FY16 Budget Community Forum. May 6, :30 to 8:00 PM

Transcription

1 FY16 Budget Community Forum May 6, :30 to 8:00 PM

2 Agenda Introductions School Finance Fundamentals History of State-Imposed Reductions Budget Options Implemented FY10 to FY15 FY16 Budget Development & Approved Options Future School Funding Outlook M&O Override Committee

3 School Finance Fundamentals In the State of Arizona, school budgets are established by limits determined via formulas based on the number of students that are served. Average Daily Membership (ADM) or the number of students enrolled Weighted Factors Eligible transported students Local Support Budget Limit 10% voter approved M&O override

4 School Finance Fundamentals History of DVUSD State Formula Per Pupil Funding $3, DVUSD State Funding Per Weighted Student $3, $3, $3, $3, $3, $3, $3,

5 School Finance Fundamentals FY14 Auditor General Spending Report for Deer Valley Unified School District - $/Student ley Unified School District Deer Valley Financial Metrics as $/Student Comp AVG Per Student $ 6,511 $ 6,597 $ 6,718 6,859 7,016 7,045 Classroom Dollars $ 3,838 $ 3,868 $ 3,919 4,017 4,099 4,114 Non-Classroom Dollars Administration $ 571 $ 593 $ Plant Operations $ 796 $ 763 $ Food Service $ 297 $ 299 $ Transportation $ 318 $ 322 $ Student Support $ 439 $ 463 $ Instructional Support $ 252 $ 289 $ Other Non-Classroom Subtotal $ 2,673 $ 2,729 $ 2,799 2,842 2,917 2,931 State Average 2014 = $7,578 National Average 2012 = $10,667

6 Peer Group: Very large unified and union high school districts in cities and suburbs School Classroom Finance Fundamentals Dollar Percentage FY14 Auditor General Spending Report for Deer Valley Unified School District Statewide % 53.8% Peer Group % 56.6% Deer Valley USD FY14 Gilbert USD 61.2% Chandler USD 61.1% Deer Valley USD 58.3% Peoria USD 57.9% Paradise Valley USD 57.7% Mesa USD 57.1% Dysart USD 55.2% Phoenix UHSD 54.7% Scottsdale USD 54.5% Tucson USD 48.7%

7 History of State-Imposed Reductions Reduction % of Allocation % of Budget (RCL) Annual Total Cumulative Total Soft Capital Reduction $ 823, % 0.5% $ 823, Soft Capital Reduction $ 5,719, % 3.5% $ 5,719,561 $ 6,543, Soft Capital Reduction (HB2008) $ 6,585, % 5.3% Shortfall Reduction (SB1612) $ 1,792, Shortfall Reduction (SB1612) $ 2,056,430 $ 10,434,390 $ 16,977, Soft Capital Reduction (SB1617) $ 7,556, % 5.8% Capital Outlay Reduction (SB1612) $ 1,460, % Capital Outlay Reduction (SB1617) $ 2,585,169 $ 11,601,638 $ 28,579, Soft Capital Reduction (SB1529) $ 6,134, % 6.1% Capital Outlay Reduction (SB1529) $ 3,372, % $ 9,507,225 $ 38,086, District Additional Assistance $ 9,427, % 6.0% $ 9,427,496 $ 47,514, District Additional Assistance $ 9,643, % 6.2% $ 9,643,864 $ 57,157,905 Does not include unrealized inflationary increases nor Building Renewal reductions

8 Budget Options Implemented FY10 to FY15

9 Budget Option Guiding Principles Primary focus of organization is service to students Resources should be targeted toward Strategic Plan goals Maintaining student-teacher ratios shall be a priority All staff contribute to the objectives of the organization Employee preservation is a priority

10 Budget Options Implemented FY10 to FY15 FY10 DVUSD Highlight of Budget Changes Total Only funded professional growth for salary change (teachers rec'd decrease from CSF) $ (216,700) ASRS decreased from 9.45% to 9.4% $ 60,000 District Administration Reduce 2.2 Directors, 2.5 Managers & 2.0 Mentors at the District Office $ (294,000) District Classified Includes reduction of FTE in the following departments: IS&T, Facilities, Purchasing/Warehouse, HR, AP, Transportation & Ed. Services = 24 FTE $ (816,000) Assistant Principals Raise K 6 & K 8 qualifying to 850 for.5 FTE and 1,000 for 1 FTE = 3.5 FTE $ (283,000) Classified School Staff Reduce 7 FTE at K 6/K 8, 4 FTE at Middle Schools & 5 FTE at High Schools = 16 FTE $ (384,000) Librarians Replace all certified librarians with an aide in all schools except High Schools $ (1,200,000) Sp. Ed. Staff Reduce 3.5 intervention specialists, 2.5 consultants, 2.0 coordinators $ (400,000) TOA Reduce the Teacher on Assignment by.5 FTE at 3 qualifying High Schools $ (90,000) 5% District and 5% School Budget Reductions $ (399,500) Special Education Contracting Reduction $ 300,000 Transportation Savings due to opening of Northern Services Center $ 350,000 Soft Capital Plan Reduction (includes CIT Capital) $ (5,700,000)

11 Budget Options Implemented FY10 to FY15 FY11 DVUSD Highlight of Budget Changes Total Only funded professional growth for salary change (teachers rec'd decrease from CSF) $ (140,000) Edujob one time payment to staff (an average of 2.34%) $ (3,200,000) State Retirement increased from 9.4% to 9.85% $ (540,600) Reduction of 67.7 FTE Teachers (56 due to loss of full day KG) $ (3,500,000) Reduction of 22.5 FTE Classified (19.5 due to loss of full day KG) $ (617,000) Health Insurance Increase by 5.5% $ (1,072,500) Workers Compensation increased by $100,000 $ (100,000) Utilities decreased by $500,000 due to conservation efforts $ 500,000 Soft Capital Plan Additional Reduction $ (900,000)

12 Budget Options Implemented FY10 to FY15 FY12 DVUSD Highlight of Budget Changes Total Provided professional growth and a salary offset of 1.55% for all staff that contribute to ASRS $ (2,000,000) State Retirement adjusted from 9.85 to 10.74% $ Reduction of 47.5 FTE Teachers (due to student reductions) $ (2,467,500) Reduce Contingency Staff from 12.0 FTE to 4.0 FTE inc. above Reduction of District Administration $ 100,000 Health Insurance increase by 3% $ (600,000) Utilities were decreased by an additional $1,200,000 due to conservation efforts $ 1,200,000 Use of Cash Balances and Prepays to offset reductions $ 4,800,000 Reduction of Capital Allocation (25% cut to School Capital Allocation plus District Allocation cut) $ (500,000) Soft Capital Plan Additional Reduction $ (1,200,000)

13 Budget Options Implemented FY10 to FY15 FY13 DVUSD Highlight of Budget Changes Total Only funded professional growth for salary change (teachers rec'd increase from CSF) $ (117,500) State Retirement increased from 10.74% to 11.14% $ (446,000) New Alternative Contribution Rate included as a benefit cost $ (565,000) Increase of 15.4 FTE Teachers (due to staffing special programs) $ 787,500 Reduction of 6 FTE Classified Staff $ (162,000) Workers compensation contribution was increased by $500,000 $ 500,000 Health/Dental Insurance rates remain unchanged (use of self insured health insurance balance to offset increase), new employees offered HSA as base plan $ (710,000) Retirees with continuing Health/Dental coverage moved to ASRS plan with DVUSD reimbursing the retirees for the cost $ (1,500,000) District Budgets were reduced by $250,000 $ (250,000) Continue use of Cash Balances and Prepays to offset reductions $ (4,300,000) Reduction of School Capital Allocation (25% cut to School Capital Allocation) $ (750,000) Continue Capital Reductions

14 Budget Options Implemented FY10 to FY15 FY14 DVUSD Highlight of Budget Changes Total Funded professional growth $ (103,500) 1% Salary Increase (in addition, teachers rec'd increase from CSF) $ (1,330,000) State Retirement increased from 11.14% to 11.54% $ (450,000) Additional State Inflation Revenue $ 2,465,000 MOWR Funding $ 1,130,000 Increase of 23 FTE Academic Facilitators $ (1,207,500) Staffing Tighter (29 FTE) $ 1,500,000 Benefit Changes +500 on deductibles, +$5/+$10 on PCP/Spec., + $150 ER, +$25 on Urgent Care,+$0/+$5/+$10 on Rx, reduce HSA contribution to match PPO cost ($700 on $1750 plan) $ 700, B Special Pay/Medical Trust Plan (FICA Savings) $ 90,000 Continue use of Cash Balances and Prepays to offset reductions $ 3,500,000 Additional Use of Cash Accounts $ 1,000,000 Utilize VSEBT Reserves $ 500,000 Continue Capital Reductions

15 Budget Options Implemented FY10 to FY15 FY15 DVUSD Highlight of Budget Changes Total Funded professional growth $ (74,900) One time payment (SSF) for salary change (teachers rec'd increase from CSF) $ (1,373,000) State Retirement increased from 11.54% to 11.6% $ (70,000) Reinstate full day KG $ (2,400,000) Change Sp. Ed paras to teachers $ Vista Peak $ (500,000) Sp. Ed Tuition Savings $ 500,000 VSEBT Reserves $ 1,700,000 No Change to Benefit Plans $ Utility Rate Increase $ (180,000) VSIT Increase $ (93,000) Use of Community Education Cash $ 1,000,000 Use Half of 5 Cash Funds vs One Third $ 900,000 Change in Carryforward $ 300,000 Use of Additional Community Education Cash $ 500,000 Use of non renewing District funds $ 310,000 Capital Delay of BGHS Tech Rich $ 400,000 More (All) Capital in M&O (requires no allocation to schools and departments with an approval process for capital emergencies) $ 1,000,000

16 FY16 Budget Development & Approved Options

17 FY16 Budget Development Process Negotiation Solution Team (NST) Comprised of employee representatives and district leadership meets monthly to review budget information FY16 Interests Classified: salaries & benefits, maintain jobs Administrative: salary increase, maintain benefits, additional student supports Certified: salary theme

18 FY16 Budget Development Process March 19 th FY16 Budget Update Assumptions (highlights): all State-imposed reductions are continued District Additional Assistance reduced another ($4.4) M Teacher Experience Index (TEI) reduced $537,000 Student (ADM) increase included State provides 1.6% inflationary funding Structural deficit impact = ($4.54) million student open enrollment numbers included Benefit Committee recommendation included Professional Growth included FY16 budget deficit projected to be ($4.4) million

19 Impacts to FY16 Budget as of March 19, 2015 Revenue Changes ADM Increase $ 1,310,000 $ 2,570,000 Inflation Prior Year Adjustment $ 2,580,000 Cash Balances $ (1,500,000) Community Education Cash Balance $ (1,500,000) Carryforward (1,541,000) Updated Group A and Group B counts still needed TEI (537,000) TRCL included Current carryforward amount still needed Current Year DAA Change $ (415,000) Change to DAA (Gov. Budget) (4,428,000) $ as of Feb M&O report $ to $ intent language to be taken out of non-instruction Revenue Subtotal $ (3,461,000) = decreased revenue

20 Impacts to FY16 Budget (con t) as of March 19, 2015 Expenditure Changes Class loads are at plus 1 FY15 Gold Book to Proposed FY16 $ (531,610) Capital still needed eschools increase $ (270,000) VSIT increase $ (100,000) Additional Campus Front Office Support $ (49,750) Health insurance changes Beneft Committee recommends use of VSEBT reserves Expense Subtotal $ (951,360) = increased expenses FY16 Budget Projection $ (4,412,360) 1% salary increase for all employees = $ (1,342,000)

21 District District Reorganization FTE Amount District Office Reductions Certified Administrator 5 $ (488,740) Director 1 $ (107,300) Manager 2 $ (129,650) Coordinator 2 $ (162,880) Specialist 1 $ (54,500) District Office Additions Certified Administrator 0 $ 36,000 Manager 1 $ 83,300 Coordinator 1 $ 87,500 District Office Classified Reductions 4.4 $ (157,700) District Office Subtotal $ (893,970) Certified Not In Classroom Reductions 15.4 $ (808,500) Certified Not In Classroom Additions 7 $ 367,500 Certified Subtotal $ (441,000) Classified Reductions 36 $ (1,037,600) Classified Subtotal $ (1,037,600) Total $ (2,372,570)

22 FY16 Budget Balancing Options March 19th Deficit $ 4,412,360 FY16 Option 2 Budget Options Approved April 28, 2015 Priority Description Amount Cumulative Total 1 District Reorganization $ (2,372,500) 1.2 Increased Carryforward $ (900,000) $ (3,272,500) 2 Use of VSEBT Reserves ($1.3 M for rate increase + $1.5 M) * $ (1,500,000) $ (4,772,500) 4 Utilize Community Education Cash Account * $ (500,000) $ (5,272,500) 5 Utilize School Cash Accounts/School Carryforward * $ (500,000) $ (5,772,500) 13 Increase Parking Fees at High Schools from $40 to $100/year $ (102,000) $ (5,874,500) 1.1 Not reduce 22.5 FTE custodians (+627K) $ 627,000 (5,247,500) 3 Implement Athletic Participation Fee ($500K) $ (500,000) (5,747,500) Comments $ no change to night differential $ w hardship provision 6 Reduce remaining Academic Facilitators (5.6 FTE $294K) $ $ (5,747,500) 7 Non Personnel District Reductions ($100K) $ $ (5,747,500) 10 Change Class Size +1 in grades 7th & 8th ($420K) $ $ (5,747,500) challenge due to timing of staffing 11 Change Class Size +1 in grades 9th 12th ($735K) changed to 1 FTE at each high $ $ (5,747,500) * = adds to structural deficit 1% Salary Increase for all employees $ 1,342,000 Note one time payment in FY15 Budget Balance (w/ Items 1, 1.2, 2, 4, 5, 13, 1.1, 3) $ 6,860 + = deficit/()= surplus

23 FY16 Budget Balancing Options Impact on Classroom Spending District Reorganization Expected to decrease administrative expenses and some instructional support expenses Increased Carryforward Use of VSEBT Reserves Utilize Community Education Cash Balance Utilize School Cash Balances/School Carryforward Increase Student Parking Fees Not Reduce Custodial Staff Implement Athletic Participation Fee Expected to have no change as these options increase revenue or keep the status quo so that additional reductions do not need to be considered

24 FY16 Budget Balancing OptionsFY16 M&O Budget-Balancing Options District Reorganization $(2,372,500) Defined: A reduction of 66.8 FTE: 5 Certified Administrators, 1 Director, NST 2 Managers, List of Options 2 Coordinators, April 6, Specialist, 4.4 District Office Classified Reductions, 15.4 Certified Not In Classroom Reductions, and 36 Classified Reductions. Adds back 9 FTE: 1 Manager, 1 Coordinator, 7 Certified Not In Classroom Additions. Benefits: Reduces administrative costs, expected to be an ongoing savings. Drawbacks: Less support for various functions of the District. Changes custodial model by reducing FTE at sites. Increased Carryforward $(900,000) Defined: Utilize unspent budget capacity from FY15 in FY16. Student growth earned in FY15 can be used to increase the carryforward amount. Benefits: Does not require a reduction to implement. Drawbacks: Can be considered to add to our structural deficit. Use of VSEBT Reserves ($1.3 M for rate increase + $1.5 M) $(1,500,000) Defined: Reduce the self insurance contribution to VSEBT by an additional $1.5 million. This is in addition to the $1.3 million of VSEBT reserves already established to offset the FY16 rate increase (for a total use of VSEBT reserves of $2.8 M). As of June 2014 the balance was about $11 million with a minimum balance set at $6 million. Benefits: Provides for an offset of an ongoing cost that is not a reduction. Drawbacks: Adds to our structural deficit.

25 FY16 Budget Balancing OptionsFY16 M&O Budget-Balancing Options Utilize Community Education Cash Account * $(500,000) Defined: Use of Community Education cash balance to offset cost. Community NST List of Education Options cash April balance 6, 2015 is expected to be around $1 million as of June Benefits: Provides for an offset for ongoing costs that is not a reduction. Drawbacks: Adds to our structural deficit, depletes Community Education reserves. Utilize School Cash Accounts/School Carryforward $(500,000) Defined: Use of school cash accounts and/or use of prior years carry forward to reduce school supply and materials allocations. Benefits: Balances currently exist in carry forward amounts and school cash accounts: FY15 school M&O carryforward = $1 million, Facility Rental = $1 million, Tax Credit = $1 million, Auxiliary Operations = $800K, Gifts & Donations = $550K (as of June 2014). Drawbacks: Adds to our structural deficit, some of these funds are restricted, and reduces the amount available for schools to use. This area was reduced in FY10 and FY13. Increase Parking Fees at High Schools from $40 to $100/year $(102,000) Defined: Increase the annual student parking fee from $40 to $100. Current parking fees are less than what comparable districts charge. Benefits: Provides a revenue source to offset parking related costs. Drawbacks: Current law restricts the use of these funds, may be cost prohibitive to some families.

26 FY16 Budget Balancing OptionsFY16 M&O Budget-Balancing Options Not Reduce 22.5 FTE Custodial Staff $627,000 NST List of Options April 6, 2015 Defined: As part of the District Reorganization that option includes reducing 22.5 FTE of custodial staffing throughout the District. This option does not make the reduction of custodians but can only be considered if the District Reorganization is implemented. Benefits: Keeps staffing levels and cleaning schedules unchanged. Drawbacks: Does not provide the full savings of the District Reorganization option. Implement Athletic Participation Fee $(500,000) $(400,000) Defined: Administrative recommendation proposed to reduce the amount to an expected revenue of $400,000 and offsetting the difference by implementing the Non Personnel District Reduction option. Charge a mandatory athletic participation fee for athletes to pay of $100/high school sport with a cap of $200 per student and a family cap of $300. Middle school athletes would pay $60/sport with a cap of $120/student and the same family cap of $300. Benefits: Would be eligible for extracurricular tax credit, would help to offset the cost of providing these programs on an ongoing basis Drawbacks: May discourage students from participating, may reduce the funds available for programs as there is at least a perceived limit as to how much parents will pay to support these programs.

27 FY16 Budget Balancing OptionsFY16 M&O Budget-Balancing Options Non Personnel District Reductions $(100,000) Defined: A reduction of supply and material allocations. NST List of Options April 6, 2015 Benefits: Reduces administrative costs, may be an ongoing savings. Drawbacks: fewer resources to support functions of the organization, department allocations do not carry over from year to year, District Office Reorganization may warrant some increases to supply and material allocations to offset loss of FTE. This area was reduced in FY10, FY12, and FY13. Reduce Remaining Academic Facilitators (5.6 FTE) $(294,000) Defined: Eliminates all the Academic Facilitators. Benefits: Reduction of an ongoing expense, would help fund full day kindergarten. Drawbacks: Eliminates this support to K 3 teachers/schools, would require Move on When Reading funding to be reallocated. Change Class Size (+1) K 6 $(892,500) / 7 8 $(420,000) Defined: Increase the class load for each grade level by one additional student. Benefits: Provides an ongoing reduction of a continuing cost. Drawbacks: Creates an extra work load on those affected teachers, in a competitive market place class size is a determinate parents use to make a school choice.

28 FY16 Budget Balancing OptionsFY16 M&O Budget-Balancing Options Reduce High School Teaching Staff by 1 FTE NST List of Options April $(262,500) 6, 2015 Defined: Decrease the teaching FTE by 1 at each of the five high schools. Benefits: Provides an ongoing reduction of a continuing cost. Drawbacks: Creates an extra work load on those affected teachers, in a competitive market place class size is a determinate parents use to make a school choice.

29 Future School Funding Outlook

30 Future School Funding Outlook Deer Valley Unified School District Financial Priorities (in no particular order): A salary increase for all employees Restoring capital funding Reducing structural deficit

31 M&O Override Committee

32 M&O Override Committee The Deer Valley Unified School District enjoys a 10% voter approve Maintenance & Operations (M&O) override. The M&O Override was last approved in 2010 and these overrides have to renewed every 5 years or they are phased out. The M&O Override funding provides more than $15.6 million in funding for the District. Even with this funding, the amount of money the District receives is below the State average and below our comparable district average. Committee Charge: To determine the need to continue the Maintenance & Operation (M&O) Override and consider other election-related funding options for the district. Committee Membership Looking for parents, community members and staff to meet a couple of times in May of 2015 to develop a recommendation regarding the M&O Override election in November of 2015 to be presented to the Governing Board.

33 Community Input Budget411 Website Survey Input