FY 18 Budget Overview St. Louis Language Immersion Schools May 17, - - PowerPoint PPT Presentation
FY 18 Budget Overview St. Louis Language Immersion Schools May 17, 2017 Agenda 1. Understanding your budget priorities 2. Where to focus when reviewing a budget 3. Identifying key indicators of a healthy budget 4. Using the budget throughout
May 17, 2017
1. Understanding your budget priorities 2. Where to focus when reviewing a budget 3. Identifying key indicators of a healthy budget 4. Using the budget throughout the year 5. Thinking strategically beyond next year
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1. Shows what you value as an organization, and if any of your priorities have changed – “putting your money where your mouth is” 2. Communicates your priorities to key stakeholders (Board, staff, sponsors, funders, families) 3. Serves as a “map” when making financial decisions throughout the year
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What changes is the school planning for its program next year? How does the budget reflect these changes? How does this impact our long-term plans and direction?
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Factors That Can Impact Enrollment Internal
External
neighborhood
closing
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In FY 18, over 78% of SLLIS funding is driven by enrollment – both the overall number and special populations (SpEd, LEP, FRL).
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In FY 18, 60% of SLLIS spending is staff-
plant operations, debt service and Special Education,
Questions to Ask
program changes we want to make?
Is this consistent with enrollment?
non-curricular positions changing? Teaching vs. leadership?
changing?
Questions to Ask
we assumed we will receive? Is that realistic?
expected to increase?
expected to play in fundraising efforts?
assets in restricted funds, and do we expect to use them?
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As Director of Development position has been restored in the budget, so too has a modest fundraising goal. Given the school’s unique mission, the school needs to develop a development plan that bring needed resources into the school to support the continued growth of its educational program, particularly given the decline in federal revenue.
FY 14 FY 15 FY 16 FY 17 FY 18 Local Revenue 14% 15% 11% 11% 12.0% Fundraising 4% 4% 2% 0% 1.2% State Revenue 73% 75% 74% 76% 77.6% Federal Revenue 13% 9% 15% 13% 10.4%
Questions to Ask
allocations compare to prior years?
year changes?
that are either no longer available to us or that we have not yet discovered?
for ensuring school is not unduly impacted by uncertainty surrounding federal revenue?
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FY 18 is the first full year of the new Federal education policy, Every Student Succeeds Act. ESSA is replacing NCLB. The component of the change that most impacts SLLIS is how allocations are calculated. Previously, SLLIS was ‘held harmless,’ meaning it would not be impacted by allocations given to other schools. With ESSA, the pie is divided every year based on enrollment and demographics.
FY 14 FY 15 FY 16 FY 17 FY 18 Title I 482,707 338,277 712,751 524,948 415,000 Title II 92,187 85,319 182,909 100,319 65,000 CSP 250,000 250,000 125,000
28,580 22,500 25,000 Total 824,894 692,862 1,049,240 747,597 505,000
current year spending and knowledge about future spending and revenue?
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with the broad spending metrics for STL charter schools?
and broad goals?
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Budget is to hair follicle as… …forecast is to hair style.
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STATEMENT OF ACTIVITIES YTD FY17 ACTUAL BUDGET FORECAST BUDGET VARIANCE REVENUE 5100 · Local Revenue 868,308 841,352 1,019,452 1,009,622 9,830 5300 · State Revenue 5,606,760 5,236,478 6,753,981 6,283,773 470,208 5400 · Federal Revenue 859,770 955,557 1,124,446 1,194,446 (70,000) TOTAL REVENUE 7,334,838 7,033,386 8,897,879 8,487,841 410,038 EXPENSES 6100 · Salaries 3,254,577 3,311,175 3,930,903 3,973,410 (42,507) 6200 · Benefits 996,482 1,063,363 1,222,274 1,276,035 (53,761) 6300 · Purchased Services 2,501,122 2,080,381 2,980,701 2,525,025 455,676 6400 · Supplies & Materials 370,321 352,962 441,572 423,554 18,018 6500 · Equipment
215,663 224,878 269,853 269,853
7,338,166 7,032,758 8,845,303 8,467,877 377,426 NET CHANGE IN ASSETS (3,327) 628 52,576 19,964 32,612
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FORECAST BUDGETED VARIANCE Enrollment 743 733 10.00 Regular Term ADA 627.00 610.00 17.00 Summer ADA
57.46 64.21 (6.75) LEP 38.38 22.76 15.62 Total Wada 722.84 696.97 25.87 Per Wada Payment 8,268 8,150 118.00 Regular Term D1 ADA 80 79 1.00 Summer Term D1 ADA
7,244 7,220 24.00 State Revenue Projection 6,599,622 6,156,925 442,696
for last two months
performance going forward, as these costs have exceeded
and fund balance to 7.5%
state revenue
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With leadership and enrollment stability, a school reorg and strategic planning process underway, financial paradigm can at last shift from near-term to long-term. The time has come to marry a bold academic vision with a strong financial plan that can guide the school over the next 3-5 years.
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Alter academic model Renovate Facility Open a new campus
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Pain Points What the Future Might Hold Facilities and Debt Service
Leases end in FY 19. 2 of 4 loans paid off by 12/31/17; pay off LOC; refinance remaining IFF debt; identify modern facility with newer systems so to avoid high repair and maintenance costs
Transportation
School moves into median range of cost/ADA for STL charters, and/or figures out alternative way for families to access school
Administrative Support
Development plan facilitates addition of much needed admin support positions, which in turn, helps avoid burnout and turnover
Budget Year SY16-17 SY17-18 Current Future
Students 766 770 Attedence % 95% 95% Attrition % 4% 5% ADA 706 712 FRL 57 57 ELL 37 37 WADA 802 806 $/WADA 8,267 8,250 Revenue 5100 · Local Revenue 1,019,452 1,018,507 5300 · State Revenue 6,753,981 6,604,620 5400 · Federal Revenu 1,124,446 886,408 Total Revenue 8,897,879 8,509,535 Operating Expense 6100 · Salaries 3,930,903 3,937,494 6200 · Benefits 1,222,274 1,196,682 6300 · Purchased Serv 2,980,701 2,865,909 6400 · Supplies and M 441,572 328,300 6500 · Debt Service 269,853 181,151 Total Operating Expense 8,845,303 8,509,535 Net Operating Income 52,576 Starting Cash July 1 557,600 610,176 Ending Cash July 30 610,176 610,176 Fund Balance % 7.12% 7.33%
FY 18 Budget for Board Approval
Enrollment conservative at 770, goal is 800 Conservative revenue projections, leaving room to supplement targets should enrollment increase over the summer Setting per wada payment at $8250. April payment at $8268 Staffing at 95.2 FTE, with 76 instructional positions. That represents 10.1:1 student-teacher ratio, and 8.1 staff to student ratio, respectable numbers that should improve as enrollment increases Plant and transportation allocations continue to well exceed St. Louis charter average and median benchmarks Broadly speaking, strategy is to preserve current fund balance of % while implementing reorganization plan, making investment in staff salaries and program materials; and allocating for not yet identified facility needs
Local Revenue on par with FY 17 projection, but 100K target for donations with return of Director of Development position State Revenue declines 104K due to:
ada under-projection
Salaries holding to FY 17 levels, even with school reorganization and a 3.8 % average salary increase for teachers, and a 28% average increase for student support staff Benefits cost reduced with plan to phase out school coverage for dependents, a luxury the school can no longer afford to provide Purchased Services decreasing 115K with reduction in consultants, staffing agency costs, and SPED private placement costs Supplies decreasing 110K, essentially the amount of FY 17 school improvement fund allocation Debt Service reduced by 90 K with retiring of Pine, Papin debt and smaller nmtc tax credit reserve requirements
FY 18 budget represents bridge from past to future, with good upside and limited risk SLLIS will end FY 17 near where it started, with 550K in cash, and above 6% fund balance FY 18 budget built to maintain this level The reorganization is most financially leveraged at 800 students+. If SLLIS can grow back to that level in next few years, school can continue to build cash reserves and fund balance towards 10% AND make investments aligned with goals of educational program Compared to STL charter benchmarks, SLLIS remains an outlier in plant and transportation costs, as well as fundraising. Focusing
with financial plan