Board of Education Work Session February 19, 2018 Agenda Topics: - - PowerPoint PPT Presentation

www.k12northstar.org/budget

Fairbanks North Star Board School District

Board of Education Work Session February 19, 2018

Agenda Topics:

• Borough Deferred Maintenance Challenges
• Borough Tax Cap
• Borough Revenue Update & Challenges
• 2018‐19 Proposed Budget Work

Matt Cooper – Borough Assembly Finance Committee Chair mcooper@fnsb.us Jim Williams– Chief of Staff Mayor’s Office jwilliams@fnsb.us

Welcome!

The objective of the district’s budget process is to develop a budget that is

“a long‐term perspective and not simply an exercise in balancing revenues and expenditures one year at a time”.

National Advisory Council on State and Local Budgeting Board Policy: Budget Committee Fund Balance

Proposed Approved Variance 2018-19 2017-18 $$ %

Local Revenues Local Borough Contribution $50,000,000 $51,145,400 $(1,145,400)

• 2.24%

Building Rental Fees 270,000 270,000 0.00% E-Rate Reimbursement 500,000 500,000 0.00% Other Local Sources 218,600 218,600 0.00% Correspondence Fees 25,000 25,000 0.00% Local Revenue TOTAL 51,013,600 52,159,000

• 1,145,400
• 2.20%

State Revenues Foundation Funding 114,351,957 115,209,800

• 857,843
• 0.74%

Quality School Initiative 412,860 414,480

• 1,620
• 0.39%

On-base Schools Contract 1,450,000 1,450,000 0.00% Other State Revenues 135,000 135,000 0.00% TRS On-Behalf Payments 10,699,014 10,699,014 0.00% PERS On-Behalf Payments 944,124 944,124 0.00% State Revenue TOTAL 127,992,955 128,852,418

• 859,463
• 0.67%

Federal Revenue Other Direct Federal (ROTC) 304,560 304,560 0.00% Impact Aid 14,000,000 15,427,953

• 1,427,953
• 9.26%

Medicaid Reimbursement 550,000 550,000 0.00% Federal Revenue TOTAL 14,854,560 16,282,513

• 1,427,953
• 8.77%

Other Financing Sources Use of Fund Balance 2,810,000 7,575,000

• 4,765,000
• 62.90%

Other Revenue TOTAL 2,810,000 7,575,000

• 4,765,000
• 62.90%

$196,671,115 $204,868,931 -$8,197,816

• 4.00%

Local 25.9% State 65.1% Federal 7.6% Other 1.4% FY19 Operating Fund Revenue

Salary & Benefits 85.86% Utilities & Building Costs 4.05% Other Purchased Services 5.27% Other 1.35%

FY19 Operating Fund Expenditures

Supplies & Equipment 3.47%

Proposed Approved Variance 2018-19 2017-18 $$ %

Instruction 87,739,245 92,646,316

• 4,907,071
• 5.30%

Special Education 34,470,419 34,338,976 131,443 0.38% Student Support Services 20,628,215 20,900,340

• 272,125
• 1.30%

School Admin & Support Services 13,750,009 13,775,892

• 25,883
• 0.19%

District Admin & Support Services 13,288,854 13,710,302

• 421,448
• 3.07%

Operations & Maintenance 22,712,644 23,989,457

• 1,276,813
• 5.32%

Student Activities 1,107,285 2,115,183

• 1,007,898
• 47.65%

Other 2,974,444 3,392,465

• 418,021
• 12.32%

Total

$196,671,115 $204,868,931

• $8,197,816
• 4.00%

By Category By Function

78% overall instructional functions

Full Day K Added in 2018‐19  Anderson Elementary  Arctic Light Elementary  Denali Elementary  Nordale Elementary  Woodriver Elementary 13 FTE Aides = $450,000 Title IX Specialist Compliance with OCR guidelines related to student discipline issues $175,000 K‐6 Reading Program replace 2008 edition $615,000

Investments

Strategic Plan Goal & Objective

• 1. Personalized Learning
• Full Day Kindergarten: All kindergarteners

will have full‐day options.

Strategic Plan Goal & Objective

• 4. Organizational Excellence
• Curriculum System: Redesign our curriculum

system to be agile and adaptive to change, keeping materials and sources relevant.

Strategic Plan Goal & Objective

• 1. Personalized Learning
• Support Services: Support academic and

social/emotional needs of students.

Investments

Strategic Plan Goal & Objective

• 4. Organizational Excellence
• Operational Support: Execute efficiency and

best practice in operational support and financial management

EQUIPMENT REPLACEMENT INTERNAL SERVICE FUND

• Budgetary pressures impede expenditure for equipment replacement
• Obsolete equipment does not consistently perform at expected service level
• Deferring replacement impede educational experience
• Multi‐year sustainable plan

Expand to include other asset classifications

1st Priority – Instructional Devices

Designated Purpose Fund to provide stabilization to budgeting process

Summary Adjustments

Expenditure Adjustments $ 3,800,000 Salary & Benefits Contractual Obligations $ 450,000 Full Day K Expansion $ 615,000 Curriculum Materials $ (4,750,000) Class Size Adjustment $ (1,000,000) Student Activities $ (2,475,000) Savings from Health Plan restructure (and WC) $ (1,350,000) Transportation & Nutrition Services Subsidy $ (1,750,000) Custodial Restructure $ (455,000) DW Art Teachers $ (445,000) Secondary Library Assistants $ (500,000) Restructure Alternative Programs (SMART, BEST, GHA) $ (340,000) Net other program reductions $ (8,200,000) Less Expense than 2017‐18 Revenue Adjustments $ (1,145,000) Local Borough Contribution $ (860,000) State Foundation Revenue (57 less ADM projected) $ (1,430,000) Federal Impact Aid (based on 5 year average) $ (4,765,000) Use of Fund Balance $ (8,200,000) Less Revenue than 2017‐18

Operating Fund

2018-2019 Proposed Budget

Fairbanks North Star Borough School District

Overall Reduction 4%

2018‐19 Proposed Class Size

Elementary

+2.0 PTR with 10% Threshold

2017‐18 Target 2017‐18 Projected Class Size Adjustment Proposed 2018‐19 Target 2018‐19 Projected Class Size 2018‐19 Impact to Projected Class Size Proposed 2018‐19 Threshold 2018‐19 Upper Threshold 2017‐18 Status Quo 2018‐19 Impact to Upper Limit Elementary FTE Adjustment

Kindergarten Grades 1 thru 3 Grades 4 thru 6 22.5 24.0 26.0 21.7 23.3 25.8 2.0 2.0 2.0 24.5 26.0 28.0 21.7 25.5 28.1 0.0 2.2 2.3 10% 10% 10% 27.0 28.6 30.8 27.0 28.8 31.2 0.0 ‐0.2 ‐0.4

‐3 Enrollment ‐23 Class Size ‐26 Reduction

Secondary

+ .5 PTR

2017‐18 Target Adjustment Proposed 2018‐19 Target Secondary FTE Adjustment

Grades 7 thru 8 Grades 9 ‐ 12 28 30.5 0.5 0.5 28.5 31.0

‐12.2 Enrollment ‐2.5 Class Size ‐14.7 Reduction

https://premierutils.k12northstar.org/class_size2/

Class Size Class Size Dashboard (Live Data)