The Budget.financeandbudget.mpls.k12.mn.us/uploads/budget_book_fiscal_2013… · The state of Minnesota uses a weighted student formula, providing different funding for students at

June 11, 2012

Compiled by the Finance Department and Office of Communications

The Budget. For the 2012-2013 fiscal and school year.

Minneapolis Public Schools

Special School District No. 1

Board of Education Alberto Monserrate , Chair

Jenny Arneson, Vice Chair

Richard Mammen , Clerk

Hussein Samatar , Treasurer

Carla Bates , Director

Jill Davis , Director

Kim Ellison, Director

Rebecca Gagnon, Director

Superintendent of Schools Bernadeia H. Johnson, Ed. D.

www.mpls.k12.mn.us

Table of Contents

Letter from the Superintendent ................................................................................................................... 3

District Overview............................................................................................................................................ 4

Our Students – Enrollment Projections ..................................................................................................... 5-7

Our Staff – Our Facilities ............................................................................................................................ 8-9

Establishing the 2012-13 Budget .............................................................................................................. 10-14

General Fund ................................................................................................................................................ 15

General Fund – Revenue Details ............................................................................................................. 16-17

Categorical Revenue .................................................................................................................................... 18

School and Department Allocations ....................................................................................................... 19-21

General Fund Expenditures by Program ................................................................................................ 22-23

General Fund – Expenditure Details by Object ........................................................................................... 24

Referendum 2012-2013 ................................................................................................................................. 25

Integration Plan 2012-2013 ........................................................................................................................... 26

Title I Allocations 2012-2013 ......................................................................................................................... 27

Community Services .................................................................................................................................... 28

Food Services ............................................................................................................................................... 29

Capital Projects ............................................................................................................................................ 30

Debt Service ................................................................................................................................................. 31

Minimum Debt Payment Schedule ............................................................................................................. 32

3

June 2012 Dear MPS partners and friends,

The budget plan we submit for the 2012-2013 school year is balanced and invests heavily in our strategic priorities, as we continue working to ensure that all students graduate from a Minneapolis high school ready for college and a career, prepared to excel in the real world. Our core strategies include raising expectations and rigor, transforming school leadership, strengthening teaching and exploring innovating models to accelerate student achievement.

Minneapolis Public Schools has a more diverse, more mobile and more complex body of students than most school districts in Minnesota. We consider that diversity to be one of our greatest strengths. We believe our urban educational experience gives young people an edge in the competitive global arena. Yet this diversity also creates challenges and requires a commitment to closing the achievement gap. For the first time in six years, MPS changed the trajectory of the achievement gap, narrowing it slightly between students of color and white students. This is a reflection of the hard work of teachers, students and administration, but there is still work to do.

We must continue to invest in our schools and our teachers – ultimately, their success is tied to the success of our students. The school district has increased its total allocations to schools. We are making a set of strategic investments that directly touch classrooms to improve outcomes for our students, including:

Supporting quality teaching by building a robust teacher evaluation system to give teachers more useful feedback on performance

Promoting great teaching and learning through focused instruction, including Response to Intervention, to engage students in the classroom

Funding English as a Second Language teachers and additional supports for English Learners

Funding reading and math specialists to ensure students grasp the fundamental skills needed early in their educational paths

Providing additional support to the schools that need it most

Investing in instructional leadership development because strong school leadership is critical to enhancing student achievement

Maintaining class size targets to give our students the time and attention they need and deserve

This is the time to make even better use of our resources. Guided by our strategic plan, our efforts are beginning to show positive results in the most critical areas of need. We are eager to move forward and focus on the core of our work – providing high quality educational experiences for all students. It is paramount that we give taxpayers value for the funds that we receive. We are moving in the right direction, but we still must work to achieve financial sustainability.

In addition to investing more resources directly into our schools, we are working to right-size the school district. Allocations to some departments have remained the same, some have been decreased and some have been increased. Right-sizing includes making investments in infrastructure and support systems to assure effective and efficient operations. Those investments include data systems, building instructional leadership capacity, senior leadership development, strategic planning and project management.

Finally, the balanced budget relies heavily on the use of our fund balance. Unfortunately, we are using one time funds to address ongoing operational costs. As we begin planning for future years, we must continue our efforts to right size to increase efficiency and effectiveness so that we can continue to sharpen our focus on strategic priorities.

We work to educate and care for over 33,000 students every day. MPS will continue to align the budget with the priorities outlined in the strategic plan, which directly impact our schools, classrooms and students. Ultimately, this will deliver the results we want for our students.

Sincerely,

Bernadeia H. Johnson, Ed.D. Superintendent of Schools

4

District Overview Minneapolis Public Schools promises an inspirational education experience in a safe, welcoming environment for all diverse learners to acquire the tools and skills necessary to confidently engage in the global community.

Our Mission: To ensure that all students learn. We support their growth into knowledgeable, skilled and confident

citizens capable of succeeding in their work, personal and family lives into the 21st century.

Our Vision: Every child college and career ready.

5

Our Students Minneapolis Public Schools is a major urban school district with a diverse and complex body of students. Our diverse

community is one of our greatest assets. We work to support over 33,000 students and their families from around

the world who call Minneapolis home. We believe that our urban educational experience prepares students to

become active, continuously learning and contributing global citizens. We are committed to assuring that every

student graduates college and career ready.

The following pages provide more information about the demographics of our school district and how they affect

the financial state of the Minneapolis Public Schools:

1. After nearly a decade of decline, enrollment has turned the corner and is projected to increase. Over the next

five years, intermediate grades are projected to have the greatest increase with declines in high school. In the

following five years, middle and high school grades are projected to increase the most.

The state of Minnesota uses a weighted student formula, providing different funding for students at different

grade levels. The current weights are:

Kindergarten = 0.612

Grades 1-3 = 1.115

Grades 4-6 = 1.06

Grades 7-12 = 1.3

Revenue is based on a formula using Weighted Average Daily Membership. The school district reports how many

students at each grade level are enrolled each day. Our revenue is based on the weighted average. The state

uses an “adjusted marginal cost pupil unit” (AMCPU) formula to soften the impact of declining enrollment.

6

2. Enrollment projections are based on birth rate in the city of Minneapolis and historical MPS enrollment trends:

30,000

31,000

32,000

33,000

34,000

35,000

36,000

37,000

2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22

Ten-Year Enrollment Projections

Ten-Year Enrollment Projections MINNEAPOLIS 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Kindergarten 3321.0 3261.0 3241.0 3218.0 3221.0 3142.0 3168.0 3168.0 3168.0 3321.0 3321.0

Grade 1 3147.0 3196.2 3133.6 3114.3 3092.2 3095.1 3019.2 3044.2 3044.2 3044.2 3191.2

Grade 2 3011.0 3087.6 3105.4 3044.6 3025.9 3004.4 3007.2 2933.5 2957.7 2957.7 2957.7

Grade 3 2680.0 2934.2 2967.9 2985.0 2926.5 2908.5 2887.9 2890.6 2819.7 2843.0 2843.0

Grade 4 2635.0 2624.7 2840.8 2873.4 2890.0 2833.3 2815.9 2796.0 2798.6 2729.9 2752.5

Grade 5 2536.0 2568.0 2493.2 2698.5 2729.5 2745.2 2691.4 2674.9 2655.9 2658.4 2593.2

Grade 6 2359.0 2422.6 2417.8 2347.4 2540.6 2569.8 2584.6 2533.9 2518.4 2500.5 2502.8

Grade 7 2208.0 2292.8 2344.4 2339.6 2271.5 2458.6 2486.7 2501.1 2452.1 2437.0 2419.7

Grade 8 2085.0 2194.0 2247.1 2297.6 2293.0 2226.2 2409.5 2437.2 2451.2 2403.2 2388.4

Grade 9 2184.0 2093.2 2180.2 2209.8 2261.7 2257.0 2188.4 2376.8 2405.2 2419.6 2370.2

Grade 10 2057.0 2112.6 2024.7 2108.9 2137.5 2187.8 2183.2 2116.8 2299.1 2326.5 2340.5

Grade 11 1987.0 1898.4 1949.7 1868.6 1946.3 1972.7 2019.1 2014.8 1953.5 2121.7 2147.1

Grade 12 2304.0 2242.9 2142.8 2200.7 2109.2 2196.9 2226.7 2279.0 2274.3 2205.1 2395.0

Total-Graph Below

32514.0 32928.1 33088.5 33306.4 33444.9 33597.5 33687.8 33766.7 33797.8 33968.0 34222.5

Change

414.1 160.4 217.9 138.5 152.6 90.3 78.9 31.1 170.2 254.5

% Change

1.27% 0.49% 0.66% 0.42% 0.46% 0.27% 0.23% 0.09% 0.50% 0.75%

7

3. In addition, MPS has a greater concentration of students eligible for free/reduced priced meals, students

receiving Special Education services and English Learners than the state as a whole. These students generate

additional revenue so that MPS may support them with the additional services they need.

Support Services Received by Students

MPS Minnesota

Students Eligible for Free/Reduced Priced Meals 65% 37%

Special Education Students 18% 15%

English Learners 23% 8%

0%

20%

40%

60%

80%

1986 1989 1992 1995 1998 2001 2004 2007 2010

Percentof Students Eligible for Free/Reduced Priced Meals

0

5

10

15

20

25

2003 2004 2005 2006 2007 2008 2009 2010 2011

Percent of Enrollment Students Served by Special Education

0%

5%

10%

15%

20%

25%

30%

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

% E

LL

Percent of MPS Students Eligible for English Learner Services

23% of MPS students are eligible for state revenue

for English learners.

27% of our students speak a home language other

than English.

8

Our Facilities

Resources that support the academic growth of our students and staff include the facilities that foster educational

and professional growth. MPS owns and operates 78 sites comprising 8.4 million square feet in FY13.

50 elementary schools

10 middle schools

7 high schools

3 other academic sites

8 non-academic sites

Twelve currently closed sites total approximately 640,000 square feet.

Howe will reopen in August 2013.

Five sites are leased and generating revenue: Franklin, Hamilton, Tuttle, Gordon and Lincoln.

807 NE Broadway (former Educational Services Center) and Webster will be vacated in the summer of 2012 and relocated to the Davis Center.

Four sites are closed and vacant: Cooper, Northrop, Willard and Shingle Creek (pending demolition).

MPS has sold four sites in the last four years:

Morris Park: 2/4/2009

Putnam: 6/8/2009

Holland: 6/30/2010

Lehmann: 12/23/2011

9

The Davis Center

MPS is excited to move its administrative service functions, currently located in four buildings across the city, to the

new John B. Davis Education and Service Center at 1250 West Broadway, which was formerly Broadway School and

MPS Student Placement Services. The Davis Center will be a community asset and a catalyst for growth, economic

development and stability on West Broadway. MPS is pleased to have partnered with the city of Minneapolis to

make this vision a reality.

Moving to the Davis Center will provide the school district with cost savings over the long term. The annual

operating costs of the Davis Center will be almost two million dollars less than the annual operating costs of the four

existing administrative buildings. Over thirty years, the building will provide MPS with savings totaling $20 million.

MPS is proud to announce that the Davis Center is in the process of obtaining the Leadership in Energy and

Environmental Design (LEED) Gold Certificate. LEED certification provides independent, third-party verification that

a building, home or community was designed and built using strategies aimed at achieving high performance in key

areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials

selection and indoor environmental quality. Energy-saving strategies are critical to maintaining LEED status.

The Davis Center will serve well over 1,000 students, staff, families and community members each day, housing Adult

Basic Education classes, the Northside Welcome Center for families enrolling their children in MPS, testing for

kindergarten and English Learner students, an assembly room for Board of Education meetings, professional

development classrooms for MPS staff, a conference center and community meeting space.

10

Establishing the 2012-2013 Budget The school district establishes planning assumptions that set the parameters for budget planning. The planning

assumptions and risks are defined below. The process for allocating general fund resources to schools and

departments is described in the section on the general fund.

Enrollment and Revenue Assumptions

In making revenue projections, MPS assumed the following:

Enrollment will increase by 414 students, with the greatest growth in first through third grades.

Continuation of current state law regarding funding.

Relatively flat federal funding.

Expenditure Assumptions

Benefits continue to be budgeted at 31 percent.

The amount budgeted for the average teacher salary remained $66,412. As enrollment stabilizes and

senior teachers retire, the average length of teachers’ years of service will decrease and the average

salary should remain flat, in spite of increases in the salary schedule.

Actual salaries were budgeted for positions and Minneapolis Association of Administrators and Consultants

(MAAC), Minneapolis Associations of Confidential Administrators (MACA), and Executive Leadership Team

(ELT) contracts. Average salaries were used for all other positions.

Risks

Retirements and new hires may not be enough to hold the average teacher salary constant.

Some labor contracts have not been settled and therefore labor costs are uncertain and likely to increase.

Department budgets are planned based on history and projected changes. Factors outside the school

district’s control will impact what happens (i.e. weather and fuel costs impacting utility rates).

The federal government may reduce federal education funds in January 2013 by up to 19 percent.

11

Priorities Reflected in the 2012-2013 Budget

The budget invests in the school district’s strategic priorities.

Investments in the classroom:

Supporting quality teaching by building a robust teacher evaluation system

Focused instruction, including Response to Intervention

English as a Second Language Teachers and other supports for English Learners

Reading and math specialists

Support for high priority, turnaround, priority and focus schools

Instructional leadership development

Maintain class size targets

Investments in infrastructure and support systems to assure effective and efficient operations:

Data systems

Building instructional leadership capacity

Senior leadership development

Strategic planning and project management

Contingency

Two million dollars is reserved to make adjustments to school staffing based on student enrollment in the fall.

An additional $1.4 million is reserved to manage variations in expenses as needs emerge.

12

Fund Balance

A fund balance allows the school district to manage risk and to respond to unforeseen circumstances without having

to borrow money. We assess risk to determine how large a fund balance MPS needs. If the fund balance is too large,

we might be unduly restricting services for today’s students. If the fund balance is too small, we will not be able to

manage risks.

In general, the more risk a school district faces, the larger its fund balance should be. Examples of current risks are:

Cuts in state aid;

State aid funding shifts;

Contract settlements; or

Unusually cold winter with higher than predicted utilities costs.

The fund balance can grow in two ways. The school district may plan to increase the fund balance when it is too low.

The fund balance also grows if revenue exceeds expenses. In recent years, MPS’ budgeted expenditures have been

higher than actual expenditures. Several factors can contribute to this type of variance, including changes in revenue

and expenditure for grants and inaccurate projections for average salaries and benefits.

Some funds are reserved by law in the fund balance and can only be used for specified purposes. The school district

assigns some funds for specific projects or services.

MPS policy states that the general fund unassigned/unreserved fund balance must be at least 8 percent of budgeted

expenses, with an annual review to assess risk and increase the targeted level of fund balance, if appropriate. The

amount of fund balance reserved for risk in the 2012-2013 budget is 12.5 percent. This provides enough funds for

about six weeks of operating expenses.

In the 2012-2013 budget, the school district is planning on using a significant amount of fund balance.

General Fund: $18,877,159

Food Service Fund: $93,134

Community Services: $0

Capital Projects: ($10,560,541)

Debt Service: $9,274,804

13

All Funds Summary

June 30,2011,

Audited Fund Balance

Forecasted FY 12

Fund Balance Change

Transfer

July 1, 2012 Projected

Fund Balance

FY 2013 Revenues

FY 2013 Expenditures

June 30, 2013,

Projected Fund

Balance

General Fund $129,022,584 $10,300,000 ($26,104,494) $113,218,090 $518,700,000 $537,577,159 $94,340,931

Food Service 3,701,306 -557,413

- 3,143,893 17,958,074 18,051,208 $3,050,759

Community Service

3,365,471 -1,234,806

- 2,130,665 22,630,025 22,630,025 $2,130,665

Capital Projects

56,260,431 -35,809,290 26,104,494 46,555,635 66,713,534 82,257,487 $31,011,682

Debt Service 39,050,617 -27,425,035 - 11,625,582 72,310,162 82,184,966 $1,750,778

Total All Funds

$231,400,409 ($54,726,544) 0 $176,673,865 $698,311,795 $742,700,845 $132,284,815

General Fund 72%

Food Service 2%

Community Service 3%

Capital Projects 11%

Debt Service 11%

2012-2013 Budget: All Funds

14

General Fund 72%

Food Service 2%



Debt Service

11%

All Funds Summary

2012-13 Budget: All Funds Summary

July 1, 2012, Projected

Fund Balance

FY 2013 Revenues

FY 2013 Expenditures

June 30, 2013, Projected

Fund Balance

General Fund $113,218,090 $518,700,000 $537,577,159 $ 94,340,931

Food Service $3,143,893 $17,958,074 $18,051,208 $3,050,759

Community Service $2,130,665 $22,630,025 $22,630,025 $2,130,665

Capital Projects $46,555,635 $66,713,534 $82,257,487 $31,011,682

Debt Service $ 11,625,582 $72,310,162 $82,184,966 $1,750,778

Total All Funds $176,673,865 $698,311,795 $$742,700,845 $132,284,815

15

General Fund

The general fund is the primary operating fund of the school district.

Major sources of revenue include property taxes, miscellaneous local revenues and state aid.

Expenditures include expenses of the school district such as salaries, supplies/materials, contractual services,

utilities, transportation and other operating expenses. Expenditures are accounted for by programs related to

administration, instruction, instructional support, maintenance, student support, transportation and

facility/operating costs.

Grant funds are also included within the general fund. These numbers account for the revenue and expenditure

activities related to specific grants and projects funded through federal and state sources or other outside agencies.

These numbers also include No Child Left Behind (NCLB)/Elementary and Secondary Education Act (ESEA) resources

as well as federal special education dollars.

General Fund: Summary

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

* Beginning Fund Balance $ 104,279,738 $ 129,022,584 $ 113,218,090

Annual Revenue 528,738,207 521,017,696 518,700,000

Total Revenue $ 633,017,945 $ 650,040,280 $ 631,918,090

Annual Expenditures $ 503,995,361 $525,409,146 $ 537,577,159

FY 12 Projected Fund Balance $14,691,450

Transfers - $26,104,494 -

* Ending Fund Balance $ 129,022,584 $ 113,218,090 $ 94,340,931

* Beginning and ending fund balances include unrestricted and restricted dollars.

Restricted Reserves $ 2,045,537 $ 22,000,000 $ 19,692,007

Unreserved/Unrestricted Fund Balance

$ 126,977,047 $ 91,218,090 $ 74,648,924

The transfer moves general fund fund balance to capital services/fund six to pay for capital improvements as part of

the already approved Planning for Changing Enrollment plan.

16

General Fund: Revenue Details Below is an explanation of how the school district gets its general fund dollars.

Examples

Local

Property taxes

There are two types of property tax levies. 1. Voter determined.

2. Levies set by the school board, within limits

set by the state legislature. In some instances, if the school board does not levy the full amount the legislature allows, the district also loses state aid.

Referendum

Safe schools levy Alternative facilities Health and Safety Integration

Misc.

Other sources of revenue; see examples. School-funded projects Gifts Rent Grants

State Aid

Basic Formula

The basic formula is an amount per pupil. The amount varies depending on the grade level of the students:

Kindergarteners: .612 Grades 1-3: 1.115 Grades 4-6: 1.06 Grades 7-12: 1.30

Categorical Aid

Categorical aid is aid for specific purposes and it comes in three types. 1. Based on the weighted pupil formula.

2. Based on student characteristics, such as

eligibility for ELL services or free/reduced priced meals.

3. Partial reimbursement for services.

Gifted and Talented Alternative Compensation Limited English Proficiency Compensatory Education Integration Aid

Special Education

Federal

Federal

The federal government provides funding to school districts that first flows through the state. The two largest are funds for the Elementary and Secondary Education Act (ESEA, currently known as NCLB) and the Individuals with Disabilities Act (IDEA), which provides funds for Special Education services.

ESEA: Title I Title II Title III IDEA

17

General Fund: Revenue Details

Revenue Details Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Local

Property Taxes $ 95,083,171 $ 101,983,972 $ 94,718,247 $ 102,081,427

Misc. 19,112,379 25,270,000 24,075,000 23,355,350

State Aids

Basic Formula $ 193,803,207 $ 189,128,736 $ 193,943,625 $ 195,329,539

Compensatory 49,124,274 50,318,035 52,452,230 53,273,862

ELL 4,893,300 4,687,200 4,275,800 4,465,000

Special Education 53,895,956 55,359,373 56,075,078 58,283,075

Other 8,024,776 31,384,633 45,331,216 31,702,411

Federal $ 83,589,462 70,606,258 50,146,500 50,209,336

Transfers 3,080,000 - - -

Total Revenue $ 510,606,525 $ 528,738,207 $ 521,017,696 $ 518,700,000

General Fund 72%

Food Service 2%



Debt Service 11%

General Fund: Revenue Details

18

Categorical Revenue: Summary Almost half of the school district’s general fund revenue is categorical aid, meaning that its use is restricted.

Categorical Revenue Summary

Referendum 65,714,000 Resources committed by the school district to class size, early literacy, technology, textbooks, science and math.

Integration Aid 16,800,000 Programs funded with integration aid must support the goals of closing the achievement gap and increasing racial interaction.

Compensatory Aid 53,381,487 State statute identifies 10 uses for compensatory aid funds. View here.

LEP 4,465,000 State Limited English Proficiency (LEP) funds must be used to support the education of English Learners.

Special Education 58,283,000 State and federal education dollars may only be used for special education services.

Federal/Grants 39,517,000 Federal funds must supplement, not supplant, state and local dollars. Restrictions on use depend on the specific grant.

Extended Time 10,805,000 Extended time dollars support credit recovery and academic support for qualifying students through after-school and summer school programs.

Non-Categorical Revenue 269,734,513

Total Revenue $518,700,000

Referendum 13%

Integration Aid 3%

Compensatory Aid 10%

LEP 1%

Special Education

11%

Federal/Grants 8%

Extended Time 2%

Non Categorical

Revenue 52%

2012-13 Categorical Revenue: $518.7 million

http://financeandbudget.mpls.k12.mn.us/uploads/fy_12_compensatory_education_guidelines_2.pdf

19

School Allocation Methodology The school district defines core expectations for each grade configuration and provides each school with a budget

allocation. The principal and site leadership team determine how to use the budget, based on core expectations and

specific student needs and program priorities at the individual schools.

View the allocations for each school. (Click on the “school allocations” tab at the bottom of the spreadsheet.)

Allocations were determined using the process described below.

Per pupil allocations are based on a weighted formula:

o K= 0.7

o Grades 1-8 = 1.0

o Grades 9-12 = 1.1

Class size referendum funds and basic per student allocations are distributed on a per pupil basis.

High school Career and Technical Education (CTE) allocations are taken out of the basic per student

allocation.

Compensatory education is the full amount allocated to each site, based on the state formula. The state

formula is based on students eligible for free/reduced priced meals as of October 1, 2011.

EL allocations are 73 percent of the amount needed to fund the English as a Second Language teachers

needed for the school, based on a ratio established by the Multilingual department. Schools are expected to

use compensatory revenue or their basic allocation to fund the remaining 27 percent.

Special Education Resource Teacher (SERT) allocations are 50 percent of the amount needed to fund the

SERTs needed at the school, based on the contract ratio of 1:23 as determined by the Special Education

Department. Schools are expected to use compensatory revenue or their basic allocation to fund the

remaining 50 percent.

MPS defined a minimum program for each grade configuration.

o Funds needed were determined by adding the amount needed to meet class size targets and

minimum program, EL and SERT requirements.

o Funds available were determined by adding the allocations for referendum class size, basic per

student, compensatory education, EL and SERTs.

o If funds available minus funds needed resulted in a negative number, two steps were taken:

Schools were given a minimal program adjustment to bring the difference to zero.

Schools were given an additional per pupil adjustment to provide a limited amount of

discretionary funds.

Additional funds were allocated for specific programs and services, such as Advancement Via Individual

Determination (AVID) and International Baccalaureate (IB).

Some services that were previously included in school budgets, such as Check and Connect or Math

Specialists, are being maintained but have been moved to department budgets in order to increase

efficiency and quality control. Service levels for the schools will remain constant.

http://financeandbudget.mpls.k12.mn.us/uploads/fy_12_grade_level_parameters_2.pdf

http://financeandbudget.mpls.k12.mn.us/uploads/copy_of_allocation_model_spreadsheet_12-13_for_web.xlsx

20

Department Allocations All departments were asked to develop strategic plans and then align their budgets to those plans. The goals were

to improve the effectiveness and efficiency of services, increase investment in strategic priorities and move towards

a sustainable structure.

To accomplish these goals, the school district began the process of right-sizing departments. Some department

budgets remained flat, others decreased and some increased. In all cases departments were asked to reevaluate

priorities and assure that all resources were aligned to the most important priorities.

View department allocations. (Click on the “department allocations” tab at the bottom of the spreadsheet.)

Relationship of School and Department Budgets The table on the next page displays the budget in four categories:

1) Direct allocations to schools;

2) Department allocations to schools, which are positions budgeted centrally but assigned to specific schools

(examples include principals and building engineers);

3) Department allocations supporting direct services to schools and students are direct services to schools and

students that are not associated with a specific staff person assigned to a specific school (examples include

athletics, transportation and student activities); and

4) Direct allocations to departments are the remaining funds for operational functions that serve the school

district as a whole (examples include Human Resources, the superintendent’s office and Payroll).

http://financeandbudget.mpls.k12.mn.us/uploads/copy_of_allocation_model_spreadsheet_12-13_for_web.xlsx

21

Relationship of School and Department Budgets

Direct Allocations to Schools FY 12 Budget FY 13 Budget Delta Percent Change

Percent of FY 13 Budget

Base costs 269,721,799 271,610,993 1,889,194 0.01

Grants 25,388,474 29,143,094 3,754,620 0.15

Total Direct Allocations to Schools 295,110,273 300,754,087 5,643,814 0.02 56%

Department Allocations assigned to specific schools (preliminary)

-

Base costs 71,683,105 69,482,224 (2,200,881) (0.03)

Grants - - -

Strategic Investments - 1,190,739 1,190,739

Total Department Allocations assigned to specific schools

71,683,105 70,672,963

(1,010,142) (0.01) 13%

Department Allocations with Direct Service to Schools and Students:

Base costs 36,034,580 32,032,528 (4,002,052) (0.11)

Grants

Strategic Investments

Total Department Allocations with Direct Service to Schools and Students:

36,034,580 32,032,528 (4,002,052) (0.11) 6%

Total Allocation to Schools 366,793,378 403,459,578 36,666,200 0.10 75%

Direct Allocations to Departments -

Base costs 78,593,364 74,224,379 (4,368,985)

(0.06)

Grants 43,978,678 25,187,075 (18,791,603) (0.43)

Strategic Investments 10,212,961 10,212,961

MERF 6,200,000 6,200,000

Total Direct Allocations to Departments

122,572,042 115,824,415 (6,747,627) (0.06) 22%

Future Allocations 18,293,166 18,293,166 3%

General Fund Expense Total 525,400,000 537,577,159 12,177,159 0.02 100%

22

General Fund Expenditures by Program Below is an explanation of the program codes that Minnesota school districts are required to use when reporting

their expenditures to the Minnesota Department of Education.

Program Definition Examples Administration School district and school administration and heads of

instructional areas Board of Education

Superintendent’s office

Associate superintendents

Principals

Directors of Teaching and Learning,

ELL, other instructional areas

District Support Services

Services provided centrally Human Resources

Finance

Communications

Technology support

Legal services

Research, Evaluation and Assessment

Regular Education All activities dealing directly with the teaching of students and the interaction between teachers and students

Pre-K-12 classroom teachers

Teacher and principal training and recruiting

English Language Learner services

Gifted and Talented

Student Activities

Athletics

Vocational Education

Courses and activities that develop the knowledge, skills, attitudes and behavioral characteristics for students seeking career exploration and employability

Career and Technical Education (CTE)

Special Education Services for Special Education students General Special Education

Speech/language services

Developmental disabilities

Physically impaired

Deaf/Hard of Hearing

Emotional/Behavioral disorders

Learning disabilities

Autism spectrum

Instructional Support

Activities for assisting instructional staff with the content and process of providing learning experiences for K-12 students

Assistant principals

Curriculum development

Library/media

Professional development

Pupil Support All services to students that are not classified as instructional services

Counseling and Guidance

Health services

Psychologists and social workers

Transportation

Sites and Buildings Acquisition, operation, maintenance, repair and remodeling of all facilities and grounds

Plant operations

Fiscal and Other Fixed Costs

Costs not recorded above Post-employment benefits

Insurance

23

General Fund Expenditures by Program Actual FY 2012 Actual FY 2011 Budgeted FY 2012 Budgeted FY 2013

Administration $11,201,512 $11,404,329 $11,780,386 $14,007,864

Support Services 11,319,956 14,398,257 17,221,697 28,059,766

Regular Education 237,494,714 240,484,358 240,335,914 241,949,898

Vocational Education 4,698,985 4,057,541 5,283,632 5,558,112

Special Education 102,256,392 108,344,755 109,229,120 104,000,492

Instructional Support 37,109,897 33,832,924 38,554,761 42,343,429

Pupil Support 48,928,901 47,387,600 62,622,642 60,867,422

Sites Buildings 34,457,013 34,269,442 39,801,512 34,020,176

Fiscal & Other Fixed Cost 546,254 608,770 579,482 6,770,000

Capital Outlay 7,542,184 9,207,385 0 0

Total $495,555,808 $503,995,361 $525,409,146 $537,577,159

Administration 2.6% Support Services

5.2%

Regular Education

45.1%

Vocational Education

1%

Special Education

19.3%

Instructional Support

8%

Pupil Support 11.3%

Sites Buildings

6.3%

Fiscal & Other Fixed Cost 1.2%

General Fund: Expenditures by Program

24

General Fund: Expenditure Details by Object

Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Salaries & Benefits $402,701,519 $410,499,322 $434,879,985 $439,244,972

Purchase Services 69,926,272 71,116,037 67,039,776 71,504,095

Supplies & Materials 14,946,103 11,477,821 10,414,631 12,618,416

Equipment 7,542,184 9,207,385 11,592,015 11,776,307

Other 439,730 1,694,796 1,482,739 2,433,369

Total $495,555,808 $503,995,361 $525,409,146 $537,577,159

25

Referendum 2012-2013 MPS is committed to using referendum funds to manage class size; support early childhood, literacy, math and

science; fund textbooks and technology; and increase rigor, effective instruction and best practices.

Class Size $43,273,800 Distributed on a per pupil basis.

ELL Classrooms 3,836,004 ESL teachers in schools

Fall Staff Adjustment 2,000,000

All-Day Kindergarten 678,600 Provides one section of all-day kindergarten at Bethune, Hale, Hiawatha, Kenny, Kenwood, Lake Nokomis – Wenonah, Lyndale and Whittier

International Baccalaureate (IB) School Allocations

1,078,800 Bancroft, Hall, Whittier, Anthony, Anwatin, Northeast, Sanford, Edison, Henry, North, Roosevelt, Southwest and Washburn

International Baccalaureate (IB) District Allocation

901,605 Primarily professional development funds for IB programs

Reading Specialists 2,523,002 Placed at all schools with middle grades programs (Note: general aid paid for reading specialists at K-8 schools)

Gateway Technology 174,009 Anthony, Olson, Sanford

Instructional Coach for Contract Alternative Schools

87,000

Math Specialists 1,174,500 Serving elementary students at 18 schools based on academic needs

Math Specialists 2,175,000 Positions in Teaching & Learning Department for school assignment based on academic needs

Literacy Specialists 261,000 Positions in Teaching & Learning Department for school assignment based on academic needs

Material Management 50,000 Position in Teaching & Learning Department

Science Center/Science Programs 755,000

Curriculum Materials 1,500,000

English Language Learners (ELL) 602,000 Professional development to support effective teaching of English Learners

GEMS/GISE/STEM Programs 179,000

Online Learning 940,673

Instructional Technology 4,041,000

Mentors 1,791,000

Total $68,021,993

26

Integration Plan 2012-2013 Programs and services funded with integration funds must support the goals of the school district’s state-approved

integration plan and advance the goals of increasing racial interaction and increasing academic achievement for

students of color.

Check and Connect $573,000 Attendance program at seven comprehensive high schools

Magnet Schools 3,047,849 Support MPS magnet schools

District Magnet Office 256,000

Expanded School Choice Schools 150,010

All-Day Kindergarten 330,724 Armatage, Barton, Burroughs, Dowling, Lake Harriet – Lower

Communications 300,000

Office of Family Engagement 337,000

Alternative & Extended Learning 125,000 Camp St. Croix, Blake Learning Works

AVID Program at Schools 1,435,500 Andersen, Anthony, Anwatin, Cityview, Field, Jefferson, Lake Nokomis – Keewaydin, Lucy Laney, Nellie Stone Johnson, Northeast, Olson, Sanford, Seward

AVID: District Services 633,540

TOSAs in Chief Academic Office 1,241,187 Support focused instruction and Response to Intervention

GEMS/GISE/STEM Programs 419,000

Equity and Diversity Office 1,569,799

Transportation 4,100,000 Magnet school transportation

Transportation 645,000 Go-To Student Passes

WMEP Evaluation 100,000

Teachers Institute 100,000

Teaching with a Cultural Eye 126,000 Expand work of National Equity Project

Project SUCCESS 350,000 Freshman orientation camp for eighth-graders

Human Resources 400,000 Development of diverse work force

ACT/SAT tests 103,000 Cover cost of ACT/SAT prep course for students receiving free/reduced priced meals

Grow our Own 200,000 Develop a pipeline to grow our own diverse teaching staff

Mini-Grants 170,391

Honey Bee mini grant 87,000

Total Integration $16,800,000

27

Title I Allocations 2012-2013 Title I is a federally funded program through the Elementary & Secondary Act (ESEA) designed to provide support to students to ensure that they meet high standards. MPS receives these funds to provide educational services and resources to schools with at least 35 percent of students who qualify to receive free and reduced priced meals.

Title I Allocations

Non-Public School Allocations $1,259,877

Public School Allocations 15,660,856

Research, Evaluation and Assessment (REA) 250,000

Family Involvement Funds to Schools 216,964

District Family Engagement and CPEO 500,000

School Readiness 3,801,423

Neglected and Delinquent Services 165,000

Homeless Highly Mobile Services 1,000,000

District Sponsored Services to Students 3,000,000

Administration, Required Mailings, Indirect Costs 961,739

Academic Reform Specialists 436,492

ISA contract for North High School 175,000

Summer Professional Development High Priority 1,000,000

Total $28,427,351

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Community Services

The community services fund is used to account for services provided for learning and involvement opportunities for lifelong learners of all ages, including Minneapolis residents. Community services funds are intended to provide K-12 students the opportunity to utilize educational facilities and programs during non-school hours, including the summer months. Fees may be charged for these programs. Community services revenue may also be used for educational programming serving adults with disabilities, school-age care, Adult Basic Education (ABE), school readiness and Early Childhood Family Education (ECFE). The community education grant fund is also part of the community services fund and is used to account for the revenues and expenditures for activities related to certain grants and projects funded through state or other local outside agencies. Included within these numbers are the resources designated for non-public education.

Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Beginning Fund Balance $4,826,399 $4,174,352 $3,365,471 $2,130,665

Annual Revenue 24,158,973 24,187,552 22,018,170 22,630,025

Total Revenue $28,985,372 $28,361,904 $25,383,641 $24,760,690

Annual Expenditures 24,811,014 24,996,433 23,252,976 22,630,025

Ending Fund Balance $4,174,358 $3,365,471 $ 2,130,665 $2,130,665

Revenues Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Local $12,411,499 $14,765,871 $11,654,320 $12,305,539

State 9,711,933 7,555,200 8,155,523 8,265,937

Federal 2,035,541 1,866,481 2,208,327 2,058,549

Total Revenues $24,158,973 $24,187,552 $22,018,170 $22,630,025

Expenditures Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013


Purchase Services 4,091,502 4,025,662 3,333,192 3,343,130

Supplies & Materials 1,151,055 1,354,015 1,463,165 857,344

Equipment 128,879 357,683 105,182 112,684

Other 83,378 97,720 13,363 18,897

Total Expenditures $24,811,014 $24,996,432 $23,252,976 $22,630,025

29

Food Services The food service fund is a self-sustaining enterprise in which revenue and expenses are balanced over time. It is used to record all financial activities of the school district’s food service program. Food service includes all planning, preparation and serving of meals and snacks in connection with school and community service activities. Eighty-five percent of Food Service Fund revenues primarily come from federal sources. Food service revenue may only be used for food service programs. All expenditures related to meal preparation must be recorded in the food service fund. The majority of expenditures consist of labor and food costs (84 percent). Purchased services, supplies and equipment account for 16 percent of the fund’s expenditures. Eligible expenditures include application processing, meal accountability, food preparation, meal service and kitchen custodial service, according to Minn. Stat. §124D.111, subd. 3. Capital expenditures may be made from the food service fund only if the fund’s year-end restricted balance is greater than the cost of the equipment to be purchased and if prior approval has been obtained from the Minnesota Department of Education’s Nutrition Section, according to Minn Stat. § 124D.111, subd. 3.

Actual FY 2010 Actual FY 2011 Budgeted FY 2012 Budgeted FY 2013


Annual Revenue $15,694,485 $14,659,158 $15,005,639 $17,958,074

Total Revenue $19,346,368 $19,383,962 $18,706,945 $21,101,967

Annual Expenditures $14,621,564 $15,682,656 $15,563,052 $18,051,208

Ending Fund Balance $4,724,804 $3,701,306 $3,143,893 $3,050,759

Revenues Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Federal (Meal Payments) $1,543,827 $1,348,056 $1,516,049 $2,082,699

State 726,007 660,922 712,394 747,063

Federal 13,327,747 12,609,951 12,777,196 15,128,312

Other 96,904 40,229 - -

Total Revenues $15,694,485 $14,659,158 $15,005,639 $17,958,074

Expenditures Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013


Purchase Services 984,737 1,153,195 844,700 1,076,500


Equipment 1,301,263 1,520,216 1,600,000 1,500,000

Other 4,074 10,182 5,500 500


30

Capital Projects The capital projects fund is used to record all operations of the school district’s building construction program, which is funded by the sale of bonds or the alternative facilities bonding/pay-as-you-go levy program. At Minneapolis Public Schools, construction is defined as new construction, remodel, capital renewal, capital maintenance, preventative maintenance and repair. Revenue sources in the capital projects fund for fiscal year 2013 are comprised of:

Fund balance carryover from our December 2011 general obligation bond sale

The July 2012 anticipated Alternative Facilities capital renewal bond sale

The fall 2012 anticipated general obligation bond sale

Annual pay-as-you-go Alternative Facilities levy proceeds (pay 2012)

Fund balance transfer to cover construction; included is funding for the reopening of Folwell and Howe, additions at Lake Nokomis – Keewaydin and Lake Harriet – Lower and the remodel of Pratt.

Building sale proceeds View the list of planned capital projects.

Capital/Construction Fund


Annual Revenue 26,485,635 80,554,323 35,944,051 66,713,534

Total Revenue 45,028,601 100,638,506 92,204,485 113,269,169


Ending Fund Balance 20,084,183 56,260,434 8,292,361 31,011,683

Revenues

Local 10,765,575 14,698,941 19,400,000 1,310,593

State

Federal

Other 15,720,060 65,855,382 16,544,051 111,958,576

Total Revenue 26,485,635 80,554,323 35,944,051 113,269,169

Expenditures

Salaries & Benefits 11,180,122 11,471,508 12,141,478 11,839,857

Purchased Services 4,069,068 6,884,686 5,723,986 2,413,330


Equipment/Construction 7,035,694 22,624,121 63,022,977 65,125,121

Other 5,788 3,990 31,000 17,100


http://financeandbudget.mpls.k12.mn.us/uploads/fy13_planned_capital_projects.xls

31

Debt Service

MPS policy places two limits on school district debt.

1. 70 percent of debt should be repaid within 10 years.

2. Total school district annual debt payment shall not exceed 15 percent of total operating revenue.

Refinancing shall not be included in the 15 percent calculation.

MPS currently owes $413,406,000. The school district will have repaid 69.8 percent by 2019 (seven years) and 74.3

percent by 2020 (eight years).

Debt payments, less refinancing, are 11 percent of total operating revenue.

Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Estimated FY 2013


Annual Revenue 104,220,757 78,509,465 64,870,443 72,310,162


Ending Fund Balance $29,522,713 $39,050,617 $11,625,582 $1,750,778

Revenues

Local 58,054,529 47,111,703 52,110,443 59,670,162

State 12,845,931 12,411,346 12,760,000 12,640,000

Federal - - - -

Bond Proceeds 33,320,297 18,986,416 - -

Total Revenues $104,220,757 $78,509,465 $64,870,443 $72,310,162

Expenditures

Debt Principal & Interest 68,518,128 68,803,283 73,995,478 70,874,966

Debt Refundings 33,165,000 - 18,300,000 10,710,000

Other 181,122 178,278 - 600,000


32

Year Ending General Obligations Certificates of Participation Total Debt Payment Total Debt

Bonds Payable Payable Principal & Interest

Outstanding Balance

June 30,2012 Principal Interest Principal Interest Principal Interest Balance

2013 $47,790,000 $9,275,672 $17,250,000 $7,269,294 $65,040,000 $16,544,966 $81,584,966 $348,366,000

2014 35,380,000 7,379,189 18,000,000 6,606,874 53,380,000 13,986,063 67,366,063 294,986,000

2015 23,200,000 6,165,528 18,645,000 6,000,174 41,845,000 12,165,702 54,010,702 253,141,000

2016 23,741,000 5,224,675 17,900,000 5,340,468 41,641,000 10,565,143 52,206,143 211,500,000

2017 16,405,000 4,429,686 18,540,000 4,658,793 34,945,000 9,088,479 44,033,479 176,555,000

2018 12,140,000 3,764,974 15,445,000 3,905,543 27,585,000 7,670,517 35,255,517 148,970,000

2019 9,325,000 3,268,490 14,790,000 3,261,223 24,115,000 6,529,713 30,644,713 124,855,000

2020 9,710,000 2,878,787 9,020,000 2,601,253 18,730,000 5,480,040 24,210,040 106,125,000

2021 8,445,000 2,454,871 6,340,000 2,197,430 14,785,000 4,652,301 19,437,301 91,340,000

2022 8,390,000 2,086,644 3,470,000 1,927,130 11,860,000 4,013,774 15,873,774 79,480,000

2023 4,255,000 1,716,758 3,595,000 1,786,405 7,850,000 3,503,163 11,353,163 71,630,000

2024 2,525,000 1,549,223 1,605,000 1,634,525 4,130,000 3,183,748 7,313,748 67,500,000

2025 750,000 1,452,367 1,660,000 1,538,225 2,410,000 2,990,592 5,400,592 65,090,000

2026 42,020,000 741,163 1,720,000 1,438,625 43,740,000 2,179,788 45,919,788 21,350,000

2027 805,000 28,175 1,785,000 1,335,425 2,590,000 1,363,600 3,953,600 18,760,000

2028 - - 1,850,000 1,219,400 1,850,000 1,219,400 3,069,400 16,910,000

2029 - - 1,920,000 1,099,150 1,920,000 1,099,150 3,019,150 14,990,000

2030 - - 2,000,000 974,350 2,000,000 974,350 2,974,350 12,990,000

2031 - - 1,975,000 844,350 1,975,000 844,350 2,819,350 11,015,000

2032 - - 2,050,000 715,975 2,050,000 715,975 2,765,975 8,965,000

2033 - - 2,120,000 582,725 2,120,000 582,725 2,702,725 6,845,000

2034 - - 2,200,000 444,925 2,200,000 444,925 2,644,925 4,645,000

2035 - - 2,280,000 301,925 2,280,000 301,925 2,581,925 2,365,000

2036 - - 2,365,000 153,725 2,365,000 153,725 2,518,725 -

Minimum Debt Payment Schedule

Documents

The Budget.financeandbudget.mpls.k12.mn.us/uploads/budget_book_fiscal_2013… · The state of Minnesota uses a weighted student formula, providing different funding for students at