacher with less than two years experience. North East ISD Budget

127 Texas Educator Excellence Grant, Cycle 2 & 3 These funds are used to account, on a project basis, for funds awarded to award teachers who demonstrate the ability to improve student achievement and collaborate with faculty and staff to improve student achievement. This program is authorized by House Bill 1 (79th legislative session, 3rd Called Session, 2006). District Award for Teacher Excellence These funds are used to account, on a project basis, for funds awarded to provide a teacher incentive awards program that supports the establishment of district-wide goals and the implementation of a financial awards system for teachers who improve student achievement. High School Allotment These funds are used to account, on a project basis, for funds awarded to prepare students to go on to higher education, encourage students to take advanced academic course work, increase the rigor of academic course work, align secondary and postsecondary curriculum and support promising high school completion and success initiatives in grades 6 though 12. This program is authorized by House Bill 1 (79th legislative session, 3rd Called Session, 2006). Apprenticeship Training Program The Apprenticeship Training Program is a structured system of training to prepare people for occupations in skilled trades, crafts, and other occupations. The Apprenticeship Training Program combines on the job training under the supervision of experienced journey workers with related classroom instruction. Law Enforcement Officers Standards and Education Program These funds are used to account, on a project basis, for funds awarded to school districts for the continuing education of persons licensed under Chapter 1701, Occupations Code. Read to Succeed Program These funds are used to account, on a project basis, for funds awarded to help generate money for public school libraries and strengthen the campus-reading program. Funds are generated through the sale of specialty license plates. Members of the community have chosen to support school libraries in the District by purchasing these specialty license plates. Texas Fitness Now Program These funds are used to account, on a project basis, for funds awarded to further the goal of reducing childhood obesity and Type II diabetes. It places specific emphasis on the importance of physical education and fitness for students in grades sixth, seventh, and eighth as the foundation for a life of healthy choices. This program is authorized by Rider 89 in Article III of the General Appropriations Act (House Bill 1) passed by the 80th Legislature. Tobacco Compliance Grant These funds are used to account, on a project basis, for funds awarded to on-campus law enforcement to enforce Subchapter N, Tobacco Use By Minors, Chapter 161, Texas Health and Safety Code in a manner that can be reasonably be expected to reduce the extent to which cigarettes and tobacco products are illegally sold or distributed to persons who are younger than 18 years of age. SSA Regional Day School for the Deaf These funds are used by the fiscal agent of a shared services arrangement to account, on a project basis, for funds allocated for staff and activities of the Regional Day School Program for the Deaf. Campus Activity Funds These funds are composed of various non-tax local monies generated at the campus-level via campus vending machines, assemblies, school-wide sales, etc. These are public funds under the responsibility and control of the campus administrator. They are used to promote the general welfare of the campus and the educational development and morale of all students within the campus. As public funds, they are subject to the same statutory controls and district regulations as the general fund. Basic School Foundation These funds are used to account, on a project basis, for funds granted for the support of a comprehensive framework for school renewal and to strengthen elementary education by bringing together the key components of an effective education. In addition, funds are used to educate students with respect to firearms and firearms history, safety and marksmanship. North East ISD Budget

128 Boeing Foundation These funds are used to account, on a project basis, for funds granted for the support of Improving Learning through Visual Thinking Maps and for high school Integrated Physics and Chemistry. Coalition of Essential Schools (CES) These funds are used solely to support the continued growth and development of equitable, vibrant small schools as well as the mentoring efforts and participation of the Mentor School in the CES Small Schools Network funded by the Bill & Melinda Gates Foundation. Teacher Supply Reimbursement Program These funds are used to reimburse classroom teachers and librarians for the purchase of classroom related supplies. Toyota TAPESTRY These funds are used to improve the academic achievement of students and designed to engage students in critical thinking and problem solving that deepen their knowledge of standards-based subject matter. In addition, funds are also used for innovative projects that enhance science education. Asia Society These funds are used to build the field of Chinese language teaching in American schools. H-E-B Excellence in Education Award / North Central Rotary These funds were awarded to celebrate public schools whose leadership and dedication inspire a love of learning in students of all backgrounds and abilities. In addition, North Central Rotary funds are used for a summer reading program. North East ISD Budget

129 Special Revenue Fund Grant Awards Federal Grantor/ Federal Pass-Through Grantor/ CFDA Award Program or Cluster Title Number Period Amount NASA Student Launch Initiative Program /1/08-5/31/09 2,014 NASA Student Launch Initiative Program /6/09-5/6/10 3,371 ARRA McKinney-Vento Homeless Education /3/09-7/31/11 113,286 McKinney-Vento Homeless Education /1/08-8/31/09 11,432 McKinney-Vento Homeless Education A 9/1/09-8/31/10 98,504 ROTC /1/08-6/30/09 559,692 Homeless Education Disaster Assistance Grant A 1/1/08-9/30/10 16,119 Impact Aid Program ,693 Adult Education Section A 7/1/08-6/30/09 (129) Adult Education Section A 7/1/09-6/30/10 237,717 ESEA Title I Part A - Improving Basic Programs A 7/1/08-6/30/09 40,782 ESEA Title I Part A - Improving Basic Programs A 7/1/09-9/30/10 10,758,344 IDEA - Part B, Formula /1/08-6/30/09 83,423 IDEA - Part B, Formula A 7/1/09-9/30/10 12,206,913 SSA - IDEA - Part B, Discretionary Deaf /1/08-6/30/09 2,806 SSA - IDEA - Part B, Discretionary Deaf A 7/1/09-8/31/10 13,297 SSA - IDEA - Part B, Formula Deaf /1/08-6/30/ SSA - IDEA - Part B, Formula Deaf A 7/1/09-9/30/10 46,643 Career & Technology - Basic Grant A 7/1/08-6/30/09 1,525 Career & Technology - Basic Grant A 7/1/09-6/30/10 646,599 IDEA - Part B, Preschool /1/08-6/30/09 4,071 IDEA - Part B, Preschool A 7/1/09-9/30/10 327,788 IDEA - Part B, Preschool Deaf /1/08-6/30/09 11 IDEA - Part B, Preschool Deaf A 7/1/09-9/30/ IDEA - Part C, Early Intervention A 7/1/08-9/30/ IDEA - Part C, Early Intervention A 7/1/09-9/30/ ESEA Title IV, Part A - Safe and Drug-Free Schools and Communities A 7/1/08-6/30/09 64 ESEA Title IV, Part A - Safe and Drug-Free Schools and Communities A 7/1/09-9/30/10 169,212 Career & Technology - Tech Prep Education Program /1/09-6/30/10 4,982 Texas 21st. Century Learning Centers C 9/1/08-8/31/09 1,615 ESEA Title II, Part D - Enhancing Education Through Technology X 7/1/08-6/30/ ESEA Title II, Part D - Enhancing Education Through Technology X 7/1/09-9/30/10 92,637 ESEA Title III, Part A - LEP A 7/1/08-6/30/09 5,263 ESEA Title III, Part A - LEP A 7/1/09-9/30/10 560,226 ESEA Title II, Part A - Teacher and Principal Training and Recruiting A 7/1/08-6/30/09 10,916 ESEA Title II, Part A - Teacher and Principal Training and Recruiting A 7/1/09-9/30/10 1,896,699 ARRA Title II, Part D Technology A 10/8/09-9/30/11 118,561 ARRA Title I, Part A Improving Basic Programs A 6/25/09-9/30/11 3,713,692 ARRA IDEA - Part B, Formula A 6/25/09-9/30/11 5,415,804 ARRA Title XIV State Fiscal Stabilization Fund A 9/9/09-9/30/10 18,415,355 Temporary Assistance for Needy Families (TANF) /1/08-8/31/09 9,652 Temporary Assistance for Needy Families (TANF) /1/09-8/31/10 48,152 Apprenticeship, Temporary Assistance for Needy Families (TANF) /1/08-8/31/09 2,330 Apprenticeship, Food Stamp Employment & Training (FSE&T) /1/08-8/31/09 3,030 Medicaid Administrative Claiming Program (MAC) ,972 National School Lunch Program ,899,099 National School Breakfast Program ,699,333 USDA Commodities ,497,404 Texas Educator Excellence Award N/A 467,030 North East ISD Budget

130 Special Revenue Fund Grant Awards Federal Grantor/ Federal Pass-Through Grantor/ CFDA Award Program or Cluster Title Number Period Amount District Award for Teacher Excellence N/A 3,097,599 High School Allotment N/A 1,091,199 Apprenticeship Training Program N/A 63,807 Law Enforcement Officers Standards and Education Program N/A 4,295 Tobacco Compliance Grant N/A 12,603 Texas Fitness Now Program N/A 56,089 Regional Day School Program for the Deaf N/A 1,118,265 Campus Activity Funds N/A 5,175,433 Basic School Foundation N/A 159,887 Coalition of Essential Schools N/A 2,443 Teacher Supply Reimbursement N/A 96,859 Asia Society N/A 7,403 HEB Educator Excellence N/A 100,000 North Central Rotary N/A 543 Total Special Revenue Expenditures $ 82,567,882 North East ISD Budget

131 Campus Activity Funds Balance Revenue Expenditures Balance School 7/1/ /30/2010 LEE $ 86,411 $ 118,075 $ (3,232) $ (40,434) 434) $ (22,119) $ (54,262) $ - $ - $ 84, MACARTHUR 133, ,981 (12,114) (94,316) (63,377) (118,406) - (20,829) 92,109 CHURCHILL 182, ,272 (31,737) (107,204) (122,376) (132,684) (5,905) (4,638) 173,422 ROOSEVELT 109, ,365 - (34,497) (35,153) (112,547) - (10,074) 93,890 MADISON 128, ,598 (8,989) (98,287) (71,033) (105,457) - (5,156) 126,036 CENTER SCHOOL 1,599 1,238 - (278) (1,070) - - 1,489 REAGAN 208, ,163 (28,299) (165,579) (97,437) (165,004) (7,040) (2,194) 226,800 A.C.E. 3,453 8,966 - (300) (866) (5,081) - - 6,172 I.S.A. 13,934 18,392 (6,248) (4,199) (3,224) (12,898) - (800) 4,957 ALTERNATIVE MS/HS 1,630 1, (83) (461) - - 2,358 JOHNSON 122, ,446 (20,371) (166,965) (67,258) (95,948) - (4,667) 122,667 D.A.T.A. 20,253 16,105 (7,344) (2,630) (3,766) (8,925) 13,693 AUTOMOTIVE TECHNOLOGY 5,560 32,118 - (651) (10,986) (14,648) - (106) 11,286 EISENHOWER 44, ,951 (186) (41,334) (21,952) (35,873) - (408) 53,264 GARNER 22,515 35,939 - (16,794) (5,205) (13,431) - (847) 22,176 KRUEGER 27, ,703 (153) (13,647) (14,470) (72,024) ,355 NIMITZ 15,127 55,752 (16,497) (7,296) (32,935) ,152 JACKSON 37,497 63,225 - (24,276) (7,877) (32,109) - (1,844) 34,616 WHITE 25,804 48,448 (331) (15,722) (5,243) (27,704) ,252 WOOD 54,137 55,968 (21,603) (24,641) (26,935) - (2) 36,925 BRADLEY 53, ,685 (3,570) (63,598) (32,042) (31,571) - (1,282) 52,785 DRISCOLL 13,033 63, (24,155) (9,250) (32,764) ,216 BUSH 63, ,896 (1,417) (78,903) (71,370) (50,355) (3,000) 43,371 TEJEDA 45, ,076 (7,649) (52,450) (25,175) (68,798) - (5,181) 48,842 LOPEZ 25, ,904 (9,996) (54,143) (14,576) (66,169) ,643 HARRIS 46, ,811 (7,242) (24,355) (32,667) (84,778) - (3,425) 55,511 CASTLE HILLS 13,119 29,471 - (3,105) (4,956) (16,561) - (2,424) 15,544 COKER 17,595 34,475 - (1,225) (6,941) (20,449) - (5,376) 18,080 COLONIAL HILLS 9,654 19,006 - (2,069) (2,084) (13,689) ,819 DELLVIEW 9,280 19,637 - (2,236) (5,884) (6,154) (1,065) 13,577 E. TERRELL HILLS 11,244 31,002 (4,867) (1,788) (22,752) - (2,307) 10,531 HARMONY HILLS 7,183 19, (4,534) (16,451) - (2,175) 3,808 JACKSON-KELLER 11,028 25,322 - (718) (3,079) (16,451) ,101 LARKSPUR 9,081 20,307 - (598) (4,083) (17,040) - (2,619) 5,048 NORTHWOOD 16,571 38,108 - (4,982) (10,191) (19,763) - (5,259) 14,484 OAK GROVE 7,442 18,524 - (220) (2,059) (14,761) - (777) 8,149 OLMOS 6,624 14,775 - (1,350) (6,220) (5,239) - (930) 7,660 RIDGEVIEW 13,334 14,536 - (3,945) (1,028) (7,763) (1,733) 13,402 SERNA 16,606 29,724 - (1,378) (12,285) (17,222) ,446 WALZEM 7,173 12,058 - (281) (2,800) (7,716) - (2,427) 6,008 WEST AVENUE 7,219 20,243 - (1,970) (3,102) (19,441) - - 2,948 WILSHIRE 7,361 11,454 - (975) (1,024) (9,805) (1,095) 5,917 WINDCREST 9,090 28,258 (4,469) (5,596) (20,417) - - 6,868 CAMELOT 1,545 8,807 - (266) (1,775) (7,434) CLEAR SPRINGS 7,603 22,545 - (2,497) (5,858) (10,076) ,716 REGENCY PLACE 16,443 17,354 - (4,249) (9,599) (9,728) - (1,400) 8,821 EL DORADO 9,528 17,892 - (1,751) (6,521) (10,412) - (800) 7,936 MONTGOMERY 2,344 11,853 - (942) (1,607) (10,584) - - 1,064 HIDDEN FOREST 23,750 58,008 - (1,099) (8,194) (42,962) - (2,050) 27,454 WOODSTONE 7,703 55,615 - (3,094) (6,617) (36,896) - (7,660) 9,052 STAHL 32,382 40,730 - (6,124) (11,450) (17,087) - (4,147) 34,303 THOUSAND OAKS 30,550 39,696 - (9,883) (13,824) (20,756) - (1,700) 24,083 NORTHERN HILLS 34,226 47, (15,248) (21,309) (36,054) - (2,206) 206) 7,194 REDLAND OAKS 30,520 49,239 - (7,302) (17,382) (20,200) - (5,317) 29,558 ENCINO PARK 24,604 35,952 (916) (4,274) (3,936) (18,809) - (1,720) 30,900 FOX RUN 13,260 30,353 - (1,125) (1,793) (26,832) - (3,824) 10,039 OAK MEADOW 20,051 15,944 - (222) (4,507) (9,014) - (2,947) 19,305 STONE OAK 22,768 67,125 - (8,946) (19,784) (25,537) - (2,050) 33,576 LONGS CREEK 20,975 55,831 - (11,741) (10,579) (20,730) - (5,017) 28,738 HUEBNER 42,922 77,318 - (3,526) (9,788) (48,333) - (11,256) 47,337 HARDY OAKS 58, ,766 - (20,539) (34,327) (59,985) (33,812) (5,132) 21,245 WETMORE 19,580 39,608 - (4,780) (12,041) (18,655) - (3,850) 19,862 ROYAL RIDGE 15,258 34,044 - (1,857) (4,936) (29,988) - (704) 11,816 ROAN FOREST 22,624 57,372 - (7,088) (3,585) (21,708) - (14,280) 33,335 CANYON RIDGE 40, ,631 - (24,421) (20,813) (74,796) 47,044 STEUBING RANCH 20,128 45,884 - (9,871) (4,960) (26,688) - (6,077) 18,416 BULVERDE CREEK 20,596 78,191 - (20,731) (10,787) (32,738) (12,209) 22,321 WILDERNESS OAK 63, ,850 - (17,779) (32,607) (49,404) - (7,693) 74,916 TUSCANY HEIGHTS - 5, (1,135) 4,490 CIBOLO GREEN - 9,453 (118) (25) (227) 9,082 Total $ 2,272,321 $ 5,158,857 $ (149,792) $ (1,386,398) $ (1,125,977) $ (2,341,279) $ (46,757) $ (194,679) $ 2,186,295 North East ISD Budget

132 Internal Service Funds The Internal Service Funds are used to account for the financing of goods and services provided by certain departments in the District to other departments in the District on a cost-reimbursement basis: Document Management and Print Services Fund is to account for the operations of the District s Printing Services Department. Revenue is comprised of user charges from the various campuses and departments within the District. Health Insurance Fund is to account for the operations of the District s self-funded medical programs, including the state-mandated medical plan comparable to the TRS health plan. Contributions are collected from the employees of the District along with various District accounts. Claim costs, administrative costs, stop loss premiums, hospital indemnity claims, employee assistance program fees, and employee term life insurance are paid from the proceeds from the premiums collected. Excess claims are covered by the stop loss carrier. Data Processing Center is to account for the operations of the District s Data Processing Department and Computer Service Center. Revenue is comprised of user charges from the various departments within the District. Dental Insurance Fund is to account for the operations of the District s self-funded dental plan. Participation is voluntary and contributions are collected from employees of the District. Claim costs, administrative costs, and vision discount program fees are paid from the proceeds of the contributions collected. Excess claims are the responsibility of the employees. Workers Compensation Insurance Fund is to account for the operations of the District s selffunded, self-administered program that meets the state mandate that all District employees be covered by workers compensation. Premiums are collected from each department of the District. Claim costs, administrative costs, and stop loss insurance premiums are paid from the premiums collected. Excess claims are covered by an outside insurance company. Rolling Owner Controlled Insurance Fund is to account for the operations of the District s OCIP that covers several construction projects over a period of years. The OCIP allows the District to purchase a large package of insurance at lower premiums. This insurance covers the owner, contractors, and subcontractors working on the construction projects. Insurance coverage provided under the OCIP includes on-site workers compensation, general liability, excess liability, and builder s risk. The cost of on-site insurance coverage for the contractors is paid for through the deduction of the insurance cost contractors would have passed on to the District for the various construction projects under the 1998 and 2003 Bond Construction Programs. Unemployment Compensation Fund is to account for the operations of the District s self-funded, selfadministered program that meets the state mandate that all District employees be covered by unemployment compensation. Premiums are collected from each department of the District. Claim costs, administrative costs, and stop loss insurance premiums are paid from the premiums collected. Excess claims are covered by an outside insurance company. Police Services Fund is to account for the operations of the District s police department. Revenue is comprised of user charges from the various departments within the District and other organizations that use our facilities. The transfer of police services to an internal service fund provides for ease in costing and pricing the police services, redistributes some of the overhead costs to the outside organizations that use our services and facilitates better managerial decisions. North East ISD Budget

133 Document Management & Print Services Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 3,158,680 $ 3,076,125 $ 3,111, % State Sources 92,718 95,107 98, % Federal Sources % Other Sources 100, , , % Total Revenues $ 3,351,398 $ 3,271,232 $ 3,309, % Expenditures by Object Payroll Cost $ 1,518,204 $ 1,533,422 $ 1,518, % Professional/Contracted Services 228, , , % Supplies & Materials 1,502,028 1,184,284 1,294, % Other Operating Expenses 171,137 93, , % Other Uses 300, % Total Expenditures $ 3,719,963 $ 3,036,600 $ 3,232, % Change in Net Assets (368,565) 234,632 76,297 Total Net Assets - Beginning 1,335, ,663 1,201,295 Total Net Assets - Ending $ 966,663 $ 1,201,295 $ 1,277,592 North East ISD Budget

134 Health Insurance Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 45,788,146 $ 46,263,568 $ 46,686, % State Sources 10,842 10, % Federal Sources ,286 80, % Other Sources 316,612 93, % Total Revenues $ 46,115,965 $ 46,395,461 $ 46,766, % Expenditures by Object Payroll Cost $ 227,407 $ 233,946 $ 237, % Professional/Contracted Services 2,315,463 2,600,255 2,686, % Supplies & Materials 21,636 24,883 26, % Other Operating Expenses 43,117,692 42,728,171 46,998, % Other Uses 1,300,000 1,680, % Total Expenditures $ 46,982,198 $ 47,267,255 $ 49,948, % Change in Net Assets (866,233) (871,794) (3,181,405) Total Net Assets - Beginning 18,740,165 17,873,932 17,002,138 Total Net Assets - Ending $ 17,873,932 $ 17,002,138 $ 13,820,733 North East ISD Budget

135 Data Processing Center Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 8,503,564 $ 9,973,981 $ 9,579, % State Sources 272, , % Federal Sources 135, % Other Sources 2,643, , % Total Revenues $ 11,555,407 $ 10,525,302 $ 9,579, % Expenditures by Object Payroll Cost $ 4,261,694 $ 4,568,471 $ 4,185, % Professional/Contracted Services 2,020,380 1,415,824 3,638, % Supplies & Materials 1,332,217 2,347,804 2,205, % Other Operating Expenses 597, ,261 80, % Other Uses 10,555 7, % Total Expenditures $ 8,222,181 $ 9,103,013 $ 10,109, % Change in Net Assets 3,333,226 1,422,289 (530,741) Total Net Assets - Beginning 2,826,027 6,159,253 7,581,542 Total Net Assets - Ending $ 6,159,253 $ 7,581,542 $ 7,050,801 North East ISD Budget

136 Dental Insurance Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 2,497,816 $ 2,595,752 $ 2,691, % State Sources % Federal Sources - 1,171 3, % Other Sources 205 3, % Total Revenues $ 2,498,021 $ 2,600,209 $ 2,694, % Expenditures by Object Payroll Cost $ 17,227 $ 17,443 $ 18, % Professional/Contracted Services 163, , , % Supplies & Materials % Other Operating Expenses 2,208,114 2,458,478 2,630, % Other Uses % Total Expenditures $ 2,388,677 $ 2,645,104 $ 2,810, % Change in Net Assets 109,344 (44,895) (115,700) Total Net Assets - Beginning 1,762,053 1,871,397 1,826,502 Total Net Assets - Ending $ 1,871,397 $ 1,826,502 $ 1,710,802 North East ISD Budget

137 Workers' Compensation Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 15,059 $ 962,678 $ 1,030, % State Sources 27,105 27, % Federal Sources - - 7, % Other Sources 971,374 9, % Total Revenues $ 1,013,538 $ 999,499 $ 1,037, % Expenditures by Object Payroll Cost $ 433,455 $ 435,033 $ 410, % Professional/Contracted Services 837, , , % Supplies & Materials 77,729 21,481 73, % Other Operating Expenses 398, , , % Other Uses % Total Expenditures $ 1,747,559 $ 754,691 $ 1,734, % Change in Net Assets (734,021) 244,808 (697,981) Total Net Assets - Beginning 1,622, ,959 1,133,767 Total Net Assets - Ending $ 888,959 $ 1,133,767 $ 435,786 North East ISD Budget

138 ROCIP Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 2,552,781 $ 475,745 $ % State Sources 16, % Federal Sources % Other Sources % Total Revenues $ 2,569,044 $ 475,745 $ % Expenditures by Object Payroll Cost $ 244,429 $ 17,660 $ % Professional/Contracted Services 26, , % Supplies & Materials 4, % Other Operating Expenses 558, % Other Uses 313,900 1, % Total Expenditures $ 1,147,577 $ 20,524 $ 30, % Change in Net Assets 1,421, ,221 (30,710) Total Net Assets - Beginning (1,265,036) 156, ,652 Total Net Assets - Ending $ 156,431 $ 611,652 $ 580,942 North East ISD Budget

139 Unemployment Compensation Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 114,387 $ 114,556 $ 150, % State Sources % Federal Sources % Other Sources % Total Revenues $ 114,387 $ 114,556 $ 150, % Expenditures by Object Payroll Cost $ - $ - $ % Professional/Contracted Services % Supplies & Materials % Other Operating Expenses 96, , , % Other Uses % Total Expenditures $ 96,072 $ 142,937 $ 150, % Change in Net Assets 18,315 (28,381) - Total Net Assets - Beginning 59,900 78,215 49,834 Total Net Assets - Ending $ 78,215 $ 49,834 $ 49,834 North East ISD Budget

140 Police Services Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 3,589,389 $ 3,911,866 $ 3,794, % State Sources 219, , % Federal Sources % Other Sources % Total Revenues $ 3,808,977 $ 4,143,829 $ 3,794, % Expenditures by Object Payroll Cost $ 3,568,931 $ 3,685,666 $ 3,463, % Professional/Contracted Services 109, , , % Supplies & Materials 127, , , % Other Operating Expenses 52,276 71,920 86, % Other Uses % Total Expenditures $ 3,857,847 $ 4,000,479 $ 3,794, % Change in Net Assets (48,870) 143,350 - Total Net Assets - Beginning 64,630 15, ,110 Total Net Assets - Ending $ 15,760 $ 159,110 $ 159,110 North East ISD Budget

141 The Enterprise Funds are used to account for the financing or recovery of costs of providing goods and services to the general public on a continuing basis primarily through user charges: Property Management Fund accounts for the revenues and expenditures associated with the rental of District facilities and the sale of disposed items. Uniform Rental Fund accounts for the rental of uniforms. Revenue is comprised of user charges from band, orchestra, spirit, and choir groups. Community Education Fund accounts for services provided to the community for after school childcare and community education classes. Revenue is comprised of user charges from the community and after school tuition fees. Preschool Program for Children (PPCD) Fund accounts for the Preschool Program for Children with Disabilities and Tuition-Based Childcare for district employees. Revenue is comprised of tuition fees paid by parents. North East Aquatics and Tennis (NEAT) Fund accounts for the North East Aquatics Team s operations. Revenue is comprised of user charges from team activities. Enterprise Funds North East ISD Budget

142 Property Management Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 897,007 $ 880,013 $ 653, % State Sources 18,544 19,021 16, % Federal Sources , % Other Sources 100, , % Total Revenues $ 1,015,958 $ 1,075,466 $ 770, % Expenses by Object Payroll Cost $ 297,197 $ 297,371 $ 309, % Professional/Contracted Services 84, ,086 88, % Supplies & Materials 33,126 39,710 30, % Other Operating Expenses 283, , , % Other Uses 1,450,000 50, , % Total Expenditures $ 2,149,052 $ 833,522 $ 823, % Change in Net Assets (1,133,094) 241,944 (53,000) Total Net Assets - Beginning 7,125,759 5,992,665 6,234,609 Total Net Assets - Ending $ 5,992,665 $ 6,234,609 $ 6,181,609 North East ISD Budget

143 Uniform Rental Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 57,971 $ 63,398 $ 62, % State Sources % Federal Sources % Other Sources % Total Revenues $ 57,971 $ 63,398 $ 62, % Expenditures by Object Payroll Cost $ - $ - $ % Professional/Contracted Services % Supplies & Materials 21,364 84,854 60, % Other Operating Expenses % Other Uses % Total Expenditures $ 21,364 $ 84,854 $ 60, % Change in Net Assets 36,607 (21,456) 2,000 Total Net Assets - Beginning 264, , ,793 Total Net Assets - Ending $ 301,249 $ 279,793 $ 281,793 North East ISD Budget

144 Community Education Fund Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 6,154,472 $ 6,507,857 $ 6,605, % State Sources 123, , , % Federal Sources % Other Sources 26,333 2, % Total Revenues $ 6,304,411 $ 6,662,491 $ 6,715, % Expenditures by Object Payroll Cost $ 4,370,221 $ 4,826,588 $ 4,852, % Professional/Contracted Services 479, , , % Supplies & Materials 242, , , % Other Operating Expenses 510, , , % Other Uses 359,745 51,795 43, % Total Expenditures $ 5,962,888 $ 6,223,800 $ 6,325, % Change in Net Assets 341, , ,076 Total Net Assets - Beginning 4,081,877 4,423,400 4,862,091 Total Net Assets - Ending $ 4,423,400 $ 4,862,091 $ 5,252,167 North East ISD Budget

145 Preschool Program for Children Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 274,003 $ 310,676 $ 319, % State Sources 13,185 16, % Federal Sources % Other Sources 10,250 1, % Total Revenues $ 297,438 $ 328,070 $ 319, % Expenditures by Object Payroll Cost $ 280,866 $ 290,035 $ 301, % Professional/Contracted Services % Supplies & Materials 3,078 3,089 15, % Other Operating Expenses 3,028 1,788 1, % Other Uses % Total Expenditures $ 287,593 $ 295,147 $ 319, % Change in Net Assets 9,845 32,923 - Total Net Assets - Beginning 14,193 24,038 56,961 Total Net Assets - Ending $ 24,038 $ 56,961 $ 56,961 North East ISD Budget

146 North East Aquatics & Tennis Revenue & Expenditure Summary by Major Object Actual Near Final Budget Percent of Total Revenues Local Sources $ 653,108 $ 750,587 $ 673, % State Sources % Federal Sources % Other Sources % Total Revenues $ 653,358 $ 750,629 $ 673, % Expenditures by Object Payroll Cost $ 196,179 $ 234,296 $ 271, % Professional/Contracted Services 161, , , % Supplies & Materials 46,903 59,109 75, % Other Operating Expenses 110, , , % Other Uses % Total Expenditures $ 514,871 $ 583,008 $ 650, % Change in Net Assets 138, ,621 23,582 Total Net Assets - Beginning 873,226 1,011,713 1,179,334 Total Net Assets - Ending $ 1,011,713 $ 1,179,334 $ 1,202,916 North East ISD Budget

147 Capital Budget Definition The District defines capital projects as expenditures for the acquisition, construction, or renovation of facilities and other initiatives usually financed from general obligation bond proceeds that require more than one year to implement. Not all aspects of every capital project are recorded as a capital asset. The District only capitalizes and depreciates individual items costing more than $5,000. For example, one of the initiatives financed by the 2007 bond program is installing ceiling-mounted projectors in every classroom throughout the District. Because this is a bond-funded initiative and will take longer than one year to implement, it is considered a capital project. However, the individual projectors cost less than $5,000 to purchase and install, so they will not be recorded as capital assets. The District s Board of Trustees does not formally adopt an annual budget for the capital project funds. However, the Board does provide oversight by approving each stage of all projects (design, bid award, etc). Sources & Uses Funding for capital projects and expenditures is primarily through the issuance of bonds (which require voter approval) with any necessary addition from the Maintenance and Operations budget budgeted/projected capital projects and capital expenditures are listed below by source: Budgeted Funding Source Expenditure Bond Program(s) $68,674,735 Facility Assessment Fund 384,475 General Fund 323,306 Career & Technology 47,963 Data Processing 1,000,000 School Nutrition Svcs Fund 350,000 Special Revenue (IDEA-B) 22,935 Total $70,803,414 The 2007 Bond Program is the largest source of funding for the District s capital budget. The District s bond programs typically cover the majority of capital needs for a five-year period and prevent the operating budget from being overburdened. Process Planning the District s capital projects is a continuous process. The majority of projects are funded through the District s bond programs. For those projects not included in the bond programs, requests must be processed through either the RR (Request for Resource) or the AAR (Additional Allocation Request) systems. Requests for Resource (RR) The RR system is used when requesting resources for the current fiscal year. Departments have until the middle of May to enter requests for the fiscal year (May 15, 2010 for fiscal ). The RR system requires an extensive approval process. Executive staff will ultimately approve all projects and funding sources. The RR system is only used for capital projects whenever circumstances do not allow for long-term planning. Additional Allocation Requests (AAR) Most projects not funded by the bond program are processed through the AAR system. Each year, budget managers review their needs and request funds for the following year. These requests go through an extensive approval process. Each Associate Superintendent prioritizes their division s requests. Student safety and legal mandates receive the highest priority. After deliberations, decisions to approve or disapprove are made for each request, and the resulting cost to the budget is added in time for adoption in June. The deadlines for the budget are listed below: Start Finish Item Non-campus 3/15/10 4/5/10 AAR Input Campus 3/15/10 4/19/10 AAR Input Executive Staff 4/19/10 4/30/10 Rankings Executive Staff 5/3/10 Deliberation Public Hearing - 6/21/10 Budget Adoption Responsible Area Dept Budget Managers Campuses Executive Staff Executive Staff Budget North East ISD Budget

148 Capital Projects and Capital Expenditures Actual Near Final Projected Projected Projected Expenditures by Object Prof. & Contracted Svcs* $ 3,207,155 $ 3,642,328 $ 1,578,475 $ 1,033,656 $ 401,200 Supplies & Materials 23,099,329 11,339,218 6,098,526 5,279,546 2,049,188 Other Operating 577, , , ,203 47,044 Capital Outlay 164,278, ,523,106 62,986,408 54,392,899 21,953,219 Total Expenditures $ 191,162,504 $ 207,713,506 $ 70,803,414 $ 60,827,305 $ 24,450,651 Expenditures by Funding Governmental Funds: General Fund $ 702,111 $ 586,188 $ 323,306 $ 175,000 $ 175,000 School Nutrition 82,021 58, , , ,000 Career & Tech 64,572 71,518 47, Texas Fitness Now - 12, Campus Activity Funds 37,164 46, IDEA-B 27,346 7,054 22, Facility Maintenance 113, , , Capital Projects Fund 4,850,736 2,101, Bond Program 841,344 5,147, Bond Program 16,095,414 2,183, Bond Program 167,203, ,773,551 68,674,735 59,452,305 23,075,651 Proprietary Funds: Facility Rental Fund 66, Community Education 84,730 72, Document Mgmt/Print - 23, Data Processing 845,781 2,242,396 1,000,000 1,000,000 1,000,000 Police Services 148, , Total Expenditures $ 191,162,504 $ 207,713,506 $ 70,803,414 $ 60,827,305 $ 24,450,651 *The majority of professional and contracted services expenditures are internal service fund charges. The most common are cabling charges from the technology department to add the necessary network cabling to new construction. North East ISD Budget

149 Capital Projects and Capital Expenditures Funding Recurring Impact to Project Source Projected Projected Projected Project Operating* New School Construction: Cibolo Green ES 2007 Bond Program 2,809, N Y Tuscany Heights ES 2007 Bond Program 3,115, N Y Knights Cross ES 2007 Bond Program 11,979,819 17,114,028 5,134,208 N Y Vineyard Ranch ES 2007 Bond Program 11,161,746 15,945,351 4,783,605 N Y New School Design: Roseheart ES 2007 Bond Program - 850, ,872 N N Middle School # Bond Program - 998, ,738 N N Land Acquisitions 2007 Bond Program N N Elementary Classroom Additions: Jackson-Keller ES 2007 Bond Program 2,490,894 1,660,596 - N N El Dorado ES 2007 Bond Program 386, ,599 - N N East Terrell Hills ES 2007 Bond Program 595, ,673 - N N Larkspur ES 2007 Bond Program 568, ,159 - N N Athletic & Fine Arts Additions: ES Gymnasiums 2007 Bond Program 1,808,250 1,265, ,475 N Y Garner MS 2007 Bond Program 310, , ,266 N N Eisenhower MS 2007 Bond Program 1, N N White MS 2007 Bond Program 9, N N MacArthur HS 2007 Bond Program N N Churchill HS 2007 Bond Program 2,277,060 1,992,428 1,423,163 N N Lee HS 2007 Bond Program 4, N N Basse Athletics 2007 Bond Program 1, N N Madison HS 2007 Bond Program 2,533,346 2,533,346 1,900,010 N N Agri-Science Magnet Facility Renovations 2007 Bond Program 3,792,531 3,792,531 2,212,309 N N HVAC Upgrades for Athletics: Elementary Schools 2007 Bond Program 786, , ,839 N Y Secondary Schools 2007 Bond Program 8,511,844 5,958,291 2,553,553 N Y Roofing Program 2007 Bond Program 1,477,037 1,033, ,111 N N Facility Infrastructure Program 2007 Bond Program 4,420,390 3,094,273 1,326,117 N N North East ISD Budget

150 Capital Projects and Capital Expenditures Funding Recurring Impact to Project Source Projected Projected Projected Project Operating* Kitchen HVAC Upgrades 2007 Bond Program 102,539 71,777 30,762 N N Technology: Overhead Projectors 2007 Bond Program 94,768 66,337 28,430 N N Instructional Tech 2007 Bond Program 1,523,975 1,066, ,192 Y N Infrastructure Tech 2007 Bond Program 1,754, Y N Bus Replacement & Transportation Facility 2007 Bond Program 4,505, Y N Stadium/Baseball 2007 Bond Program 1,650, N N Other: Vehicles General Fund 281, , ,000 Y N Equipment General Fund 42, N N Equipment School Nutrition 225, , ,000 Y N Vehicles School Nutrition 125, N N Equipment IDEA-B 22, N N Equipment Career & Tech 47, N N Maintenance Projects Facility Maintenance 384, N N Equipment/Software Data Processing 1,000,000 1,000,000 1,000,000 Y N Total - All funding sources $ 70,803,414 $ 60,827,305 $ 24,450,651 *View individual project summaries at for details on the impact to the operating budget. North East ISD Budget

151 Capital Projects Impact Summary The operating costs of new or renovated facilities, once completed, impacts the General Fund. As a general rule, the addition of 1,000 square feet of school space results in an annual increase in utilities (electricity & natural gas) of $1,200 and added custodial labor and supplies of $1,500. The District will open two new elementary schools in , adding approximately of 246,643 square feet school space to the District. Other gymnasium projects and facility renovations will complete during the year, adding approximately another 400,000 square feet. These projects may be partially offset by reductions in portable building usage, depending on where/how enrollment grows. The impact to the maintenance & operations budget is summarized below: Campus/Facility Estimated Impact to Annual M&O Budget Bulverde Green ES Utilities $147,161 Administrative staff 540,458 Custodial services 236,154 Operating budget 509,447 $1,433,220 Tuscany Heights ES Utilities 148,811 Administrative staff 540,458 Custodial services 236,154 Operating budget 509,447 1,434,870 maintenance of new facilities. However, the maintenance department can request additional funds each year to cover costs for new facilities, rising prices, and anything else. For , the maintenance department requested $2.4M in additional funding. Of that total, $2.1M was approved. $2.1M included utility increases of $1.2M, so only $900,000 was for actual maintenance costs. Many of the District s capital projects are renovations or replacements of older facilities. These projects have very little or no negative impact to the operating budget of the District. Newer facilities are designed to be more efficient in terms of maintenance and utilities. Due to better technology and design, the District s newer facilities average close to $1.00 per square foot in utility cost. Older facilities can cost over $1.50 per square foot. See the discussion provided in Energy Management on page 178. For details on how individual projects will impact the District s operating budget see the project summaries on pages Other Growth Utilities 437,278 Custodial services 495, ,306 Total $3,800,396 For information regarding the impact that opening new schools has on instructional staffing, refer to the Human Resources information on pages The District operates a centralized maintenance department, which is impacted by the opening of new facilities. Although much of the initial maintenance required for new facilities is covered under warranties, the maintenance department performs preventive maintenance. Due to budget constraints, no additional funds are automatically allocated for North East ISD Budget

152 Bond Program Planning One of the four major goals of the Board of Trustees is to provide a safe, supportive atmosphere for the District s learning centers. Funding for the District s capital projects is primarily through the issuance of bonds (which require voter approval) with any necessary addition from the Maintenance and Operations budget. The timeline for bond programs revolve around election dates. Since bond elections can only occur in May or November, the District s planning timeline for the majority of its capital budgeting centers around the selected election date. The Department of Construction Management and Engineering is tasked with coordinating the District s capital improvement plan. This department continuously evaluates the District s needs in conjunction with enrollment forecasts and facility maintenance. As the District nears the selected election date, a Facility Study Committee made up of community members, business leaders, and District personnel will meet to finalize the projects selected for the bond program. The purpose of the Facility Study Committee is threefold: (1) to study the impact of rapid student population growth on school facilities (2) to study the facility needs of older campuses (3) to recommend a plan to the Board of Trustees that addresses facility needs In essence, the committee would ultimately recommend either a bond election or an alternate plan to deal with overcrowded schools and aging facilities. The next election date has yet to be determined, so no calendar has been officially created. However, the 2007 bond program will not fulfill all of the District s needs through Future programs will probably be needed. Several middle schools have been capped to new enrollment, so a new middle school is one of the most pressing items waiting for the next bond program. The following approximates the process the District will undertake whenever the next bond election is selected: Timing-May Election Beginning of November Middle of November December January Beginning of February February Timing- November Election Beginning of May Middle of May June July Beginning of August August Description Facility Study Committee (FSC) Meets; Construction Management presents identified needs FSC meets; more presentations including Finance FSC meets; more presentations & discussions FSC member survey and discussion FSC survey results & proposal prepared for recommendation to Board Recommendation to Board of selected projects by FSC May November Election July January Bond sales August February Projects commence The American Recovery and Redevelopment Tax Act of 2009 authorized Qualified School Construction Bonds ( QSCB or QSCBs ). QSCBs may be used to finance the construction, rehabilitation and repair of public school facilities, equipment and land acquisition. Issuers receive an interest subsidy of 100% from the U.S. Treasury. The District submitted an application to the Texas Education Agency to receive a QSCB allocation and was awarded the amount of $37,549,000 on July 8, Maintenance Tax Notes can be issued which do not need voter authority. However, a Maintenance & Operations ( M&O ) repayment pledge is required. Another option is to seek voter authority to issue bonds to be paid from the Debt Service Fund (I&S). A preliminary list of projects to be completed with the QSCB funding includes roofing replacements, carpet replacements, HVAC controls upgrades, boiler and chiller replacements, HVAC replacements, and North East ISD Budget

153 other renovation and maintenance projects. The District will issue if/when interest rates are favorable. The authorization to issue lasts up to one year. No budget or expenditure projections are included in the capital reports since the timing and the issuance of the QSCBs are still uncertain. Prioritization Needs are prioritized by enrollment growth, student safety, legal mandates, and student equity. A major challenge facing the District is rapid student population growth. For the last several years, the District has grown annually by approximately 1,900 new students. While this growth has been most rampant north of Loop 1604, all parts of the district have grown. The District now faces overcrowded, capped schools in newer areas of the district, as well as aging facilities in older parts. Growth in NEISD Last 5 Years The District s improvement plan consists of several categories. One of the District s priorities is to keep up with the continued growth in the northern part of the district. Overcrowding in the District s schools, which already have portables to accommodate the growing number of students, needs to be alleviated by new school construction. The 2007 bond program included the building of 4 new elementary schools to keep up with growth. Year Enrollment ,265 Increase from Prior Year % Change from Prior Year Another category of the District s improvement plan is to provide equitable facilities at existing schools. The District calls this a one for one approach. For any new elementary school constructed for growth, the District intends to construct a major classroom addition at an existing elementary school replacing portables for facility equity. For example, in the 2007 Bond program, 4 new elementary schools will be built. In this same program, 4 existing elementary schools (Jackson-Keller, East Terrell Hills, Larkspur, and El Dorado) will have new facilities built to replace portable buildings. In the 2003 bond program, Walzem, Colonial Hills, Olmos, and Ridgeview elementary schools received classroom additions to replace portable buildings (See Elementary School Portable Building Classrooms on page 150 for details on the number of portable classrooms throughout the District.). Also in the 2003 Bond Program, the District set aside approximately $6 million to upgrade existing elementary school playgrounds in order to meet the standard for new schools. Similar to the one for one approach, the District likes to make certain that all geographic areas receive improvement projects. The District separates itself geographically by high schools and calls each area a cluster because it includes the high school and the middle and elementary schools which feed into the high school. During the bond programs, the District distributes improvement projects throughout the entire District to make things as equitable as possible and to bring older facilities up to the newer standards. The diagram displayed in 2007 Bond Program on page 147 details the 2007 bond program by cluster. This shows how many projects are done in each area of the District ,824 2, % ,255 1, % , % ,452 1, % 2010* 66,772 3, % Average 1, % *projected. North East ISD Budget

154 2007 Bond Program ND 2007 Churchill Cluster Larkspur Elementary School Classroom addition Churchill High School Athletic Facility replacement Eisenhower Middle School auditorium renovation Air-conditioned kitchen at Coker Elementary School Eisenhower Middle School campus-wide restroom renovations Coker, Harmony Hills and Larkspur elementary schools will have their metal gyms replaced with masonry gyms Roof replacement at Bradley Middle School MacArthur Cluster Garner Middle School Fine Arts addition Garner Middle School Gymnasium replacement Northwood, Oak Grove, Regency Place and Serna elementary schools will have their metal gyms replaced with masonry gyms Air-conditioned kitchens at Serna, Oak Grove, Northwood and Redland Oaks elementary schools Restroom Renovations in MacArthur auditorium and band hall Roof replacement at Regency Place, Serna and Thousand Oaks elementary schools Reagan Cluster Build four new elementary schools: Land for proposed 2007 bond for schools and future schools: Purchase 20-acre site for elementary school Purchase 20-acre site for elementary school Purchase 20-acre site for elementary school Purchase 20-acre site for elementary school Purchase 40-acre site for middle school Early Voting April 30 May 8 Election Day May 12 District Wide New sports facility Purchase 130 new buses All elementary, middle and high schools will receive: HVAC systems in their gyms Instructional technology (such as classroom computers, teacher laptops, distance learning equipment, projectors, graphing calculators) and related technology infrastructure (security cameras for all elementary and middle schools, additional security cameras at all high schools, networking upgrades and software) Lee Cluster Jackson-Keller Elementary School Classroom addition Lee High School Athletic Facility renovation Lee High School Basse-McCullough Athletic Field lighting/seating Roof replacement at Nimitz Middle School and Lee High School Colonial Hills, Dellview, Jackson-Keller, Ridgeview and West Ave elementary schools will have their metal gyms replaced with masonry gyms Air-conditioned kitchens at Ridgeview, Dellview, West Avenue, Olmos, Colonial Hills and Castle Hills elementary schools Madison Cluster El Dorado Elementary School Classroom addition Madison High School Fine Arts program and auditorium replacement Madison High School Athletic Facility renovation Roof replacement at El Dorado and Northern Hills elementary schools El Dorado Elementary School will get its metal gym replaced with masonry gym Air-conditioned kitchen at Fox Run Elementary School North East Agri-Science Magnet Program (AMP) upgrade at Madison High School Roosevelt Cluster East Terrell Hills Elementary School classroom addition White Middle School Fine Arts addition Air-conditioned kitchens at East Terrell Hills, Wilshire and Royal Ridge elementary schools Roof replacement at Montgomery Elementary School and White and Krueger middle schools Camelot, Clear Spring, East Terrell Hills, Walzem, Wilshire and Windcrest elementary schools will have their metal gyms replaced with masonry gyms North East ISD Budget

155 Campus/Department Bond Funded Capital Improvement Projects The District issued Unlimited School Tax Building Bonds in fiscal year 2007 totaling $498,049,000. The following is a summary of capital improvement projects funded by those bond proceeds and related interest earnings of $52,119,903. Description Current Allocation Expended thru June 30, 2010 Funds Obligated to Projects Unobligated Project Funds Completed Construction & Improvements Lee HS b 4,769,688 4,769, MacArthur HS b 399, ,096-10,324 Churchill HS b 1,180,604 1,180, Roosevelt HS b 2,526,575 2,487,463-39,112 Johnson HS a 6,671,750 6,658,966-12,784 Eisenhower MS b 2,163,303 1,996, ,980 White MS b 2,375,312 2,335,670-39,642 Stadium/Baseball a 37,060,408 37,060, Basse Athletic Fields b 1,522,150 1,500,736-21,414 Bus Replacement j 11,118,219 11,118, Facility Infrastructure d 1,021,751 1,021, Metal Gym Replacements i 20,552,803 20,552, Elementary School HVAC g 5,441,609 5,441, Secondary School HVAC g 2,148,356 2,148, Kitchen Facility HVAC g 410, , Instructional Technology k 27,260,493 27,260, Infrastructure Technology e 6,045,242 6,045, Library Services c 751, , Roofing Projects f 1,041,196 1,041, Total Completed $ 134,461,220 $ 134,170,964 $ - $ 290,256 Construction & Improvements In Progress Churchill HS b 32,612,581 28,350,915 3,998, ,454 Madison HS b 36,801,759 28,106,246 7,415,380 1,280,134 Garner MS b 9,152,951 8,908,844 77, ,986 East Terrell Hills ES b 9,415,595 8,232, , ,177 Jackson-Keller ES b 11,874,641 7,692,936 3,834, ,697 Larkspur ES b 11,303,449 10,180, , ,184 El Dorado ES b 12,416,442 11,906, ,991 99,345 Tuscany Heights ES a 31,884,439 28,923,664 1,366,845 1,593,930 Bulverde Green ES a 33,545,026 31,226,837 1,052,565 1,265,624 Knights Cross ES a 4,388,669 1,090,410 1,271,864 2,026,394 Vineyard Ranch ES a 4,161,958 1,360, ,973 1,851,064 NEEC/Admin Renovation b 1,687,568 1,061, ,676 24,653 Agri-Science Facility b 22,327,739 16,051,607 6,271,939 4,193 Future/Contingency various 31,014,241 2,029, ,501 28,657,076 North East ISD Budget

156 Campus/Department Description Current Allocation Expended thru June 30, 2010 Funds Obligated to Projects Unobligated Project Funds Instructional Technology k 2,247,577 1,641,522 83, ,684 Library Services c 565, ,787 50,530 42,761 Metal Gym Replacements i 10,384,302 6,322,000 3,358, ,527 Elementary School HVAC g 5,887,864 4,087,012 1,540, ,681 Secondary School HVAC g 24,286,467 20,328,774 3,306, ,508 Infrastructure Technology e 2,026,758-11,200 2,015,558 Kitchen Facility HVAC g 723, ,184 2,353 4 Land Purchases h 39,849,384 32,203, ,775 7,077,429 Facility Infrastructure d 999, , ,628 59,258 Overhead Projectors k 11,312,937 10,837, ,032 23,614 Roofing Projects f 7,910,285 5,317,376 2,395, ,942 Transportation Facility b & h 5,306,691 2,737,107 2,539,260 30,324 Total In Progress $ 364,087,780 $ 270,439,632 $ 43,668,945 $ 49,979,201 Total Bond Funded Capital $ 498,549,000 $ 404,610,596 $ 43,668,945 $ 50,269,457 Legend a b c d e f g h i j k New Construction Additions/Renovations Ed Tech - Library Service Miscellaneous Maintenace Technology Improvements Roofing HVAC Upgrades Land Acquisition Metal Gym Replacement Bus Purchases Instructional Technology North East ISD Budget

157 Campus Elementary School Portable Building Classrooms Number of Portable Building Classrooms Bond Program Replacements Bulverde Creek 10 Camelot 18 Possible future program will replace 18 portable classrooms Canyon Ridge 0 Castle Hills 0 Clear Spring 10 Coker 21 Possible future program will replace 22 portable classrooms Colonial Hills bond program replaced 28 portable classrooms Dellview 10 East Terrell Hills bond program replaced 22 portable classrooms El Dorado bond program replaced 20 portable classrooms Encino Park 16 Possible future program will replace 16 portable classrooms Fox Run 6 Hardy Oak 14 Harmony Hills 12 Hidden Forest 6 Huebner 6 Jackson-Keller bond program will replace 30 portable classrooms Larkspur bond program replaced 24 portable classrooms Longs Creek 10 Montgomery 10 Northern Hills 12 Northwood 4 Oak Grove 10 Oak Meadow 0 Olmos bond program replaced 25 portable classrooms Redland Oaks 16 Regency Place 16 Ridgeview bond program replaced 23 portable classrooms Roan Forest 12 Royal Ridge 4 Serna 6 Stahl 18 Steubing Ranch 6 Stone Oak 10 Thousand Oaks 12 Walzem bond program replaced 30 portable classrooms West Avenue 10 Wetmore 6 Wilderness Oak 0 Wilshire 14 Windcrest 20 Woodstone 14 Possible future program will replace 14 portable classrooms Total 375 North East ISD Budget

158 Management Facility Assessment/Maintenance The Facility Maintenance department evaluates the District s facilities for maintenance and repair needs. Some of the needs identified by the facility assessment are closely related to the District s capital improvement projects. The facilities are evaluated with the following goals in mind: Replace worn building systems and equipment with new components Enhance the learning environment with modern building systems Improve energy efficiency and reduce cost Increase security and safety of campuses The areas listed below are included in the Facility Maintenance Department s review of facilities. Building Repair & Elevators Building Grounds & Fencing Plumbing & Athletic Field Irrigation Electrical Systems & Lighting HVAC Systems & Refrigeration Electronic & Stage Equipment Custodial Equipment & Gym Floors Energy Efficiency Indoor Air Quality Maintenance Resources The facility assessment identifies and prioritizes needed capital and repair projects for existing facilities. When possible, the facility assessment projects have been incorporated into capital improvement projects funded by the bond programs. Some of the other assessment projects have been funded out right from the District s Maintenance and Operations budget. Over $1.6 million was allocated to projects during the and budget years. Facility Assessment Projects on page 153 describes the projects funded by Maintenance and Operations and their estimated costs. An additional $10 million was allocated for the facility assessment projects in the 2007 bond program. The list of projects to be completed by this funding is continuously being reviewed. Some projects have been approved and transferred to the Construction Management department due to scope. As projects are added to bond programs, the remaining facility assessment projects are re-prioritized. New needs will also develop causing priorities to change. Construction Management The District s Construction Management and Engineering Department is responsible for coordinating the District s capital plan. All projects are managed internally by the District. This is a costeffective method, and it allows the District to guarantee that project specifications are met. Prior to the 2003 bond program, the District compared external management costs to the costs of internally managing construction. External costs were approximately 6% of the bond program for districts using third parties. Districts who managed construction internally incurred only 2% of the bond program. This savings was significant enough that the District continued with its internal management system. The following summarizes the Construction Management Department s mission, vision, and objectives: The department s mission is to create educational environments that promote exemplary student achievement through cost-effective and innovative facility designs. Vision: Design and construct quality, cost-effective buildings and facilities. Complete projects per program, on budget, and on schedule with the program as approved by the Superintendent and the North East Independent School District Board of Trustees. Construct facilities that provide students with vibrant learning environments that challenge and inspire academic excellence. North East ISD Budget

159 Objectives are to formulate, refine, manage, and implement through prudent planning, design, bidding, and construction bond programs that are: Per program - design projects within the approved program that are consistent with the District's educational specifications. On budget - enhancing the educational experience through conscientious management of public funds and trust utilizing both best-value and prudent valueengineering practices. On schedule - completing all bond projects within the approved project time lines with due diligence, integrity, and superior workmanship. The Department of Construction Management s roles, responsibilities, and functions are as follows: District Proponent for executing Bond Construction Program Coordinates Development of District Needs Assessment to Identify Bond Funded Construction Requirements at Campuses and other District Facilities Plans and Implements the Design Development Process for Bond Funded Projects o Recommends Appointment of Project Architect/Engineer o Oversees Formation of the Project Design Team o Orchestrates the Concept / Design Development Process Provides Construction Oversight in the Field for all Bond Funded Construction Projects Executes Warranty Program following Completion of Project School facilities have a direct impact on the quality of education that students receive. Therefore, the Construction Management Department seeks to maximize the participation of all stakeholders in the planning, design and construction process in order to provide community-centered schools of exceptional quality to the students, staff, and citizens of the North East Independent School District. manages all school construction projects through the planning, design and construction process: Master Planning and Pre-Design Conceptual / Schematic Design Design Development Construction Document Preparation Bidding & Awarding of Construction Contract Construction and Project Management Substantial Completion, Occupancy, and Warranty Phase In order to maximize stakeholder participation and to incorporate input and feedback from the general public, the Construction Management Department employs the following strategies: Conduct design review presentations and design charettes with North East ISD facility end-users, including campus principals, faculty, and staff Provide design review, accountability, and oversight presentations to members of the Citizens' Bond Advisory Committee (CBAC), as well as to the NEISD Board of Trustees, Superintendent and Executive Staff Conduct design review and oversight meetings with design professionals, including architects, engineers, general contractors, subcontractors, and NEISD Construction Management and Engineering Department Staff throughout the design and construction process Conduct meetings with governing agencies, including county, city, and local building code inspectors, fire marshalls, traffic, safety and regulatory personnel to ensure building plans comply with all code and life-safety requirements. The District has assembled a professional construction management and engineering team that North East ISD Budget

160 Project Facility Assessment Projects Funded by Maintenance & Operations Estimated Cost Spent Thru June 30, 2010 Remaining Balance Air Conditioning $283,911 $233,265 $50,646 Carpentry 12,300-12,300 Contracted Maintenance 189,816 62, ,997 Electrical 9,550 5,835 3,715 Elevator 90,000 88,667 1,333 Energy Control 32,505 31, Environmental Heating 49,875 17,399 32,476 Equipment 125, , Fire Alarms 50,000 7,057 42,943 Floors 238, ,046 47,054 Grounds 113, ,527 12,523 Gym floors 52,460 46,366 6,094 Hardware 13,300 11,749 1,551 Indoor Air Quality 35,000 31,998 3,002 Miscellaneous 90,590 86,510 4,080 Pest Control 20,000 19, Plumbing 40,600 12,674 27,926 Security 15,000 13,029 1,971 Supplies 101, , Technical Building Systems 78,000 70,972 7,028 Welding 4,463 3, Total $1,645,500 $1,261,025 $384,475 North East ISD Budget

161 2007 Bond Program Project Name: Cibolo Green Elementary School Project Category: New School for Growth Budget Construction (includes design) $ 30,482,180 Technology 995,000 Furniture and Equipment 1,561,184 Construction Management Administration 997,757 Total $ 34,036,121 Operating Impact Utilities $ 147,161 Administration Staff** 540,458 Instructional Staff*** - Custodial (Staff & Supplies) 236,154 Operating Costs 509,447 Total $ 1,433,220 **Includes Principal, Asst Principal, Counselors, Librarian, Nurse, Secretary, Data Processor, and Other Support Staff ***No additional instructional staff required. District maintains the same student-teacher ratio. Timetable Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photos North East ISD Budget

162 2007 Bond Program Project Name: Tuscany Heights Elementary School Project Category: New School for Growth Budget Construction (includes design) $ 28,567,190 Technology 995,000 Furniture and Equipment 1,540,637 Construction Management Administration 936,103 Total $ 32,038,930 Operating Impact Utilities $ 148,811 Administration Staff** 540,458 Instructional Staff*** - Custodial (Staff & Supplies) 236,154 Operating Costs 509,447 Total $ 1,434,870 **Includes Principal, Asst Principal, Counselors, Librarian, Nurse, Secretary, Data Processor, and Other Support Staff ***No additional instructional staff required. District maintains the same student-teacher ratio. Timetable Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photos North East ISD Budget

163 2007 Bond Program Project Name: Knights Cross Elementary School Project Category: New School for Growth Budget Construction (includes design) $ 31,621,219 Technology 1,050,000 Furniture and Equipment 1,615,000 Construction Management Administration 1,032,248 Total $ 35,318,467 Operating Impact * Utilities $ - $ 150,000 Administration Staff** 125, ,000 Instructional Staff*** - - Custodial (Staff & Supplies) 31, ,500 Operating Costs 120, ,000 Total $ 276,250 $ 1,305,500 *Includes costs for in the prior fiscal year to prepare for the school opening **Includes Principal, Asst Principal, Counselors, Librarian, Nurse, Secretary, Data Processor, and Other Support Staff ***No additional instructional staff required. District maintains the same student-teacher ratio. Timetable Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photo North East ISD Budget

164 2007 Bond Program Project Name: Vineyard Ranch Elementary School Project Category: New School for Growth Budget Construction (includes design) $ 29,617,069 Technology 1,050,000 Furniture and Equipment 1,615,000 Construction Management Administration 969,553 Total $ 33,251,622 Operating Impact * Utilities $ - $ 150,000 Administration Staff** 125, ,000 Instructional Staff*** - - Custodial (Staff & Supplies) 31, ,500 Operating Costs 120, ,000 Total $ 276,250 $ 1,305,500 *Includes costs for in the prior fiscal year to prepare for the school opening **Includes Principal, Asst Principal, Counselors, Librarian, Nurse, Secretary, Data Processor, and Other Support Staff ***No additional instructional staff required. District maintains the same student-teacher ratio. Timetable May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens North East ISD Budget

165 2007 Bond Program Project Name: Jackson-Keller Elementary Classroom Addition & Gym Replacement Project Category: Facility Improvements Budget Construction (includes design) $ 11,201,046 Technology 135,000 Furniture and Equipment 168,436 Construction Management Administration 339,945 Total $ 11,844,427 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photos North East ISD Budget

166 2007 Bond Program Project Name: El Dorado Elementary Classroom Addition & Gym Replacement Project Category: Facility Improvements Budget Construction (includes design) $ 11,897,390 Technology 105,000 Furniture and Equipment 131,408 Construction Management Administration 384,647 Total $ 12,518,445 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photo North East ISD Budget

167 2007 Bond Program Project Name: East Terrell Hills Elementary Classroom Addition & Gym Replacement Project Category: Facility Improvements Budget Construction (includes design) $ 8,668,191 Technology 123,300 Furniture and Equipment 203,938 Construction Management Administration 278,899 Total $ 9,274,328 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photos North East ISD Budget

168 2007 Bond Program Project Name: Larkspur Elementary Classroom Addition & Gym Replacement Project Category: Facility Improvements Budget Construction (includes design) $ 10,606,004 Technology 111,548 Furniture and Equipment 177,735 Construction Management Administration 328,828 Total $ 11,224,115 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photos North East ISD Budget

169 2007 Bond Program Project Name: Elementary School Metal Gym Replacement (15 Campuses) Project Category: Facility Improvements Budget Construction (includes design) $ 29,232,833 Technology 160,071 Furniture and Equipment 167,439 Construction Management Administration 930,959 Total $ 30,491,302 Operating Impact Utilities $ 99,000 Custodial Services 123,750 Total $ 222,750 Timetable Group A - Design Group A - Bid Proposals Group A - Award Contract Group A - City Review for Permit Group A - Pre-Construction Services Group A - Construction Group A - Test, Balance, & Group A - Move-in Group A - Facility Opens Group B - Design Group B - Bid Proposals Group B - Award Contract Group B - City Review for Permit Group B - Pre-Construction Services Group B - Construction Group B - Test, Balance, & Group B - Move-in Group B - Facility Opens Group C - Design Group C - Bid Proposals Group C - Award Contract Group C - City Review for Permit Group C - Pre-Construction Services Group C - Construction Group C - Test, Balance, & Group C - Move-in Group C - Facility Opens Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Photo North East ISD Budget

170 2007 Bond Program Project Name: Garner Middle School Athletic &Fine Arts Additions & Auditorium Renovation Project Category: Facility Improvements Budget Construction (includes design) $ 9,214,610 Technology 15,000 Furniture and Equipment 152,594 Construction Management Administration 302,970 Total $ 9,685,174 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing facilities. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-in Facility Opens Photos North East ISD Budget

171 2007 Bond Program Project Name: Eisenhower Middle School Auditorium & Restroom Renovations Project Category: Facility Improvements Budget Construction (includes design) $ 1,929,891 Technology - Furniture and Equipment 4,098 Construction Management Administration 63,809 Total $ 1,997,798 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing facilities. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Facility Opens North East ISD Budget

172 2007 Bond Program Project Name: White Middle School Fine Arts Addition Project Category: Facility Improvements Budget Construction (includes design) $ 2,239,834 Technology 2,500 Furniture and Equipment 33,580 Construction Management Administration 69,487 Total $ 2,345,401 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing facilities. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-In Facility Opens North East ISD Budget

173 2007 Bond Program Project Name: MacArthur High School Auditorium & Band Hall Restroom Renovations Project Category: Facility Improvements Budget Construction (includes design) $ 378,872 Technology - Furniture and Equipment - Construction Management Administration 12,666 Total $ 391,538 Operating Impact This project has no significant impact on the District's operating budget. This new facility renovates or replaces existing facilities. Timetable Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Design Bid Proposals Award Contract Procure Equipment Construction Facility Opens Photos North East ISD Budget

174 2007 Bond Program Project Name: Churchill High School Athletic Facility Project Category: Facility Improvements Budget Construction (includes design) $ 33,342,242 Technology 191,868 Furniture and Equipment 585,126 Construction Management Administration 1,104,933 Total $ 35,224,169 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-In Facility Opens Photo North East ISD Budget

175 Project Name: Lee High School Athletic Facility Project Category: Facility Improvements 2007 Bond Program Budget Construction (includes design) $ 4,597,327 Technology - Furniture and Equipment 37,559 Construction Management Administration 138,980 Total $ 4,773,866 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-In Facility Opens North East ISD Budget

176 2007 Bond Program Project Name: Lee High School (Basse) Athletic Facility & Lighting & Seating Expansion Project Category: Facility Improvements Budget Construction (includes design) $ 1,455,431 Technology - Furniture and Equipment - Construction Management Administration 47,235 Total $ 1,502,666 Operating Impact This project has no significant impact on the District's operating budget. This new facility renovates or replaces existing facilities. Timetable Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Facility Opens Photo North East ISD Budget

177 2007 Bond Program Project Name: Madison High School Athletic & Fine Arts Additions Project Category: Facility Improvements Budget Construction (includes design) $ 33,168,462 Technology 154,042 Furniture and Equipment 675,653 Construction Management Administration 1,074,792 Total $ 35,072,949 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-In Facility Opens Photo North East ISD Budget

178 2007 Bond Program Project Name: Agri-Science Magnet Facility Replacement Project Category: Facility Improvements Budget Construction (includes design) $ 24,386,430 Technology 179,042 Furniture and Equipment 484,802 Construction Management Administration 798,702 Total $ 25,848,976 Operating Impact This project has no significant impact on the District's operating budget. This new facility is intended to replace existing portable buildings. However, enrollment growth may change the expectation for the number of portables needed. This kind of change would create the need for additional utilities and custodial services. See the "Capital Projects Impact Summary" for the overall effect of construction growth on utilities and custodial services. Timetable Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Design Bid Proposals Award Contract City Review for Permit Pre-Construction Services Construction Test, Balance, & Commissioning Move-In Facility Opens Photos North East ISD Budget

179 2007 Bond Program Project Name: Elementary School HVAC Expansion (23 Campuses) Project Category: Facility Improvements Budget Construction (includes design) $ 10,754,847 Technology - Furniture and Equipment - Construction Management Administration 346,035 Total $ 11,100,882 Operating Impact Utilities $ 151,800 Timetable Oct-07 Jan-08 Jun-08 Oct-08 Jan-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Group A - Design Group A - Bid Proposals Group A - Award Contract Group A - City Review for Permit Group A - Pre-Construction Services Group A - Construction Group A - Test, Balance, & Commissioning Group A - Move-in Group A - Facility Opens Group B - Design Group B - Bid Proposals Group B - Award Contract Group B - City Review for Permit Group B - Pre-Construction Services Group B - Construction Group B - Test, Balance, & Commissioning Group B - Move-in Group B - Facility Opens Group C - Design Group C - Bid Proposals Group C - Award Contract Group C - City Review for Permit Group C - Pre-Construction Services Group C - Construction Group C - Test, Balance, & Commissioning Group C - Move-in Group C - Facility Opens North East ISD Budget

180 2007 Bond Program Project Name: Middle School and High School HVAC Expansion (18 Campuses) Project Category: Facility Improvements Budget Construction (includes design) $ 38,208,449 Furniture and Equipment 34,538 Construction Management Administration 1,257,831 Total $ 39,500,818 Operating Impact Utilities $ 540,000 Timetable - Middle Schools Group A - Design Group A - Bid Proposals Group A - Award Contract Group A - City Review for Permit Group A - Pre-Construction Services Group A - Construction Group A - Test, Balance, & Commissioning Group A - Move-in Group A - Facility Opens Group B - Design Group B - Bid Proposals Group B - Award Contract Group B - City Review for Permit Group B - Pre-Construction Services Group B - Construction Group B - Test, Balance, & Commissioning Group B - Move-in Group B - Facility Opens Group C - Design Group C - Bid Proposals Group C - Award Contract Group C - City Review for Permit Group C - Pre-Construction Services Group C - Construction Group C - Test, Balance, & Commissioning Group C - Move-in Group C - Facility Opens Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Timetable - High Schools Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Johnson - Design Johnson - Award Contract Johnson - Procure Equipment Johnson - Test, Balance, & Commissioning Johnson - Move-in Roosevelt - Design Roosevelt - Award Contract Roosevelt - Procure Equipment Roosevelt - Test, Balance, & Commissioning Roosevelt - Move-in Mac & Reagan - Design Mac & Reagan - Bid Proposals Mac & Reagan - Award Contract Mac & Reagan - City Review for Permit Mac & Reagam - Procure Equipment Mac & Reagan - Test, Balance, & Commissioning Mac & Reagan - Move-in North East ISD Budget

181 2007 Bond Program Project Name: Roofing Program -Reroof 11 campuses and 1 district facility over 5 years Project Category: Facility Improvements Budget Construction (includes design) $ 9,006,870 Technology - Furniture and Equipment - Construction Management Administration 305,776 Total $ 9,312,646 Operating Impact This project has no significant impact on the District's operating budget. These are renovations of existing facilities. Campuses/Facility El Dorado ES $ 967,156 Montgomery ES 344,859 Northern Hills ES 765,172 Regency Place ES 208,026 Serna ES 877,636 Thousand Oaks ES 1,422,577 Bradley MS 681,619 Krueger MS 30,565 Nimitz MS 957,833 White MS 1,547,586 Lee HS 1,121,144 North East Police & Engineering Facility 388,473 Total $ 9,312,646 North East ISD Budget

182 2007 Bond Program Project Name: Kitchen Facility HVAC System Upgrades (15 campuses) Project Category: Facility Improvements Budget Construction (includes design) $ 1,296,763 Technology - Furniture and Equipment - Construction Management Administration 40,421 Total $ 1,337,184 Operating Impact This project has no significant impact on the District's operating budget. These are renovations of existing facilities. Timetable Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Group A - Design Group A - Bid Proposals Group A - Award Contract Group A - City Review for Permit Group A - Pre-Construction Services Group A - Procure Equipment Group A - Facility Opens Group B - Design Group B - Bid Proposals Group B - Award Contract Group B - City Review for Permit Group B - Pre-Construction Services Group B - Procurement Long Lead Equipment Group B - Facility Opens Group C - Design Group C - Bid Proposals Group C - Award Contract Group C - City Review for Permit Group C - Pre-Construction Services Group C - Procurement Long Lead Equipment Group C - Facility Opens North East ISD Budget

183 2007 Bond Program Project Name: Instructional Technology & Library Package Project Category: Facility Improvements Budget - Instructional Technology Digital Projectors for all Classrooms Construction (includes design) $ 10,673,464 Technology - Furniture and Equipment - Construction Management Administration 353,362 Total $ 11,026,826 Budget - Instructional Technology Package Construction (includes design) $ - Technology 31,203,174 Furniture and Equipment 1,970,000 Construction Management Administration - Total $ 33,173,174 Budget - Infrastructure for Technology Package Construction (includes design) $ - Technology 7,800,000 Furniture and Equipment - Construction Management Administration - Total $ 7,800,000 Operating Impact These projects have no significant impact on the District's operating budget. North East ISD Budget

184 2007 Bond Program Project Name: Transportation School Bus Replacement Program (130 Buses) & Satellite Facility Renovation Project Category: Facility Improvements Budget Construction (includes design) $ 11,804,712 Technology - Furniture and Equipment 11,118,219 Construction Management Administration - Total $ 22,922,931 Operating Impact Additional operating costs for the satellite facility renovation will be offset by savings from reduced bus mileage. It is expected that the reduced labor and gas costs due to having a facility closer to the schools north of Loop 1604 will be between $500,000 and $800,000. Photo North East ISD Budget

185 Energy Management Energy management is a significant component of the District s capital projects and facilities assessment. The energy management team of the Facilities Maintenance department is responsible for the following: Utility Cost Monitoring and Evaluation Energy Management Control System Optimization Campus Energy Awareness Energy Efficiency Improvement Projects Water Conservation & Waste Management Practices The District utilizes an Energy Management Control System which is managed and controlled by energy control technicians. It controls 70% of the District s total energy usage and is connected to HVAC and outdoor lighting systems. The Energy Management Control System provides centralized access to and control of run time scheduling, electronic heating and cooling, temperature and relative humidity settings, outdoor lighting, and performance diagnostics. The Energy Management Control System allows the District to optimize energy use in buildings as they are being operated. The system reviews set points, schedules and controls programming, and implements programming enhancements. It also continuously validates the effectiveness of energy saving strategies to reduce energy consumption and demand while maintaining a comfortable learning and working environment. As part of the design team, the Energy Management staff provides input to help design efficient and effective HVAC systems. They ensure that the most efficient energy technology is used to keep utility costs low for new construction projects. Due to better technology and design, the District s newer facilities average close to $1.00 per square foot in utility cost. Older facilities can cost over $1.50 per square foot. The Energy Management department uses energy efficiency improvement projects to reduce costs at more costly facilities. If the District were to reduce the electricity cost per square foot to $1.00/sqft for all campuses currently over that amount, the District would save approximately $600,000. If the total utility cost per campus could be reduced to $1.00 per square foot, the District would save $1.6 million. The following table lists the utility costs per campus. The Energy Management team strives to reduce energy costs through energy efficiency improvement projects and through capital projects which allow for new HVAC technology. School Building Information on page 179 lists the District s square footage and building information for the last five years while Utility Costs on pages provides a comparison of utility cost per square foot by campus. The Energy Management team uses energy efficiency improvement projects to reduce energy costs. These projects include: Lighting Retrofits Utility Company Rebate and Incentive Programs SAWS Low Flow Toilet Retrofit of 1,100 Toilets completed o $120,000/year in water savings The District s Energy Management team is also a part of the design team for any new construction project. North East ISD Budget

186 School Building Information Elementary Schools # of Locations Square Footage 3,443,769 3,609,661 3,609,661 3,587,513 3,587,513 Enrollment 29,073 29,810 30,082 30,496 31,071 Middle Schools # of Locations Square Footage 1,544,177 1,820,893 2,019,255 2,128,016 2,128,016 Enrollment 13,259 13,745 14,063 14,475 14,830 High Schools # of Locations Square Footage 2,146,667 2,153,835 2,153,835 2,997,475 2,997,475 Enrollment 17,492 17,700 18,036 18,481 19,294 Alternative Schools # of Locations Square Footage 134, , , , ,696 Athletic Facilities Square Footage 129, , , , ,732 Administration Square Footage 147, , , , ,456 Support Facilities Square Footage 349, , , , ,046 District Totals # of Locations Square Footage 7,895,488 8,341,259 8,539,621 9,496,383 9,566,934 Enrollment 59,824 61,255 62,181 63,452 65,195 North East ISD Budget

187 Utility Costs Electricity Electricity Electricity Avg Less than / Total Campus SqFt Usage (kwh) Electricity Cost Cost / kwh Cost / SqFt Cost/SqFt by Level (Greater than) Avg Cost / SqFt High Schools Johnson 440,000 4,585,500 $330,588 $ $0.75 $0.99 $0.24 $ 0.92 Roosevelt 440,984 5,550,424 $392,127 $ $0.89 $0.99 $0.10 $ 1.00 Reagan 409,784 5,119,680 $384,356 $ $0.94 $0.99 $0.05 $ 1.05 MacArthur 429,971 5,298,747 $398,970 $ $0.93 $0.99 $0.06 $ 1.08 Lee 460,281 6,460,815 $487,727 $ $1.06 $0.99 ($0.07) $ 1.26 Churchill 437,545 6,742,779 $498,814 $ $1.14 $0.99 ($0.15) $ 1.38 Madison 378,910 5,986,624 $465,656 $ $1.23 $0.99 ($0.24) $ 1.46 Middle Schools Harris 198,396 1,854,720 $143,229 $ $0.72 $1.00 $0.27 $ 0.79 Lopez 197,196 1,827,360 $140,357 $ $0.71 $1.00 $0.28 $ 0.80 Driscoll 165,919 1,687,680 $126,944 $ $0.77 $1.00 $0.23 $ 0.85 Wood 165,079 1,647,521 $131,785 $ $0.80 $1.00 $0.20 $ 0.94 Nimitz 176,324 2,099,629 $167,626 $ $0.95 $1.00 $0.05 $ 1.10 Krueger 158,900 2,062,080 $161,597 $ $1.02 $1.00 ($0.02) $ 1.13 White 163,052 2,103,186 $163,471 $ $1.00 $1.00 ($0.01) $ 1.15 Bradley 153,473 2,248,320 $172,863 $ $1.13 $1.00 ($0.13) $ 1.27 Tejeda 169,954 2,386,800 $192,185 $ $1.13 $1.00 ($0.13) $ 1.28 Bush 165,277 2,404,800 $188,004 $ $1.14 $1.00 ($0.14) $ 1.32 Eisenhower 141,568 1,988,316 $161,508 $ $1.14 $1.00 ($0.14) $ 1.32 Jackson 148,770 2,214,036 $176,995 $ $1.19 $1.00 ($0.19) $ 1.34 Garner 124,108 1,890,006 $155,890 $ $1.26 $1.00 ($0.26) $ 1.54 North East ISD Budget

188 Campus SqFt Electricity Usage (kwh) Utility Costs Electricity Cost Electricity Cost / kwh Electricity Cost / SqFt Avg Cost/SqFt by Level Less than / (Greater than) Avg Total Cost / SqFt Elementary Schools Wilderness Oak 145,260 1,319,040 $105,506 $ $0.73 $1.07 $0.34 $ 0.85 Redland Oaks 92, ,512 $77,348 $ $0.84 $1.07 $0.23 $ 0.91 Bulvede Creek 115,965 1,226,250 $99,148 $ $0.85 $1.07 $0.21 $ 0.92 Canyon Ridge 145,260 1,501,200 $120,006 $ $0.83 $1.07 $0.24 $ 0.95 Steubing Ranch 108,285 1,239,000 $99,781 $ $0.92 $1.07 $0.14 $ 0.98 Olmos 96,398 1,083,200 $83,767 $ $0.87 $1.07 $0.20 $ 0.99 Woodstone 92,823 1,069,632 $83,922 $ $0.90 $1.07 $0.16 $ 1.02 Hidden Forest 68, ,586 $65,847 $ $0.96 $1.07 $0.10 $ 1.05 Thousand Oaks 90,322 1,072,512 $84,744 $ $0.94 $1.07 $0.13 $ 1.06 Roan Forest 102,282 1,257,840 $97,997 $ $0.96 $1.07 $0.11 $ 1.08 Royal Ridge 88, ,416 $79,993 $ $0.90 $1.07 $0.16 $ 1.09 Stahl 98,398 1,192,000 $95,637 $ $0.97 $1.07 $0.09 $ 1.09 Oak Meadow 103,575 1,203,456 $96,601 $ $0.93 $1.07 $0.13 $ 1.11 Fox Run 105,026 1,296,864 $103,619 $ $0.99 $1.07 $0.08 $ 1.13 Windcrest 68, ,984 $68,213 $ $1.00 $1.07 $0.06 $ 1.14 Montgomery 84,797 1,130,684 $89,504 $ $1.06 $1.07 $0.01 $ 1.14 Oak Grove 65, ,104 $66,517 $ $1.02 $1.07 $0.05 $ 1.16 Walzem 83,503 1,044,456 $84,016 $ $1.01 $1.07 $0.06 $ 1.18 West Avenue 56, ,680 $57,590 $ $1.01 $1.07 $0.06 $ 1.18 Ridgeview 83,653 1,045,824 $82,421 $ $0.99 $1.07 $0.08 $ 1.18 Northwood 62, ,320 $61,923 $ $0.99 $1.07 $0.08 $ 1.18 Hardy Oak 103,818 1,403,232 $111,350 $ $1.07 $1.07 ($0.01) $ 1.18 Huebner 97,674 1,340,544 $107,601 $ $1.10 $1.07 ($0.04) $ 1.19 Castle Hills 85,560 1,063,680 $86,477 $ $1.01 $1.07 $0.06 $ 1.20 Wetmore 97,674 1,188,720 $97,926 $ $1.00 $1.07 $0.06 $ 1.21 Jackson-Keller 76,224 1,037,760 $80,964 $ $1.06 $1.07 $0.00 $ 1.22 Wilshire 60, ,512 $67,878 $ $1.13 $1.07 ($0.06) $ 1.24 Stone Oak 100,746 1,498,797 $115,037 $ $1.14 $1.07 ($0.08) $ 1.26 Encino Park 91,342 1,406,592 $108,004 $ $1.18 $1.07 ($0.12) $ 1.27 Northern Hills 77,736 1,132,032 $88,695 $ $1.14 $1.07 ($0.07) $ 1.28 Colonial Hills 93,605 1,317,600 $103,701 $ $1.11 $1.07 ($0.04) $ 1.29 East Terrell Hills 70,120 1,013,184 $79,384 $ $1.13 $1.07 ($0.07) $ 1.30 Harmony Hills 67, ,232 $77,813 $ $1.16 $1.07 ($0.09) $ 1.41 Longs Creek 100,746 1,599,360 $128,989 $ $1.28 $1.07 ($0.21) $ 1.41 Camelot 62, ,860 $78,756 $ $1.26 $1.07 ($0.19) $ 1.43 El Dorado 64,902 1,105,168 $87,325 $ $1.35 $1.07 ($0.28) $ 1.48 Regency Place 57, ,176 $78,749 $ $1.36 $1.07 ($0.30) $ 1.50 Dellview 56, ,736 $74,019 $ $1.30 $1.07 ($0.23) $ 1.51 Serna 70,000 1,086,336 $86,244 $ $1.23 $1.07 ($0.17) $ 1.52 Coker 75,615 1,099,706 $88,528 $ $1.17 $1.07 ($0.10) $ 1.54 Clear Spring 55, ,856 $80,169 $ $1.45 $1.07 ($0.39) $ 1.61 Larkspur 64,202 1,235,032 $94,778 $ $1.48 $1.07 ($0.41) $ 1.66 North East ISD Budget

189 Utility Costs Campus SqFt High Schools Johnson 440,000 Roosevelt 440,984 Reagan 409,784 MacArthur 429,971 Lee 460,281 Churchill 437,545 Madison 378,910 Middle Schools Harris 198,396 Lopez 197,196 Driscoll 165,919 Wood 165,079 Nimitz 176,324 Krueger 158,900 White 163,052 Bradley 153,473 Tejeda 169,954 Bush 165,277 Eisenhower 141,568 Jackson 148,770 Garner 124,108 Gas Usage (CCF) Gas Cost Gas Cost / CCF Gas Cost / SqFt Avg Cost/SqFt by Level Less than / (Greater than) Avg Total Cost / SqFt 100,205 $75,369 $ $0.17 $0.17 $0.00 $ ,169 $49,423 $ $0.11 $0.17 $0.06 $ ,138 $46,678 $ $0.11 $0.17 $0.06 $ ,179 $65,292 $ $0.15 $0.17 $0.02 $ ,849 $93,768 $ $0.20 $0.17 ($0.03) $ ,856 $103,732 $ $0.24 $0.17 ($0.06) $ ,155 $86,607 $ $0.23 $0.17 ($0.05) $ ,228 $13,567 $ $0.07 $0.14 $0.08 $ ,104 $18,154 $ $0.09 $0.14 $0.05 $ ,867 $14,382 $ $0.09 $0.14 $0.06 $ ,382 $22,956 $ $0.14 $0.14 $0.01 $ ,091 $27,011 $ $0.15 $0.14 ($0.01) $ ,108 $17,170 $ $0.11 $0.14 $0.04 $ ,416 $24,274 $ $0.15 $0.14 ($0.00) $ ,214 $21,845 $ $0.14 $0.14 $0.00 $ ,972 $25,956 $ $0.15 $0.14 ($0.01) $ ,000 $29,580 $ $0.18 $0.14 ($0.03) $ ,153 $25,334 $ $0.18 $0.14 ($0.03) $ ,679 $22,226 $ $0.15 $0.14 ($0.00) $ ,311 $34,985 $ $0.28 $0.14 ($0.14) $ 1.54 North East ISD Budget

190 Utility Costs Campus SqFt Elementary Schools Wilderness Oak 145,260 Redland Oaks 92,017 Bulvede Creek 115,965 Canyon Ridge 145,260 Steubing Ranch 108,285 Olmos 96,398 Woodstone 92,823 Hidden Forest 68,292 Thousand Oaks 90,322 Roan Forest 102,282 Royal Ridge 88,632 Stahl 98,398 Oak Meadow 103,575 Fox Run 105,026 Windcrest 68,046 Montgomery 84,797 Oak Grove 65,437 Walzem 83,503 West Avenue 56,994 Ridgeview 83,653 Northwood 62,715 Hardy Oak 103,818 Huebner 97,674 Castle Hills 85,560 Wetmore 97,674 Jackson-Keller 76,224 Wilshire 60,266 Stone Oak 100,746 Encino Park 91,342 Northern Hills 77,736 Colonial Hills 93,605 East Terrell Hills 70,120 Harmony Hills 67,211 Longs Creek 100,746 Camelot 62,479 El Dorado 64,902 Regency Place 57,780 Dellview 56,944 Serna 70,000 Coker 75,615 Clear Spring 55,189 Larkspur 64,202 Gas Usage (CCF) Gas Cost Gas Cost / CCF Gas Cost / SqFt Avg Cost/SqFt by Level Less than / (Greater than) Avg Total Cost / SqFt 22,368 $17,754 $ $0.12 $0.15 $0.03 $ ,998 $6,447 $ $0.07 $0.15 $0.08 $ ,708 $7,611 $ $0.07 $0.15 $0.08 $ ,224 $17,804 $ $0.12 $0.15 $0.03 $ ,639 $6,869 $ $0.06 $0.15 $0.09 $ ,209 $12,074 $ $0.13 $0.15 $0.03 $ ,766 $10,532 $ $0.11 $0.15 $0.04 $ ,119 $5,760 $ $0.08 $0.15 $0.07 $ ,752 $10,568 $ $0.12 $0.15 $0.03 $ ,815 $12,168 $ $0.12 $0.15 $0.03 $ ,977 $16,425 $ $0.19 $0.15 ($0.03) $ ,269 $11,980 $ $0.12 $0.15 $0.03 $ ,098 $18,250 $ $0.18 $0.15 ($0.03) $ ,048 $15,508 $ $0.15 $0.15 $0.00 $ ,392 $9,235 $ $0.14 $0.15 $0.01 $ ,907 $7,431 $ $0.09 $0.15 $0.06 $ ,209 $9,104 $ $0.14 $0.15 $0.01 $ ,352 $14,107 $ $0.17 $0.15 ($0.02) $ ,725 $9,429 $ $0.17 $0.15 ($0.01) $ ,102 $15,947 $ $0.19 $0.15 ($0.04) $ ,502 $12,086 $ $0.19 $0.15 ($0.04) $ ,478 $11,198 $ $0.11 $0.15 $0.04 $ ,419 $8,618 $ $0.09 $0.15 $0.06 $ ,269 $16,161 $ $0.19 $0.15 ($0.04) $ ,384 $20,584 $ $0.21 $0.15 ($0.06) $ ,360 $12,105 $ $0.16 $0.15 ($0.01) $ ,738 $7,063 $ $0.12 $0.15 $0.03 $ ,736 $12,083 $ $0.12 $0.15 $0.03 $ ,290 $8,271 $ $0.09 $0.15 $0.06 $ ,135 $11,082 $ $0.14 $0.15 $0.01 $ ,676 $16,721 $ $0.18 $0.15 ($0.03) $ ,948 $11,741 $ $0.17 $0.15 ($0.02) $ ,467 $16,750 $ $0.25 $0.15 ($0.10) $ ,912 $13,474 $ $0.13 $0.15 $0.02 $ ,191 $10,300 $ $0.16 $0.15 ($0.01) $ ,279 $8,876 $ $0.14 $0.15 $0.01 $ ,963 $8,041 $ $0.14 $0.15 $0.01 $ ,597 $12,204 $ $0.21 $0.15 ($0.06) $ ,424 $20,222 $ $0.29 $0.15 ($0.14) $ ,475 $27,604 $ $0.37 $0.15 ($0.21) $ ,998 $8,900 $ $0.16 $0.15 ($0.01) $ ,047 $11,941 $ $0.19 $0.15 ($0.04) $ 1.66 North East ISD Budget

191 Long Range Financial Forecast North East ISD prepares long-term forecasts concurrently with budget preparation. The forecast includes the budget year and three subsequent fiscal years. General Fund Included in this budget book are the three main components of the District s General Fund forecasting model. Summary The summary sheet is a composite of all the calculations performed on each of the other worksheets described below. The summary section of the financial forecast consolidates planned tax value estimates, enrollment projections, State aid estimates, and other factors into a single comprehensive financial forecast. District currently has no authorized but un-issued debt and the North East Board of Trustees has not called for an authorization of new debt. Therefore, no future issues are included in this forecast. School Nutrition Services Fund This forecast assumes annual increases in local revenue of 10% and annual increase of State and Federal revenue of 3% to 5%. Expenditures are forecasted with 2% to 3% annual growth rates. The School Nutrition Services forecast uses the same enrollment projections as is used in the General Fund forecast model. Assumptions This section outlines the assumptions used in the model, including enrollment, property values, highlevel staffing changes, major inflationary changes, and compensation increases. State Revenue Estimate Worksheet The calculations on the worksheet are based on the current funding formulas established by the Texas Legislature. Three of the most critical factors in estimating General Fund State Aid are ADA projections, taxable value, and taxes collected. Other factors such as FTE s, ADA, and identified students participating in special programs also generate aid and must be projected. The template for is included in this book; all future years use a similar template. Debt Service Fund The forecast for the Debt Service Fund utilizes the same property value forecast data as is used in the General Fund forecast model. The forecast uses the debt service requirements detailed on pages Although the District uses this forecast when analyzing the impact of any future bond issue, the North East ISD Budget

192 Assumptions Used for Long-Term Forecast General Fund REVENUE ASSUMPTIONS Enrollment 65,505 66,772 68,107 69,470 70,859 Enrollment Increase 3.2% 1.9% 2.0% 2.0% 2.0% ADA as % of Enrollment 93.78% 94.18% 94.18% 94.18% 94.18% ADA 61, , , , ,731.5 WADA 77, , , , ,614.6 WADA as % of ADA 125.5% 125.3% 125.1% 124.9% 125.3% CPTD (2006 for 07-08, etc) $ 27,568,384,800 $ 27,702,858,778 $ 27,287,315,896 $ 27,014,442,737 $ 27,014,442,737 CPTD Increase Percentage 10.0% 0.5% (1.5%) (1.0%) 0.0% Wealth per WADA $ 357,721 $ 351,595 $ 340,074 $ 330,600 $ 323,083 M&O Tax Rate $ 1.04 $ 1.04 $ 1.04 $ 1.04 $ 1.04 Chapter 41 Recapture? No No No No No Local Taxable Value $ 27,628,219,881 $ 27,213,796,583 $ 26,941,658,617 $ 26,941,658,617 $ 27,749,908,376 Local Increase Percentage 0.2% (1.5%) (1.0%) 0.0% 3.0% M&O Levy $ 287,333,487 $ 283,023,484 $ 280,193,250 $ 280,193,250 $ 288,599,047 Collection % -- Current 98.30% 98.40% 98.50% 98.60% 98.6% Collection % -- Total 98.88% 99.30% 99.70% % 100.0% Local Revenue per Penny $ 2,762, $ 2,721, $ 2,694, $ 2,694, $ 2,774, Basic Allotment $ 4,765 $ 4,765 $ 4,765 $ 4,765 $ 4,765 Tier II Yield per penny per WADA $ $ $ $ $ EXPENDITURE ASSUMPTIONS New Campuses Elementary Middle High Teacher Count -- Initial 4,272 4,267 4,340 4,435 New Teachers for Growth-Total (if no changes made) New Teachers for Growth-Actual Actual to Actual Change - Net (57) (56) (33) 1 $$ Value of Change $ 4,425,281 $ 4,777,711 $ 4,967,586 $ 4,800,624 Teacher Reductions (Actual Positions + Growth Avoidance) (130) (56) (33) - $$ Value of Change $ (7,880,637) $ (3,474,699) $ (2,101,671) $ - New Teachers from contingency during year $$ Value of Change $ 3,200,000 $ 3,200,000 $ 3,200,000 $ 3,200,000 Net Change in Teachers by End of Year (4) $$ Value of Change $ (255,356) $ 4,503,012 $ 6,065,915 $ 8,000,624 Campus Admin FTE change (not incl new schools) (12) $$ Value of Change $ (735,045) $ - $ - $ - Campus Para FTE change (not incl new schools) (64) $$ Value of Change $ (1,924,576) $ - $ - $ - New Schools Campus Professionals New Schools Campus Paraprofessionals New Schools Campus Custodial $$ Value of New Campus Costs $ 2,608,731 $ 523,356 $ 2,699,702 $ - Non-campus reductions $ (800,000) $ (1,598,000) $ - $ - Reductions not yet identified $ (1,884,000) $ (1,592,000) North East ISD Budget

193 Assumptions Used for Long-Term Forecast General Fund Salary Increase Teachers 1.0% 2.5% 2.5% 2.5% $$ Value of Change $ 2,415,567 $ 6,398,432 $ 6,669,877 $ 6,986,724 Admin 0.0% 2.5% 2.5% 2.5% $$ Value of Change $ - $ 1,514,254 $ 1,752,031 $ 1,804,872 Classified 0.0% 2.5% 2.5% 2.5% $$ Value of Change $ - $ 1,497,926 $ 1,519,373 $ 1,597,086 Median Teacher Salary $ 51,480 $ 51,995 $ 53,295 $ 54,627 $ 55,993 Retention Supplement Teachers $ 1,350 $ 1,000 $ 0 $ 0 $ 0 $$ Value of Change $ (1,577,674) $ (4,507,640) $ - $ - Admin $ 1,350 $ 1,000 $ 0 $ 0 $ 0 $$ Value of Change $ (214,418) $ (629,017) $ - $ - Classified 3.0% 2.0% 0.0% 0.0% 0.0% $$ Value of Change $ (547,617) $ (1,074,278) $ - $ - Executive Directors / Exec Staff $ (27,000) Health Insurance Increase 0.0% 0.0% 5.0% 0.0% Per Employee Amount $ 3,504 $ 3,504 $ 3,679 $ 3,679 $$ Value of Change $ - $ - $ 1,268,247 $ - Utility Increase (not including new schools) 7.5% 6.0% 6.0% 6.0% $$ Value of Change $ 876,208 $ 636,249 $ 682,355 $ 878,275 Fuel Increase 6.0% 6.0% 6.0% 6.0% $$ Value of Change $ 104,904 $ 29,815 $ 35,846 $ 84,656 Transportation/Custodial Savings $ (897,000) AARs Approval Limit $ 1,300,000 $ 3,564,757 $ 3,500,000 $ 3,500,000 $ 3,500,000 Ongoing $ 984,293 $ 2,907,914 $ 2,368,534 $ 2,368,534 $ 2,368,534 One-Year $ 315,707 $ 656,843 $ 1,131,466 $ 1,131,466 $ 1,131,466 Total AARs $ 1,300,000 $ 3,564,757 $ 3,500,000 $ 3,500,000 $ 3,500,000 Net New AARs $ (1,563,594) $ 3,249,050 $ 2,843,157 $ 2,368,534 $ 2,368,534 Priority 1 AARs $ 1,675,000 $ 1,675,000 $ 1,675,000 $ 1,675,000 North East ISD Budget

194 Financial Projection General Fund Near Final Adopted Budget Projected Actual Projected Actual Projected Actual Projected Actual Revenues Local Revenue $ 290,260,949 $ 290,178,278 $ 287,662,100 $ 285,874,800 $ 287,073,000 $ 295,993,500 State Revenue 200,271, ,635, ,802, ,108, ,681, ,363,380 Federal Revenue 4,082,809 3,988,966 5,805,200 5,228,500 5,252,700 5,277,900 Other Sources 1,771, , , , , ,000 Total Revenues $ 496,386,472 $ 504,023,996 $ 505,494,951 $ 514,436,517 $ 524,232,041 $ 534,859,780 Expenditures Payroll Costs $ 426,443,586 $ 428,722,830 $ 426,235,675 $ 431,925,519 $ 450,798,973 $ 470,408,134 Professional & Contracted Services 37,646,738 41,799,209 38,961,410 40,960,545 42,890,905 44,343,736 Supplies & Materials 16,429,463 17,636,942 17,597,528 17,995,364 18,543,102 18,910,295 Other Operating Expenses 3,824,516 5,815,832 4,089,637 4,188,833 4,280,336 4,367,218 Capital Outlay 586, , , , , ,415 Other Uses 563, , , , , ,057 Total Expenditures $ 485,494,487 $ 494,829,982 $ 488,106,368 $ 496,359,652 $ 517,831,247 $ 539,375,855 Revenues Over/(Under) Expenditures $ 10,891,985 $ 9,194,014 $ 17,388,582 $ 18,076,865 $ 6,400,794 $ (4,516,075) Fund Balance, Beginning 61,002,284 71,894,269 81,088,283 98,476, ,553, ,954,524 Fund Balance, Ending $ 71,894,269 $ 81,088,283 $ 98,476,865 $ 116,553,730 $ 122,954,524 $ 118,438,449 Fund Balance as % of Oper Revenue 15.2% 16.9% 18.6% 21.9% 22.8% 21.5% Fund Balance in Operating Months Per Student Expenditures $ 7,412 $ 7,411 $ 7,310 $ 7,288 $ 7,454 $ 7,612 Change from Prior Year $ (89) $ (1) $ (101) $ (22) $ 166 $ 158 % Change (1.2%) (0.0%) (1.4%) (0.3%) 2.3% 2.1% North East ISD Budget

195 State Revenue Forecast Template Source Estimate 1 ADA/FTEs Total Refined ADA PEIMS 62, Total Special Ed FTEs PEIMS 1, Total Career & Tech FTEs PEIMS 2, Regular Program ADA Formula 59, Regular Block Grant A BA per ADA Law $ 4,765 B ABA = BA x (((CEI - 1) x.71) + 1) Formula $ 5,137 C SDA is N/A D MSDA is N/A E AA Formula $ 5,137 F Regular Block Grant Formula $ 305,511,926 3 Additional Entitlements A Spec Ed Allotment 1 Regular Allotment Formula $ 18,337,276 (see below) 2 Mainstream ADA PEIMS 2, Mainstream Allotment Formula $ 15,481,940 3 Care & Treatment Allotment Formula $ 201,720 Setasides SOF $ (343,000) Total Spec Ed Allotment Formula $ 33,677,936 B CATE Allotment CATE FTEs PEIMS 2, Total CATE Allotment Formula $ 15,769,577 C G/T Allotment G/T Enrollment PEIMS 4,976 AP Tests SOF $ (13,000) Total G/T Allotment Formula $ 1,925,167 D Compensatory Ed Allotment 1 Avg Best 6 mo Free/Reduced Food Service 29,381 Free/Reduced Allotment Formula $ 30,186,039 2 Pregnancy Services FTEs PEIMS Pregnancy Allotment Formula $ 170,933 Total Comp Ed Allotment Formula $ 30,356,972 E Bilingual/ESL Allotment Bilingual ADA PEIMS 4, Total Bilingual/ESL Allotment Formula $ 2,463,253 F New Instructional Facilities Allotment NIFA ADA SOF 1, NIFA Formula $ 405,250 G Transportation SOF $ 3,242,200 H 2009 Comptrollers Property Tax Division Property Value SOF $ 27,702,858,778 Estimated Share of Reductions Formula $ (356,000) I High School Allotment Refined HS ADA PEIMS 18,240.0 High School Allotment Formula $ 5,016,000 4 Total Cost of Tier I Formula $ 398,368,282 5 Local Share of Tier I Formula $ 277,028,588 6 State Share of Tier I Formula $ 121,339,694 7 WADA Calculation A WADA Calculation 1 ADJTC = TCFSP -TR - NIFA - HSA Formula $ 390,047,832 2 ADJABA = 1 - [(ABA -BA) / (ABA X 2)] Formula North East ISD Budget

196 Source Estimate 3 WADA = (ADJTC X ADJABA) / BA Formula 78, Tier II Level 2 GYAL2 = (GL2 x WADA x DTRL2 x 100) - LRL2 Formula $ 7,641,730 1 TAXESL2 Formula $ 10,795,808 2 DTRL2 Formula $ LRL2 Formula $ 10,795,808 Yield amount Law $ STAFF ALLOTMENT Formula $ 1,781,250 Full-time staff Salary Rpt $ 3,150 Part-time staff Salary Rpt $ LOCAL REVENUE COLLECTED UP TO COMPRESSED RATE Taxable Value BCAD $ 27,213,796,583 Total M&O Rate Ordinance $ 1 Collection Percentage Formula $ 1 Compressed Rate Law $ 1 Local Compressed Rate $ 270,246, ADDITIONAL STATE AID FOR TAX REDUCTION 1 HOLD HARMLESS BASE Greater of Amount Region XIII $ 5,557 Old Rider 86 SOF $ 1,776,787 HOLD HARMLESS BASE Formula $ 449,665,608 2 Less Tier I Formula $ (121,339,694) 3 Less Local Compressed Formula $ (270,246,492) 4 CHAPTER 41 Recapture n/a $ - 5 ASATR Formula $ 58,079,422 Allowance for Regional Day Schoo for Blind-Deaf SOF $ (13,000) Technology Allotment Formula $ 1,844, TOTAL STATE AID $ 190,673,442 BY FUND 1999-Available School Fund $ 5,320, Foundation School Program $ 165,760, State Fiscal Stabilization Fund Indirect Costs $ 316, State Fiscal Stabilization Fund-Foundation School Program $ 9,238, State Fiscal Stabilization Fund-Available School Fund $ 8,193, Technology $ 1,844,346 Special Education FTE Detail Source FTE Weight Weighted FTE Homebound PEIMS Hospital PEIMS Speech PEIMS Resource PEIMS , Self-Contained PEIMS Off-home campus PEIMS VAC PEIMS State School PEIMS Non-Public Contracts PEIMS Care & Treatment PEIMS TOTAL 1, , , Allotment $ 18,337,276 North East ISD Budget

197 Financial Projection School Nutrition Services Near Final Budgeted Projected Projected Projected Revenues Local sources $ 13,527,712 $ 14,053,436 $ 14,404,772 $ 14,764,891 $ 15,134,013 State souces 647, , , ,550 1,020,767 Federal sources 15,095,836 15,497,754 15,916,193 16,345,931 16,787,271 Total Revenues $ 29,270,660 $ 30,372,867 $ 31,204,268 $ 32,060,372 $ 32,942,051 Expenditures by function Food Services $ 26,412,911 $ 28,673,785 $ 29,820,736 $ 31,013,566 $ 32,254,108 Plant Maintenance & Operations 1,252,264 1,320,000 1,359,600 1,400,388 1,442,400 Security & Monitoring Services 130, , , , ,410 Total Expenditures $ 27,795,727 $ 30,119,535 $ 31,309,859 $ 32,547,362 $ 33,833,918 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,474, ,332 (105,591) (486,990) (891,867) Other Financing Sources (Uses): Proceeds from sale of assets $ 128,936 $ - $ - $ - $ - Net Change in Fund Balance 1,603, ,332 (105,591) (486,990) (891,867) Fund Balances, Beginning 6,110,834 7,714,703 7,968,035 7,862,444 7,375,454 Fund Balances, Ending $ 7,714,703 $ 7,968,035 $ 7,862,444 $ 7,375,454 $ 6,483,587 North East ISD Budget

198 Financial Projection Debt Service Revenues Near Final Budgeted Projected Projected Projected Local sources $ 99,120,438 $ 99,395,169 $ 95,738,531 $ 93,622,264 $ 95,043,436 Total Revenues $ 99,120,438 $ 99,395,169 $ 95,738,531 $ 93,622,264 $ 95,043,436 Expenditures by Object Principal $ 35,330,000 $ 27,290,000 $ 46,685,000 $ 48,035,000 $ 41,475,000 Interest & Fees 60,437,916 59,191,416 58,062,616 56,623,141 55,129,235 Total Expenditures $ 95,767,916 $ 86,481,416 $ 104,747,616 $ 104,658,141 $ 96,604,235 Excess (Deficiency) of Revenues Over (Under) Expenditures $ 3,352,522 $ 12,913,753 $ (9,009,085) $ (11,035,877) $ (1,560,799) Fund Balances, Beginning 72,622,293 75,974,815 88,888,568 79,879,483 68,843,606 Fund Balances, Ending $ 75,974,815 $ 88,888,568 $ 79,879,483 $ 68,843,606 $ 67,282,807 Interest & Sinking Tax Rate $ $ $ $ $ North East ISD Budget

199 Human Resources Information Personnel expenses make up 87% of the District s budget; therefore, staffing allocations and the development of this portion of the budget are extremely important. The District s Department of Research and Information Technologies estimates the enrollment and associated staffing for each year. The Office of Budgets and Financial Analysis and the Human Resources Department work with the Research and Information Technologies Department to determine the budget. Campus Staffing Ratios Considerable changes were made to student-teacher staffing ratios for With enrollment growth of nearly 1,300 expected for , North East ISD would see an increase of 73 teachers, or $4.4 million, if staffing ratios remained at levels. Instead, the District will begin the year with approximately 58 fewer teacher positions, for a savings of approximately $3.5 million. The changes to NEISD s staffing ratios are detailed below. Summary Changes to Teaching Staff Approximate Level FTEs Savings High (35) ($2,109,000) Middle (26) ($1,570,000) Elementary 3 $180,000 Total (58) ($3,499,000) Teachers - High Schools Considerable changes were made to student teacher staffing ratios for The most significant change related to high schools switching from an A/B block schedule to a traditional 7-Period schedule. In A/B schedule, students attended onehalf of their classes on A days, and the other half on B days, with certain classes double-blocked, meaning the class met every day. The savings derived from switching to a traditional 7- Period schedule is in teacher staffing. Teachers are allotted 450 minutes of planning time for every ten school days. For the vast majority of teachers, this simply means a 45-minute planning period each day. In NEISD s A/B schedule, high school teachers still received one planning period each day; however, each of these periods was 90 minutes long, double the requirement. High school teachers were teaching six out of eight periods, or 75% utilization. In the new schedule, teachers hold class six out of seven periods for an 86% utilization rate. Although the District had nearly 1,300 high school teachers, the savings associated with an 11% increase in efficiency was not 143 positions. Each school has individual staffing requirements based on the campus enrollment. For instance, a school with only two teachers in a particular subject area can not achieve a savings of.22 FTEs. Also, there are particular special education and bilingual education needs at each campus that could be harmed from a reduction in staffing. Instead, each high school s bulk allocation ratio (allocation for non-specialized teaching areas) was increased 13% from 18.5:1 to 21:1. At enrollment levels, this change would reflect a savings of 97 positions, or approximately $5.9 million. The actual reduction to the budget was closer to $2.1 million. An increase to high school enrollment of almost 700 and changes to specialized subpopulations for required approximately 62 of the 97 positions be retained. Still, the change in schedule allowed the District to add more than 700 high school students and reduce the budget at the same time. Teachers Middle Schools Middle schools are staffed based on a teaming approach. A group of students are assigned to a team of teachers for all their core subject areas. For , each team of teachers was assigned approximately 148 students. For , the average number of students per team was increased to approximately 160, an increase of 8.1%. At enrollment levels, this reflects a savings of 40 positions, or approximately $2.4 million. The actual reduction to the budget was closer to $1.6 million. An increase to middle school enrollment of nearly 300 and changes to specialized sub-populations for required approximately 14 of the 40 positions be retained. Teachers Elementary Schools The elementary schools have a state mandated 22:1 class size maximum for grades K through 4th. Fifth grade does not have a mandated class size maximum. Therefore, for 5th grade, the District allocated using a 26:1 student teacher ratio. In practice, elementary K- North East ISD Budget

200 4 classes were staffed at 21.5:1 for , and increased to 21.9:1 for At enrollment levels, this reflects a savings of 17 positions, or approximately $1.0 million. With an increase to enrollment of more than 300 and mandated ratios, elementary teacher allocations increased by 3, or an addition to the budget of $0.2 million. Campus Administrators and Paraprofessionals The District tightened the ratios for administrative and paraprofessional allocations at campuses. Despite opening two new elementary schools, the total number of campus staff was reduced. Summary Changes to Campus Administrators Campus Administrator* New Schools Existing Schools Net Change Asst Principal 2.0 (3.0) (1.0) Counselor 3.0 (3.5) (0.5) Librarian Nurse Other - (3.0) (3.0) Total Positions 9.0 (9.0) - Cost (Savings) $573,000 ($625,000) ($52,000) * Principals for the new schools were added in The cost for the additional 9.0 professional FTEs for the two new elementary schools totaled $573,000. The 9.0 net administrative FTE reductions achieved a savings of $625,000. Summary Changes to Campus Paraprofessionals Campus Para New Schools Existing Schools Net Change Instruct. Asst 27.5 (45.5) (18.0) Clerical Staff 3.0 (17.0) (14.0) Total Positions 30.5 (62.5) (32.0) Cost (Savings) $661,000 ($1,879,000) ($1,218,000) The cost for the additional paraprofessional FTEs for the two new elementary schools totaled $661,000. The 62.5 paraprofessional FTE reductions achieved a savings of $1.9 million. The net change to the budget for adding staffing at the two new schools and adjusting staffing at existing schools is a savings of $1.3 million. Central Operations The reduction of 58 teaching positions was approximately 1.5% of the District s teaching staff. To ensure the budget reductions made an impact District-wide, the Central Operations (non-campus) staffing were also reduced, with a goal of a 1.5% reduction, or $1.2 million. Actual savings exceeded $1.5 million. Summary Changes to Central Operations Division Professional Para Classified Business Services (2.0) (3.0) - Campus Support - (1.0) - Instruction (4.0) (2.0) - Operations (1.0) - (30) Total Positions (7.0) (6.0) (30) Total Savings ($615,000) ($211,000) ($719,000) The single largest reduction was the elimination of one of the Superintendent s Executive Staff. The Associate Superintendent for Business Services/CFO retired and the position was not filled. Rather, the CFO s duties were re-allocated among the three remaining associate superintendents. In the Instruction Division, the reductions reflect fewer FTEs for psychologists and special education coordinators. The 30 FTE reductions in the Operations Division reflects (a) the fewer bus drivers needed for due to the opening of the District s additional transportation facility; and (b) the efficiencies gained from the continued restructuring of the District s custodial operations (the restructuring began in ). Additional Allocation Requests As a normal part of the budget process, campus and department managers were permitted to request staff positions that are above their base allocation by submitting an Additional Allocation Request (AAR). The Human Resources Department, the Department of Research and Information Technologies and the Office of Budgets and Financial Analysis evaluate these requests. Upon completion of the review, the North East ISD Budget

201 requests are submitted to Executive Staff for approval. Almost $2.8 million of staffing AARs were submitted; the total increase in appropriations for approved staffing changes based on additional allocation requests for was $2.1 million for 40.5 Full-Time Equivalent employees. These changes are detailed in each individual campus/department s budget report in the supplement to this Budget Book. Pay Structure The District maintains position classification and pay range structures for all jobs. Pay structures are designed and administered for the purpose of attracting and retaining qualified employees to achieve District goals. Jobs are grouped into position classification and pay structures in the following categories: teachers/librarians administrative-instructional exempt-salaried clerical administrative support technology support professional operations instructional support technology support hourly The Teacher Pay Scale is determined annually as part of the budget approval process. Certified classroom teachers, librarians, nurses (RNs) and counselors are paid no less than the minimum monthly salary on the state salary schedule based on total years of creditable experience. An individual s placement on the Teacher Salary Schedule is determined according to the commissioner s rules on creditable service. Currently, NEISD places classroom teachers and librarians on the pay step system and also differentiates in compensation between degree levels; Teacher/ Librarians who hold a master s degree are paid a stipend of $1,800 annually and Teachers/Librarians who hold a doctoral degree are paid an additional stipend of $1,500 annually. prices. Nonexempt employees are paid no less than the current federal wage in accordance with the federal Fair Labor Standards Act (FLSA). Pay ranges are reviewed annually and are adjusted as needed. North East ISD engaged the HR Services Group at the Texas Association of School Boards (TASB) to conduct a review of the district s employee compensation plan for exempt jobs. This study was conducted to objectively examine pay equity for employees and to determine if pay practices were internally fair and externally competitive. The primary goals for the project included the following: provide an objective assessment of pay based on job value develop an affordable plan to correct existing pay inequities develop pay system controls for the future. Market data on competitive pay practices was compiled and compared to district pay practices. Consultants analyzed the data to determine where the district is at risk and identified priorities for pay system improvements. Consultants assessed job classifications and made recommendations for adjustments to existing job classifications. Benchmark jobs were identified in each employee group and used as the basis for market pricing and setting pay ranges. The pay range hierarchy for each employee pay group was adjusted to ensure ongoing competitive pay ranges and internal pay system controls. Pay data of current employees was applied to the new models to assess the cost and impact of implementing the proposed pay structures. The pay scales are included at the end of this section. All other employee groups are classified on the midpoint pay system. Each job is assigned to a pay grade classification that determines the minimum, midpoint, and maximum pay ranges for the position. Jobs are assigned to pay grades on the basis of the following factors: 1) job qualifications and required skills; 2) job duties and responsibilities defined by the District, and 3) competitive benchmark job market North East ISD Budget

202 Staffing History by Position FTE Count Position Budget Teachers 4, , ,331.4 Campus Professionals Principal Assistant Principal Counselor Librarian Nurse Speech Therapist/Pathologist Department Head Educational Diagnostician LSSP/Psychologist Occupational Therapist Orientation/Mobility Specialist Physical Therapist Other Campus Instructional Paraprofessionals Educational Aide Certified Interpreter Non-Campus Support Professionals Psychologist Audiologist Social Worker Visiting Teacher Work-Based Site Coordinator Other Administration Superintendent Associate Superintendent Instructional Program Director Athletic Director Business Manager Director of Human Resources Auxiliary & Non-Instructional Paraprofessionals 2, , ,334.7 Total 8, , ,471.3 North East ISD Budget

203 Staffing History by Fund & Function FTE Count Fund/Function Budget General Fund Instruction 4, , ,794.9 Instructional Resources & Media Svcs Curriculum/Instruct. Staff Development Instructional Leadership School Leadership Guidance & Counseling Social Work Services Health Services Student Transportation Extracurricular Activities General Administration Facilities Maintenance & Operations Community Services Total General Fund 7, , ,311.5 School Nutrition Services Fund Food Services Facilities Maintenance & Operations Total School Nutrition Services All Other Funds Instruction Curriculum/Instruct. Staff Development Instructional Leadership School Leadership Guidance & Counseling Social Work Services Extracurricular Activities General Administration Facilities Maintenance & Operations Security & Monitoring Services Data Processing Services Community Services Facilities Acquisition & Construction Total Other Funds Grand Total 8, , ,471.3 North East ISD Budget

204 Staffing Metrics Compared to State Average Student-to-Staff Ratio by Position Students per FTE State Average Position Budget Teachers Campus Professionals Principal Assistant Principal Counselor Librarian Nurse Speech Therapist/Pathologist 1, , , , ,235.2 LSSP/Phychologist 1, , , , ,587.1 Other Campus Paraprofessionals Non-Campus Support Professionals Administration 6, , , Auxiliary & Non-Campus Paraprofessionals Total Allocation of FTEs by Function Budget State Average Function (All Funds) Instruction 59.8% 59.8% 59.6% 61.4% 61.3% Instructional Resources & Media Svcs 1.7% 1.7% 1.8% 1.7% 1.6% Curriculum/Instruct. Staff Development 1.7% 1.7% 1.7% 1.0% 1.0% Instructional Leadership 1.2% 1.2% 1.2% 1.2% 1.2% School Leadership 6.0% 6.0% 5.8% 6.4% 6.4% Guidance & Counseling 3.0% 3.0% 3.0% 3.2% 3.2% Social Work Services 0.6% 0.6% 0.7% 0.3% 0.3% Health Services 1.6% 1.6% 1.7% 1.2% 1.2% Student Transportation 4.2% 4.4% 4.2% 3.8% 3.9% Food Services 5.4% 5.7% 5.9% 5.9% 6.0% Extracurricular Activities 0.9% 0.9% 0.9% 1.2% 1.2% General Administration 1.5% 1.5% 1.5% 2.0% 2.0% Facilities Maintenance & Operations 9.5% 9.0% 9.1% 8.2% 8.2% Security & Monitoring Services 0.7% 0.8% 0.8% 0.9% 0.8% Data Processing Services 0.8% 0.8% 0.8% 0.9% 0.9% Community Services 0.9% 0.8% 0.8% 0.6% 0.7% Facilities Acquisition & Construction 0.5% 0.5% 0.5% 0.1% 0.1% Total 100.0% 100.0% 100.0% 100.0% 100.0% North East ISD Budget

205 Years of Experience** Bachelor's Degree* Teacher Salary Schedule 0 $46,440 NOTES: 1 $46,940 The above salary schedule represents a 10-month work schedule. 2 $47,393 3 $47,890 *The following stipend(s) are added to the annual salary if a 4 $48,340 degree is earned from an accredited college or university 5 $48,790 recognized by the U.S. Department of Education. 6 $49,240 7 $49,690 Master's Degree = $1,800 annually 8 $50, Hours above a Master's Degree = $300 annually 9 $50,590 Doctorate Degree = $1,500 annually 10 $51, $51,490 **Years of service are determined based on the Commission's 12 $51,940 Rules for Creditable Experience. 13 $52, $52, $53, $53, $54, $54, $55, $55, $56, $56, $57, $57, $58, $59, $59, $60, $60, $61, $62, $62, $63, $63, $64,440 Max New-to- District placement North East ISD Budget

206 Salary Schedules for Professional Staff Daily Rates Administrative/Instruction Pay Grade Minimum Midpoint Maximum A1 $ $ $ A2 $ $ $ A3 $ $ $ A4 $ $ $ A5 $ $ $ A6 $ $ $ A7 $ $ $ A8 $ $ $ A9 $ $ $ Exempt - Salaried Pay Grade Minimum Midpoint Maximum E1 $ $ $ E2 $ $ $ E3 $ $ $ E4 $ $ $ E5 $ $ $ E6 $ $ $ E7 $ $ $ E8 $ $ $ E9 $ $ $ Police Pay Grade Minimum Midpoint Maximum P6 $ $ $ P7 $ $ $ Technology Support Pay Grade Minimum Midpoint Maximum T3 $ $ $ T4 $ $ $ T5 $ $ $ T6 $ $ $ T7 $ $ $ T8 $ $ $ T9 $ $ $ T10 $ $ $ North East ISD Budget

207 Salary Scales for Auxiliary Staff Hourly Rates Administrative Support Police Pay Grade Minimum Midpoint Maximum Pay Grade Minimum Midpoint Maximum C1 $ 9.68 $ $ P1 $ $ $ C2 $ $ $ P2 $ $ $ C3 $ $ $ P3 $ $ $ C4 $ $ $ P4 $ $ $ C5 $ $ $ P5 $ $ $ C6 $ $ $ C7 $ $ $ Technology Support C8 $ $ $ Pay Grade Minimum Midpoint Maximum C9 $ $ $ T1 $ $ $ C10 $ $ $ T2 $ $ $ T3 $ $ $ Instructional Support Pay Grade Minimum Midpoint Maximum I1 $ 9.74 $ $ I2 $ $ $ I3 $ $ $ I4 $ $ $ I5 $ $ $ I6 $ $ $ I7 $ $ $ Operations Pay Grade Minimum Midpoint Maximum O1 $ 9.29 $ $ O2 $ $ $ O3 $ $ $ O4 $ $ $ O5 $ $ $ O6 $ $ $ O7 $ $ $ O8 $ $ $ O9 $ $ $ North East ISD Budget

208 General Fund Compensation Expenditures by Function Near Adopted Function Actual Final Budget 11 Instruction $ 287,442,731 $ 293,334,809 $ 298,240, Instructional Resources & Media Services 7,206,643 7,444,170 7,163, Curriculum & Instructional Staff Development 7,169,666 7,364,667 8,107, Instructional Leadership 5,790,058 5,654,799 5,572, School Leadership 29,479,719 30,197,164 29,052, Guidance & Counseling 17,132,207 17,000,296 16,582, Social Work Services 2,259,386 2,456,540 2,460, Health Services 6,468,898 6,484,818 6,443, Student Transportation 12,806,351 13,400,088 12,180, Food Services Extracurricular Activities 6,272,179 6,390,768 6,146, General Administration 8,039,538 8,138,871 7,693, Facilities Maintenance & Operations 27,315,520 28,282,331 28,787, Security & Monitoring Services 70,192 78,726 38, Data Processing Services Community Services 235, , , Facilities Acquisition & Construction Total General Fund Payroll Expenditures $ 417,688,921 $ 426,443,586 $ 428,722,830 Less: TRS on-behalf payments (21,851,126) (23,174,328) (22,907,827) Payroll related expenditures - District share $ 395,837,795 $ 403,269,258 $ 405,815,003 North East ISD Budget

209 General Fund Compensation Expenditures by Object Near Adopted Object Actual Final Budget 6111 Substitute for Teachers/Other Professionals $ 583,396 $ 627,104 $ 503, Substitute Teachers 3,183,073 3,413,784 3,200, Retention Supplement Pay - Certified 7,454,626 6,955,749 5,091, Substitute for Other Professionals 115, , , Extra Duty Pay for Teachers/Other Professionals 2,751,136 2,765,614 5,779, Salaries & Wages Teachers/Professionals 279,149, ,948, ,931, Overtime Pay - Support Personnel 1,306,038 1,286,910 1,289, Substitutes for Support Staff 3,633 4,801 13, Retention Supplement Pay - Classified 1,597,593 1,644,640 1,046, Substitutes for Paraprofessionals & Auxiliary Staff 518, , , Salaries for Paraprofessionals 26,762,501 26,464,094 25,246, Temporary Paraprofessionals & Auxiliary Staff 422, , , Extra Duty Pay for Support Personnel 531, , , Extracurricular Activities 27,219,757 28,400,885 27,882, TRS Health Care Supplement - NEISD Contribution 2,064,784 1,924,743 2,070, TRS Care-NEISD Contrib. (Monthly) Employee Communication Allowance 7,800 7, Employee Allowance for Travel 232, , , Medicare 4,901,402 5,074,636 5,034, Group Health & Life Insurance 26,212,077 26,370,415 26,512, Workers' Compensation - 883,727 1,347, TRS On-Behalf 21,851,126 23,174,328 22,907, Unemployment Compensation 97,906 98, , Teacher Retirement-Statutory Minimum 7,116,646 6,909,962 7,531, Incentive Pay Transportation 3,266, , , Other Employee Benefits 337, , ,000 Total General Fund Payroll Expenditures $ 417,688,921 $ 426,443,586 $ 428,722,830 Less: TRS on-behalf payments (21,851,126) (23,174,328) (22,907,827) Payroll related expenditures - District share $ 395,837,795 $ 403,269,258 $ 405,815,003 North East ISD Budget

210 Investment Summary As required by North East ISD s investment policies, the District s investment officers are required to prepare annually a comprehensive report on the investment program and investment activity to the Board of Trustees. This report is required to include North East ISD s portfolio performance and recommendations of policies, strategies and improvements necessary to enhance the investment program. Finally, this report is required to include an investment plan for the ensuing year. Review of Activities During fiscal year North East ISD s general operating fund received approximately $452.7 million in local, state, and federal cash receipts. These funds were actively managed throughout the year and invested in pools, agency bonds and discount notes, and highly rated commercial paper. The weighted average maturity of the General Fund as of June 30, 2010 was 70 days. The yield earned by this fund over the fiscal year was.50%. As of June 30, 2010, $356,753,492 was invested as part of North East ISD s portfolio. The yield earned for the District s portfolio, non-inclusive of the capital projects funds was.43%, while the investment pools earned an average rate of.26% during the fiscal year. A comprehensive benchmark analysis of North East ISD s portfolio is included under separate cover in the supplement to this Budget Book. During February 1999, North East ISD received the proceeds from the $211 million bond sale. One-third of the proceeds were placed in a flexible repurchase agreement, which allowed for fixed yield and daily liquidity. The brokerage firm of Salomon Smith Barney managed another one-third and North East ISD staff managed the funds that were part of the final one-third. As of June 30, 2010, projects were closed and all funds were depleted. During August 2000, North East ISD received the proceeds from the $155 million bond sale. The proceeds were invested in pools and in flexible repurchase agreements with Societe Generale and Salomon Smith Barney. The re-purchase agreements allowed for a fixed yield with daily liquidity. As of June 30, 2010, projects were closed and all funds were depleted. During February 2004, North East ISD received the proceeds from the $300 million bond sale. The proceeds were invested in pools, agency bonds and discount notes, commercial paper, and municipal bonds. The fixed income securities were purchased with maturity dates to match the expected draw down schedule of the funds. As of June 30, 2010, $1.7 million was in the investment pools. During August 2005, North East ISD received the proceeds from the $149 million bond sale. The proceeds were invested in pools, agency bonds and discount notes, and commercial paper. The fixed income securities were purchased with maturity dates to ensure availability of funds when payments are due as well as to maximize investment earnings. As of June 30, 2010, $632 thousand was in the investment pools. During July 2007, North East ISD received the proceeds from the $498 million bond sale. The proceeds were invested in pools, agency bonds and discount notes, and commercial paper. The fixed income securities were purchased with maturity dates to match the expected draw down schedule of the funds. As of June 30, 2010, $4.9 million was in investment pools and $170.9 million was in fixed income securities. Investment Controls Many investment controls are in place to ensure the safety of North East ISD s investments. The Board has adopted policies and strategies that comply with the Public Funds Investment Act and also provides management the flexibility needed to make day-to-day investment decisions. North East ISD also has cash management and investment management procedures documented for the use and training of North East ISD staff. These procedures are continually updated to account for changes in technology and processes. Contracts are in place between North East ISD and its depository bank and safekeeping bank. Certifications are executed with each change in investment policies with the entities North East ISD uses to in- North East ISD Budget

211 vest securities -- such as the pools and brokers/dealers. North East ISD keeps its investments at a third-party safekeeping bank. All trades settle on a DVP (delivery versus payment) basis which ensures that no funds leave the District s possession until a security is placed in the District s safekeeping account. Cash flow analyses are conducted to ensure funds are available when needed. The Office of Budgets & Financial Analysis receives and files original confirmations and receipts from each investment purchase and wire transaction. The Office of Budgets & Financial Analysis and the Accounting Services Office also ensure that clear separation of duties is provided for investment and cash management functions. Competitive bidding is always utilized, and usually bids from three to five brokers/dealers are received before a purchasing decision is made. Monthly investment reports are prepared by the District s investment officers and provided to the Board of Trustees on a timely basis. Investment Policies The policies attached in Appendix A continue to be the recommended investment policies for North East ISD. The investment policies comply with the Public Funds Investment Act (PFIA). Per the PFIA, the North East ISD Investment Policy emphasizes safety of principal, liquidity and addresses investment diversification, yield, and maturity and the quality and capability of investment management. Additionally, as required per the PFIA, the policies include: 1. A list of the types of authorized investments in which the District s funds may be invested; 2. The maximum allowable stated maturity of any individual investment owned by the District; 3. For pooled fund groups, the maximum dollarweighted average maturity allowed based on the stated maturity date of the portfolio; 4. Methods to monitor the market price of investments acquired with public funds; and 5. A requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis. During 2010, the Government Treasurers Organization of Texas (GTOT) awarded the Investment Policy Certification to North East ISD. The District received this award for developing comprehensive written investment policies that meet the criteria set forth in GTOT s Investment Policy Review Checklist. Investment Strategies Each fund has a general strategy outlined within the investment policies of the District. The primary objectives of the District s operating funds are safety, liquidity, and maturity sufficient to meet anticipated cash flow requirements. The investment officers of the District will utilize a weekly cash budget to anticipate the cash flow requirements during the year for the general operating fund. The cash budget enables the investment officers of the District to develop strategies based on interest rate forecasts to earn a higher yield than if the anticipated cash flows were not forecasted. Reasonable market yields will be earned by purchasing quality securities. All securities will be purchased with the intent to hold to maturity. The agency and debt service funds also have safety, liquidity, and maturity sufficient to meet anticipated cash flow requirements as their primary objectives. The debt service funds have limited cash outflows annually and the dates and amounts are known; therefore, investments of these funds are more easily matched to the actual cash outflow requirements. Diversification can be met through the use of an authorized investment pool. All securities will be purchased with the intent to hold to maturity. Investment strategies for capital projects fund portfolios primary objective is the assurance that anticipated cash flows are matched with adequate investment liquidity for the safety of the fund and the completion of the targeted projects. A diversified portfolio structured with maturities to match anticipated cash flow is used to provide a reasonable market yield. Maturities may extend beyond one year. Market Strategy The main goal of North East ISD s investment program is to ensure its safety, as well as to obtain a reasonable financial return under current market conditions, in accordance with policies. The investment officers observe financial market indicators, study North East ISD Budget

212 financial trends, and utilize available educational tools in order to maintain appropriate investment strategies. Investments are purchased with the expectation of holding to maturity, thereby ensuring the preservation of capital. Enhancements and Recommended Improvements The recommendation for the fiscal year is to continue to maintain an active management philosophy for the District s funds. Interest earnings can be gained by actively managing the portfolio. Evaluating and modifying cash flow forecasts can improve the yield of a portfolio when current and anticipated market conditions are taken into account. In an inverted yield curve environment, the investment officers will have to evaluate the value of marketable securities over investment pools that may be currently earning higher rates but have non-guaranteed yields, that over time, could fall below what could be earned in fixed income securities. The treasury staff is continuing to work with other offices in the Finance Department to implement processes and procedures that, when implemented, will improve cash flow positions and payment terms. Ultimately, these projects should increase efficiency and aid investment performance. Investment Plan for The investment plan for fiscal year is a continuation of the plan and includes the monitoring of market information, interest rates, forecasted and actual cash flows, and managing every fund in the portfolio on an individual, consistent, and frequent basis. Investment Officers must evaluate the market on an ongoing basis to determine where the District s funds are best utilized in the existing market. Monitoring changes in the District s cash flow forecast will also be important in the coming year. The effective and efficient management of the portfolio can ensure a reasonable yield on the portfolio without exposing the District to unacceptable levels of risk. North East ISD Budget

213 August 2010 S M T W T F S September 2010 S M T W T F S October 2010 S M T W T F S [ ] 23 North East ISD Traditional School Calendar November 2010 S M T W T F S December 2010 S M T W T F S [ January 2011 S M T W T F S ] 15 Grading Periods August 23 - October days October 25 - January days 1 st Semester 88 days January 18 - March days March 28 - June 2 46 days 2 nd Semester 89 days February 2011 S M T W T F S March 2011 S M T W T F S [ April 2011 S M T W T F S 1 2 Total 177 days The Student Assessment Testing Calendar may be accessed via under Calendars Teacher/Student Holidays May 2011 S M T W T F S * 23 * 24 * 25] [ June 2011 S M T W T F S 1 2] July 2011 S M T W T F S 1 2 September November December January 17 March April 15, 22 May 30 July 4 Holidays for Students and Employees Teacher Staff Development/Teacher Preparation Days (student holiday) Regularly scheduled meeting of NEISD Board of Trustees Severe weather makeup days Staff Development/ Teacher Preparation Days/ (Student Holidays) August New Teacher Orientation August October 11 November Teacher Choice Days February 21 June 3 [ ] * First/Last Day of Classes; First/Last Day of Semester New Teacher Orientation Beginning and Ending of Grading Period Early Dismissal for Conferencing in the Fall for Elementary and Middle Schools Early Dismissal for Conferencing in the Spring for Elementary Schools only Graduation Dates Churchill MacArthur June 4, :30 June 2, :30 ISA Madison June 9, :00 June 6, Trinity University Reagan Johnson June 8, :30 June 3, :30 Roosevelt Lee June 7, :30 June 5, :30 Updated April 27, 2010 SHOULD EMERGENCY SITUATIONS OCCUR, SUCH AS SEVERE WEATHER, an announcement will be released from the Office of the Superintendent to local radio and television stations. If classes are canceled, makeup days may be held June 3 and February 21. If two inclement weather makeup days are needed, the teacher preparation day scheduled for June 3 will be held on June 4. If February 21 is used as an inclement weather day, it will also become the third Teacher Choice Day for affected staff. North East ISD Budget

214 Property Tax Rates, Levies And Collections Last Ten Fiscal Years Fical Year Ended June 30 Tax Rate Tax Levy for the Fiscal Year Current Tax Collections Percent of Levy Collected Collections in Subsequent Years Total Tax Collections Percent of Levy Collected 2001* ,192, ,254, % 3,600, ,854, % 2002* ,012, ,150, % 4,377, ,528, % 2003* ,419, ,897, % 5,528, ,426, % 2004* ,765, ,180, % 3,908, ,088, % 2005** ,197, ,712, % 3,782, ,494, % ,440, ,761, % 3,463, ,224, % ,417, ,471, % 12,249, ,720, % ,664, ,619, % 13,726, ,345, % ,731, ,364, % 13,992, ,356, % ,682, ,026, % - 369,026, % The percentage of current collections may be greater than 100% in 2003 and 2004 due to the original levy being certified at a lower level than in past years. Various protests and adjustments which continued past year end continued to affect the assessed valuation and collections. Source: Bexar County Tax Assessor/Collector NEISD Financial Statements * 12 month period ending August 31 ** 10 month period ending June 30, 2005 North East ISD Budget

215 Assessed Value Of Taxable Property Last Ten Fiscal Years Percent Real Property to Total Assessed Percent Personal Property to Total Assessed Tax Year Total Assessed and Estimated Valuation Assessed Real Property Value Assessed Personal Property ,942,099,064 11,235,948, % 1,706,150, % ,241,456,961 12,438,194, % 1,803,262, % ,726,892,290 12,929,064, % 1,797,827, % ,380,578,209 14,474,411, % 1,906,166, % ,146,853,177 16,035,178, % 2,111,674, % ,610,719,844 17,394,346, % 2,216,373, % ,078,454,442 19,905,740, % 2,172,714, % ,078,473,057 23,028,003, % 2,050,469, % ,635,646,028 25,750,815, % 1,884,830, % ,726,595,519 26,055,087, % 1,671,508, % North East ISD Budget

216 Community Demographics Population, Income, & Wealth Per Capita Income Per Capita Property Wealth Population NEISD State NEISD State ,038 $31,239 $33,185 $53,576 $54, ,684 $32,952 $35,272 $60,047 $58, ,592 $34,368 $36,838 $66,771 $63, ,404 $34,937 $37,809 $69,019 $69, ,720 $34,500 $36,484 $70,143 $68,530 Unemployment & Education Adults with Education Beyond Unemployment High School NEISD State NEISD State % 5.4% 67.3% 51.1% % 5.9% 66.6% 50.2% % 4.1% 44% 4.4% 66.5% 51.1% 1% % 4.9% 67.1% 53.4% % 7.6% 66.4% 53.7% Employers Largest San Antonio Employers Employees Lackland Air Force Base 34,380 Fort Sam Houston 25,391 H.E.B. Food Stores 14,588 U.S.A.A 14,589 City of San Antonio 13,862 Northside ISD 12,597 Randolph Air Force Base 11,790 North East ISD 8,900 Methodist Health Care System 7,800 San Antonio ISD 7,616 North East ISD Budget

217 Teacher Demographics Highest Degree Held by Teachers NEISD State No Degree 0.1% 0.8% Bachelors 68.0% 77.7% Masters 31.5% 20.9% Doctorate 0.3% 0.5% No Degree 31.5% NEISD 0.3% 0.1% 20.9% State 0.5% 0.8% Bachelors Masters Doctorate 68.0% 77.7% Teachers' Years of Experience NEISD State Beginning 3.4% 7.3% 1-5 Years 27.3% 30.5% 610Y 6-10 Years 23.8% 20.0% 0% Years 29.0% 23.7% > 20 Years 16.5% 18.6% Beginning 1-5 Years 16.5% NEISD 3.4% 27.3% 18.6% State 7.3% 30.5% 6-10 Years Years 29.0% 23.7% > 20 Years 23.8% 20.0% Teacher Averages NEISD State Average Years Experience Average Years Experience in District North East ISD Budget

218 Student Demographics Students by Ethnicity NEISD State Asian/Pacific Islander 5.9% 3.7% Black/African-American 7.3% 14.0% Hispanic/Latino 53.5% 48.6% White 32.8% 33.3% All Others 0.5% 0.4% Asian/Pacific Islander Black/African-American 32.8% NEISD 0.5% 5.9% 7.3% 33.3% State 0.4% 3.7% 14.0% Hispanic/Latino White All Others 53.5% 48.6% Students by Population NEISD State Economically Disadvantaged 42.7% 58.9% Limited English Proficiency 8.3% 16.9% Gifted and Talented 7.0% 7.6% Special Education 10.2% 9.2% Career & Technical 20.4% 21.2% Title I 41.1% 64.5% 2009 High School Graduates by Program NEISD State Distinguished 8.3% 11.0% Recommended 76.7% 70.6% Minimum 15.0% 17.5% 15.0% NEISD 8.3% 17.5% State 11.0% Distinguished Recommended Minimum 76.7% 70.6% North East ISD Budget