Carroll County Public Schools FY 2018 Operating Budget Work Session May 3, 2017 1
2 FY 2018 Operating Budget
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
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
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
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
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
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
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
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
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
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
Prescription Rebates Through a competitive bid process, we moved to Aetna for prescription drugs in 2015. Rebates are significantly higher. We now have enough experience with Aetna prescription rebates to incorporate an additional $1.9 million into our budget. 13
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 $2,012,400 1.11% 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 $552,959 0.43% CCPS Fund Balance (Capital Lease) $0 $992,243 $992,243 - Other $3,815,927 $5,715,199 $1,899,272 49.77% 14 Total $316,364,594 $322,821,468 $6,456,874 2.04%
Balanced Budget Non- Restricted FY 2017 FY 2018 $ Change from FY 2017 % Change from FY 2017 Revenues $316,364,594 $322,821,468 $6,456,874 2.04% Expenditures $316,364,594 $322,821,468 $6,456,874 2.04% Balance $0 $0 $0-15
16 Underfunded Capital Items
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 Proposed 5 Year Funding Plan
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
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. 2019 $190.4 $3.5 1.9% 2020 $192.2 $1.8 0.9% 2021 $200.9 $8.7 4.5% 2022 $208.6 $7.7 3.8% Dollars in millions Fiscal Year BOE Request 2 (C) 2018 $186.9 Annual $ Inc. (D) Annual % Inc. 2019 $196.2 $9.3 5.0% 2020 $206.0 $9.8 5.0% 2021 $216.3 $10.3 5.0% 2022 $227.1 $10.8 5.0% 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
Request for 5-Year Funding Plan Comparison of Proposed & Previous Requests 21 Fiscal Year Previous BOE Request 1 $ Inc. % Inc. 2018 $203.4 2019 $217.2 $13.8 6.8% 2020 $232.1 $14.9 6.9% 2021 $247.4 $15.3 6.6% 2022 n/a n/a n/a Dollars in millions Fiscal Year 2018 $186.9 Proposed BOE Request 2 $ Inc. % Inc. 2019 $196.2 $9.4 5.0% 2020 $206.0 $9.8 5.0% 2021 $216.3 $10.3 5.0% 2022 $227.1 $10.8 5.0% 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 Questions