1. District Advisory Council
2019–2020 District Budget
District Advisory Council
March 7, 2019
Dr. Keith P. Posley
Superintendent
Presenter: Lynn Ruhl, Interim Director of Financial Planning & Budget Services
©2017 Milwaukee Public Schools

2. 5 Priorities for Success
I’m sure you are, by this time, familiar with the Superintendent’s five priorities for success define how MPS will achieve our three over-arching goals of Academic Achievement, Student, Family and Community Engagement, and Effective and Efficient Operations.
©2017 Milwaukee Public Schools

3. Budget Process Agenda General budget information
Inputs to school budget preparation
School budgets and changes
School collaboration
Budget reviews
Board meetings
Public input on the Proposed Budget
First Strategic Planning & Budget meeting in regards to FY20 was October, 2018 and have been held periodically since then
Ambitions Instruction Budget Conversations were held in January, 2019 with schools in need of improvement and any other schools whom wanted to present
School Budgets were started January 18th and completed by February 8th. This included collaboration with families & staff
©2017 Milwaukee Public Schools

4. Based on Current Year Data
Where does the money go?
Based on Current Year Data
88¢ Schools and School Accounts
6¢ Central Services
6¢ Other Accounts (debt, insurances and other central costs
As we struggle to balance the budget to available revenues, we try to mitigate the impact on schools, but the reality is that approximately 88% of district funds go to schools and school accounts, while 6% supports central services and 6% goes toward debt service and district insurance and judgement.
©2017 Milwaukee Public Schools

5. Governor Evers’ State Budget Address
Items that could impact MPS
Homeless Support – although this will help our homeless families it will not increase revenues to MPS.
Re-enactment of the Two-Thirds funding of school districts by the state – this does not increase revenues to MPS but may create savings for our taxpayers.
Increase in Special Education funding – this could increase MPS total revenue.
Any increases in funding may help MPS; however, until we see what will actually go through the legislature we cannot recognize this potential increase in revenues.
Two-Thirds – when revenue limits were enacted in the 1990’s the State obligated to pay 2/3 of the per-pupil cost reimbursement to help reduce the cost of taxes for local homeowners/rentors
©2017 Milwaukee Public Schools

6. MPS Budget Overview
Costs are up. The CPI index indicates 2.9% for FY 2019–20. Medical costs are projected to rise by 5% and prescription drugs by 12%.
The School Operations Fund revenue is stable; however, it is not sufficient to cover rising costs. Federal revenues and related carryover are declining.
School enrollment is needed to maintain each school’s allocation. Maintaining or increasing enrollment is important.
CPI = Consumer Price Index – way describe changes in prices
Continued increase in health care costs which include medical and prescription drugs. These increased costs drive up the fringe benefit rate which in turn reduces available discretionary funding.
Historical revenue note: FY19 revenue limit of $10,122 is only $109 (or 1%) higher than MPS’s revenue limit in 2011.
 We are budgeting with the enrollment trends of recent years in mind. Of course, every school that has capacity will be partnered with district supports to retain students and recruit new families. Perhaps we’ll come to August with better enrollment than projected.
©2017 Milwaukee Public Schools

7. Strategic Planning and Budget Committee
Budget Parameters
Preparation of the budget in accordance with State Law.
Preparation of the budget with maximum revenue limits.
Repurposing and adjustments of educational programming and departmental budgets to promote student achievement and a balanced budget.
Consideration of salary increases for all employee groups through the budget and negotiation processes to attract and retain qualified staff.
Consideration of employee benefit changes for eligible employees to identify cost savings and increase efficiencies.
Exploration of operating efficiencies.
Development of a budget that reflects a commitment to fair resources, quality and socially transformative learning, a supportive environment for employees, and an equitable education system for all.
Went before the committee in October, 2018; was adjusted and approved by the Board January, 2019
©2017 Milwaukee Public Schools

8. Ambitious Instruction Budget Conversations
School successes
Strategies for improving core instruction
Improving learning environments
Improving attendance
Class sizes
Ambitions Instruction Budget Conversations were held in January, 2019 with schools who failed expectations in the State report card and any other schools who wanted to present
©2017 Milwaukee Public Schools

9. Overview of FY20 School Budget
Board funds
AMP & School Counselors
Title I
AGR
Special education
Schools held harmless for change in benefit rate, kept same FTE’s, used Third Friday count from current year. (theirs to lose)
No fill the gaps budget FTEs Won’t be changing AMP in the fall
Title I same per pupil $385, still includes SST’s & Parent Coordinator positions
AGR is equivalent to a 5 year average. Kept them whole for positions. Remember that AGR is a grant and the amount is not confirmed until November by DPI.
Special Education was adjusted to reflect student needs
©2017 Milwaukee Public Schools

10. Overview of FY20 School Budget Changes
FY19 enrollment (“meet or beat” fall enrollment number)
No per pupil change compared to this year
School positions remain stable
Increased benefit rate (from 53.8% to 54.8%)
Changes in average salaries
That meet or beat number indicates the enrollment you need in fall to have the allocated dollars remain the same as spring. If schools do not meet enrollment their allocation will be reduced.
For a bit of good news: The cost of each teacher FTE in the school budget is down approximately $300 in FY19. This is because turnover has more than offset the modest raises that were awarded. For paraprofessionals, the cost is up by about $250. You may be aware that the Board has been particularly concerned to raise the wage level of lower –paid staff in the district.
Benefit increase does effect the buying power that schools have.
Central allocations were updated based on projected enrollment and available funding.
©2017 Milwaukee Public Schools

11. School Leader Role in the Budget Process
Review the budget and the school’s data
Model suggested changes
Consult with staff and families concerning proposed budget changes that will best support the school’s needs
Communicate with School Engagement Council; they must participate in the budget process
Make decisions in the best interest of students
Adjust budgets as necessary based on input from stakeholders
Examine if enrollment by grade aligns with schools anticipated enrollment by grade
Budget doesn’t go to the Board until the end of April
Regional Resolution teams are going to review right away to get staffing to HR for cycle B.
We know this is a difficult budget year.
We are still better off than we were several years ago.
People are losing additions from the last several years.
©2017 Milwaukee Public Schools

12. Regional Resolution Rooms
Each school budget was carefully reviewed, discussed and adjusted, if needed, based on the following principles:
Team knowledge of the school’s instructional and operational needs
Alignment with the Board parameters
Alignment to the school improvement plan
Supportive of what is best for students
To identify high-stress schools likely to need additional support
The regional resolution rooms are a collaborative approach to information the school’s budgets. Included on the regional resolution teams are the Regional Superintendents, Operations Managers, Instructional Leadership Directors, Human Resources staff and Financial Planning and Budget Services Staff.
©2017 Milwaukee Public Schools

13. School Level Input Join School Engagement Council at your school
Contact your Principal with questions/ideas
Work with your Parent Coordinator
Be involved with your PTA
School Budgets were started January 18th and completed by February 8th. This included collaboration with families & staff
School Engagement Council feedback is critical.
The council sign-off form is usually due with the budget but this year the time has been extended due to short budget turn around
©2017 Milwaukee Public Schools

14. How to Share Your Thoughts on the Budget
Budget will be released May 3, 2019
There will be a number of Strategic Planning & Budget Committee meetings throughout May to discuss the budget.
The exact dates will be set after April 30, 2019.
Please visit this website for the actual dates:
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15. Thank you! ©2017 Milwaukee Public Schools
Milwaukee Board of School Directors
Mark Sain, District 1, President
Larry Miller, District 5, Vice President
Wendell J. Harris, Sr., District 2
Vacant, District 3
Annie Woodward, District 4
Luis A. Báez (Tony), Ph.D., District 6
Paula Phillips, District 7
Carol Voss, District 8
Terrence Falk, At-Large
Thank you!
Dr. Keith P. Posley, Superintendent
MPS Senior Team
Rosana Mateo, Ph.D., Deputy Superintendent
Chris Hauser, Interim Deputy Superintendent
Marla Bronaugh, Chief Communications & School Performance Officer
Katrice Cotton, Ed.D., Chief School Administration Officer
Jeremiah Holiday, Ph.D., Interim Chief Academic Officer
Martha Kreitzman, Interim Chief Financial Officer
Evangeline (Leia) Scoptur, J.D., Interim Chief Human Resources Officer
Sue Saller, Manager III, Superintendent’s Initiatives
Maricha Harris, Special Assistant to the Superintendent
©2017 Milwaukee Public Schools