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2012-2013 Superintendent’s Budget

Presentation for Providence School Board

March 26, 2012

FY2011-2012 Budget Projection

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Projected Revenues $308,553,007Projected Expenditures 309,301,098

Surplus/(Deficit) ($748,091)

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Budget Drivers

• Student Achievement– Class size, curriculum development, professional development, classroom

materials, extracurricular activities, innovations schools, 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

• Vendor Contract Obligations– Transportation– Custodial and maintenance– Outside tuitions

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Local Budget Comparison FY 2012 to FY 2013

Providence School Department

Fiscal Year 2012-2013

Local Budget Revenue/Expenditure Projection

Budget Projection Change

Revenues 2011-2012 2012-2013

State Aid $177,121,396 $177,121,396 $0

Restore Federal Job $ 8,683,552 8,683,552

Funding Formula Year 2 7,682,555 7,682,555

Categorical Changes 228,566 228,566

Supplemental Jobs $ FY 12 (128,298) (128,298)

Group Home Updates (90,000) (90,000)

Non Public Transportation   (112,426) (112,426)

SUBTOTAL 177,121,396 193,385,345 16,263,949

City Aid 124,896,611 124,896,611 0

Medicaid 4,250,000 4,250,000 0

Indirect Cost 1,700,000 1,500,000 (200,000)

Miscellaneous 585,000 585,000 0

SUBTOTAL 131,431,611 131,231,611 (200,000)

TOTAL REVENUE 308,553,007 324,616,956 16,063,949

Expenditures

Total Expenditure 308,553,007 330,821,024 22,268,017

  BUDGET GAP $6,204,068

Budget Expenditure Variances

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Salaries Delay in Hiring Add Back / Onetime Salary Reductions $3,109,500Loss of Federal Jobs Funds 1,350,000Title I Stimulus $ 300,000Literacy Surplus 1,500,000Furlough Days 1,550,0001033 Step Freeze 325,0001033 1% Wage Add Back 350,000PTU Longevity 690,500Steps 860,000New Positions 1,180,000Crossing Guards 6 65,000Displaced Teachers FY 12-13 Est. 25 FTE's 1,800,000Misc 81,172

13,161,172

BenefitsDental 4% Projected Increase and Additional Staff 265,327Medical 3% Projected Increase and Additional Staff 929,231FICA Salary Items 1,006,830Retiree Medical 4% Projected Increase 262,349City Retirement 11.19% Increase to Rate 773,054Workers Compensation Based on FY 11-12 Projections 200,000Workers Compensation Med Based on FY 11-12 Projections 100,000Laborer’s Pension 10% Increase April 2013 190,000

3,726,791

Budget Expenditure Variances (Continued)

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Other

Technical Service IT Service Contracts 44,000

Non Technology Related Repairs Building Generator Conversion 50,000

Transportation Budget Increased by 16 Busses plus 2% Contract Increase 1,370,672

Tuition to Other School Districts $1,100 per Student Increase for Met & Davies 659,499

Tuition Based on FY 11-12 Projection 700,000

Tuition to Charter Schools $584 per Student Increase 378,640

Computer Hardware Phase I of Elementary School Computer Upgrades 800,000

Computer Hardware Phase I of Electronic White Board Installation 700,000

Custodial Service 3% Contractual Increase 501,000

Natural Gas Natural Gas (Heating) 200,000

Miscellaneous Changes (23,757)

5,380,054

Expenditure Increases $22,268,017

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Budget Unknowns

• Final State Aid Allocation to the District

• Final City Appropriation to the District

• Final Federal Entitlements

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FY2013 Budget Overview

Budget Revenue Assumptions

• State Aid will be calculated without the accelerated funding formula

– Governor’s FY2013 Proposed Budget calls for an accelerated funding formula which results in an additional $3.7 million increase for Providence

• The City appropriation to schools will remain at the FY2012 amount

– City funded 40.47% of FY2012 budget. Level funding of the FY2013 proposed revenue budget is 38.48%

• Federal Entitlements will be level funded

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• Eliminating a $6.2 million budget gap

• Achieved by:– Approval of Governor's Revenue Proposal– Staffing Reductions– New Initiatives

Budget Expenditure Assumptions

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Budget Expenditure Assumptions (Continued)

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Current Budget Gap $6,204,068

Accelerated Funding Formula 3,679,073

Proposed Positions 90,288 - 1,640,875

New Initiatives 20,000 - 1,930,000

Proposed Budget Gap $0

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FY 2013 Expenditures

Proposed Expenditures $330,821,024

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FY 2013 Revenues

Projected Revenues $324,616,956

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Budget Schedule (Anticipated)

• March 26 Budget Submitted to School Board• April 27 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

Questions ?

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