2006 – 2007 Budget Outline2006 – 2007 Budget Outline

Keeping the promise by Keeping the promise by adjustingadjusting and and aligningaligning our our

budgetbudget

We must We must alignalign what we do with what we do with what we promised. That will take what we promised. That will take

some budget some budget adjustmentsadjustments..

Budget ObjectivesBudget Objectives

Slow the pace of current spendingSlow the pace of current spending Equalize spending among schoolsEqualize spending among schools Align budget with goals and prioritiesAlign budget with goals and priorities Frugal spending, healthy reservesFrugal spending, healthy reserves

Prevailing FactorsPrevailing Factors

Slower growth means fewer dollarsSlower growth means fewer dollars Move staff to where the students areMove staff to where the students are Commitments to improve achievementCommitments to improve achievement Increases in insurance, retirement, fuel, etc.Increases in insurance, retirement, fuel, etc. Providing competitive salaries Providing competitive salaries Promises to taxpayers for frugal spending Promises to taxpayers for frugal spending

I. Growth and Staffing FactorsI. Growth and Staffing Factors Growth has slowed Growth has slowed

significantlysignificantly The percentage of The percentage of

students on Free students on Free and Reduced Lunch and Reduced Lunch has declined has declined

Class size averages Class size averages are below the state are below the state requirementsrequirements

Budget Adjustment

II. Employee FactorsII. Employee Factors Employee benefit costs will Employee benefit costs will

increase significantlyincrease significantly Salaries will reflect the Salaries will reflect the

longer school daylonger school day Supplements and longevity Supplements and longevity

will increasewill increase Competitive salaries MUST Competitive salaries MUST

be maintained.be maintained. Staffing ratios are not Staffing ratios are not

aligned with current aligned with current enrollmentenrollment

Budget Adjustment

III. Other FactorsIII. Other Factors

Property insurance rates going upProperty insurance rates going up Utility costs and fuel costs going upUtility costs and fuel costs going up Reserve balance must stabilize Reserve balance must stabilize

within the Board adopted rangewithin the Board adopted range

Budget Adjustment

Data-Driven Decision-MakingData-Driven Decision-Making

Declining Growth in Declining Growth in Student EnrollmentStudent Enrollment

2000-2000-20012001

2001-2001-20022002

2002-2002-20032003

2003-2003-20042004

2004-2004-20052005

2005-2005-20062006

2006-2006-20072007

35,49935,499 37,04837,048 38,02638,026 39,51939,519 41,15841,158 41,61941,619 42,10742,107

923923 15491549 978978 14931493 16391639 461461

-1039-1039

488488

-1012-1012

Declining growth in enrollment will reduce state funding $12-$15M

Title I AppropriationsTitle I Appropriations

2005-062005-06 2006-072006-07

F/R F/R PercentagPercentag

ee36.57%36.57% 33.09%33.09%

# Schools # Schools ServedServed 1212 1010

# of # of teachers teachers fundedfunded

7171 6262

Staffing: Core CoursesStaffing: Core CoursesK-3K-3 4-54-5 6-86-8 9-129-12

TargetTarget 1818 2222 2222 2525

LOWLOW 13.013.0

-5.0-5.0

11.411.4

-10.6-10.6

13.413.4

-8.6-8.6

20.820.8

-4.2-4.2

HIGHHIGH 22.522.5

+4.5+4.5

22.622.6

+0.6+0.6

24.424.4

+2.4+2.4

23.123.1

-1.9-1.9

We must adjust the current variations of class size to reflect Class Size Amendment requirements.

Sarasota vs. FloridaGrades 4-8

10

12

14

16

18

20

22

24

26

2002-03 2003-04 2004-05 2005-06

Years

Cla

ss

Siz

e A

ve

rag

e

4-8 Florida

4-8 Sarasota

4-8 Target

Class Size Amendment

Estimated Cost of Increases in 06-07Estimated Cost of Increases in 06-07

Health Insurance IncreaseHealth Insurance Increase $3.3 million$3.3 million

Retirement Contribution Retirement Contribution IncreaseIncrease $6.1 million$6.1 million

Increase in Supplement CostIncrease in Supplement Cost $0.7 million$0.7 million

Negotiated Steps IncreaseNegotiated Steps Increase $2.3 million$2.3 million

Salary Increase with longer Salary Increase with longer student daystudent day $4.9 million$4.9 million

Salary CompetitivenessSalary Competitiveness 0 - $12.5 million0 - $12.5 million

TOTALTOTAL $17.3 - $ 29.8 Million$17.3 - $ 29.8 Million

Other Estimated Increases Other Estimated Increases

Property Insurance Property Insurance IncreaseIncrease $0.7 million$0.7 million

Utility and Fuel Utility and Fuel IncreasesIncreases $5.2 million$5.2 million

Stabilize Fund Stabilize Fund BalanceBalance $19 million$19 million

Operational Cost to Operational Cost to open School “H”open School “H” $0.8 million$0.8 million

6-Year Trend of Appropriations 6-Year Trend of Appropriations

01-0201-02 02-0302-03 03-0403-04 04-0504-05 05-0605-06 06-0706-07

233M233M 250M250M 289M289M 331M331MIncluding Including $5M $5M Fund Fund ReserveReserve

376M376MIncluding Including $19M $19M Fund Fund ReserveReserve

394M394M

% Inc% Inc 7.27.2 15.615.6 14.514.5 13.513.5 4.74.7

Per Per PupilPupil

$6363$6363 $6624$6624 $7314$7314 $8042$8042 $8977$8977 $9381$9381

Fund ReserveFund Reserve

0

10

20

30

40

50

60

70

Fund Reserve in Millions

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

We must stabilize our fund reserve at approximately 7.5% each year.

Target 7.5%

Our budget will grow from Our budget will grow from $376$376 to to $394$394 million million

4.8% increase in actual dollars4.8% increase in actual dollars Per Pupil increase from Per Pupil increase from $8,977 $8,977 to to

$9,381$9,381

Adjustments, not cuts

06-07 Referendum Dollars06-07 Referendum DollarsContinue 2002 Continue 2002 Commitments Commitments

$34.5 million$34.5 million

Thirty minute Thirty minute longer student longer student instructional dayinstructional day

$8.3 million$8.3 million(teachers’ salaries)(teachers’ salaries)

Professional Professional development for development for teachersteachers

$3.5 million$3.5 million(teachers’ salaries)(teachers’ salaries)

Fund ReserveFund Reserve $2 million$2 million

TechnologyTechnology $1.5 million$1.5 million

NeXt Generation NeXt Generation High SchoolsHigh Schools

$2 million$2 million

•Increased teacher salaries

•Reduced class size

•Reading Coaches and remedial teachers

•Reduced the dropout rate

•Increased honors and enrichment courses

•Restored budget cuts

•Hired Guidance Counselors

•Enhanced music and art programs

•Open a school for at-risk students

•Security Aides

Referendum CommitmentsReferendum Commitments

Growth: Schools & Departments Growth: Schools & Departments

During the past five years, school personnel have increased at a rate slightly greater than departments.

# Personnel in # Personnel in SchoolsSchools

# Personnel @ # Personnel @ the Landingsthe Landings

# Personnel in # Personnel in Trans., Facilities Trans., Facilities Serv., Telecom, Serv., Telecom, Construction & Construction & MaterialsMaterials

2001-022001-02 29372937 199199 801801

2005-062005-06 40114011 247247 10221022

Increase Increase in staffin staff

10741074 4848 221221

% Increase% Increase 36.5%36.5% 24%24% 28%28%% of total % of total employeesemployees

76 %76 % (up) (up) 5% 5% (same)(same) 19%19% (down) (down)

Question:Question:

Did NeXt Generation Learning Did NeXt Generation Learning cause these budget cause these budget adjustments? No.adjustments? No.

Most increases were used for teacher Most increases were used for teacher salaries and benefits salaries and benefits (professional (professional development 30 hours and extended day)development 30 hours and extended day)

Professional development is building Professional development is building capacity & the key to improving capacity & the key to improving student achievement.student achievement.

Non-salary parts of NeXt Non-salary parts of NeXt Generation Learning account for Generation Learning account for less than 1% of the total budgetless than 1% of the total budget

05-0605-06

Total Total AppropriationsAppropriations $377,617,300$377,617,300

NeXt Generation NeXt Generation Non-Salary ItemsNon-Salary Items $ 2,700,496$ 2,700,496

Planning Tool, PBD, Phoenix Supp, High School Reform, Excellence, Connect Ed, Facilities Condition Assessment, Raptor

Positions reduced, not dollars

Staffing AdjustmentsStaffing Adjustments Some schools will reduce staff while Some schools will reduce staff while

salaries go upsalaries go up Some schools will add staffSome schools will add staff All schools will comply with Class Size All schools will comply with Class Size

AmendmentAmendment Positions adjusted 4% while budget Positions adjusted 4% while budget

increases 4.8%increases 4.8%• Schools, departments will make Schools, departments will make

recommendations in Mayrecommendations in May• We’ll still need teachers district-wideWe’ll still need teachers district-wide

ConclusionsConclusions

We will slow the pace of current We will slow the pace of current spendingspending

We will equalize spending among We will equalize spending among schoolsschools

We will align budget with goals, We will align budget with goals, priorities, and projected enrollmentpriorities, and projected enrollment

We will spend frugally and maintain We will spend frugally and maintain healthy reserveshealthy reserves