Community Conversations

HISD’s Budget & Legislative Overview

Overview of HISD

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Number of Students 202,773

Number of Schools 298

Percent Economically Disadvantaged 79.25%

Percent Bilingual 20.6%

Percent ESL 8.21%

Percent LEP 30.7%

Percent At Risk 63.2%

Percent Special Education 8.14%

Percent Gifted/Talented 13.35%

Overview of HISD

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Accountability Ratings Exemplary Recognized Acceptable Unacceptable

84

12147

12

Number of Staff Teachers Principals Assistant Principals Other Campus Staff School Support Personnel

12,829255381

4,65410,850

4

HISD

Where does HISD gets its funding? ?

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HISD Major Funding Sources Include:

General Operating Fund $1,659,507,068 Special Revenue Funds $ 341,016,845 (local,

state and federal grants)

Debt Service Fund $ 208,618,298 (principal/interest on bonds)

Capital Projects Funds $ 211,186,408 (current year spend on bond projects)

Food Service Funds $ 111,834,796 (National School Lunch and Breakfast Programs)

Where does HISD get its funding?

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HISDWhere does HISD get its General Operating Fund dollars? ?

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HISD

Where does HISD get its General Fund dollars?

Local Property Tax Revenue • Current Taxes• Delinquent Taxes

State Revenue

• Foundation School Program• Available School Fund

Other Local Revenue • Investment Income• Rentals• Insurance Recovery• Sale of Bonds• Transfers from other funds• Crossing guard reimbursement from City of Houston

Federal Revenue • Indirect Costs• Army, Air Force, Navy reimbursement

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HISD

Local Taxes vs. State Formula Funding

66.5%

73.4%79.5% 80.4%

84.3% 85.4% 87.2%

78.5%

66.1% 73.0% 72.9%67.2%

33.5%26.6%

20.5% 19.6%15.7% 14.6% 12.8%

21.5%

33.9%27.0% 27.1%

32.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Local State

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HISD

Harris County School District Tax Rates

1.1567001.2936801.3005441.3021301.3250001.3400001.3500001.3600001.3600001.3700001.3945001.3967001.3996281.4100001.4300001.4300001.4400001.4600001.4700001.5134001.5200001.526600

1.00 1.20 1.40 1.60

HoustonChannelview

AldineGoose Creek

La PorteAlief

PasadenaClear Creek

TomballNorth Forest

Spring BranchDeer ParkAverage*

KleinCy-Fair

SheldonCrosbySpring

HuffmanGalena Park

HumbleKaty

FY2011 Adopted Harris County District Tax Rates(2010 Tax Year)

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HISD

Where are the dollars currently budgeted? ?

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HISD

General Fund: $1,659,507,068*

Resource Allocation FundingResource Allocation Funding$815,625,474 (49.15%)$815,625,474 (49.15%)

SchoolAllocations

(60%)

DistrictwideAccounts

(26%)

Support Services(14%)

*Includes State Fiscal Stabilization Funds (SFSF) accounted for in a Special Revenue fund

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HISD

Direct School Budget Funding(49.15%)

Special Education Funding (5.97%)

Utilities and Other Campus Allocations(3.37%)

Magnet Funds (1%)

School Allocations: $987,249,706

NOTE: Chart represents 60% of General Fund.

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HISD

Operations--Police, Transportation, Custodial, Maintenance

(8.25%)

Human Resources: (.35%)

Communications: (.29%)

Chief of Staff: (.11%)

Superintendent: (.03%)

Audit: (.08%)

Legal Counsel: (.06%)

Other: (.05%)

Support Services: $234,335,577

Academics(3.15%)

Finance and Technology

(2.15%)

NOTE: Chart represents 14% of General Fund.

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HISD

District-wide Accounts: 26% of General Fund

District-wide Benefits - $184.9m• Medicare • TRS On-Behalf • Health Insurance • TRS Payroll Fees • Workers’ Comp • Retiree Benefits • Unemployment • Social Security

•District-wide Operations - $154.5m• Debt Service • Appraisal District Fees •Tax Increment Reinvestment Zone (TIRZ) • Property, Liability & Auto Insurance • Utilities • Other (Legal Fees, Audit Fees, Election Costs)

•District-wide Other - $98.5m• Stipends • Capital Outlay • ASPIRE • District programs

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HISD

Operational Cost Increases

The costs associated with the day-to-day operations of the school district have increased tremendously.

2004(in millions)

2010(in millions)

Increase: 2004 to 2010 (in millions)

Utilities $27.17 $57.98 $30.81

Property Insurance $4.10 $6.69 $2.59

Health Insurance $48.14 $65.43 $17.3

Transportation $28.06 $34.29 $6.23

Security $12.20 $16.74 $4.55

Maintenance $86.95 $94.24 $7.29

TRS Payroll Taxes $14.57 $23.65 $9.08

TOTAL INCREASE $77.85

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HISD

General Fund Budget 2003 to 2011

Total budget increases $587,393,913

Total budget decreases $389,287,937

Net budget increase $198,105,976

Average Per Year $22,011,775

Average Percent Range $1.34% to 1.67%

Appropriations adjusted to exclude capital, chapter 41 recapture and on-time fund balance contributions

$1.00 expended in 2003 now requires $1.19 for the same expenditure.

Average inflation rate was 2.5%

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HISD State Comptroller’s revenue estimate projects a state shortfall of $28.6 billion

Statewide property value projections estimate a decrease in overall values

TEA shows increased cost of the Foundation School Program of $5.7 billion, plus replacing $3.25 billion in stimulus funds

Texas Senate Finance and House Appropriations Chairs have stated that education funding will be cut this session in order to balance the budget but don’t know by how much or how the cuts will be made

What We Know Right Now

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HISD Potential cuts and even elimination of some grant programs by the Texas Education Agency needed to balance the state budget, which will reduce services to district students

Pre-Kindergarten Funding ($4.8m) Teacher Incentive Funding ($13.6m) Student Success Initiative—academic support for students failing

TAKS. ($2m) Optional Extended Year Funding ($1.1m)

A portion of all school districts’ budgets are currently funded through the federal stimulus funds, which will expire at the end of the 2010–2011 fiscal year

What We Know Right Now

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HISD Health insurance costs are still trending upward and will require a budget increase in 2011–2012

Utility costs are expected to increase due to the Renew Houston drainage ordinance

Gasoline prices are rising Title I funding offers less opportunities for

district initiatives due to required set-asides

What We Know Right Now

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HISD By law, HISD must adopt a budget by June 30, 2011

It takes 7–9 months to complete a review of the

district’s budgets and priorities

Budget must be prepared with an anticipated

shortfall that will have to be adjusted in spring or

summer 2011

Superintendent’s Cabinet is meeting to discuss

budget process, potential issues,

and how to engage schools and communities

Potential Issues for HISD

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HISD Develop a budget that potentially cuts the funds necessary to balance the budget.

Review of all central-office departmental budgets and organization charts

Review of business operations (custodial, police, transportation) to look at how services are provided and if there are alternatives to current service models

Review of district-wide activities for possible cost reductions

Modeling of cuts to school allocations and impact on schools

Human resource implications from cuts Review of district-wide educational program models

to check alignment against strategic plan as well as results from prior years

Budget Review Process

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HISD Deputy Chief Academic Officer Chief Financial Officer Chief Schools Officers (3) Chief Operating Officer Chief Communications Officer Chief of Staff Chief Human Resources Officer Chief Officer of Major Projects General Counsel Assistant Superintendent for Academic Services General Manager, Budget and Financial Planning Controller

Superintendent’s Budget Committee

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HISD Role of committee is for input and feedback Committee Participation:

– Principals (10)

• High Schools (2)

• Middle Schools (2)

• Elementary Schools (6)

– Public Engagement Committee (2)

– Superintendent’s Parent Advisory Committee (2)

– District Advisory Committee (2)

The Budget Advisory Committee will meet once in November, once in December, and twice monthly starting in January.

Budget Advisory Committee

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HISD Board Member Constituent Meetings District Advisory Committee Superintendent’s Public Engagement Committee Superintendent’s Parent Advisory Committee Principal Advisory Committee Consultation Groups Hattie Mae White Educational Support Center

Employees Monthly Principal Meetings

Other Regular Meetings

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HISD Ensure that the Legislature maintains the current level of funding to school districts that accounts for student population growth and also covers ARRA funds used to replace Foundation School Funding during the 2009 legislative session.

Preserve funding for full-day prekindergarten and extended-year programs.

Maintain the funding available through the District Awards for Teacher Excellence (DATE) grant.

Allow the district to receive school start date waivers for 20% of its schools.

Allow middle-grade students who are completing core courses for high-school credit to be assessed with the relevant end-of-course examination(s).

HISD Legislative Agenda

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HISD HISD partnering with Cypress-Fairbanks, Spring and Spring

Branch ISDs on a Legislative 101 training for parents and community members on January 27 at 8:30 a.m. at HMW

How districts can work together on legislative issues important to Houston children will be discussed

Contact the offices of the Governor, Lt. Governor and legislators to let them know that funding for public education should be preserved and why it is important for your child’s success. Go to: http://www.houstonisd.org/portal/site/GovernmentalRelations and click on Legislative Contacts

How Can You Help During the Legislative Session?

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HISD For parents, work with your school’s PTA/PTO or Parents for Public Schools

Sign up to receive twitter messages from Houston ISD’s Government Relations Department for legislative updates:

www.twitter.com/HoustonISDGov

How Can You Help During the Legislative Session?

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HISD

Q & A Budget Suggestions/Comments—Send to:

CFOcomments@houstonisd.org