Budget Workshop: Status of Budget Preparation June 14, 2010
Our budget must reflect our values Alberto Carvalho
# of Schools # of Students 33 5k 1920 YEAR
# of Schools # of Students 33 5k 1920 51 15k 1945 YEAR
# of Schools # of Students 195 202k 33 5k 1920 61 15k 1945 1965 YEAR
# of Schools # of Students 272 285k 327 367k 195 202k 33 5k 1920 61 15k 1945 1965 1990 YEAR 2002
2001 2009 # of Students 358,968 313,425 14% # of Schools 327 353 8% # of Teachers 18,834 20,728 9% Art & Music Teachers 6% World Lang Teachers 2% Gifted Teachers 15%
FEFP Breakout by Source State Local 66% 64% 62% 61% 57% 53% 53% 61% 34% 36% 38% 39% 43% 47% 47% 39%
2007-08 Final General Fund Budget $3.1B $4M in contingency Four year projected revenue drop of a half-billion dollars 2011-12 General Fund Budget $2.6B
Our budget must reflect our values Guiding Principles: 1. Improve student achievement 2. Protect the classroom 3. Protect the workforce 4. Maintain the fiscal viability of the District
# of Teacher RIF 0 1 Includes ARRA Stabilization Central Administration 32% $3.1B Total Number of Positions 11% $2.8B 1 2007-08 Operating Budget Contingency Funds 1800% Average Teacher Salary 2% 2009-10 Operating Budget
Drastic Teacher Layoffs Predicted L.A. Unified Sends Layoff Notices to 5,200 Teachers School Districts Ax Teachers, Blame State for Financial Meltdown Broward Schools to Lay Off 568 Teachers
2010-11 Budget: The Bottom Line Student Achievement Above All No teacher RIF Protects most vulnerable members of the workforce No cut to art & music Further reduces class sizes Improves credit rating No tax increase
FTE Trend 370,000 365,000 360,000 355,000 350,000 345,000 340,000 335,000 330,000 325,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 M-DCPS TOTAL CHARTER ONLY
CLAIM: Education Held Harmless REALITY: FTE Increase $28M Collection Rate $12M FRS Increase $15M
Revenue Summary 2009-10 Adopted 2010-11 Tentative Variance Federal Sources (traditional) $ 17.3 $ 15.1 $ (2.2) State Sources $ 987.0 $ 1,169.5 $ 182.5 Local Sources $ 1,424.2 $ 1,288.4 $ (135.8) Other $ 267.7 $ 237.3 $ (30.4) TOTAL REVENUE $ 2,696.2 $ 2,710.3 $ 13.9 American Recovery & Reinvestment Act State Stabilization Funds IDEA & Title I (flexible portion) $ 125.8 $ 47.0 $ 121.8 $ 24.4 $ (4.0) $ (22.6) FUNDS AVAILABLE TO BALANCE $ 2,827.9 $ 2,836.3 $ (12.7) Subtracting: 1) FTE Increase and 2) Collection Rate Change $ (52.7)
Millage Summary 2009-10 2010-11 Change STATE MANDATED MILLAGE Required Local Effort 5.450 5.441 (0.009) LOCALLY LEVIED MILLAGE Discretionary Operating 0.548 0.698 0.150 Capital Outlay 1.700 1.550 (0.150) Total Locally Levied Millage 2.248 2.248 0.000 VOTED MILLAGE Debt Service Millage 0.297 0.354 0.057 TOTAL MILLAGE 7.995 8.043 0.048 M-DCPS is not advocating supplemental tax increase that the majority of districts state-wide levied in 2009-10
Major Cost Increases Item Detail Increase Textbooks Salaries Charters Class Size Reserves Due to the six-year textbook adoption cycle, new Math textbooks must be purchased. The increase in cost reflects a 70% reduction in initial price. Salary adjustment accounts for annualizing the cost of mid-year agreements with unions. Teacher increases accounts for over 80% of the total. Increase in projected Charter School FTE leads to increase payments of $28M; total cost increase though should reflect net of reduced costs. The increase in the Class Size categorical is $14M; all revenue received will be spent on full compliance..15 Capital millage shift of $29M reserved for protection of employees and programs. Tax Roll Yield reserve lowered to collection rate change of 96% only. Assume 95% collections. $ 11M $ 36M $ 10M $ 14M $ 21M
Major Saving Initiatives Non-School Budgets Item Detail Decrease Millage Transfer Central Office Transferred.15 mills from Capital to GF, now up to.20 of allowable.25 transfer. Put entire amount in Reserves; a move strongly endorsed by credit rating agencies All non-school locations were tasked with streamlining and cutting all non-essential functions. The average cut was 10% and will result in a RIF that will occur in July Bell Schedule By altering the bell schedule in a minimal way, route planning and hiring is more efficient. No RIF of drivers Maintenance Projects Brought $26M of contracted maintenance projects inhouse $ (29M) $ (8M) $ (4M) $ (26M)
Major Saving Initiatives School Budgets Item Detail Decrease Senior High Programs Gifted Historical and out-dated programs phased out $ (7M) Changed the ratios for gifted teacher allocations from 15.41 to class size ratios, still keeping the formulas more generous than Basic Supplements Changed the ratio extra-period supplements are converted to teachers from 5 to 8 $ (7M) $ (8M) Magnets Aligned allocations to match district-wide demand $ (2M) ESE ESOL Bring ESE allocations closer in line with Statesupported levels; still exceed that level by over $150M Eliminates supplemental allocations above and beyond standard allocation by making programmatic shift to self-contained classes at elementary level $ (18M) $ (6M)
Appropriation Summary Function 2010-11 Budget (in millions) % of Budget Instruction: $ 1,835.2 67.7% School Admin & Students Svcs: $ 225.3 8.3% Curriculum Support: $ 20.6 0.7% Transportation: $ 72.0 2.7% Custodial & Maintenance Svcs: $ 349.7 12.9% Business Services: $ 94.8 3.5% Central Administration: $ 12.3 0.4% Reserves & Transfers: $ 100.5 3.7% GRAND TOTAL $ 2,710.3 100% % Change from 2009-10 0% -1% -4% -10% -4% -5% 3% 2% 41% *Does not include ARRA Stimulus funds. ARRA Funds will be used on same expenses as 2009-10. Declining revenue in these funds is offset by sun-setting expenditures.
$887M Positions Abated to Capital Fund 43% Facilities Maintenance Positions 2007-08 13% $521M Capital Construction Expenditures 2010-11 Growth in In-Sourced Project Work $26M Capital Construction Appropriations
Current Unmet Needs & Deferred Maintenance $2.1 Billion Work to be Performed $521M
Class Size Reduction: The Facts Compliance: Constitution State Responsibility Statutes District Responsibility Penalties: None Punitive November Referendum Scenario #1: Meet class size at school average with class level caps Scenario #2: Full implementation
Class Size Reduction: The History Capital Outlay General Fund M-DCPS portion of allocated funds: 5% M-DCPS portion of state s students:13% 2003-04 2009-10 Avg. Class Size 1 29.42 18.56 Cost = $1.5 Billion Net Class Size Revenue = $1.0 Billion Underfunded by $500 Million 1 Data from FLDOE Class Size Averages, Grades 4-8 2010-11 Shortfall $354M $82M $40M Amount FLDOE & State Board say is necessary to meet CSR statewide Amount allocated for CSR compliance by Florida Legislature Amount M-DCPS does not receive due to State under-allocation
Class Size Reduction: The Options Option #1: Option #2: Full compliance thru cuts Full compliance thru issuing of optional.25 mills Pros Compliance Current State estimate for cost of full compliance for M-DCPS is $40-50M Compliance Cons Large RIF Cuts in $ to schools Cuts to electives: Arts Music PE Bilingual Magnets Athletics Put further burden on struggling tax payers Stress community relations
Class Size Reduction: The Options Pros Cons Option #3: Comply at school average plus caps at class level Elective courses remain No increase in taxes Credit rating protected Workforce protected Fully expend CSR $ on compliance Expand virtual instruction to try and fully comply Referendum may fail District would face mid-year penalty Note: by indicating penalty $ will be returned with a plan for 2011-12 compliance, State is implying this is the path it expects districts to take
2010-11 Budget: The Bottom Line Student Achievement Above All No teacher RIF Protects most vulnerable members of the workforce No cut to art & music Further reduces class sizes Improves credit rating No tax increase