Cleveland Municipal School Cl l d M i i l S h l District - - PowerPoint PPT Presentation

Cl l d M i i l S h l Cleveland Municipal School District District

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2 0 12 - 13 B U D G E T P LA N N I N G

M A R C H 2 7 , 2 0 12

The primary goal of the Cleveland Municipal School District is to become a premier school district in the United States of America.

Cleveland Municipal School District

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AGENDA

Vision and Goals The Current Budget Challenge

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Budget Assumptions Variety of Considerations

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Community and Staff Engagement Timeline Questions

Cleveland Municipal School District

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Vision and Goals

learned within dynam ic contextual learning

nt vement

Increased m astery of rigorous curriculum

Improved Student Achievement for21st Century Graduates

DRAFT: 3/27/2012

Turning the Transform ation Plan into a Transform ation Strategy

learned within dynam ic, contextual learning environm ents

Stude Achiev

Increased m astery of rigorous curriculum …

akeholders

“Gives me options in life” ‐STUDENTS “Cares about and helps my child succeed” ‐PARENTS “Is a great place to work and to be a professional” ‐STAFF “Creates a stronger Cleveland” ‐COMMUNITY

Cleveland Metropolitan School District…

Design Effective Curriculum, Assessment and Instruction * Rigorous curriculum and aligned assessments Build Capacity of Quality Leaders * Principals As Academic Leaders Create and Support Quality Schools * Portfolio of High Quality * Autonomous

Sta

PARENTS S

Create Demand for CMSD Schools * Whole child approach * Welcoming culture * Enhanced Learning Experiences * Standards based 21st Century Global Knowledge, Skills, and Abilities * College/Career Readiness * Individualized support * Improved Teacher Effectiveness * Self‐directed Students * Recruit and develop engaged and highly effective staff * Leadership training at all levels * Research Based Designs * Agile & Innovative * Balanced availability * Community Identity * Leverage technology * Agnostic to form (grade * Choice * Community support * Engaged Parents * Easy Access * Conditions for Learning and Teaching

Internal Processes

* Individualized support * Social and Emotional Learning * Flexible credit options * Leadership training at all levels * Workforce “retraining” Agnostic to form (grade configuration, public v. charter, traditional brick & mortar v. non‐ traditional, virtual, etc.) and Teaching * Safe and perceived as safe * Length of Day & Year * Attracts students and families * Transportation p

Resource Stewards Strategically Planned Academic Start‐up and Sustainment Investments Total Cost to Educate – Lifelong Learner View Pupil Based Funding Aligned to Strategic Investments

Operational

Excellence

Continuous Improvement Processes

Data Driven Accountability Transparency and Equity Growth and Correctly Size Carefully consider the value of time and people as resources

Our Transformation Strategy

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Vision:

Increased m astery of rigorous curriculum , learned

w ithin dynam ic contextual learning environm ents How? C t d t lit h l

Create and support quality schools Build the capacity of our teachers and leaders Design and im plem ent effective curriculum assessm ent Design and im plem ent effective curriculum , assessm ent,

and instructional practices

Provide supports that create dem and for CMSD schools

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Resource Stewards: Strategic Investments

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Resource Stewards: Strategic Investments

Resources tied up in the Piecemeal investment in an

Oppor tunities for R ealloc ation Oppor tunities for Str ategic Investment

p wrong things

e.g., Teacher compensation tied up in steps and lanes only rather than also including increased pay for f ddi i l

integrated solution

e.g., Creating time for collaborative planning, but not investing in data and expert support so that teachers performance or additional responsibility

Under-investment in the i ht thi Un-strategic over- i t t i “ d

use it effectively

right things

e.g., Not investing in aligned formative assessment or limited collaborative planning time for teachers

investm ent in “good things”

e.g., “Peanut butter” class size reductions or generic and untargeted s stem ide PD fo teache s system-wide PD for teachers

Our Transformation Strategy

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Investing in Children while Balancing the Budget

Cleveland Municipal School District

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The Current Budget Challenge

Cleveland Municipal Public Schools

October 2011 Five-Year Forecast

(in millions of dollars) (in millions of dollars)

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Beginning Cash Balance $82.0 $50.4 $13.0 $33.0 $7.1 ($59.0) ($144.7) ($246.1) Total Revenues 668.2 662.7 666.4 643 4 611.1 608.3 610.2 613.3 FY 2016 FY 2014 FY 2015 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Total Revenues 668.2 662.7 666.4 643.4 611.1 608.3 610.2 613.3 Total Expenses 699.8 700.1 646.4 669.3 677.2 694.0 711.6 729.8 Revenue over Expenses (31 6) (37 4) 20 0 (25 9) (66 1) (85 7) (101 4) (116 5) Expenses (31.6) (37.4) 20.0 (25.9) (66.1) (85.7) (101.4) (116.5) Ending Cash Balance 50.4 13.0 33.0 7.1 (59.0) (144.7) (246.1) (362.6) Encumbrances/ Encumbrances/ Reserves 7.0 6.5 8.2 7.0 7.0 7.0 7.0 7.0 Unencumbered Balance $43.4 $6.5 $24.8 $0.1 ($66.0) ($151.7) ($253.1) ($369.6)

Current Budget Challenge

10 Rising cost of salaries and benefits g Rising cost of supplies, fuel and other necessities Decline in the economy

• Loss of jobs, declining City

j g y housing market

• Decreased tax base

Substantial cut in state budget

• Over $34 million reduction
• Concurrent loss of Federal

stimulus dollars Some reductions in grants and special aid Struggling to “eliminate” CMSD structural deficit Closing schools further accelerates student attrition

Fixing the Cleveland Municipal Public Schools

October 2011 Five-Year Forecast

(in millions of dollars) (in millions of dollars)

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FY 2016 FY 2014 FY 2015 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Beginning Cash Balance $82.0 $50.4 $13.0 $33.0 $7.1 ($59.0) ($144.7) ($246.1) Total Revenues 668.2 662.7 666.4 643.4 611.1 608.3 610.2 613.3 FY 2016 FY 2014 FY 2015 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Total Expenses 699.8 700.1 646.4 669.3 677.2 694.0 711.6 729.8 Revenue over Expenses (31.6) (37.4) 20.0 (25.9) (66.1) (85.7) (101.4) (116.5) Ending Cash Balance 50.4 13.0 33.0 7.1 (59.0) (144.7) (246.1) (362.6) Encumbrances/Re serves 7 0 6 5 8 2 7 0 7 0 7 0 7 0 7 0 serves 7.0 6.5 8.2 7.0 7.0 7.0 7.0 7.0 Unencumbered Balance $43.4 $6.5 $24.8 $0.1 ($66.0) ($151.7) ($253.1) ($369.6) Permanent Change to Budget Can Yield A Manageable Future 66 0 19 7 15 7 15 1 Permanent Change to Budget Can Yield A Manageable Future 66.0 19.7 15.7 15.1

Cleveland Municipal Public Schools

October 2011 Five-Year Forecast

(in millions of dollars) (in millions of dollars)

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FY 2016 FY 2014 FY 2015 FY 2013 Unencumbered Balance ($66.0) ($151.7) ($253.1) ($369.6) Permanent Change to Budget 66.0 19.7 15.7 15.1 g g 75% Permanent - 25% Temporary 66.0 36.2 24.75 21.3 50% Permanent - 50% Temporary 66.0 52.7 42.0 36.2 25% Permanent - 75% Temporary 66.0 69.2 67.6 65.8

Cleveland Municipal School District

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Budget Assumptions

Budget Assumptions - Principles

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CMSD must make some priority investments aligned to our

vision and goals (our Strategy Map) even as we balance the 2012-13 School Year Budget

CMSD must plan for “worst case”, “best case”, and “most

probable budget scenarios and then must carefully monitor changes to implement the best possible 2012-13 School Year Budget

One time or temporary budget closure recommendations

should be limited to less than 25% of the final budget in g

• rder to limit continued multi-year budget deficits

Budget Assumptions - Revenues

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Although the Board has discussed the possibility of a levy in

November 2012 no additional revenue from a levy can be November 2012, no additional revenue from a levy can be assumed in constructing the 2012-13 School Year Budget St t ill f ll i il d l f di t ib ti i

State revenue will follow a similar model for distribution in

2012-13 based on continuation of the “Bridge Formula” l f d ( d i d id ) i

A loss of 1909 students (and associated state aid revenue) is

projected based upon the 2011 update of DeJong projections with additional student losses projected from start up of new charter schools start up of new charter schools

Current tax collection rates are projected to continue into

2012 2012

Budget Assumptions - Expenses

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Cost projections were accelerated based on known contract

• r mandated rates, historical inflationary rates, or

appropriate Consumer Price Index information

Planned attrition (retirements, separations) is projected at

3-year average of 163 employees per year

Healthcare is based upon accelerated 2012 budget. Because

th di t i t i lf i d th t b di t bl the district is self insured, these costs can be unpredictable.

Cleveland Municipal School District

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Variety of Considerations

Variety of Considerations

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Wh t i t? Wh t t i t i ? Wh t t d ?

Where to invest? What to maintain? What to reduce?

Academic Programming School Demand Drivers Academic Programming School Demand Drivers * Pre-school * Transportation * Elective courses * Safety and security * Class sizes * Extra-curricular activities * Length of school day and year * Athletics * Textbooks * Conditions for learning Textbooks Conditions for learning * Summer school options * Enrollment recruiting * Specialty programs and schools

Variety of Considerations

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H t i d d ?

How to manage revenue increases and decreases?

Decreases Increases Decreases Increases * Property tax collection rates * Sale of district assets * County property re-evaluation * One time EdJobs funds * Federal “Sequestration” * One time IRS rebate * Bridge Formula funds * STRS/ SERS payments * Charter school tuition fees * Unemployment compensation

Variety of Considerations

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Wh t th i t f kf h ?

What are the impacts of workforce changes?

Labor Negotiations Human Resources Labor Negotiations Human Resources * Negotiated wage reductions * Reductions in Force * Negotiated health care changes * Separations/ Retirements * Other financial concessions * At-will position reductions * Ongoing negotiations with * Impact of enrollment on Ongoing negotiations with Impact of enrollment on Local 1199 and CTU staffing needs

Variety of Considerations

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H d t h l ?

How do we support our schools?

Schools/ Facilities Operating expenses Schools/ Facilities Operating expenses * School/ facility closures * Transportation costs * Costs of under-enrolled schools * Food service costs * District Operation Centers * Outsourcing opportunities * Sale of properties and buildings * Self Insurance costs * Budget reductions and Budget reductions and * Long-term facilities footprint additional operational efficiencies

Variety of Considerations Variety of Considerations

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Variety of Considerations Variety of Considerations

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Revenue Increases Human Resources Academics Resources Labor Negotiations Demand Drivers Non- Personnel Revenue Decreases Schools & Facilities Personnel

Cleveland Municipal School District

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Community and Staff Engagement

Community and Staff Inputs Solicited

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Community and Staff Inputs Solicited

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Survey Yields Additional Ideas

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C A bili Create Accountability Shape the District

Cleveland Municipal School District

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2012-13 Budget Timeline

Timeline

29 Date Action January 12, 2012 FY13 Budget Kickoff Meeting January 28, 2012 Update Board on Budget February 2012 Deadline for ADM submission-State Extended to March Budget Survey Developed March 2012 Establish Planning Assumptions Identify Various Options Build Budget u d udget April 2012 Board Votes on Potential Layoffs May 8, 2012 Present Five Year Forecast Update to Board May 22 2012 Board Votes on Five Year Forecast Update May 22, 2012 Board Votes on Five Year Forecast Update June 2012 Preliminary Budget Numbers for Title I and IDEA June 12, 2012 Present FY13 Annual Budget to the Board June 26 2012 Board Votes on FY13 Annual Budget June 26, 2012 Board Votes on FY13 Annual Budget July 2012 Board Action Required if November Levy August Possible Budget Revisions Based on Revenue Changes

Cleveland Municipal School Cleveland Municipal School District

Financial Update – March 27 2012

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Financial Update March 27, 2012

Q U E S T I O N S

T H E P R I M A R Y G O A L O F T H E C L E V E L A N D M U N I C I P A L S C H O O L D I S T R I C T I S T O B E C O M E A P R E M I E R S C H O O L D I S T R I C T I N T H E U N I T E D S T A T E S O F A M E R I C A .