BUDGET UPDATE New Hanover County Schools Board Work Session July 21, 2015

Budget Update County Budget Approved State Budget Pending - Continuing Resolution (CR) Next Steps: 1. Recommended Local Funding Changes based on our best estimates of State 2. Approval of Budget Resolution at August Board Meeting 3. Amend State funding and finalize pay scales after State Budget Approved

Pending State Budget Issues Teacher Assistants:  Funding reduced 6% in Continuing Resolution and 52% in Senate Budget Classroom Teachers:  Substantial Increase in Senate budget funded from TA reduction Driver Education:  No funding in CR; $65 Fee authorized Pay Tables:  Beginning Teacher pay increase to $35,000 in CR  All other adjustments are pending, but PY held harmless pay approved Textbooks/Classroom Materials:  Various

New Hanover County Allocation Type Increase % Increase Current Operating$67,879,109$2,730,991$70,610, % Capital Outlay$2,750,000*$250,000$3,000, % Direct Allocation$70,629,109$2,980,991$73,610, % School Debt Service$12,762,897$7,301,095$20,063,992 Total Allocation$83,392,006$10,282,086$93,674,092 *Excluding One-time Appropriation for Land Purchase

Specific County Allocations: Teacher Supplement for Veteran Teachers Board Salary Increase Contracted Mental Health Services Board Scholarship Fund

REVISED BUDGET RECOMMENDATIONS Detailed Listing Attached

Items to be Funded with Increased State and Federal programs: Positions needed for growth:  Includes positions added mid-year along with projected increases  Includes 1 of the 3 social workers in original request Special Education increase will cover clerical request Revised poverty data used by State to allot both Title I and At-Risk Services, resulted in increases for both:  Title I:  Used to continue Pre-K support original request and increase school allotments  At-Risk:  Moving existing locally funded At-Risk support to State, included excess cost for MTSS Interventions, and then used remaining local to cover increased cost for nursing and mental health contracts. School Net funded with RttT Carryover.

Proposed Fund Balance Appropriation Items to be included in Budget Resolution:  Professional Development:  Principal Workshops  National Board’s Pilot (Years 2 and 3)  Strategic Plan Implementation  Summer NCVPS and Math Programs (summer 2016)  Materials for Immersion expansion to 5 th grade  Transfer to Capital Outlay  $500 Bonus for Non-Certified Staff

Proposed Fund Balance Appropriation Possible Appropriations:  Local funding for Driver Education  Appropriation would not be budgeted until State Budget finalized Impact on Fund Balance Goal:  Keeps undesignated fund balance reserve at 8% of Operating Budget, as per Board Goal

To be Funded with County Increase Teacher Pay Raise:  CR raised beginning step to $35,000  Estimated total average at 4%  Includes Board and contracts tied to average teacher increase Other Salaries and Benefits:  School Administrators – 2%  Other Employees – 2%  Retirement and Heath Insurance increases as per the House Budget  If Other Salaries and Benefit increase not approved, we recommend transfer of funding to salary reserve for implementation of recommendations from the Board’s Compensation Review Committee

To be Funded with County Increase Supplement Increase for Veteran Teachers  9% rate for Teachers at Step 26+  All other teachers at 8% Athletic Stipend Changes Utilities:  To cover loss of e-rate discounts Board Scholarship Fund Instructional Software and Curriculum

To be Funded with County Increase New Half-Time Positions:  Half-time clerical for High School Testing Support  Custodians – 14 half-time positions and increase 10 current high school positions from 10 to 12 months New Full-Time Positions:  2 Assistant Principals  2 Social Workers  New Principal for Suspension Center  Testing Technician  Accounting Support Associate  Painter

To be funded from Existing Budget Savings Savings from Transportation and Non-Contributory Employee Benefits to be used for:  Teacher Assistants – 19 funded with non-recurring State and local funding  Technology supplies and IT audit  Increase existing Family Life teacher to full-time to include duties of Health and PE Coordination  Risk Manager – new position as of January 2016

Next Steps Discussion Any Changes to Recommendation? Budget Resolution for approval at August 4 th Meeting to include these recommended changes