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Budget Basics Preparing for the 2011 NC General Assembly Session

Budget Basics Preparing for the 2011 NC General Assembly Session

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Page 1: Budget Basics Preparing for the 2011 NC General Assembly Session

Budget BasicsPreparing for the 2011 NC General

Assembly Session

Page 2: Budget Basics Preparing for the 2011 NC General Assembly Session

Situation Analysis

• NC budget shortfall of approximately$3.7 billion for the 2011-12 fiscal year.

• Cause: end of federal stabilization funds; end of some state taxes; end of nonrecurring cuts.

• Economic recovery continues to be slow.

Page 3: Budget Basics Preparing for the 2011 NC General Assembly Session

Situation Analysis

• Public school budgets have been cut for three consecutive years.

• K-12 public education is the largest share of the state’s budget, so it’s tough to reach reduction targets without cutting public schools.

Page 4: Budget Basics Preparing for the 2011 NC General Assembly Session

Situation Analysis

35%

25%

19%

11%

10%

% of NC Budget

Public SchoolsHealth & Human ServicesComm. College/Univ. SystemJustice & Public SafetyOther

Page 5: Budget Basics Preparing for the 2011 NC General Assembly Session

Trend over Time

Page 6: Budget Basics Preparing for the 2011 NC General Assembly Session

How NC Ranks

North Carolina ranks 45th inthe nation in per-pupil spending.

Page 7: Budget Basics Preparing for the 2011 NC General Assembly Session

Common Questions

• Why are schools always on the chopping block?

NC’s Public School Fund is the largest chunk of the state budget’s General Fund.

Page 8: Budget Basics Preparing for the 2011 NC General Assembly Session

Common Questions

• What about the lottery funds –won’t they help?

Lottery funds do help – but they make up only about 3.9 percent of the budget. And, they’re designated for specific purposes –K-3 teachers, More at Four, school construction and scholarships.

Page 9: Budget Basics Preparing for the 2011 NC General Assembly Session

Common Questions

• Can’t we just cut administration and leave teachers alone?

Eliminating all administration (NCDPI, central office staff, principals/assistant principals) would total $478 million –less than half of the possible $1 billionin targeted cuts.

Page 10: Budget Basics Preparing for the 2011 NC General Assembly Session

Common Questions

• Why not cut out testing? Wouldn’t that save a lot of money?

Cutting out all testing would save about$11 million - far short of our needed cuts. Also, remember, NC is required to do some testing under federal and state laws.

Page 11: Budget Basics Preparing for the 2011 NC General Assembly Session

Common Questions

• Won’t the federal Race to the Top funds help solve our budget problem?

Race to the Top is providing nearly $400 million over four years to North Carolina - but the funds are targeted for specific purposes and not for general use. Funds are a one-time allocation.

Page 12: Budget Basics Preparing for the 2011 NC General Assembly Session

What about KCS?

54%22%

16%

5%3%

Where do we get our funding?

StateLocal (Cabarrus & Rowan)FederalChild Nutrition Head Start

Total KCS Budget = $47.5 million

Page 13: Budget Basics Preparing for the 2011 NC General Assembly Session

What about KCS?

80%

11%

3%

Where does our money go?

PersonnelContracted ServicesSuppliesUtilities

6%

Page 14: Budget Basics Preparing for the 2011 NC General Assembly Session

KCS ARRA Funding(Stimulus)

•KCS will lose nearly $2.5 million in ARRA funding for 2011-2012.

•That equals 53.78 positions.

•We will be able to absorb some of those positions by using other funding. However, it is an extremely significant loss.

Page 15: Budget Basics Preparing for the 2011 NC General Assembly Session

How MIGHT state cuts affect KCS?

5% cut:

5% Reduction2011-2012 Estimated

Allotments Reduction +/-001 TEACHERS 250 positions 15 positions 235002 CENTRAL OFFICE $ 574,056 $ 28,703 $ 545,353 003 NON-INSTRUCTIONAL SUPPORT $ 1,417,211 $ 141,721 $ 1,275,490 005 SCHOOL BUILDING ADMIN 162 months 9 months $ 153 007 INSTRUCTIONAL SUPPORT 27 positions 3 positions $ 24 012 DRIVER TRAINING $ 96,522 $ - $ 96,522

013 VOC-MONTHS OF EMPLOYMENT 245 months 11 months $ 234 014 VOC-SUPPORT $ 67,481 $ 3,374 $ 64,107

015 SCHOOL TECHNOLOGY $ 34,783 $ 34,783 $ -

022 MENTORS $ 53,233 $ 53,233 $ - 024 Disadvantaged Student Supplemental Funding $ 284,598 $ - $ 284,598 027 TEACHER ASSISTANTS $ 2,069,125 $ 783,982 $ 1,285,143

028 STAFF DEVELOPMENT $ 52,594 $ 52,594 $ - 031 LOW WEALTH $ 249,814 $ - $ 249,814 032 EXCEPTIONAL CHILDREN $ 2,635,660 $ 89,612 $ 2,546,048 034 AIG $ 250,518 $ 12,526 $ 237,992 054 ESL $ 599,463 $ 59,946 $ 539,517 056 TRANSPORTATION $ 657,234 $ - $ 657,234 061 INSTRUCTIONAL SUPPLIES $ 304,242 $ 30,424 $ 273,818 069 AT-RISK $ 883,274 $ 88,327 $ 794,947 TEXTBOOKS $ 300,000 $ 30,000 $ 270,000

TOTAL $ 10,530,492 $ 2,541,430    

Page 16: Budget Basics Preparing for the 2011 NC General Assembly Session

How MIGHT state cuts affect KCS?

10% cut:

10% Reduction2011-2012 Estimated

Allotments Reduction +/-001 TEACHERS 250 positions 19 positions 231

002 CENTRAL OFFICE $ 574,056 $ 45,924 $ 528,132

003 NON-INSTRUCTIONAL SUPPORT $ 1,417,211 $ 141,721 $ 1,275,490

005 SCHOOL BUILDING ADMIN 162 months 14 months $ 148

007 INSTRUCTIONAL SUPPORT 27 positions 3 positions $ 24

012 DRIVER TRAINING $ 96,522 $ - $ 96,522

013 VOC-MONTHS OF EMPLOYMENT 245 months 16 months $ 229

014 VOC-SUPPORT $ 67,481 $ 3,374 $ 64,107

015 SCHOOL TECHNOLOGY $ 34,783 $ 34,783 $ -

022 MENTORS $ 53,233 $ 53,233 $ -

024 DSSF $ 284,598 $ - $ 284,598 027 TEACHER ASSISTANTS $ 2,069,125 $ 1,488,774 $ 580,351

028 STAFF DEVELOPMENT $ 52,594 $ 52,594 $ -

031 LOW WEALTH $ 249,814 $ - $ 249,814 032 EXCEPTIONAL CHILDREN $ 2,635,660 $ 89,612 $ 2,546,048

034 AIG $ 250,518 $ 25,052 $ 225,466

054 ESL $ 599,463 $ 59,946 $ 539,517

056 TRANSPORTATION $ 657,234 $ 52,579 $ 604,655

061 INSTRUCTIONAL SUPPLIES $ 304,242 $ 30,424 $ 273,818

069 AT-RISK $ 883,274 $ 88,327 $ 794,947

TEXTBOOKS $ 300,000 $ 75,000 $ 225,000

TOTAL $ 10,530,492 $ 3,654,595   

Page 17: Budget Basics Preparing for the 2011 NC General Assembly Session

IMPORTANT INFORMATION

•Legislative session is just beginning & budget outlook could change many times. •Possibilities being considered:

–No new taxes, and sunsetting taxes allowed to expire–Across the board pay cuts for state employees–Removing the 12% bonus for NBPTS teachers–Removing the 10% bonus for master’s degrees–Requiring state employees to pay part of their health insurance premiums

Page 18: Budget Basics Preparing for the 2011 NC General Assembly Session

Other important Info

•We have met personally with our Cabarrus/Rowan legislative delegation.

–They expect the legislature to provide maximum flexibility so school districts can maximize their limited funds.

•Cabarrus County has indicated we will receive at least the same funding as this year—NO cuts. That’s excellent news. •State tax collections are meeting targets so far, and December sales revenues were strong—more good news.

Page 19: Budget Basics Preparing for the 2011 NC General Assembly Session

Other important Info

•The Governor is scheduled to give her budget to the Legislature in mid-February. We also expect planning allotments from DPI in mid-February.• These will provide our first clues as to next year’s budget picture.•We have a Budget Task Force made up of representatives from all stakeholder groups. They are helping to inform our budget decisions.

Page 20: Budget Basics Preparing for the 2011 NC General Assembly Session

Our Promises:

•We will do everything we can to influence legislators to FUND SCHOOLS FIRST.•We will do all we can to protect jobs and the education of our children.•We will be honest with you and keep you informed every step of the way.•We will give you as many resources as possible to communicate effectively with legislators.

Page 21: Budget Basics Preparing for the 2011 NC General Assembly Session

Next Steps

• Determine how state and local reductions will affect your schools.

• Communicate the impact.• Stay informed through KCS, the news

media, DPI, and your associations. • Reach out to legislators and key

stakeholders.

Page 22: Budget Basics Preparing for the 2011 NC General Assembly Session

Next Steps

Become familiar with state-level strategic cut options that have been identified to limit classroom impact, and maintain necessary infrastructure.

www.kannapolis.k12.nc.us

Page 23: Budget Basics Preparing for the 2011 NC General Assembly Session

Questions

• If we cut personnel, who will make that decision and how will they decide?

• When will we know something about our jobs? (Timeline)

• Will my pay be cut? • Will my hours be reduced?• Where are we looking to make cuts

besides personnel?

Page 24: Budget Basics Preparing for the 2011 NC General Assembly Session

Questions

• If our budget is so bad, how can we afford the “extras” that we’ve been doing: Biotech Academy, 411Fit, etc.?

• Will class sizes increase?• Will we change the structure of how

teacher assistants are paid?