Saint Louis Public Schools

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Saint Louis Public Schools 2008/09 Budget
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RSMo 67.010Annual Budget Compliance Requirements

• The annual budget presents a complete financial
  plan and includes the following
• Important features and major changes from the
  preceding year
• Projected revenues and expenditures from all
  sources with a comparative statement for the two
  preceding years, itemized by year, fund, source
  and activity
• Interest, amortization and redemption amounts due
  on debt funds
• A general budget summary

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RSMo 67.010 Annual Budget Compliance Requirements

• In no event shall the total proposed
  expenditures from any fund exceed the estimated
  revenues to be received plus any unencumbered
  balance or less any deficit estimated for the
  beginning of the budget year..

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Fiscal Year 2008-09 Executive Summary

• The Fiscal Year 2009 budget is marked with
  several challenges and key issues
• Projected revenue 320.0 M
• Local, state, and federal funding down 14.9 M
• Projected student enrollment decline of 3,000
• Budget gap 24.9M and proposed resolutions
• Economic driven concerns
• Health benefits 18.5
• Utilities 11
• Foreclosures
• Unemployment Rate
• Federal Fund Rate

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Fiscal Year 2008-09 Executive Summary

• The Fiscal Year 2009 budget is marked with
  several challenges and key issues
• Prudent and sustained cost cutting/containment
  initiatives
• Long range facility planning
• Reallocation of resources
• Revenue increase options
• Tax levy increase ? 3 levy increase generates
  1M
• Bond issue ? No Tax Increase Bond Issue
• Flexible use of DESEG funds

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FY 2008-09 Revenue Assumptions

• 4.4M decline in local revenue
• Property taxes
• Prop C
• Interest
• Tuition
• 7.3M decline in state basic formula funding
• 2.9M decline in federal funding
• Medicaid funding loss

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FY 2008-09 Expenditure Methodology

• Used FY08 projected expenditures, 335M, as
  baseline for FY08-09 budget
• FY08 projected expenditures of 335 includes
  additional budget cuts at the Central Office of
  4M
• Build-up of additional expenditures for
• Virtual Schools
• Homeless Program
• Rising utility prices
• Medical benefits increase
• Principals salary increase
• Fill 3 key administrative positions
• Workers Compensation Deficit Coverage

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FY 2008-09 Expenditure Assumptions

• Defer DESEG loan payment
• Eliminate all non-essential vacant positions
• Staffing additions funded by reducing other
  positions
• Previously agreed upon salary increases only
  (Principals)
• Charter enrollment up only 5
• Savings from school reconfigurations (1M)
• Closing of Lyon, Mitchell, Gundlach

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FY 2008-09 Enrollment Projections

• FY09 budget based 27,062 students
• Charter school enrollment increase of 5 (8110)
• SLPS Charter VICC
• FY09 (projected) 27,062 8,110 6,912
• FY08 30,134 7,726 7,597
• FY07 32,694 5,405 8,027
• FY06 35,683 4,514 8,257
• FY05 36,954 4,353 9,598
• FY04 39,974 3,635 10,093
• FY03 39,361 3,046 10,649

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FY2008-09 Budget HighlightsStudent / Staffing
Information

• FY07 FY08 FY09
  
• Enrollment 32,694 30,134 27,062
• FTE Staffing
• Teachers 2,457 2,183 ---
• Total 4,412 3,985 3,643
• GOB Revenues 353M 335M
  320M
• assumes staff reallocation used to cover budget
  gap

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FY 2008-09Special Education

• FY07-08 FY08-09
• Special Education Budget 65.2
  M 67.3 M
• as a -age of total District Budget 13.3
  14.9
• Special Education Enrollment 5,333 5,000

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GOB Revenue Enrollment Trend(Data used from
previous slide)
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Fiscal Year 2008-09Academic Plan

• Align limited resources with academic
  initiatives
• Improve instruction in an efficient and cost
  effective manner
• Balance expenditures with shrinking revenues
• Implement student achievement drivers

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Academic Expansion Opportunities

• Representative of Academics to Speak

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Academic Expansion OpportunitiesStudent
Achievement Drivers

• Gifted Education
• Add 10th grade to McKinley Classical Leadership
  Academy
• Increased enrollment at Kennard Classical Junior
  Academy
• Advanced Placement Program
• Increase curriculum rigor and relevance
• Earn college credit in high school
• Increase scholarship opportunities
• Early Childhood Education
• Meda P. Washington
• Increase program capacity
• Attract non-public school student s

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Academic Expansion OpportunitiesStudent
Achievement Drivers

• Virtual Schools
• FY08 enrollment 170 part-time, 40 full-time
• Attract charter and private school students
• Expand to all grade levels, K-12
• Expand course offerings
• Dropout Recovery Program (Turner Branch)
• Over 4000 SLPS dropouts
• Consider Middle College with dual high school
  diploma associates degree
• Partner with Community Colleges

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Academic Expansion OpportunitiesStudent
Achievement Drivers

• Big Picture Alternative Education Program
• FY08 enrollment 190 in 1st - 10th
• Add 11th grade
• Enrollment increase
• Other Programs/Opportunities
• Expand ESOL program
• Expand use of instructional coordinators
• Enhance staff professional development
• Investigate therapeutic classrooms

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FY2008-09 Budget HighlightsRevenues Going
Forward (M)

• FY07-08 General Operating Revenues 335 M
• FY08-09 Projected Revenues
  320 M
• FY 08-09 Revenue Gap 15 M
• Projected Charter School Revenue 61.4 M

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FY2008-09 Budget HighlightsAdditional 08-09
Expenditures (M)

• FY08-09 Projected Revenue Gap
  15.0 M
• FY08-09 Expenditures Above FY07-08
• Academic Initiatives 1.0 M
• Homeless Program 0.6
• Increase, utility prices 1.0
  Increase, medical benefits 5.2
  Principals salary increase 1.1
• Fill 3 key administrative positions 0.6
  
• Workers Compensation Deficit Coverage
  0.4
• Additional FY08-09 Expenditures
  9.9 M
• TOTAL FY08-09 Budget Gap 24.9 M

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How Could We Close the Gap?

• Staffing Realignments
• Attrition/Retirement 7.8 M
• Other Realignments 17.7 M
• Long Range Facility Planning
• Average annual cost per school 0.4 M
• 25 schools _at_ lt 60 capacity 10.0 M
• Consider employee health care benefit
  participation
• 3,643 employees X 300/year 1.1 M
• 3,643 employees X 600/year 2.2 M
• 3,643 employees X 900/year 3.3 M

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How Could We Close the Gap?

• Free-and-Reduced meal participation
• 100 student participation generates additional
  4M
• Increase student attendance rate
• One missed day per student costs gt20
• 1 increase in student attendance rate will
  generate 1.5M
• Non-payroll reductions
• Investigate refinancing options and funding for
  capital needs
• Reduce GOB burden with other funding programs

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Budget Gap Revenue Opportunities

• Resolution with Charter Payment Calculation (
  10M)
• Increase local revenue (increase tax rate)
• Every .03 increase generates 1.0 M
• FY09 Governor budget increase recommendations
  (4.5M)
• State Foundation Formula
• Proposition C
• Parents as Teachers
• Virtual School (MoVIP)
• eMINTS classroom technology
• Early Childhood Special Education
• Special Education High Needs

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Other Considerations

• DESE payment negotiations
• Basic Formula
• Transportation
• DESEG loan forgiveness and settlement
  flexibility
• Rule of 80 vs. Rule of 85

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Concerns

• Funding Equity versus Charter Schools
• 2nd preceding year student count
• Desegregation sales tax
• Prop C
• Categorical payments
• Exceptional pupil aid
• Gifted education
• Remedial reading education

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Concerns

• Voluntary Inter-district Choice Corporation
  (VICC)
• 5M Special Education
• Tax Increment Financing (TIF)
• Transportation Reimbursement
• Regular
• Magnet
• Homeless
• No ADA for Pre-School

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Concerns

• Organizational Restructuring
• Qualified Staff
• Critical Positions
• Employee Morale
• Aging Infrastructure
• Utility costs/usage spikes
• Necessary maintenance and repairs
• Community Support
• School closings
• Accreditation

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Concerns

• Declining Enrollment
• Declining revenue
• Fixed costs
• Unfunded mandates
• Funding reserves
• Deficit spending
• Desegregation agreement standards

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FY 2008 2009PROJECTED TOTAL DISTRICT REVENUE
(ALL FUNDS)( IN MILLIONS)
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Fiscal Year 2009-10 Outlook

• Projected student enrollment of 24,748
• Down an additional 2,300
• Projected revenue of 306.9M
• Down an additional 13.3M
• Additional charter enrollment
• KIPP 09

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Fiscal Year 2008/09 Budget Book Published
April 2008
SAINT LOUIS
PUBLIC SCHOOLS