2020-2021 PROPOSED BUDGET COVID 19 UPDATE 2 COVID REVENUE SOURCES - - PowerPoint PPT Presentation

2020-2021 PROPOSED BUDGET

COVID 19 UPDATE

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CARES/ESSER: CARES/ESSER: ★ Elementary and Secondary School Emergency Relief Fund (ESSER) – allocated to LEAs that received Title I, Part A funding in school year 2019-2020 ○ $739,703 ○ Offsets FSP funds in GF Offsets FSP funds in GF CORONAVIRUS RELIEF FUND: CORONAVIRUS RELIEF FUND: ★ Grant for reimbursement reimbursement of unbudgeted costs ○ Application in July ○ Costs from March 1

• May 20, 2020

FEMA: FEMA: ★ Provides for reimbursement of cleaning supplies, personal protective equipment –does not cover distance learning ○ Not likely to receive any funds

COVID REVENUE SOURCES COVID REVENUE SOURCES

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Budget Process & Drivers

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2020 2020-2021 BUDGET CALENDAR 2021 BUDGET CALENDAR

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CURRENT YEAR STATE VALUES: CURRENT YEAR STATE VALUES: ★ Funding lag no longer exists ★ Estimating state values a year in advance of actual notification ★ In environment of growing values, provided additional funding

HB 3 IMPACTS HB 3 IMPACTS

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SECOND YEAR OF TAX COMPRESSION: SECOND YEAR OF TAX COMPRESSION: ★ Further compression of M&O tax rate ★ Tax rate adopted in August/September ★ Continue receiving Fast Growth Allotment ★ Formula Transition Grant not generated in current scenario FULL FULL-DAY PRE DAY PRE

• K:

K: ★ Required to expand Pre-k program to full-day ★ Funding remains for half-day ★ Early Education Allotment of $1,925,000 ★ Implementation Costs of $7,244,793 (19-20 & 20-21/all funds)

2020 2020-2021 BUDGET CHALLENGES 2021 BUDGET CHALLENGES

COVID 19: COVID 19: ★ Forced closure of school in March through end of semester ★ Resulted in work from home and remote learning ★ Resulted in some savings in utilities, travel, contracted services ★ Resulted in lower revenues for rentals, ticket sales

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ECONOMIC IMPACTS: ECONOMIC IMPACTS: ★ Drop in fed funds interest rates ★ Lowered collection rate on property taxes ★ Changed projection of revenues ★ Drop in revenues forced reduction of expenditures BUDGET WORKSHOPS IN APRIL and MAY BUDGET WORKSHOPS IN APRIL and MAY

2017-2018 2018-2019 2019-2020 2020-2021 Enrollment

38,936 39,949 41,315 42,870

Property Value Increase

10.14% 10.30% 7.57% 5.82%

Tax Collection Rate

(excluding delinquent taxes)

99.69% 99.56% 98.88% 97.80%

M&O Tax Rate

$ 1.0400 $ 1.0400 $ 0.9700 $ 0.9487

I&S Tax Rate

$ 0.4719 $ 0.4700 $ 0.4675 $ 0.4675

2020 2020-2021 BUDGET PARAMETERS 2021 BUDGET PARAMETERS

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General Fund Budget

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Revenue Items to Note: Revenue Items to Note: ★ 2 cent drop in M&O tax rate (3 cent compression down, 4 golden pennies,

• ptional 5

th golden penny)

★ Revenues built assuming 5th golden penny ★ Maintain local optional homestead exemption of $3,000 for disabled and over 65 taxpayers ★ Tax collections estimated at lower overall collection rate of 98% ★ Other local revenues reduced based on COVID impact

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General Fund Budget

Expenditure Items to Note: Expenditure Items to Note: ★ Implementation of full -day Pre-k ★ Staffing formulas for lower class sizes ★ One-time payment equivalent to 2% salary increase ★ $1 million increase to Health Insurance Fund ★ New Positions of $15 million ○ 51% teachers ○ 27% special education ★ Position wage adjustments of $1.7 million ★ New campus salaries: ○ Balance of positions to open Danielson in 2020

• 2021

○ Start up positions for Tarvin Elementary in 2021-2022 ★ Funding to complete implementation of new ERP system

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General Fund Budget

Recommending “Alternate 2”: Recommending “Alternate 2”: ★ Overall deficit of $21,000,327 ★ Eliminates $742,546 in new position requests ★ Eliminates $643,004 in budget requests for travel ★ Eliminates $19,510 for Board travel ★ Reduces district contingency by $275,000 ★ Reduces allocation of funding for major maintenance projects by $1,706,496 based on noncritical projects ★ Recommending deficit budget ○ District has a healthy fund balance ○ Projecting $17 million surplus for 2019-2020

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General Fund Budget

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General Fund Revenues

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General Fund Revenues

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General Fund Revenues

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Student/ Instructional Support 14% Maintenance 8% 65 % of budget dedicated to Instruction

Breakdown by Function

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Payroll 89% of Total Budget EXCLUDES Transfers 9% of budget non- payroll/ non-utilities

Breakdown by Object

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Payroll 86% of Total Budget INCLUDES Transfers 12% of budget non- payroll/ non-utilities

Breakdown by Object

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General Fund Comparison

2019-2020 2020-2021 2018-2019

Amended Proposed Actual Budget Budget Change Revenues: Local Sources 267,522,245 $ 266,655,601 $ 267,490,482 $ 834,881 $ State Sources 70,338,121 88,489,878 97,071,746 8,581,868 Federal Sources 7,985,643 4,370,000 4,165,000 (205,000) TOTAL REVENUES 345,846,009 $ 359,515,479 $ 368,727,228 $ 9,211,749 $ Expenditures: Payroll 281,756,791 $ 310,910,656 $ 335,979,759 $ 25,069,103 $ Contracted Services 13,699,108 14,480,723 12,821,994 (1,658,729) Utilities 7,811,286 8,960,164 8,606,871 (353,293) Supplies & Materials 13,519,124 17,624,759 17,840,578 215,819 Other Operating 3,988,048 4,399,073 4,439,430 40,357 Capital Outlay 943,693 3,856,982 156,447 (3,700,535) TOTAL OPERATING EXPENDITURES 321,718,050 $ 360,232,357 $ 379,845,079 $ 19,612,722 $ Results of Operations 24,127,959 $ (716,878) $ (11,117,851) $ (10,400,973) $

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General Fund Comparison

2019-2020 2020-2021 2018-2019

Amended Proposed Actual Budget Budget Change Results of Operations 24,127,959 $ (716,878) $ (11,117,851) $ (10,400,973) $ Other Financing Sources/Uses Sale of Assets 28,651 $ 20,000 $ 20,000 $

• $

Transfer Out - Other (496,838) (310,000) (205,000) 105,000 Transfer Out - Healthcare (5,154,352) (5,300,000) (5,300,000)

• Transfer Out - Healthcare Addt'l Contribution
• (1,000,000)

(1,000,000) Transfer Out - 2 cents to Major Maintenance (11,916,496) (8,247,673) (3,377,966) 4,869,707 Other Uses - Settlements (450,246)

• Total Other Financing Sources/Uses

(17,989,281) $ (13,837,673) $ (9,862,966) $ 3,974,707 $ Net Change to Fund Balance 6,138,678 $ (14,554,551) $ (20,980,817) $ Beginning Fund Balance 144,401,231 $ 150,539,909 $ 135,985,358 $ Ending Fund Balance 150,539,909 $ 135,985,358 $ 115,004,541 $

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General Fund Analysis

If revenue projections are correct and spend 100% of budget,

• verall effect of

biennium is deficit of $3.2 million 2020-2021 Proposed Budget is sustainable and gives a year to plan for future years without drastic cuts to programs this year

2019-2020 2020-2021

Projected Proposed Actual Budget Change Revenues: Local Sources 263,130,481 $ 267,490,482 $ 4,360,001 $ State Sources 86,614,739 97,071,746 10,457,007 Federal Sources 4,385,993 4,165,000 (220,993) TOTAL REVENUES 354,131,213 $ 368,727,228 $ 14,596,015 $ Expenditures: Payroll 285,584,988 $ 335,979,759 $ 50,394,771 $ Contracted Services 10,853,170 12,821,994 1,968,824 Utilities 6,225,544 8,606,871 2,381,327 Supplies & Materials 14,073,153 17,840,578 3,767,425 Other Operating 2,965,314 4,439,430 1,474,116 Capital Outlay 2,996,240 156,447 (2,839,793) TOTAL OPERATING EXPENDITURES 322,698,409 $ 379,845,079 $ 57,146,670 $ Results of Operations 31,432,804 $ (11,117,851) $ Other Financing Sources/Uses (13,643,783) $ (9,862,966) $ 3,780,817 $ Net Change to Fund Balance 17,789,021 $ (20,980,817) $ (3,191,796) $ Beginning Fund Balance 150,539,909 $ 168,328,930 $ Ending Fund Balance 168,328,930 $ 147,348,113 $

Child Nutrition Budget

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Child Nutrition Budget

Debt Service Budget

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Debt Service Budget

Revenues reflect tax rate of $0.4675

Next Steps

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★ June 18: Public Hearing on Budget and Proposed Tax Rate ★ June 18: Board adopts 2020-2021 Budget ★ August: Board adopts M&O and I&S tax rates (could occur in September) ★ September: ○ Monitor enrollment ○ Evaluate staffing levels ○ Administration begins discussions on 2021-2022 budget ★ October: ○ Begin preliminary estimates of 2021-2022 budget ○ Ongoing evaluation of district costs ★ January 2021: Begin monitoring legislative actions

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Next Steps