School Board Finance Committee Marh 9, 2017 0 IT PUBLIC SCHOOLS COMMUNITY DISTRICT FY 18 Budget Amendment No. 2 FY 18 Budget Amendment No. 2 Summary The district continued the implementation of the zero-based budget process with a line item review of all expenditures at the school and Central Office level. Budget Amendment No. 2 includes a line item review of school based expenditures and  Reflects the 2,127 student increase in Fall Count Day enrollment and corresponding increase in state per pupil and 31a revenue  Reflects Title IA and Title IIA increase in funding and carryover of approximately $18.5M  Increases the general fund contingency from $8.9M to ~$18M  Increases end of the year fund balance from $4.3M to $17.6M Budget Amendment No. 3 will include  Final transfer of revenue from the dissolution of the EAA  Increased fund balance from General Fund vacancies 3 FY 2018 Revenues and Expenditures Comparison Budget Amendment No. 2 Takeaways  Balanced budget with substantial contingency and planned increase in fund balance. Revenue  Overall increase in revenue of ~$41M from increase in enrollment, increase in Title IA and Title IIA, and an additional $2M in Special Education reimbursement. Expenses  Reduced allocated expenditures by eliminating unaligned district positions and unspent funding to vacancies to Contingency and fund balance.  Increased available funds for school level technology investments from carryover Title IA.  Increased Title IIA personnel costs for 4 FY 19 Proposed Budget FY 19 Proposed Budget Summary The FY 19 proposed budget is based on a strategic but conservative revenue and expense framework:  Enrollment remains constant at Fall 2018 levels  The state increase to the foundation allowance is at $120 (~$6M) per student and the increase is budgeted in the general fund contingency. Higher proposed increase stands at $236 more per student (~$12M)  All positions are fully funded and teacher vacancies are budgeted at Step 8 ($52,800)  Includes a $17.8M reoccurring general fund contingency and an additional projected reoccurring $8M surplus  Establishes a $42M set aside reserve or 10% of the budget  One-time funding and one-time costs for capital and infrastructure expenses have been shifted out of the general operating budget to be funded by one-time State Transition Funds and available one-time Fund Balance. 6 FY 19 Proposed Budget Strategy The FY 19 proposed Budget is balanced and accomplishes the following:  Continued the zero-based budgeting process by eliminating costs not aligned to new strategic plan at district and school level and adding positions and initiatives that are aligned.  Increases school based personnel with a focus on the whole child.  Streamlines time of principals to focus on teaching and learning, students, parents, and program implementation by converting fragmented and unproven contracted services to full-time personnel while the district covers the expenses for professional development, school programs, technology, blended learning, curriculum, assessments, and academic intervention tools  Empowers principals through additional personnel to mange and drive reform in their buildings through a comprehensive district reform plan.  Adopts ELA & Math curriculum for grades K-8, Tier I-3 intervention curriculum and professional development; blended learning; school program development, materials, and training; core technology and plans for expansion of curriculum adoption in FY 20.  Initiates contract to full-time employment strategy (beyond school level positions) at the district level through reduction in Kelly Services; administration in technology; finance; community engagement; select schools for custodians and security. 7 Revised School Staffing Model The school staffing model creates equity in services and personnel among schools with a dedication to the Strategic Plan. All schools should have a basic set of services and support, which are increased or decreased based on the school’s enrollment.  The district is committed to fully staffing our schools and is working with the DFT to recognize ALL certified teaching experience for current employees and new hires.  Staff allocation will be based on Winter Count student enrollment. Enrollment will be monitored over the summer and the start of the school year to adjust allocations. This creates stabilization with staffing and incentive to retain and recruit students at school level.  District will budget a set aside for class size, programmatic, and school improvement needs. Positions will be allocated above the school allocation after reviewing historic needs, master schedule, and enrollment trends. In future years, consistent and required additional positions will be embedded in the school’s allocation.  Remaining school-based Title I funds can be used for additional school level positions and technology. Contracted services would need to be 8 Summary – Proposed School Staffing Model School Leadership  Principal – Shift to 12 months  Assistant Principal – Shift to at least 1 AP at each school  Dean of Culture – 1 per school to lead the climate and culture services in the building Instructional Staf  Master Teacher – 2 per grade band (K-5, 6-8, 9-12) to support and coach teachers in ELA and Math  Core Teacher Allocation – Teacher allocation based on actual Winter Count data  Art or Music and Gym Teachers – At least 1 Art or Music and 1 Gym per school  Education Technician – Allocated by enrollment to support reading and math intervention  School Service Assistants – Assigned to increase support to PreK - 2 Other Positions  Guidance Counselor – At least 1 per school, based on enrollment to support social and emotional growth  Graduation Coach – 1 per high school to support graduation, college and career transitions  School Culture Facilitator – 1 per school to facilitate in school suspension and support climate and culture  Attendance Agents – 1 per school to work on student attendance and barriers to attendance  Clerical – At least 2 per school, allocation and role based on enrollment 9 FY 19 District Level Budget Initiatives • Addresses staffing needs at district level to lead comprehensive districtwide reform with concentration of change in HR and Budget • Funds K-5 Cultural Passport, expansion of K-8 athletics through feeder patterns, additional art and music equipment, and chess • Establishes one-time funding for school level programmatic build out, including accelerated programs, performing arts, and STEM • Lays foundation to upgrade technology districtwide at the school level (laptops, interactive TV monitors) with consistent online learning programming (supplement, not core) • Upgrades principal and teacher professional development • Establishes uniform and upgraded district website and student information system • Expands afterschool and Saturday school services • Creates one-stop shop onboarding system for HR 10 Multiple High School Campuses • The district currently operates multiple small high schools on three campuses, Cody, Mumford, Crockett/Carson. The district can reduce administrative costs and create singular leadership to improve program implementation and student enrollment. • Cody Campus: 3 schools with a combined enrollment of 765 students, and the three smaller high schools with enrollment between 217 to 328 students. A combined Cody would receive a normal allocation of staff and save nearly ~$1.1M. • Mumford Campus: 2 schools with a combined enrollment of 938. A combined Mumford would receive a normal allocation of staff and save between $735K - $825K. • Crockett/Carson: The campus has a school and a CTC program. If the CTC program was embedded as part of the core curriculum, then Title funds could be used to offset the costs. The net general fund 11 savings could be $100K - $200K. Heuen ue a nd 5c: rces: Lecalspurces State scrurces Federal spurces F'rpceeds sale at capital assets Payments Other Districts Transfersln Tcital Revenue and 5c: urces Expenditures and Uses: Purchased Services Supplies Equipment El. Capital Utilities Title IflSrants Restricted Tcital Expenditures Edurces General Purpose Fund State Transitipn Fund Special Educatipn Fund 3 TetaIScuurces [Uses] Beginning Fund Balance Ending Fund Balance F":r 2019 Draft Budget F't' 2013 Budget F":r 2013 Budget F't' 2019 Draft Increase [Decrease] Duer Ft 2012 Actual Amendment 1 Amendment 2 Budget 2013 BA 2 52,523,312 25,395,542 23,229,255 21,531,139 ?5,593,125] 441,911,193 42 5,599,509 495,159,259 503,239,553 3,129,309 115,292,314 153,410,004 122,305,905 124,555,353 1,259,453 9,453,224 - - - - 34,104,390 13,103,013 13,103,013 5,903,013 ?5,203,013] 2,521,450 2,013,013 2,013,013 2,013,013 - 555,351,443 219,505,155 251,294,929 253,235,025 [3,003,354] 412,935,542 49 5,341,999 435,132,032 510,939,252 25,352,230 135,259,392 152,130,512 155,901,315 159,033,594 ?5,393,222] 15,239,051 20,2 30,922 35,33 9,535 12,442,515 ?24,392,021] 4,129,032 10,035,429 10,130,453 3,944,254 ?5,235,209] 13,2 34,225 15,425,013 15,42 5,013 15,549,432 124,432 5,113,339 4,223,505 23,951,290 24,233,234 532,393,323 205,932,905 219,252,503 231,995,452 12,233,944 3,900,013 12,995,333 12,331,299 ?154,039] 435,013 522,5 52 ?522,5 52] 3,2 55,035 352,321 ?2,392,155] - - 2,2 94,243 - ?2,294,243] - 9,335,000 24,522,539 13,199,120 [5,323,519] - 23,953,120 23,953,120 95,422,352 23,953,120 5 33,250,359 95,422,352 104,513,305 12 DPSCD preliminary 5 Year projection summary Based on preliminary assumptions, DPSCD is projecting a balanced budget through FY 2023 with a modest surplus in the early years. $ in millions Projection  850 Re ve n u e s a n d E xp e n se s 765 680 $667 595 $588 $720 $715 $761 $744 $758 $750 $762 $748 $774 $763 $787 $779 $794 $792 $105 $118 $129 $137 $140 $96 510 425 340 255 170 85 $79 $83 0 Blank Expenditures Contingency Total Expenditures DPSCD Fund Balance 13