We Educate Today You Succeed Tomorrow. Greenville ISD 3504 King St/P.O. Box 1022 Greenville, Texas

Transcription

1 2010 We Educate Today You Succeed Tomorrow 2011 Greenville ISD 3504 King St/P.O. Box 1022 Greenville, Texas

2 Tonight s Agenda

3 Budget Process Timeline July 5 th Budget Workshop July 5 th Approve Proposed Budgets, Set Public Hearing Date to Discuss Budget July 25 th Certified Roll is received from Hunt County Appraisal District August 1 st Publish Notice of Public Hearing August 16 th Approve Budgets August 16 th Adopt Tax Rates

4 Year in Review Issued $3.05 million in QSCBs to finance Energy Performance Contract at 0.00% Interest Refinanced Series 2001 Bonds for projected savings of $225,000 Entered into lease to purchase 930 school computers Entered into lease to purchase 5 school buses and 1 district vehicle

5 Year in Review 82 nd Texas Legislative Session Proposed $4.0 Billion cut to Foundation School Program Stimulus (ARRA) funds expiring - $1.7 million in salaries paid from stimulus in F.I.R.S.T. Rating Superior Achievement the best rating a school district can receive Received Education Jobs Grant Funds GISD s allocation total $783,817

6 Year in Review Received Unqualified Opinion on Audit Report Best opinion an entity can receive Received 3 Stars on Comptroller s F.A.S.T. Rating System Awarded Meritorious Budget Award from ASBO Received Gold Award from Comptroller for Financial Transparency Highest rating awarded

7 Budget Goals & Priorities Present Board with Balanced Budget for Continue to Reduce Costs away from Students & Classrooms Review Staffing Levels through Natural Attrition Continue to Implement Strategic Action Plans

8 Board Budget Responsibilities General Fund Debt Service Fund Student Nutrition Fund Board of Trustees

9 Student Nutrition Fund Approved Extending partnership with Chartwells for No Student Meal Price Increases proposed for Guaranteed surplus for projected at $96,306

10 Student Nutrition Fund 2010/ /12 Revised Proposed % % of Descriptions Budget Budget Variance Change Budget Local Revenue Sources $ 477,318 $ 488,405 $ 11, % 20.5% State Revenue Sources 17,000 16,000 (1,000) 5.9% 0.7% Federal Revenue Sources 1,986,623 1,873,329 (113,294) 5.7% 78.8% Total Revenues $ 2,480,941 $ 2,377,734 $ (103,207) 4.2% 100.0% Payroll $ 812,102 $ 658,962 $ (153,140) 18.9% 28.9% Contracted Services 433, ,386 59, % 21.6% Supplies 1,134,395 1,126,304 (8,091) 0.7% 49.4% Other Expenses 4,000 3,776 (224) 5.6% 0.2% Total Expenditures $ 2,383,719 $ 2,281,428 $ (102,291) 4.3% 100.0% Net Income (Loss) $ 97,222 $ 96,306 $ (916)

11 Debt Service Fund Debt service requirements ~$300,000 lower in and for remainder of life. Refunded Series 2001 Projected savings totaling ~$225,000. Healthy Fund Balance to help hedge against future unforeseen circumstances and to promote higher bond ratings.

12 Future - Debt Service Requirements $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ 2010/ / / / / / / / / / / / / / / /26 PRINCIPAL INTEREST

13 Outstanding Debt Obligation 25,000, ,000, ,000, ,000, ,000, / / / / / / / / / / / / / / / /26 Series 2006 Series 2011

14 Debt Service Fund 2010/ /12 Adopted Proposed % % of Descriptions Budget Budget Variance Change Budget Local Revenue Sources $ 2,264,064 $ 2,071,514 $ (192,550) 8.5% 100.0% State Revenue Sources 115,000 (115,000) 100.0% 0.0% Federal Revenue Sources 0.0% 0.0% Total Revenues $ 2,379,064 $ 2,071,514 $ (307,550) 12.9% 100.0% Principal on Long term debt $ 304,158 $ 230,000 $ (74,158) 24.4% 11.1% Interest on Long term debt 2,074,906 1,841,514 (233,392) 11.2% 88.9% Debt Issuance Costs & Other Fees 0.0% 0.0% Total Expenditures $ 2,379,064 $ 2,071,514 $ (307,550) 12.9% 100.0% Net Income (Loss) $ $ $

15 General Fund 82 nd Texas Legislative Session - $4.0 Billion cut to Foundation School Program Budget Reductions Implemented Future Budget Years/Biennia Compensation & Benefits Plan/Other Options

16 Legislative Update SPECIAL SESSION Began on Tuesday, May 31st Filibuster on Sunday, May 29 th killed Fiscal Matters SB 1811

17 Special Session 30-day Special Session, ending June 30, 2011 Call to include, measures that will allow school districts to operate more efficiently Opens the door to propose additional topics that weren t passed in regular session In relation to School Finance, legislators are beginning with HB 1/SB 1 (formerly SB 1811)

18 HB 1/SB 1 (SB 1811) SB 1811 was the compromise b/w the House and Senate over distributing $4B to districts Under HB 1/SB 1 GISD stands to lose $2.5 million over biennium FY 2012 Rep. Eissler s proration proposal GISD loses $1,700,000 in 1 st year FY 2013 Sen. Shapiro s Hybrid Model (SB 22) proposal GISD loses $800,000 in 2 nd year

19 HB 1/SB 1 (SB 1811) Model Description FY 2012 Rep. Eissler "Proration" FY 2013 Sen. Shapiro "Hybrid Model" Regular Program Allotment 92.39% 98.00% Target Revenue % Retained % 92.35% Loss in FSP to GISD $ 1,706,058 $ 794,078 Loss over Biennium $ (2,500,136) Source: Legislative Budget Board

20 Behind the Numbers Proration is not a cut, but rather a delay of payment (settle up payment) OR IT USED TO BE.. Hybrid Model does nothing to address Target Revenue essentially lowers everyone Regular Program Adjustment Factor will be set in appropriations process NOT in framework of statute Will force HIGHER Tax Rates Except for those districts already at maximum have no way of recouping loss

21 Bearing the Pain Quintile Tax Rate Wealth per WADA Adjusted TR CL Revenue per WADA Lower 20% $ 1.14 $ 158,614 $ 4,874 $ 5,544 Upper 20% $ 1.02 $ 831,942 $ 6,612 $ 7,164 Source: The Equity Center The lower funded districts will no longer have any meaningful discretion local tax dollars raised through TRE will be used to replace lost state aid. The Texas Supreme Court has maintained in the past that this action represents an unconstitutional state property tax

22 Budget Reductions Implemented $700,000 Natural attrition of open positions $100,000 7% department reduction $50,000 Reduced substitute rates to comparable districts. $30,000 Eliminate parent center $50,000 Reduce stipends 10%

23 Budget Reductions Implemented $10,000 Require direct deposit for all employees $10,000 Adjusted Maintenance Vehicle Usage $10,000 Open less campuses during summer school $10,000 Eliminate software overlaps $40,000 Hold non-critical open positions open for 30 to 60 days

24 General Fund SB 1811 Funding Level for FY 2012 & FY / / /11 Current Law SB 1811 Revised Proposed Proposed % % of Descriptions Budget Budget Budget Variance Change Budget Tax Revenues $ 16,300,000 $ 16,754,243 $ 16,754,243 $ 454, % 52.7% Other Local Revenues 406, , ,026 (4,269) 1.1% 1.3% State Revenue Sources 14,231,985 14,837,710 13,137,710 (1,094,275) 7.7% 41.3% TRS On Behalf 1,699,000 1,329,770 1,329,770 (369,230) 21.7% 4.2% Federal Revenue Sources 175, , , % 0.6% Other Sources 3,522,418 (3,522,418) 100.0% 0.0% Total Revenues $ 36,334,698 $ 33,498,749 $ 31,798,749 $ (4,535,949) 12.5% 100.0% Payroll $ 28,485,497 $ 27,679,421 $ 27,429,421 $ (1,056,076) 3.7% 84.7% Contracted Services 2,828,573 2,460,589 2,460,589 (367,984) 13.0% 7.6% Supplies 1,219,256 1,197,374 1,197,374 (21,882) 1.8% 3.7% Other Expenses 689, , ,989 (39,760) 5.8% 2.0% Debt Service 459, , , , % 1.9% Capital Outlays 3,683,787 6,500 6,500 (3,677,287) 99.8% 0.0% Total Expenditures $ 37,366,349 $ 32,622,427 $ 32,372,427 $ (4,993,922) 13.4% 100.0% Increase (Decrease) in Fund Balance $ (1,031,651) $ 876,322 $ (573,678) $ 457,973

25 Future Budget Years/Biennia 2010/ / / / /15 Revised Proposed Projected Projected Projected Descriptions Budget Budget Budget Budget Budget Total Revenues $ 32,812,280 $ 31,798,749 $ 33,113,813 $ 33,073,189 $ 33,101,191 Total Expenditures $ 37,366,349 $ 32,372,427 $ 33,252,911 $ 33,896,005 $ 34,551,961 Other Sources (Uses) $ 3,522,418 $ $ $ $ Increase (Decrease) in Fund Balance $ (1,031,651) $ (573,678) $ (139,098) $ (822,816) $ (1,450,770) Fund Balance Beginning 7,440,641 6,408,990 5,835,312 5,696,214 4,873,398 Fund Balance Ending $ 6,408,990 $ 5,835,312 $ 5,696,214 $ 4,873,398 $ 3,422,628

26 Compensation & Benefits Plan ActiveCare rates increased ~7% Mandated teacher step raise HB % increase for all support staff & admin District monthly ActiveCare contribution $ Highest in surrounding area ActiveCare rates increased ~9% Salary levels frozen for all employees Propose raising district monthly ActiveCare contribution from $ to $ or 100% of ActiveCare 1 Estimated cost to GISD ~$250,000

27 Changes in Insurance Premiums TRS ActiveCare Rate Summary (Employee Only) Rates Rates Rates Increase over Year Increase # of GISD Employees ActiveCare 1 $278 $297 $325 $28 $47 47 ActiveCare 1 HD $245 $262 $287 $25 $25 5 ActiveCare 2 $370 $396 $434 $38 $ ActiveCare 3 $498 $533 $584 $51 $86 12

28 Monthly Contribution by District District Monthly Contribution Ratio to Mean Variance to GISD Greenville ISD $ $ $ Rockwall ISD $ $ 3.00 $ McKinney ISD $ $ 1.00 $ Royse City ISD $ $ (5.00) $ Commerce ISD $ $ (9.00) $ Terrell ISD $ $ (11.00) $ Caddo Mills ISD $ $ (11.00) $ Kaufman ISD $ $ (34.00) $ Mean $ ** GISD currently contributes $289.34/month for TRS

29 Teacher s Salaries Hunt County District Teacher's Beginning Base Salary Average Ratio to Mean Variance to GISD Greenville ISD $40, $ 5, $0.00 Commerce ISD $39, $ 3, ($1,531.71) Celeste ISD $37, $ 2, ($2,847.91) Boles ISD $36, $ 1, ($3,956.77) Caddo Mills ISD $36, $ 1, ($4,361.91) Quinlan ISD $35, $ ($4,892.60) Wolfe City ISD $33, $ (1,945.75) ($7,322.62) Campbell ISD $31, $ (3,971.06) ($9,347.93) Bland ISD $31, $ (4,157.19) ($9,534.06) Lone Oak ISD $30, $ (4,596.30) ($9,973.17) Mean $35, Source: TASBO efacts+

30 General Fund Insurance Option 2011/ / /11 Proposed Proposed Revised Budget Budget Descriptions Budget No Increase w/trs Option Tax Revenues $ 16,300,000 $ 16,754,243 $ 16,754,243 Other Local Revenues 406, , ,026 State Revenue Sources 14,231,985 13,137,710 13,137,710 TRS On Behalf 1,699,000 1,329,770 1,329,770 Federal Revenue Sources 175, , ,000 Other Sources 3,522,418 Total Revenues $ 36,334,698 $ 31,798,749 $ 31,798,749 Payroll $ 28,485,497 $ 27,429,421 $ 27,679,421 Contracted Services 2,828,573 2,460,589 2,460,589 Supplies 1,219,256 1,197,374 1,197,374 Other Expenses 689, , ,989 Debt Service 459, , ,554 Capital Outlays 3,683,787 6,500 6,500 Total Expenditures $ 37,366,349 $ 32,372,427 $ 32,622,427 Increase (Decrease) in Fund Balance $ (1,031,651) $ (573,678) $ (823,678)

31 What is E-rate? E-rate Another name for the Schools and Libraries Program of the Universal Service Fund Function provides discounts to assist schools and libraries in obtaining affordable telecommunications and internet access. Availability Discounts depend on the level of poverty and the urban/rural status of the population served and range from 20% to 90% of the costs.

32 E-rate to GISD Based on GISD s free and reduced lunch % - the district receives a discount of 81% off the cost of eligible services. Priority 1 E-rate items that can be applied for every year by GISD (e.g. phone services, internet, etc.). Priority 2 E-rate items that can only be applied for 2 out of every 5 years (e.g. hardware, servers, switches, etc.).

33 GISD E-rate Services Original E rate Service Cost Cost Savings ITEMS ALREADY APPROPRIATED FOR: Priority 1 $ 219,020 $ 41,614 $ 177,406 Priority 2 $ 133,267 $ 25,321 $ 107,946 $ 352,287 $ 66,935 $ 285,353 E RATE APPROPRIATIONS REQUEST: Priority 2 Network Solutions $ 1,127,019 $ 171,307 $ 955,712 Video Conferencing $ 41,335 $ 7,854 $ 33,481 $ 1,168,354 $ 179,161 $ 989,193

34 General Fund E-rate Option 2011/ / / / /11 Proposed Proposed Proposed Proposed Revised Budget Budget Budget Budget Descriptions Budget No Increases w/trs ONLY w/e rate ONLY w/trs & E rate Tax Revenues $ 16,300,000 $ 16,754,243 $ 16,754,243 $ 16,754,243 $ 16,754,243 Other Local Revenues 406, , , , ,026 State Revenue Sources 14,231,985 13,137,710 13,137,710 13,137,710 13,137,710 TRS On Behalf 1,699,000 1,329,770 1,329,770 1,329,770 1,329,770 Federal Revenue Sources 175, , , , ,000 Other Sources 3,522,418 Total Revenues $ 36,334,698 $ 31,798,749 $ 31,798,749 $ 31,798,749 $ 31,798,749 Payroll $ 28,485,497 $ 27,429,421 $ 27,679,421 $ 27,429,421 $ 27,679,421 Contracted Services 2,828,573 2,460,589 2,460,589 2,460,589 2,460,589 Supplies 1,219,256 1,197,374 1,197,374 1,197,374 1,197,374 Other Expenses 689, , , , ,989 Debt Service 459, , , , ,554 Capital Outlays 3,683,787 6,500 6, , ,500 Total Expenditures $ 37,366,349 $ 32,372,427 $ 32,622,427 $ 32,552,427 $ 32,802,427 Increase (Decrease) in Fund Balance $ (1,031,651) $ (573,678) $ (823,678) $ (753,678) $ (1,003,678)

35 QUESTIONS FROM BOARD OF TRUSTEES GISD Mission Statement Greenville Independent School District prepares, inspires, and empowers students in a safe and nurturing environment to become responsible citizens who successfully compete in a global society.