FY21 Finance Committee Recommended Budget for Board Vote Special - - PowerPoint PPT Presentation

FY21 Finance Committee Recommended Budget for Board Vote

Special Meeting of the Portland Board of Education May 26, 2020

Agenda

• Update on where we stand

○ Timeline ○ Current proposed budget

• Review of Board member questions posed since last week
• Board discussion and vote

Budget Timeline

Full Budget Calendar available here.

May 26

School Board Vote

June 1

City Council Public Hearing and First Read

June 15

City Council Vote

July 14

Public Vote

FY21 Budget Overview

FY21 Budget $119.9 M 2.1% Increase over FY20 0% School Tax Rate Increase Last Year: 6.2% Last Year: 4.9% Last Year: $117.4 M

Update on Budget Process

Current Scenario (Finance Committee approved with endorsement from City Finance Committee) Budget Required Tax Rate Increase Gap No Tax Increase

$119,862,677 0% ($472,000)

Where we stand today

Makes up the gap between 0.5% tax rate increase and 0% tax rate increase with $100,000 contractual svcs cuts and proposed TBD reduction in COLA and/or co-curricular programming ($372,000)

Current Proposed Budget

Reduction in negotiated/non-negotiated COLA* and/or offset by co-curricular reductions for the difference $372,000 Academics/Central Office Contractual Services $100,000 Needed Offsets to 0% tax increase $472,000 Total Gap for 0% Tax Rate Increase $472,000

*Note: an additional $100K in cuts to COLAs (the amount equivalent to what was previously budgeted for non-rep) was already built in to the May 7 Proposed Budget, making the total cuts to COLAs in this budget = $472K.

The Finance Committee:

• Approved a $119,862,677 budget and referred to the Board on 5/18

○ Includes a 2.1% revenue/expenditure increase and a 0% tax rate increase.

• Requires a $472,000 offset to retain Title I investments
• Current budget includes a $100K decrease to Academics/CO contractual reductions.
• Includes an additional $372K in COLA reductions, with reductions to athletics and

co-curriculars as a “backstop” in the event COLA reductions at this level cannot be achieved.

• 0n 5/21, the City Council Finance Committee endorsed this budget.

Update on Budget Process

FY21 Reductions

Description Savings

Fourth & Fifth Grade Spanish Classes

(4.0 Teachers) ($257,000)

High School Staffing (enrollment-based)

(3.0 Teachers) ($195,000)

Central Office / Operations

(1.0 Custodian) Contracts, Contingencies COLAs (non-rep) ($41,000) ($250,000) ($150,000)

Supplies

3% Reduction ($51,000)

Athletics/Co-Curricular

6% Reduction ($140,000)

Additional COLA Reductions (or Co-Curricular)

COLAs - TBD ($372,000)

Total

(8.0 FTEs) ($1,457,000)

FY21 Investments

Description Cost

Pre-K Expansion

2.0 Teachers 2.0 Ed Techs Expansion Sites $291,000

Sustain and Deepen Core Instruction

Illustrative Math and Phonics - Scale up $125,000

Special Education- Extend the Continuum of Service for Students w/ Autism

2.0 Ed Techs 1.0 Teacher 3.0 Ed Techs $293,000

Nursing Adjustments

0.8 School Nurse $57,000

Preserve Title Investments

6.8 Teachers $665,000

Total

17.6 FTEs $1,430,000

CARES

• CARES funding allocations released last week

○ Allocation = $1,926,769 ○ This = 80.4% of FY20 Title I allocation amount, using Title I proportionate shares for private schools (favorable over USDOE proposed alternative)

• Currently budgeted $1,273,307 in custodial salaries, pending

application submission and approval of proposed use

• Leaves a reserve balance of $653,462

Contingency Planning

Needs

• PPE, custodial supplies, space modifications, etc.
• Extended learning (extended day, extended year, targeted supports)
• Remote learning costs (equipment, curriculum)
• Engagement supports (PCS, extended family engagement)
• COVID-related HR expenses (leave coverage, unemployment)
• Potential curtailments

Funding Sources

• Situational Reductions

○ Fall sports ○ Transportation

• CARES reserves
• Potential future stimulus

What’s Still Missing from this Budget

Mitigating the Gap Total Potential Investments (Prioritized)

Description Cost Secondary SLIFE Program

Lau Plan / ELL

$143,000 Dually Identified Student Supports

Lau Plan / ELL

$90,000 ELL Collaboration & Specialized Instruction

Lau Plan / ELL

$441,000 Special Education Caseloads

Special Education

$98,000 Fully Fund Curriculum Scale Up

Core Instruction

$40,000 Website

Other

$50,000 Total $862,000

FY 22: Risks and Mitigation

Risks

• FY22 projected budget, roughly $126.5

million ○ Escalation of salaries and benefits ○ Debt service ○ Salaries on the CARES grant returning to General Fund

• Expect EPS will decrease by $2.5-3 million

○ Valuation fundamentals are still in play ○ Assumes state will pick up a higher share of cost of education Mitigation

• Retain flexibility to make moves to

reduce expenses in this fiscal year (i.e. furloughs, COLA reductions, etc) ○ Preserve CARES funding into FY22 to the extent possible ○ Balance with acute need to make investments in FY21

• Key structural/programmatic changes

under consideration ○ Elementary reconfiguration ○ Middle school model ○ High school staffing formula Federal CARES funding as a variable for either side

Class Size

East End Grade 3 Longfellow Grade 1 Lyseth Grade 2 Reiche Grade 1 Riverton Grade 1 Total Impacted Schools & Grade Levels Grade 1 Grade 2 Grade 3 Cap of 22 19 19 21 Cap of 25 21 20 21 Average Class Size

(excluding Island School data)

As projected for FY21 per enrollment as of April 2020 Savings = 5 classrooms 5 classrooms @ 65,000 = $325,000 Note: This latest enrollment data no longer supports classroom increases at Presumpscot or Reiche, even without a class size increase. Savings = $130,000.

QUESTIONS