FOLLOW THE MONEY$$$ SCHOOL FUNDING IN NORTH CAROLINA Presented by - - PowerPoint PPT Presentation
FOLLOW THE MONEY$$$ SCHOOL FUNDING IN NORTH CAROLINA Presented by Jennifer S. Bennett Jennifer S. Bennett Assistant Superintendent Business & Finance Assistant Superintendent for Business & Finance Vance County Public Schools
Jennifer S. Bennett Assistant Superintendent for Business & Finance Vance County Schools
Presented by Jennifer S. Bennett Assistant Superintendent Business & Finance Vance County Public Schools
24 years School Finance experience
Worked at the State Dept. level and LEA level so understand both sides of the policy to reality coin
Have done consulting work related to School Business in NC, SC, and VA
Enjoy helping districts figure out how to maximize the resources for their students
Best project lately is getting to start an Art-Internship project with our HS students in Vance to create job opportunity experience and create fun spaces for our school district
Quad D-JBennett-VCS
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Helping create avenues for QUAD D Learning opportunities
Short walk-thru adjusting a school’s budget
NC Constitution, Article IX
School Machinery Act of 1931 & 1933
“State revenue sources the instructional expenses for current operations… ”
“… facilities requirements for a public education system will be met by county governments.”
School Budget & Fiscal Control Act 1975
General Statute 115C-408(b)
Defines State Public School Fund and Local County Appropriations
General Statute 115C-12 (18)(a) & (b) = Uniform Education Reporting Systems (1989-90)
Ensures consistent reporting of data across public schools
Leandro Court Ruling: Sound Basic Education
Still in the court system
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The budget code is defined by the NC Department of Public Instruction under UERS General Statutes. LEAs can define the last 5 digits only of the budget code.
Most Board of Education’s Budget Resolution during the fiscal year is at the Fund-Purpose Code level of the Budget Code. The PRC and Object codes tell you funding pot & type of expenditure.
State Public School Fund 62%
Local Current Expense Fund 11% Federal Grants Fund 10% Capital Outlay Fund 6% Child Nutrition Fund 6% Grants - Restricted 5%
Why NC relies on State Funding so heavily for its Public Schools
Great Document for Reference is the Highlights of the NC Public Schools Budget
http://www.ncpublicschools.org/fbs/resour ces/data/
Page 5 = Overall State Budget for Schools
Shows all the different categories districts receive
Charter Schools receive their per-pupil share from most of the categories in one lump pot (PRC 036).
Info on Lottery funds, Federal, Charter School data, Teachers Salaries, etc.
Average Daily Membership (ADM) – STUDENTS
Is your enrollment growing or decreasing? Salaries & Benefits
Are you adjusting staffing up or down for student shifts?
What do you need for each 1% salary increase for staff?
Hospitalization Rates averaging increase of $150 per person – current rate $6,104 per employee
Retirement Rates increasing 1.5% annually, current rate 18.86% CONTINUATION Funding
What do you need to remain “AS-IS” for any fluctuations in the above plus CPI, Operational Costs, etc.?
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January - March – Planning for next year
Also, have to true-up current year for any state adjustments
April – BOE’s have to finalize request for County Funds
May
BOE request due (by law) to County May 15th
BOE must finalize Teacher Contracts for the next year by end of May (What is wrong with that timing?)
June – Counties approve their budgets
We all hope the State has approved their budget but…
August-Sept – Students return
October-November – Federal funds released (see potential cash flow problem??)
State Adjusts funding for ACTUAL students in December
Instructional Services 70%
Supporting Services 19% Child Nutrition 6% Charters - Transfers 3% Capital Projects 2%
Most in the Classroom – Supporting Services includes Transportation & Maintenance
Staffing --- Salary and Benefits – 80-85% of School Budget will be Personnel
Operational Costs
Electricity, Water, Waste, Gas, Network, Telecommunications
Maintenance/Custodial Costs
Transportation Services
Child Nutrition Services
Central Support Services (Insurances, Fiscal Support, BOE Costs, etc.)
Instructional Supplies & Materials
Special Programs
Exceptional Children, Limited English, Academically Gifted, Disadvantaged, Homeless
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Most school districts have declining student populations due to competition, declining birthrates, or aging populations. So the new reality is creating flexible budgets to allow for unforeseen revenue
less margin for error and little fund balance or safety net from the county, yet still have state and federal compliance standards.
Small <400 students – in city limits
Low-Performing (D or F) for over 5 years
2nd Year Principal (at this school – total 10 yrs. exp.)
High Poverty - 75% Low Income
60% Black, 25% Hispanic, 15% White
High Staff Turnover – over 25% annually
Most staff has less than 7 years experience
No PTO/PTA formed
Became a “RESTART” school so has flexible use of funding and staffing
Adults
Stabilize Staffing
Offer Incentives – More $$
Professional Development
Coaching
Classroom Management
Leadership
Students
WE WANT TO LEARN!
Reading
Math
FUN stuff – keep me interested
Technology
You planned in April-May for 350 students (down 30 from
prior year)
You retained your staff in May (under state law) and started
hiring for August
State increased Retirement rate by 1.73% and not the
estimated 1% projected….yikes!
Actual students who showed up = 269….NOW WHAT?
85% is Payroll so if significant revenue reduction it will impact staff.
Are there any vacancies?
Is there room in class-size?
Are there non-classroom positions that can be eliminated or delayed?
What do you need as the priority for STUDENT Achievement?
What is essential to get you where you need to go?
What other items are optional for the year?
What can the district do to help? Anything?
In NC Schools (Principals) don’t have to worry MUCH with funding sources
They get staffing positions
They get Title I $$
They get Non-Salary funds from State and Local
They have to stay balanced with what they get
They’ll have school level funds from fund raisers and grants
District Level worries about how it all fits together to maximize the funds while staying compliant with the intended use
We want the schools concentrating on Instruction and not worrying about all the varied complexities with school funding
Schools should do a data-driven problem analysis to determine how to focus on school reform.
They should make sure that all options are laid out in the Restart plan and how all the funding and staffing will work together.
Lay out the contingencies… ex: what to do with vacancies – replace, save the dollars, use for something different? Know WHY?
Include options in the plan so that the school is able to react effectively as the year unfolds and take advantage of situations to maximize resources. (ex: you have lapse salary from vacancies of $8,000 in March and have 2 weeks to effect the PO.. Ask what would you do?)
Understand the District needs as well as your own – how can flexibility help the overall district budget (operational costs, maintenance offsets, etc.)
Include Finance in discussions or you just have 2 parts of your triangle School Goals
SCHOOL
I m provem ent
PLAN
FUNDI NG & Flexibility