1. FY17 BUDGET BASICS Minneapolis Public Schools Finance Office

2. DRAFT Timeline for FY 16-17 Budget January – Preliminary budget work completed Early February – Allocations are sent out February 15- March 4 – Budget Tie-Out Process March 7 – April 1 – Budget Tie-out files approved April – May – Final budget work completed June 14 – Budget presented to Board June 28 – Board votes on Budget adoption

3. Current Budget Timeline Budget planning and priorities set January Allocations Released February Community Engagement and feedback March Board reviews budget Final Revisions Apr-May BOE Votes new Budget June

4. How Does MPS Budget? Enrollment Projections Revenue Projections Expenditure Projections Budget development begins with assumptions and projections

5. Where does the money come from? Referendum (Voter approved property tax) Levies (property tax) Student Formulas (state funds) Federal Programs (Title I and Individuals with Disabilities Education Act for Special Education) Other funding (grants such as Cargill STEM and McKnight)

6. Categorical Funds MPS uses Compensatory $52.1M Achievement & Integration $15.6M Special Education $62M English Learners $5.5M Gifted & Talented $0.5M Extended Learning $9.4M State & Local Grants $19.5M Federal Programs $40.5M

7. 2016-17 General Fund Revenue

8. Revenue Projections General Education Revenue is received based on enrollment projections of adjusted pupil units Adjusted Pupil Units – The number of students served adjusted for the students open enrolled in other districts. Students K-6 count as a 1.0 and students 7-12 count as 1.2 General Education Formula current rate $6,067 per Adjusted Pupil Unit. These dollars are intended for the operation of the school district and are not designated by the State for a specific purpose. This is not the amount that is given to schools in their allocations. Compensatory Aid Formula given based on students receiving Free/Reduced lunch

9. Revenue Projections Other Categorical funds are received that must be used for specific purposes Special Education Integration Aid Title I English Learners Career and Technical Education Aid Safe Schools levy Referendum dollars

10. FY 16-17 Revenue Projections  Local Taxes (Levy)$115.3M  Other Revenue (3 rd Party billing, rental of$ 17.8M school facilities, earning investment)  State Aid (Gen Ed, Literacy, Contract Alt) $329.3M  State Support (Spec Ed, State grants)$ 70.0M  Federal grants$ 40.5M  Federal Indirect$ 1.0M  Sale of Bonds (Cycle of Replacement)$ 4.0M Total General Fund Revenue$577.9M

11. Title I Budget The Elementary and Secondary Education Act (ESEA), currently authorized as the Every Student Succeeds Act (ESSA) of 2015, is federal legislation that promotes student achievement through school and district reform. ESSA requires each state to develop and implement a system for holding all districts and schools accountable for the education of students and has strict guidelines on how the dollars can be used. 2015-16 Budget was $21,530,846 which included carryforward of $1.8M 2016-17 Budget is projected to be approximately $17.9 million

12. Title I Budget Reductions are occurring because: Poverty level in Minneapolis is decreasing while the State’s is increasing MPS State of MN MDE has indicated they are holding back a larger amount for administration of the program. 07-0808-0909-1010-1111-1212-1313-1414-15 61.7%61.8%63.5%64.4%64.8%65.3%64.6%64.0% 08-0909-1010-1111-1212-13 35.6%36.7%37.3%38.3%

13. Expenditure Projections In order to achieve a “Structurally Balanced” budget, expenditures cannot be more than the revenue projection. MPS is committed to developing a structurally balanced budget each year.

14. Several Priorities for General Fund  Office of Black Male Achievement $1.0M  Lower Class Size $6.5M  Prog Adjustment $14.0M  Time Adjustment $5.4M  Office of Black Male Achievement $  Lower Class Size $  Prog Adjustment $  Time Adjustment $ FY 16 FY 17 TBD

15. Priorities - Referendum Dollars Class Size $51.9M EL Classrooms $6.4M EL Itinerant Staff $0.1M Reading & Math Specialists $9.6M Instr Coach for Contract Alt $0.1M Science Centers $0.7M Textbook Adoption $2.7M Instructional Technology $2.5M $74M Class Size $ EL Classrooms $ EL Itinerant Staff $ Reading & Math Specialists $ Instr Coach for Contract Alt $ Science Centers $ Textbook Adoption $ Instructional Technology $ $77M FY 16 FY 17 TBD

16. How Schools Get Allocations Compensatory - based on State formula of Free/Reduced priced lunch. English Learners - MPS uses a combination of State and Referendum dollars to allocate to schools based on where the English Learner sites are located. Special Education – citywide programs (i.e. Autism or Emotional Behavior Disorders. Integration – determined by plan approved by MN Department of Education Class Size – allocated based on targeted class size. Title I – allocated on a per pupil amount based on free/reduced priced meals K010203040506070809101112 Poverty < 65%24 252632 36 High Proverty F&R >65% 2223 28 32 36 High Priority 18 24 28 36

17. School Allocations Example

20. School Allocation Example

21. Fund Balance Fund Balance - is a “reserve” in the General Fund use for unexpected matters to help budget continue to be balanced. The District fund balance policy is to maintain an unassigned reserve equal to 8% – 13% of expenses. Our current general fund unassigned fund balance is $49.4 million which is 8.6% of expenses.

22. QUESTIONS MPS.Finance@mpls.k12.mn.us