1. Great Falls Public Schools 2015-2016 Budget Recommendations Presented March 19, 2015

2. Our duties and challenges… To recognize the diverse needs of today’s student To recognize the needs of today’s workplace and today’s colleges To understand and predict on-going and escalating costs To mitigate uncertain revenue streams To develop a budget that provides for basic instruction AND comprehensive programming THANK YOU!

3. GENERAL FUND

4. BUDGETING DETERMINE ESTIMATED REVENUES DETERMINE ESTIMATED EXPENDITURES DETERMINE NEW BUDGET NEED COMPARE DETERMINE NECESSARY ACTION

5. $67,400,825 HB27: 2.3% for 2015-2016 1.8% for 2016-2017

6. HOW IS REVENUE ESTIMATED? This year’s local and state allocations w/o reserves $67,400,825 Additional STATE FUNDING: Factors: *Enrollment *Inflationary Funding Formula Changes HB 27 $1,885,545 New amount of Revenue $69,286,370 + = 2 nd year of the biennium estimate: $900,000

7. HOW ARE EXPENDITURES ESTIMATED? Preliminary Basic Assumptions Assume current expenditures are on-going while looking for efficiencies Estimate General Fund Budget Cost Increases & Earmarks: Data for Achievement ($54,520) Operational cost increases ($45,000) (utilities, minimum wage, etc.) Contractual obligations ($921,185) Health Insurance ($694,000) Total: $1,714,705

8. DETERMINE THE 2015-2016 BUDGET NEED This year’s local and state allocations w/o reserves $67,400,825 +$600,000 reserves to make budget (on-going costs) Anticipated estimated cost increases: Data for Achievement Operational Costs Contractual Obligations Health Insurance $1,714,705 New general fund budget amount needed to maintain comprehensive programming and staffing $69,715,530 + =

9. Compare the two: This year’s local and state allocations w/o reserves $67,400,825 +$600,000 reserves to make budget (on-going costs) Anticipated estimated increases: Data for Achievement Operational cost Increases Contractual Obligations Health Insurance $1,714,705 New general fund budget amount needed estimate $69,715,530 This year’s local and state allocations w/o reserves $67,400,825 Estimated New State Funding $1,885,545 New revenue amount $69,286,370 = = + + $429,160Shortfall $170,840

10. Compare the two: This year’s local and state allocations w/o reserves $67,400,825 +$600,000 reserves to make budget (on-going costs) Anticipated estimated increases: Data for Achievement Operational cost Increases Contractual Obligations Health Insurance $1,714,705 New general fund budget amount needed estimate $69,715,530 This year’s local and state allocations w/o reserves $67,400,825 Estimated New State Funding $1,885,545 Use of Reserves $430,000 (Option #1) New revenue amount $69,716,370 = = + +

11. Identified Needs: High personnel turnover in teacher aide positions that are stressing resources Solution: Increase the starting wage of these positions to $9.50 and to $10.00 after one year of service. Cost: $152,000 the first year Increasing enrollment in elementary school continue to create a need to hire more elementary teachers & programmatic opportunities at the secondary level create a need to expand class offerings. Solution: Hire more teachers Cost: $50,000 per teacher Needs continue to exist in supporting at-risk students with drug/alcohol addictions Solution: Hire drug/alcohol counselor or equivalent Cost: $50,000 per counselor

12. Federal Revenue & Expenditures: Spec Ed Staff Salary & Benefits = $136,000 Title I: Increase in poverty = slight increase in funding (45.72% to 47.58%) Increases in staff salaries = $74,560 5 more schools to total 10 must provide Supplemental Ed Services (SES) 500 students, multiple providers, 100 SES teachers and billing requirements 20% must be set aside for SES & can no longer fund teaching positions = $630,000 cut FTE reductions: 8.5 licensed positions (7.5 elem) 3 non-licensed positions TOTAL CUTS TO MAKE FEDERAL BUDGET = $840,560

13. #1 & #2 Options with no levy: #1: Use $430,000 from reserves to just roll over and balance the budget…no levy #2: Use up to $600,000 from reserves for roll over and needs…no levy: ($430,000 + $170,000)

14. #3 Options with a levy: To reach the cap: Elementary = $675,133 High School = $44,361 Total = $719,495 #3a: for $430,000 to roll over budget 3.89 mills = $5.09/yr/$100,000 taxable valued home or $.42/month #3b: for the $152,000 for the starting wage adjustment 1.38 mills = $1.81/yr/$100,000 taxable valued home or $.15/month #3c: for $582,000 for both above 5.27 mills = $6.90/yr/$100,000 taxable valued home or $.58/month #3d: for maximums allowed for roll over and needs ($719,495 = $582,000 + $139,495) 6.5 mills = $8.51/$100,000 taxable valued home or $.71/month

15. Option Review: #1: Use $430,000 from reserves to just roll over and balance the budget…no levy #1: Use $430,000 from reserves to just roll over and balance the budget…no levy #2: Use up to $600,000 from reserves for roll over and needs…no levy: ($430,000 + $170,000) #3: Ask taxpayers for help…run a levy: #3a: for $430,000 to roll over budget 3.89 mills = $5.09/yr/$100,000 taxable valued home or $.42/month #3b: for the $152,000 for the starting wage adjustment 1.38 mills = $1.81/yr/$100,000 taxable valued home or $.15/month #3c: for $582,000 for both above 5.27 mills = $6.90/yr/$100,000 taxable valued home or $.58/month #3d: for maximums allowed for roll over and needs ($719,495 = $582,000 + $139,495) 6.5 mills = $8.51/$100,000 taxable valued home or $.71/month

16. What’s next… The Board Budget Committee will take public comment tonight. The Board Budget Committee will generate a recommendation for the full Board of Trustees. The Board Budget Committee of Trustees make that recommendation to the entire Board on March 23. Board meeting on March 23

17. Other Timelines Thursday, March 26 Thursday, March 26: Deadline for trustees to call for an election…do not have to set levy amounts March 23 Board Meeting Friday, April 10 Friday, April 10: Deadline for trustees to set levy amount Tuesday, May 5 Tuesday, May 5: Election August 25 No later than August 25 : Budget adopted by trustees

18. PUBLIC COMMENT Followed by Committee deliberations