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FY16 Budget Discussion 11/03/14

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Presentation on theme: "FY16 Budget Discussion 11/03/14"— Presentation transcript:

1 FY16 Budget Discussion 11/03/14
Budget Assumptions Strategic Priorities Staffing Revised 11/3/14 4:30pm

2 FY16 Parameter Discussion (Resources)
1. The district will establish a millage rate consistent with the Board’s mission and vision. 2. The district will maximize State and federal grant fund resources by: Maximizing the use of existing grants and carry-over funds; Implementing new development strategies to access additional funding opportunities; Applying approved indirect cost rates to all federal grants; and, Collecting all monies due the district (i.e., out-of-district tuition, escheatment, court-ordered restitutions and intergovernmental payments) 3. The district will maintain a fund balance between 7.5% and the statutory limit of 15% of projected revenue. 4. The district will secure new, permanent funding streams to support priority initiatives, such as wrap-around services, college bridge programs, and early childhood education.

3 Resource Assumptions Local Tax Revenue – FY16 Projection assumes a 5% property digest increase from FY15 Projection. This compares to a 4.2% increase in the FY 15 property digest. We anticipate that the real estate market continued to strengthen in 2014. State Revenue – FY16 Projection assumes a 4% increase in QBE funding from FY15 Projection. This compare to a 7.6% increase in FY 15. The FY 15 increase was due in part to the reduction in the austerity cuts. Base QBE increased by 4%. Other Local/Federal – FY16 Projection assumes a decrease of 9%. FY 15 revenue was boosted by the sale of district assets.

4 FY16 Budget Assumptions (Resources)
Actual Budget Projection Resources 2013 2014 2015 2016 Local $411.6 $431.8 $467.1 $450.0 $473.2 State 143.7 153.3 151.2 165.0 171.7 Other 24.7 12.7 14.3 14.0 Revenue Total 580.0 597.8 632.6 629.0 657.6 Use of Fund Balance* -2.7 -3.1 25.0 0.0 Totals Resources $577.3 $594.7 $657.6 $654.0 *Negative number indicates an addition to fund balance Note: FY14 numbers are pre-audited

5 FY16 Budget Assumptions (Fund Balance)
$ in millions Beg. Bal. Ending Bal. Ending Bal. % Change FY2013 $80.90 $83.60 3.3% FY2014 $86.70 3.7% FY2015 $61.70 -28.8% FY2016 0.0% The State limits fund balance to 15% ($98.6 million) of projected revenue. APS BOE has established a targeted minimum fund balance of 7.5% ($49.3 million). Balances below zero requires state intervention.

6 FY16 Parameter Discussion (Expenditures)
1. Allocation decisions will be made to prioritize achieving a more equitable distribution of resources pursuant the district’s recent equity audit. 2. The district will allocate resources in accordance with the operating model selected by the board and approved by Georgia Board of Education. 3. The district will ensure that the budget is aligned to the Board’s draft mission and vision and that resources are allocated against key district strategic priorities in the areas of culture, systems improvements, talent strategy (including strategies to recruit/retain high quality staff and a comprehensive professional development strategy), and college and career readiness strategy. 4. The district will allocate resources to begin to address internal pay-parity, compensation issues over the next five years.

7 FY16 Parameter Discussion (Expenditures Cont.)
5. The district will fund pension obligations in accordance with State statute and actuarial standards. 6. The district will prioritize resource allocations that support improvement in student achievement and growth in math and literacy including a comprehensive textbook adoption strategy inclusive of online student and teacher resources. 7. The district will prioritize funding to address disproportionality in special education. 8. The safety, security, and well-being (i.e. social, emotional, and behavioral health supports) of students and staff will be prioritized in the budgeting process. 9. The district will invest to fix and maintain HVAC systems in schools buildings. 10. The district will invest in early childhood education programs.

8 Strategic Priorities and Draft Initiatives
Academic Program Culture Early Childhood Offerings (P10) Common Core/GPS Support Positive Behavior Strategies (P8) College and Career Access Strategies (P3) Strength-Based Strategies to Support Organizational Culture (P8) Ethical Programming and Practices (P3) Stakeholder Communication and Engagement Talent Strategy Systems and Resources Teacher and Leader Recruitment Strategies (P3) Teacher and Leadership Development Programs/Staff Professional Learning (P3) Equity in Compensation Study (P4) System Upgrade and Integration for HR and Finance Technology Strategic Facilities and Capital Plan (P9) Instructional and Infrastructure Technology Plans Budgeting Strategies (P1 and P2) Data Quality, Access and Management

9 FY16 Budget Assumptions (Prior Year Spending and Current Budget by Function)
Millions of dollars FY15 Amended FY14 Actual Functions Budget Expenditures Instruction* $404.1 $369.6 Pupil Services 26.2 18.9 Staff Services 19.2 17.6 School Administration 41.4 40.7 General Administration** 63.7 44.9 Student Transportation Service 27.7 24.2 Maintenance and Operation of Plant Services 75.3 78.8 $657.6 $594.7 *Increase due primarily to pay-raises, pension, furlough elimination, Charter School, SST, and non-core teachers **Increase due primarily to realignment of IT functions, computer refresh, and software purchases

10 FY16 Budget Assumptions (Prior Year Spending and Current Budget by Object)
*Increase due to TRS, health insurance, and bus driver conversion from p/t to f/t **Increase due to charter school enrollment

11 FY16 Budget Discussion (Pension)
Millions of dollars FY (Fully Funded 2030) 15 $48.9 16 $50.4 17 $51.9 18 $53.5 19 $55.1 20 $56.7 21 $58.4 22 $60.2 23 $62.0 24 $63.8 25 $65.8 26 $67.7 27 $69.8 28 $71.8 29 $74.0 30 $30.1 Note: Assumes 7.5% Annual Investment Returns

12 FY16 Budget Assumptions (Class Size Cost)
FY15 Scenarios for Increasing Class Size Waiver Teachers Para-professionals Total Change Cost Teachers Cost Para-pros Total Cost Savings 1927 229 2156 $ ,160,000 $ ,900,500 $ ,060,500 $ 1 1868 224 2092 64 $ ,440,000 $ ,728,000 $ ,168,000 4,892,500 2 1817 216 2033 59 $ ,360,000 $ ,452,000 $ ,812,000 4,356,000 3 1772 210 1982 51 $ ,760,000 $ ,245,000 $ ,005,000 3,807,000 4 1718 200 1918 $ ,440,000 $ ,900,000 $ ,340,000 4,665,000 5 1675 191 1866 52 $ ,000,000 $ ,589,500 $ ,589,500 3,750,500 $ ,471,000 Note1: High School Max is Waiver of 3 Note2: Based on avg. teacher salary of $80,000 Note3: Based on avg. para-professional salary of $34,500

13 APS Staffing Key Action to Determine Staffing: Class size waiver to be approved in December Enrollment to be approved in January 2015.

14 Conclusion and Observations
Without millage increase, available resources will be limited to approximately the current level. Ability to increase fund balance is constrained. Without additional resources, implementation of budget parameters and strategic initiatives will be limited to the ability to repurpose spending in existing functions and reprioritize spending between functions.

15 Next Steps Adopt resource estimates and class size ratios (December)
Discuss Enrollment Projections (January Work Session)

16 Questions

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