1. Board Work session April 11, 2017
Local Budget Request
Board Work session April 11, 2017

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

3. Craven County Schools Changes in State Funding 2009-2017

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

5. 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
Budget Development
20 elementary teacher
15 middle school teachers
6 Teacher Assistants

6. Craven County Schools Historical Enrollment

7. District Competitiveness Choice Opportunities in Craven County
Public Schools
Public Charters
Private Schools
Home Schools
Overall Total
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
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

8. K-3 Class Size Restrictions
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

9. 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

10. Historical Class Size Allotment Formulas and Adjustments

11. 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

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

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

14. 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

15. Positions by Priority Lowest Number = Highest Priority

16. Recruiting and Retaining Highly Effective Staff
Salary Supplement
All Priorities

17. 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

18. 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)

19. Regional Average Teacher Supplements

20. 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

21. 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
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

22. 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

23. 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

24. 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

25. 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

26. 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 (proposed 16.67%)
Current health insurance $5,754 (proposed $5,880)
Impact Aid Revenues are down

27. 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

28. 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

29. Impact Aid Revenue History

30. Fines and Forfeitures Revenues

31. 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

32. 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