Transcript Slide 1
BCISD Budget Workshop
May 14, 2012
Anyone can hold the helm
when the sea is calm. P. Syrus
Welcome and Introductions
• Board Members
– My name is…
– I work at…
– Number of years on the Board…
• Budget Stakeholder
– My name is…
– I work at…
Budget and Compensation
Committee
• Serves in an advisory capacity to the district
leadership team
• Engages in productive dialogue while
maintaining a district level perspective
• Explore possibilities
• Communicate committee work and outcomes to
colleagues
• Has met April 24, April 26 and May 3
Desired Outcomes of Workshop
• Understanding of district funding, budget,
and current state and district funding
concerns
• Review District budget priorities as
developed by the BCC
• Review and discuss BCC feedback on
budget topics
• Increase collaboration and transparency
among stakeholders
Our Mission
Student
Achievement
Financial
Savings
Operational
Efficiency
Our Goals for 2012-2013
• Maintain quality instructional and support
programs.
• Achieve a balanced budget.
• Keep adequate reserve funds.
Collaboration and Transparency
• Board of Trustees
• Budget and
Compensation
Committee
• Budget Stakeholders
• Campus Leadership
• District Leadership
Budget and
Compensation
Committee
Budget
Stakeholders
Campus
Leadership
Board of
Trustees
District
Leadership
Two Main Components of the
Budget:
• Revenue
• Expenses
2011-12 Budgeted Revenue
•
•
•
•
Property Tax
State Funding
Federal
Other Local
TOTAL
17,869,564
5,625,163
1,535,000
246,000
25,275,727
71%
22%
6%
1%
100%
Two Challenges with the Current
State Funding
• Target Revenue
• Structural Deficit
Target Revenue
$5,471 per student
State Funding
State
Funding
Property
Tax
Property
Tax
It has not changed
significantly since 2006
even though costs have
risen
It is not equitable
Target Revenue
If BCISD had the same target revenue as other
districts…
$2.2 M
or
44 more
teachers
Marble Falls ISD
$6,003
$1.8 M
or
36 more
teachers
Llano ISD
$5,915
Equity Center Lawsuit
Texas Taxpayer & Student
Fairness Coalition
The goal of this lawsuit is to achieve a funding system
that treats all Texas Children fairly, and provides every
child the opportunity for a world-class education.
578 or 56.5% of all Texas School Districts are signed on
with one of the four lawsuits as of April 24th. They
represent 3.472 million students or 77.5% of Texas
students.
Taxpayer & Student Inequity
Average Tax Rates and Revenue per WADA
2011-12 SB 1 Revenue per HB 3646 WADA and 2010-11 Tax Rate
$9,000
Avg M&O Tax Rate (2010-11)
$1.15
$1.15
$8,500
$1.13
$1.13
$8,000
$1.11
$7,701
$7,500
$1.09
$7,000
$1.07
$1.06
$6,618
$6,500
$1.05
$6,000
$1.03
$5,591
$5,500
$5,221
$1.02
$5,227
$1.01
$1.00
$5,000
$0.99
Low 10%
Low 25%
Average
High 25%
Percent of Districts, Sorted Low-to-High Yield
High 10%
Adopted M&O Tax Rate
State & Local Revenue per WADA (after recapture)
Avg Rev per HB 3646 WADA
Taxpayer & Student Inequity
• Burnet CISD @ $1.04
– Yields $5,469 ($122 or 2.2% below State Avg.
• Burnet CISD @ $1.06
– Yields $5,769 ($178 or 3.2% above State Avg.
• Disparity from top 10% to bottom 10%
– $2,480 per weighted student
– $62,000 for each 22 student classroom
– This is the average of the top and bottom 10%
groups, not the extremes
Taxpayer & Student Inequity
• Extreme example of neighboring ISD
funding availability:
– Guthrie ISD $12,975 per student with a $.98
tax rate
– Patton Springs $5,194 per student with a
$1.04 tax rate
There are many more…
Much Ado About A Lot
Compressed
Tax Rate
Target
Revenue
Gain if at
Austin ISD
Funding
Level
Austin
$1.00
$6,101
-0-
Aldine
$1.09
$5,278
$63 Million
Alief
$1.00
$5,048
$57 Million
Amarillo
$1.00
$4,971
$41 Million
Fort Worth
$1.00
$5,127
$92 Million
District
Target Revenue
• Austin ISD
• Ft. Worth ISD
$6,101
$5,127
– A 6th grade math teacher in Ft. Worth with 22
students would have $24,350 more in
resources available to her annually if the
school was located in Austin.
What passes for a state funding
“system”
Same...
District
Tax Rate*
Revenue**
Alamo Heights
$1.04
$6,243
San Antonio
$1.04
$5,036
Glen Rose
$0.825
$8,424
Diboll
$1.04
$4,881
Austin
$1.079
$6,171
Amarillo
$1.08
$5,094
College Station
$1.00
$5,654
Jourdanton
$1.17
$5,652
Location
Size
Tax Rate
Revenue
*2010-11 M&O Tax Rate
**2011-12 SB 1 Revenue per HB 3646 WADA
Any successful effort to improve
our funding system must be won
on four levels:
•
•
•
•
In the Courts
In the Legislature
In the Media
In our Communities
The Structural Deficit Began in
2006
Property Tax
1/3
$6B
$10B
Gap
$8B
$14B
$4B
Cigarette and Franchise Tax
2011-12 Budgeted Expenses by
Major Areas
Area
Amount
Percent
Payroll
20,796,115
81.70%
Utilities
1,087,319
4.23%
478,151
2.24%
1,145,309
4.50%
Maintenance
484,360
2.20%
Technology
183,023
0.72%
Extracurricular
454,290
1.78%
Tax Appraisal
301,668
1.19%
Other
332,239
1.31%
Transportation
Campus Budgets
TOTAL
25,262,474
100%
92.67%
Chapter 41 for BCISD
• We are “Property Wealthy” ISD and are
subject to Chapter 41 of the Texas
Education Code, effective 9/1/2009.
• Burnet CISD’s wealth per Weighted
Student exceeds $319,500 therefore, by
statue, we become subject to Chapter 41
wealth equalization laws.
• BCISD ranks 197th out of 1,027 districts in
wealth with an estimated $415,423 per
Weighted Student.
What Chapter 41 means to BCISD
• “Recapture” or we write a check to the State of
Texas begins when BCISD reaches a level of
wealth equal to $476,500 per weighted student.
At current trends, this happens in 2016-17.
• Wealth is currently defined as Property Value
divided by Weighted Average Daily Attendance
(WADA). 2011-12 estimate is $ 415,423
• If values don’t increase, enrollment would have to
decline by 400 or 12.5% to reach recapture.
• At current enrollment, values would have to
increase 15% or $250 M to reach recapture.
Chapter 41 Summary
• Burnet CISD is “wealthy”… top 20%
• No effect on funding yet
• There are approximately 300 Texas School
Districts classified as wealthy and roughly 250 of
them are sharing their local tax revenues.
• Possible major changes before BCISD gets
there.
Why Was Education Funding
Cut?
Proposed State Budget for 2012-13
$156 Billion
25% Other
44% Public and Higher Education
$39B
$49B
$68B
$117B
75% Education
31% Health and Human
Service and Health
and Human Service
What Did the Cut Mean to
BCISD 2011-2012
• $2.054M reduction in 2011-2012 including
state funded “grants” (Technology, Pre-K)
• We are anticipating a $966K reduction in
state funding in 2012-2013
Response to Funding Cuts
Recognizing and responding to funding cuts,
BCISD has:
• Closed positions:
• Year Teachers Other Total
– 2010-11
– 2011-12
– 2012-13
11
19
14
3
18
9
14
37
23
Totals
44
30
74
BCISD 3-Year Budget Outlook
• Handout- Page 1
Compensation Outlook
• Handout- Page 2
Benefits Outlook
• Handout- Page 3A and 3B
Utilities Outlook
• Every dollar saved because of energy
conservation can be returned to the
classroom.
• Handout- Page 4
Transportation Outlook
• Transportation services in BCISD cost
$1.8M this year or 7.3% of the local
maintenance budget.
• 62 buses and 15 other vehicles
transported 2,300 eligible riders
approximately 901,804 miles in 2010-11.
• State aid formulas date back to 1984 and
will reimburse BCISD for approximately
31% of projected costs in 2012-13 .
Transportation Outlook
• 12 routes are currently identified that may
be combined, eliminated or transitioned to
satellite service (Tow & Briggs).
• Savings are estimated at $75,210 net of
State reimbursement.
• 217 riders of those routes are estimated to
shorten their ride times by 15 minutes
daily.
Attendance
• If we raise attendance by 1% it would
equal an additional $168,098 in funding.
Compensation and Benefits
• A $500 one time payment to teachers plus
an increase of $26 monthly in health
insurance contribution for all employees
will cost $226,000.
• A $500 one time payment to all other
professional staff and $250 for auxiliary
employees would add another $67,000 for
a total of $293,000 added to the budget.
Compensation and Benefits, cont’d
• Burnet CISD offers an employer sponsored 403b
program with a $.50 match for each $1.00
invested up to 3% of compensation.
• For 2011-12, 159 (63.3% of professional
employees participate. 78 (32.9%) of 236
support staff participate.
• Historically participation peaked at 64% and is
currently 48.7%.
• $341,942 or 2/3 of maximum is budgeted.
$251,556 is projected participation.
What about Fund Balance?
• BCISD’s available reserve funds will be
approximately $7.6 million.
• Those resources are available to the Board as a
tool to manage cash flow shortages as we begin
each school year (estimated $3 million).
• Then as reserves to meet any emergencies that
may arise (roof failures, HVAC equipment
replacements, etc.).
What about Fund Balance?, Cont’d.
• “Recommended” Fund Balance is:
– 2 months of operations
$4.5 m
– Federal grants (spent in advance) 1.0 m
– Non-cash items (inventories for ex.) .3 m
Total
$5.8 m
The additional $1.8 million is available to offset
future funding losses
What about the Rainy Day
Fund?
• Economic Stabilization Fund
• Legislators tapped the fund for
approximately 1.7B last session
• It replenishes every year with oil and gas
revenues
What about the Lottery
Proceeds?
• The lottery raises about $1B annually or
2 ½ % of the $40B annual public school
budgets.
AND
• When lottery money flowed into state
budgets dedicated to public education,
general revenue appropriations were cut
by a corresponding amount so NO new
money was ever realized by our schools.
Budget Priorities
• When you think about BCISD, what do you
believe should be our budget priorities?
– Effective Instructional Programs
– Adequate Quality Staffing
– Compensation
– Operational Efficiencies
– Technology
Budget Reductions
• When you think about possible budget
reductions, what ideas do you have for
each category listed below?
– Revenues
– Reductions
– Efficiencies
Budgetary Items, Proposals,
Feedback
• Revenues, Reductions and Efficiencies
• Handout- Page 5
In Closing…
• Have we achieved our desired outcomes?
– Understanding of district funding, budget, and
current state and district funding concerns
– Review District budget priorities as developed
by the BCC
– Review and discuss BCC feedback on budget
topics
• Questions
• Next Budget Workshop: June 11, 2012