FY21 Finance Committee Recommended Budget for Board Vote Special Meeting of the Portland Board of Education May 26, 2020
Agenda ● Update on where we stand ○ Timeline ○ Current proposed budget ● Review of Board member questions posed since last week ● Board discussion and vote
Budget Timeline May 26 June 1 June 15 July 14 School Board City Council City Council Public Vote Vote Public Vote Hearing and First Read Full Budget Calendar available here.
FY21 Budget Overview FY21 Budget 2.1% 0% $119.9 M Increase over School Tax FY20 Rate Increase Last Year: Last Year: Last Year: $117.4 M 6.2% 4.9%
Update on Budget Process Where we stand today Current Scenario (Finance Committee approved Tax Rate with endorsement from City Budget Required Gap Increase Finance Committee) No Tax Increase $119,862,677 0% ($472,000)
Current Proposed Budget Makes up the gap between 0.5% tax rate increase and 0% tax rate increase with $100,000 contractual svcs cuts and proposed TBD reduction in COLA and/or co-curricular programming ($372,000) Total Gap for 0% Tax Rate Increase $472,000 Reduction in negotiated/non-negotiated COLA* and/or offset by co-curricular reductions for the $372,000 difference Academics/Central Office Contractual Services $100,000 Needed Offsets to 0% tax increase $472,000 *Note: an additional $100K in cuts to COLAs (the amount equivalent to what was previously budgeted for non-rep) was already built in to the May 7 Proposed Budget, making the total cuts to COLAs in this budget = $472K.
Update on Budget Process The Finance Committee: Approved a $119,862,677 budget and referred to the Board on 5/18 ● Includes a 2.1% revenue/expenditure increase and a 0% tax rate increase. ○ Requires a $472,000 offset to retain Title I investments ● Current budget includes a $100K decrease to Academics/CO contractual reductions. ● Includes an additional $372K in COLA reductions, with reductions to athletics and ● co-curriculars as a “backstop” in the event COLA reductions at this level cannot be achieved. 0n 5/21, the City Council Finance Committee endorsed this budget. ●
FY21 Reductions Description Savings Fourth & Fifth Grade Spanish Classes (4.0 Teachers) ($257,000) High School Staffing (enrollment-based) (3.0 Teachers) ($195,000) Central Office / Operations (1.0 Custodian) ($41,000) Contracts, Contingencies ($250,000) COLAs (non-rep) ($150,000) Supplies 3% Reduction ($51,000) Athletics/Co-Curricular 6% Reduction ($140,000) Additional COLA Reductions (or Co-Curricular) COLAs - TBD ($372,000) Total (8.0 FTEs) ($1,457,000)
FY21 Investments Description Cost Pre-K Expansion 2.0 Teachers $291,000 2.0 Ed Techs Expansion Sites Sustain and Deepen Core Instruction Illustrative Math $125,000 and Phonics - Scale up Special Education- Extend the Continuum of 2.0 Ed Techs $293,000 Service for Students w/ Autism 1.0 Teacher 3.0 Ed Techs Nursing Adjustments 0.8 School Nurse $57,000 Preserve Title Investments 6.8 Teachers $665,000 Total 17.6 FTEs $1,430,000
CARES CARES funding allocations released last week ● Allocation = $1,926,769 ○ This = 80.4% of FY20 Title I allocation amount, using Title I ○ proportionate shares for private schools (favorable over USDOE proposed alternative) Currently budgeted $1,273,307 in custodial salaries, pending ● application submission and approval of proposed use Leaves a reserve balance of $653,462 ●
Contingency Planning Needs PPE, custodial supplies, space modifications, etc. ● Extended learning (extended day, extended year, targeted supports) ● Remote learning costs (equipment, curriculum) ● Engagement supports (PCS, extended family engagement) ● COVID-related HR expenses (leave coverage, unemployment) ● Potential curtailments ● Funding Sources Situational Reductions ● Fall sports ○ Transportation ○ CARES reserves ● Potential future stimulus ●
What’s Still Missing from this Budget Mitigating the Gap Total Potential Investments (Prioritized) Description Cost Secondary SLIFE Program Lau Plan / ELL $143,000 Dually Identified Student Supports Lau Plan / ELL $90,000 ELL Collaboration & Specialized Instruction Lau Plan / ELL $441,000 Special Education Caseloads Special Education $98,000 Fully Fund Curriculum Scale Up Core Instruction $40,000 Website Other $50,000 Total $862,000
FY 22: Risks and Mitigation Mitigation Risks Retain flexibility to make moves to ● FY22 projected budget, roughly $126.5 ● reduce expenses in this fiscal year (i.e. million furloughs, COLA reductions, etc) Escalation of salaries and benefits ○ Preserve CARES funding into FY22 to ○ Debt service ○ the extent possible Salaries on the CARES grant returning ○ Balance with acute need to make ○ to General Fund investments in FY21 Key structural/programmatic changes ● Expect EPS will decrease by $2.5-3 million ● under consideration Valuation fundamentals are still in play ○ Elementary reconfiguration ○ Assumes state will pick up a higher ○ Middle school model ○ share of cost of education High school staffing formula ○ Federal CARES funding as a variable for either side
Class Size As projected for FY21 per enrollment as of April 2020 Savings = 5 classrooms 5 classrooms @ 65,000 = $325,000 Impacted Schools & Grade Levels Average Class Size (excluding Island School data) Grade 1 Grade 2 Grade 3 East End Grade 3 Cap of 22 19 19 21 Longfellow Grade 1 Cap of 25 21 20 21 Lyseth Grade 2 Reiche Grade 1 Note: This latest enrollment data no Riverton Grade 1 longer supports classroom increases at Total Presumpscot or Reiche, even without a class size increase. Savings = $130,000.
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