Transcript Albuquerque Public Schools

Albuquerque Public Schools
FY16 Budget
Strategic Look Ahead Update
2-17-15
FY16 Strategic Outlook
Table of Contents
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FY15 Operational Fund Budget Summary
FY15 Approved Budget
Operating Surplus/(Shortfall) Trend
Enrollment and Expenditure Trends
Current SEG Outlook
APS Budget Changes FY15 to FY16
Direct Instruction Expenditure Percentage
Payroll vs. Non-Payroll Expenditures
FTE by Function Comparison
Opportunities and Risks
FY16 Budget Timeline
Next Steps
FY15 Operational Fund
Budget Summary
A total of $7.6M in new budget priorities were added in FY15:
• $1.4M for investments and new initiatives including the K-8 Academy,
Sandia IB Program Expansion, Office of Innovation, etc.
• $3.5M for unfunded mandates to support increased requirements from
PED including additional Assistant Principals and Testing Coordinators for
schools.
• $2.2M for post recession recovery including school support, social
workers, counselors, custodians and other items.
• $.5M for compensation and other requests including a tier increase for
teachers.
-Budgeted expenditures exceeded budgeted revenues by $5.3M, cash reserves were
used to fill the gap.
-An additional $1.1M in cash reserves was used at the beginning of the fiscal year,
increasing the estimated budget shortfall to $6.4M.
APS FY14-15 Original Budget by Fund Type ($M)
Operational
Capital
$395.0
Debt Service
Grants
Food Services
Transportation
$690.2
$125.2
Instructional Materials
Athletics
Enterprise
$79.7
$49.6
$19.4 Transportation
$1.0 Enterprise
$7.3 Instructional Matls
$2.9 Athletics
OPERATING SURPLUS/(SHORTFALL) TREND
ACTUAL
FY2009
ACTUAL
FY2010
ACTUAL
FY2011
ACTUAL
FY2012
ACTUAL
FY2013
ACTUAL
FY2014
BUDGET
FY2015
Revenues:
SEG
Miscellaneous Revenues
TOTAL REVENUE
$621
$11
$632
$612
$20
$632
$602
$13
$615
$583
$14
$597
$590
$16
$606
$613
$13
$626
$635
$14
$649
Expenditures:
Total Salaries
$443
$440
$420
$413
$407
$414
$435
Total Benefits
$136
$141
$134
$124
$131
$147
$155
$61
$67
$54
$56
$61
$60
$66
GRAND TOTAL ALL EXPENDITURES
$640
$648
$607
$594
$600
$621
$655
Operating Surplus/Shortfall
($7.7)
($16.1)
$8.0
$3.5
$6.2
$5.2
($6.4)
Total Other Expenditures
The existing $6.4M shortfall will come off the top of any “new” revenues in
FY16 unless we manage current year expenditure levels.
150,000
Enrollment and Expenditure Trends ($M)
$800
130,000
$700
110,000
$600
90,000
$500
Enrollment
70,000
$400
50,000
$300
Enrollment decr on average .7% Annually
FY13 to FY15
30,000
$200
10,000
Enrollment
Expenditures
$100
FY09
86,963
$640
FY10
87,224
$648
FY11
87,518
$607
FY12
87,867
$594
FY13
87,085
$600
FY14
86,662
$621
FY15 Est
85,981
$648
•Expenditures increased on average 3% annually from FY13 to FY15, while enrollment
has continued to decline at a rate of .7% annually.
•Estimated expenditures in FY15 are on track to equal those in FY10 with ~1,200 less
students to sustain the same level of expenditures.
Expenditures
Current SEG Outlook
APS' SEG Funding ($M's)
$800
$621.3
$610.6
$601.3
$600
$583.3
$590.1
$612.6
$634.6
$643.7
SEG Funding
$400
$200
$0
FY09
FY10
FY11
FY12
FY13
FY14
FY15 Bud
FY16 Est
The February consensus revenue estimate is $83M in New State Funding. This would mean
an increase of approximately $9.0M to APS.
APS BUDGET
CHANGES FROM FY15 to FY16
Revenue:
Estimated FY16 SEG Funding
SEG Reduction due to lower T&E Factor
Enrollment reduction @600 students
Total
Expenditures:
Existing FY15 Budget Shortfall
FTE reduction due to enrollment loss ~30 FTE
Average Salary Savings from drop in T&E
Increase Tier One Teachers to $34K
Retiree Health Care Rate Increase @ .5%
Maintenance Costs
Utilities Increase
Operational supplement to Transportation Fund
Reduce classroom size (1-2%)
Insurance Plan increases @ 6 months
Contingency
Total
FY16 Projected Budget Surplus/(Shortfall)
February Revenue
Consensus ($83M)
$9.0
($7.0)
($4.4)
($2.4)
$6.4
($1.8)
($1.0)
$3.5
$2.0
$2.5
$1.0
$2.0
$2.4
$2.0
$3.0
$22.0
($24.4)
Direct Instruction As a % of Total Expenditures
0.7%
0.6%
0.8%
0.7%
0.7%
0.7%
0.8%
11.4%
11.7%
12.0%
12.0%
12.7%
12.2%
11.8%
3.2%
5.3%
3.3%
5.4%
4.1%
2.6%
5.3%
3.4%
2.6%
5.4%
3.4%
2.8%
5.5%
3.4%
3.1%
5.4%
3.8%
3.0%
5.3%
3.4%
70%
10.7%
10.5%
9.8%
10.1%
9.0%
9.6%
10.0%
60%
64.7%
64.3%
65.6%
65.7%
65.9%
65.6%
64.9%
100%
90%
80%
3.7%
50%
40%
30%
20%
10%
0%
FY09 ACT
FY10 ACT
FY11 ACT
FY12 ACT
1000 - Direct Instruction
2100 - Student Support
2400 - School Admin
2500 - Central Services
2300 - Central Admin
All Other
FY13 ACT
FY14 ACT
2200 - Instructional Support
2600 - Maintenance and Ops
FY15 BUD
FY13-14 Actual Expenditures
& FY 15 Budget
EXPENDITURE TYPE
($ MILLIONS)
SALARY
.
FY13
ACTUAL
FY14
ACTUAL
.
.
FY15
BUDGET
$ 407.4
$ 414.0
$ 436.2
BENEFITS
131.4
146.8
155.8
TOTAL PAYROLL
538.8
89.9%
560.8
90.4%
592.0
90.5%
60.8
10.1%
59.8
9.6%
62.1
9.5%
NON-PAYROLL
GRAND TOTAL
$ 599.6
$ 620.6
Between 89-91% of all Operational Expenditures are Personnel costs alone.
$ 654.1
FTE BY FUNCTION COMPARISON
FY15 Operational Fund
FTE by Function: Comparison to High Water Mark in FY09
FY09 BUD FY15 BUD
Change from High Water Mark
(DECREASE) (% DECREASE)
FY09 to FY15
FY09 to FY15
1000 - INSTRUCTION
SUBTOTAL TEACHERS
SUBTOTAL EDUCATIONAL ASSISTANTS
SUBTOTAL ACT DIRECTORS/AD's/ATH TRAINERS
6,120
1,642
23
5,760
1,487
37
(360)
(155)
14
-5.9%
-9.4%
60.9%
7,785
7,284
(501)
-6.4%
1,207
1,030
(177)
-14.7%
363
319
(44)
-12.1%
39
29
(10)
-24.9%
2400 - SCHOOL ADMIN
668
629
(39)
-5.9%
2500 - CENTRAL SERVICES
308
274
(34)
-11.1%
1,044
1,003
(41)
-3.9%
4
3
(1)
-25.0%
16
7
(9)
-57.3%
3,650
3,294
(356)
-9.7%
11,435
10,578
(857)
-7.5%
SUBTOTAL INSTRUCTION
2100 - STUDENT SUPPORT
2200 - INSTRUCTION SUPPORT
2300 - CENTRAL ADMIN
2600 - MAINTENANCE & OPERATIONS
2700 - STUDENT TRANSPORTATION
3100 - FOOD SERVICES
SUBTOTAL NON-INSTRUCTION
GRAND TOTAL FTE
Opportunities and Risks
Opportunities
($M)
•Standardize Middle & High School Schedules
$14.0
•Deliver Transportation Services at a lower cost
TBD
•Utilize Additional Risk/Worker's Comp Reserves
$1.0
•Ongoing Work of Academic Master Plan Committee TBD
•Continue Funding Early Intervention with IDEA
TBD
•Summer School
$0.7
•Overtime & Travel
TBD
•Online Learning
TBD
•Substitute Services
TBD
Risks
($M)
Unfunded Mandates:
◦Testing Costs
◦School Grade Promotion & Retention
•Medicaid Lawsuit
•Statewide MOE
TBD
$14.0
$0.8
TBD
Important Items of note:
3/1 Academic Master Plan Deadline
3/9 Community Budget Meetings
3/20 Budget Call Prep Schools & Departments
3/21 Governor’s Action on Legislation
4/9 Unit Value Communicated to School Districts
4/10
5/19
6/5
6/15
Legislation Not Enacted by Gov is Pocket Vetoed
Finance & Board Presentation for Approval
FY16 Budget Due to PED
Tentative Technical Review with PED
Next Steps:
Determine Board priorities