budget transparency: overview of the operating budget
DESCRIPTION
Budget Transparency: Overview of the Operating Budget. September, 2010. Department of Education. Total Biennium Operating Budget Reductions. Total Operating Budget Reductions – FY08 vs. FY11. The greatest portion of the DOE’s budgeted dollars is allocated to the schools. - PowerPoint PPT PresentationTRANSCRIPT
Budget Transparency:Overview of the Operating Budget
September, 2010
Department of Education
Total Biennium Operating Budget Reductions
FY 2009-10 FY 2010-11Biennium
TotalReductions/RestrictionsBOE Approved Reductions (40.01)$ (40.00)$ (80.01)$ Act 162/09 Reduction (43.00)$ (43.00)$ (86.00)$ Governor's 06/01/09 Restriction for FB0911 (127.70)$ (142.60)$ (270.30)$ Act 162/09 Proviso for Restructuring Schools (1.14)$ (1.14)$ (2.28)$ Support for Struggling Non-Title I Schools (5.00)$ (5.00)$ (10.00)$ Reserve for Additional Restrictions and Anticipated Cost Increases* (10.00)$ (10.00)$ (20.00)$ Target: Total DOE Reduction/Restrictions (226.85)$ (241.74)$ (468.59)$
Total Operating Budget Reductions – FY08 vs. FY11
Data reflects General Funds only
Description FY2007-08 Budget% of Total FY2010-11 Budget
% of Total Variance
% Reduction
School Total 968,885,766$ 69% 935,710,363$ 72% (33,175,403)$ -3%Centralized Services for Schools Total 319,930,510$ 23% 285,724,932$ 22% (34,205,578)$ -11%Complex Area Total 22,283,207$ 2% 17,508,358$ 1% (4,774,849)$ -21%State Offices Total 83,165,552$ 6% 57,489,799$ 4% (25,675,753)$ -31%Subtotal 1,394,265,035$ 100% 1,296,433,452$ 100% (97,831,583)$ -7%Legislative Adjustment [1] -$ (43,000,000)$ (43,000,000)$ 0%Total 1,394,265,035$ 1,253,433,452$ (140,831,583)$ -10%
Department of EducationFY2010-11 Operating Budget Reductions - Dollars
• The greatest portion of the DOE’s budgeted dollars is allocated to the schools
• The greatest percentage reductions to the DOE’s budget has come from the State and Complex Area
Total Operating Budget Reductions – FY08 vs. FY11
Data reflects General Funds only
• The greatest portion of the DOE’s budgeted positions is allocated to the schools
• The greatest percentage reductions in the DOE’s budget has come from the State and Complex Area
Description FY2007-08 Budget% of Total FY2010-11 Budget
% of Total Variance
% Reduction
School Total 18,866.40 87% 18,526.78 87% (339.62) -2%Centralized Services for Schools Total 1,741.50 8% 1,780.50 8% 39.00 2%Complex Area Total 325.00 1% 286.50 1% (38.50) -12%State Offices Total 791.00 4% 599.50 3% (191.50) -24%Total 21,723.90 100% 21,193.28 100% (530.62) -2%
FY2010-11 Operating Budget Reductions - FTEsDepartment of Education
Total FY2010-11 Operating Budget After Reductions
General Fund Budget$1.3 Billion
$935,710,363 , 73%
$285,724,932 , 22%
$57,489,799 , 4%
$17,508,358 , 1%
School Total Centralized Services for Schools Total Complex Area Total State Offices Total
The State and Complex Area took reductions to preserve instructional services at the school level!
Total FY2010-11 Operating Budget After Reductions
The State and Complex Area took reductions to preserve instructional services at the school level!
What are DOE Centralized Services?
Why is this budget not allocated to the schools?
The principal can focus on being the educational leader of the school!
The DOE as a system can take advantage of standardization and economies of scale!
DOE Centralized Services Electricity bills and other utilities Network infrastructure support/development School food services Student transportation Diagnostic services for SPED services qualification Personnel hiring, recruitment, and recordkeeping Workers compensation Unemployment benefits administration Financial accounting and reporting IT development, implementation, operations Litigation support
Autism, school based behavioral health Special education provision and recordkeeping
DOE Statewide Responsibilities Strategic Planning Student Achievement Standards Development Budget Preparation and Execution Teacher Certification Hawaii State Assessments Policy Development Internal Audit Compliance with US DOE and State Regulations Federal Reporting Requirements Inter-governmental relationship management
General Funds $1.3 Billion, 76%
Federal Funds Ceilings $305.7
Million, 18%
Special Funds, Trust Funds, Interdepartmental Transfers, and Revolving Funds $92.8 Million, 6%
DOE Budget $1.7 Billion(Does not include $57 Million from the Hurricane Relief Fund)
Budget Summary by All Means of Financing
Salaries $996.7 Million, 60%
Non-Salaries $655.2 Million,
40%
DOE Budget $1.7 Billion(Does not include $57 Million from the Hurricane Relief Fund)
Budget Summary by Salaries/Non-Salaries
No Fringe Benefits are Included.
Removed from DOE Budget since
FY09-10. Total Amount = $456.3 Million, or $2,641 per student for
FY10-11
Weighted Student Formula
(WSF) 42% Federal Funds 11%
Other Programs 6%
Special Education
(SPED) 11%
Other SPED & Student Support Programs 10%
Other Centrally Expended 5%
Facilities (Repairs & Maintenance) 3%
Utilities 3%
Student Transportation 3%
Food Services 6%
DOE Budget $1.7 Billion(Does not include $57 Million from the Hurricane Relief Fund)
Weighted Student Formula
(WSF) $702.3 Million Federal Funds
$175.8 Million
Other Programs $97.1 Million
Special Education (SPED)
$186.0 MillionOther SPED &
Student Support Programs
$159.5 Million
Other Centrally Expended
$86.7 Million
Facilities (Repairs & Maintenance) $42.8 Million
Utilities $56.1 Million
Student Transportation$51.3 Million
Food Services$94.5 Million
DOE Budget $1.7 Billion (Does not include $57 Million from the Hurricane Relief Fund)
Weighted Student Formula (WSF)The Weighted Student Formula (WSF) promotes equity by allocating funds to schools based on
individual students’ educational needs.
Weighted Characteristics:• Economically Disadvantaged• English Language Learners• Geographic Isolation• School Size/Sliding Scale• Multi-track• K-2 Class Ratios• Transient Students• Neighbor Island Students
$702.3 Million of DOE Budget = 42%
With 172,806 students enrolled, approximately
$4,064 is average budget per student.
Budget per student is based on SY 2010-11 Projected Official Enrollment Count
Other Programs (Categorical)
• At Risk Programs• Summer School• Driver Education• Lost Textbooks• School Health Aides• After School A Plus
• Athletics (except Directors—now in WSF)• JROTC• Hawaiian Language Immersion Program• Hawaiian Studies• Other Instructional Services • Learning Centers• Student Activities (Student Conference, Student Council,
Awards, Student Exchange)• Peer Education Program
$97.1 Million of DOE Budget = 6%
• Educational Research & Development• Trust Funds (Grants, Donations, Athletics, Olelo)• Hawaii Content/Performance Standards, Restructuring• Etc…
≈ $562 per student
Separate funding is allocated to ensure that specific programs are established and supported for broadened education.
Federal FundsTitle 1
No Child Left Behind
Impact Aid
Vocational Education
Smaller Grants
$175.8 Million of DOE Budget = 11%
≈ $1,017 per student
Special Education (SPED)
• Teachers• Classroom Supplies• Educational Assistants
SPED Requirements at Schools
Centrally Expended for SPED and Student Support Programs• Federal Funds• Special Olympics• School Based Behavioral Health• Services for Children with Autism• Student Support Services• Recruitment and Retention Incentive• Educational Assessment/Prescriptive Services• Special Education Database• Extended School Year• Home/Hospital Instruction• Etc…
$186.0 Million = 11% of Budget≈ $1,076 per student
$159.5 Million = 10% of Budget≈ $923 per student
Special Education (SPED)
$345.4 Million (SPED Combined) =
21% of Budget
• 18,172 special education students projected enrollment in FY 2010-11
• 11% of total student enrollment
≈ $10,234 per SPED student
SPED Requirements at Schools
Centrally Expended for SPED and Student Support Programs
≈ $8,775 per SPED student
≈ $19,010 per SPED student
Food Services $94.5 Million
6%Student
Transportation $51.3 Million
3% Utilities
$56.1 Million
3%
Facilities (Repairs & Maintenance, School Inspection, State
Administration, etc.):$42.8 Million
3%
Other Parts of theDOE Budget for Students
≈ $484 per student≈ $242 per student
≈ $242 per student
≈ $297 per student
≈ $247 per student
≈ $547 per student
≈ $325 per student
All Other Centralized Expenses
• Complex Area Administration• Office of Curriculum, Instruction, and Student Support (Teleschool, Adult
Education, Federal Funds for Homeless, National Science Foundation, NAEP, Etc.)
• Office of Human Resources (Teacher Improvement Services, Leadership Development, Etc.)
• Office of Information Technology • Office of the Superintendent (Systems Accountability: Testing, Evaluation,
Planning, Etc.)• Office of Fiscal Services • All Other (Board of Education, HTSB, and Art in Public Places)
5% of DOE Budget - $86.7 MillionIn addition to supporting student achievement, the remaining
5% of the DOE Budget supports a combination of the schools, the complex areas, and the state level functions. Many of
these impact student education directly and all others affect student education indirectly.
1.0%1.1%
1.0%
1.1%0.5%
0.3%0.2%
$ 99$107
$ 98
$109$ 44
$ 24$ 20
≈ $502 per studentPer Student 5% Breakdown
Complex Area (ICAA) = $17.1 Million; Remaining State Offices = $69.6 Million
Summary
Expended by Principals for Students 70%≈ $6,719 per student
42%
28%
Centralized Expenses for Students 25%≈ $2,339 per student
Other Centralized Expenses for Schools 5% ≈ $502 per student
WSF
Categorical, SPED, Federal
95% of Budget
Budget per student is based on SY 2010-11 Projected Official Enrollment Count
SummaryBudget Breakdown Per Student
Weighted Student Formula 42%
$4,064 per student
SY 2010-11: 172,806 Students Projected
95% of Budget = $9,058 Average
Per StudentOther Student
Funding at Schools 52%
$4,994 per student
All Other Centralized Expenses at 5% $502 per studentAffects Schools, Complex Areas, State Offices, etc.
100% of Budget = $9,559 Average Per
Student
HSA ResultsReading - Percent Proficient
42 4145 48 47
60 62 65 67
30 30 30
44 44 44
58 58 58
72 72
86
100
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Perc
enta
ge
Actual Results Annual Measurable Objectives Under NCLB
HSA ResultsMath - Percent Proficient
20 20 23 24 27
3842 44
49
10 10 10
28 28 28
46 46 46
64 64
82
100
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Perc
enta
ge
Actual Results Annual Measurable Objectives Under NCLB
“The Big Picture”
State of HawaiiExecutive Budget General Funds All Means of Finance
$4,943,348,231 $10,241,967,263
DOE Budget General Funds All Means of FinanceEDN100 $705,256,507 $955,364,041EDN150 306,475,682 353,790,360 EDN200 22,430,453 25,691,997 EDN300 42,517,962 42,552,963 EDN400 171,837,016 245,269,051 EDN500 4,918,832 29,253,061 EDN100-500 Total $1,253,436,452 $1,651,921,473DOE % of Exec 25.36% 16.13%
Factor in Fixed Costs General Funds All Means of FinanceBUF725 - Debt Service $194,855,477 $194,855,477BUF745 - Retirement 249,726,061 249,726,061 BUF765 - Health Ins 206,597,259 206,597,259 DOE Share of Fixed Cost Total $651,178,797 $651,178,797DOE Share of Fixed Cost % of Exec 13.17% 6.36%
DOE + Fixed Costs General Funds All Means of Finance$1,904,615,249 $2,303,100,270
DOE + Fixed Costs % of Executive Budget 38.53% 22.49%
FY10-11
The DOE budget (including fixed costs) represents:• 38.53% of the entire state
general fund budget• 22.49% of the entire state
budget for all means of financing
Race to the Top (RTTT) RTTT grants are aimed at
rewarding states that have “ambitious yet achievable” plans for implementing compelling and comprehensive education reform
Hawaii will receive $75 million, the maximum for a state its size, over a four-year period
“The money is meant to start reforms, to leverage reforms. This is not intended to replace our general fund budget reductions.”
Kathryn Matayoshi, Superintendent
Summarized from The StarAdvertiser, 08/25/10
Race to the Top (RTTT)
Placed in top three! (applicants judged on a 500-point scale by a five-member expert panel)
Compared Top 3 Phase II Winners Score to Hawaii
Massachusetts 471.0 8.6 points New York 464.8 2.4 points Hawaii 462.4
Only 2 Phase I Winners Tennessee Delaware
Summarized from The StarAdvertiser, 08/25/10
Race to the Top (RTTT)The four-year, $75 million grant will help kick-start reforms across Hawaii’s public school system. Here is how it will be spent:$33.2 million Cultivate, reward, and leverage” effective teaching and school leadership by
instituting performance-based contracts for teachers and principals tied, in part, to student performance growth. Funds will also go to professional development, bonuses for highly effective teachers, and other initiatives.
$18.7 million Turn around the lowest-performing schools by targeting programs in “zones of school innovation,” expanding pre-kindergarten opportunities, and extending classroom time.
$9.3 million Boost student achievement and classroom rigor by implementing the national common core standards curriculum, aimed at standardizing what students across the country learn.
$7.2 million Improve student performance data collection and use, allowing teachers, parents, schools, and the DOE to quickly see when a student is struggling and track how a student performs from kindergarten through graduation (and through college).
$6.5 million Reorganize to improve and streamline how the Department of Education monitors and supports reforms.
Summarized from The StarAdvertiser, 08/25/10
Race to the Top (RTTT) Questions about RTTT?
For more information, please access the DOE’s website for RTTT
http://doe.k12.hi.us/arra/index.htm