Transcript Update on FB 11-13 Operating Budget Committee on Budget & Fiscal Accountability Board of Education James Brese Assistant Superintendent and CFO January 18, 2011

Update on FB 11-13 Operating Budget
Committee on
Budget & Fiscal Accountability
Board of Education
James Brese
Assistant Superintendent and CFO
January 18, 2011
Fiscal Biennium 2011-13
Board of Education approved
On October 21, 2010
Not changed* in
Executive Budget
(*except two special fund ceiling increases)
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DOE Budget Programs
EDN
Title
Description
100
School Based Budgeting
Classroom instruction; curriculum programs; atrisk programs.
150
Comprehensive Student
Support Services
Special education; school-based behavioral health;
autism; other related services.
200
Instructional Support
Support for curriculum, instruction and students;
assessment; system accountability/monitoring;
and complex areas.
300
State Administration
Board of Education; Superintendent;
communications; civil rights compliance; fiscal
services; human resources; and information
technology.
400
School Support
School food services; utilities; facilities planning;
construction; repairs and maintenance; student
transportation.
500
School Community Services
After-school Plus (A+) program; adult education.
3
Modified Zero Based Budgeting
(for state level and centralized programs)
• Goal: reallocate existing funds to cover recurring
unbudgeted needs within B&F general fund ceiling
• Identify items for additional budget request
• “Modified” ZBB because:
• Not required to justify positions; budgeted
positions remained constant, no new positions
allowed
• Provided base amount of non-salary funds for
programs with positions
• Additional funds could be requested above the base
amount, along with justification
4
B&F Instructions for FY 12 & 13
September 23, 2010
• Restore $86.4M general fund furlough savings
• Restore $43.0M non-recurring WSF reduction
• Total general fund restorations = $129.4M
• Adjusted DOE general fund ceiling = $1,382.8M
• Departments could:
Request tradeoffs/transfers, but no significant increases in
expenditures
• List program increases for consideration by the new
administration
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General Funds ($ in Millions)
EDN
100
150
200
300
400
500
Total
FY11
FY12 Executive
Act 180/10
Budget*
Variance
$705.2
$791.4
$86.2
306.6
322.2
15.6
22.0
46.2
24.2
42.9
43.7
0.8
171.8
174.2
2.4
4.9
5.1
0.2
$1,253.4
$1,382.8 $129.4
*FY13 Executive General Fund Budget is the same as FY 12
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General Fund Budget FY 2011-12
$74,269,699
5%
$990,970,580
72%
$298,731,345
22%
Central Services Total
Complex Area Total
$18,847,845
1%
School Total
State Offices Total
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General Fund FTEs FY 2011-12
21,159.28 FTEs
614.5
3%
1,752.5
8%
18,485.775
87%
306.5
2%
Central Services Total
Complex Area Total
School Total
State Offices Total
8
DOE Centralized Services
• Electricity bills and other utilities
• Network infrastructure support/development
• School food services
• Student transportation
• Diagnostic services for SPED services qualification
• Personnel hiring, recruitment, and recordkeeping
• Workers’ Compensation
• Unemployment benefits administration
• Financial accounting and reporting
• IT development, implementation, operations
• Litigation support
• Autism, school based behavioral health
• Special education provision and recordkeeping
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DOE Statewide Responsibilities
• Strategic Planning
• Student Achievement Standards Development
• Budget Preparation and Execution
• Teacher Certification (Hawaii Teacher Standards Board)
• Hawaii State Assessments
• Policy Development
• Internal Audit
• Compliance with US DOE and State Regulations
• Federal Reporting Requirements
• Inter-governmental Relationship Management
10
DOE FY 2011-12 Budget $1.8 Billion
All Means of Finance
Weighted
Student
Formula (WSF)
$787.4 Million
Federal Funds
$150.0 Million
Special
Education
(SPED)
$202.7 Million
Other Programs
$112.7 Million
Student
Transportation
$52.3 Million
Other SPED &
Student Support
Programs
$171.4 Million
Other Centrally
Expended
$122.6 Million
Facilities (Repairs
& Maintenance)
$48.3 Million
Utilities
$59.5 Million
Food Services
$107.7 Million
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Summary
WSF
Categorical,
SPED,
Federal
Expended by Principals
for Students
69%
≈ $7,294 per student
(excludes fringe benefits)
Centralized Expenses
for Students
24%
≈ $2,557 per student
Other Centralized Expenses for Schools 7%
≈ $714 per student
93% of Budget
Expenditures per student are based on SY 2011-12 Projected Enrollment Count
12
History of Budget Reductions Starting FY 2008-09
Annual Amount
Description
($10.3 M) 2008 Legislative reduction in Act 158/08, beginning FY 2008-09
(5.7 M) “Non-recurring costs” reduced by Department of Budget and Finance
(B&F) in Fiscal Biennium 2009-11 budget, including -9.00 FTEs
(40.0 M) Reductions approved by Board of Education October 9, 2008, including
-239.5 FTEs
(43.0 M) 2009 Legislative reduction to EDN 100 in Act 162/09; a proviso in
section 163 states it shall be restored in Fiscal Biennium 2011-13
(0.3 M) 2009 Legislative reduction to programs in EDN 150 and 400
(127.7 M) Executive and BOE approved reduction FY 2010-11
(15.0 M) Executive reduction FY 2010-11
(2.1 M) Act 180/10: A+ subsidy deleted; $22M was reduced from categorical,
state, and complex area programs and added to WSF
($244.1 M) Cumulative impact thru FY 2010-11
129.4 M Annual restorations in Fiscal Biennium 2011-13 Executive Budget
($114.7 M) TOTAL: Cumulative annual impact on general funds FY12, FY 13
13
Total Department of Education
Budget ($ in Millions)
All Means of
Financing
General
Federal (ceiling)
Special (ceiling)
Trust (ceiling)
Interdept Transfer
Revolving (ceiling)
Federal Stimulus*
TOTAL
FY11
FY12 Executive
Act 180/10
Budget
Variance
$1,253.4
$1,382.8
$129.4
252.0
263.6
11.6
42.0
46.3
4.3
13.7
33.0
19.3
14.2
10.6
(3.6)
22.8
30.4
7.6
53.8
47.9
(5.9)
$1,651.9
$1,814.6
$162.7
*Federal Stimulus:
FY 11 = ARRA SFSF Part A
FY 12 = Education Jobs and Race to the Top
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Additional General Fund Items for
Consideration
Description (in alphabetical order)
Athletics – restoration of prior cuts
Families for R.E.A.L. program
Annual
Amount
$1.5 M
$1.0 M
Lease payments for new Enterprise Resource
Planning project (fiscal systems)
$5.0 M
Skilled nursing services – contract for services
previously provided by DOH
$2.1 M
Student Transportation shortfall
TOTAL
$19.6 M
$29.2 M
15
Special Fund Ceiling Increase
Requests not approved by B&F,
added to List of “Items for Consideration”
EDN
Description of Special Fund
Current ceiling level
FY 2011-12
increase amount
FY 2012-13
increase amount
100
Reimbursement for Lost
Textbooks & Equipment
(current ceiling $750,000;
request is to double ceiling)
$750,000
$750,000
400
Community Use of School
Facilities (current ceiling is
$2M, request is to increase to
$4.8M)
$2,800,000
$2,800,000
16
Act 167/10
Instructional Time
SY 11-12
SY 12-13
SY 13-14
SY 14-15
SY 15-16
(potential)
Minimum days per year
180
180
190
Minimum hours per year-elementary
915
1,080
1,140
Minimum hours per year-secondary
990
1,080
1,140
• Requires collective bargaining
• Increases in cost need to be
appropriated by Legislature as CB
increases
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B&F Instructions (New Administration)
January 7, 2011
• May request additional trade-offs and transfers
• May request replacement of general fund programs
with other funds (e.g. federal, revolving, special,
trust)
• May request general funds for needs related to
health & safety, statutory requirements or court
mandates, direct public services, department-wide
impact, direct support services to other State
agencies, or revenue collection and processing
• DOE is not recommending any changes to BOE’s
10/21/10 approved budget request
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