Carroll County Public Schools FY 2018 Operating Budget Work Session. May 3, 2017

Transcription

1 Carroll County Public Schools FY 2018 Operating Budget Work Session May 3,

2 2 FY 2018 Operating Budget

3 3 Expenditure Increases From FY17 Item $ Increase Negotiated Agreements $8,908,706 Align Special Education Budget to Projected Expenditures $1,391,625 Non-Public Placements $250,000 Retiree Health Insurance Subsidy $159,609 Substitute and Hourly Rates $150,000 Insurances (property, vehicle, general liability) $49,305 Other Miscellaneous $55,311 Total Increases From FY 2017 $10,964,556

4 Salaries & Salary Based Benefits Negotiated agreements in place for FY18 & 19 Approximate cost - $8.9 million for FY18 Substitute and Hourly Rates - $150k 4 2% increase for classified hourly and sub rates Brings professional hourly rate up to CCEA negotiated hourly rate Rate proposal comes to May 10 th BOE meeting

5 Special Education Alignment Special Education Expenditure Alignment Increase Hourly Assistants $928,047 Instructional Assistive Technology $246,259 Contracted Services $217,319 Total Special Education Expenditure Alignment $1,391,625 5

6 Expenditure Decreases From FY17 Item $ Decrease Hiring Turnover ($1,941,158) Utilities (gas, electricity, water & sewer) ($1,000,000) Eliminate 10 Teaching Positions ($650,000) Supplies & Materials ($375,913) Bus Contractors ($198,405) Medical, Dental, Employee Pensions, etc. ($185,705) Communications ($81,520) Other Expenditure Reductions ($74,981) Total Decreases From FY 2017 ($4,507,682) 6

7 Expenditure Summary Non-Restricted Expenditure Summary Amount FY 2017 Expenditure Budget $316,364,594 Net Change in Expenditures ($10,964,556 - $4,507,682) $6,456,874 FY 2018 Expenditure Budget $322,821,468 Expenditure Increase % 2.04% 7

8 County Revenue FY 2017 Budget: $181,852,000 FY 2018 Planned: $186,864,400 Planned Increase: $5,012,400 (2.76%) Builds $3M FY17 State Hold Harmless into base Plus additional $2,012,400 (1.11% increase) Source: Carroll County Government Recommended Budget - FY 18 8

9 State Revenue Update FY 2017 Budget: $127,696,667 FY 2018 Revised Draft: $128,249,626 Estimated Increase: $552,959 Estimated Increase: 0.43% Source: MSDE April 2017 Revised DRAFT Calculations Includes all ongoing, non-restricted State revenue and revenue from the declining enrollment grant (HB684) which provides additional funding to CCPS as follows: FY18 - $1.6 m, FY19 - $1.5 m, FY20 - $1.6 m 9

10 FY18 State Hold Harmless (HB684) Supplemental grant for fiscal years FY18 20 FY18 - $1.6 million FY19 - $1.5 million FY20 - $1.6 million Funding serves as a bridge to possible Kirwan Commission formula funding Plan is to incorporate into budget as ongoing 10

11 FY17 State Hold Harmless Funding In FY17 CCPS received $4 million of the onetime funding provided by the State for school systems with declining enrollment. The BOE in cooperation with the Board of County Commissioners decided to use $3 million in FY17 and defer $1 million to FY18. 11

12 Use of Fund Balance CCPS fund balance at June 30, 2016: $12.2 million (covered by BOE Policy DBDA) Assign $1.8 million of fund balance to cover 2 remaining annual capital lease payments for 2004 energy efficiency projects (15 yr. lease) Allows us to recognize the ongoing savings ($992,243) in FY18 instead of FY20 12

13 Prescription Rebates Through a competitive bid process, we moved to Aetna for prescription drugs in Rebates are significantly higher. We now have enough experience with Aetna prescription rebates to incorporate an additional $1.9 million into our budget. 13

14 Revenue Summary Source FY 2017 Preliminary FY 2018 $ Change from FY17 % Change from FY17 County (FY18 - $186,864,400 Total) $181,852,000 $183,864,400 $2,012, % County (FY17 Hold Harmless in base) $0 $3,000,000 $3,000,000 - FY17 Hold Harmless $3,000,000 $0 ($3,000,000) (100.00%) Deferred FY17 Hold Harmless $0 $1,000,000 $1,000,000 - State Formula (includes HB684 funds) $127,696,667 $128,249,626 $552, % CCPS Fund Balance (Capital Lease) $0 $992,243 $992,243 - Other $3,815,927 $5,715,199 $1,899, % 14 Total $316,364,594 $322,821,468 $6,456, %

15 Balanced Budget Non- Restricted FY 2017 FY 2018 $ Change from FY 2017 % Change from FY 2017 Revenues $316,364,594 $322,821,468 $6,456, % Expenditures $316,364,594 $322,821,468 $6,456, % Balance $0 $0 $0-15

16 16 Underfunded Capital Items

17 Underfunded Capital Items We propose including a transfer of CCPS fund balance to the CIP fund in the FY18 Operating Budget to address the following underfunded CIP projects: Technology Improvements - $1,350,000 School Security Improvements - $1,000,000 Infrastructure Renewal - $1,000,000 17

18 18 Proposed 5 Year Funding Plan

19 Request for 5 Year Funding Plan Anticipated FY19 needs: Negotiated salary agreements: $9 million Inflationary cost increases: $3 million Loss of State revenue: $1.5 million Annual needs FY20 and beyond: 19 Continued need to cover salary improvements, inflationary cost increases, and declining State revenue will likely exceed $10 million per year

20 Request for 5-Year Funding Plan Comparison of Proposed Request & County Plan Fiscal Year 20 Current County Plan 1 (A) 2018 $186.9 Annual $ Inc. (B) Annual % Inc $190.4 $ % 2020 $192.2 $ % 2021 $200.9 $ % 2022 $208.6 $ % Dollars in millions Fiscal Year BOE Request 2 (C) 2018 $186.9 Annual $ Inc. (D) Annual % Inc $196.2 $ % 2020 $206.0 $ % 2021 $216.3 $ % 2022 $227.1 $ % Diff. Column (D B) 1. County revised plan as of April 2017 (includes $2 million additional in FY19) 2. Proposed BOE request from April 12, 2017 BOE meeting Diff. Column (C A) $5.8 $5.8 $8.0 $13.8 $1.6 $15.4 $3.1 $18.5

21 Request for 5-Year Funding Plan Comparison of Proposed & Previous Requests 21 Fiscal Year Previous BOE Request 1 $ Inc. % Inc $ $217.2 $ % 2020 $232.1 $ % 2021 $247.4 $ % 2022 n/a n/a n/a Dollars in millions Fiscal Year 2018 $186.9 Proposed BOE Request 2 $ Inc. % Inc $196.2 $ % 2020 $206.0 $ % 2021 $216.3 $ % 2022 $227.1 $ % 1. BOE Request from 2016 Combined Education Committee 2. Proposed BOE request from April 12, 2017 BOE meeting Difference $16.5 $21.0 $26.1 $31.1 n/a

22 22 Questions