1. New Hanover County Schools
Budget Update Fiscal Year July 12, 2016

2. State Budget Updates Teacher Salaries:
Revised Salary Schedule and step increases with average 4.7%
Top of the scale increased $1,000 with no bonuses
Salary schedule for :
Starts at $35,000 with $1,000 per year through step 15 ($50,000 at step 15 and $51,000 at step 25); Initial increase of 9.5%
Average step of new scale 1.5

3. State Budget Updates Teacher Pilot Programs:
3rd Grade Teacher Bonuses (2-year pilot)
For scores in the top 25% of the state and top 25% of each LEA
Advanced Placement and International Baccalaureate Bonuses (2-year pilot)
$50 for each student that receiving certain grades
CTE Teacher Bonuses (2-year pilot)
$25 or $50 per students completing CTE class and passing exams leading to industry certifications or credentials
Teacher Compensation and Advanced Teaching Roles (3-year competitive pilot)
LEA’s can apply to participate in pilot to supplement compensation for teachers in advanced teaching roles

4. State Budget Updates School Administrators
1.5% annual increase, .5% nonrecurring bonus and a step increase
Non-Certified and Central Office
1.5% annual increase, .5% nonrecurring bonus
$300,000 estimated funding for one-time merit based bonuses for non-educators

5. State Budget Updates Benefits: Employer’s Retirement Contribution
Increased rate by 5.2% from 15.32% to 16.12%
Employer’s Health Insurance Contribution
Increased maximum employer contribution from budgeted rate by 3.5% from $5,471 to $5, Final rate change for January 1, 2017 to be determined by State Budget Director.

6. State Budget Updates Other State Changes:
Reducing class size in grade 1 by 1
K-3 Class Size Ratios must not exceed allotment ratio beginning 7/1/17:
Kindergarten
One teacher per 18 students
First Grade
One teacher per 16 students
Second Grade
One teacher per 17 students
Third Grade

7. State Budget Updates Other State Changes:
Eliminated sunset for Driver Education funding
6% increase in funding for Instructional Supplies
20% increase in Textbooks and Digital Materials
4% reduction in funding for Central Office Administration
Offset by $45,000 added to local budget
.5% reduction in Transportation funding based on lower projected fuel costs

8. State Budget Updates CTE Grant:
$1,000,000 grant awarded by the State for the purpose of planning a new Career and Technical Education High School
Funds may be used for planning and implementation

9. New Hanover County Appropriation
2015/16
Increase/ (Decrease)
2016/17
Operating for NHCS
$68,357,447
$2,020,833
$70,378,280
Operating for Charters
$2,252,653
$224,671
$2,477,324
Capital for NHCS
$3,000,000
($985,000)
$2,015,000
Total
$73,610,100
$1,260,504
$74,870,604
Here is an updated summary of county funding. On the next few slides we will show the changes made in our final budget recommendations based on final state and county funding amounts.
$2,660 per pupil
Estimated K-12 Enrollment:
NHCS: 26, Charter Schools: 968

10. Fund Balance Appropriation
Proposed fund balance appropriation of $7,399,260
$3,100,000 for recurring items based on projected vacancy savings and salary lag
$4,299,260 of one-time funding
Leaving undesignated reserve of approximately 7.1%

11. Salaries and Benefits
Local funding for state pay schedules for Teachers, Instructional Support, Contracted Central Office Administration and the Board of Education
Local cost for increases in employer paid Health Insurance and Retirement Contribution
Revised pay schedules for Principals, Non- Certified, and Central Office Administration
To improve equity and make schedules more competitive.
Targeted School Supplements:
Teacher Supplements increased by 6%
$500 ($50/month) Supplement for Non-Certified Staff
To enhance recruitment for the best teachers and improve employee retention
The next few slides summarize the changes made to salary schedules. Using a combination of state and local funding we are able to recommend improved pay schedules that make great strides in improving compensation for all employees, with a new focus on recruitment and retention at Targeted Schools.

12. Local Salary Schedule Changes
New Principal Pay Schedules:
3 new schedules by school level
30 Steps with 1.7% step increases
1.5% higher than original proposal to include state raise
Differential between new schedules and state represents local supplement averaging 23% higher than state
Average Increase of 9.4%, with minimum increase of 1.5%
Also receive .5% one-time state bonus

13. Local Salary Schedule Changes
Non-Certified:
New schedules starting 4% above state
30 Steps with 1.5% step increases
Still flat at bottom of scale for 1-5 years, but gap reduced from 7 to 4 years
Plan to reduce gap by 1 year for next 4 years
Average Increase of 3.4%, ranging from 1.5% to 9%
Also receive .5% one-time state bonus

14. Local Salary Schedule Changes
Central Office Administration:
New schedules starting 2% above state
30 Steps with 1.7% step increases
Average Increase of 4.3%, ranging from 1.5% to 10%
Those above scale grandfathered with 1.5% State increase
Also receive .5% one-time state bonus

15. Local Salary Schedule Changes
Bus Drivers:
Increased all steps by state increase of 1.5%
Catch up step so scale is fully funded
30 Steps with 1.7% step increases
Also receive .5% one-time state bonus

16. Other Position Changes
23.5 New Positions:
15.5 positions funded locally
8 funded with state growth
10.5 Positions to address increased student support needs with the opening of JC Roe Center
2 High School Counselors and 2 Social Workers increasing formula to 5 counselors and 2 social workers per traditional High School
7 Special Education Teachers to be funded with state growth
1 Network Engineer and 1 Electronics Technician

17. Other Position Changes
Increase Athletic Trainers from 10 to 12 months
Add 1 extra week of employment for Elementary Technology Assistants
Positions Deferred until :
4 Secondary Area Technical Coordinators
1 Technical Software Specialist
1 Public Relations Support Associate
1 Purchasing/Warehouse Inventory Associate

18. Funding Priorities Non-Salary Continuation Additions:
Year 2 of 4 – Board Scholarship Implementation
Utilities – Offset reduction of e-rate discount
Nurses – Cover increase in contract rate and reduction of Medicaid Revenue
Property Insurance – Covered anticipated rate increases with savings from Liability Insurance

19. Funding Priorities Capital Outlay includes:
Completion of projects at Sidbury Road & Lakeside
Added remaining cost of computer replacement to Local using additional fund balance appropriation and reductions of other non-recurring recommendations
Deferred projects to :
Cooler replacement at Johnson
Replacement of data/voice cabling at Bellamy
Replacement of 4 Maintenance/Transportation Vehicles

20. Funding Priorities One-Time Items funded as per original proposal:
AIG Curriculum and Student Math Materials for grades 4-5
Transportation increase to support JC Roe
Universal Screening Assessment Tool
Technology Warranty Service
Technology – Includes original proposal plus items cut from capital outlay
Bonus Pay
.5 % State Bonus for locally funded staff

21. Funding Priorities
One-Time Items reduced to offset Technology Increase:
Electronic Records Scanning (reduced by ½)
Furniture (reduced by ½)
Contracted Maintenance Painting Services (reduced by ½)
Maintenance Small Projects Fund (reduced by 1/3)
Furniture Contingency and Blind Replacement (reduced by ¼)

22. Changes included in Proposed Budget Resolution