FY2015 Operating Budget

FY2015 Operating Budget Board of Education Roberta S. Wise, Chairman Maura H. Cook, Vice Chairman Jennifer S. Abell Patricia Bowie Michael Lukas Pamela A. Pedersen Georgia Benson, Student Member Charles County Public Schools Dr. Kimberly A. Hill, Ed. D Superintendent Paul T. Balides Assistant Superintendent for Finance and Business The Office of Finance and Business prepared the Charles County Public Schools Operating Budget. If there are questions regarding this document, please contact Paul T. Balides, Assistant Superintendent for Finance and Business, P.O. Box 2770, La Plata, MD 20646. 301-934-7350. The Charles County public school system does not discriminate on the basis of race, color, religion, national origin, sex, sexual orientation, age or disability in its programs, activities or employment practices. For inquiries, please contact Dr. Patricia Vaira, Title IX Coordinator and Section 504 Coordinator (students), or Pamela Murphy, Section 504 Coordinator (employees/adults), at Charles County Public Schools, Jesse L. Starkey Administration Building, P.O. Box 2770, La Plata, Maryland 20646; (301) 932-6610/870-3814. For special accommodations, call (301) 934-7230 or TDD 1-800-735-2258 two weeks prior to the event. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 1

TABLE OF CONTENTS TABLE OF CONTENTS... 2 ACTION ITEM FOR THE BOARD OF EDUCATION... 3 SUBJECT:... 3 OVERVIEW:... 3 IMPLICATIONS:... 3 STAKEHOLDERS INVOLVEMENT:... 3 RECOMMENDATION/FUTURE DIRECTION:... 3 PLANNING MODEL... 4 REVENUE INCREASES... 5 Total Additional County Funding... 5 State Funding... 5 Fund Balance Transfer... 5 Food Service Meal Price Increase... 5 COST INCREASES... 5 St. Charles High School Recurring Cost (Phase 1 of 2)... 5 Teachers' Pension (SB1301)... 6 Health Insurance... 6 Technology Loan... 6 Nurses Contract... 7 REDUCTIONS:... 7 Non recurring Reductions... 7 Temporary and Part time Employees... 7 Student Transportation... 7 Non Public Transportation... 7 After School Activity Buses... 7 Utilities and Other Contracts... 7 Teacher Substitutes... 7 St. Charles Position Cuts... 8 Athletic Trainers... 8 Professional Library Materials... 8 Restricted Funds... 8 Attachment: Operating Revenue... 9 Attachment: Operating Budget by Category and Object Code... 10 Attachment: Full-time Equivalent Staff... 11 G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 2

ACTION - FBA June 23, 2014 Attachments ACTION ITEM FOR THE BOARD OF EDUCATION SUBJECT: FY2015 Operating Budget Categories OVERVIEW: Attached is the FY2015 operating budget for approval by the Board of Education. This budget is based on the approved county funding and estimates for State and Federal revenues. In addition, funds include teachers pension obligations, health insurance, staff for St. Charles High School (Phase I), school nurses contract, and technology infrastructure. The budget does not include a step/level salary increase for employees. The budget is balanced via budget reductions related to student transportation, temporary positions, and eliminating contracts. The budget summaries and categories are attached. IMPLICATIONS: The FY2015 operating budget of $327.3 million reflects an increase of $5.3 million (1.7 percent) over FY2014. State funding increased $2.4 million (1.5 percent) and county funding increased $2.9 million (1.8 percent). The budget also requires a $3.2 million transfer from fund balance into the general fund. Revenue allocations are insufficient to fund mandatory operating costs. The expenditure shortfall is $5,543,000 requiring significant budget cuts detailed on page 4. In the Food Services program, breakfast and lunch prices will increase $0.10 to comply with federal price subsidy requirements. STAKEHOLDERS INVOLVEMENT: Board of Education, students, parents, teachers, staff, Charles County Commissioners, the Maryland State Department of Education (MSDE), and the Education Association of Charles County (EACC) and the American Federation of State, County and Municipal Employees (AFSCME) unions. The Board of Education has table agreements with both unions. RECOMMENDATION/FUTURE DIRECTION: That the Board of Education approves the categorical budget and submit it to the County Commissioners for categorical approval. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 3

PLANNING MODEL CHARLES COUNTY PUBLIC SCHOOLS FY2015 PLANNING MODEL DESCRIPTION FY2015 COST BASE REVENUE $ 322,000,000 REVENUE INCREASES: TOTAL ADDITIONAL COUNTY FUNDING 2,911,300 STATE FUNDING (MSDE Estimate May 2, 2014) 2,425,500 FUND BALANCE TRANSFER (Base Transfer Requirement $3.2 M ) - TOTAL REVENUE INCREASES: 5,336,800 TOTAL REVENUE 327,336,800 BASE EXPENDITURE $ 322,000,000 COST INCREASES: ST. CHARLES HIGH SCHOOL RECURRING COST (Phase One of Two) 7,700,900 TEACHERS' PENSION (SB1301) 1,394,100 HEALTH INSURANCE 1,000,000 TECHNOLOGY LOAN 575,000 NURSES' CONTRACT 210,400 TOTAL COST INCREASES: 10,880,400 TOTAL SHORTFALL (5,543,600) REDUCTIONS: NON-RECURRING REDUCTIONS (Summer Reading Academy, One-time Salary Award, and Technology) 2,000,000 TEMPORARY AND PART-TIME EMPLOYEES (Instructional Assistants, 31 FTE, Building Service Worker 25 FTE) 1,000,000 STUDENT TRANSPORTATION (Change School Start Times, Efficient Bus Routes, CCBOE Owned Buses) 700,000 NON-PUBLIC TRANSPORTATION (Eliminate 5 Dedicated Non-public Buses) 500,000 AFTER-SCHOOL ACTIVITY BUSES (Eliminate) 300,000 UTILITIES AND OTHER CONTRACTS (Building Temperatures and Copier Contract) 300,000 TEACHER SUBSTITUTES (Principal Request Portion) 250,000 ST. CHARLES POSITION CUTS (Instructional Assistants 3 FTE, Teachers 2 FTE) 200,000 ATHLETIC TRAINERS (Eliminate Contract) 200,000 PROFESSIONAL LIBRARY MATERIALS (Central Office Allocation) 93,600 TOTAL REDUCTIONS: 5,543,600 TOTAL EXPENDITURE 327,336,800 G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 4

REVENUE INCREASES Total Additional County Funding County funding requirements are subject to Maintenance of Effort (MOE) set forth in the Maryland Annotated Code Education Article 5-202. Full-time equivalent enrollments decreased from the previous fiscal year by 193.3 students, or.8 percent from last year. Funding include $652,700 mandated by the State of Maryland for Teacher s pension and $2,258,000 for general operations. Total county funding is $2,911,300. State Funding State revenues are based on changes in enrollment, county wealth, and free-and-reducedmeal enrollments. Charles County ranks 10th out of 24 counties for student enrollment and county wealth. The Maryland State Department of Education (MSDE) provided a preliminary draft of the Direct Major State Aid funding for FY2015 (as of May 2, 2014). Total funding for Charles County Public Schools increased from FY2014 in the amount of $2,425,507, or 1.5 percent. Fund Balance Transfer The $3,201,086 use of fund balance includes $2,300,000 recommended by the county government for St. Charles High School. Food Service Meal Price Increase The Healthy, Hunger-Free Kids Act of 2010 requires that the school system set meal prices equal to the Federal reimbursement rate for Free and Reduced Meals. In order to comply with the law, we are raising lunch prices by $0.10 cents. This price increase is also necessary to cover typical compensation and food increases and avoid general fund subsidies. COST INCREASES St. Charles High School Recurring Cost (Phase 1 of 2) St. Charles High School will open in August 2014. This request provides funds for firstyear operations with a projected enrollment of 1,000 students. Salaries are based on STEP/LEVEL 5 and include all employee benefits. The funds requested are net of transferred positions from other schools. Staffing is based on an eight-period school day and assumes an average class size of 25 students per class. Requested funds exclude operating budgets for food services and a school resource officer. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 5

St Charles High School Operating Budget Request Detail Total Fulltime Equivalent FY2015 AMOUNT FY2015 TRANSFERRED START UP Operating Budget Full time Equivalent AMOUNT AMOUNT Full time Equivalent AMOUNT 71 SALARIES & WAGES PRINCIPAL (Funded in FY2014) 0.0 0 0 0 0.0 0 VICE PRINCIPAL 3.0 374,568 2.0 243,212 0 1.0 131,356 SECRETARIES AND CLERKS 6.0 280,459 0 0 6.0 280,459 OTHER STAFF 2.0 111,069 0 0 2.0 111,069 BUILDING SERVICE PERSONNEL 11.0 485,296 0 0 11.0 485,296 LIBRARIAN 1.0 84,988 0 0 1.0 84,988 GUIDANCE COUNSELOR 3.0 253,992 3.0 253,992 0 0.0 0 PSYCHOLOGIST 1.0 109,734 0 0 1.0 109,734 STUDENT PERSONNEL WORKER 1.0 129,655 0 0 1.0 129,655 THERAPISTS 0.8 67,910 0 0 0.8 67,910 OTHER PROFESSIONAL STAFF 1.5 176,975 0 0 1.5 176,975 TEACHERS 72.5 5,360,644 39.0 2,830,623 0 33.5 2,530,021 INSTRUCTIONAL ASSISTANTS 13.0 464,018 0 0 13.0 464,018 VISION (Digital Classroom) 2.0 168,160 0 0 2.0 168,160 AQUATICS POOL MANAGER (Plus Hourly Wages) 1.0 118,800 0 0 1.0 118,800 SUBSTITUTE TEACHERS (DAILY, LONG TERM, STIPENDS) 0.0 443,500 0 0 0.0 443,500 71 SALARIES & WAGES Total 118.8 8,629,768 44.0 3,327,827 0 74.8 5,301,941 72 CONTRACTED SERVICES BUS OPERATIONS TO & FROM 0.0 900,000 0 0 0.0 900,000 BUS OPERATIONS ATHLETICS 0.0 77,500 0 0 0.0 77,500 REPAIRS BUILDING & GROUNDS 0.0 56,000 0 0 0.0 56,000 COPIER LEASE/MAINTENANCE CONTRACT 0.0 49,000 0 0 0.0 49,000 GAME OFFICIALS & CROWD CONTROL 0.0 35,900 0 0 0.0 35,900 REFUSE DISPOSAL 0.0 29,000 0 0 0.0 29,000 SOFTWARE MAINTENANCE 0.0 20,000 0 0 0.0 20,000 FIELD TRIPS 0.0 8,200 0 0 0.0 8,200 REPAIRS EQUIPMENT 0.0 2,200 0 0 0.0 2,200 72 CONTRACTED SERVICES Total 0.0 1,177,800 0.0 0 0 0.0 1,177,800 73 SUPPLIES & MATERIALS 0.0 5,180,014 0 4,881,655 0.0 298,359 74 OTHER CHARGES 0.0 922,800 0 0 0.0 922,800 79 TRANSFERS (Equipment funded out of CIP) 0.0 2,012,337 0 2,012,337 0 Grand Total 118.8 13,898,045 44.0 3,327,827 2,869,318 74.8 7,700,900 Teachers' Pension (SB1301) The Budget Reconciliation and Financing Act of 2012 mandates this budget request (Senate Bill 1301/House Bill 1801). The funding streams are in addition to the required MOE amount calculated under the Education Article 5-202. Health Insurance CCPS became self-insured in FY2008. Annual health care cost increases are due to claims and additional enrollments. There are additional costs associated with the Affordable Care Act that have not been fully determined. The insurance committee meets on a regular basis to review and discuss health care costs. Changes to benefits or employee contribution levels must be negotiated with the unions. Any major increase in costs due to the Affordable Care Act may require the additional use of fund balance during the year. Technology Loan In order to meet the demands of online testing, including the Partnership for Assessment of Readiness for College and Careers (PARCC), the school system obligated funds for a lease purchase agreement with CISCO Capital for wireless infrastructure. The terms of the CISCO, Capital lease purchase agreement is zero percent financing over five years. The total annual payment starting in August of 2014 is approximately $575,000. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 6

Nurses Contract Funds include the cost to continue contract services at 37 schools, an additional nurse for the new St. Charles High School, the purchase of additional EPI pens and a new position for a Community Health Nurse Supervisor. This supervisor will be responsible for quality assurance, additional nurse training, improving our routine school health care, and oversight of care plans for children with special health care needs. In addition, funds reflect the cost of a two percent Cost Of Living Adjustment (COLA), approved by the State of Maryland (Effective January 2015), and associated employee benefits. REDUCTIONS: Non recurring Reductions Funds reflect the reduction of State approved non-recurring cost items allocated by the county government in FY2014. These include one-time salary awards to eligible employees, Summer Reading Academy and technology equipment. Temporary and Part time Employees Reductions in part-time staff, including temporary building service workers and instructional assistants. Student Transportation The reduction is due to a change in school start times, efficient use of bus routes and owning special education buses. Non Public Transportation Eliminate approximately five bus routes dedicated to non-public schools. All non-public school students will be accommodated to the extent possible within existing public school buses. After School Activity Buses Eliminate all transportation associated with after-school programs. Utilities and Other Contracts The school system anticipates cost savings from the State s Energy Enhancement Initiative (EEI project), lowering, or increasing average building temperatures and copier lease contractual obligations. Teacher Substitutes Targeted savings is anticipated by reducing substitutes requested by the principals. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 7

St. Charles Position Cuts Reduce funds from the Phase one planning model for three instructional assistants and two teachers. Athletic Trainers The contractual obligations will terminate for the athletic trainers at all high schools. Professional Library Materials Reduce allocated funds for library materials. Restricted Funds The FY2015 restricted budget reflects a decrease of $948,773 over FY2014. The Race to the Top (RTTT) funds sunset on September 2014 ($741,000). In addition, funds for the E-rate program was reduced by $600,000 to reflect the purchase of the digital dome for St. Charles High School. The Maryland State Department of Education preliminary allocations in Federal entitlement grants ($392,227) offset the aforementioned reduced programs. Please note this information does not require Board of Education or County government approval. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 8

Attachment: Operating Revenue FISCAL YEAR 13 14 15 APPROVED ACTUALS APPROVED CHANGE DESCRIPTION GENERAL FUND 50 STATE REVENUES 5030 STATE NONPUBLIC SPEC ED 1,125,557 1,188,000 1,188,000 (0) 5031 STATE FOUNDATION PROGRAM 105,692,023 105,628,127 104,971,728 (656,399) 5032 STATE SPECIAL ED FORMULA 6,122,398 6,197,749 6,396,799 199,050 5033 STATE TRANSPORTATION 10,076,310 10,130,310 10,260,683 130,373 5036 STATE COMPENSATORY AID 25,657,787 27,535,278 28,928,798 1,393,520 5041 STATE OUT OF COUNTY 21,369 0 0 (0) 5044 STATE MEDICAID REVENUES 900,000 909,000 909,000 (0) 5045 STATE LIMITED ENGLISH 827,929 928,904 1,126,076 197,172 5046 STATE GUARANTEED TAX BASE 832,998 306,032 0 (306,032) 5048 STATE GCEI 3,498,074 3,512,428 3,501,859 (10,569) 5049 STATE HIGH ROAD 12,103 0 0 (0) 5050 STATE NET TAXABLE INCOME 0 863,706 2,342,091 1,478,385 50 STATE REVENUES Total 154,766,548 157,199,534 159,625,034 2,425,500 51 FEDERAL REVENUES 5153 FEDERAL IMPACT AID 413,120 300,000 388,000 88,000 5155 FEDERAL R.O.T.C. 485,700 430,000 430,000 (0) 5161 FEDERAL SP ED IMPACT AID 74,287 40,000 52,000 12,000 51 FEDERAL REVENUES Total 973,107 770,000 870,000 100,000 52 LOCAL REVENUES 5204 PRIORYR FD BALANCE TRANSF 0 3,201,086 3,201,086 (0) 5206 TUITION SUMMER YOUTH CAMP 23,060 30,000 26,000 (4,000) 5207 TUITION SUMMER SCHOOL 122,110 133,000 127,000 (6,000) 5208 TUITION OUT OF STATE 677,472 449,400 649,400 200,000 5209 TUITION PARENT PAYMENTS 70,057 104,100 74,100 (30,000) 5210 INTEREST INCOME 45,711 74,880 74,880 (0) 5211 RENT SCHOOL FACILITIES 247,235 410,100 210,100 (200,000) 5212 PAYROLL TRANSFERS 86,386 100,000 100,000 (0) 5215 SALE OF PROPERTY 3,255 10,000 10,000 (0) 5216 TUITION OTHER MD COUNTIES 339,600 290,000 313,600 23,600 5219 PRINT SHOP REVENUES 0 600 0 (600) 5221 MISCELLANEOUS REVENUE 25,167 35,000 35,000 (0) 5222 RESTITUTION 59,972 60,000 0 (60,000) 5226 VENDING COMMISSIONS 68,140 82,000 69,000 (13,000) 5227 TUITION NOVEL 22,120 30,000 30,000 (0) 5262 NET INSURANCE RECOVERY 35,428 10,000 0 (10,000) 52 LOCAL REVENUES Total 1,825,714 5,020,166 4,920,166 (100,000) 53 LOCAL COUNTY APPROPRIATIONS 5301 COUNTY APPROPRIATIONS 153,957,200 159,010,300 161,921,600 2,911,300 53 LOCAL COUNTY APPROPRIATIONS Total 153,957,200 159,010,300 161,921,600 2,911,300 GENERAL FUND Total 311,522,569 322,000,000 327,336,800 5,336,800 FOOD SERVICE* 11,600,891 11,133,026 12,785,000 1,651,974 RESTRICTED 16,818,180 16,932,579 15,983,806 (948,773) Grand Total 339,941,640 350,065,605 356,105,606 6,040,001 *Note: Includes a $0.10 price increase. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 9

Attachment: Operating Budget by Category and Object Code FISCAL YEAR 13 14 15 APPROVED ACTUALS APPROVED CATEGORY CHANGE GENERAL FUND 01 ADMINISTRATION 8,328,273 9,104,797 8,924,443 (180,354) 02 MID LEVEL ADMINISTRATION 20,419,406 21,739,238 21,321,466 (417,772) 03 INSTRUCTION 71 SALARIES & WAGES 122,449,789 126,408,982 127,767,960 1,358,978 73 SUPPLIES & MATERIALS 4,800,291 5,305,820 5,161,347 (144,473) OTHER INSTRUCTION COST 1,724,049 2,408,065 2,387,230 (20,835) 03 INSTRUCTION Total 128,974,128 134,122,866 135,316,536 1,193,670 04 SPECIAL EDUCATION 29,038,239 29,698,201 29,836,656 138,455 05 STUDENT PERSONNEL SERVICE 3,525,976 3,537,459 3,664,689 127,230 06 STUDENT HEALTH SERVICES 2,781,570 2,968,900 3,144,300 175,400 07 STUDENT TRANSPORTATION 25,131,337 25,437,111 24,231,116 (1,205,995) 08 OPERATION OF PLANT 24,897,744 25,361,706 25,586,511 224,805 09 MAINTENANCE OF PLANT 6,272,940 6,910,259 7,480,173 569,914 10 FIXED CHARGES 53,500,121 60,206,924 64,344,571 4,137,647 12 COMMUNITY SERVICE 722,660 734,757 734,757 0 13 CAPITAL OUTLAY 2,166,410 2,177,782 2,751,582 573,800 GENERAL FUND Total 305,758,805 322,000,000 327,336,800 5,336,800 FOOD SERVICE* 11,305,069 11,133,026 12,785,000 1,651,974 RESTRICTED 16,818,180 16,932,579 15,983,806 (948,773) Grand Total 333,882,054 350,065,605 356,105,606 6,040,001 FISCAL YEAR 13 14 15 APPROVED ACTUALS APPROVED OBJECT CODE CHANGE GENERAL FUND 71 SALARIES & WAGES 190,157,523 197,791,577 198,556,328 764,751 72 CONTRACTED SERVICES 36,095,962 39,170,607 38,371,749 (798,858) 73 SUPPLIES & MATERIALS 11,026,307 8,554,085 8,875,955 321,870 74 OTHER CHARGES 9,075,167 11,550,464 11,886,854 336,390 75 EQUIPMENT 2,408,151 1,516,050 2,091,050 575,000 78 FIXED CHARGES 53,500,121 60,206,924 64,344,571 4,137,647 79 TRANSFERS 3,495,572 3,210,294 3,210,294 0 GENERAL FUND Total 305,758,805 322,000,000 327,336,800 5,336,800 FOOD SERVICE* 11,305,069 11,133,026 12,785,000 1,651,974 RESTRICTED 16,818,180 16,932,579 15,983,806 (948,773) Grand Total 333,882,054 350,065,605 356,105,606 6,040,001 *Note: Includes a $0.10 price increase. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 10

Attachment: Full time Equivalent Staff CHARLES COUNTY PUBLIC SCHOOLS PERSONNEL SUMMARY FISCAL YEAR 13 14 15 CATEGORY ACTUAL FTE APPROVED FTE APPROVED FTE FTE CHANGE GENERAL FUND 01 ADMINISTRATION 84.5 80.5 80.5 0.0 02 MID LEVEL ADMINISTRATION 266.5 272.5 278.5 6.0 03 INSTRUCTION 1,965.2 1,902.5 1,938.9 36.4 04 SPECIAL EDUCATION 461.6 465.7 486.1 20.4 05 STUDENT PERSONNEL SERVICE 44.0 44.0 47.0 3.0 07 STUDENT TRANSPORTATION 8.0 10.0 18.0 8.0 08 OPERATION OF PLANT 229.8 231.3 249.3 18.0 09 MAINTENANCE OF PLANT 55.0 59.0 58.0 1.0 12 COMMUNITY SERVICE 0.0 0.0 0.0 0.0 13 CAPITAL OUTLAY 4.0 4.0 4.0 0.0 GENERAL FUND Total 3,118.6 3,069.5 3,160.3 90.8 FOOD SERVICE* 104.2 111.7 117.6 5.9 RESTRICTED 110.6 112.7 111.8 0.9 Grand Total 3,333.4 3,293.9 3,389.7 95.8 Note: School nurses (44 full time equivalent) are contracted with the Charles County Department of Health. G:\Budget\FY2015\BOOK\APPROVED\BOE_submission.docx 11