1 2010-2011 superintendent’s budget presentation for providence school board april 12, 2010
TRANSCRIPT
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2010-2011 Superintendent’s Budget
Presentation for Providence School Board
April 12, 2010
Key Information
Facility Changes– Addition of a 7th Grade at Nathan Bishop Middle
School– Additional 130 freshman entering PCTA– Beginning of a new plumbing curriculum at PCTA– The closure of Perry Middle School and Feinstein
High School are not assumed in this budget
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Budget Drivers
• Student Achievement– Class size, curriculum development, professional development, classroom
materials, extracurricular activities, smaller learning communities, common planning time, standards, and assessments
• Available Funding from State and City
• Changes to School Enrollment
• Labor Contract Obligations– Salaries, Benefits, Class Size
• Employee Retirement Contributions– State– Local
• Contract Obligations– Transportation– Custodial and maintenance– Outside tuitions
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Budget Unknowns
• Final State Aid Allocation to the District
• Final City Appropriation to the District
• Approval of a State-wide Funding Formula
• Final Federal Entitlements
Budget Assumptions
• State Aid will be level funded at the original amount for FY2010
– Governor’s FY2011 Proposed Budget calls for a $7.1 million reduction in Aid to Education for Providence
• The City appropriation to schools will remain at the FY2010 amount
– City funded 38.41% of FY2010 budget. Level funding of the FY2011 proposed budget is 36.6%
• Federal Entitlements will be level funded
• The approval of State-wide Funding Formula was not assumed
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FY2011 Budget Overview
• Proposed FY2011 budget includes a $16.8 million budget gap
• Level funding of City and State aid assumed
• No across-the-board salary increases scheduled for FY2011
• Negotiated wage freeze for Local 1033 employees
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FY2011 Budget Overview
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Expenditures
Proposed Expenditures $329,436,497
Expenditure Variances in FY2011 Budget(Summary)
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FY2010 Approved Budget $313,545,652
FY10-FY11
Description Variance
Salary & Benefits $14,863,973
Services $967,333
Materials & Supplies ($461,167)
Equipment $85,746
Utilities $434,960
FY2011 Proposed Budget $329,436,497
Expenditure Variances in FY2011 Budget(Detail)
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FY10-FY11Description Variance Total
FY2010 Approved Budget $313,545,652
Salary & Benefits:Salaries $9,728,541 Substitute Teacher Salaries $2,243,192 State Retirement $1,804,245 FICA $913,664 Medical Insurance $595,963 Dental Insurance $330,583 Workers Compensation $200,000 City Retirement ($695,102)Unemployment ($250,000)All Other Line Items ($7,113)
$14,863,973
Services:Transportation $1,407,976 Custodial Services $745,221 Rental of Buildings $169,591 All Other Line Items $130,155 Snow Removal $125,000 Tuition ($1,336,154)Other Fees ($274,456)
$967,333
Expenditure Variances in FY2011 Budget(Detail)
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FY10-FY11Description Variance Total
FY2010 Approved Budget $313,545,652
Materials & Supplies:Textbooks ($442,559) *All Other Line Items ($18,608)
($461,167)
Capital:Computer Hardware $105,726 Educational Equipment $52,408 Furniture & Fixtures ($72,388)
$85,746
Utilities:Natural Gas $500,000 Electricity $460,000 Water/Sewer $74,960 Heating Oil ($600,000)
$434,960 * FY2010 budget incl. $316k deferred payment
FY2011 Proposed Budget $329,436,497
City Revenue38.53%
Other0.64%
Medicaid1.36%
State Aid59.47%
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Revenues
Projected Revenues $312,575,472
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Revenues
FY2010 Approved Budget $313,545,865
FY10-FY11
Description Variance
City Appropriation $164,820
E-rate Reimbursement $65,000
Master Lease Reimbursement ($1,000,000)
Transfer from Indirect Cost ($200,000)
FY2011 Proposed Budget $312,575,685
Funding Formula
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• Three Key Funding Components
– Core Instructional Amount - $8,295 per student
– Student Success Factor – 40% of Core Instructional Amount $3,318 (available for students who receive free or reduced lunch)
– State Share Ratio – Equalized Weighted Assessed Valuation (EWAV) is the calculation used to determine the funding that a city or town receives
• How the Plan endorsed by RIDE might impact Providence
– Projected total increase in base funding over four years = $28,667,235
– An additional $5,548,728 in state aid in FY2011
– Additional funding possible for Career & Tech programs and Extraordinary costs for students with disabilities would result in an additional $2.5 million
• Unknown issues concerning the funding formula
– What is the base amount of funding available – FY2010 Original State Aid or FY2011 Proposed Aid?
– Will the Maintenance of Effort Law for the City be changed?
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Continued Efforts to Reduce Expenditures
• Re-negotiate transportation contract extension
• Utility savings through arrangement with National Grid and City
• Reduction in warehouse rental costs
• Refinancing of current debt issue with Johnson Controls
• Continued review of every line item in budget based upon more information received from FY2010 experience
• If state and local aid is not provided in an amount to fill the $16.8 million budget gap, some of the following actions will be necessary:
– Layoffs– Salary reductions– Furlough days– Co-share increases– Transportation changes– Deferral of vital capital purchases– Suspension of state mandates– Suspension of all programs and extra-curricular activities outside the BEP
• The local budget is approximately 79% salary and benefits. It would be unrealistic to expect that a $16.8 million budget gap can be addressed without reductions in this area.
• Total salary expenditures in FY2011 is $175 million
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Actions to Fill Gap
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Budget Schedule (Anticipated)
• April Budget workshops• April 26 Budget submitted to Mayor• May 1 Budget submitted to Council• June Council budget hearings • June-July Final state aid determined• July Council adopts city budget• July-August School board approval• July-August Council approves ordinances