2015/2016 budget development update...2005/07/15 · meeting may 2015 •may 7 – board study...
TRANSCRIPT
Board of Education May 7, 2015
2015/2016 Budget
Development Update
Agenda
FY 2014/2015 Forecast
2015 Efficiencies
FY 2015/2016 Updated Forecasts
Board Direction for the Budget
Timeline
General Fund Projection FY 2015
General Fund Projection FY 2015
2014/2015
Revised Budget Projections
Estimated
Budget
Revenue $ 657,142,100 $ 1,474,100 $ 658,616,200
Expenditures $ 596,619,500 $ (10,690,825) $ 585,928,675
Transfers $ 57,613,400 $ (1,346,178) $ 56,267,222
Revenues Over Expenditures $ 2,909,200 $ 16,420,303
Total Reserves $ 64,207,100 $ 77,718,186
Unassigned $ 36,088,483 $ 49,920,286
Percent of Unassigned
to Expenditures 6.05% 8.52%
$1.4M ‒ State share increased
$1.3M ‒ Transportation fuel savings
$10M ‒ Vacancy savings
$5.5M ‒ Retirement/turnover additional savings (used for Jefferson/Alameda plan)
FY 2015
General Fund Change Details
$5M ‒ One-time retention bonus for employees returning in August
$2M ‒ Additional funds to reserves to maintain unassigned at 6%
$4M ‒ One-time infusion to school carry forwards, approximately $50 per student
$2.5M ‒ Maximum one-time transfer to facilities
FY 2015
Staff Proposed Use of Underspend
2015 Efficiencies
Central departments continue to focus on efficiency
Priority Based Budgeting results in the summer of 2015
Prior year reductions not reinstated
Over $24M in unfunded identified needs for FY 2016
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Financial Services
► Additional support staff, unfunded mandates, enhanced contract and applicant tools ~ $492K
Insurance Reserve
► Premium savings ~ $250K
Technology
► Server changes, additional support for schools and school partnering ~ $575K
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Transportation
► Bulk purchasing, additional costs for school configuration changes, efficiencies for transporting special needs students ~ $157K
Facilities
► Additional training and resources for staff, grants, bulk purchasing ~$619K
Construction
► Expansion of project management modules ~$25K
Education Research and Design
► Permanent Educator Effectiveness, Choice Programming and Data Privacy and Reporting departments ~ $1.388M
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FY 2016 Budget
School Finance Act complete
► 2.8% inflation plus growth
► Buy down of the negative factor of $25M statewide
► Additional at-risk funding, outside of the school finance formula, $5M statewide
May Updated Financial Forecast
Amounts in millions Ongoing
School Finance Act $22
Pass through to Charters $(2.5)
Pass through to Child Care $(0.2)
General Fund $19.3
Jeffco’s Revenue Estimates
Jeffco’s Per Pupil Revenue
7,070
6,637
6,309 6,317
6,482
6,850
7,109 7,109
$5,000
$6,000
$7,000
$8,000
**2015/2016 – CDE has based Total Program and Per Pupil funding numbers on projected enrollment and adoption of the School Finance Act. **2016/2017 – Assumes the negative factor remains at the 2015/2016 level of $855M, and enrollment stays flat compared to 2015/2016.
2015/2016 Budget Development
Community Engagement
December
Board approved the community survey tool and plan for budget forums
January
Board approved final survey and forum documents.
Forums were held end of January
February
Online Budget Survey (3 weeks)
March
SPAC/SAC, district leadership and Cabinet budget priorities presented to Board
Compensation and facilities at the top of the priorities for all except the SPAC/SAC report
► SPAC/SAC asked for greater school autonomy resources
COMMUNITY AND STAFF ENGAGEMENT
Summary of Findings - All
COMMUNITY AND STAFF ENGAGEMENT
Cabinet/District Leadership
Compensation On-going Costs
PERA increase - Supplemental Amortization Equalization Disbursement (SAED) inc .50% $ 2,025,000
Affordable Care Act (ACA) additional benefits $ 3,000,000
1% Compensation increase $ 5,200,000
Compensation increase for targeted employees $ 1,152,000
Substitute teacher pay changes $ 763,000
Subtotal employee compensation package increase $ 12,140,000
Other Employer Costs
PERA increase - Amortization Equalization Disbursement (AED) inc .30% $ 1,215,000
Retirement and turnover savings $ (1,500,000)
Increase capital transfer for facility needs $ 3,000,000
Increase SBB funding for neighborhood schools. $27 per student. $ 2,014,000
Increase charter mill levy override equalization. $27 per student. Total $7,305,000. $ 186,000
Increased salary accrual, building utilities $ 2,000,000
General Fund transfers increases for other funds PERA increases, inflation $ 600,000
SBB benefit additions for added staff $ 700,000
Subtotal other employer costs $ 8,215,000
Net Proposed Increases $ 20,355,000
REVENUE ONGOING School Finance Act $19,300,000 Specific Ownership Tax 1,000,000 At-risk funding outside of the school finance formula 350,000 Move Kindergarten to the General Fund from the Child Care Fund 5,000,000 Investment Earnings, Fees and Other 200,000
Total Change in Revenue $25,850,000
EXPENDITURES Legislated PERA AED 0.3% 1,215,000 Legislated PERA SAED 0.5% 2,025,000 SBB Staff Additions Benefit Portion 700,000
Estimated Retirement and Turnover Savings (1,500,000) Affordable Care Act 3,000,000 Move Kindergarten to the General Fund 5,000,000 Salary Accruals, Utilities 2,000,000 At Risk Funding to Schools 350,000 Spend down of school carry forward 3,000,000 Increase in GF Transfers (Capital Reserve, Transportation, Insurance Reserve) 600,000 General Increase Placeholder TBD 12,460,000
Total Change in Expenditures
$28,850,000
JEFFCO’S
2015/2016 Assumptions
General Fund Projection FY 2016
JEFFCO’S GENERAL FUND
Reserves
2015/2016 BUDGET
Board Placeholders
Enter Placeholders on Interactive Projections Worksheet with Budget Team
Apr 2015
•Month of April -
• Develop Proposed Budget for May 26 Board of Education (BOE) Meeting
May 2015
•May 7 – Board Study Session
• Budget Update, Board Direction
•May 26 – Board Regular Meeting
• Presentation of Proposed Budget
• 1st Public Hearing (will include a revised forecast if any legislation is final.)
• Proposed budget must be presented to the BOE no later than June 1 per C.R.S. 22-44-108(1).
• BOE Final Revisions to Proposed Budget
Jun 2015
• June 11 – Board Regular Meeting
• 2nd Public Hearing; and
• Budget Adoption
2015/2016 Budget Development
Timeline
2015/2016 BUDGET DEVELOPMENT
Timeline
BOE meeting May 26, 2015
First public hearing to present the 2015/2016 Proposed Budget including Projection #3
BOE direction on any revisions to be incorporated into the adopted budget
BOE meeting June 11, 2015
Second public hearing for 2015/2016 budget adoption