Superintendents 200910 Proposed Budget Recommendation

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Superintendents 2009-10 Proposed Budget
Recommendation

• April 14, 2009

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Framework for Budget Development

• Align resources to support Strategic Plan 2010
• Keep strong academic focus coupled with data
  driven decision making
• Recognize and plan for the impact of the economic
  environment and employ sound fiscal management
  respond to signals from state and local sources
  that funding may be reduced
• Acknowledge unprecedented uncertainty regarding
  expected funding levels from all sources
• State contrast in Governor and Senate budgets
  released
• County request for options for a 10 reduction
• Federal stimulus funding when, how much and
  with what rules, mixed message in guiding
  principles
• Pay for growth, new schools and to sustain
  current operations through budget reductions or
  redirections
• Pay for Strategic Plan 2010 initiatives through
  budget reductions or redirections
• Establish flexibility in the budget to allow for
  various reduction levels

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2009-10 Superintendents Proposed Budget
County 351,366,785 State
689,477,954 Federal
95,555,554 Other Local
15,843,636 Total Operating Budget 1,152,243,9
29 Capital Replacement
5,200,000 Child Nutrition
64,487,817 After School Enrichment Program
16,241,207 Total Proposed Budget
1,238,172,953
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Comparison to Prior Year
2009-10 Proposed Operating Budget
1,152,243,929 2008-09 Adopted Operating
Budget 1,194,709,778
Decrease (42,465,849)
Change (3.6) Operating
Budget only does not include Capital or
Enterprise Funds
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2009-10 Superintendents Proposed Budget

• SOURCES

Operating Budget
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2009-10 Superintendents Proposed Budget

• USES

Operating Budget
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2009-10 Proposed Budget by Area
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Budget Reductions and Redirections
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Budget Reductions and Redirections
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Budget Reductions and Redirections
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Budget Reductions and Redirections
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Factors Increasing the Budget

• County
  Total
• Salaries Benefits 4.7M
  21.0M
• Other Sustaining Operations
  1.8M 1.8M
• Growth 388 new students
  .6M 4.1M
• New Schools 4 Elementary, 2 Middle 6.3M
  7.8M
• Program Expansion New Initiatives
  2.0M 2.0M
• Total 15.4M
  36.7M

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Program Expansion and New Initiatives

• New Leaders for New Schools Program 252,433
• Magnet Program Expansion 652,174
• Performance Management 466,165
• Strategic Staffing 631,609
• 2,002,381

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Superintendents Recommendation for 2009-10
County Budget Request

• Does not include current year reversion to
  County of 5M

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Trends in Funding from the County

• Increase Increase
• Requested Received Total
• 2006-07 31,880,960 24,760,298 316,160,298
• 2007-08 30,373,910 25,206,487 341,366,785
• 2008-09 28,388,897 10,000,000 351,366,785
• 2009-10 -0- ??? 351,366,785

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Optional Budget Reduction Scenarios

• County requested that we identify options for a
  10 reduction
• Reductions in 2009-10 Proposed Budget 51.1
  million
• Potential Budget Reduction Options
• (Tiers 1-4) 35.1 million
• Total with Optional Budget Reductions 86.2
  million

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2009-10 Proposed County Budget Request
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Position Reductions Summary
Includes school-based positions budgeted in
Academic Services Division
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Federal Economic Stimulus Funding

• Anticipated funding from the American Recovery
  and Reinvestment Act of 2009 (ARRA) also known as
  the economic stimulus funding is not included
• Projected amounts are available for some areas
  but may be reduced for set asides, charter school
  allocations, etc. at the state level
• Stabilization funding - ??? allocation yet to
  be determined by the governor
• Total Stabilization funding for NC Education
  (K-12 through higher education) is 1.2 billion
  to be allocated over a two year period 2009-2011
• Potential conflict in four guiding principles
• Spend funds quickly to save and create jobs
• Improve student achievement through school
  improvement and reform
• Ensure transparency, reporting and accountability
• Invest one-time ARRA funds thoughtfully to
  minimize the funding cliff

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Federal Economic Stimulus Funding

• Federal government released initial guidance
  about how and when these funds can be used
• Still have many questions that require additional
  research and clarification such as
• Maintenance of effort requirements? State
  waivers?
• Supplement vs. supplant provisions?
• Additional reporting requirements for tracking
  expenditures?
• Excluding these dollars at this time given the
  high level of uncertainty - is the fiscally
  conservative approach and allows for the greatest
  flexibility when the funds and the final
  guidelines regarding their use are available

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2008-09 State Cash Flow Emergency

• Slow revenue collections have created a severe
  cash flow emergency for the state in the current
  fiscal year (which will end on June 30, 2009)
• As a result, the Governor has directed that we
  implement several measures to address the
  situation including
• Payments from state funds will only be approved
  for mandatory obligations. (i.e. payroll,
  utilities, debt service)
• No new purchase orders will be issued from state
  funds which will revert if unexpended. Purchase
  orders for goods and services that have been
  ordered but not received by April 16, 2009 must
  be cancelled.
• All travel requiring the expenditure of state
  funds shall be terminated for this fiscal year
  (unless it is required and involves direct
  classroom instruction).
• Vacant permanent or temporary positions except
  those for which commitments have been made prior
  to April 9, 2009 may not be filled. (Classroom
  teacher and principal vacancies can be filled if
  absolutely necessary.)
• No promotions, position reclassifications, or
  other salary adjustments may be made.
• Carry forward will be permitted only under
  extreme circumstances and if cash if available
  (noted we should not plan for any carry forward
  funds except those required by law).
• DPI will monitor transactions and independent
  auditors will audit for compliance with this
  directive

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Capital Replacement
2009-10 Proposed Budget

• Revenues 5,200,000
• Expenditures
• Building and Sites 4,950,000
• Furniture and Equipment 250,000
• Total Expenditures 5,200,000

• Historically funded from states Public School
  Capital Building Fund but since 2006-07 has been
  funded with County revenues
• Provides pay-as-you-go funding for systematic
  and scheduled repair and replacement of major
  assets

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Child Nutrition
2009-10 Proposed Budget

• Operating Revenues 23,577,314
• Operating Expenses (64,487,817)
• Operating Income (Loss)
  (40,910,503)
• Non-operating Revenues
• US Government Subsidy/Commodities
  38,442,157 Interest
  1,951,031
• Transfer from General Fund 516,815
• Total Non-operating Revenues
  40,910,503
• Net Income -0-

• Child Nutrition serves more than 34,000
  breakfasts and 78,000 lunches per day
• Meal costs has not increased since 2001-2002

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After School Enrichment Program
2009-10 Proposed Budget

• Operating Revenues 16,171,207
• Operating Expenses (16,241,207)
• Operating Income (Loss)
  (70,000)
• Non-operating Revenues Interest income
  70,000
• Net Income -0-

• Includes price increase for summer camp from 110
  to 115 per week
• Includes price increase for winter and spring
  break from 18.50 to 20 per day

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Framework for Budget Development

• Align resources to support Strategic Plan 2010
• Keep strong academic focus coupled with data
  driven decision making
• Recognize and plan for the impact of the economic
  environment and employ sound fiscal management
  respond to signals from state and local sources
  that funding may be reduced
• Acknowledge unprecedented uncertainty regarding
  expected funding levels from all sources
• State contrast in Governor and Senate budgets
  released
• County request for options for a 10 reduction
• Federal stimulus funding when, how much and
  with what rules, mixed message in guiding
  principles
• Pay for growth, new schools and to sustain
  current operations through budget reductions or
  redirections
• Pay for Strategic Plan 2010 initiatives through
  budget reductions or redirections
• Establish flexibility in the budget to allow for
  various reduction levels

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Conclusion

• Superintendents closing remarks
• Q A

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