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The annual budget presents a complete financial plan and includes the following: Important features and major changes from the preceding year Projected.

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Presentation on theme: "The annual budget presents a complete financial plan and includes the following: Important features and major changes from the preceding year Projected."— Presentation transcript:

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2 The annual budget presents a complete financial plan and includes the following: Important features and major changes from the preceding year Projected revenues and expenditures from all sources with a comparative statement for the two preceding years, itemized by year, fund, source and activity Interest, amortization and redemption amounts due on debt funds A general budget summary April 3, 2008 Public Hearing 2

3 In no event shall the total proposed expenditures from any fund exceed the estimated revenues to be received plus any unencumbered balance or less any deficit estimated for the beginning of the budget year…….. April 3, 2008 Public Hearing 3

4 The Fiscal Year 2009 budget is marked with several challenges and key issues: Projected revenue = $320.0 M Local, state, and federal funding down $14.9 M Projected student enrollment decline of 3,000 Budget gap $24.9M and proposed resolutions Economic driven concerns Health benefits: +18.5% Utilities: +11% Foreclosures Unemployment Rate Federal Fund Rate April 3, 2008 Public Hearing 4

5 The Fiscal Year 2009 budget is marked with several challenges and key issues: Prudent and sustained cost cutting/containment initiatives Long range facility planning Reallocation of resources Revenue increase options Tax levy increase 3¢ levy increase generates $1M Bond issueNo Tax Increase Bond Issue Flexible use of DESEG funds April 3, 2008 Public Hearing 5

6 $ 4.4M decline in local revenue Property taxes Prop C Interest Tuition $ 7.3M decline in state basic formula funding $2.9M decline in federal funding Medicaid funding loss April 3, 2008 Public Hearing 6

7 Used FY08 projected expenditures, $335M, as baseline for FY08-09 budget FY08 projected expenditures of $335 includes additional budget cuts at the Central Office of $4M Build-up of additional expenditures for: Virtual Schools Homeless Program Rising utility prices Medical benefits increase Principals salary increase Fill 3 key administrative positions Workers Compensation Deficit Coverage April 3, 2008 Public Hearing 7

8 Defer DESEG loan payment Eliminate all non-essential vacant positions Staffing additions funded by reducing other positions Previously agreed upon salary increases only (Principals) Charter enrollment up only 5% Savings from school reconfigurations ($1M) Closing of Lyon, Mitchell, & Gundlach April 3, 2008 Public Hearing 8

9 FY09 budget based 27,062 students Charter school enrollment increase of 5% (8110) SLPSCharter VICC FY09 (projected)27,0628,1106,912 FY0830,1347,7267,597 FY0732,6945,4058,027 FY0635,6834,5148,257 FY0536,9544,3539,598 FY0439,9743,635 10,093 FY0339,3613,046 10,649 April 3, 2008 Public Hearing 9

10 FY07 FY08 FY09 Enrollment 32,694 30,134 27,062 FTE Staffing: Teachers 2,457 2, Total 4,412 3,985 3,643* GOB Revenues $353M $335M $320M * assumes staff reallocation used to cover budget gap April 3, 2008 Public Hearing 10

11 FY07-08FY08-09 Special Education Budget $ 65.2 M$ 67.3 M as a %-age of total District Budget ~13.3% ~14.9% Special Education Enrollment 5,333 5,000 April 3, 2008 Public Hearing 11

12 April 3, 2008 Public Hearing 12

13 Align limited resources with academic initiatives Improve instruction in an efficient and cost effective manner Balance expenditures with shrinking revenues Implement student achievement drivers April 3, 2008 Public Hearing 13

14 Representative of Academics to Speak April 3, 2008Public Hearing 14

15 Gifted Education Add 10 th grade to McKinley Classical Leadership Academy Increased enrollment at Kennard Classical Junior Academy Advanced Placement Program Increase curriculum rigor and relevance Earn college credit in high school Increase scholarship opportunities Early Childhood Education Meda P. Washington Increase program capacity Attract non-public school student s April 3, 2008 Public Hearing 15

16 Virtual Schools FY08 enrollment: 170 part-time, 40 full-time Attract charter and private school students Expand to all grade levels, K-12 Expand course offerings Dropout Recovery Program (Turner Branch) Over 4000 SLPS dropouts Consider Middle College with dual high school diploma + associates degree Partner with Community Colleges April 3, 2008 Public Hearing 16

17 Big Picture Alternative Education Program FY08 enrollment: 190 in 1 st - 10 th Add 11 th grade Enrollment increase Other Programs/Opportunities Expand ESOL program Expand use of instructional coordinators Enhance staff professional development Investigate therapeutic classrooms April 3, 2008 Public Hearing 17

18 FY07-08 General Operating Revenues $ 335 M FY08-09 Projected Revenues* 320 M FY Revenue Gap $ 15 M *Projected Charter School Revenue = $61.4 M April 3, 2008 Public Hearing 18

19 FY08-09 Projected Revenue Gap $ 15.0 M FY08-09 Expenditures Above FY07-08 Academic Initiatives $ 1.0 M Homeless Program 0.6 Increase, utility prices 1.0 Increase, medical benefits 5.2 Principals salary increase 1.1 Fill 3 key administrative positions 0.6 Workers Compensation Deficit Coverage 0.4 Additional FY08-09 Expenditures $ 9.9 M TOTAL FY08-09 Budget Gap $ 24.9 M April 3, 2008 Public Hearing 19

20 Staffing Realignments Attrition/Retirement$ 7.8 M Other Realignments$ 17.7 M Long Range Facility Planning Average annual cost per school$ 0.4 M 25 < 60% capacity$ 10.0 M Consider employee health care benefit participation 3,643 employees X $300/year $ 1.1 M 3,643 employees X $600/year $ 2.2 M 3,643 employees X $900/year $ 3.3 M April 3, 2008 Public Hearing 20

21 Free-and-Reduced meal participation 100% student participation generates additional $4M Increase student attendance rate One missed day per student costs >$20 1% increase in student attendance rate will generate $1.5M Non-payroll reductions Investigate refinancing options and funding for capital needs Reduce GOB burden with other funding programs April 3, 2008 Public Hearing 21

22 Resolution with Charter Payment Calculation (~ $10M) Increase local revenue (increase tax rate) Every $.03 increase generates ~ $ 1.0 M FY09 Governor budget increase recommendations (~$4.5M ) State Foundation Formula Proposition C Parents as Teachers Virtual School (MoVIP) eMINTS classroom technology Early Childhood Special Education Special Education High Needs April 3, 2008 Public Hearing 22

23 DESE payment negotiations Basic Formula Transportation DESEG loan forgiveness and settlement flexibility Rule of 80 vs. Rule of 85 April 3, 2008 Public Hearing 23

24 Funding Equity versus Charter Schools 2 nd preceding year student count Desegregation sales tax Prop C Categorical payments a) Exceptional pupil aid b) Gifted education c) Remedial reading education April 3, 2008 Public Hearing 24

25 Voluntary Inter-district Choice Corporation (VICC) $5M Special Education Tax Increment Financing (TIF) Transportation Reimbursement Regular Magnet Homeless No ADA for Pre-School April 3, 2008 Public Hearing 25

26 Organizational Restructuring Qualified Staff Critical Positions Employee Morale Aging Infrastructure Utility costs/usage spikes Necessary maintenance and repairs Community Support School closings Accreditation April 3, 2008 Public Hearing 26

27 Declining Enrollment Declining revenue Fixed costs Unfunded mandates Funding reserves Deficit spending Desegregation agreement standards April 3, 2008 Public Hearing 27

28 April 3, 2008 Public Hearing 28

29 April 3, 2008 Public Hearing 29

30 April 3, 2008 Public Hearing 30 GOB FUND BALANCE FY2001$55 FY2002$40 FY2003($23) FY2004($38) FY2005($26) FY2006($25) FY2007($13) FY2008($13)

31 April 3, 2008 Public Hearing 31

32 April 3, 2008 Public Hearing 32

33 Projected student enrollment of 24,748 Down an additional 2,300 Projected revenue of $306.9M Down an additional $13.3M Additional charter enrollment KIPP 09 April 3, 2008 Public Hearing 33

34 Fiscal Year 2008/09 Budget Book Published April 2008 April 3, 2008


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