Transcript Document

FY16 Budget Discussion
11/03/14
Budget Assumptions
Strategic Priorities
Staffing
Revised 11/3/14 4:30pm
FY16 Parameter Discussion
(Resources)
1. The district will establish a millage rate consistent with the Board’s mission
and vision.
2. The district will maximize State and federal grant fund resources by:
a.
Maximizing the use of existing grants and carry-over funds;
b.
Implementing new development strategies to access additional funding
opportunities;
c.
Applying approved indirect cost rates to all federal grants; and,
d.
Collecting all monies due the district (i.e., out-of-district tuition,
escheatment, court-ordered restitutions and intergovernmental
payments)
3. The district will maintain a fund balance between 7.5% and the statutory limit
of 15% of projected revenue.
4. The district will secure new, permanent funding streams to support priority
initiatives, such as wrap-around services, college bridge programs, and early
childhood education.
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Resource Assumptions
• Local Tax Revenue – FY16 Projection assumes a 5%
property digest increase from FY15 Projection. This
compares to a 4.2% increase in the FY 15 property digest.
We anticipate that the real estate market continued to
strengthen in 2014.
• State Revenue – FY16 Projection assumes a 4% increase
in QBE funding from FY15 Projection. This compare to a
7.6% increase in FY 15. The FY 15 increase was due in
part to the reduction in the austerity cuts. Base QBE
increased by 4%.
• Other Local/Federal – FY16 Projection assumes a
decrease of 9%. FY 15 revenue was boosted by the sale
of district assets.
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FY16 Budget Assumptions (Resources)
Resources
Local
State
Other
Revenue Total
Use of Fund Balance*
Totals Resources
Actual Actual Budget Projection Projection
2013
2014
2015
2015
2016
$411.6 $431.8 $467.1
$450.0
$473.2
143.7
153.3
151.2
165.0
171.7
24.7
12.7
14.3
14.0
12.7
580.0
597.8
632.6
629.0
657.6
-2.7
-3.1
25.0
25.0
0.0
$577.3
$594.7
$657.6
$654.0
$657.6
*Negative number indicates an addition to fund balance
Note: FY14 numbers are pre-audited
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FY16 Budget Assumptions (Fund Balance)
$ in millions
Ending Ending Bal.
Bal.
% Change
$83.60
3.3%
FY2013
Beg. Bal.
$80.90
FY2014
$83.60
$86.70
3.7%
FY2015
$86.70
$61.70
-28.8%
FY2016
$61.70
$61.70
0.0%
The State limits fund balance to 15% ($98.6 million) of
projected revenue. APS BOE has established a targeted
minimum fund balance of 7.5% ($49.3 million). Balances
below zero requires state intervention.
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FY16 Parameter Discussion
(Expenditures)
1. Allocation decisions will be made to prioritize achieving a more
equitable distribution of resources pursuant the district’s recent
equity audit.
2. The district will allocate resources in accordance with the
operating model selected by the board and approved by Georgia
Board of Education.
3. The district will ensure that the budget is aligned to the Board’s
draft mission and vision and that resources are allocated against
key district strategic priorities in the areas of culture, systems
improvements, talent strategy (including strategies to recruit/retain
high quality staff and a comprehensive professional development
strategy), and college and career readiness strategy.
4. The district will allocate resources to begin to address internal
pay-parity, compensation issues over the next five years.
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FY16 Parameter Discussion
(Expenditures Cont.)
5. The district will fund pension obligations in accordance with State
statute and actuarial standards.
6. The district will prioritize resource allocations that support
improvement in student achievement and growth in math and
literacy including a comprehensive textbook adoption strategy
inclusive of online student and teacher resources.
7. The district will prioritize funding to address disproportionality in
special education.
8. The safety, security, and well-being (i.e. social, emotional, and
behavioral health supports) of students and staff will be prioritized in
the budgeting process.
9. The district will invest to fix and maintain HVAC systems in
schools buildings.
10. The district will invest in early childhood education programs.
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Strategic Priorities and Draft Initiatives
Academic Program
Culture
•
Early Childhood Offerings (P10)
•
Common Core/GPS Support
•
Positive Behavior Strategies (P8)
•
Ethical Programming and Practices (P3)
•
College and Career Access Strategies (P3)
•
Stakeholder Communication and Engagement
•
Organizational Culture (P8)
Talent Strategy
•
Teacher and Leader Recruitment Strategies
Systems and Resources
•
(P3)
•
•
Strength-Based Strategies to Support
System Upgrade and Integration for HR and
Finance Technology
Teacher and Leadership Development
•
Strategic Facilities and Capital Plan (P9)
Programs/Staff Professional Learning (P3)
•
Instructional and Infrastructure Technology Plans
Equity in Compensation Study (P4)
•
Budgeting Strategies (P1 and P2)
•
Data Quality, Access and Management
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FY16 Budget Assumptions (Prior Year
Spending and Current Budget by Function)
Millions of dollars
FY15 Amended
FY14 Actual
Functions
Instruction*
Pupil Services
Staff Services
School Administration
General Administration**
Student Transportation Service
Maintenance and Operation of Plant
Services
Budget
Expenditures
$404.1
$369.6
26.2
18.9
19.2
17.6
41.4
40.7
63.7
44.9
27.7
24.2
75.3
78.8
$657.6
$594.7
*Increase due primarily to pay-raises, pension, furlough
elimination, Charter School, SST, and non-core teachers
**Increase due primarily to realignment of IT functions, computer
refresh, and software purchases
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FY16 Budget Assumptions (Prior Year
Spending and Current Budget by Object)
Object
Number
Objects
1000 Salaries
2000 Employee Benefits(Employer Cost)*
3000 Purchased Professional and Technical Services
4000 Purchased Property Services
5000 Other Purchased Services**
6000 Supplies
7000 Property
8000 Other Expenditures (Dues & Fees)
9000 Operating Transfers to Non-General Funds
Millions of dollars
FY15 Amended
FY14 Actual
Budget
Expenditures
$329.7
$321.8
161.2
136.5
20.4
13.1
16.3
16.8
86.1
61.6
36.5
37.5
0.5
3.2
4.0
3.0
2.9
1.2
$657.6
*Increase due to TRS, health insurance, and bus driver
conversion from p/t to f/t
**Increase due to charter school enrollment
$594.7
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FY16 Budget Discussion (Pension)
FY
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Millions of dollars
(Fully Funded 2030)
$48.9
$50.4
$51.9
$53.5
$55.1
$56.7
$58.4
$60.2
$62.0
$63.8
$65.8
$67.7
$69.8
$71.8
$74.0
$30.1
Note: Assumes 7.5% Annual Investment Returns
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FY16 Budget Assumptions (Class Size Cost)
FY15 Scenarios for Increasing Class Size
Waiver
Teachers
Para-professionals
Total
Change
Cost Teachers
Cost Para-pros
Total Cost
Savings
0
1927
229
2156
$
154,160,000
$
7,900,500
$
162,060,500
$
-
1
1868
224
2092
64 $
149,440,000
$
7,728,000
$
157,168,000
4,892,500
2
1817
216
2033
59 $
145,360,000
$
7,452,000
$
152,812,000
4,356,000
3
1772
210
1982
51 $
141,760,000
$
7,245,000
$
149,005,000
3,807,000
4
1718
200
1918
64 $
137,440,000
$
6,900,000
$
144,340,000
4,665,000
5
1675
191
1866
52 $
134,000,000
$
6,589,500
$
140,589,500
3,750,500
$
21,471,000
Note1: High School Max is Waiver of 3
Note2: Based on avg. teacher salary of $80,000
Note3: Based on avg. para-professional salary of $34,500
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APS Staffing
Job Title
FY 2014 FY 2015 FY2016
ASSISTANT PRINCIPAL
105
102 TBD
COUNSELOR
111
111 TBD
CUSTODIAN
161
161 TBD
MEDIA SPECIALIST
87
83 TBD
PARAPROFESSIONAL
369
303 TBD
PRINCIPAL
87
83 TBD
SCHOOL BUS DRIVER 4HR
264
264 TBD
SCHOOL CLERK 2
61
58 TBD
SCHOOL SECRETARY
90
86 TBD
TEACHER
3225
3198 TBD
Top Ten Positions
4,560 4,449 TBD
All Other Positions
Total Positions
962
5,522
946 TBD
5,395
TBD
Key Action to Determine Staffing: Class size waiver to be approved in December 2014.
Enrollment to be approved in January 2015.
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Conclusion and Observations
• Without millage increase, available resources will be
limited to approximately the current level.
• Ability to increase fund balance is constrained.
• Without additional resources, implementation of
budget parameters and strategic initiatives will be
limited to the ability to repurpose spending in existing
functions and reprioritize spending between
functions.
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Next Steps
1. Adopt resource estimates and class size
ratios (December)
2. Discuss Enrollment Projections (January
Work Session)
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Questions
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