1. 2013-2014 Budget Projections April 22, 2013

2. What Will Be Covered Tonight? Update on state legislature and public school funding 2013-2014 Preliminary Budget Projections 2

3. Update on State Legislature and Public School Funding Senate Bill 1 - $1.5B House Bill 1 - $2.5B No new Instructional Facilities Allotment Direction of 2013-2015 final state budget? 3

4. 2012-2013 Average Daily Attendance (ADA) 2011-2012 final ADA4,420 2012-2013 budgeted ADA4,509 2012-2013 year to date ADA (as of 4/1/13)4,560 –(increase of 51 ADA over budget) –(increase of 140 ADA over last year’s actual) –Subject to change throughout the year (usually decreases) Possible increase in General Fund revenues of $239 K –(Increase contingent upon continued ADA levels) Hired 3 teachers at $150 K + classroom supplies of $7,500 + Instructional improvements/support of $63K = $221K Increased revenues of $239 – additional costs $221K = $18K 4

5. Budget Assumptions Through 2014 HB1 with $2.5B new state funding More students = more revenues Balanced budget Projections: 2.0% property values increase (No impact on total LISD General Fund revenues) 3.4% ADA increase 5

6. Sequestration of Federal Funds for 2013-2014 Approximately 5.1% reduction – reduces federal budget deficit Affects 2013-2014 school funds by increasing the General Fund budget Increases LISD share of Special Education Cooperative by $127K 6

7. 2013-2014 Preliminary Budget Projections 7

8. Employee Compensation Plan Objectives Recruit quality employees Retain (and develop) quality employees 8

9. Employee Groups & Descriptions 9

10. 2012-2013 Employee Compensation Model “3-3-5” –Teachers, Librarians, Registered Nurses 3% –Administrative/Professionals 3% –Paraprofessionals, Clerical, Auxiliary 5% Teachers, Librarians, Registered Nurses $1,600 minimum increase $42,600 starting 10

11. Considerations Structural adjustment (increase scales by 1.5%) Employee Compensation Plan Restoration of 8.3% reductions of stipends/extra days (June 27 2011) 11

12. 2013-2014 Employee Compensation Models 12

13. Employee Compensation Models Cost Estimates With 100% Contribution to Insurance Increase 13

14. Employee Compensation Models Cost Estimates With 50% Contribution to Insurance Increas e 14

15. Employee Compensation Models Cost Estimates With No Contribution to Insurance Increas e 15

16. Employee Compensation Models Impact on 2013-14 Budget 16

17. Budget Timelines Budget Updates at Regular meetings: May 20, 2013 Legislative Update Employee Compensation Plan(s) – including additional staffing Special Called Meeting: June 3, 2013 Call a public hearing Approve tax rate to be published Possibly approve Employee Compensation Plan Regular meetings: June 24, 2013 – Budget adoption August or September 2013– adopt tax rate 17

18. Questions? 18