Budget Update and 2016-2017 Operating Budget Board of Education - - PowerPoint PPT Presentation

Board of Education August 9, 2016

Budget Update and 2016-2017 Operating Budget

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2016-2017 Budget Update

CMS budget consists of three primary sources of funding:

• State
• County
• Federal/Other

Budget timeline is a challenge:

April 12 May 10 June 21 July 14 July 18 August 9

Superintendent presents budget proposal BOE approves budget request BOCC approves allocation State approved budget DPI released LEA allocation BOE approves final budget

What were the results of the final county and state approved budgets and the impact on our proposed budget?

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2016-2017 Budget Update

County Funding Update Since Proposal Approved in May County funding request vs. BOCC approved allocation increase: Sustaining Operations (School Resource Officer contract, transportation

model, teacher supplement for first-grade class size initiative)

$ 3,404,844 Investing In Our Employees (salary and benefits) 9,885,016 Student Growth And Additional Space (CMS and charter growth) 9,610,655 2016-2017 County Requested Increase $ 22,900,515 2016-2017 Approved Increase in County Allocation 11,291,441 COUNTY FUNDING GAP $ 11,609,074

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2016-2017 Budget Update

County Funding Changes Since Proposal

Impact on Proposed Budget

Adjustments to Proposed Budget Request

• Revision to Program Continuation

Eliminated school resource officer contract increase ($ .2M)

• Adjustment to Salaries and Benefits – (Proposed 3% increase for all staff)

Adjusted salary increase – Avg. 4.7% for teachers and other certified staff; 3.0% plus step for school-based administrators; 3% for non-certified $ 1.5M Added state approved one-time bonus - .5% for non-certified staff and school-based administrators $ .4M Adjusted retirement rate – proposed -15.32%; actual - average 16.33% $ 1.3M

• Changes to Charter School Pass-Through

Adjustment to charter funding estimate based on less than requested funding and two new charters not opening as planned ($ 3.3M) Total Net Change to Budget Request (.3M)

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2016-2017 Budget Update

Closing the Funding Gap

Impact on Proposed Budget

County Reductions to Base Budget

Redirects to State or Other Funding Sources Redirect digital tools/resources (contracts) to state using increase in digital materials funding $ (2,470,760) Redirect supplies to state using increase in instructional supplies state funding (248,250) Redirect pre-K snacks to state NC Pre-K funding (285,779) TOTAL $ (3,004,789) Central Office and Efficiency Reductions Reduce funding for utilities due to efficiency savings $ (1,101,189) Reduce funding for self-insurance contribution (895,492) Reduce funding for maintenance overtime, hiring freeze, mileage, child nutrition A/R obligations and

• ther department expenses

(1,622,463) TOTAL $ (3,619,144) Reduced Direct Services to Students and Schools Reduce summer school options offered $ (1,684,133) Reduce funding for K-5 literacy training (582,880) Reduce funding for technology devices (1,200,000) Reduce funding for Teach to One contract (268,750) Reduce funding for extended employment for the opening of new schools (227,103) Reduce funding for custodial overtime (727,011) TOTAL $ (4,689,877)

Total County Reductions to Base Budget $ (11,313,810)

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2016-2017 Budget Update

Key State Budget Changes Since Proposal

Impact on Proposed Budget

• Additional State Reductions –

Transportation (lower fuel cost) ($ .2M) Central Office ($ .1M)

• Key Adjustments to State Categorical Allotments –

Digital Materials/Textbooks $ 1.2M Instructional Supplies $ .2M

• Adjustments to Estimates in Proposal

Longevity $ 3.2M At-Risk Student Services Carryover $ 1.5M Summer Reading Camp Carryover $ 3.3M

• Adjustment to Salaries and Benefits Since Proposal -

Salaries: Teachers and Other Certified Staff - Avg. 4.7% increase School Based Admin. - 1.5% + step (if eligible); .5% one-time bonus Non-Certified Staff - 1.5% increase; .5% one-time bonus; merit bonus (TBD) $ 1.9M Teacher bonus pilot based on student performance- 3rd grade reading, AP/IB, CTE TBD Retirement Rate - Proposed – 15.65%; Actual – average 16.33% $ 3.5M

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2016-2017 Budget Update

Federal/Grants/Other/Special Revenue Funding Update Since Proposal

Impact on Proposed Budget

• Fund Balance adjustment -

Appropriation for technology devices $ 1.2M Appropriation for movement/purchase of mobile units $ 3.0M Appropriation for capital projects/school options facility needs $ 2.0M Appropriation for cultural proficiency training $ .5M

• Federal/Grants/Other/Special Revenue -

Net adjustments to grant carryover estimates $ 1.6M

(primarily Title I and EC categories)

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2016-2017 Final Proposed Budget

2016-2017 Total Proposed Budget

REVENUES

Proposed Budget % of Total State of North Carolina 806,479,514 $ 58.5% Mecklenburg County 413,493,792 $ 30.0% Federal and Other Grants 137,785,489 10.0% Other and Special Revenue 20,115,000 1.5% TOTAL OPERATING BUDGET 1,377,873,795 $ 100% Capital Replacement 4,960,000 Special Project Capital Funding 18,000,000 Enterprise Funds: Child Nutrition Program 69,258,172 After School Enrichment Program 13,710,226 TOTAL PROPOSED BUDGET 1,483,802,193 $

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2016-2017 Proposed Operating Budget vs. 2015-2016 Adopted Operating Budget

2016-2017 Proposed Budget 1,377,873,795 $ 2015-2016 Adopted Budget 1,346,730,237 $ Increase 31,143,558 $ % Change Over Prior Year 2.3%

* Operating Budget only – does not include Capital or Enterprise Funds

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Significant Changes from Prior Year

Overall the budget increased by $31.1 million, 2.3% over the prior year -

• $2.8 million attributable to enrollment growth and new space costs
• $5.2 million will cover charter school pass-through funding increase
• $24.3 million will cover sustaining operation costs (i.e., class size reduction, summer reading

camp, mobiles, technology devices and longevity)

• $49.5 million for salary and benefit increases (as described on pg. 5)
• ($39.1) million in revisions to the base budget (i.e., state revisions, state average salary

adjustment for state paid positions, reversal of one-time bonus and fund balance appropriation, and grant adjustments)

• ($11.6) million in reductions and redirections to close the funding gap

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Key Budget Highlights

• CMS continues to focus on optimizing resources from all sources as well as

identifying efficiency savings and budget redirections to offset rising costs. The 2016-2017 budget includes over $11.6 million in reductions and redirections.

• Key positive points in the state budget:
• Salary increases for all staff
• 1st grade class size reduction to 1:16 teacher:student allocation ratio
• Increase in instructional supplies
• Increase in digital materials/textbook funding
• Concerns to monitor at the state level:
• Restrictions on class size limits
• Continued increase in retirement and health benefit rates
• County request for operating budget was an increase of $22.9 million – BOCC

approved increase of $11.3 million – gap of $11.6 million has been addressed

• Investment in more competitive salaries will help retain and attract the best

teachers and support staff for our students

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Key Budget Highlights

• Total CMS projected student enrollment of 146,644 students this year – 504 more than

last year

• Since 2008-2009, the overall per pupil amount increased by about $484 per pupil

(5.4%) while the enrollment has increased by more than 12,580 (9.4%)

• County funding per pupil for CMS has decreased by $8 since 2008-2009 when including

the charter students of Mecklenburg County

• CMS will continue to align to the district’s strategic plan including those strategies that

have helped us increase academic achievement and improve the graduation rate

• The 2016-2017 Operating Budget, as presented, is fiscally sound and reflects the

priorities of the district for this year.

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2016-17 Total Proposed Current Expense Budget

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State County Federal and Other Grants Other and Special Revenue Total 2015-2016 ADOPTED BUDGET $778,903,458 $404,286,016 $ 143,029,293 $ 20,511,470 $ 1,346,730,237 REVISIONS TO 2015-2016 ADOPTED BUDGET

• A. Revisions to Base Budget*

(20,111,893) (2,083,665) (9,711,586) (7,165,251) (39,072,395) Sub-Total (20,111,893) (2,083,665) (9,711,586) (7,165,251) (39,072,395) 2015-2016 BASE BUDGET 758,791,565 402,202,351 133,317,707 13,346,219 1,307,657,842 I.REDUCTIONS/REDIRECTIONS A. Reductions/Redirection of Funds to Alternative Uses (288,100) (11,313,810)

• (11,601,910)

Sub-Total (288,100) (11,313,810)

• (11,601,910)

I.SUSTAINING OPERATIONS A Program Continuation 12,999,990 3,170,954 1,609,138 6,700,000 A 24,480,082 Sub-Total 12,999,990 3,170,954 1,609,138 6,700,000 24,480,082 II.INVESTING IN OUR EMPLOYEES A. Salaries and Benefits 33,329,560 13,098,725 2,858,644 68,781 49,355,710 Sub-Total 33,329,560 13,098,725 2,858,644 68,781 49,355,710 III.STUDENT GROWTH AND ADDITIONAL SPACE A. Enrollment Growth 1,646,499 5,618,919

• 7,265,418

B. Additional Facility Space

• 716,653
• 716,653

Sub-Total 1,646,499 6,335,572

• 7,982,071

TOTAL 2016-2017 PROPOSED CURRENT EXPENSE BUDGET $806,479,514 $413,493,792 $ 137,785,489 $ 20,115,000 $ 1,377,873,795 * Includes reduction of one-time bonus funding, state revisions, reduction for prior year one-time fund balance appropriation and anticipated revenue adjustments to 2015-16 Adopted Budget. A Includes a one-time increase in fund balance appropriation of $6.7 million for movement/purchase of mobile units ($3m), technology devices ($1.2m), cultural proficiency training ($.5m), capital projects and school options facility needs ($2m).

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Superintendent’s Closing Remarks