[PPT] - Austin in ISD FY2019 Preliminar ary Budget th Presentation April PowerPoint Presentation

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Austin in ISD

FY2019 Preliminar ary Budget

1

April 30th

th Presentation

n to

Board of Trustees Nicole Conley Johnson

n,

Chief Business & Operation

ns Officer

Travis Zander, Director

r of Budget

Attachment 1

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MISSION CRITICAL:

Instructional Core
Literacy Plan
Customer Service
Whole Child
Technology
Recruitment & Retention

EFFICIENCY:

Pursue additional revenue, costs savings and

efficiencies

Promote integrated partnerships
Work to reduce investments in programs &

initiatives that have not produced sufficient results

TRANSPARENCY:

Provide essential financial information and data
n district budget to enable the public to

actively participate in the process

Provide ample opportunity for community

engagement and feedback

How do we pay for Austin in ISD?

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Austin in ISD Strategic gic Plan

“Reinventing the urban school experience”

CORE BELIEF ONE: All students will graduate college-, career-, and life-ready. CORE BELIEF TWO: We will create an effective, agile, and responsive organization. CORE BELIEF THREE: We will create vibrant relationships critical for successful students and schools.

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Our r Strat rategic Appro roach to Developing the Budget et

Our budge get challenge ge provide des the opportunity to realign gn our work to best suppo port schools, , therefore, , the Preliminary Budge dget:

Realigns resources to support Strategic Plan

initiatives for: Literacy, school safety, enrollment growth and customer service.

Minimizes cuts to instructional core by

reducing central support services first.

Strategically replaces outdated, under-

effective programs as district adopts “reinvention” programs into its instructional core.

Leverages and explores external sources to

secure other funding needs where programming needs are aligned.

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State Funding:

No changes to school finance laws
Estimates State funding formula per capita rate will increase from $207 per WADA in FY2018

to $375 per WADA in FY2019

Local Tax Revenue

Increase in Net Taxable Value (Preliminary Certified) of approximately 10.07 percent
Property tax collectability rate of 100.0 percent when you account for delinquent collections
No Change to M&O Tax Rate ($1.079 per $100 of taxable value)
Maintains current tax exemptions:
$25,000 Homestead Exemption required by state
Over 65- maintains the local over 65 exemption of $25,000 in addition to the state

required $10,000

Disabled Exemption-maintains the local disabled exemption of $15,000 in addition to the

state required $10,000

Historical Designated Property Exemption

FY2019 Prel eliminary ary Expen enditu ture e Budget et Assumpti tions

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FY20 2019 19 Preliminary ry Expenditure Budget Assumptions (Cont.)

Enrollment:

Enrollment is estimated to decline by 1,600+ students in FY2019 according to cohort

data, with continuing declines in the outyears

Adjustments for projected WADA based on trends, i.e. eco dis, bilingual, etc.

Compensation:

No budget adjustments to date for employee salary increases(under negotiation)
Maintains District $545 per employee per month contribution towards health plan

Other Sources:

Assumes City/County reauthorization of PSSs, Afterschool and FRCs
General Fund Budget proposes use of approximately $27.3 million in reserves to

balance budget shortfall

Year-end reserve levels for FY2019 are expected to be within Board policy,

however, out-year levels are projected to be below stipulated policy if no budget actions are taken

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FY20 2019 19 Preliminary ry Budget Tax Rates

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https://www.austinisd.org/budget/mytaxdollar

Tax Rates FY2016 Adopted FY2017 Adopted FY2018 Adopted FY2019 Preliminary M&O $1.079 $1.079 $1.079 $1.079 I&S $0.123 $0.113 $0.113 $0.113 Total Tax Rate $1.202 per $100 of taxable value $1.192 per $100 of taxable value $1.192 per $100 of taxable value $1.192 per $100 of taxable value

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FY2019 Prel eliminary ary Budget et Overvi rview of Expenditures res by Fund

Fund

(in millions)

FY2018 Amended FY2019 Preliminary $ Change % Change General Fund $1,332.4 $1,442.9 $110.5 8.3% Food Service $39.9 $40.7 $0.8 2.0% Debt Service $135.8 $128.2 ($7.6) (5.6%) Total $1,508.1 $1,611.8 $103.7 6.9% Less Recapture $546.0 $669.6 $123.6 22.6% Total Operating Expenditures $962.1 $942.2 ($19.9) (2.1%)

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Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

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General Fund (Ope perating Expe penses) 56% 56% Food d Servi rvice ce 3% 3% Debt bt Service ce 8% 8% Recapt pture 33% 33%

FY2019 Prel eliminary ary Budget et All Funds Budgeted Expenditures res

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Robinhood represents over 1/3

f the district’s total

adopted budget.

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FY20 2019 19 Preliminary ry Budget General ral Fund Revenue

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FY2018 FY2019 Amended Preliminary Budget Budget Local 1,208.9 $ 1,313.2 $ 104.3 $ 8.6% State 62.6 $ 78.4 $ 15.8 $ 25.2% Federal 28.0 $ 24.2 $ (3.8) $ (13.5%) Total 1,299.5 $ 1,415.8 $ 116.3 $ 8.9% Less: Recapture 546.0 $ 669.6 $ 123.6 $ 22.6% Operating Revenue $753.5 $746.2 ($7.3) (1.0%) Revenue Source (millions) $ Change $ Change

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

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FY2019 Preliminary Budget Overview erview General eral Fund Expen enditure

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Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

Fund

(in millions)

FY2018 Amended FY2019 Preliminary $ Change % Change Total Revenue $1,299.6 $1,415.8 $116.2 8.9% Less: Recapture ($546.0) ($669.6) ($123.6) 22.6% Net Revenue $753.60 $746.20 ($7.40) (1.0%) Total Operating Expenditures $786.40 $773.3 ($13.1) (1.7%) Net Other (Sources) Uses ($2.10) ($0.30) $1.8 (85.7%) Total Expenditures and Other (Sources) Uses $784.3 $773.6 ($10.7) (1.4%) Budgeted Net Change in Fund Balances ($34.9) ($27.4) $7.5 (21.5%) Projected Hiring Lag and Unspent at Year End $8.0 $8.0 Projected Net Change in Fund Balance ($34.9) ($19.4) $15.5 (44.4%)

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Payroll Costs 86.2% Purchase & Contracted Services 8.7% Supplies 3.4% Other Operating Costs 1.6% Capital Outlay 0.1% Debt Service 0.1%

FY2019 Prel eliminary ary Budget et General eral Fund by Objec ject

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FY2019 19 Preli limina inary Budget

General al Fund By Function

(Excluding Chap apter er 41)

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General Fund Functional Area

(in millions)

FY2019 Preliminary Budget

% of Budget

Instruction $434.5 56.2% Instructional Resources & Media Services $11.0 1.4% Curriculum & Staff Development $12.9 1.7% Instructional Administration $15.3 2.0% School Administration $51.2 6.6% Guidance & Counseling Services $25.0 3.2% Attendance & Social Work Services $4.9 0.6% Health Services $8.8 1.1% Pupil Transportation $31.9 4.1% Co-Curricular Activities $15.6 2.0% Subtotal Instruction and Student Support $611.2 79.0%

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

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FY20 2019 19 Preliminary ry Budget General eral Fund By Function

(Excluding Chapter 41) (cont.)

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General Administration $22.5 2.9% Community Services $7.3 0.9% Subtotal Central & Community Services $29.8 3.9% Plant Maintenance $84.8 11.0% Security & Monitoring Services $13.2 1.7% Data Processing Services $22.3 2.9% Debt Services $0.5 0.1% Facilities Acquisition & Construction $0.1 0.0% Payments-Shared Services Arrangements $4.1 0.5% Other Intergovernmental Charges $7.4 1.0% Subtotal Operations & Infrastructure $132.3 17.1% Grand Total $773.3 100.0%

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

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FY2019 Prel eliminary ary Budget et Reallocating Within to Fund Strategic Needs

Central department budgets were reallocated to ensure support for:
Montessori expansion at Winn Elementary
Continuation of Early College expansion and Career Launch
Dyslexia support at Covington Middle School
Balanced Literacy professional development for 1st grade teachers
Dual Language MS and HS allocations transferred to ES to eliminate mixed classes
RFP solicitation for nurses released to see if current investment could yield more services from other

providers

Identified approx. $3 million in potential budget expenditures that could be reallocated to offset costs

from pending salary negotiation:

Transfer $1 million in expenditures to Instructional Materials allotment
Approximately $750k in Federal Title funds could be used to support supplemental needs

currently being funded by Local

School lunchroom monitor allocations of $1.2 million
Investment for PPfT remains

ns in budget at $3 million and $1.6 million for proposed bilingual stipends are being considered thru negotiations

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FY2019 Prel eliminary ary Budget et General eral Fund Operat erating Expen enditures es by Objec ject (Exc xcluding Recap aptu ture) e)

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FY2018 FY2019 General Fund by Major Object Amended Preliminary

(in millions)

Budget Budget $ Change % Change Payroll Costs

$667.7 $666.3 ($1.4)

(0.2%) Purchase & Contracted Services

68.2 67.5 (0.7)

(1.0%) Supplies

35.2 26.6 (8.6)

(24.5%) Other Operating Costs

13.9 12.1 (1.8)

(12.9%) Capital Outlay

0.5 0.5 (0.0)

(3.6%) Debt Service

0.9 0.4 (0.5)

(55.8%) Totals

$786.4 $773.4 ($13.0)

(1.7%)

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

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FY2019 Preliminary Budget Proposed Adjustments (Payroll)

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

Payroll Changes (Millions) Decreases Payroll Changes Increases Staffing Changes due to declining enrollment ($3.4) Implement HUB District Wide $0.1 FICA Alternative Plan ($3.0) Worker's Compensation $4.0 Lucy Read FMP Payroll savings ($2.3) Increase Annual Certified Bilingual Classroom Teacher Stipend $1.6 Final Phase of Custodial Staffing Implementation ($1.3) Increased cost of Insurance due to full year cost of $545 PEPM $1.4 Change local policy to eliminate partial pay during extended leave ($0.5) TRS Increase $1.1 Eliminate District Mail ( Personnel Only) ($0.1) School Safety and Security Plan $1.0

Total Payroll Decreases

($10.6)

Total Payroll Increases

$9.2

Net Total Payroll Changes

($1.4)

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FY2019 Preliminary Budget Proposed Adjustments (Non-payroll)

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Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

Non Payroll Decreases (Millions)

Amount

Non Payroll Increases

Amount Capital cost and one time purchases not occurring FY 2019 ($1.5) Property Appraisal and Collection Fees 0.6

Misc. Contracted Services (including tutoring,
utside marketing, etc.)

(2.2) State Share: Texas School of the Blind 0.4 Elimiate district-wide (macro) marketing contract (0.5) Insurance and Bonding Costs 0.3 E-rate Transfer (2.0) Student Tuition - Other than public Schools 0.3 Adjustments to supply budgets (3.1) Telephone, Telecom, Cell Phone 0.1 School Bus Stop arm expenditures (offset as a revenue) (1.0) Customer Service Expansion Training, Surveying 0.2 50% reduction to employee travel and food (non student) (0.9) Expand Marketing to Include TUP Schools 0.1 Eliminate Portable Leases and Moves (0.6) Decrease in rental fees due to purchasing of items in anticipation of emergency (chillers etc.) (0.6) Computer Related Equipment (0.5) Decrease in the purchase of textbooks as we continue to implement Blend (0.3) Increase in field trip reimbursements (0.2) Utility Cost (Electricity, water, Gas) (0.1)

Total Non Payroll Decreases

($13.5)

Total Non Payroll Increases

$1.9

Net total non payroll changes

($11.6)

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Recap aptu ture e Puts ts Pres essure e on AISD’s Budget

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(Millions) M&O Collections Chapter 41 Payments M&O Growth Chapter 41 Growth Net Percent to total Collections

FY2016 Actual

$924 $266 28.8% FY2017 Actual $1,056 $403 $132 $137 ($5) 38.2%

FY2018 Projection

$1,186 $546 $130 $143 ($13) 46.0% FY2019 Projection $1,299 $670 $113 $124 ($10) 51.6%

FY2020 Projection

$1,397 $790 $98 $120 ($22) 56.5% FY2021 Projection $1,477 $888 $80 $99 ($19) 60.2%

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

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Impac act t of Recap aptu ture e on Taxp xpay ayer ers

20 $924 $1,056 $1,186 $1,299 $1,397 $1,477 $266 $403 $546 $670 $790 $888 28.8% 38.2% 46.0% 51.9% 56.5% 60.2% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 (Audited) (Audited) (Estimated) (Estimated) (Estimated) (Estimated) FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 MILLIONS M&O Tax Collections Chapter 41 Payment

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Impac act of Recapture e on Tax Bills s Averag age e Taxable e Homes estead ead

$1,285 $1,339 $1,366 $1,452 $1,589 $1,565 $1,836 $1,885 $1,890 $1,960 $2,073 $1,847 $2,703 $2,731 $2,653 $2,555 $2,502 $2,475 $472 $672 $924 $1,363 $1,755 $2,190 FY14 FY15 FY16 FY17 FY18 EST. FY19

City of Austin Other Entities AISD - retained AISD- recaptured by State

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*reflects advertised district contributions **includes FICA and district TRS contributions (x) 1.5% non-pensionable pay supplement

Under er Negotiat ation: : Total Compensation Historical al Analysis

17-18 1.5% $4.8 $8.6 $13.4 16-17 4.0% $15.7 $20.0 $35.7 15-16 3.0% $2.8 $14.7 $17.6 14-15 2.0% $0.0 $9.7 $9.7 13-14 0% (x) $0.0 $0.0 $0.0 TOTALS 10.50% $23.3 $53.0 $76.4 School Year (millions) Salary % increase AISD Insurance Increase* AISD Salary Increase** AISD Salary + Insurance Increase

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Under er Negotiat ation: Distri rict Health Care Contri ribution Compared ared to Peers ers

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District District Monthly Contribution to Health Insurance Annual Contribution to Health Insurance Estimated Savings @ Matching Contribution (millions) Austin ISD** $545 $6,540 Del Valle ISD $500 $6,000 $6.2 $6.2 Lake Travis ISD $500 $6,000 $6.2 $6.2 Eanes ISD $473 $5,676 $9.9 $9.9 Pflugerville ISD $400 $4,800 $20.0 $20.0 Round Rock ISD $370 $4,440 $24.2 $24.2 Manor ISD $354 $4,248 $26.4 $26.4 Hays CISD $351 $4,212 $26.8 $26.8 Leander ISD $320 $3,840 $31.1 $31.1 Austin ISD** $545 $6,540

Ft. Bend ISD

$530 $6,360 $2.1 $2.1 El Paso ISD $435 $5,220 $15.2 $15.2 San Antonio ISD $411 $4,932 $18.5 $18.5 Northside ISD $388 $4,660 $21.6 $21.6 Houston ISD $382 $4,590 $22.4 $22.4 Dallas ISD $317 $3,804 $31.5 $31.5

Ft. Worth ISD

$287 $3,444 $35.6 $35.6 Cypress-Fairbanks ISD $225 $2,700 $44.2 $44.2 Local Peers Urban Peers

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Budget et Stabilizat ation & Deficit t Plan anning Actions

1.

Implement spending freeze and cost controls to fund compensation needs and mitigate use of reserves

2.

Organize Budget Task Force

3.

Develop outyear budget reduction targets and stabilization options

4.

Implement engagement plan to obtain feedback on budget reduction

ptions to stabilize future budget shortfalls

5.

Establish system for evaluating and developing recommendations to sunset programs and initiatives

6.

Identify potential revenue options

7.

Identify short-term initiatives vs recurring funding needs

8.

Consider outyear FMP and Bond Project impact on operating budget, both expenditures and/or savings from costs avoidance and revenue

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Budget Milestones Going Forw rward

May 2018 18

Community Meetings on the FY2019 Preliminary Budget
04.26.2018 (Thursday)

Reagan High School, 6-7 PM

05.02.2018 (Wednesday)

Ann Richards, 6-7 PM

05.04.2018 (Friday)

Baker Center, 12-1 PM

June ne 2018 18

Board Conducts Public Hearing on Proposed Budget and Tax Rate
Board Adopts the Budget

July 2018 18

Travis Central Appraisal District (TCAD) Certifies Final Appraisal

Values

Aug 2018

Board Adopts the Tax Rate based on Final Appraisal Values

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QUESTIO STIONS NS

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