Guilford County Schools Budget for

Transcription

1 Guilford County Schools Budget for Board of Education Retreat October 2, 2010 Presented by Sharon Ozment, CFO

2 BUDGET DEVELOPMENT PHILOSOPHY Use Board of Education s Mission, Core Values and Strategic Plan Achieving Education Excellence to guide budget development process Reflect current and projected economic conditions Use Governor s Proposed Budget as a baseline for state funding 2

3 BUDGET DEVELOPMENT PHILOSOPHY Honor request from County Commissioners to submit budget that reflects flat or hold-the-line local funding (a no increase budget) Fund strategic plan initiatives through budget reductions, redirections or by seeking outside funding Fund other sustaining operations cost increases through budget reductions or redirections Provide flexibility to incorporate federal stimulus funds when those funds and the guidelines regarding their use are available to GCS Limit impact of budget reductions on existing personnel 3

4 BUDGET DEVELOPMENT PHILOSOPHY Board Mission Guilford County students will graduate as responsible citizens prepared to succeed in higher education, or in the career of their choice. Board Core Values Diversity Empathy Equality Innovativeness Integrity 4

5 BUDGET DEVELOPMENT PHILOSOPHY Strategic Plan Major themes: Academic excellence Character development Excellence Eight areas: Improving academic achievement Supportive parent and community involvement Strategic human resource management Respectful and responsive service Safe schools and character development Optimal operations Transformational technology Clear baseline and equitable standards 5

6 BUDGET DEVELOPMENT PHILOSOPHY Strategic Plan SMART (Specific, Measureable, Attainable, Results-Oriented, Time-Based) goals developed for each of the eight areas Implementation strategies developed for the goals Plan launched in January 2009 Plan endorsed by Board of Education in March

7 STRATEGIC PLAN INITIATIVES Strategic plan initiatives with major budgetary implications: Reorganization of Academic Services/Regionalization Balanced Literacy and DIBELS (Dynamic Indicators of Basic Early Literacy Skills) Elementary Math Textbook Adoption Character Education Teacher Recruitment Respectful and Responsive Service Volunteer Screening Energy Management Business Improvement Plans Developing Baseline Standards 7

8 STUDENT ENROLLMENT ADM (Average Daily Membership) = 71,079 (per NC Department of Public Instruction State Planning Allotment ) Projected ADM numbers were impacted by a change in the NC kindergarten cut-off age/date (NCGS 115C-364) Date by which child must have reached age 5 Up through , date was October 16th Effective , date is August 31st Approximately 15,000 children impacted by change 8

9 REGIONALIZATION/REORGANIZATION WHAT DID IT COST? + PERSONNEL (Regionalization) $3.3M (includes +39 positions) + PERSONNEL (Reorganization) $0.5M (includes positions) + NON-PERSONNEL (Regionalization) $0.4M Subtotal HOW DID WE FUND IT? - PERSONNEL (Regionalization/Reorganization) ($5.2M) (includes -63 positions) - NON-PERSONNEL (Regionalization) ($0.1M) Subtotal $4.2M ($5.3M) NET SAVINGS ($1.1M) 9

10 MAJOR BUDGET IMPACTS TO SCHOOLS PERSONNEL 90 positions Media Assistants (-64 positions) ESOL (-7.5 positions) (English for Speakers of Other Languages) HS Testing Coordinators (-7.5 positions) Instructional Technology Facilitators (-11 positions) ($3.2M) WSF (Weighted Student Formula) dollars Initially allocated 50% of $11.5M in discretionary funds Usually allocate 75% initially and adjust based on 20-day student numbers BOE restored WSF dollars to 100% on 8/11/09 Budget included $1.1M to restore WSF if actual budget reductions < anticipated reductions + $1.1M for a maximum of 20 additional teachers for 10 th /20 th day adjustments $2.2M 10

11 BUDGET REDUCTIONS/REDIRECTIONS = $21.9M Improving Student Accountability $ (2,349,689) Literacy Coaches (GCS allotted 7 positions in PRC 052 in ) $ (421,204) Non-Instructional Support Personnel (@ 2.5% reduction) $ (1,033,049) Transportation (approximately 3.9% reduction) $ (870,357) Limited English Proficiency $ (107,185) Mentors $ (109,167) School Technology $ (466,474) Textbooks $ (2,522,731) Textbooks - Freight $ (10,570) Staff Development (@ 100% reduction) $ (420,674) Staff Development - Finance Officers $ (250) LEA Discretionary/Flexibility Reduction (Negative Reserve) $ (10,917,800) SUBTOTAL $ (19,229,149) Central Office Administration (@ +/- 18% reduction for LEAs with more than 30K in ADM) $ (587,304) Eliminating state funding of application fees for NBPTS $ (125,000) Children with Disabilities (headcount adjustment) $ (775,786) TOTAL $ (20,717,240) Cuts to offset losses in state funding $ 20,717,240 PLUS: Increase in employer's hosp ins rate ( = $4,157/FTE; = $4,527/FTE) $ 569,329 PLUS: Increase in employer's retirement rate ( = 8.14%; = 8.75%) $ 584,727 $ 21,871,296 11

12 BUDGET REDUCTIONS/REDIRECTIONS SUMMARY OF BUDGET REDUCTIONS/REDIRECTIONS Schools $ 11,837,702 Administrative Support Services 10,033,594 Total $ 21,871,296 Schools 54% Administrative Support Services 46% 12

13 BUDGET Budget Resolution = $642,017,714 Funding sources: State ($357.5M) Local ($192.6M) Federal ($49.9M) Capital Outlay ($4.0M) Enterprise Funds Child Nutrition ($30.7M) ACES (After School Care Enrichment Services) ($7.4M) 13

14 BUDGET Operating Budget = $599,970,699 Funding sources: State ($357.5M) Local ($192.6M) Federal ($49.9M) Excluded projected economic stimulus package dollars: $17,030,000 in additional Title I funds $15,859,000 in additional IDEA dollars (IDEA = Individuals with Disabilities Education Act) $466,475 in Education Technology Program funds 14

15 BUDGET State 60.59% Local 32.09% Federal 8.31% 15

16 BUDGET Salaries 64.46% Transfers to Charter Schools 0.48% Supplies & Materials 6.93% Purchased Services 12.29% Employee Benefits 15.84% 16

17 BUDGET Schools 80% Administrative Support Services 20% 17

18 ECONOMIC STIMULUS PACKAGE ARRA (American Recovery and Reinvestment Act) Funds: State Fiscal Stabilization Funds = $18.5M Fund school-based custodians, treasurers, NC WISE data managers, office support (guidance/attendance/registrar) positions Title I = $7.8M Title I School Improvement = $315.8K Fund positions in Title I schools (schools most impacted by poverty as measured by % of students receiving free or reduced priced meals) IDEA VI-B = $7.9M IDEA Pre-School = $$309.6K Fund positions serving children with special needs Education Technology = $376.1K Improve student academic achievement through use of technology in schools; assist students in becoming technologically literate by end of eighth grade 18

19 ENTERPRISE FUNDS Child Nutrition Fund Actions implemented to generate sufficient revenues to cover expenses including assessment of indirect cost: Reduce menu/food choices (i.e., offer two versus four entrees; use 25% less whole grain products) Reduce or eliminate breaks in serving time schedules Reduce number of serving lines where appropriate/possible (determine number of lines based on participation) Defer computer equipment replacement at elementary schools Limit computer equipment replacement at middle/high schools Allow replacement only of small wares (i.e., serving utensils, food thermometers, pans) 19

20 ENTERPRISE FUNDS Child Nutrition Fund Purchase uniforms for new employees only (i.e., postpone purchasing additional set of uniforms for existing employees) Reduce number of van rentals (schedule meal delivery for early/middle colleges and academies based on existing Child Nutrition schedules for traditional/satellite sites) Discontinue printing/distributing menus (menus will be available on-line or in newspapers) Increase in school-lunch prices by $0.50 at ES and by $0.30 at MS/HS ES = $ $0.50 = $2.30 MS = $ $0.30 = $2.40 HS = $ $0.30 = $

21 ENTERPRISE FUNDS ACES (After School Care Enrichment Services) Fund Cost saving and revenue enhancement initiatives implemented in include: consolidate programs with low enrollment at cluster sites eliminate positions establish an enrollment fee ($15 per student) establish an ACES All-Day activity fee ($8 per child per All-Day) increase weekly tuition fee from $40 to $46 21

22 BUDGET DEVELOPMENT PHILOSOPHY Use Board of Education s Mission, Core Values and Strategic Plan Achieving Education Excellence to guide budget development process Use State Superintendent Dr. June Atkinson s March 1, 2010 information highlighting the state s current revenue collections and budget cuts for and as a baseline for state funding Total FY State Cuts in State adopted budget for ($29.790M) Additional FY State +3% ($10.394M) Additional FY State +4% ($13.858M) Reflect current and projected economic conditions and plan for various potential funding scenarios 22

23 BUDGET DEVELOPMENT PHILOSOPHY Fund strategic plan initiatives and magnet revisioning through budget reductions, redirections or by seeking outside funding ($892K) Limit request for additional funds from County Commissioners to sustaining operations cost increases not covered by other significant reductions or redirections ($3.423M = 1.95% increase) Retirement rate increase (8.75% to 10.51% = $1.535M) Hospitalization insurance rate increase ($4,527/FTE to $4,929/FTE = $682K) Growth in student enrollment (+301 students = $721K) District software licensing fees ($165K) Increase in IB membership/dues/exam fees ($42K) Increase in Section 504 nursing costs ($110K) Start-up costs for Jamestown MS and Haynes-Inman Educ Ctr ($162K) Increase in property insurance for additional square footage ($6,500) 23

24 BUDGET DEVELOPMENT PHILOSOPHY Request $7M from County Commissioners for capital outlay Include federal stimulus funds available to GCS State Fiscal Stabilization Funds ($18.086M) Title I funds ($7.815M) IDEA (Individuals with Disabilities Education Act) funds ($5.823M) Limit impact of budget reductions on the employment of existing personnel 24

25 BUDGET DEVELOPMENT PHILOSOPHY Strategic Plan 21 strategies scheduled for implementation during Strategic plan strategies reprioritized due to economic situation GCS will proceed with strategies related to various areas including: Character Development One Million Books Advantage Model Middle School Parent University Now Guilford Parent Academy Parent Assistant Expansion of Positive Behavior Support Low Performing School Strategies Develop 10-Year Enrollment Projections and Capacity Needs Develop Baseline Standards for Facilities GCS will also proceed with magnet revisioning 25

26 BUDGET Total Budget = $651,945,431 Funding sources: State ($342.6M) Local ($186.4M) Federal ($82.2M) Capital Outlay ($3.2M) Enterprise Funds Child Nutrition ($30.9M) ACES (After School Care Enrichment Services) ($6.6M) 26

27 BUDGET Operating Budget Revenues/Sources Where The Money Comes From State $ 342,643,112 Local 186,348,911 Federal 82,245,397 Total $ 611,237,420 State 56.1% 13.4% Local 30.5% 27

28 BUDGET Employee Benefits 18.1% Salaries 65.0% Reserve for Operational Expenses 0.6% Supplies & Materials 4.1% Transfers to Charter Schools 0.7% Purchased Services 11.5% 28

29 BUDGET Schools 77.7% Administrative Support Services 22.3% 29

30 FEDERAL FUNDS ARRA (American Recovery and Reinvestment Act) Funds: State Fiscal Stabilization Funds = $20.7M Fund school-based custodians, treasurers, NC WISE data managers, office support (guidance/attendance/registrar) positions Title I Funds = $9.6M Fund positions in Title I schools (schools most impacted by poverty as measured by % of students receiving free or reduced priced meals) VI-B Funds = $5.8M Fund positions serving children with special needs Education Technology = $38,126 School Improvement Grant (SIG) = $2,864,207 Fund turnaround Oak Hill ES 30

31 FEDERAL FUNDS Education Jobs Fund (EduJobs) = $14.2M (estimate) Funds must be expended by September 2012 TBD when/how GCS funds will be spent Race to the Top (RTTT) Funds Competitive federal grant funds earmarked to pay for large-scale education improvement efforts that focus on bolstering academic standards, teacher quality, data systems, and low-performing schools National total = $4.35 billion $350 million carved out for separate summative assessment fund NC to receive approximately $400 million 50% of the grant award amount to be retained by NCDPI 50% of the grant award amount to be allocated to participating LEAs via the Title I formula Funding spread over four year timeframe ( through ) 31

32 BUDGET REDUCTIONS/REDIRECTIONS = $17.7M (in addition to reductions/redirections) Losses in State funding = $10.415M -$9.073M LEVEL A state funding reductions +$1.662M driver training funds reinstated in final budget -$3.004M LEVEL B state funding reductions Increase in employer s hosp ins rate = $1.535M = $4,527/FTE; = $4,929/FTE Increase in employer s retirement rate = $682K = 8.75%; = 10.51% Strategic plan implementation/magnet revisioning = $892K Increase in sustaining operations costs = $475K Possible add l 1% state reduction in January 2011 = $3.678M 32

33 BUDGET LEVEL A LEVEL A STATE BUDGET REDUCTIONS/REDIRECTIONS: (covers identified State Budget Cuts & certain Strategic Plan Initiatives) FY State Cuts Additional FY State Cuts SUBTOTAL FY Strategic Plan implementation costs Magnet revisioning costs (if GCS does not receive MSAP grant) SUBTOTAL GCS reductions/redirections to address FY State Cuts SUBTOTAL LEVEL A FY Admin reductions/redirections SUBTOTAL One-time FY $ for Oak Ridge Elementary School Indoor Air Quality (IAQ) issues Additional Dental Insurance savings (implement 7/1 versus 10/1 in FY ) Driver Training funds not included in State FY budget (program eliminated) Decrease mileage reimbursement rate by 5 cents per mile (change from $0.50/mile to $0.45/mile) FY reserves for operational expenses TOTAL 33

34 BUDGET LEVEL B LEVEL B STATE BUDGET REDUCTIONS/REDIRECTIONS: (covers potential additional State Budget Cuts) GCS share of additional +4% or $285.3M reduction FY reserves for operational expenses Furlough/salary reduction (2 days) - for all GCS employees earning >= $25K/year LEVEL B Admin reductions/redirections % of WSF funds currently held in abeyance GCS reductions/redirections to address additional FY State Cuts Sustaining Operations (funds to be requested from BOCC) 34

35 LEVEL A - SUMMARY LEVEL 3A STATE REDUCTIONS/REDIRECTIONS: PERSONNEL - ADMIN: SALARY + FTE BENEFITS DIRECTORS+ (3.00) $ (306,391.21) INSTRUCTIONAL SUPPORT (10.15) $ (806,483.37) SPECIALISTS (3.00) $ (229,023.43) ADMINISTRATORS (4.50) $ (249,393.16) OFFICE SUPPORT (3.00) $ (141,681.53) FACILITIES/MAINTENANCE (2.00) $ (113,101.63) (25.65) $ (1,846,074.32) NON-PERSONNEL - ADMIN: OBJECT CODE PURCHASED SERVICES 300 $ (2,042,165.26) SUPPLIES AND MATERIALS 400 $ (1,155,724.02) CAPITAL OUTLAY (EQUIPMENT) 500 $ (331,701.37) CONSOLIDATION OF BUS STOPS $ (173,549.28) REDUCE HFA TRANSPORTATION $ (347,156.00) $ (4,050,295.93) LEVEL 3A STATE REDUCTIONS/REDIRECTIONS: PERSONNEL - ADMIN $ (1,846,074.32) NON-PERSONNEL - ADMIN $ (4,050,295.93) $ (5,896,370.25) 35

36 LEVEL B - SUMMARY LEVEL 3B STATE REDUCTIONS/REDIRECTIONS: PERSONNEL - ADMIN $ (2,609,586.80) NON-PERSONNEL - ADMIN $ (614,254.58) $ (3,223,841.38) 36

37 MAJOR BUDGET IMPACT TO SCHOOLS WSF (Weighted Student Formula) dollars Initially allocated 50% of $11.8M in discretionary funds Usually allocate 75% initially and adjust based on 20-day student numbers BOE approved allocating an additional 19% or $2.2M of the WSF on 8/10/10 The remaining 31% or $3.678M in WSF dollars to be held until impact of FMAP (Federal Medical Assistance Percentage) funds is known. ($3.678M) 37

38 Millions CAPITAL OUTLAY Annual GCS Capital Outlay Budget Fiscal Years thru $12 $10 $8 $6 $4 $2 $ $10,170,000 $11,514,935 $10,000,000 $7,000,000 $7,000,000 $7,000,000 $4,000,000 $3,200,000 Years 38

39 WHAT WE COULD BE FACING IN Potential State Revenue shortfalls 1% reduction = $3.678M 5% reduction = $18.39M 10% reduction = $36.78M 15% reduction = $55.17M Federal Stimulus Funding Cliff $36M in ARRA funds in GCS budget (excluding SIG funds) $36M = equivalent of approximately 720 $50K/teacher $14M in EduJobs = equivalent of approximately 280 $50K/tchr 39

40 POSSIBLE ACTIONS TO BE TAKEN IN Questions, Answers and Next Steps 40