1. 1 BOARD OF EDUCATION AMENDED OPERATING BUDGET FISCAL YEAR 2013-2014 JUNE 24, 2013

2. ObjectFY 12/13 BudgetFY 13/14 Proposed Budget % Increase Salaries (100) $100,618,573$102,667,4212% Benefits (200)* $34,230,222$36,541,5977% Professional & Technical Services (300) $3,413,576$3,580,6005% Property Services (400) $2,552,339$2,617,3763% Other Services (500) $12,431,325$13,240,5977% Supplies and Materials (600) $5,861,143$5,854,268-0% Equipment (700) $294,939$314,5547% Other Objects (800) $92,874$108,36717% Total Operating Expenses $159,494,991$164,924,7813.40% 2 BOARD APPROVED BUDGET *Included in Benefits is the $3.5 million that was approved but removed from BOE during final reconciliation in FY 12/13

3.  The Fiscal Year 2013/2014 BET Appropriation $162,271,864 or a 1.74%*  The Board of Education Approved $164,924,781  Amount to reconcile: $(2,652,917)  *Increase year over year (excluding $3.5 million health insurance appropriation on city’s budget for BOE). FINANCIAL GAP BETWEEN BOARD OF EDUCATION & BET 3

4. 13 Security Guards at NHS, BMHS, Briggs moved to Priority Schools $571,956 7 Elementary Teachers moved to Priority Schools $631,073 Payroll Taxes for 20 employees: $55,798 Health Insurance for 4 Elementary Teachers: $86,000 Total Priority School Spending Plan: $1,344,827 Priority School Grant Increased by $1,370,000 PROPOSED CHANGES TO BOARD APPROVED BUDGET 4

5. Common Core Operating Funds were approved at $410,000 ELA Transition Coach Math Transition Coach World Language Curriculum Consultant Social Studies Consultant Special Education Training Professional Development $263,333 moved to Title IIa Carryover Funds $146,667 moved to Increase to ECS Alliance Funds PROPOSED CHANGES TO BOARD APPROVED BUDGET 5

6. Health Insurance Projection & BMI Audit The FY 13/14 Board Approved Budget had a health insurance margin of a flat $1.2 million dollars. Per consultation with Lindberg & Ripple this has been more accurately adjusted to represent 4% of the Anthem Claims, Medco, & IPI. Net Savings: $108,400 Due to the BMI audit and numerous vacancies filled by Long-Term Substitutes we have seen a 5% reduction in the amount of health insurance contracts on Anthem. This has resulted in a net savings: $824,000 Savings from revised projection to dental, Medco, fixed costs: $94,000 With vacancies now budgeted to pick up the health insurance expense, we must add anticipated employee premium share for those vacancies. Increased revenue: $44,401 Savings in Life Insurance from switching from AIG to The Hartford: $23,045 As Lindberg & Ripple adjust their claim projection down due to less contracts, we must budget for insurance for vacant positions:. Increase to budget: $(317,558) Reduction in Reimbursement from Grants due to compression: $(35,000) Total Savings: $741,288 6

7. Recommend Budget Cuts Reduction to Unemployment Insurance due to decreasing claims: $168,112 Higher Staff Turnover credit due to additional Teacher Retirees: $162,171 Revised Excess Cost Reimbursement based on FY 12/13 Receipt: $84,130 Elimination of Outside Facilities Painter: $30,000 *Reduction to various supplies accounts in Curriculum Dept Accts: $26,620 Reduction of Facilities Accounts: $25,000 Reduction to High School Athletics Budget: $20,870 *Reduction to Special Education Supplies $20,800 Reduction in Central Office Supplies: $14,050 Reduction in Special Education Legal Fees due to FY 12/13 Surplus: $12,000 Reduction of School Governance: $5,000 *Reduction in In Service (Workshops for Special Education): $5,000 Reduction in Superintendent Dues/Memberships Enhancements: $1,950 Reduction in anticipated police fees: $1,000 Total Reductions: $576,703 *All reductions to supplies accounts are based on current year and prior year actual dollars spent. Reductions made does not require less supplies but does reduce the available balance at the end of the year for unplanned purchases. PROPOSED CHANGES TO BOARD APPROVED BUDGET 7

8. Elimination of Positions or Proposed New Hires Elimination of1 District Behavioralist on the Board Approved New Hires: $90,292 Shift 65% of the instructional specialist for science to Title IIa: $90,083 Elimination of 1 central office clerk position: $81,856 Middle School, Elementary School Library Aides & Intervention/Utility Aides budgeted at NFEP insurance allocation rates: $25,634 Reduction in hours to 3 positions (2 Clerks, 1 Driver): $21,164 Recommend not hiring 1 outreach worker on the Board Approved New Hires: $15,071 Total Savings: $324,100 PROPOSED CHANGES TO BOARD APPROVED BUDGET 8

9. Increases to Board Approved Budget Increase Special Education Tuition & Professional Services Funds: $380,531 1 Reserve Teachers plus benefits and payroll taxes for potential class size concerns: $82,421 Add 1 Math Teacher/Coach at Nathan Hale (50% funded in Alliance): $58,781 Higher than anticipated Degree level changes from January to June 30 th. Increase to Degree Level Changes after Budget Roll: $57,235 Proposed Grade change to elementary and intervention aides at G5, Step 6, increase: $53,965 Longevity Payments due to anticipated employees reaching longevity: $30,000 NFEP: $20,000, Custodians: $10,000 PROPOSED CHANGES TO BOARD APPROVED BUDGET 9

10. Increases to Board Approved Budget Agriculture Science Program Tuition: $30,000 Extra Curricular Stipends at Middle School for Jazz and Memorial Day Celebrations (previously never budgeted but expensed in past fiscal years): $15,288 Increase to Superintendent Proposed Salary based on Proact Search Range: $15,000 Increase to Athletic Liability Insurance due to increase in claim activity: $10,000 Technician Certification Tier Promotions: $6,779 Nurse Certification Stipends due to new settled contract: $4,000 TOTAL INCREASES TO BOARD APPROVED BUDGET: $744,000 PROPOSED CHANGES TO BOARD APPROVED BUDGET 10

11. 1 Curriculum Science Specialist 1 Speech & Language Pathologist1 District Behavioralist1 Art Teacher BMHS1 Reserve Teachers for class size6 Elementary Librarian Aides @ 27.5 Hours2 Middle School Librarian Aides @32 Hours with existing MS Librarians reduced to 32 hoursHR Secretary to 37.5 Hours1 Building Coordinator6 Intervention/Utility Aides @ 27.5 HoursNathan Hale Math CoachMiddle School Intramurals BUILDING BACK 11

12. BOARD APPROVED BUDGET: $164,924,781BET APPROPRIATION: $162,271,864DIFFERENCE: $(2,652,917)Reductions to Local: Priority School Grant: $1,344,827 Tittle IIa Carryover Funds: 263,333 ECS Alliance Funds: $146,667 Insurance Savings: $741,288 Expense Reductions: $576,703 Position Elimination/Hour Reductions: $103,020 Elimination or Change to New Hires: $221,080 Total: $3,396,918Increases to Budget: $744,000 Board Amended Budget: $162,271,864 BRIDGING THE GAP 12

13. OBJECT SERIES OBJECT NAMEFY 13/14 BUDGETCOST COMPOSITE 100sSalaries & Wages$100,865,58162% 200sBenefits$35,542,01022% 300sProfessional & Technical Services $3,762,5172% 400sProperty Services$2,586,1262% 500sOther Services$13,303,7108% 600sSupplies & Materials$5,792,4084% 700sEquipment$313,0140% 800sOther Objects$106,4970% TOTAL$162,271,864100% 13 FY 2013/2014 BUDGET

14.  Replacement Teachers for the retiring teachers must not exceed there budgeted staff salary in order to reach the staff turnover credit.  While Special Education Tuition and Services Accounts were increased to account for increasing tuition and increased placements. Additional placements above and beyond the budget would result in added budget pressures during the year beyond what is budgeted.  Pending Grievances against the Board of Education can cause a financial impact above what is budgeted. COMMENTS 14