1. 1 CMS Funding Evaluation Guidelines – Operating Funds February 12, 2009

2. 2 Briefing Overview Purpose of the Guidelines Methodology FY2008 Application Reflections and Next Steps

3. 3 Purpose of the Guidelines Provide a tool for the Board of County Commissioners to evaluate CMS operating funding requests based on –Per pupil funding changes –Changes in student enrollment and composition. Does not obligate the Board to fund at certain dollar amount. If CMS request is not consistent with funding guideline, it gives the Board a basis for assessing the request. Developed in 2004 and refined since.

4. 4 Operating Guideline Premise What will it cost next year to deliver current level of services given –Per pupil spending, –Enrollment growth and composition changes, –Cost and inflation factors, and –State funding. CMS can request funding above the current service level as County “grants.” Does not include capital funds.

5. 5 Guideline Components 1.Adjusted per pupil funding based on enrollment growth 2.Funding based on student composition changes 3.County operating grants for new CMS initiatives Note: Some numbers may not be exact due to rounding.

6. 6 1. Adjusted Per Pupil Calculation A.Determine current year Per Pupil Amount (Total and County) B.Determine cost increases based on cost “buckets” Ex – Salaries, supplies, equipment & vehicles, utilities Based on state/CMS projections C.Adjust current year Per Pupil to get next year’s Per Pupil funding amount D.Calculate County Guideline Amount

7. 7 A. Determine CY Per Pupil Amount FY07 Funding Enrollment Per Pupil State $623,777,628 129,011 $4,835 County $316,160,298 129,011 $2,451 Total $7,286 Note: Example uses FY07 actuals to project FY08 guidelines Calculation: FY07 Funding CMS Enrollment = Per Pupil Amount

8. 8 B1. Determine Ave. Cost Increases Cost “Bucket”RateComment Salaries and Benefits6.0%State Increase Purchased Services3.4%2006 CPI Supplies & Materials3.5%2005-2006 CPI Ave Equip & Vehicles3.5%2005-2006 CPI Ave Other3.5%2005-2006 CPI Ave Transfer to Charter Schools14.11%Actual calculation Weighted Cost Increase Factor5.8% Projected Student Enrollment Growth 5,231134,242

9. 9 B2. Cost Increase Details Bucket Amount % Increase Increase Amount Salaries and Benefits $ 824,884,6616.0% $ 49,493,080 Purchased Services $ 61,996,0293.4% $ 2,107,865 Supplies & Materials $ 37,874,7713.5% $ 1,325,617 Equipment & Vehicles $ 3,854,9293.5% $ 134,923 Other $ 3,586,5093.5% $ 125,528 Transfer to Charter $ 1,093,000 Total $ 932,196,899 $ 54,280,0125.8%

10. 10 C. Adjust for Cost Increase FY07 Total Per Pupil Cost Increase Factor FY08 Per Pupil Amount Per Pupil Increase State $4,835 County $2,451 Total $7,2865.8% $7,708 $423 To provide the same level of service in FY08 as in FY07 will cost $423 more per pupil.

11. 11 D1. Determine State Per Pupil Amount Funding Projected Enrollment Per Pupil $696,862,205134,242$5,191 FY08 State Contribution to CMS Calculation: FY08 Projected State Funding CMS Projected Enrollment = FY08 Projected State Per Pupil Amount

12. 12 D2: Determine County Guideline Amount Calculation: FY08 Per Pupil X Projected Enrollment = County Guideline FY08 Per Pupil Projected EnrollmentFY08 Guideline Increase from FY07 Total $7,708 State $5,191 County $2,517134,242 $337,914,191 $21,753,893

13. 13 2. Accounting for Changing Student Composition Assumption - Different types of students cost different amounts to provide the same level of service. –Free and reduced lunch –English as a second language –Exceptional children Enrollment growth has proportionally greater percentages of these types of students than the existing enrollment. Funding should account for this change in enrollment composition to maintain current service levels. Composition funding is weighted based on type of student. Lagging data uses FY07 actuals.

14. 14 Composition Change Calculation Type Student Count WeightPer Pupil Guideline Amount Exceptional Children981.5$2,517$370,029 Limited English Proficient2,3900.45$2,517$2,707,250 Free & Reduced Lunch4970.3$2,517$375,315 Total$3,452,594 Notes: Weights determined based on comparisons with other school districts.

15. 15 3. County Operating Grants CMS can request additional funds as a County grant for specific initiatives or needs beyond the base. Grants –Time limited –Performance based –For a specific purpose outside of the base –Listed separately from the base in the budget EX – High School Challenge

16. 16 FY08 Operating Guideline FY2007Operating$316,160,000 Enrollment Growth $21,754,000 Enrollment Composition $3,453,000 $25,207,000 FY2008 Guideline$341,367,000 If CMS’ FY2008 CMS Request is $370, $335, or $320 million, the guidelines provide a structure to ask “Why is this so?”.

17. 17 Questions