Carroll County Public SchoolsAdoption of the FY 2018

Preliminary Operating Budget

February 8, 2017

1

Increases From FY 2017

2

Item $ Increase

Increase in Salary & Salary Based Benefits (4.47% increase) $8,858,706

Align Special Education Budget to Projected Expenditures $1,391,625

Non-Public Placements (8.33% increase) $250,000

Retiree Health Insurance Subsidy (3.17% increase) $159,609

Insurances (property, vehicle, general liability) (4.65% increase) $49,305

Capital Lease Financing (FY18 - $992,243; final payment FY19) $28,900

Other Miscellaneous $26,411

Total Increases From FY 2017 $10,764,556

Decreases From FY 2017

3

Item $ Decrease

Hiring Turnover (0.98% increase) ($1,941,158)

Utilities (gas, electricity, water & sewer) (14.14% decrease) ($1,000,000)

Supplies & Materials (3.78% decrease) ($375,913)

Bus Contractors (0.98% decrease) ($198,405)

Medical, Dental, Employee Pensions, etc. (0.36% decrease) ($185,705)

Communications (20.08% decrease) ($81,520)

Other Contracted Services (0.15% decrease) ($45,006)

Postage (15.23% decrease) ($19,975)

Annual Financial Audit Fees (11.76% decrease) ($10,000)

Total Decreases From FY 2017 ($3,857,682)

Special Education Alignment

4

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

Expenditure Summary

5

Non-Restricted Expenditure Summary Amount

FY 2017 Expenditure Budget $316,364,594

Net Change in Expenditures ($10,764,556 - $3,857,682) $6,906,874

Preliminary FY 2018 Expenditure Budget $323,271,468

Expenditure Increase % 2.18%

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 Adopted Operating & Capital Budget - FY 17

6

State Revenue Update

• FY 2017 Budget: $127,696,667

• FY 2018 Updated Estimate: $126,651,661

• Estimated Decrease: ($1,045,006)

• Estimated Decrease: (0.82%)

Includes all non-restricted, ongoing State revenue.

7

State Hold Harmless Funding

• In FY17 CCPS received $4 million of the one-time 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.

8

Proposed 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).

• This allows us to recognize the ongoing savings ($992,243) in FY18 instead of FY20.

9

Other Revenues

• Other revenues include in-kind for use of county owned property, facility rentals, pay to play fees, procurement card rebates, etc.

• These revenues make up approximately 1% of all revenues and are expected to remain flat in FY 2018.

10

Revenue Summary

11

Source FY 2017Preliminary

FY 2018$ Change from FY17

% Changefrom FY17

County (FY18 - $186,864,400 Total) $181,852,000 $183,864,400 $2,012,400 1.11%

County (State Hold Harmless) $0 $3,000,000 $3,000,000 -

State Hold Harmless $3,000,000 $0 ($3,000,000) (100.00%)

Deferred State Hold Harmless $0 $1,000,000 $1,000,000 -

State Formula $127,696,667 $126,651,661 ($1,045,006) (0.82%)

CCPS Fund Balance (Capital Lease) $0 $992,243 $992,243 -

Other $3,815,927 $3,815,927 $0 0.00%

Total $316,364,594 $319,324,231 $2,959,637 0.94%

12

Estimated FY 2018 Revenue/Expenditure Gap

Estimated Revenue/Expenditure Gap

13

EstimatedRevenue /

Expenditure Gap

FY 2017Preliminary FY

2018$ Change

from FY 2017

% Changefrom FY

2017

Revenues $316,364,594 $319,324,231 $2,959,637 0.94%

Expenditures $316,364,594 $323,271,468 $6,906,874 2.18%

Balance $0 ($3,947,237) ($3,947,237) -

County Revenue Request

• FY 2017 Budget: $181,852,000

• FY 2018 Requested: $190,811,636

• Requested Increase: $8,959,636 (4.93%)

– Builds $3M FY17 State Hold Harmless into base

– Plus additional $5,959,636 (3.28% increase)

– $3,947,237 over current plan

14

15

Repurposed Positions

Repurposed Positions • 15 classroom teaching positions to be repurposed with

declining enrollment

• Priority Order:– Behavior Support Specialists

– Special Education Resource Teachers

– Math Resource Teachers

– Teachers for Gifted & Talented Students

– Career & Technology Teachers (additional revenue needed for student transportation, classroom equipment, professional development, & CIP impact)

16