Transcript Document

Detroit Public Schools
FY 2007
Proposed Budget
June 28, 2006
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DPS FY 2007 Proposed Budget
Goal of the Detroit Public Schools
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Improve Student Achievement and
Performance
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Create a Safe School Environment
Enhance Parental and Community
Involvement
Transform the District into an Effective and
Efficient Organization
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DPS FY 2007 Proposed Budget

We develop and implement
the budget to support the
District’s goal of improving
student achievement and
performance
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DPS FY 2007 Proposed Budget
Important Information About This
Proposed Budget
We are proposing BALANCED
BUDGETS for all Funds of the District
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DPS FY 2007 Proposed Budget
Important Information About This
Proposed Budget
Millage Rates
Operating
18.0000 mills (non-homestead)
Debt Service 13.0000 mills (homestead/ non-homestead)
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DPS FY 2007 Proposed Budget
Important Information About
This Proposed Budget

Approximately 85% of our General
Fund Revenue is derived from the
State Foundation Allowance which is
totally dependent on the blended
student count.*
*(Blended = 75% Fall and 25% Winter Student Count)
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DPS FY 2007 Proposed Budget
This Budget has been developed and balanced with the
following assumptions:
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Labor contract negotiations will provide
concessions amounting to approximately
$105 million
Class size requirements are maintained
No adverse Legislative changes
An increase of per pupil funding of $200
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DPS FY 2007 Proposed Budget
This Budget has been developed and balanced with the
following assumptions: (Continued)
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Staffing reductions and a delay in filling
funded vacancies will result in an estimated
savings of $29 Million
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All State funding increases are consumed
by contractual obligations
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DPS FY 2007 Proposed Budget
This Budget has been developed and balanced
with the following assumptions (Cont.):
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Staffing will be consistent with allocations and
projected reductions of approximately 800
positions, requiring all eliminations to occur by
July 1, 2006. Failure to complete all required
transactions will result in a liability of
approximately $37 million
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DPS FY 2007 Proposed Budget
This Budget has been developed and balanced with the
following assumptions (Cont.):
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All central office departments will receive 50% of their
discretionary allocation at the beginning of the fiscal
year. At a minimum, a mid year review will be
performed by staff to determine any appropriate
adjustments.
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The second half of the Principal’s equity adjustment
is NOT included in the budget.
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Vacancies will not be filled until mid-year (January
2007). With the exception of critical shortage areas
which include facilities, security, and positions
deemed critical by the General Superintendent and
the Board of Education.
We will continue to refine both revenue and expenditure budgets as new
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information becomes available.
DPS FY 2007 Proposed Budget
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Continuation of non-union management
concessions
The closing of three (3) Board of Education
buildings (Post, Pitcher, and Owen)
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DPS FY 2007 Proposed Budget
K-12 Student Blended* Trend
State Aid F.T.E. Membership continues to decline:
Projected
FY 00
FY 01
FY 05 *
FY 06 *
FY 07 *
FY 02
FY 03
FY 04
162,693
159,694
157,003
150,415
141,148
130,580
121,198 ■
Decline
(5,520)
(2,999)
(2,691)
(6,588)
(9,267)
(10,568)
(9,382) ■
Decline
%
-3.28%
-1.84%
-1.69%
-4.20%
-6.16%
-7.49%
-7.18%
168,213
* Blended = 75% Fall and 25% Winter Student Count
 Per the May 2006 State Aid Report
■ Amounts DO NOT include Last Chance Program FTE projections
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DPS FY 2007 Proposed Budget
Revenues FY 2007
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We are forecasting a loss of 9,382 * funded
pupils in the State Aid Membership count
resulting in a significant State Aid revenue
decrease.
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The total General Fund/General Purpose (Fund
11) Revenue has declined from the previous year
by $43,400,100.
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State Aid Per Pupil Funding is projected to
increase to $7,459 per pupil in FY 2007.
* Amount DOES NOT include Last Chance Program FTE projections
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DPS FY 2007 Proposed Budget
General Fund/General Purpose (Fund 11)
Revenue Analysis
Description
State Aid
Property Tax
Investment Earnings
Charter Schools
Medicaid
Other Revenue
Durant
Total
FY 2006
Revised Revenues
FY 2007
Projected
Revenues
$776,535,371
93,309,147
$739,228,057
96,090,884
6,994,829
420,988
3,000,000
424,760
10,900,000
23,875,251
10,100,000
19,791,785
5,930,443
5,930,443
$917,966,029
$874,565,929
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DPS FY 2007 Proposed Budget
General Fund/General Purpose (Fund 11)
Revenue Distribution
Local 12.88%
State 85.31%
Federal 1.33%
Other Financing Sources 0.48%
$874,565,929
NOTE:
State revenue includes Charter Schools and a portion of other revenue. Local
revenue includes property tax, investment earnings, reimbursement, and a portion of
other revenue. Other financing sources includes real estate sales and non-DEP fund
transfers.
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DPS FY 2007 Proposed Budget
General Fund/General Purpose (Fund 11)
Revenue Summary
State Aid
Property Tax
Investment Earnings
Charter Schools
Medicaid
Reimbursement
Other Revenue
Durant Settlement
Total Revenues
FY 2007 Est.
$739,228,057
96,090,884
3,000,000
424,760
10,100,000
2,000,000
17,791,785
5,930,443
$874,565,929
% of Total
84.53%
10.99%
0.34%
0.05%
1.15%
0.23%
2.03%
0.68%
100.00%
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DPS FY 2007 Proposed Budget
Financial Information Data (FID)
Detroit Public Schools has reclassified several of its
expenditures in accordance with the Michigan School
Accounting Manual (Bulletin 1022). This manual serves
as a mandatory guide to the uniform classification and
recording of accounting transactions for Michigan public
school districts.
For example: School principals are now classified
under school administration(24x) and counselors are
now classified under pupil support services (21x). They
were both previously recorded under instruction (1xx).
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DPS FY 2007 Proposed Budget
General Fund/General Purpose (Fund 11)
Expenditures
Instruction (1XX)
Pupil Support Services (21X)
Instructional Staff Support Services (22X)
General Admin Support Services (23X)
School Administration (24X)
Business Services (25X)
Operation and Maintenance (26X)
Transportation (27X)
Central Services (28X)
Amount
$ 329,635,342
24,076,226
22,047,999
7,575,971
89,534,169
44,175,875
177,332,605
47,194,301
46,167,488
% of Total
37.69%
2.75%
2.52%
0.87%
10.24%
5.05%
20.28%
5.40%
5.28%
Community Services (3XX)
Site Acquisition & Improvement (45X)
Debt Service (5XX)
Total Expenditures
Transfers
671,192
6,112,261
19,400,100
$ 813,923,529
60,642,400
0.08%
0.70%
2.22%
Total Expenditures and Transfers
874,565,929
6.93%
100.00%
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DPS FY 2007 Proposed Budget
General Fund/General Purpose
Expenditures (Fund 11)
Instruction 37.69%
Pupil Support Services 2.75%
Instructional Support 2.52%
General Admin Support 0.87%
School Administration 10.24%
Business Services 5.05%
Operation and Maintenance 20.28%
Transportation 5.40%
Central Services 5.28%
Community Services 0.08%
Site Acquisition 0.7%
Debt Service 2.22%
Transfers 6.93%
Appropriations Estimates Only
NOTE: For purposes of this presentation expenditures are
synonymous with appropriations.
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DPS FY 2007 Proposed Budget
General Fund Instructional Expenditures
36%
Instruction
Non-Instruction
64%
Total Instructional Expenditures
50% Instructional Classroom
8%
Instructional Support Pupil
6%
Other Instructional Support
64% Total instructional expenditures
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DPS FY 2007 Proposed Budget
Expenditures FY 2007
General Fund
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The amount shown for transfers reflects
the need to transfer money to other funds
within the District.
Transfer Out - Fund 22 $70,474,443*
Transfer Out - Fund 21
2,808,000
Transfer In - Fund 14 (12,712,552)
Net Transfers
$60,569,891
* This amount is needed to remain compliant with
special education guidelines.
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DPS FY 2007 Proposed Budget
Transfer Detail
FY 06
Revised
Budget
Description
Fund 21 Athletics
$
Fund 22 Special Ed.
Fund 12/14 Special Projects
Total
2,608,001
FY 07
Projected
Transfers
$
2,808,000
79,591,946
70,474,443
(12,555,734)
(12,712,552)
$ 69,644,213
$ 60,569,891
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DPS FY 2007 Proposed Budget
General Fund/General Purpose (Fund 11) Appropriations
By Function
FY 2006 Adopted
Instruction (1XX)
$ 400,770,765
Pupil Support Services (21X)
25,065,785
Instructional Staff Support Services (22X)
17,185,900
General Admin Support Services (23X)
7,464,340
School Administration (24X)
106,694,959
Business Services (25X)
63,613,567
Operation and Maintenance (26X)
150,891,904
Transportation (27X)
40,863,325
Central Services (28X)
56,100,844
Community Services (3XX)
599,985
Site Acquisition & Improvement (45X)
Debt Service (5XX)
Total Expenditures
Transfers
Total Expenditures and Transfers
FY2007
$ 329,635,342
24,076,226
22,047,999
7,575,971
89,534,169
44,175,875
177,332,605
47,194,301
46,167,488
671,192
6,015,950
1,482,500
$ 876,749,823
69,644,213
6,112,261
19,400,100
$ 813,923,529
60,642,400
$946,394,037
874,565,929
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DPS FY 2007 Proposed Budget
Fund Balance Analysis / FY 07 Ending Reserves
FY 06
FY 07
Description
Ending Fund
Ending
Balances
Reserves
Reserve for repayment of
delinquent taxes
Undesignated
Total Fund Balance
$2,000,000
$2,000,000
$14,676,727
$16,676,727
$14,676,727
$16,676,727
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DPS FY 2007 Proposed Budget
Other Operating Fund Information/ Projections
Description
Fund 14 Designated Special
Revenue
Expenditures
$324,571,115
$311,993,072*
Fund 13 Adult Education
$ 4,467,667
$ 4,467,667*
Fund 21 Athletics
$2,808,000
$2,808,000
Fund 22 Special Education
$161,911,006
$232,383,449*
Fund 25 Food Service
$ 42,898,131
$ 42,898,131*
Fund 31 Bond Redemption
$123,710,322
$115,600,000
$35,000
$1,109,011
$200,000
$4,004,313
$5,000,000
$31,859,508
Purpose Grants
Fund 32 Judgment Levy
Fund 41 Durant Bond
Fund 44 Bond Program
*These Funds are included in the analysis for the General Fund
* This fund is presented as balanced however any surplus will be provided to the
General fund at year end
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DPS FY 2007 Proposed Budget
Comments
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This budget has little, if any flexibility.
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Minor changes in receipt of revenues or
minor increases in expenditures will
require mid-year adjustments, typically
in November and February.
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DPS FY 2007 Proposed Budget
Comments
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Organizational budget discipline must
continue to be enforced in order to
meet the requirements of the Deficit
Elimination Plan.
Increased use of the budget controls
within our financial system will
continue to be utilized to ensure this is
accomplished.
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DPS FY 2007 Proposed Budget
Actions Taken
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Budget for purchased services, supplies, equipment, travel,
and consultants were reduced in all departments.
Closely monitor and review overtime in all departments.
Reduce the textbook adoption.
Imposed restrictions on hiring and travel.
Implementation of Zero-Based Budgeting (ZBB) for central
office staff.
Target-marketing for specific schools and programs.
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DPS FY 2007 Proposed Budget
Legislative Efforts
■Single
gender schools
■The
House Education Committee passed
House Bill 4264, sponsored by a
Representative of Detroit. This bill would
allow the Detroit Public Schools to create
single-gender classrooms or schools. This
bill is expected to come before the full House
this week. It is expected that the bill will be
amended on the House floor to address the
Elliott-Larsen prohibition.
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DPS FY 2007 Proposed Budget
Legislative Efforts
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Declining Enrollment
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The State does not currently assist large
school districts with declining enrollment.
Unlike smaller school districts, the State does
not allow larger school districts to average
declining student counts over multiple years.
Therefore, the impact of declining enrollment
is felt immediately.
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DPS FY 2007 Proposed Budget
Additional budget detail will become
available as the legislative, labor
negotiations, and budget amendment
processes continue.
The Proposed Budget has been posted on
our web site.
www.detroitk12.org
The site will be updated once the Final
Budget has been Adopted.
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