Superintendents Proposed Budget Dr. Catherine Magouyrk - PowerPoint PPT Presentation

FY2017-2018 Superintendent’s Proposed Budget Dr. Catherine Magouyrk Superintendent February 14, 2017

FY 2017-2018 Proposed Budget Presentation Overview • Division Facts and Academic Progress • State and Local Funding History, Student Attendance, and Per Pupil Costs • FY 2017-2018 Proposed Budget • What Do the Final Numbers Mean for MCPS? • Upcoming Budget Meetings 2

2016-2017 Student Population American Indian or Alaska Native Two or more races Asian 1% 5% 4% Native Hawaiian or Pacific Islander Black 0.12% 11% White 17% Hispanic 63% Sept 30 Enrollment Elementary Intermediate Middle High 3 2016 7678 3258 1176 1052 2192

Budget Pressures Free & Reduced Lunch Percentage 100% 90% 80% 62% 70% 59% 60% 49 % 50% 40% 23% 30% 20% 10% 0% 2005/2006 2008/2009 2010/2011 2012/2013 2013/2014 2014/2015 2015/2016 Jan-17 Economically Disadvantaged 62% Special Education 12% English Speakers of Other Languages (ESOL) 42% 4

Division Level By Subject Increase 2012- 2013- 2014- 2015- Subject Area 2012- 2013 2014 2015 2016 2016 63 66 72 73 +10 English: Reading 65 70 72 72 +7 English: Writing History and Social 75 77 80 80 +5 Sciences 63 71 78 78 +15 Mathematics 74 74 74 73 -1 Science 5

FY 2017-2018 State Revenue Andy Hawkins Executive Director of Finance and Operations 6 February 14, 2017

Challenging State Revenue Forecast FY 2018 Projected FY 2018 Projected Prior to Release of Based on Release Percentage Governor's Budget of Governor's Decrease in FY 2017 Draft 3/16/16 Budget Decrease in Projected Estimated Revenue Approved Forecast Draft 12/21/16 Projected Revenue Revenue State Sales Tax Revenue $ 7,786,848 $ 8,068,382 $ 7,688,948 -$379,434 -4.93% Other State Revenue* $42,199,960 $ 44,216,928 $ 43,838,393 -$378,535 -0.86% Food Services State Revenue $ 102,640 $ 114,201 $ 111,262 -$2,939 -2.64% Total Projected State Revenue $ 50,089,448 $ 52,399,511 $ 51,638,603 -$760,908 -1.45% *$357,389 Compensation Supplement rescinded due to state revenue short fall 7

What’s Causing These Challenges? Fiscal Years Avg. Annual GF Growth 1990-1999 5.9% 2000-2008 5.7% 2009-2010 -5.0% 2011-2016 4.1% 2017 Intro Forecast 2.9% 2018 Intro Forecast 3.2% 8 8 8

What’s Causing These Challenges? • Tax Policy changes have reduced State Revenues by $2.0 Billion annually. Car Tax $950 million Sales Tax on Food $556 million Estate Tax Repeal $140 million Land Preservation $100 million Sales Tax on Data Centers $51 million All Others $203 million Total $2.0 Billion 9

What Effect Has This Had On State Public Education Funding? Nominal and Inflation- Adjusted (CPI $2005) $6,000 $5,459 $5,274 $4,804 $4,862 $5,028 $5,077 $5,265 $5,000 $4,868 $4,966 $5,000 $4,513 $4,546 $4,382 $4,692 $4,562 $4,084 $4,481 $4,404 $4,215 $4,000 $4,174 $4,129 $4,048 $4,059 $3,958 $3,942 $3,896 $3,810 $3,000 $2,000 $1,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

MCPS Per Pupil Funding By Source $9,000 $7,893 $8,000 $7,080 $6,870 $7,000 $6,139 $6,384 $6,125 $6,287 $6,265 $6,232 $5,885 $5,936 $5,977 $6,000 $5,618 $5,178 $5,182 $4,850 $4,910 $5,000 $4,321 $3,770 $4,037 $4,234 $4,171 $4,000 $3,556 $3,243 $3,000 $2,000 $1,000 11 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 City State Sales Federal FY17 data is projected

MCPS Enrollment Trend September 30 Enrollment Elementary Intermediate Middle High 2006 6,575 2,731 987 954 1,903 2007 6,474 2,653 922 949 1,950 2008 6,566 2,679 984 986 1,917 2009 6,864 2,783 1,057 992 2,032 2010 6,936 2,913 1,011 1,010 2,002 2011 7,104 3,022 1,015 1,032 2,035 2012 7,220 3,057 1,058 999 2,106 2013 7,076 2,976 1,040 991 2,069 2014 7,315 3,072 1,056 1,014 2,173 2015 7,575 3,284 1,110 1,022 2,159 2016 7,678 3,258 1,176 1,052 2,192 % Change 2006 - 2016 16.78% 19.30% 19.15% 10.27% 15.19% 12

Projected Enrollment Actual September 30 2016 SY2016/17 SY2017/18 SY2018/19 Difference Elementary 3,258 3,428 3,498 3,569 9.55% Intermediate 1,176 1,185 1,200 1,196 1.70% Middle 1,052 1,053 1,107 1,180 12.17% High 2,192 2,142 2,147 2,481 13.18% Total 7,678 7,808 7,952 8,426 9.74% Source: Citygate GIS 13

State Funding Increases Mainly Tied to VRS Rate Increases VRS Teacher Rates Needed Vs. Paid 20.00% 18.00% Rates Needed 16.00% 14.00% 12.00% 10.00% Rates Paid 8.00% 6.00% 4.00% 2.00% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 VRS Teacher Contributions Needed Vs. Paid ($ Mil.) $1,600,000,000 $1,400,000,000 $1,200,000,000 Contributions Needed $1,000,000,000 $800,000,000 Contributions Paid $600,000,000 $400,000,000 $200,000,000 14 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FY 2017-2018 Proposed Budget 15

Operating Fund Expenditures Capital Outlay Contingency Materials and 172,700 250,000 Supplies 0.18% 0.26% 4,310,852 2017-2018 4.40% Total Operating Fund Budget Other Charges* $97,889,176 3,054,917 3.12% Purchased Services 10,426,952 81.4% 10.65% Fringe Benefits Personnel and Salaries and 21,463,329 Wages Benefits 21.93% 58,210,426 59.47% 16 * Includes utilities, communications, and other misc. costs

FY 2017-2018 School Operating Fund Proposed Departmental Expenditures SUMMARY BY LOCATION AMOUNT PCT. School Base Costs 73,098,846 74.7% SPED & ESOL 6,541,996 6.7% Student Achievement 4,182,141 4.3% Information Technology Services 4,169,836 4.3% Transportation 3,929,357 4.0% Facilities & Maintenance 2,497,034 2.6% Health & Student Services 1,337,629 1.4% Human Resources 1,247,511 1.3% Financial & Purchasing Services 1,091,212 1.1% Board & Superintendent Services 882,901 0.9% Communications & Public Relations 310,712 0.3% Non-Department -1,399,999 -1.4% TOTAL 97,889,176 100.0% 17

FY 2017-2018 Proposed Budget All Operating Funds Food Total Operating Federal Service Operating Funding Source Fund Grant Fund Fund Funds City Funds $45,227,603 $45,227,603 State Funds $51,527,341 $111,262 $51,638,603 Federal Funds $3,638,626 $2,908,488 $6,547,114 Other Funding Sources $515,213 $945,950 $1,461,163 Subtotal - Estimated Revenue by Fund $97,270,157 $3,638,626 $3,965,700 $104,874,483 Proposed Use of Fund Balance $619,019 $194,963 $813,982 Total Estimated Revenue by Fund $97,889,176 $3,638,626 $4,160,663 $105,688,465 State Funds includes sales tax 18

FY 2017-2018 Proposed Budget Funding Sources Total Debt Capital Total Funding Source Operating Service Projects Budget - All Fund Fund Fund Funds City Funds* $45,227,603 $7,489,607 $3,400,000 $56,117,210 State Funds $51,638,603 $51,638,603 Federal Funds $6,547,114 $6,547,114 Other Funding Sources $1,461,163 $1,461,163 Use of Fund Balance $813,982 $813,982 Total Estimated $105,688,465 $7,489,607 $3,400,000 $116,578,072 *City Funds include $500,000 estimated city proffer revenue 19

Capital Improvement Plan FY 2018 Funding Sources City Transfer - Pay As You Go $3,400 Project Expenditures Division Wide $ 827 Division Wide Technology Upgrades $ 175 Division Wide School Bus Replacements $ 435 Division Wide School Bus Additions $ 217 Osbourn $2,047 Osbourn - Parking Lot Improvements $ 500 Main Gym Bleacher Replacement $ 357 Osbourn - HVAC 1984 Addition Roof Top Repl. $ 1,190 Metz $ 341 Metz - Auditorium Improvements $ 200 Metz - Hallway Flooring Replacement $ 141 Mayfield $ 120 Mayfield - Paint $ 120 20 Haydon $ 65 Haydon - Paint $65 Total MCPS Projects $3,400

What Do the Final Numbers Mean for MCPS? Dr. Catherine Magouyrk Superintendent 21 February 14, 2017

FY 2017-2018 Proposed Budget Levels School Operating Fund School Operating Level Description Explanation Fund Amount School / Dept Requests are submitted using $107,873,694 1 Request MUNIS Revised requests were reviewed with Principals and $99,620,669 2 School / Dept Final Leadership team and adjusted based on prioritized needs Superintendent adjustments to Superintendent Level 2 to prioritize and reduce $99,000,013 3 Request costs based on need. Superintendent Request was Superintendent $97,889,176 4 adjusted to fit within estimated Final resources School Board Based on School Board TBD 5 22 Approved approved adjustment

Superintendent's Benefit Priorities Budget Level 1 2 3 4 5 1% COLA Across Scale - $793,331    * * (Level 4 Funding not available) Teacher and support step increases (approx. 2%) = $1,210,968         2% of midpoint for administrative scale increases = $108,747 Retention/Longevity Plan - $158,913    * * (Level 4 Funding not available)     Tuition Reimbursement = $60,000 3 Additional early release days for teacher collaboration and  planning     VRS Proposed Rate changes = $1,264,966- Required 23 Provision for 8% increase in Health Insurance costs = $618,650     -Required