The annual budget presents a complete financial plan and includes the following:
Important features and major changes from the preceding year
Projected revenues and expenditures from all sources with a comparative statement for the two preceding years, itemized by year, fund, source and activity
Interest, amortization and redemption amounts due on debt funds
A general budget summary
April 3, 2008Public Hearing 2
In no event shall the total proposed expenditures
from any fund exceed the estimated revenues to be
received plus any unencumbered balance or less any
deficit estimated for the beginning of the budget
year……..
April 3, 2008Public Hearing 3
The Fiscal Year 2009 budget is marked with several challenges and key issues:
Projected revenue = $320.0 M Local, state, and federal funding down $14.9 M
Projected student enrollment decline of 3,000
Budget gap $24.9M and proposed resolutions
Economic driven concerns Health benefits: +18.5% Utilities: +11% Foreclosures Unemployment Rate Federal Fund Rate
April 3, 2008Public Hearing 4
The Fiscal Year 2009 budget is marked with several challenges and key issues:
Prudent and sustained cost cutting/containment initiatives
• Long range facility planning• Reallocation of resources
Revenue increase options• Tax levy increase 3¢ levy increase generates $1M• Bond issue “No Tax Increase Bond Issue”• Flexible use of DESEG funds
April 3, 2008Public Hearing 5
$ 4.4M decline in local revenue Property taxes Prop C Interest Tuition
$ 7.3M decline in state basic formula funding
$2.9M decline in federal funding Medicaid funding loss
April 3, 2008Public Hearing 6
Used FY08 projected expenditures, $335M, as baseline for FY08-09 budget
• FY08 projected expenditures of $335 includes additional budget cuts at the Central Office of $4M
Build-up of additional expenditures for:• Virtual Schools• Homeless Program• Rising utility prices• Medical benefits increase• Principals’ salary increase• Fill 3 key administrative positions• Workers’ Compensation Deficit Coverage
April 3, 2008Public Hearing 7
Defer DESEG loan payment
Eliminate all non-essential vacant positions
Staffing additions funded by reducing other positions
Previously agreed upon salary increases only (Principals)
Charter enrollment up only 5%
Savings from school reconfigurations ($1M) Closing of Lyon, Mitchell, & Gundlach
April 3, 2008Public Hearing 8
April 3, 2008Public Hearing 9
FY07 FY08 FY09
Enrollment 32,694 30,134 27,062
FTE Staffing:Teachers 2,457 2,183 ---Total 4,412 3,985 3,643*
GOB Revenues $353M $335M $320M
* assumes staff reallocation used to cover budget gap
April 3, 2008Public Hearing 10
FY07-08FY08-09
Special Education Budget $ 65.2 M $ 67.3 Mas a %-age of total District Budget ~13.3%
~14.9%
Special Education Enrollment 5,333 5,000
April 3, 2008Public Hearing 11
April 3, 2008Public Hearing 12
Align limited resources with academic initiatives
Improve instruction in an efficient and cost effective manner
Balance expenditures with shrinking revenues
Implement student achievement drivers
April 3, 2008Public Hearing 13
Representative of Academics to Speak
April 3, 2008Public Hearing 14
Gifted Education ◦ Add 10th grade to McKinley Classical Leadership Academy◦ Increased enrollment at Kennard Classical Junior Academy
Advanced Placement Program◦ Increase curriculum rigor and relevance◦ Earn college credit in high school◦ Increase scholarship opportunities
Early Childhood Education◦ Meda P. Washington◦ Increase program capacity◦ Attract non-public school student s
April 3, 2008Public Hearing 15
Virtual Schools ◦ FY08 enrollment: 170 part-time, 40 full-time◦ Attract charter and private school students◦ Expand to all grade levels, K-12◦ Expand course offerings
Dropout Recovery Program (Turner Branch)◦ Over 4000 SLPS dropouts◦ Consider Middle College with dual high school diploma
+ associates degree◦ Partner with Community Colleges
April 3, 2008Public Hearing 16
Big Picture Alternative Education Program◦ FY08 enrollment: 190 in 1st - 10th ◦ Add 11th grade◦ Enrollment increase
Other Programs/Opportunities◦ Expand ESOL program◦ Expand use of instructional coordinators◦ Enhance staff professional development◦ Investigate therapeutic classrooms
April 3, 2008Public Hearing 17
FY07-08 General Operating Revenues $ 335 M
FY08-09 Projected Revenues* 320 M
FY 08-09 Revenue Gap $ 15 M
*Projected Charter School Revenue = $61.4 M
April 3, 2008Public Hearing 18
FY08-09 Projected Revenue Gap $ 15.0 M
FY08-09 Expenditures Above FY07-08Academic Initiatives $ 1.0 MHomeless Program 0.6Increase, utility prices 1.0 Increase, medical benefits 5.2 Principals’ salary increase 1.1Fill 3 key administrative positions 0.6 Workers’ Compensation Deficit Coverage 0.4Additional FY08-09 Expenditures $ 9.9
M
TOTAL FY08-09 Budget Gap $ 24.9 M
April 3, 2008Public Hearing 19
Staffing Realignments Attrition/Retirement $ 7.8 M Other Realignments $ 17.7 M
Long Range Facility Planning Average annual cost per school $ 0.4 M 25 schools @ < 60% capacity $ 10.0 M
Consider employee health care benefit participation
3,643 employees X $300/year $ 1.1 M 3,643 employees X $600/year $ 2.2 M 3,643 employees X $900/year $ 3.3 M
April 3, 2008Public Hearing 20
Free-and-Reduced meal participation 100% student participation generates additional $4M
Increase student attendance rate One missed day per student costs >$20 1% increase in student attendance rate will generate
$1.5M
Non-payroll reductions
Investigate refinancing options and funding for capital needs
Reduce GOB burden with other funding programs
April 3, 2008Public Hearing 21
Resolution with Charter Payment Calculation (~ $10M)
Increase local revenue (increase tax rate) Every $.03 increase generates ~ $ 1.0 M
FY09 Governor budget increase recommendations (~$4.5M)
State Foundation Formula Proposition C Parents as Teachers Virtual School (MoVIP) eMINTS classroom technology Early Childhood Special Education Special Education High Needs
April 3, 2008Public Hearing 22
DESE payment negotiations Basic Formula Transportation
DESEG loan forgiveness and settlement flexibility
“Rule of 80” vs. “Rule of 85”
April 3, 2008Public Hearing 23
Funding Equity versus Charter Schools• 2nd preceding year student count
• Desegregation sales tax
• Prop C
• Categorical paymentsa) Exceptional pupil aidb) Gifted educationc) Remedial reading education
April 3, 2008Public Hearing 24
Voluntary Inter-district Choice Corporation (VICC) $5M Special Education
Tax Increment Financing (TIF)
Transportation Reimbursement Regular Magnet Homeless
No ADA for Pre-School
April 3, 2008Public Hearing 25
Organizational Restructuring Qualified Staff Critical Positions Employee Morale
Aging Infrastructure Utility costs/usage spikes Necessary maintenance and repairs
Community Support School closings Accreditation
April 3, 2008Public Hearing 26
Declining Enrollment Declining revenue Fixed costs
Unfunded mandates Funding reserves Deficit spending Desegregation agreement standards
April 3, 2008Public Hearing 27
April 3, 2008Public Hearing 28
April 3, 2008Public Hearing 29
April 3, 2008Public Hearing 30
GOB FUND BALANCE
FY2001 $55 FY2002 $40 FY2003 ($23)FY2004 ($38)FY2005 ($26)FY2006 ($25)FY2007 ($13)FY2008 ($13)
April 3, 2008Public Hearing 31
April 3, 2008Public Hearing 32
Projected student enrollment of 24,748 • Down an additional 2,300
Projected revenue of $306.9M• Down an additional $13.3M
Additional charter enrollment• KIPP ‘09
April 3, 2008Public Hearing 33
Fiscal Year 2008/09 Budget BookPublished April 2008
April 3, 2008