Fulton County Schools FY2018 Superintendent's Budget Recommendation - - PowerPoint PPT Presentation

Fulton County Schools

FY2018 Superintendent's Budget Recommendation

April 13, 2017 Board Meeting Marvin Dereef, SFO Deputy Chief Financial Officer

BOARD OF EDUCATION Linda P. Bryant, President Linda McCain, Vice President Julia C. Bernath Gail Dean Catherine Maddox Katie Reeves Katha Stuart

• Dr. Jeff Rose, Superintendent

EMPLOYEES More than 10,500 full time personnel More than 6,800 certified personnel NUMBER OF SCHOOLS

59 Elementary Schools 19 Middle Schools, 17 High Schools 10 Start Up Charters 105 Total

System-wide Enrollment 2016-17 System-wide Free/Reduced Meals

96,870 46.53%

FULTON COUNTY SCHOOL DISTRICT (Founded in 1871)

2016-2017 Racial Composition

Black or African American White Hispanic Asian Multi-racial 42% 30% 15% 10% 3%

FY17 General Fund Budget $952,134,657 FY17 Cost Per Student $9,842.30 (est) FY17 Tax Levy Maintenance & Operations 18.483 Debt Service 0.000 Total 18.483

Reading Math Writing Total Fulton 500 507 495 1502 State 493 490 476 1459 National 494 508 482 1484

2016 SAT

2016 – 2017 Facts at a Glance

Total Fulton 23.3 State 21.1 National 20.8

2016 ACT

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PRESENTATION

• Current State
• Budget Focus
• Superintendent’s Budget

Recommendation

• Next Steps

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Current State

4

Current State

5

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Budget Book Contents

Introductory Section Organizational Section Financial Section Informational Section

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Budget by Fund for FY2018

Fund Revenue Expenditure

General Fund $1,009,430,898 $1,013,435,689 Debt Service $12,146,344 $12,132,721 Capital Program $197,288,323 $374,251,169 Special Revenue $51,729,563 $51,729,563 School Nutrition $42,826,082 $42,615,649 Pension $53,468,000 $34,081,245 Student Activity $18,706,149 $18,706,149 Total Budget $1,385,595,359 $1,546,952,186

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General Fund Revenue Summary

Resources from Operations FY 2017 Projected FY2017 Revenue Per Pupil FY2018 Proposed FY2018 Revenue Per Pupil % Change

Local $593,456,950 $6,117.42 $638,718,455 $6,583.98 7.09% State of Georgia $357,842,706 $3,688.68 $369,920,750 $3,813.18 3.27% Federal $685,000 $7.06 $685,000 $7.06 0.00% Other $150,000 $1.55 $106,693 $1.10

• 28.87%

Total Revenue $952,134,656 $9,814.71 $1,009,430,898 $10,405.32 6.02%

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Fulton County Schools Tax Digest history

Assuming 6% Tax Digest growth

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Fulton County Schools maintain the lowest millage rate among the Metro Area school districts.

• 5.000

10.000 15.000 20.000 25.000 CY2012 CY2013 CY2014 CY2015 CY2016 Millage Rate Calendar Year

Millage Rate Comparison- M&O

Fulton Dekalb Gwinnett Cobb Atlanta Average

CY2012 CY2013 CY2014 CY2015 CY2016 Fulton 18.502 18.502 18.502 18.502 18.483 DeKalb 23.980 23.980 23.980 23.730 20.380 Gwinnett 19.250 19.800 19.800 19.800 19.800 Cobb 18.900 18.900 18.900 18.900 18.900 Atlanta 21.640 21.640 21.640 21.640 21.715 Average 20.454 20.564 20.564 20.514 19.856

Metro Area Summary

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Quality Basic Education (QBE)

FY2018 QBE Revenue Projection $363.8 million

FTE Growth Local Fair Share Austerity

• FTE count is expected

to increase by 400 for FY2018.

• QBE will increase by $2

million due to FTE growing from 95,647 to 96,047.

• Local Fair Share is a

reduction to QBE earnings.

• LFS is going from $147

million in FY2017 to $158 million in FY2018. This is a negative impact of $11 million.

• Austerity is a reduction

to QBE Earnings.

• Austerity is $7 million

in FY2018. No change from FY2017.

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Health Insurance Employer Contribution History

• FY2018 HI $4.6 million increase

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QBE Local Fair Share History

• FY2018 LFS $11 million increase

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Teacher Retirement Employer Contribution History

• FY2018 TRS $17 million increase

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Expenditure Summary by Function

FY18 Appropriations

Function Amount Per Pupil % of Total Instruction $ 686,219,275 $ 7,055.37 67.71% Pupil Services $ 41,520,126 $ 427.99 4.10% Improvement Of Instructional Services $ 26,947,860 $ 277.34 2.66% Educational Media Services $ 15,036,508 $ 155.00 1.48% General Administration $ 2,341,589 $ 24.25 0.25% School Administration $ 55,266,989 $ 569.13 5.45% Support Services- Business $ 15,760,530 $ 162.46 1.56% Maintenance And Operating $ 82,841,966 $ 843.64 8.11% Student Transportation Services $ 52,880,418 $ 355.13 3.38% Support Services-Central $ 34,223,680 $ 355.13 3.38% Other Support Services $ 40,035 $ 0.41 0.00% Other Outlays $ 965,563 $ 9.53 0.10% Total Appropriations $ 1,013,435,689 $ 10,446.61 100.00%

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Expenditure Summary by Object Type

59.76% 22.49% 4.64% 4.94% 2.16% 1.87% 1.75% 1.57% 1.33%

Utilities (2.16%) Costs include basic services such as electricity, gas, and water. Professional and Technical Services (1.87%) Costs related to fees and software systems. Property Services (1.75%) Cost for grounds, equipment, and vehicle maintenance, uniforms and other services. Other Budget Items (1.57%) Cost for Transfers & Other, Field Trips & Travel, and Books & Periodicals (which includes the purchase and repair of textbooks, workbooks, periodicals and

• ther reference books). Each of these

items accounts for less than 1% of the total budget. Equipment and Related (1.33%) Cost for new equipment Salaries (59.76%) Costs paid to persons who are employed by Fulton County Schools in a permanent, temporary,

• r part-time position or one who

substitutes for those with permanent status. Employer Benefits (22.49%) Costs paid by Fulton County Schools on behalf of employees, in addition to regular salary. Supplies and Materials (4.64%) Cost for supplies and materials which support the day-to-day

• perations of Fulton County

Schools. Purchased Services (4.94%) Costs paid for contractual serviced rendered by personnel who are not employed by FCS.

82.3%

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Employee Compensation FY2018

BUDGET PRIORITY FOR FY2018

BUDGET PRIORITY FOR FY2018

Employee Compensation FY18 Recommendations

Purpose Statement: Essential to our mission is the ability to attract and retain top talent (PEOPLE) in every aspect of the district’s ongoing effort to significantly improve the achievement opportunities for the students we serve. Yet, the Atlanta Metro area continues to be a highly competitive market for acquiring quality K-12 personnel (from bus drivers to teachers). The salary recommendations that follow take into consideration these factors while being mindful of the fiscal soundness and responsibility of our district and governing body.

Salary Treatment (5 Year Review)

Prior/during the economic recovery, the FCBOE and district leadership have consistently made the effort to positively impact the earning of its employees.

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 One-Time Payment $1000 Teachers $500 Non-Teaching % Increase 3% for all eligible employees One-Time Payment 3% for all eligible employees % Increase & Step 4% -8% and Step for teachers 3% and Step for non-teaching % Increase & Step 5% and Step for teachers 3% and Step for non-teaching

Increase all teaching salary schedules (T4-T7) as follows:

(1). Salary Increase for Teachers Estimated FY18 General Fund Cost: $16M

Salary Schedules

(As of SY2016-17)

% Increase FY18 STEP Increase

Where Applicable: No STEP increase @ longevity steps on the schedule or for staff with unsatisfactory performance. (The average STEP =2.8%)

Total Combined Range of Increase Estimated Cost All Teaching Schedules 2% Yes 2% - 4.8% $16M

FY18 Metro Teacher Salary Comps @ 2%

Charts assumes FCS’s ranking with all other district applying a 1.5%-2%

2468 3531 757 201 500 1000 1500 2000 2500 3000 3500 T4 T5 T6 T7

Masters (T5)

Chart uses MRESA metro comparisons and shows FCS's projected increase with other districts’ projected increase per verbal survey

10000 20000 30000 40000 50000 60000 70000 80000 Step 3 Step 5 Step 8 Step 12 Step 16 Step 23 Fulton Gwinnett Forsyth Dekalb Cobb Clayton Cherokee Atlanta

Increase all non-teaching salary schedules as follows:

(2). Salary Increase for Non-Teaching Personnel Estimated FY18 General Fund Cost: $6.4M

Salary Schedules

(As of SY2016-17)

% Increase FY18 STEP Increase

Where Applicable: No STEP increase @ longevity steps on the schedule or for staff with unsatisfactory performance. (The average STEP =2.8%)

Total Combined Range of Increase Estimated Cost All Non-Teaching Schedules 1% Yes 1% - 3.8% $6.4M

(3). Change the Salary Grade of the Clinic Aide Position Estimated FY18 General Fund Cost: $170K Move the clinic aide position from Salary Grade 21 to Salary Grade 22 on par with the instructional paraprofessional position.

Estimated Cost $170K

FY2018 Total Estimated Cost

#1 Percentage increase (2%) to all teaching salary schedules and STEP $16M #2 Percentage increase (1%) to all non-teaching salary schedules and STEP $6M #3 Change the salary grade of the clinic aide position $170K Total Estimated Cost $22.6M

BUDGET BY ORGANIZATION

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Category Total Existing Positions Total New Position Requests Total Onetime* Total Recurring Total 2018 Request Total FY2017 Current Total FY2017 Original Change From FY2017 Current to FY2018 Request Change From FY2017 Original to FY2018 Request

Schools

9,576.07 233.41 $ - $ 795,899,540 $ 795,899,540 $ 741,269,186 $ 736,704,850 7.37% 8.04%

Admin Services

37.99 (1.50) $ - $ 4,579,150 $ 4,579,150 $ 4,889,102 $ 3,440,602

• 6.34%

33.09%

Academics

146.00 (0.50) $ 2,350,210 $ 46,032,675 $ 48,382,885 $ 53,804,877 $ 41,995,945

• 10.08%

15.21%

Strategy and Innovation

• $ -

$ - $ - $ - $ 4,373,558

• 100.00%

Operations

1,217.70 (1.00) $ 3,308,083 $ 97,458,338 $ 100,766,421 $ 106,352,393 $ 100,044,924

• 5.25%

0.72%

Information Technology

170.97 (0.67) $ 332,285 $ 22,389,286 $ 22,721,571 $ 28,412,666 $ 21,438,095

• 20.03%

5.99%

Talent

55.70

• $ -

$ 7,454,247 $ 7,454,247 $ 7,660,854 $ 7,160,407

• 2.70%

4.10%

Financial Services

60.75 1.00 $ 25,000 $ 10,982,410 $ 11,007,410 $ 13,567,616 $ 8,429,854

• 18.87%

30.58%

Districtwide

• $ -

$ 22,624,465 $ 22,624,465 $ 31,977,688 $ 28,546,422

• 29.25%
• 20.75%

Grand Total

11,265.18 231 6,015,578 $ 1,007,420,111 $ 1,013,435,689 $ 987,934,382 $ 952,134,657 2.58% 6.44%

BUDGET BY ORGANIZATION

Operations

FY2018 Budget $100,766,421 As a % of General Fund 9.94% Per Pupil $1,038.71 Positions 1,216.70 Budget Highlights Over $1.2M in reductions in the portable budget resulting from reductions in the fleet size Continued reductions in Utilities despite increases in square footage One-time request to support CTAE program by making modifications not included in SPLOST referendum.

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BUDGET BY ORGANIZATION

Administrative Services Academics

FY2018 Budget $4,579,150 As a % of General Fund .45% Per Pupil $47.20 Positions 36.49 FY2018 Budget $48,382,885 As a % of General Fund 4.77% Per Pupil $498.74 Positions 145.50 Budget Highlights Communication audit in progress Strategic plan under development Budget Highlights $2 million dollar onetime budget increase to enhance school support.

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BUDGET BY ORGANIZATION

Financial Services Information Technology

FY2018 Budget $11,007,410 As a % of General Fund 1.09% Per Pupil $113.47 Positions 61.75 FY2018 Budget $22,721,571 As a % of General Fund 2.24% Per Pupil $234.22 Positions 170.30 Budget Highlights Plus 1.0 Budget Analyst offset cost by reducing non-personnel budget Budget Highlights Broad resident grant expired, (.67 General fund). Data Warehouse – one promotion to Sr Developer to support data and analytic dashboards for academics/ schools

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BUDGET BY ORGANIZATION

Talent Districtwide

FY2018 Budget $7,660,854 As a % of General Fund 0.74% Per Pupil $76.84 Positions 55.70 FY2018 Budget $22,624,465 As a % of General Fund 2.23% Per Pupil $233.22 Positions 0.00 Budget Highlights In FY18, Talent Management will focus on increasing experienced teacher engagement while continuing to improve the district's leadership and administrative selection processes. Budget Highlights Local Retirement Contribution decreases by $2 Million.

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BUDGET BY ORGANIZATION

Schools Startup Charters

FY2018 Budget $750,112,716 As a % of General Fund 74.02% Per Pupil $7,732.24 Positions 9,273.19 FY2018 Budget $45,786,824 As a % of General Fund 4.52% Per Pupil $471.98 Budget Highlights Increased teacher pay Increased work days and pay for clinic aids $179 per student for material and supplies Expansion of some special programs Budget Highlights No additional charter schools for FY2018.

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PER PUPIL CHANGE HISTORY

Per Pupil History

FY2016: moved from $250 to $179 due to removal of $71 onetime funds FY2015: moved from $179 to $250 due to onetime increase of $71 FY2014: moved from $135 to $179 due to onetime increase of $44 FY2013: moved from $110 and $125 to $135 due to increase of $44 FY2012: moved from $90 to $110 at Elementary (ES received additional clinic aide allocation) and $125 at Middle and High FY2011: Remained at $90 from previous year FY2010: Moved from $111.88 to $90 due to severe budget cuts $90 $90 $110 $135 $135 $179 $179 $179 $179 $15 $44 $21 $50 $50 $75 $100 $125 $150 $175 $200 $225 $250 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Per Pupil FY2010 - 18

Midyear Onetime Per Pupil Onetime Per Pupil MS HS Base Per Pupil FY2017 & 18: remain at $179

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FY2018 Fund Balance Breakout $ 216,680,858.83 Non Spendable $ 466,468.00 Textbooks $ 11,777,945.00 Proficiency Scales $ 761,480.00 Musical Instrument Replacement $ 2,000,000.00 Strategic Compensation $ 100,000.00 Risk Management $ 4,000,000.00 Charter System Grant $ 5,552,289.00 Student Information System $ 3,275,000.00 Working Capital Reserve* $ 50,671,784.46 Catastrophic Event Reserve* $ 50,671,784.46 Revenue Stabilization Reserve* $ 50,671,784.46 Assigned $ 28,040.00 Unassigned Fund Balance $ 36,704,283.45

*Committed per Board Policy DIBA

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FY18 Budget impact to Fund Balance

*Board Policy DIBA requires : a. Working Capital Reserve This will be established based upon 5% of annual budgeted expenditures and is intended to be permanent in nature and not subject to draw down. b. Catastrophic Event Reserve This reserve will also be established based upon 5% of budgeted annual expenditures and may be drawn down in the event of unanticipated catastrophic events. c. Revenue Stabilization Reserve This will be established based upon 5% of budgeted annual expenditures and may be drawn down in the event of a decrease in the property tax digest or reduction to state funding. FY2018 FY2019 FY2020 FY2021 FY2022 Unassigned 36,704,283 32,892,816 33,822,722 37,290,444 43,313,768 Other Committed Items 27,466,714 30,000,000 30,000,000 30,000,000 30,000,000 Revenue Stabilization* 50,671,784 51,178,502 51,690,287 52,207,190 52,729,262 Catastrophic Event* 50,671,784 51,178,502 51,690,287 52,207,190 52,729,262 Working Capital* 50,671,784 51,178,502 51,690,287 52,207,190 52,729,262 Non Spendable 466,468 466,468 466,468 466,468 466,468

• 50,000,000

100,000,000 150,000,000 200,000,000 250,000,000

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General Fund Long-term Forecast

General Fund FY2018 FY2019 FY2020 FY2021 FY2022

Beginning Fund Balance

$220,685,650 $216,680,859 $216,922,830 $219,388,091 $224,406,522

Resources

$1,009,430,898 $1,023,812,017 $1,036,271,007 $1,049,162,235 $1,062,174,782

Appropriations

$1,013,435,689 $1,023,570,046 $1,033,805,746 $1,044,143,804 $1,054,585,242

Ending Fund Balance

$216,680,859 $216,922,830 $219,388,091 $224,406,522 $231,996,061

% of Expenditures

21.01% 21.30% 21.14% 21.97% 22.00%

Change in Fund Balance

($4,004,791) $241,971 $2,465,261 $5,018,431 $7,589,539

Long-term Assumptions

• We benefit from 2% of the annual digest growth
• No change in millage rate
• Current State funding formula minimum FTE growth
• Based on long-term Enrollment projections (slight decline after FY2019)
• FY18 Step and 2% salary increase to Teachers, 1% non teachers
• At least a 1% increase year over year for the expenditure budgets
• No change in school allotment formulas in out years

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Increasing support to schools Competitive wages Strategic Planning Federal Grants revenue not increasing at the rate of cost for the programs

Rise in benefit costs.

FY2018 BUDGET MESSAGE

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Next Steps

FY2018 Budget Calendar

April 13 April 20 & May 9 May 18 June 13

Markup #2 – Budget Presentations

Superintendent’s comprehensive General Fund budget, Long-term Forecast, and Capital Improvement Program

Public Hearings– Community Input Budget Hearings and Salary Hearings if necessary Tentative Budget and Millage- Board Vote Budget Adoption– Board Final Vote

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