Board Work session April 11, 2017 2017-2018 Local Budget Request Board Work session April 11, 2017

Challenges Loss of Funding since 2009 which has not been restored Significant Increases in personnel and benefits costs since 2009 Retirement 2008-2009 Retirement Rate: 8.14% 2016-2017 Retirement Rate: 16.54% Increase of 103% in rate (8.4% increase in salaries) Health Insurance 2008-2009 Per Employee Cost: $4,157 2016-2017 Per Employee Cost: $5,754 Increase of $1,597 or 38% Declining enrollment Loss of Impact Aid K-3 Class Size legislation

Craven County Schools Changes in State Funding 2009-2017

Position Allotment Changes – STATE FUNDS (01) Teachers Instructional Support: Counselors, Media & Social Workers Note: Decrease in enrollment only accounts for 27 teacher positions

Efficiencies and Previous Cuts Fiscal Year 2017 Reduction of Central Office Staff Assistant Superintendent Leadership Coach 4.5 Clerical Positions Reduction of Administrative Costs 2 Evening School Directors Aligned evening course taking to be recovery rather than new credit Decreased teaching costs Decreased SRO costs Additional Reductions April 2012 – December 2015 166 Teachers 104 Teacher Assistants 2016-2017 Budget Development 20 elementary teacher 15 middle school teachers 6 Teacher Assistants

Craven County Schools Historical Enrollment

District Competitiveness Choice Opportunities in Craven County Public Schools Public Charters Private Schools Home Schools Overall Total 2015-2016 Total Students % of Total North Carolina 1,455,693 83% 79,575 4.6% 97,721 5.6% 118,268 6.8% 1,741,257 Craven County 14,186 85.6% 179 1.1% 969 5.8% 1,238 7.5% 16,572 2014-2015 1,456,119 84.4% 64,186 3.8% 97,259 106,853 6.2% 1,724,417 14,105 85.1% 151 0.9% 1,009 1,123 6.9% 16,388

K-3 Class Size Restrictions 2016-2017 2017-2018 CLASS SIZE REQUIREMENTS: Grade All Classes Within LEA Maximum Average Individual Class Maximum K-3 21 24 CLASS SIZE REQUIREMENTS: Grade All Classes Within LEA Maximum Average Individual Class Maximum K 18 21 1 16 19 2 17 20 3

K-3 Class Size Legislation TOTAL COST $4,216,359.28 Cost of Teachers $3,167,106.28 Includes salary and benefits Cost of facilities $1,049,253 Includes moving existing classrooms/temporaries, using all available space

Historical Class Size Allotment Formulas and Adjustments

Additional Classroom Costs School # Additional Units New Unit Costs Ben D. Quinn Elementary 2 $94,066.00 Brinson Memorial Elementary 3 $116,776.00 Vanceboro Farm Life Elementary 6 $291,278.00 Oaks Road Elementary 5 $238,125.00 Roger Bell Elementary 1 $27,870.00 Trent Park Elementary 4 $190,572.00 Arthur W. Edwards Elementary $90,566.00 TOTAL 23 $1,049,253.00

Historical Local Current Expense Allotment Average Current Expense Per Pupil: $1,514 Source: Craven County Adopted Budgets FY 2012 through FY 2017

Historical Local Capital Outlay Allotment Source: Craven County Adopted Budgets FY 2012 through FY 2017

Craven County Schools Staff FY 2018 Budget Input Survey Distributed March 13, 2017 Currently 567 respondents 375 Teachers 168 of the 375 teachers who have responded have a 2nd job Out of pocket instructional expenses by teachers range from $200 - $1000

Positions by Priority Lowest Number = Highest Priority

Recruiting and Retaining Highly Effective Staff Salary Supplement All Priorities

School Leader FY 2018 Budget Priorities Energy Goal Priority 23 3 Preserving classroom teacher positions 1 Professional development funding for all content areas 22 5 Additional at-risk/alternative programs 2 More support/resources for EC/Inclusion classes

Central Office Cabinet FY 2018 Budget Priorities Professional Development to support learning/teaching to include leadership development Graduated teacher supplement – up to 11% (over time). NOTE: Currently the range is 6.6% for new teachers to 4.6% for experienced teachers. 1:1 devices for all students in grades 6-12 Classified salary study and adjustment Implement personalized learning environment for students and staff (includes the deployment of a universal learning management system, virtual school, homeschool access, courses for EC and 504 homebound students, evening school, increased support for students in the academic middle, and alternative school)

Regional Average Teacher Supplements

Teacher Supplement Currently $2300 for every non-administrator certified staff member Average % of Salary: 5.4% Lowest: 3.62% Highest: 6.57% Cost to raise supplement to 7%: $935,000.00 Lowest Increase (0 years): $125.70 Highest Increase (30+ years): $2,661.26

Technology Resources - Comparison Craven County Schools Craven County Government 1680 staff members (includes full and part-time, excludes substitutes and part-time bus drivers) 14,079 students 29 sites 25 schools ASPIRE Central Services Transportation School Nutrition Devices: 12,107 “laptop-type” devices Average age 2014.2 4000 iPads BUDGET: $1,238,055* State: $449,055 Local: $465,000 PRC 345: 324,000 702 employees 592 full-time 110 part-time At least 6 sites Administration Sheriff’s Office Human Services Emergency Services Courthouse Other BUDGET: $1,439,815

FY 2018 Challenges Finding 61 elementary certified teachers Realizing $3.1 million to pay for those additional 61 K-3 teachers Focusing on retaining our current teaching staff and capturing some competitiveness in the region Over 450 K-3 teachers are needed in the 13 county southeast region 7 districts including New Hanover and Onslow have higher supplements than Craven Currently three districts in the region are out-performing us Pender County Schools Carteret County Schools New Hanover County Schools

Proposed Cuts Emphasis on Realizing Elementary Certified Staff Central Services Directors Mentors Technology Facilitators Nurses Social Workers Reorganizing 32.5 positions Media Specialists Grades 4-12 allotment per allotment policy manual Ensuring Equity in School Clerical Support

UNCERTAINTY Statutory requirement to provide a budget to the Craven County by May 15, 2017 Presentation of Craven County Schools’ Current Expense Budget on May 1, 2017 House Bill 13: Stuck in Rules in the Senate Filed January 25, 2017 Referred to Committee on Rules and Operations on February 20, 2017 Senate Bill 541: Stuck in Rules in the Senate Filed March 30, 2017 Referred to Committee on Rules and Operations on April 3, 2017

NEXT STEPS: STAFF Budget hearing on Thursday, April 13, 2017 Presentations in attendance areas on the following dates (tentative): Monday, April 24, 2017: New Bern High School (New Bern Area Schools) Tuesday, April 25, 2017: West Craven High School (West Craven Area Schools) Wednesday, April 26, 2017: Havelock High School (Havelock Area Schools) Human Resources planning on Tuesday, April 25, 2017 Presentation to Board of Commissioners on May 1, 2017

FINANCE Starting Points… We are tasked with adding K-3 teaching positions for the 2017/2018 school year without additional funding provided from the state. Projected increases in both retirement rate and health insurance rates for employees. Current retirement rate 16.54 (proposed 16.67%) Current health insurance $5,754 (proposed $5,880) Impact Aid Revenues are down

BUDGETARY GOALS Reducing costs with least impact on the classroom in order to use those savings to fund additional K-3 teaching positions required. Maintaining Art, Music and PE for all our students Increasing Teacher Supplement to maintain the highest quality professional educators in Craven County Improving digital learning opportunities for students in grades 6-12

Current and Projected Fund Balance Position We have made significant reductions the last two fiscal years. This has helped improve our Fund Balance situation. Total Fund Balance as of 06/30/2016 3,837,041 Projected Revenues 16/17 24,416,550 Projected Expenditures 16/17 (21,989,000) 6,264,591 Less: Inventories (based on FY16) (278,684) Less: Stabilization by State Statute (based on FY 16 amt) (214,920) Less: Fund Balance allocated for FY 18 Budget (1,000,000) Projected Fund Balance FYE 06/30/2017 $4,770,987

Impact Aid Revenue History

Fines and Forfeitures Revenues

Savings measures 2016/2017 Item Amount Saved Assistant Superintendent Position $107,835 Consolidation of Evening School Directors/Costs $84,432 6 Part-Time Nursing Positions $196,679 Moving six local AP positions to state funds $422,846 TOTAL SAVED $811,792

Proposed savings for 2017/2018 Item Amount Saved HS Clerical Positions to existing vacancies $59,508 Move Central Services Directors to Administrative Vacancies $201,202 Telephone Upgrades $72,000 Realign instructional support positions to classrooms $740,947 TOTAL SAVED $1,073,657