FY2017-18 Preliminary Proposed Budget March 13, 2017 FY2017-18 Initial Budget Summary • Shelby County Schools is more financially stable than the District has been since the merger. The District has realized savings in benefits and transportation and has poured those savings back into our schools. Also, SCS has actively communicated school choices to students and parents, mitigating significant enrollment loss. • An initial proposed balanced General Fund budget has been crafted at $945.2 million for FY2017-18 with input from students, teachers, school leaders, parents, community leaders, and employees. • In fiscal year 2017-18, the District is proposing to make an unprecedented investment of $47 million that will directly impact our schools and classrooms with a recommended $18 million use of General Fund balance. o Academic Transformation of Critical Focus Schools o Teacher Salary Raises o More Behavior Specialists o More Instructional Coaches o More Math & Literacy Interventionists FY2017-18 Initial General Fund Budget $970,000,000 $965,000,000 $960,000,000 $955,000,000 $950,000,000 $945,000,000 $940,000,000 $935,000,000 $930,000,000 FY2016-17 FY2017-18 Change Revenues Expenses $968,267,732 $945,184,189 $968,267,732 $945,184,189 -$23.1 million (-2%) -$23.1 million (-2%) The Initial FY2017-18 General Fund Budget is balanced with no planned use of fund balance. Overall, the initial General Fund budget is less than prior year budget by $23 million (or 2%) due to enrollment loss and non-recurring expenses. FY2017-18 Initial General Fund Budget Revenues $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 -$100,000,000 State* Shelby County Property Tax Local Sales Tax Federal FY2016-17 $476,647,471 $336,225,491 $120,478,447 $14,860,566 FY2017-18 $478,228,455 $332,862,984 $121,117,975 $13,152,451 Change $1,580,984 -$3,362,507 $639,258 -$1,708,115 Local City of Memphis Planned Use of Fund Balance School Vouchers Adjustment $9,182,410 $7,125,991 $1,333,333 $1,333,333 $9,540,014 $0 $0 -$8,637,000 -$0 -$9,540,014 -$8,637,000 -$2,056,419 BEP*: A projected decline due to projected enrollment loss of 900 students and the elimination of Cost Differential Factor (CDF) in the BEP calculation. Haslam's Education proposal is incorporated. Note that $476.6 million in FY201617 will increase to $485.5 million when a budget amendment for an extra $9 million is submitted this month. School vouchers: A projected decline due to the enrollment loss of 1,000 students in school year 2017-18. FY2017-18 Initial General Fund Budget Expenses • Overall, the initial General Fund budget is less than prior year budget by $23 million (or 2%) due to enrollment loss and non-recurring expenses. Minimal budget reductions will be experienced. • About 94 classroom teacher positions were reduced due to declining enrollment. No effective classroom teacher will experience job loss as a result of this reduction. • Other major reductions in the budget are below. o Reduced non-recurring investment in technology due to funds from e-Rate settlement and PARCC. o Reduced textbook supplies and materials by $1.5 million in FY2018 due to a significant purchase being made in FY2017. o Reduced literacy stipends and contracts by $1.7 million. o Reduced the number of Exceptional Children positions as our SPED enrollment declines – 90 SPED Educational Assistants and 31 SPED teachers. In FY2017-18, the District is still budgeting $330 more for each SPED student than the prior year. o Reduced technology investments for Virtual Schools due to non-recurring investments in FY2016-17. o Lowered the substitute budget with greater emphasis on placing effective teachers in classrooms and the absence management pilot. o Reduced Project Graduation to be offered only in the second semester. o Lowered security overtime for Safety and Security staff by $389,000. FY2017-18 Initial Budget Investment Recommendations 1st Tier Investments: Direct Resources in Schools 2nd Tier Investments: Support to Schools FY2017-18 1st Tier Investment Recommendations 1st Tier Investment Recommendations: Direct Resources in Schools ($47 Million) School/Classroom Resources Instructional Support/PD • Strategic Compensation/ Teacher Raises ($10.5M) • Excess Pool for Effective Teachers ($2.3M) • 30 Educational Assistants ($980K) • 11 Assistant Principals above staffing formula ($1.1M) • Staffing Exceptions ($2.6M) • Extra $50 supply increase for Classroom Teachers ($195K) • Extra $150 supply increase for Arts Teachers ($50K) • District Zone School Improvement Grants ($1.1M) • 8 Instructional Math Coaches ($832K) • 5 Instructional Literacy Coaches ($520K) • 5 Instructional Science Coaches ($520K) • School Leader Development ($800K) Social & Emotional Support • 15 Guidance Counselors above staffing formula ($1.2M) • Extra 20 Guidance Counselors ($1.8M) • 20 Behavioral Specialists ($1.6M) • SPED Investments over MOE ($6.3M) • Newcomer Program ($585K) Academic Intervention Academic Transformation • 10 Math Interventionists ($615K) • 10 Literacy Interventionists ($615K) • College & Postsecondary Preparation Program ($520K) • Investment in Critical Focus Schools ($5.3M) • Retention Bonus for Critical Focus Schools ($600K) • Summer Learning Academy ($3.2M)* • 10 School Improvement Instructional Advisors ($1.0M) • Transform Sheffield in iZone ($700K)* • East T-STEAM Academy ($1.2M) • School Choice Awareness/ Recruitment ($600K) • *Grant funded investments FY2017-18 2nd Tier Investment Recommendations 2nd Tier Investment Recommendations: Direct Resources in Schools ($21 Million) Academics • RTI Management system • 3 ELL mentors • 1 Professional Development Manager • Textbooks • Online Math & Literacy RTI tools • 2 Music Teachers and 1 Clerk • 1 CTE Data Specialist Human Resources Student Support • Early Retirement incentives • Employee recognition & rewards • Substitute management position • Evaluation Tool • HR Business Partner • HR Specialist • HR Associate • Non-Instructional PD Advisor • 4 part-time homebound teachers & stipend • 1 Attendance & Discipline Analyst • 2 Attendance & Discipline Specialists Communications • Academic Parent Teacher Team (APTT) model • Volunteer background checks • Volunteer management system • 1 Graphic Design Associate • 1 Development Specialist • 1 Videographer • School Messenger Mobile App • Media & Marketing services FY2017-18 Initial Proposed Budget for All Funds Revenues City of Memphis Shelby County State of Tennessee Federal Government Other local sources Total Revenues Expenditures Instruction Instructional Support Student Support Office of the Principal General administration Fiscal Services Regular capital outlay Other support services Student transportation Plant Services Community services Retiree benefits Food Service Debt Service Interest Charter Schools Total Expenditures Excess (deficiency) of revenues over expenditures General Capital Projects $ 1,333,333 453,980,960 469,591,455 13,152,451 7,125,991 945,184,190 $ 54,411,901 75,524 54,487,425 $ $ 480,286,136 28,960,760 52,787,563 57,682,448 13,337,149 6,238,602 38,307,459 22,607,372 77,587,339 1,802,094 32,389,091 96,125 133,102,052 945,184,190 $ 58,038,619 58,038,619 $ - ($3,551,194) Non-Federal 13,452,544 18,894,660 32,347,204 $ 4,573,068 529,494 69,036 3,135,000 125,000 849,160 22,296,408 31,577,166 $ $770,038 Federal Food Service Total Government 590,000 182,741,365 83,078,914 3,572,216 182,741,365 $ 87,241,130 $ 1,333,333 453,980,960 483,633,999 333,384,631 29,668,391 1,302,001,314 94,360,673 7,385,664 40,369,800 10,058,321 78,066 789,695 37,084,809 82,307,370 182,741,365 $ 89,693,034 $ 586,605,541 69,860,055 62,914,921 57,682,448 16,472,149 6,363,602 38,385,526 23,397,067 136,475,119 61,183,311 32,389,091 82,307,370 96,125 133,102,052 1,307,234,377 - ($2,451,904) ($5,233,063) FY2017-2018 Initial Proposed Budgets for Other Funds Federal • The following Federal Grants are expected to expire in FY 2017-2018: Focus School Grants, iZone Grants, SIG Cohort & Incubator Grants, and Turnaround Incubator Grants. Total estimated grant amount loss is $6.2 million. 32 grant funded are scheduled to be eliminated. Non-Federal • The Teacher and Leader Effectiveness Program is expected to decrease due to the expiration of the Bill and Melinda Gates Foundation grant in October 2017. This will be year-over-year reduction to nonfederal funds in the amount of $5.6 million. 8 positions are scheduled to be eliminated. Capital • In April, an additional capital request will be requested for mechanical, roof replacements, ADA and the construction of two new schools (New Alcy Elementary and New Goodlett Elementary). Nutrition • Nutrition Services Fund revenues are budgeted to increase by $3 million due to an expected increase in the meal reimbursement rate, which is based on the Consumer Price Index (CPI). - Questions Feedback