2015-2016 UCPS Budget Proposal

Mission The mission of Union County Public Schools is “Preparing All Students To Succeed.”

High achieving and globally competitive students, Strategic Priorities High achieving and globally competitive students, Quality teachers, administrators, and staff providing innovative leadership for 21st Century schools, Safe, orderly, and caring schools producing healthy and responsible students, 21st Century systems operating effectively and efficiently, Family, business, and community members involved and supportive of our schools.

Globalization. Innovation. Graduation. Globalization – UCPS promotes global education to prepare our students to be competitive in the 21st Century. Innovation- UCPS provides technology and creative approaches to instruction to engage students in the learning process. Graduation – UCPS creates multiple avenues for students to be successful and graduate from high school. My Size Fits Me

2013 – 2014 Successes UCPS posted the State’s second highest academic performance as measured by the end of year assessments, UCPS had 185 Annual Measurable Objective (AMO) targets to meet and we met 174/185 for a status of 94.1% of AMO from the State Department of Public Instruction, UCPS ranked # 1 among N.C.’s largest school districts in graduation rate (92.65%), UCPS student’s SAT scores are above state and national average, Dropout rate of 1.1%, UCPS Class of 2014 awarded $98.1 million in scholarships.

If so, adequate funding and support are essential. THE CHALLENGE Do the citizens of Union County want their school system to continue to improve? If so, adequate funding and support are essential.

2015 – 2016 OPERATING Budget challenges Student enrollment increases, Increasing payments to faster growing charter schools, Flat State funding per State Planning Allotments, Local cost of Governor’s teacher pay and potentially State employee pay increases, Substantial teacher and staff pay deficiencies, Operations & Maintenance / utility cost increases, State-mandated increases in health insurance and retirement costs for locally paid employees, Unknown: Adequacy of funding from Union County Board of Commissioners to offset above challenges.

Student ENROLLMENT continues to Grow Recent housing permits strongly suggest we are poised for another growth spurt since the economy has recovered. Therefore, updated and potentially new schools will be necessary in the future as this growth trend continues.

STATE, LOCAL & FEDERAl Per Pupil EXPENSE (ppe) (Excludes Child Nutrition) 2009-10 2010-11 2011-12 2012-13 2013-14 $7,304 $7,303 $7,557 $7,520 $7,202 UCPS actual per pupil expenditures has dropped greater than 4% from 2012-2013 through fiscal year ended 2013-2014. In 2013-2014, UCPS per pupil expenditures ranked 112 lowest out of 115 school districts. This means only 3 school districts / Local Education Agencies (LEAs) in N.C. spent less per student.

less than N.C. average PPE Bottom line FY 2013-2014 N.C. Average 2013-2014 PPE = $7,997 $7,997 - $7,202 (UCPS) = $795 $795 X 41,020* = $32,610,900 less than N.C. average PPE *UCPS Final 2013-2014 Average Daily Membership (ADM)

2015-2016 projected Total Current expense Budget Sources of Revenue PROJECTED SOURCES OF REVENUE State Sources $211,682,130 Federal Sources 16,905,016 Local County Appropriation 104,460,942 Specific Sources - Restricted 7,853,417 Other Local Sources - F & F / ABC 760,000 Fund Balance - Restricted 4,269,045 Fund Balance - Assigned 1,900,000 Total $ 347,830,550

2015-2016 Projected total current Expense Budget expenditures PROJECTED EXPENDITURES Instructional Programs $ 268,685,689 Supporting Services 71,004,898 Community Services 430,641 Non-Programmed Charges 2,712,418 Charter School Payment 4,996,904 Total $ 347,830,550

PROPOSED COUNTY APPROPRIATION INCREASE 2015-2016 Estimated increase in utility costs (7.00%) $ 737,863 Local fiscal impact of State legislated payments to Charter Schools $ 1,115,000 Local fiscal impact of “State” Virtual Charter Schools $ 86,373 Estimated local cost of Governor’s proposed “Teacher Pay” increase $ 385,471 Estimated increase in “State” benefits costs for locally paid employees $ 377,970 Move locally paid Assistant Principals to next tier on State Salary schedule $ 49,495 General liability, vehicle, workers’ compensation, excess insurance, etc. $ 45,117

PROPOSED COUNTY APPROPRIATION INCREASE 2015-2016 Non-certified personnel compensation adjustments (1.6% average) $ 868,806 Increase ’15–’16 teacher supplement CLOSER to surrounding markets $ 11,295,486 Increase ‘15–’16 principal supplement CLOSER to surrounding markets $ 522,579 Increase ‘15–’16 assistant principal supplement CLOSER to surrounding markets $ 552,343 Maintenance, safety inspections, painting, custodial supplies and repair costs $ 327,670 Increase ’15–’16 athletic supplements CLOSER to market $ 173,245 Salary / supplement adjustments to market for other UCPS employees $ 72,780 Loss of State Driver Training funds and mandate to continue service to students $ 752,860 TOTAL $ 17,363,058

Capital outlay Proposal ‘15-’16 through ‘22-’23 PURPOSE MAJOR PROJECTS REGULAR CAPITAL OUTLAY CCEP PLAN TOTAL The acquisition of real property, construction, reconstruction, enlargement, renovation, or replacement of building and other structures as per 115C-426 (F), 5100, 6500 & 9000 $232,743,464 $110,210,444 $342,953,908 Technology equipment/infrastructure; instructional apparatus; and acquisition of school buses as additions to the fleet, 5100, 6400 & 6500 8,000,000 Scope and/or market driven adjustments, 5100, 6400, 6500 & 9000 4,789,556 Assessment and reconstruction to preserve roofs in plan years two through eight, 9000 21,000,000 Ongoing preventative maintenance capital outlay in plan years one through eight. 6500 & 9000 16,000,000 $160,000,000 $392,743,464

CAPITAL OUTLAY PROPOSAL 2015-2016 (YEAR 1) PURPOSE 2015 – 2016 PORTION The acquisition of real property, construction, reconstruction, enlargement, renovation, or replacement of building and other structures as per 115C-426 (F), 5100, 6500 & 9000 $16,170,227 *, ** Technology equipment/infrastructure; instructional apparatus; and acquisition of school buses as additions to the fleet, 5100, 6400 & 6500 1,000,000 Scope and/or market driven adjustments, 5100, 6400, 6500 & 9000 615,797 Ongoing preventative maintenance capital outlay in plan years one through eight. 6500 & 9000 2,000,000 SUBTOTAL $19,786,024 Estimated “Brick and Mortar” projects to be included in bond referendum 9000 157,650,000 *** TOTAL $177,436,024 Legend *This amount represents Year 1 projects included in the CCEP regular capital outlay and soft cost for CCEP major projects. ** This amount does not include “Brick and Mortar” projects identified in CCEP that will be identified and requested by BOE via resolution requesting the County to issue General Obligation Bonds no later than December 2015. ***Funding needed for “Brick and Mortar” projects that will be requested by BOE via a resolution requesting Union County to issue General Obligation bonds no later than December 2015.