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