birmingham public schools board presentation february 2, 2010
DESCRIPTION
School Funding UpdateTRANSCRIPT
Birmingham Public Schools
Board PresentationFebruary 2, 2010February 2, 2010
Budget Development Guiding Principles
1. Prioritize Classroom Instruction2. Support the Implementation of the Strategic Plan3. Adapt/Restructure Instructional Support Programs4. Ensure the Financial Stability of the District
School Funding Update
2009-2010 State School Funding Update :1. On October 20, 2009, the Governor formally signed the State School Aid Act which
included a mid-year budget reduction of $165/pupil in foundation allowance ($1.3M for Birmingham Pubic Schools).
2. The Governor also line-item vetoed Section 20j funding for Hold Harmless School Districts ($1.0M additional for Birmingham Public Schools).
3. On October 22, 2009, the Governor notified the legislature of an additional $127/pupil reduction in foundation allowance to balance the budget, delayed implementation, then rescinded officially on January 11, 2010.
Stay tuned for the May 2010 Revenue Estimating Conference!
BIRMINGHAM PUBLIC SCHOOLSBOARD OF EDUCATION
FEBRUARY 2, 2010
Mid-Year Budget Actions…
1. Implement a hiring freeze for all vacant positions2. Freeze all spending on District purchases, except those
necessary for safety and functionality3. Eliminate all non-emergency staff overtime4. Restrict all capital outlay projects, except those funded
with remaining bond proceeds5. Continue to aggressively implement energy
management policy, including “pay to plug” program6. Continue to implement travel and conference
guidelines, including new pre-approval form
2010-11 2011-12 2012-13 2013-14FUND BALANCE JULY 1 12.3% 4.5% (8.3%) (24.7%)
ANNUAL SURPLUS(DEFICIT) ($8,076,021) ($14,001,927) ($18,920,213) ($22,824,170)
FUND BALANCE JUNE 30 4.5% (8.3%) (24.7%) (43.3%)
PROJECTION ASSUMPTIONS:STAFF COMPENSATION
AUTOMATIC STEP INCREASES
RETIREMENT
HEALTH-PERCENT INCREASE
PERCENT EMPLOYEES PAY
EVERYTHING ELSE
TEACHER FTE CALCULATION -4.0 -2.0 -1.0 0.0
TEACHER STAFF CHANGES
ENROLLMENT SCENARIO
ENROLLMENT CHANGE (95) (53) (21) (10)
STATE AID FOUNDATION BASE INCREASE ($435) $0 $0 $0
FOUNDATION AMOUNT $11,644 $11,644 $11,644 $11,644
FOUNDATION % INCREASE -3.60% 0.00% 0.00% 0.00%
"BIG PICTURE"BIRMINGHAM CITY SCHOOL DISTRICT
0.00% 0.00% 0.00% 0.00%3.00% 3.00% 3.00% 3.00%0.70% 0.70% 0.80% 0.90%5.00% 5.00% 5.00% 5.00%4.00% 4.00% 4.00% 4.00%0.00% 0.00% 0.00% 0.00%
0.0 0.00.0 0.0MOST LIKELY MOST LIKELY MOST LIKELYMOST LIKELY
$(600) $- $- $-
2010-11 BUDGET SENSITIVITY DATAGENERAL FUND
Sensitivity ExamplesBase Change Amount
1 FTE = $ 8,600
Enrollment 8,053 FTE'S 10 FTE = $
86,000
$50/pupil = $
402,650 State Aid Foundation Grant $ 11,644 $100/pupil =
$ 805,300
0.5% = $
367,700
Salary Changes $
58,694,980 1.0% = $
735,400
17.74%
(0.80%+) = $ 58,700Retirement Rate Changes
17.64%(0.70%+)
17.94% (1.00%+) =
$ 176,100
1% = $
137,250
Health Insurance $
14,410,711 2% = $
274,500
1% = $
46,400
Utilities $
4,643,850 10% = $
464,400
Budget Development Plan
Expense Reductions
Total Instructional Support
2002-03 $ 721,550 $ 276,500 $ 445,050
2003-04 $ 3,854,786 $ 2,078,750 $ 1,776,036
2004-05 $ 3,381,390 $ 2,551,500 $ 829,890
2005-06 $ 2,939,572 $ 2,189,462 $ 750,110
2006-07 $ 2,659,950 $ 1,760,000 $ 899,950
2007-08 $ 2,317,494 $ 1,503,250 $ 814,244
2008-09 $ 3,869,582 $ 237,872 $ 3,631,710
2009-10 $ 3,063,675 $ 1,702,044 $ 1,361,631
TOTAL $ 22,807,999 $ 12,299,378 $ 10,508,621
2009-10 Budget $ 105,147,340 $ 81,860,416 $ 23,186,924
% Cut 22% 15% 45%
Feedback from ….
Community Conversations
1. Consolidation of services or programs2. Concessions in compensation and benefits3. Reducing or eliminating transportation4. Pursuing sponsorships and advertising5. Strengthening energy management6. Expansion of pay to participate to extra-curricular
activities
Faculty, Staff and Retirees
1. Use of fund equity2. Reduce or eliminate transportation3. Increase rental of facilities4. Increase and expand pay to participate fees5. Investigate sponsorships and advertising6. Expand open enrollment options7. Provide more tuition based programs
Faculty, Staff and Retirees
8. Add a sinking fund ballot proposal9. Investigate 4-day work week, shorter school year10. Reduce administrative levels and costs11. Investigate and lower costs of programs12. Eliminate secondary classes with small enrollment13. Review cost and use of substitute teachers14. Review delivery of professional development
Work Areas to Review….
Work Areas to Review….• Restructuring Programs and Services• Concessions from Staff• Use of Fund Equity• Lobbying Lansing• Partnering with BEF and Parent Groups• Energy and Asset Management• Generating Revenue
Preliminary Reductions and Restructuring...
Budget Development Plan (BDP) 2010/11Action Source Budget
AmountStaffing
Impact (FTE)
Restructuring Business Services Business $664,616 6.0
Reviewing Transportation routes for both public & non-public Transport. $166,000 -----
Eliminating Building & Site transfer from the General Fund Bldg & Site $1,064,000 -----
Transfer Cash Flow Stabilization interest CFS Fund $30,000 -----
Implement Energy Management program, including the “Pay to Plug” program
Facilities $ 250,000 -----
Elimination of one AD position and restructuring of secretarial support. Remainder of reductions based on Athletic Advisory Committee recommendations for reorganization of game/event management, reductions in equipment and transportation and changes in pay to participate fees
Athletics $277,000 3.0
Transferring Community Service Organizers (CSO) salaries to the local council funds
Community Education $ 250,000 -----
Budget Development Plan (BDP) 2010/11Action Source Budget
AmountStaffing
Impact (FTE)
Reduction in Unemployment Costs Human Resources $ 100,000 -----
Reduction in Workers’ Compensation Costs Human Resources $ 110,000 -----
Reduction in Administrative Team salariesExecutive
Administration
$51,624 -----
TOTAL $2,963,240 9.0
Budget Development Plan (BDP) 2010/11SUMMARY
SUMMARY OF REDUCTIONS & REVENUES Total Projected Deficit for 2010-2011 $8,076,021 Less Preliminary Reductions/Restructuring $2,963,240
REMAINING BUDGET DEVELOPMENT PLAN (BDP) $5,112,781
Pending Issues:
Remaining Budget Development Plans
Use of Fund Equity Contract Negotiations
Additional Reductions and Restructuring...
Budget Development Plan (BDP) 2010/11Action Source Budget
AmountStaffing
Impact (FTE)
Restructuring professional development Educational Services $25,000 -----
Reviewing High School staffing needs Educational Services $210,000 3.0
Reviewing Middle School staffing needs Educational Services $140,000 2.0
Reviewing BCS (Birmingham Covington School) staffing needs Educational Services $100,000 1.4
Restructuring Project 2000 program services Educational Services $ 40,000 1.0
Reviewing Elementary School staffing needs Educational Services $420,000 6.0
Instituting a “Pay to Participate” fee for student activities Educational Services $50,000 -----
Budget Development Plan (BDP) 2010/11Action Source Budget
AmountStaffing
Impact (FTE)
Restructuring Middle School administration Educational Services $140,000 1.0
Increasing the fee for BCS Choice Hour activities Educational Services $50,000 -----
Expanding the Tuition Enrollment Program (TEP) Educational Services $520,000 -----
Eliminating the Cable Playback Technician position Technology $45,000 1.0
Eliminating a Technology Operational Assistant position Technology $ 45,000 1.0
Increasing teaching time for Department Chairs Instruction $140,000 2.0
Consolidating services for Environmental Education Instruction $200,000 2.5
Budget Development Plan (BDP) 2010/11Action Source Budget
AmountStaffing
Impact (FTE)
Restructuring Elementary Support Services Instruction $315,000 4.5
Restructuring Instructional Department administration Instruction $100,000 1.0
Implementing Service Plans for Non-Public Schools Special Education $100,000 1.2
Contracting Noon Aide positions Human Resources $20,000 17.0
Contracting Paraprofessional Substitute positions Human Resources $10,000 TBD
Reviewing Substitute Teaching costs Human Resources $30,000 -----
TOTAL $2,700,000 44.6
Budget Development Plan (BDP) 2010/11SUMMARY
SUMMARY OF REDUCTIONS & REVENUES Total Projected Deficit for 2010-2011 $8,076,021 Less Preliminary Reductions/Restructuring Less Additional Reductions/Restructuring
$2,963,240$2,700,000
REMAINING BUDGET DEVELOPMENT PLAN (BDP) $2,412,781
Pending Issues:
Remaining Budget Development Plans
Use of Fund Equity Contract Negotiations
Budget Development Timelines
BIRMINGHAM PUBLIC SCHOOLSBOARD STUDY SESSION
FEBRUARY 2, 2010Date Activity
November 2009 - Collect financial data, staffing, finalize enrollment forecasts, etc.
December 2009 Continue to compile restructuring/repurposing information
January 2010-February 2010
Present final forecast; budget development targetsAmend current fiscal year results (June 30, 2010)Review preliminary budget reductions/revenue enhancements
January 2010 – March 2010
Prepare preliminary budget, review forecast assumptions Continue to gather feedback, restructure and repurpose budgets
Tentatively Community ConversationsMarch 23 and 25
BIRMINGHAM PUBLIC SCHOOLSBOARD STUDY SESSION
FEBRUARY 2, 2010Date Activity
March 2010 Review budget progress Release staff allocations based on enrollment, restructuring/repurposing
March 2010 - Disseminate preliminary budget and impact information toMay 2010 the staff and community
Receive feedback and modify where appropriate
May 2010 Update taxable value informationFinalize budget development process and review preliminary budgets
June 2010 Public Hearings on 2010-2011 budgets and millagesAdopt 2010-2011 budgets and millages
Budget Development Guiding Principles
1. Prioritize Classroom Instruction2. Support the Implementation of the Strategic Plan3. Adapt/Restructure Instructional Support Programs4. Ensure the Financial Stability of the District
Summary Points
• We have been good fiscal stewards.• We are facing a significant problem over the next
two years.• Although the financial problems will cause us to
restructure, we will continue to provide a first-class education