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FY13 Preliminary Budget Kodiak Island Borough School District Luke Fulp Chief Financial Officer February 10, 2012.

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Presentation on theme: "FY13 Preliminary Budget Kodiak Island Borough School District Luke Fulp Chief Financial Officer February 10, 2012."— Presentation transcript:

1 FY13 Preliminary Budget Kodiak Island Borough School District Luke Fulp Chief Financial Officer February 10, 2012

2 KIBSD by the Numbers 2,500 students 420 Employees 14 “Brick & Mortar” Schools 1 Correspondence Program 9 Communities Kodiak (6 schools) Akhiok Chiniak Danger Bay Karluk Larsen Bay Old Harbor Ouzinkie Port Lions

3 Budget Assumptions RevenueExpense Enrollment will decline by 7 students o 2,512 Students Reduced funding from Kodiak Island Borough No increase to BSA o $5,680 No increase in pupil transportation funding No salary schedule increases 7.2% increase to health insurance Town Utilities o Power: $ /KWH o Fuel: $3.50/gallon 5% increase to property/general liab. insurance

4 What is known… The Governor’s budget included no new increases for K-12 education o HB 273 (enacted in 2008): $476,950 o HB 108 (energy funding): $425,298 Salary costs will increase as a result of regular movement on the salary schedule

5 What is unknown… Whether or not assumptions will hold true The outcome of collective bargaining Level of funding from KIB and State of Alaska

6 Revenue v. Expense With On-BehalfWithout On-Behalf

7 Deficit Contributing Factors…

8 Revenue

9 Expense

10 Expense by Major Category

11 Employee Benefits BenefitAmount Salary / Benefit Contingency213,249 Health & Life Insurance6,155,991 Unemployment Insurance60,195 Worker’s Compensation336,482 FICA/Medicare Contribution676,100 TRS8,470,066 PERS2,122,739 Other Employee Benefits186,850 Total18,221,672

12 Expense by Object History

13 TRS/PERS History

14 Anchorage CPI-U

15 Selected Components of Anchorage CPI, N, F. (2010). The Cost of Living in Alaska. Alaska Economic Trends, 3-10.

16 Major Benefits

17 Major Benefits Without On-Behalf

18 Historical Utilities Chart

19 Heating Fuel History

20 Presentation to House Education Committee and House Finance Sub- Committee for Education February 10, 2012

21 LPSD Perspective Located on the Alaska Peninsula – LPSD operates 13 schools serving 14 communities LPSD covers 32,000 square miles Our communities are small and remote with school year access limited to air service at 13 locations Our community populations are declining as well as student enrollment

22

23 LPSD Student Achievement Benchmark (proficient or advanced) Student Comparison % Benchmark in Math 33%34.7%46.3%48.5%58.4%66.8%67.7% % Benchmark in Reading 55.1%60.9%67.8%66.1%67.3%75.5%71% % Benchmark in Writing 46.1%54.1%51.1%56.2%62.1%67.6%69.4% LPSD implemented a Standards Based System in the school year. While the process has had its share of ups and downs, 10 years later there is no ignoring the results.

24 What are the factors creating our student success? Individual education plans as part of the standards based system Recruitment and retention of quality teachers – in 2010 LPSD implemented a longevity bonus for teachers Targeted professional development and research-based curriculum Early literacy programs distribute age appropriate books to children from birth – 3 years of age Literacy coaches providing classroom instructional support Certified tutors providing intensive individual instruction for students

25 Revenue Assumptions: – No Base Student Allocation Increase – Federal Impact Aid program – expected 8-10% reduction – Increase in Borough funding due to increase in property valuation – ISER increase from to – Hold Harmless – 5% reduction in student count from FY11 at final level of 25% – Reduction in Federal grant funds and grants ending – E-rate overall funding decreasing from 86% to 81% – PERS on-behalf increase from 8.76% to 13.84% – TRS on-behalf increase from 30.05% to 40.11%

26 THE LAKE AND PENINSULA SCHOOL DISTRICT Revenue By Source BudgetedProjected Change Borough Appropriation1,028,7921,172,513143,721 Local Revenue265,617 0 State Foundation8,964,7768,856,865(107,911) One-time Energy Funding139,3210(139,321) Federal - Impact Aid & ERATE2,952,0792,698,886(253,193) 13,350,58512,993,881(356,704)

27 Reduction in general fund revenue: $356,704 Reduction in federal grant revenues: $873,925 Overall Program shortfall for FY13: $844,387

28 THE LAKE AND PENINSULA SCHOOL DISTRICT Expenditures by Function BudgetedProjected Change GENERAL INSTRUCTION4,649,7664,579,502(70,264) SPECIAL EDUCATION910,607940,30029,693 SPECIAL ED-SUPPORT SERV.106,652119,15012,498 SUPPORT SERVICES-PUPILS99,280200,500101,220 SUPPORT SERV.-INSTRUCTION1,385,5501,652,255266,705 SCHOOL ADMINISTRATION727,570722,400(5,170) SCHOOL ADMIN SUPPORT51,55053,6502,100 BOARD & ADMINISTRATION610,577616,5195,942 DISTRICT ADMIN SUPPORT SERV.464,450500,79236,342 MAINTENANCE3,010,2503,221,000210,750 PUPIL ACTIVITIES404,600482,20077,600 TRANSFERS791,110750,000(41,110) TOTAL BUDGETED13,211,96213,838,268626,306

29 Our shortfall is a result of: – Expected reduction in impact aid – No anticipated increase in BSA – Continued increase in utility and energy costs – Expected loss of FY12 one-time energy funding – Expiring federal grant dollars – Increase in general transportation and postal expenses for transporting staff and materials

30 Planned cost saving measures: Explore outsourcing food service Reduce principals: 5 FTE to 4 Reduce teachers: 5.26 FTE from 48 to Reading Coaches: 1.5 FTE from 2.64 to.5 Eliminate district counselors: 2 FTE Reduce supplies & materials: $100,000 Reduce travel of district iterant staff Reduce professional development travel

31 Major Budget Impacts: Utility and energy costs are increasing at staggering rates despite efficiency measures; costs continue to increase inspite of reduced usage Electricity costs in FY12 have increased on average $0.10 per kilowatt hour over FY11 increasing electricity costs by $129,400 Fuel prices continue to rise and ranging from $2.99 to $8.00

32

33 LPSD Reality: LPSD has reduced administrative and maintenance positions over the last few years and worked to increase efficiencies in energy usage and travel. The fact remains that we cannot keep pace with the general inflationary costs any longer without cutting classroom staff and reducing educational programs resulting in fewer opportunities for our students.

34 LPSD strives to operate as effectively as possible and absorb budget reductions in non-instructional areas. However, with anticipated reductions necessary for FY13, the core of our instructional program will be impacted.

35 Thank you for this opportunity to share our budget information and our specific circumstances related to educating our students. Laura Hylton, Business Manager Lake and Peninsula School District x310

36 Sitka School District FY2013 Preliminary Operating Budget

37 Stat Sheet Located in the City and Borough of Sitka Major Industries are Commercial fishing Tourism Health care Education Government agencies Not on the Road System Population 8800 (flat since 2000) 1,306 full time students 200 approximate full time equivalent employees 5 Schools (all on the island)

38 Actual, 2012 Budgeted, 2013 Projected Revenues 2009 Actual 2010 Actual 2011 Actual 2012 Budgeted 2013 Projected State Funding 9,782,28610,531,61511,207,72112,303,659 11,964,276 Local Funding 5,639,2425,574,4955,243,3595,186,975 Federal Funding 880, , , ,912 30,000 Total Revenue 16,301,67716,864,78317,063,46218,038,546 17,181,251

39 Actual, 2012 Budgeted, 2013 Projected Revenues 2009 Actual 2010 Actual 2011 Actual 2012 Budgeted 2013 Projected State Funding 9,782,28610,531,61511,207,72112,303,659 11,964,276 Local Funding 5,639,2425,574,4955,243,3595,186,975 Federal Funding 880, , , ,912 30,000 Total Revenue 16,301,67716,864,78317,063,46218,038,546 17,181,251

40 FY2013 Revenues

41 Actual, 2012 Budgeted, 2013 Projected Employee Expense 2009 Actual 2010 Actual 2011 Actual 2012 Budgeted 2013 Projected Teachers6,889,4286,994,2447,073,7437,279,5467,480,163 Admin1,143,4251,179,2331,189,7501,280,0201,315,380 Classified1,520,5491,595,1091,594,0841,780,1671,848,785 Benefits3,405,6143,301,5923,491,6503,942,4983,989,053 Substitutes257,700350,007386,191335,000308,000 Total Expense 13,216,71613,420,18513,735,41814,617,23114,941,381

42 FY2013 Employee Expenditures

43 Actual, 2012 Budgeted, 2013 Projected Non Employee Expense 2009 Actual 2010 Actual 2011 Actual 2012 Budgeted 2013 Projected Maintenance1,474,3801,535,1551,518,9921,583,716 1,664,660 School/Program505,561795,913684,798649, ,595 Dist. Admin303,089304,697360,585518, ,803 Technology52,543104,501324,982394, ,200 Contract Svcs69,25781,40374,951157, ,100 School Board33,40141,94637,32757,100 47,100 Activities116,180147,843166,164158, ,402 Transfers 260, , ,953 53,000 28,000 Total Non-Emp Expense 2,814,8163,259,1633,339,7523,572,530 3,530,860

44 FY2013 Non-Employee Expenditures

45 FY2013 Total Expenditures

46 FY2013 Summary Revenues17,181,251 Employee Expenditures14,941,382 Non-Employee Expenditures 3,530,860 Total Expenditures18,472,242 Surplus/(Deficit)(1,290,991) June 30, 2012 Fund Balance (est) 1,211,261

47 FY2013 Count Impact and Budget Estimates February 6, 2012 FY FY Difference Estimated Number of Students Revenues 2013 City/Boro Appropriation5,026,975 0 Misc Local Revenue30,000 0 E-Rate130,000 0 Quality Schools43,88343, HB108 Allocation220, ,639 Foundation12,039,13711,920, ,581 Impact Aid30,000 0 Federal Secure Rural Schools517, ,912 Total Revenues18,038,54617,181, ,295 Expenditures Salaries and Wages10,674,73310,952,329277,596 Benefits3,942,4983,989,05346,555 Maintenance1,583,7161,664,66080,944 School/Program649,988647,595-2,393 District Administration518,181466,803-51,378 Technology394,200427,20033,000 Prof/Tech/Contract Services157,700138,100-19,600 School Board57,10047,100-10,000 Student Activities158,645111,402-47,243 Transfers Out53,00028,000-25,000 Total Expenditures18,189,76118,472,242282,481 Total Gain/(Loss)-151,215-1,290,991

48 Thank You!

49 Presentation to House Education Committee and House Finance Sub-Committee for Education Fairbanks North Star Borough School District Mike Fisher, Chief Financial officer February 10, Square Miles: 7,361 Population: ~98,660 Enrollment: ~14,300 Schools: 35

50 The Fairbanks North Star Borough School District at a Glance % 75.5% 71.1% %.6% 86% 80% % 40 50

51 For students under 16 years old.6% 51

52 52

53 Numbers with no $ signs 75.5% 90.0% % 90% 86% 5 year cumulative graduation rate in Average daily attendance rate for all students in Average cumulative GPA for the Class of 2011 graduating Seniors. Number of different cultural and language backgrounds served. Avg. daily attendance rate for the Class of 2011 graduating Seniors. 92.8% Class of Seniors who rated the overall quality of their education at their school as “good” or “very good.” Parents satisfied with the quality of their elementary child’s education in language arts. Parents satisfied with the quality of their elementary child’s education in mathematics. 54%Teachers who have at least a master’s degree. 25 Teachers who have achieved National Board Certification.. 53

54 A Slide with No Numbers at All... District students scored at or above the national average in reading, language, math, science, and social studies on Terra-Nova national standardized tests. District students yield higher average results on the SAT and ACT exams than students in the state and in the nation. 54

55 Successes are a result of innovative programs and schools of choice Innovative programs and schools of choice in Fairbanks: – Lathrop High Engineering Academy – Hutchison High Construction Academy – James T. Hutchison Career Technical High School (Partner w/UAF) – Barnette K-8 Magnet School – Chinook Montessori Charter School (K-8) – Effie Kokrine Early College Charter School (9-12) – Star of the North Secondary Charter School (7-12, Credit Recovery) – Watershed Charter School (K-8, Place Based) – Building Educational Success Together (BEST) Correspondence – Students Making a Right Turn (SMART) Program 55

56 But success requires support from many sources A Comment about TRS/PERS On-behalf payments and the unfunded liability

57 Our continued success will take both increased and sustained funding. Unfortunately, our Proposed Budget is based on what we know, which is flat funding. 57 We will continue to do the best we can to offer a comprehensive education experience to our students. But it will not be the same experience offered in , and the same successes may not be realized. Why?...because like many, we are facing a substantial budget shortfall...

58 The looming shortfall... $180.9m Operating Fund Budget $192.4m “Maintenance Level of Services” Budget (+$11.5m) $180.1m Projected Revenue ($ 12.3m ) Projected Budget Shortfall Assuming: 1.Flat local funding... 2.No increase to BSA... 3.Loss of one-time state energy funding... 4.Flat federal funding... 5.Small enrollment increase... 6.Final adjustment to DCF... 58

59 What is a maintenance level budget? Absorbing the cost of 22 one-time funded “jobs bill” teachers... $ 2.0m + Adding over 23 Special Education specialists (School Psychs, OTs, PTs, Speech Pathologist, Teachers, and Aides to meet mandated level of services... $ 2.3m + Purchase social studies and career technical curriculum materials deferred from the current year... $ 1.4m + Increased subsidy to the Pupil Transportation Fund... $ 1.0m + Salary, wage, health, and other benefit cost increases for over 1,740 positions and a $105m dollar payroll... $ 4.0m + Inflationary pressures on energy and utilities, supplies, materials, maintenance, and other service contracts... $.8m Maintenance Level Budget Increase... $ 11.5m + 59

60 Projected Revenue Local Funding$ 48,468,300 $ (29,200)$ 48,439,100 Federal Funding$ 13,985,250 $ (28,970) $ 13,956,280 State Funding$ 116,435,440 $ (566,800) $ 115,868,640 Use of Fund Balance$ 2,079,820 $ (229,820) $ 1,850,000 Funding Source11-12 Budget Change Budget Changes in State Funding: Base Student Allocation (BSA) $ One-time Energy Funding $ (2,137,890) Enrollment, categorical sped, dcf $ 1,455,200 QSI and other State revenue $ 115, Total$ 180,968,810 $ (854,790) $ 180,114,020

61 61 The looming shortfall... Reduced revenues $.8m + Cost increases $ 11.5m + The looming shortfall $ 12.3m + We do not expect the state or any one funding body to make the shortfall go away. There will be an adjustment to a more sustainable level of service. There will be cuts. They will impact all areas including the classroom. But a reasonable and permanent increase to state funding is justified and necessary to continue the successes gained over the past few years. Continued flat funding of the BSA, or one-time funding from the state, will likely increase class sizes, put programs in jeopardy, or only continue to defer problems until the next year, and do little to help address the $12.3m shortfall.

62 What will $12.3m in cuts to maintenance level services look like? Eliminate 29 district-wide positions including assistant superintendents, management, maintenance staff, support staff, teachers, and reading and math tutors. $ 3.5m + Eliminate 28 Elementary School positions, including a principal and 27 teaching positions. Increase kindergarten class sizes by +1, grades 1-3 by +1.5, and grades 4-6 by +2. $ 6.5m + Eliminate 21.8 Middle School and Jr./Sr. High School positions, including an assistant principal and 20.8 teaching positions. Eliminate Middle School team collaboration time and increase grade 7-8 class sizes by +1.5 and Jr./Sr. High by +2. $ 2.2m + 62

63 What does $12.3m in cuts to maintenance level services look like? Eliminate 16.2 Senior High School positions, including 3 Counselors, 3 Library Assistants, and 10.2 teaching positions. Increase grades 9-12 class sizes by +2. $ 1.4m + Make across the board non-personnel cuts in most programs and services, including legal & risk support, recruiting, travel, advertising, operation & maintenance supplies and services, library support, professional development, instructional technology, school activities and supplies, and lobbying services. $ 2.1m + 63

64 Thank you for this opportunity to present.. While we appreciate past efforts of the legislature, and recent increases in categorical sped funding and district cost differentials, continued flat funding of the BSA will impact classrooms, programs, and the educational experience we can provide and the results we strive to achieve. 64


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