May 7, 2020 Board Meeting 2020-21 Budget Dr. Kenneth Adix As of - PDF document

May 7, 2020 Board Meeting 2020-21 Budget Dr. Kenneth Adix As of May 7, 2020 at 10:00 AM 1

Round Rock ISD Budget Calendar 2020-21 Meetings Dates PIB Committee - Budget Update February 3 Board Workshop - Budget Update and Discuss Proposed April 2 Compensation Plan Board Meeting - Budget Update and Deferred Adoption of 2020- April 16 21 Compensation Plan Board Meeting - Budget Update and Adoption of 2020-21 May 7 Compensation Plan Board Workshop - Budget Update (Tentative) June 4 Board Meeting - Adoption of 2020-21 Budgets June 18 Board Meeting - Adoption of 2020-21 Tax Roll and Tax Rates September 17 2

Assumptions 1. Tax rate is compressed from $0.97 to $0.9561. 2. Tax collection rate lowered from 99.5% to 98.5%; 14 year low is 98.7%. 3. ADA increases 375 (19-20 grew 851). ADA at 95.5%, 10 year low is 95.8%. 4. $3M in funding from CARES Act. 5. Taxable property values increase by 4%. 6. Very low interest rates ($5M decrease). 7. Overall 2% pay increase and District covers increase in medical insurance. 8. No additional staffing. Decreased budgeted payroll by $8M to match our current run rate. 3

Comparing Forecast to Budgeted Salaries & Benefits for 2020 - 2021 $000s 2020 - 2021 Forecast FYE 2020 $ 377,437 Compensation Changes - Overall 2% Raise ($6.8M), Market Adjustments ($1.9M), Credit for Years of Service ($1M), Guest Educator (Increase $25; $1.5M), Bilingual 12,100 Stipend (from $4,500 to $7,000; $0.4M), Buy Back Local Days ($0.5M) TRS on Compensation Changes 787 Medical Insurance Increase 1,000 2020 - 21 Forecasted Salaries & Benefits $ 391,324 2020 - 2021 Budgeted Salaries & Benefits 401,508 Forecasted Payroll Better Than Budget $ 10,185 4

PRELIMINARY DRAFT ROUND ROCK ISD GENERAL FUND - BUDGET COMPARISON $000s 2019 - 2020 2020 - 2021 Line # Budget Budget REVENUE 1 Current Year Tax Collections (98.5%) $ 363,891 $ 371,300 2 Impact of not Compressing Tax Rate per $.01 ($6M) - 3 Delinquent Tax Collections 600 200 4 Penalties and Interest 700 700 5 Other Local Revenue ($5M less interest; $0.5M from e-rate) 10,200 5,700 6 State Revenue (CARES $3M) 36,231 35,834 7 School Health and Related Services (SHARS) 4,000 4,000 8 Federal Revenue 200 200 9 Community School / Employee Program Revenue 2,000 2,000 10 Teacher Retirement System - On-Behalf 21,155 21,421 Total Revenues $ 438,976 $ 441,355 11 5

PRELIMINARY DRAFT ROUND ROCK ISD GENERAL FUND - BUDGET COMPARISON $000s 2019 - 2020 2020 - 2021 Line # Budget Budget 12 13 EXPENSES 14 Salaries & Benefits: 15 Salaries & Benefits $ 333,481 $ 364,782 16 Teacher Retirement System - On-Behalf 21,155 21,421 17 Changes (19-20: New Positions, 20-21: Run Rate Adjustment) 7,041 (8,000) Compensation Changes - Overall 2% Raise ($6.8M), Market Adjustments ($1.9M), Credit for Years of Service ($1M), Guest 18 22,260 12,100 Educator (Increase $25; $1.5M), Bilingual Stipend (from $4,500 to $7,000; $0.4M), Buy Back Local Days ($0.5M) 19 Medical Insurance Increase 2,000 1,000 20 Mental Health Services 10,330 10,205 Total Salaries & Benefits $ 396,267 $ 401,508 21 22 23 ALLOCATIONS: 24 Campus and Library 6,301 6,443 Departments (includes Transition to In-House SROs during 20- 25 44,200 44,055 21 and Contracting of Some Bus Routes in 20-21) 26 Food Service (1,633) (1,851) 27 Strategic Plan ($500k), Innovation Initiatives ($150k) 1,200 650 Total Allocations $ 50,068 $ 49,297 28 29 Total Expenses $ 446,335 $ 450,805 30 31 Surplus / (Deficit) $ (7,358) $ (9,450) 32 33 Forecast Better Than Budget 18,000 10,000 34 Transfer to Capital Projects Fund (10,000) (5,000) 35 36 Additional State Funding from PV Audits (2016, 2017) 5,000 37 Beginning Fund Balance 217,922 218,564 Ending Fund Balance $ 218,564 $ 219,114 38 Ending Fund Balance (without Pay Raise and $ 218,564 $ 232,214 39 Medical Insurance Increase in 2020 - 21) 6

PRELIMINARY DRAFT ROUND ROCK ISD GENERAL FUND - BUDGET COMPARISON $000s 2020 - 2021 2020 - 2021 2019 - 2020 2020 - 2021 Line # No ADA 1% ADA Budget Budget Growth Decline REVENUE 1 Current Year Tax Collections (98.5%) $ 363,891 $ 371,300 $ 371,300 $ 371,300 2 Impact of not Compressing Tax Rate per $.01 ($6M) - - - 3 Delinquent Tax Collections 600 200 200 200 4 Penalties and Interest 700 700 700 700 5 Other Local Revenue ($5M less interest; $0.5M from e-rate) 10,200 5,700 5,700 5,700 6 State Revenue (CARES $3M) 36,231 35,834 33,257 32,993 7 School Health and Related Services (SHARS) 4,000 4,000 4,000 4,000 8 Federal Revenue 200 200 200 200 9 Community School / Employee Program Revenue 2,000 2,000 2,000 2,000 10 Teacher Retirement System - On-Behalf 21,155 21,421 21,421 21,421 Total Revenues $ 438,976 $ 441,355 $ 438,778 $ 438,514 11 7

PRELIMINARY DRAFT ROUND ROCK ISD GENERAL FUND - BUDGET COMPARISON $000s 2020 - 2021 2020 - 2021 2019 - 2020 2020 - 2021 Line # No ADA 1% ADA Budget Budget Growth Decline 12 13 EXPENSES 14 Salaries & Benefits: 15 Salaries & Benefits $ 333,481 $ 364,782 $ 364,782 $ 364,782 16 Teacher Retirement System - On-Behalf 21,155 21,421 21,421 21,421 17 Changes (19-20: New Positions, 20-21: Run Rate Adjustment) 7,041 (8,000) (8,000) (8,000) Compensation Changes - Overall 2% Raise ($6.8M), Market Adjustments ($1.9M), Credit for Years of Service ($1M), Guest 18 22,260 12,100 12,100 12,100 Educator (Increase $25; $1.5M), Bilingual Stipend (from $4,500 to $7,000; $0.4M), Buy Back Local Days ($0.5M) 19 Medical Insurance Increase 2,000 1,000 1,000 1,000 20 Mental Health Services 10,330 10,205 10,205 10,205 Total Salaries & Benefits $ 396,267 $ 401,508 $ 401,508 $ 401,508 21 22 23 ALLOCATIONS: 24 Campus and Library 6,301 6,443 6,443 6,443 Departments (includes Transition to In-House SROs during 20- 25 44,200 44,055 44,055 44,055 21 and Contracting of Some Bus Routes in 20-21) 26 Food Service (1,633) (1,851) (1,851) (1,851) 27 Strategic Plan ($500k), Innovation Initiatives ($150k) 1,200 650 650 650 Total Allocations $ 50,068 $ 49,297 $ 49,297 $ 49,297 28 29 Total Expenses $ 446,335 $ 450,805 $ 450,805 $ 450,805 30 31 Surplus / (Deficit) $ (7,358) $ (9,450) $ (12,027) $ (12,291) 32 33 Forecast Better Than Budget 18,000 10,000 10,000 10,000 34 Transfer to Capital Projects Fund (10,000) (5,000) (5,000) (5,000) 35 36 Additional State Funding from PV Audits (2016, 2017) 5,000 5,000 5,000 37 Beginning Fund Balance 217,922 218,564 218,564 218,564 Ending Fund Balance $ 218,564 $ 219,114 $ 216,537 $ 216,273 38 Ending Fund Balance (without Pay Raise and $ 218,564 $ 232,214 $ 229,637 $ 229,373 39 Medical Insurance Increase in 2020 - 21) 8

State Funding Scenarios for Round Rock ISD 2020 - 21 Budget 1% Decline in Growth No Growth ADA Total Cost of Tier 1 $ 385,359,764 $ 382,953,719 $ 379,841,708 Less: Local Taxes 363,585,426 363,585,426 363,585,426 Less: State ASF ($400 * Prior Year ADA) 19,401,200 19,401,200 19,401,200 State Share of Tier 1 $ 2,373,138 $ - $ - Tier 2 State Aid 11,059,545 10,855,512 10,591,614 CARES 3,000,000 3,000,000 3,000,000 Total State Share $ 35,833,883 $ 33,256,712 $ 32,992,814 9

Comparison of Starting Teacher Salaries 2019 - 2020 Peer Districts Over / (Under) Over / (Under) Rank District Salary Tax Rate RRISD RRISD 1 Humble $ 56,700 $ 7,400 $ 1.07 $ 0.10 2 Clear Creek 55,750 6,450 0.99 0.02 3 Klein 55,550 6,250 0.99 0.02 4 Conroe 55,500 6,200 0.99 0.02 5 Katy 55,200 5,900 1.05 0.08 6 Frisco 54,500 5,200 1.07 0.10 7 Lewisville 54,500 5,200 0.97 - 8 Plano 54,000 4,700 1.07 0.10 9 Richardson 54,000 4,700 1.07 0.10 10 Round Rock 49,300 - 0.97 - 1 0

Comparison of Starting Teacher Salaries 2019 - 2020 Local Districts Over / (Under) Over / (Under) Rank District Salary Tax Rate RRISD RRISD 1 Austin $ 50,251 $ 951 $ 1.01 $ 0.04 2 Leander 50,000 700 0.97 - 3 Pflugerville 50,000 700 0.99 0.02 4 Lake Travis 49,500 200 0.99 0.02 5 Round Rock 49,300 - 0.97 - 6 Eanes 49,288 (12) 0.99 0.02 7 Del Valle 49,000 (300) 0.97 - 8 Manor 48,780 (520) 0.97 - 9 Hutto 48,550 (750) 1.07 0.10 10 Georgetown 48,000 (1,300) 1.01 0.04 11 Hays 47,665 (1,635) 0.97 - 11

ESTIMATED Starting Teacher Salaries 2020 - 2021 Local Districts Over / Rank District Salary (Under) Comments RRISD 1 Pflugerville $ 51,500 $ 2,200 3% 2 Leander 51,000 1,700 Estimated 2% 3 Lake Travis 50,500 1,200 Estimated 2% 4 Eanes 50,288 988 Estimated 2% 5 Austin 50,251 951 Estimated 0% 6 Hutto 50,000 700 3% 7 Georgetown 49,500 200 Estimated 3% 8 Round Rock 49,300 - IF 0% 9 Del Valle 49,000 (300) Unknown 10 Manor 48,780 (520) Unknown 11 Hays 47,665 (1,635) Unknown 12

2021 – 22 Scenario with 5% Funding Decrease 1. Property values decrease $1B. 2. ADA increases 400. 3. Reduction of 5% in State and local tax funding levels. 4. One penny increase in tax rate ($6M). 5. No pay raise and no change in medical insurance contribution. 6. Open ES #35 ($4.5M) and pool ($.25M). 7. $7M reduction in staffing. 8. 5% reduction in department allocations. 13