GASTON COUNTY SCHOOLS

Transcription

1 GASTON COUNTY SCHOOLS GASTON COUNTY BOARD OF EDUCATION GASTONIA, NORTH CAROLINA W. Jeffrey Booker Superintendent 943 Osceola Street P.O. Box 1397 Gastonia, NC Phone (704) Fax (704) BUDGET REQUEST WE ARE Gaston County Schools

2 GASTON COUNTY BOARD OF EDUCATION GASTONIA, NORTH CAROLINA BUDGET REQUEST GASTON COUNTY BOARD OF EDUCATION CHAIRMAN KENNETH R. LUTZ, JR. VICE-CHAIRMAN JEFF RAMSEY DOT CHERRY KEVIN L. COLLIER LEE DEDMON DOT GUTHRIE CHRIS HOWELL CATHERINE ROBERTS MARK UPCHURCH SUPERINTENDENT W. JEFFREY BOOKER CHIEF FINANCIAL OFFICER GARY F. HOSKINS BUDGET ANALYST SUSAN H. BROOKS ASSISTANT FINANCE OFFICER JAMES A. BECKFORD WE ARE Gaston County Schools

3 GASTON COUNTY BOARD OF EDUCATION Kenny Lutz Chairman Crowders Mtn. Township W. Jeffrey Booker Superintendent Board of Education Jeff Ramsey Vice Chairman At-Large Member Dot Cherry At-Large Member Mission Through outstanding employees and community partners, Gaston County Schools provides innovative educational opportunities for all students in a safe and nurturing learning environment. Vision The vision of Gaston County Schools is to inspire success and a lifetime of learning. Beliefs Diversity Innovation Collaboration Excellence Safety Goals Every student will graduate prepared for postsecondary opportunities. Every member of our diverse student population has the opportunity for individualized instruction. Kevin Collier Riverbend Township Lee Dedmon Gastonia Township Dot Guthrie Gastonia Township Every employee is capable and committed to the education of the whole child. Every school has up-to-date technology to support teaching and learning. Every student has the opportunity to learn in a safe school environment. Gaston County Schools 943 Osceola Street P.O. Box 1397 Gastonia, North Carolina Chris Howell South Point Township Catherine Roberts Dallas Township Mark Upchurch Cherryville Township Phone: Fax: GCS 21 Education Station WE ARE Gaston County Schools

4 TABLE OF CONTENTS TABLE OF CONTENTS October 25, 2010 W. Jeffrey Booker Superintendent 943 Osceola Street P.O. Box 1397 Gastonia, NC Phone (704) Fax (704) A. OVERVIEW Superintendent and Board Chairman's Budget Letter Budgetary Process Narrative Budget Calendar FY Budgetary Process Flow Chart FY Budget Resolution FY State Planning Allotment ADM FY State Initial Allotment Formulas FY Average Daily Membership (ADM) Last Ten Fiscal Years General and Special Revenue Funds Revenue by Source Last Ten Fiscal Years Per Pupil Expenditures Five Year History A-1 A-4 A-5 A-6 A-7 A-14 A-15 A-17 A-18 A-19 B. BUDGET SUMMARY Budget Summary Narrative Financial Position Current Expense Revenue History and FY Funding Request Proposed Current Expenses and Funding Request FY B-1 B-2 B-3 C. OPERATING REQUEST Factors Impacting the FY Budget Costs Budgeted Revenues and Expenditures FY Narrative of Budget Requirements FY Funding Expansion Request FY C-1 C-2 C-3 C-8 D. CAPITAL OUTLAY Capital Outlay Narrative FY Capital Outlay Budget FY Building Age Graph Percent by Age as of 2016 D-1 D-2 D-3 WE ARE Gaston County Schools

5 AT A GLANCE FOR THE SCHOOL YEAR W. Jeffrey Booker Superintendent 943 Osceola Street P.O. Box 1397 Gastonia, NC Phone (704) Fax (704) NUMBER OF SCHOOLS Total Number of Schools Elementary Schools Intermediate Schools Middle Schools High Schools Special Needs School Alternate School ETHNIC DISTRIBUTION White % Black % Hispanic % Asian % Multiracial % American Indian % Hawaiian or Pacific Islander.. 0.1% TRANSPORTATION Total Number of Students Transported Daily ,000 Miles Traveled Daily ,000 Buses HIGH SCHOOL STUDENTS Graduates ,172 Graduates Continuing Their Education Post Secondary Education... 86% Four-Year College % Two-Year College % Vocational/Trade/Business. 5% Military % Employment % Other % ENROLLMENT Total Number of Students.. 31,421 Grades K ,339 Grades ,198 Grades ,868 Early College EMPLOYEES Total Number of Employees (Part and Full Time).. 3,848 Total Number of Teachers... 1,869 Average Years of Experience for Teachers PER PUPIL EXPENDITURES Instructional $5,993 Support $1,100 SCHOOL NUTRITION Breakfasts Served Daily ,000 Breakfasts Served Annually.. 1,600,000 Lunches Served Daily ,000 Lunches Served Annually... 3,900,000 ACADEMIC PERFORMANCE Met or Exceeded Growth % Gaston County Schools SAT Scores... 1,410 North Carolina SAT Scores ,478 National SAT Scores ,490 WE ARE Gaston County Schools

6 OVERVIEW WE ARE Gaston County Schools

7 May 6, 2016 To: Gaston County Board of Commissioners Gaston County Citizens The Gaston County Schools Budget Request for includes the local funds necessary to maintain essential instructional programs, ensure student safety, and provide the resources and personnel needed to operate at a level consistent with the policies of the State of North Carolina and the Gaston County Board of Education. The Budget Request also includes funds necessary to support the maintenance and capital replacement needs for our aging public school facilities. This budget was prepared in accordance with N.C.G.S. 115C-426. The vision of Gaston County Schools is to inspire success and a lifetime of learning. We are committed to providing full and equitable educational opportunities for all children in a safe and nurturing learning environment we believe this is what the citizens of Gaston County expect from the school system. As part of the budget process that began in December 2015, we considered what new initiatives should be funded and which ones should be expanded; which existing programs should be modified and/or eliminated; how to best realize cost savings opportunities; and how to prioritize our capital needs. We also surveyed a number of our stakeholders to gain a better understanding of the funding needs for our school system. These stakeholders included students, parents, teachers, principals, district administrators, and community/business leaders. The top issues among our stakeholders related to the need to improve the local supplement pay for teachers, increase salaries for classified employees, (bus drivers, cafeteria workers, etc.) and hire more school/classroom/support personnel. Our stakeholders also expressed a need to provide funding for remediation programs, literacy teachers, technology, professional development, and career and technical education. Our Budget Request includes approximately $7.5 million in additional funding to address many of the issues identified by our stakeholders and fulfill strategic priorities: Salary Adjustment: An increase in the local salary supplement for certified employees such as teachers, social workers, nurses, etc. and funds for an increase A-1

8 in salary for classified employees such as clerical staff, teacher assistants, custodians, bus drivers, cafeteria workers, maintenance personnel, etc.; Hawks Nest STEAM Academy: Funds for salaries, professional development, technology, and curriculum resources at the new elementary magnet school (K-5) scheduled to open in August 2016 on the current Hawks Nest Intermediate School campus; Literacy Teachers for Grades K-3: Funds for 29 additional literacy teachers for kindergarten through third grade and necessary literacy materials/technology; Teaching Positions: Funds to hire 22 middle school teachers to lower the existing student-to-teacher ratio and provide a better instructional experience for students; SMART Board Technology: Funds to replace out-of-date desktop computers for SMART Boards; Middle School Math Training: Funds to provide additional professional development (training) for middle school math teachers; Kindergarten Summer Camp: Funds to make a summer camp screening program available for incoming kindergarten students; Department of Exceptional Children Compliance: Funds to ensure the Department of Exceptional Children remains in compliance with state/federal regulations; Employer-Paid Benefits: Funds to pay for a projected state health insurance premium rate increase and increases in employee retirement benefits; and Imaging of Student Records: Funds to preserve student records in digital format as required by state guidelines. While it has been challenging to manage the district s operating budget in recent years, it has been more difficult to find adequate capital funding to maintain almost five million square feet of space. More than 50 percent of our buildings are at least 40 years old. For the past several years, we have received $1.2 million in annual capital funding. However, more capital funding is necessary to address the substantial maintenance needs of our aging facilities. As such, we are requesting that the county increase our annual capital maintenance budget to $5.2 million. This request would amount to approximately $1.00 per square foot. We appreciate the continued commitment from the County to provide funding from the 2007 school bond referendum for the construction of a new elementary school and middle school. We have awarded bids for the construction of both schools. These two new schools will replace four older facilities. The consolidation of these four aging schools into two new schools will help us to meet some of our critical facility needs. A-2

9 Despite the budget challenges we continue to face, our students and employees continue to make us proud. This past school year, Gaston County Schools earned regional, state, and/or national recognition in academics, athletics, fine arts, extracurricular activities, and other areas. The Class of 2015 earned more than $45 million in merit, athletic, military, and fine arts scholarships to attend the most prestigious colleges and universities in the country. The school district s graduation rate of 86.3 percent is the highest ever, and we continue to rank as the safest large school district in the state because of our ongoing efforts to enhance school security. The Gaston County Schools Budget Request for in the amount of $53.9 million contains the funding sufficient to maintain essential programs, operate safe schools on a daily basis, and provide resources and personnel to help us attain our vision: to inspire success and a lifetime of learning. We believe the leadership of our community County Commissioners, civic leaders, business owners, and others understand the importance of addressing the funding needs of Gaston County Schools. Most important, our citizens expect the school system to have sufficient local funds to provide full and equitable educational opportunities for all children in a safe and nurturing learning environment. As approved by the Gaston County Board of Education, we respectfully submit the Budget Request to the Gaston County Board of Commissioners for review, consideration and approval. Sincerely, W. Jeffrey Booker Kenneth R. Lutz, Jr. Superintendent Chairman, Gaston County Board of Education A-3

10 Gaston County Schools Budgetary Process Narrative The North Carolina School Budget and Fiscal Control Act requires that the Board's fiscal accounts be maintained on an encumbered budgetary basis. Encumbrances are commitments for goods which have not been received or for services which have not been rendered. Accordingly, the budget is prepared on the basis of legal requirements, not in accordance with Generally Accepted Accounting Principles (GAAP). The cost of public school education in North Carolina is financed primarily by the State, which establishes minimum programs. Local funds supplement the basic programs and are appropriated by the boards of local County Commissioners. Local boards of education have no tax levying or borrowing authority and are required to maintain accounting and budgetary records in a uniform State format. The budget was developed from information from the strategic plan and input from stakeholders. Following a review of the consolidated information, the Cabinet makes recommendations to the Superintendent. The Superintendent submits the result of the budget process to the Board of Education. After review of the Superintendent's Budget Request, the Board of Education submits the Board of Education Budget Request to the County by May 15, as required by the North Carolina School Budget and Fiscal Control Act. The County Commission reviews the budget as submitted by the Board of Education, determines the levels of funding, and adopts a budget appropriation for County funding by June 30. After the General Assembly adopts a budget, the Board of Education reviews the current information and adopts a final budget. A-4

11 Gaston County Schools Budget Calendar FY January 2016 Ongoing Ongoing January 11 February 2016 February Board Retreat Ongoing Discussion and input Principals, Fund Managers and Directors Budget discussions Superintendent, Cabinet and Finance Department direct budget discussions to formulate a budget request Board of Education receives Budget Calendar as information Board receives initial budget information, budget forecast and methodology Superintendent develops a budget request March 2016 March 7 March 21 Board of Education work session Budget public hearing to review and discuss funding needs Formal presentation of Superintendent s Budget Request to the Board of Education for review and discussion April 2016 April 11 Board of Education meeting and adoption of Budget Request May 2016 May 15 May/June Board of Education Budget Request delivered to County County Commissioners review Board of Education s Budget Request June 2016 June 20 Board of Education adopts Interim Budget County Commission adopts a budget ordinance notifies Board of Education of budget allocation Open North Carolina Budget signed into law Superintendent recommends such budget revisions as may be required by State and County budget allocations Board of Education adopts Budget Resolution Final budget compiled, typed, proofed and printed Budget Calendar may change depending upon the County s Budget Calendar A-5

12 Gaston County Schools Budgetary Process Flow Chart FY Consultation with Stakeholders Feedback Cabinet Principals and Other Stakeholders Recommendations January - March 2016 Superintendent Budget Request March Board of Education Budget Request April 2016 County Commission Gaston County Budget June 2016 Ideas Costs Ideas Costs Finance Department Finance Department Federal Government Board of Education North Carolina Budget signed into law State of North Carolina Federal Budget Adopted Budget State Budget A-6

13 Gaston County Board of Education Budget Resolution FY BE IT RESOLVED by the Board of Education of the Gaston County Schools Administrative Unit: Section 1 - The following amounts are hereby appropriated for the operation of the school administrative unit in the State Public School Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Instructional Services Regular Instructional Services $ 103,232,207 Special Population Services 17,106,965 Alternative Programs and Services 7,042,131 School Leadership Services 9,077,232 School-Based Support Services 12,506,436 System-Wide Support Services Support and Development Services 375,665 Special Population Support and Development Services 290,326 Alternative Programs and Services Support 60,625 Technology Support Services 187,492 Operational Support Services 10,901,423 Financial and Human Resources Services 995,579 Accountability Services 444,459 System-Wide Pupil Support Services 284,667 Policy, Leadership & Communication/Public Information Services 948,814 Ancillary Services Nutrition Services 220,439 Total State Public School Fund Appropriation $ 163,674,460 Section 2 - The following revenues are estimated to be available to the State Public School Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: State Public School Fund Allocation $ 163,674,460 A-7

14 Gaston County Board of Education Budget Resolution FY Section 3 - The following amounts are hereby appropriated for the operation of the school administrative unit in the Local General Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Instructional Services Regular Instructional Services $ 12,129,335 Special Population Services 1,203,156 Alternative Programs and Services 636,973 School Leadership Services 4,284,031 Co-Curricular Services 1,485,877 School-Based Support Services 1,206,002 System-Wide Support Services Support and Development Services 652,529 Special Population Support and Development Services 340,251 Alternative Programs and Services Support 197,550 Technology Support Services 4,406,510 Operational Support Services 14,767,979 Financial and Human Resources Services 1,925,028 Accountability Services 244,975 System-Wide Pupil Support Services 263,644 Policy, Leadership & Communication/Public Information Services 1,365,560 Ancillary Services Nutrition Services 6,304 Non-Programmed Charges Transfers to Charter Schools 2,300,000 Total Local General Fund Appropriation $ 47,415,704 Section 4 - The following revenues are estimated to be available to the Local General Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: County Appropriation $ 43,816,704 Local Revenues 750,000 Fund Balance Appropriated 2,849,000 Total Local General Fund Revenue $ 47,415,704 A-8

15 Gaston County Board of Education Budget Resolution FY Section 5 - The following amounts are hereby appropriated for the operation of the school administrative unit in the Federal Grants Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Instructional Programs Regular Instructional Services $ 415,095 Special Population Services 6,724,767 Alternative Programs and Services 9,243,775 School-Based Support Services 833,486 System-Wide Support Services Support and Development Services 800,786 Special Population Support and Development Services 758,234 Alternative Programs and Services Support 315,987 Technology Support 16,500 Financial and Human Resources Services 234,061 Non-Programmed Charges Payments to Other Governmental Units 791,939 Total Federal Grants Fund Appropriation $ 20,134,630 Section 6 - The following revenues are estimated to be available to the Federal Grants Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Total Federal Grants Fund Allocation $ 20,134,630 A-9

16 Gaston County Board of Education Budget Resolution FY Section 7 - The following amounts are hereby appropriated for the operation of the school administrative unit in the Capital Outlay Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Capital Outlay Operational Support Services $ 1,620,292 Debt Service 605,935 Capital Outlay 15,666,748 Total Capital Outlay $ 17,892,975 Section 8 - The following revenues are estimated to be available to the Capital Outlay Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Other Sources Bonds $ 5,956,171 Other 5,083,059 County Capital 6,837,765 State ADM 15,980 Total Capital Outlay Fund Revenue $ 17,892,975 A-10

17 Gaston County Board of Education Budget Resolution FY Section 9 - The following amounts are hereby appropriated for the operation of the school administrative unit in the Child Nutrition Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Ancillary Services Nutrition Services $ 16,379,500 Payments to Other Governmental Units 791,000 Total Child Nutrition Fund Appropriation $ 17,170,500 Section 10 - The following revenues are estimated to be available to the Child Nutrition Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Local and Other Revenues $ 4,745,500 Federal Allocation 12,425,000 Total Child Nutrition Fund Revenue $ 17,170,500 A-11

18 Gaston County Board of Education Budget Resolution FY Section 11 - The following amounts are hereby appropriated for the operation of the school administrative unit in the Other Special Revenue Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Instructional Services Regular Instructional Services $ 10,000 Special Population Services Alternative Programs and Services 4,393,699 Student Support Services 100,000 System-Wide Support Services Alternative Programs and Services Support 114,102 Financial and Human Resources Services 736,000 Total Other Special Revenue Fund Allocation $ 5,353,801 Section 12 - The following revenues are estimated to be available to the Other Special Revenue Fund for the fiscal year beginning July 1, 2015, and ending June 30, 2016: Total Other Special Revenue Fund Revenue $ 5,353,801 TOTAL ALL FUNDS $ 271,642,070 A-12

19 Gaston County Board of Education Budget Resolution FY Section 13 - All appropriations shall be paid firstly from revenues restricted as to use, and secondly from general unrestricted revenues. Section 14 - All unpaid encumbrances at June 30, 2015, are hereby reappropriated and are to be added to this approved budget. Section 15 - The Superintendent is hereby authorized to transfer appropriations within a fund under the following conditions: a. Proposed expenditures from State, Federal, or other sources of revenues may be amended upon receipt of information altering the anticipated revenues. A report of such budget amendments shall be made to the Board of Education on a monthly basis. b. Allocations may be transferred within a function without limitation. c. Transfers between functions may be made without limitation, with a report of such transfers made to the Board of Education. d. The Superintendent may not transfer any amounts between funds. e. The threshold for capitalizing fixed assets is $5,000 and al least a three-year useful life. Section 16 - Copies of the Budget Resolution shall be immediately furnished to the Superintendent and School Finance Officer for direction in carrying out their duties. Adopted this 5th day of October, 2015 Signed Kenneth R. Lutz, Jr. Chairman W. Jeffrey Booker Superintendent Seal A-13

20 Public Schools of North Carolina North Carolina Department of Public Instruction Average Daily Membership (ADM) Fiscal Year Enter LEA# 360 Gaston County PROJECTED KINDERGARTEN 2,485 GRADE 1 2,405 GRADE 2 2,485 GRADE 3 2,389 GRADE 4 2,436 GRADE 5 2,493 GRADE 6 2,323 GRADE 7 2,240 GRADE 8 2,360 GRADE 9 2,793 GRADE 10 2,604 GRADE 11 2,340 GRADE 12 2,312 TOTAL 31,665 North Carolina Department of Public Instruction Division of School Business Services School Allotments Section A-14

21 State Initial Allotment Formulas FY Administration Category Basis of Allotment (Funding Factors are rounding.) Central Office Administration Increased by LEA from FY Initial Allotment is -.34% Instructional Personnel and Support Services Category Basis of Allotment (Funding Factors are rounded.) Allotted Salary Classroom Teachers Grades Kindergarten 1 per 18 in ADM. Grades per 17 in ADM. Grades per 24 in ADM. Grades per 23 in ADM. Grade 9 1 per 26.5 in ADM. Grades per 29 in ADM. LEA Average Math/Science/Computer Teachers 1 per county or based on sub agreements. The number of classes is determined by a ratio of 1:21. K - 2 TAs per every 3 classes; Grades TA for every 2 classes; and Grade 3-1 TA for every 3 classes Teacher Assistants $32,559 Instructional Support 1 per in ADM. LEA Average School Building Administration Principals 1 per school with at least 100 ADM or at least 7 state paid teachers or LEA Average instructional support personnel. Schools opening after 7/1/2011 are eligible based on at least 100 ADM only. Assistant Principals 1 month per in ADM. LEA Average Career Technical Ed. - MOE Base of 50 Months of Employment per LEA with remainder distributed LEA Average (LIMITED FLEXIBILITY- Salary Increase) based on ADM in grades Classroom Materials/Instructional $ per ADM plus $2.69 per ADM in grades 8 and 9 for PSAT Testing Supplies/Equipment Textbooks $29.05 per ADM in grades K-12. (Indian Gaming funds are not included) Employee Benefits Category Basis of Allotment Hospitalization $5,471 per position per year. Retirement 15.32% of total salaries. Social Security 7.65% of total salaries. Statewide Average Salaries for FY (Benefits are not included) Category Basis of Allotment Teachers $44,299 Principals (MOE) $5,291 Assistant Principals (MOE) $4,906 Career Technical Ed. (MOE) $4,634 Instructional Support $50,263 Note: Dollars for position/month allotments are based on LEA's average salary including benefits, rather than the statewide average salary. They are still position/month allotments and you must stay within the positions/months allotted, not the dollars. This calculation is necessary to determine your LEA's allotment per ADM for charter schools. Division of School Business Services School Allotments Section A-15

22 State Initial Allotment Formulas FY Support Category Basis of Allotment (Funding Factors are rounded.) Noninstructional Support Personnel $ per ADM. $6,000 per Textbook Commission member for Clerical Assistants. Categorical Programs Category Basis of Allotment (Funding Factors are rounded.) Academically or Intellectually $1, per child for 4% of ADM. Gifted Students At-Risk Student Services Each LEA receives the dollar equivalent of one resource officer ($37,838) per high school. Of the remaining funds, 50% is distributed based on ADM ($90.22 per ADM) and 50% is distributed based on number of poor children, per the federal Title 1 Low Income poverty data ($ per poor child). Each LEA receives a minimum of the dollar equivalent of two teachers and two instructional support personnel ($254,450). Children with Disabilities School Aged $3, per funded child count. Child count is comprised of the lesser of the April 1 handicapped child count or 12.5% of the allotted ADM. Preschool Base of $59,946 per LEA; remainder distributed based on December 1 child count of ages 3, 4, and PreK- 5, ($3,162.24) per child. Group Homes Approved applications. Developmental Day Care (3-21) To be allotted in Revision Community Residential Centers To be allotted in Revision Disadvantaged Student Supplemental Funding Driver Training $ per public, private and federal 9th Grade ADM. Limited English Proficiency Base of a teacher asst. ($32,226); remainder based 50% on number of funded LEP students Low Wealth Supplemental Funding School Technology No New Appropriation for FY Small County Supplemental Funding Transportation See the Allotment Policy Manual for formula for allocating supplemental funding to address the capacity needs of LEAs in meeting the needs of disadvantaged students. ($386.92) and 50% on an LEA's concentration of LEP students ($4,219.86). See the Allotment Policy Manual for formula allocating supplemental funds to eligible LEAs that are located in counties that do not have the ability to generate revenue to support public schools at the state average level. ADM < 600 1,300 1,700 2,000 2,300 2,600 2,800 3,200 Please see the allotment policy Manual for Special Provisions. Allotment 1,710,000 1,820,000 1,548,700 1,600,000 1,560,000 1,470,000 1,498,000 1,548,000 80% of the Governor's Recommended Allotment. The remaining funds will be allotted in December. Career Technical Education - Program Support $10,000 per LEA with remainder distributed based on ADM in grades 8-12 ($34.02). Restrictions for FY through an ABC transfer. Category Restrictions Central Office Administration No transfers into Central Office Administration. Teacher Assistants No transfers out of this category. CTE Months and Support Transferred only as permitted by federal law and grants or rules by State Board of Education. Children with Disabilities Transferred only as permitted by federal law and grants or rules by State Board of Education. School Technology No transfers in or out. Position/MOE Allotments No Transfers into position or MOE categories. No transfers to purchase the same type of position. Division of School Business Services School Allotments Section A-16

23 GASTON COUNTY BOARD OF EDUCATION Average Daily Membership (ADM) Last Ten Fiscal Years 33,000 32,500 32,000 31,500 31,000 30,500 30, ADM * 32,460 32,585 32,444 31,654 31,415 31,033 31,189 31,152 31,421 31,555 SOURCE: Principal's Monthly Report - Month 01 * These numbers do not include Pre-Kindergarten students A-17

24 GASTON COUNTY BOARD OF EDUCATION General and Special Revenue Funds Revenue by Source Last Ten Fiscal Years $175 $150 DOLLARS (in millions) $125 $100 $75 $50 $25 $ State of North Carolina Gaston County U. S. Treasurer Other Year Ended June State of North Carolina $ 146,314,038 $ 157,742,335 $ 169,263,603 $ 169,975,593 $ 151,732,042 Gaston County 34,471,700 35,954,643 37,669,679 41,656,204 41,956,204 U.S. Treasurer 16,273,782 17,184,019 18,693,148 20,021,532 36,093,330 Other 4,155,648 4,387,582 6,397,516 4,780,614 3,748,587 Totals $ 201,215,168 $ 215,268,579 $ 232,023,946 $ 236,433,943 $ 233,530,163 Year Ended June State of North Carolina $ 154,589,134 $ 155,756,823 $ 160,344,742 $ 160,102,493 $ 170,150,839 Gaston County 41,526,204 41,526,704 41,526,704 42,781,704 43,881,704 U.S. Treasurer 38,064,755 26,631,342 21,812,505 20,286,937 20,758,427 Other 6,028,102 4,432,576 3,201,276 3,760,436 4,905,760 Totals $ 240,208,195 $ 228,347,445 $ 226,885,227 $ 226,931,570 $ 239,696,730 SOURCE: Gaston County Board of Education annual financial statements A-18

25 Gaston County Schools Per Pupil Expenditures Five Year History GASTON COUNTY SCHOOLS Governmental Operating Funds to Change Dollars Rank Dollars Rank Dollars Rank Dollars Rank Dollars Rank over pd. State $ 4, $ 4, $ 4, $ 4, $ 5, % Federal $ 1, $ $ $ $ % Local $ 1, $ 1, $ 1, $ 1, $ 1, % Total $ 7, $ 7, $ 7, $ 7, $ 7, As the chart above illustrates, Gaston County Schools share of the State funding provided to all North Carolina School Districts has gone from being the 106 th highest (out of 115 school districts statewide) to 107 th over the period from to What this ranking means is only eight (8) of the 115 school districts in the State currently receive less State per pupil funding than we do and 108 of the 115 school districts in the State currently receive more per pupil State funding than we do. When the non-governmental operating fund, the Child Nutrition Fund, is added in, our State and local rankings remain unchanged, but our federal revenue ranking improves slightly compared with the rest of the State because our Child Nutrition program is financially solvent and generates a significant amount of federal subsidies and reimbursements as well as local revenue in the form of charges for meals. Although the State provides a small amount of support for Child Nutrition operations, it does not materially impact the overall ranking of State funding to Gaston County Schools in most years. The chart below gives an indication of the North Carolina statewide per pupil average for the same five year time period. NORTH CAROLINA STATEWIDE AVERAGE Governmental Operating Funds to Dollars Dollars Dollars Dollars Dollars Change over pd. State $ 5,156 $ 5,357 $ 5,395 $ 5,385 $ 5,634 9% Federal $ 1,035 $ 847 $ 690 $ 643 $ % Local $ 1,774 $ 1,769 $ 1,949 $ 1,969 $ 2,027 14% Total $ 7,966 $ 7,972 $ 8,033 $ 7,997 $ 8,296 SOURCE: North Carolina Department of Public Instruction SOURCE: School Business Services A-19

26 BUDGET SUMMARY WE ARE Gaston County Schools

27 Gaston County Schools Budget Summary Narrative Financial Position Current Expense The North Carolina schools, counties, and the State are required to operate under a balanced budget (deficit financing is not allowed). The budgeted revenues included, represent our best approximation of the funding we will receive from the County. In addition to the County Appropriation, we expect to receive State and Federal funding and once the State and Federal revenues are set, the budget is then adjusted to the corresponding revenue and expense amount. A conservative stance is taken when projecting revenues. Fund balances are appropriated as deemed necessary based upon the amounts available as set forth in North Carolina General Statutes. As prescribed by the North Carolina General Statute 115C-432, the following directions and limitations shall bind the Board of Education in adopting a budget: 1. The school budget resolution shall conform to the County budget ordinance. 2. The full amount of lawful deficit from a prior fiscal year shall be appropriated. 3. Contingency appropriations in a fund may not exceed five percent of the total of all appropriations in that fund. 4. Sufficient funds to meet the amount to be paid during the fiscal year under continuing contracts previously entered into shall be appropriated. 5. The sum of estimated net revenues and appropriated fund balances in each fund shall be equal to the appropriations in that fund. 6. No appropriation may be made that would require the levy of supplemental taxes in excess of the amount approved by voters. 7. Revenues realized from levying supplemental taxes may not exceed the percentage of tax actually received in cash during the preceding fiscal year. 8. Amounts realized from the collection of supplemental taxes shall be included in estimated revenues. 9. No appropriation may be made to or from the capital outlay fund or to or from any other fund, except as permitted by the North Carolina General Statutes. A formal presentation of the proposed budget is made to the Board and public hearings will be scheduled as the Board deems appropriate. Approval of the budget request by the Board of Education and submission to the County Commissioners is anticipated by May 15, as required by the North Carolina School Budget and Fiscal Control Act. B-1

28 Gaston County Schools Revenue History and FY Funding Request Operating Revenue Adopted Budget Proposed REVENUE Gaston County Appropriation $ 41,526,704 $ 41,526,704 $ 42,726,704 $ 43,816,704 $ 43,816,704 $ 51,191,704 Other Miscellaneous Revenue 1,990,000 1,960, , , , ,000 Fund Balance Appropriated 1,200,000 1,200,000 1,200,000 1,200,000 2,849,000 1,981,500 TOTAL $ 44,716,704 $ 44,686,704 $ 44,676,704 $ 45,766,704 $ 47,415,704 $ 53,923,204 EXPENDITURES $ 44,716,704 $ 44,686,704 $ 44,676,704 $ 45,766,704 $ 47,415,704 $ 53,923,204 Capital Outlay Revenue Adopted Budget Proposed REVENUE County Funds $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225,000 State Funds - ADM Funds 250, TOTAL $ 1,477,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225,000 EXPENDITURES $ 1,477,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225,000 B-2

29 Gaston County Schools Proposed Current Expenses and Funding Request FY FY FY FY Description Amended Per Pupil Funding Per Pupil Increase Budget Funding Request Funding Requested Expenses: Operating Funding $ 31,007,224 $ 987 $ 37,514,724 $ 1,185 $ 6,507,500 Facilities Maintenance 3,246, ,307, ,000 Utilities 7,461, ,400, (61,000) Technology 3,400, ,400, Charter School Allocation 2,300, ,300, Total Current Expenses $ 47,415,704 $ 1,509 $ 53,923,204 $ 1,703 $ 6,507,500 Revenues: County Appropriation $ 43,816,704 $ 1,395 $ 51,191,704 $ 1,617 $ 7,375,000 Fund Balance 2,849, ,981, (867,500) Other Local Revenues 750, , (fines/forfeitures/interest) Total Revenues $ 47,415,704 $ 1,509 $ 53,923,204 $ 1,703 $ 6,507,500 ADM 31,421 31,665 (1) Based on North Carolina Department of Public Instruction Planning Allotment for FY (1) B-3

30 OPERATING REQUEST WE ARE Gaston County Schools

31 Gaston County Schools Factors Impacting the FY Budget Costs The proposed FY local budget totaling $53.9 million is impacted by both external and internal factors, some of which are calculated based on cost of inputs, others which are estimated based on previous years expenditure increases as well as possible cost increases proposed such as for salary and benefits increases. Other external factors may arise at a later time depending on decisions taken by the Governor and the General Assembly. Some of the external factors impacting the FY budget include: 1. An estimated State mandated increase for employer retirement contribution rate of 1% amounting to approximately $37, A State mandated increase in the employer-paid health insurance premiums of 2% (estimated, effective January 1, 2017) amounting to approximately $23, Additional positions for the Department of Exceptional Children to focus on legal and compliance issues as required by the State - $300,000 Some internal factors impacting the budget include expansion of current programs and new initiatives: 1. Technology supplies: Replacement of end of life SMART Board Computers - $1,000, Increasing the number of K-3 Literacy Teachers by 29 - $1,812, Increase Middle School teachers by 22 to lower the existing student to teacher ratios - $1,200, Hawks Nest STEAM Magnet Program. Start-up costs - $540, Teacher salary supplement adjustment, a further move towards the State average - $500,000 per year (over 3 years) 6. Imaging student records converting from paper to digital records - $300, A proposed salary adjustment of 3% (including benefits) for classified staff amounting to $685,000 Other factors impacting the FY budget costs (positively and negatively) include the level of inflation experienced nationally. To date, this rate has been low and stable, influenced largely by the fall in oil prices worldwide and consequently fuel and transport costs. Analysts have predicted that these prices will possibly hold throughout the calendar year Any increase in Gaston County charter schools or charter school students as well as North Carolina Virtual Public School in FY will negatively impact our local budget. The budgeted revenues and expenditures for FY is presented on the following page for informational purposes. C-1

32 Gaston County Schools Budgeted Revenues and Expenditures FY REVENUES State County Fund Balance Federal Grants Other TOTAL $ M 44.6 M 2.8 M 20.1 M 5.4 M $236.6 M EXPENDITURES Salaries and Benefits Materials and Other Services TOTAL $ M 22.7 M 22.3 M $ M C-2

33 Gaston County Schools Narrative of Budget Requirements FY A. Personnel Cost: Instruction Narrative: Description FY 16 FY 17 FY 17 Increase/ Local Budget (Decrease) Local Budget $ $ $ 1. Certified Salary Cost Includes: Instructional Staff (Teachers), Salaries and Benefits 4,248,000 4,248,000 Instructional Support (Guidance, Counselors, Nurses and Social Workers) School Administrators (Principals and Assistant Principals) New: Literacy Teachers Salaries and Benefits 1,812,500 1,812,500 - Increase K-3 teachers (29) Hawks Nest STEAM Magnet Program - Increase teachers (2) 100, , Salary Supplements To retain and attract highly qualified Salaries and Benefits 6,730,000 6,730,000 instructional and instructional support personnel New: Recurring cost to move supplement Salaries and Benefits 500, ,000 towards State Average 3. Employer Paid Benefits New: Projected increased cost of employer Benefits 20,000 20,000 paid benefits (retirement from 15.32% to 15.55%; health insurance premiums from $5,471 to $5,581) for FY2017 Total Instruction Personnel Cost 10,978,000 2,432,500 13,410,500 C-3

34 Gaston County Schools Narrative of Budget Requirements FY B. Other Schools Personnel Cost Narrative: Description FY 16 FY 17 FY 17 Increase/ Local Budget (Decrease) Local Budget $ $ $ 1. Non-certified Instructional Support Includes: Tutors, Interpreters, Therapists, Salaries and Benefits 1,490,000 1,490,000 Substitutes, Teacher Assistants New: Increase number of teacher Salaries and Benefits 1,200,000 1,200,000 assistants (31) 2. Other Non Certified Personnel Includes: Leadership, Program Directors, Salaries and Benefits 8,770,000 8,770,000 Supervisors, Clerical Support, Business Managers, Athletic Coaches, Band Assistants, Skilled Trades, Administrators, Technicians New: DEC Mandated Compliance Legal/Para-Legal positions Salaries and Benefits 300, , Benefits Related/Extra Duty Pay Salaries and Benefits 3,370,000 3,370, Classified Employee Salary Adjustment New: Classified Salary Adjustment 685, ,000 Proposed 3% 5. Employer Paid Benefits New: This amount estimates the increased Benefits 40,000 40,000 cost of employer paid benefits, based on proposed rates for retirement (from 15.32% to 15.55%)and for health insurance premiums (from $5,471 to $5,581) Total Other Schools Personnel Cost 13,630,000 2,225,000 15,855,000 Total Personnel Cost 24,608,000 4,657,500 29,265,500 C-4

35 Gaston County Schools Narrative of Budget Requirements FY C. Instructional/Instructional Support Programs Description FY 16 FY 17 FY 17 Increase/ Local Budget (Decrease) Local Budget $ $ $ Narrative: School Based Support Services 1. Program Support, school supplies and Purchased Services 4,863,320 4,863,320 materials, books, co-curricular activities, Supplies and Materials educational media services, guidance services, health and safety support services New: Professional Development Middle School Math Training Workshops 50,000 50,000 New: Hawks Nest STEAM Academy Start-Up Costs Supplies and Materials 270, ,000 Technology 110, ,000 Workshops 60,000 60,000 New: Kindergarten Summer camp Screening and orientation Purchased Services 60,000 60,000 Supplies and Materials 2. System-Wide Support Services Program leadership, support and Purchased Services 149, ,000 development services Supplies and Materials New: Student records imaging Digitizing student records Purchased Services 300, ,000 Total Instructional Support Programs 5,012, ,000 5,862,320 C-5

36 Gaston County Schools Narrative of Budget Requirements FY D. Operations Narrative: Description FY 16 FY 17 FY 17 Increase/ Local Budget (Decrease) Local Budget $ $ $ 1. Operational Support Services Gaston County Schools' Central Office Purchased Services 1,012,500 1,012,500 departments (human resources, Supplies and Materials finance/risk management, safety & security and central office administration) 2. Technology Support Services Central based activities, supporting and Purchased Services, 3,401,000 3,401,000 maintaining technical infrastructure, Hardware and Software computer hardware and software; New: Equipment Replacement End of Life SMART Board Hardware 1,000,000 1,000,000 computers Supplies and Materials 3. Utilities Electricity service, natural gas and Purchased Services 7,461,000 (61,000) 7,400,000 water supplies 4. Facilities Maintenance Purchased Services 3,246,871 61,000 3,307,871 Supplies and Materials Equipment 5. Transportation Vehicle maintenance and repair costs, Supplies and Materials 374, ,013 fuel, contracted transportation Equipment 6. Charter School Transfers Services 2,300,000 2,300,000 Total Cost of Operations 17,795,384 1,000,000 18,795,384 Grand Total 47,415,704 6,507,500 53,923,204 C-6

37 WE ARE Gaston County Schools W. Jeffrey Booker Superintendent 943 Osceola Street P.O. Box 1397 Gastonia, NC Phone (704) Fax (704) WE ARE Gaston County Schools

38 Funding Expansion Request (FY ) FY Local Operating Budget Proposal Funding Expansion Request Priority Recommendation Item Cost Ongoing New Total A. County Funding Ongoing Expenditures State Mandated Increase in Employer Paid Benefits $ 60,000 $ - New Initiatives 1 Certified Employee Salary Supplement Adjustment $ 1,000,000 $ 500,000 2 Classified Employee Salary Adjustment - 685,000 3 Replacement of End of Life SMART Board Computers - 1,000,000 4 Hawks Nest STEAM Magnet Program - 480,000 5 Increase Number of Teaching Positions - 1,200,000 6 Increase Number of K-3 Literacy Teachers - 1,740,000 7 Middle School Math Training - 50,000 8 Kindergarten Summer Camp - 60,000 9 Department of Exceptional Children Compliance - 300, Image Student Records - 300,000 Proposed County Funding Increase $ 1,060,000 $ 6,315,000 $ 7,375,000 B. GCS Fund Balance Changes Increase Number of K-3 Literacy Teachers - Supplies Hawks Nest STEAM Magnet Program - Workshop Expenses $ - $ - 72, ,000 Fund Balance Usage for Certified Employee Salary Supplement - - (1,000,000) Proposed GCS Fund Balance Change $ - $ - $ (867,500) Total Additional Funding Requested $ 6,507,500 C-8

39 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 60,000 Project Description All Schools Finance State Mandated Increase in Employer Paid Benefits State mandated increases in employer paid retirement and health insurance benefits. Background & Justification / Status The State budget is expected to include a projected health insurance premium rate increase for FY This increase is expected to be about 1.0% effective January 1, This increase would be comparable to last year's increase and would amount to an increase of $23,000. Also, the State is expected to approve increases for retirement rates comparable to last year's increase of 2.0% beginning July 1, This would amount to an increase of $37,000. Potential Impact If Not Funded or Delayed If not funded, the State-mandated increases in employee benefits will be funded using local funds already budgeted for educational purposes. Estimated Three Year Costs Expenditure FY Request FY Planning FY Planning Total Cost Three Years Salaries and Benefits $ 60,000 $ 60,000 $ 60,000 $ 180,000 Materials and Supplies Contracted Services Other Operating Expenses Capital Outlay Total $ 60,000 $ 60,000 $ 60,000 $ 180,000 Requested by: Gary F. Hoskins, Chief Financial Officer Approved by: W. Jeffrey Booker, Superintendent C-9

40 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 1,500,000 Project Description All Schools Payroll Certified Employee Salary Supplement Adjustment Increase local supplements paid to certified school personnel (i.e. teachers, social workers, nurses, etc.) Background & Justification / Status The average GCS certified staff supplements of $2,229 for fall significantly below the State average of $3,689. GCS is also below the average certified salary supplements of Union County ($3,516) and Cabarrus County ($3,029). We are proposing to bring the GCS average supplement up to the Cabarrus County average over a three year period. In order to increase the average GCS salary supplement to the level of Cabarrus County, we would need to increase our salary supplement $1.5 million. This amounts to $500,000 per year for three years. In addition, last year the Board of Education funded a $1.0 million increase in the certified salary supplement using fund balance. This funding is a recurring expenditure which will continue to draw down the GCS fund balance over time, so we are requesting County funding for this amount. Potential Impact If Not Funded or Delayed GCS will continue to experience difficulty in recruiting and retaining highly qualified certified staff and school administrators, together with low morale, if the local supplements offered remain uncompetitive. Estimated Three Year Costs Expenditure FY Request FY Planning FY Planning Total Cost Three Years Salaries and Benefits $ 1,500,000 $ 2,000,000 $ 2,500,000 $ 6,000,000 Materials and Supplies Contracted Services Other Operating Expenses Capital Outlay Total $ 1,500,000 $ 2,000,000 $ 2,500,000 $ 6,000,000 Requested by: Gary F. Hoskins, Chief Financial Officer Approved by: W. Jeffrey Booker, Superintendent C-10

41 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: All Schools Payroll Total Cost: $ 685,000 Project Description Classified Employee Salary Adjustment Salaries and benefits adjustments for non-certified employees such as cafeteria workers, bus drivers, clerical, maintenance, technology, etc. Background & Justification / Status The FY NC budget included a 1% one-time salary increase for all non-exempt (hourly) employees such as clerical staff, teacher assistants, custodians, bus drivers, cafeteria workers, etc. Salaried (exempt) employees were not included in this increase. Prior to this one-time increase for certain employees, there had been no salary adjustments for non-certified employees for several years. In the mean time, the State and County have both increased pay for similar type workers over the past several years. As a result, vacancies are more difficult to fill and qualified employees are seeking employment elsewhere. This proposal provides for a 3% salary increase for each classified employee, non-exempt and exempt, plus employer paid benefits. Potential Impact If Not Funded or Delayed GCS will continue to experience difficulty in recruiting and retaining highly qualified classified employees without this salary increase. Estimated Three Year Costs Expenditure FY Request FY Planning FY Planning Total Cost - Three Years Salaries and Benefits $ 685,000 $ 685,000 $ 685,000 $ 2,055,000 Materials and Supplies Contracted Services Other Operating Expenses Total $ 685,000 $ 685,000 $ 685,000 $ 2,055,000 Requested by: Gary F. Hoskins, Chief Financial Officer Approved by: W. Jeffrey Booker, Superintendent C-11

42 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 1,000,000 Project Description Expenditure All Schools Technology Support Services (TSS) Replacement of End of Life SMART Board Computers Replacement of end of life desktop computers that are utilized with SMART Boards. Background & Justification / Status Project 2050 was implemented during the summer of Each classroom received a current desktop to work with their SMART Board. A desktop is required for the SMART Board station to run Smart Notebook Software (42% of teachers utilize this software) and PowerTeacher, which is the student gradebook. These computers are end of life, end of support, running slowly and negatively impacting teaching, learning, and testing. We currently have 2,143 SMART Boards in our schools. There are a few schools that do not require new computers at this time due to closure or new openings. The District needs to replace 1,979 computers at $475 plus tax each. Potential Impact If Not Funded or Delayed Computers will stop functioning or will be extremely slow and students and teachers will not have access to an adequate computing device and SMART Board in their classrooms. Estimated Three Year Costs FY Request FY Planning FY Planning Total Cost - Three Years Salaries and Benefits $ - $ - $ - $ - Materials and Supplies Contracted Services Capital Outlay 1,000, ,000,000 Total $ 1,000,000 $ - $ - $ 1,000,000 Requested by: Cindee Matson, Assistant Superintendent for Administration Approved by: W. Jeffrey Booker, Superintendent C-12

43 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 540,000 Project Description The K-5 Hawks Nest STEAM Academy will open in August Funding is needed for: Salaries, Professional Development, and Curriculum Resources. Technology cost projections are also included. Background & Justification / Status The STEAM magnet was approved by the BOE as a result of community meeting requests for more school choice. Since the entire Hawks Nest building will be emptied to house the new magnet program, materials will be needed for Kindergarten through 5th grade classes. Some salvageable materials may be available from the closing of Forest Heights, but the vast majority of materials will follow teachers and students to their new schools. Expenditure Hawks Nest STEAM Academy K-8 Instruction Potential Impact If Not Funded or Delayed Hawks Nest STEAM Magnet Program Students and teachers will not have the resources needed to be successful. Estimated Three Year Costs FY Request FY Planning FY Planning Total Cost - Three Years Salaries and Benefits $ 100,000 $ 160,000 $ 160,000 $ 420,000 Materials and Supplies 270,000 50,000 50, ,000 Contracted Services - - Workshop Expense 60,000 60,000 60, ,000 Computer Software/Hardware 110,000 5,000 5, ,000 Other Operating Expenses Total $ 540,000 $ 275,000 $ 275,000 $ 1,090,000 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-13

44 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 1,200,000 Project Description Background & Justification / Status Increase Number of Teaching Positions Historically, middle schools have had higher student to teacher ratios than our high schools and elementary schools. In addition, test results for many of our middle school students have been below expectations. In order to improve the instructional experience for our middle school students, we have developed a multifaceted strategy. Part of that strategy is to add 22 teachers to our middle schools. These additional educators would improve overall instruction in the middle school classrooms, including remediation. The average cost (including benefits) for a Teacher is about $55,000. Potential Impact If Not Funded or Delayed If this item is not funded, our middle school teachers will continue to work as fervently as possible to help our children. However, it is imperative as we strive to improve and address achievement gaps and reading proficiency levels that additional instructional support be available. Estimated Three Year Costs All Middle Schools K-8 Instruction Hire additional Middle School Teachers to lower the existing student to teacher ratios. Expenditure FY Request FY Planning FY Planning Total Cost Three Years Salaries and Benefits $ 1,200,000 $ 1,200,000 $ 1,200,000 $ 3,600,000 Materials and Supplies Contracted Services Other Operating Expenses Capital Outlay Total $ 1,200,000 $ 1,200,000 $ 1,200,000 $ 3,600,000 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-14

45 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: All Elementary Schools K-8 Instruction Total Cost: $ 1,812,500 Project Description Expenditure Increase Number of K-3 Literacy Teachers These funds would be used to provide additional Literacy Teachers to all Gaston County K-3 elementary schools and enable any below proficient reader access to this research-based approach to literacy instruction. This request includes salary and benefits totaling $1,740,000 per year for 29 teachers and $72,500 in start-up costs for materials/technology. Background & Justification / Status With the implementation of Read to Achieve, it is expected that every student be able to read at or above grade level by the end of 3rd grade. On average, 750+ third graders end the year below grade level in reading. This deficiency could impact the students' future potential to learn and to achieve our vision of "success and lifelong learning". Individuals who are not literate are more likely to drop out of school and earn lower wages. Over 75% of non-readers are considered economically disadvantaged. In order to achieve our vision and reach our goals, Literacy Teachers would be employed and utilized at each school to work with students in focused, small groups on a daily basis. When considering the need in terms of kindergarten, first, second, and third grades, the approximate number of students in need of this program is 3,000. The actual need for literacy personnel in our system is well over 75 teachers. This proposal is the beginning step of addressing this need. This proposal would provide one Literacy Teacher in each of the 29 K-3 schools (not to include 4-5 schools) to serve approximately 1,200 K-3 students. This proposal also takes into account that Title I funding would be used to supplement this program with an additional Literacy Teacher in each of 18 K-3 Title I schools, with the potential to serve an additional 800 students. The result should be a significant improvement in early grades literacy. Potential Impact If Not Funded or Delayed A significant number of K-3 students will continue to read at below-proficient levels. This will hinder their ability to learn in later grades and their ability to be successful in life. Estimated Three Year Costs FY Request FY Planning FY Planning Total Cost Three Years Salaries and Benefits $ 1,740,000 $ 1,740,000 $ 1,740,000 $ 5,220,000 Materials and Supplies 72, ,500 Contracted Services Other Operating Expenses Total $ 1,812,500 $ 1,740,000 $ 1,740,000 $ 5,292,500 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-15

46 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 50,000 Project Description Expenditure All Middle Schools K-8 Instruction Middle School Math Training With the implementation of an adopted math textbook resource for Middle Schools, intensive on-going training from the vendor will need to be provided to all Middle School Math Teachers throughout the year. This cost does not include textbooks which are funded with State dollars. Background & Justification / Status Middle school math teachers do not have prescribed math resources that are consistently used across the district. The Academic Services Department's focus is on Middle School Math and providing resources and training is the top priority to help increase student achievement. This should have a positive impact on our Middle School student's math comprehension and understanding, resulting in a higher level of math proficiency. Potential Impact If Not Funded or Delayed Currently without math resources that are consistently used across the district, Middle School math scores are below proficiency at 48%. Unless a consistent and effective Middle School math program is implemented, math proficiency scores are not expected to increase significantly. Estimated Three Year Costs FY Request FY Planning FY Planning Total Cost - Three Years Salaries and Benefits $ - $ - $ - $ - Materials and Supplies Workshop Expense 50,000 25,000 25, ,000 Computer Software/Hardware Other Operating Expenses Total $ 50,000 $ 25,000 $ 25,000 $ 100,000 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-16

47 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 60,000 Project Description Background & Justification / Status Currently, kindergarten students are not screened until the first days of school. By screening these students during the summer, we can do a better job assigning the children to teachers. Also, allowing the children to preview kindergarten will help familiarize them with school. Potential Impact If Not Funded or Delayed It will take schools longer to get to know their students and meet their needs. Estimated Three Year Costs Expenditure All Elementary Schools K-8 Instruction Kindergarten Summer Camp The $60,000 will be used to screen kindergarten students and familiarize them with a kindergarten schedule. For some kindergarten students this will be their first time in a school setting. FY Request FY Planning FY Planning Total Cost - Three Years Salaries and Benefits $ 60,000 $ 60,000 $ 60,000 $ 180,000 Materials and Supplies Contracted Services Computer Software/Hardware Other Operating Expenses Total $ 60,000 $ 60,000 $ 60,000 $ 180,000 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-17

48 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 300,000 Project Description Expenditure All Schools Department of Exceptional Children (DEC) DEC Compliance Improved DEC compliance by providing additional positions to focus on legal and compliance issues related to children that may be served by DEC and funding for proper training of the State-mandated Multi Tiered Systems of Support (MTSS) model to appropriately identify and serve exceptional children. Background & Justification / Status The State Department of Public Instruction is requiring that school system transition to the MTSS approach to identify children for exceptional children services. There are specific clarifications related to interventions and processes that have to be implemented. This can lead to parent concerns as well as potential State and OCR complaints. The additional compliance support would provide frequent, targeted support to our schools and allow staff to be proactive in interactions with parents. As we have transitioned to the MTSS process in Gaston County Schools, we are noticing an increase in schools exceeding the 90-day timeline for placement of students eligible for services. If funded, schools from within the district will have better access to intervention plans for students as they move from school to school. Potential Impact If Not Funded or Delayed The state mandates that we are 100% trained and using the MTSS model by the year If this is not funded, it will greatly impact our ability to reach that mandate in a timely manner. The additional support will provide the appropriate exceptional children services to all students that meet the definition. Estimated Three Year Costs FY Request FY Planning FY Planning Total Cost - Three Years Salaries and Benefits 250, , , ,000 Materials and Supplies Contracted Services Computer Software/Hardware 50, ,000 Total $ 300,000 $ 250,000 $ 250,000 $ 800,000 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-18

49 Funding Expansion Request (FY ) FY Local Operating Budget Proposal School: Department: Project Title: Total Cost: $ 300,000 Project Description All Schools Student Support Services Image Student Records A record retention schedule must be established to ensure compliance with State guidelines and security of student information. Records of students that no longer attend school in Gaston County because they have graduated or transferred to another district must be electronically maintained for a minimum of 40 years. Background & Justification / Status In 2010 Gaston County Schools closed our student records facility as a cost saving measure. The staff was eliminated and a facility was closed in an effort to reduce overall district cost. Schools now store their student records until they are picked up to be scanned and imaged by a third-party vendor. Potential Impact If Not Funded or Delayed Student information being kept in paper format on school premises makes that sensitive student information more at risk than if it were scanned and the paper copies were shredded. Estimated Three Year Costs Expenditure FY Request FY Planning FY Planning Total Cost Three Years Salaries and Benefits $ - $ - $ - $ - Materials and Supplies Contracted Services 300, , , ,000 Other Operating Expenses Capital Outlay Total $ 300,000 $ 300,000 $ 300,000 $ 900,000 Requested by: Dr. Melissa Balknight, Assistant Superintendent of Academic Services Approved by: W. Jeffrey Booker, Superintendent C-19

50 CAPITAL OUTLAY WE ARE Gaston County Schools

51 Gaston County Schools Capital Outlay Narrative FY The capital outlay budget is designed to provide funding for the systematic repair and replacement of the school system's major assets such as roofs, heating and air conditioning units, paved areas, furniture, equipment, and vehicles. This funding is also used for funding major renovation projects. Funding for capital outlay is provided from various sources. These sources include a special sales tax levy authorized by the State of North Carolina and held by the County, (by statute, these amounts must go to reduce the school system's debt service or for capital needs), revenue from annual County appropriation and Capital Improvement Bond issues. Gaston County Schools (GCS) maintains almost five million square feet of space located across 55 schools and various administrative buildings (which are generally converted schools). With the exception of several of our newest buildings and additions, the vast majority of GCS building systems are either beyond or approaching their expected service life. In some cases these components have been in service twice as long as their expected life cycle. This not only risks component failures, but also means that many systems are operating at minimum performance levels which significantly increases utility costs. In the 2009 Association of Physical Plant Administrators Book of Knowledge, entitled Capital Renewal and Deferred Maintenance Programs, Harvey Kaiser states that an appropriate annual budget allocation for routine maintenance and capital replacement is 2 to 4 percent of aggregate replacement value of the facilities in the inventory. At roughly five million square feet of inventory and a replacement cost of $180 per square foot, that would mean the total budget for GCS routine maintenance and capital replacement should be at least $18 million. Whitestone Research is often cited as the definitive source of data on facilities funding. Their 14 th annual edition of The Whitestone Facility Maintenance and Repair Cost Reference indicates an average cost for an elementary school to be $3.37 per gross square foot. For GCS that would work out to almost $17 million. The Council of the Great City Schools does an annual report of benchmarks for various expenditures. This is an organization that includes a broad range of school districts from across the country. This organization has published a document entitled, Reversing the Cycle of Deterioration in the Nation s Public Schools. In that document they recommend a funding level $3.06 to $4.08 per square foot for total maintenance and operations funding. That would be between $15 and $20 million for GCS. We are currently working with the County Commissioners on obtaining capital funding through the sale of bonds for two new schools that will be used to replace four aging facilities. GCS also needs to receive bond funding of around $35 million for existing capital needs and additional funding to acquire land for future growth and/or replacement of aging facilities. In addition to this bond funding, we are requesting funding for annual routine maintenance. The median routine maintenance as calculated in 2014 by the Council of the Great City Schools was $1.06 per square foot. This would equate to $5.2 million, which is the amount of our request for routine annual maintenance. D-1

52 Gaston County Schools Capital Outlay Budget FY Revenues County Funds State Funds - ADM Funds TOTAL Adopted Budget Proposed $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225, , $ 1,477,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225,000 TOTAL Expenditures Computer/Tech - ADM Funds Computer/Tech - Non-ADM Funds Vehicles/ Buses/ Activity Buses Roofing Architect/Site/Testing Paving/Landscaping HVAC Plumbing Electrical & Electronic Systems General Renovations & Improvements Furniture and Equipment Adopted Budget Proposed $ 250,000 $ - $ - $ - $ - $ - 100, , , ,000 84, , , , , , , , , , ,000 95,000-1,750,000 10,000 10,000 10,000 10,000-10,000 52,000 52,000 52, , ,000 40,000 40,000 40,000 12, ,000 40,000 40,000 40,000 50,000-75,000 50,000 50,000 50,000 10, , , , , , ,980 1,790,000 95,000 95,000 95, , , ,000 ADM FUNDS $ 250,000 $ - $ - $ - $ - $ - COUNTY CAPITAL $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225,000 GRAND TOTAL $ 1,477,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 1,227,000 $ 5,225,000 In 2014, the Board of Education engaged a third party to conduct a comprehensive facilities study on thirteen schools located throught the district. This study identified more than $121 million in total capital needs for these thirteen schools. In addition, the district recently completed a State-mandated Facilities Needs Survey which identified over $661 million in total capital needs for all 55 schools in the district. We are currently in the process of updating the Gaston County Schools Capital Improvement Plan CIP with new information obtained in our Facilities Needs Survey. In addition, the Board of Education and the County Commissioners have agreed to consolidate three aging elementary schools into a new elementary school and replace one aging middle school with a new middle school. D-2

53 Gaston County Schools Building Age Graph Percent by Age as of % 18.0% 18.0% 17.5% 18.5% 16.0% 15.0% 14.0% 13.5% 12.0% 10.0% 8.0% 7.0% 7.5% 6.0% 4.0% 3.0% 2.0% 0.0% 0-9 Yrs (2007/2016) Yrs (1997/2006) Yrs (1987/1996) Yrs (1977/1986) Yrs (1967/1976) Yrs (1957/1966) Yrs (1947/1956) =>70 Yrs (Pre 1946) As with many school systems across the United States, Gaston County Schools has many old school buildings. The accompanying chart displays the ages of school buildings. The Board of Education is working with the Board of County Commissioners to develop a long-range plan to provide funding to maintain the integrity and safety of these buildings and to replace the older buildings with new facilities. D-3

54 Gaston County Schools History of Capital Outlay 5 Year Average Per Pupil Rank Capital Outlay Capital Outlay State Fiscal Year 5 year Average 5 year Average 5 year Average $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $763 This chart represents a five year rolling average of capital outlay per pupil. Construction of a new high school began in FY , resulting in an improved ranking. The school began operation in FY North Carolina Department of Public Instruction Division of School Business Services D-4

55 GASTON COUNTY BOARD OF EDUCATION Capital Outlay Revenues by Source and Expenditures in Total Last Ten Fiscal Years $30 $25 REVENUES (in millions) $20 $15 $10 $5 $ County County Bonds State of North Carolina Other Year Ended June Revenue County $ 1,332,833 $ 1,011,259 $ 1,745,315 $ 1,314,765 $ 1,314,765 County Bonds 10,776,866 6,197,049 15,226,168 27,342,321 27,342,321 State of North Carolina 2,016,479 2,077,450 1,681,747 2,703,269 2,703,269 Other 323, , ,944 1,314,103 1,314,103 Total Revenue $ 14,450,120 $ 9,408,790 $ 19,532,174 $ 32,674,458 $ 32,674,458 Total Expenditures $ 15,090,989 $ 10,948,439 $ 19,533,033 $ 35,606,956 $ 35,606,956 Year Ended June Revenue County $ 1,327,324 $ 1,068,733 $ 1,907,273 $ 1,920,987 $ 1,771,953 County Bonds 18,914,210 24,730,833 16,616,048 4,580,975 5,845,318 State of North Carolina 1,263, , , , ,873 Other 805, ,566 96, Total Revenue $ 22,310,179 $ 26,917,849 $ 19,352,654 $ 6,699,326 $ 8,037,144 Total Expenditures $ 23,713,891 $ 27,746,415 $ 25,054,166 $ 7,637,489 $ 8,738,396 SOURCE: Gaston County Board of Education annual financial statements D-5