1. Update on 2014-15 Finances & 2015-2016 Budget Process February 9, 2015 1

2. 2 Legislative/Economic Update  Governor’s spending plan  Significant revenue growth with competing demands  School funding lawsuit  Oil prices - Texas likely to grow at slower pace than USA.  2015-16 – need to budget conservatively  BCC call for funding improvements: We are always in this mode. BCC Email

3. Source: FBISD Finance & Appraisal District 3 $B Budget and Financial Update 8.5% Local Value Growth Property Value by Year

4. FBISD Property Value 2014-15 4 Source: Texas Comptroller of Public Accounts Total Tax Year 2014 CPTD Value $28.3 Billion

5. State Revenue Estimate-Early Thoughts  New Comptroller Hegar presented initial revenue estimate on January 12  The estimate can be modified at any time  General revenue above current biennium spending levels of about $18 billion  Increased property value provides effective new revenue  Estimated price of crude oil ($58.44/BBL - Brent) may influence revisions—average in BRE of $64.50 & $69.27 in 2016 & 2017 © 2015 Moak Casey and Associates 5

6. State Revenue Estimate  Sales Tax biennial growth 8.9%  2014-15 biennium growth estimated at 12.1%  Other Major Tax Revenue  Natural gas tax down:-8%  Oil tax down:-14.3%  Motor vehicle sales up: +14.6%  Franchise tax down: -1.6%  Property Values (Combs projection)  8.64% for 2014  5.71% for 2015  5.30% for 2016 © 2015 Moak Casey and Associates 6

7. Rainy Day Fund  Economic Stabilization Fund (Rainy Day Fund)  Allocation may be superseded by 2/3 vote in each house  Estimated balance of $8.5 billion ending the current biennium  Projected $11 billion balance at end of 2017, after transfers to transportation © 2015 Moak Casey and Associates 7

8. 8 Source: LBB & FBISD Finance State Revenue Sources 2014-15 Biennium

9. 9 Source: LBB & FBISD Finance State Appropriations – All Funds

10. Reaction to Proposed State Budgets  Appropriations for schools would have declined from current biennium due to property value growth  Not a good position when arguing the state’s case in Supreme Court  Continues state’s reliance on property tax to fuel the education funding structure  Significant formula improvement without increased state cost is a re-run of 2013, just cheaper  Still quite a bit of room under the spending limit, and lots of money available © 2015 Moak Casey and Associates 10

11. 11 Factors that influence State Revenue  Enrollment  Average Daily Attendance (ADA)  Special Services / Weights (WADA)  Property Values  Free and Reduced Percentages  Special Education population  Career & Technology teacher utilization  Prior Year Comptroller Values  Central Appraisal Dist. Values  ARB – Appraisal Review Board  Collection Rate  Frozen Values Source: FBISD Finance

12. Average Student Enrollment 12 Source: FBISD Finance & District Demographer Earliest Estimates/Least Likely Scenario Budget and Financial Update 72,317 Projected (0.19% diff) 72,317 Projected (0.19% diff)

13. 13 Source: FBISD Finance General Fund Revenue Sources Projected Budget and Financial Update

14. 14 Timing of Budget Development Budget and Financial Update Phase 1 Essential Campus & Non-Campus Staffing Requests February Phase 2 Other Staffing Changes Based on Staffing Guidelines March Phase 3 Compensation & Other Requests Based on Session May/June Source: FBISD Finance

15. 15 2015-16 Initial Position Request Summary Budget and Financial Update ClassificationFTEsSalary Elementary 4612$638,432 Career and Technical Education32$2,024,000 Departments10$740,102 Non-General Funded Positions11$924,279 Total Position Requests64$4,326,813

16.  Budget & Compensation Committee  Nominated delegates  Participation from all campuses and departments  Document ideas and set priorities  Principals & Directors  Teacher Forum  Benefits Committee 16 Source: FBISD Finance Collaborative Budget Process Budget Committees

17. February 16 Regular Board Meeting Consider Approval of Critical Staffing Recommendations March 23 Board Workshop Review of Compensation and Additional Staffing Changes March 30 Regular Board Meeting Consider Approval of Additional Staffing Recommendations April 13 Board Workshop Budget and Legislative Update; Review Contract Recommendations; Initial Discussion on Non-staffing Enhancements; Debt Service Update 17 Critical Dates Source: FBISD Finance

18. April 20 Regular Board Meeting Consider Approval of Contract Recommendations (Renewals, Non- Renewals, Terminations) May 11 Board Workshop Discussion of Additional Staffing, Compensation, Non-Staffing Enhancements; Action to Call Meeting for the Purpose of Discussing the Proposed Tax Rate and Adoption of the 2015/2016 Budget May 18 Regular Board Meeting Consider Approval of Additional Staffing, Compensation, Non- Staffing Enhancements; Review Proposed Budget June 1 Board Workshop Public Hearing on Budget and Proposed Tax Rate June 15 Regular Board Meeting Budget Adoption 18 Critical Dates Source: FBISD Finance

19. 19 Source: FBISD Finance Do we need this slide??? Questions???