4.01 - 2011-12 budget recommendation

8/8/2019 4.01 - 2011-12 Budget Recommendation

http://slidepdf.com/reader/full/401-2011-12-budget-recommendation 1/29

Student‐Based Budget Overview & 2011‐12 Budget

Recommendations

January 18,

2010



Strategic Management of Financial Resources

Strategy 1 – Ensure Fiscal Stability

Strategy

2

– Maximize

Financial

Resources Strategy 3 – Align Resources with Goals

Strategy 4 – Increase Transparency

Empowerment and Responsibility

Linkage to Denver Plan

1/18/11 2



• DPS Financial Status

•

2010‐

11

Amended

Budget• State Financial Status

• Budget Recommendations for 2011‐12

–

Key Budget

Assumptions

– Financial Goals

– Student Based Budgeting (SBB)

– Budget recommendations for schools, programs and support services

• Next Steps & Actions

31/18/11

Contents



FY2010‐11 Budget Reduction of 6% in state funding; $36 million to DPS

Expecting an additional rescission of approximately 0.7% ($4M)

State‐wide

enrollment

and

at

‐risk

student

growth

exceeded

funding

projections

Federal funding includes use of non‐recurring ARRA funds and Ed Jobs funding in

addition to normal Title funding, which mitigated a significant reduction.

Denver Preschool Program (DPP) funding reduced by over 35% ($3 million)

Enrollment growth

of

2,100

students

helps

maximize

available

state

funding

to

DPS

Fund Balance Significantly increased beginning general fund balance due to lower pension interest

costs, successful cost management initiatives and lower‐than‐forecasted state

funding reductions in FY09‐10.

$2.5M allocated in September for additional “class‐size relief” teaching positions.

DPS Financial Status

1/18/11 4



Beginning Balance Adjustments – The Adopted Budget included estimates of the July 1, 2010 beginning balance, whereas the Amended budget includes the

actual July 1, 2010 beginning balance as reflected in the 2009‐2010

Comprehensive Annual Financial Report.

School Finance Act formula funding – Changes to revenue and expenditures as

a result of the actual October 2010 pupil count and the updated state estimate

for the

per

pupil

funding

amount.

District Funded Pupil Count increasing to 74,422 from 72,115 (based on October 1, 2010

count). Funded pupil count is K‐12 students, with Kindergarten funded at .58

2010‐11 Amended Budget

1/18/11 5



2010‐11 General Fund Recurring Budget Per Student Sources and Uses of Funds

6

94% of

recurring

fund

budget

used

directly or in direct support of

schools

School support includes centrally‐

budgeted direct

school

services:

Student Literacy/School Programs

includes ELL Programs, 9th Grade

Academies, Credit Recovery, Gifted &

Talented, Library & Textbook

purchases,…

Student Services

includes

Special

Education, Psychologists, Social

Workers & Nurses

Other includes Security & Technology

Central support includes cross‐

district organizations

&

services

including:

Teaching & Learning

Assessment & Research

Community Engagement

IT, Budgeting,

Accounting,

Legal,

Human Resources & Payroll

Notes:

1) Based on

ECE

‐12

October

Count

submission

of

78,339

2) Source ‐ Fiscal Year 2010‐2011 Amended Budget

1/18/11



Projected state revenue shortfall in FY11‐12 of $1.1B

Governor Ritter presented FY12 budget showing near flat funding for K‐12:

Enrollment and at‐risk student growth projections below 2010‐11 actual growth

No assumed

reduction

in

local

share

(which

would

increase

state

equalization

requirements),

despite projection in reduction of statewide Assessed Valuation of nearly 7%.

Governor Hickenlooper expected to retain budget proposal with minor

modifications; some legislative changes likely.

Expiration of

Federal

stimulus

funds

for

Title

programs

(approximately

$20

million used in FY10‐11 budget)

Next Steps

Governor’s budget proposal

Legislative actions

March 20th revenue forecast

State & K‐12 Financial Status

1/18/11 7



Projecting an increase in enrollment of nearly 1,700 students

Projecting net, apples to apples state funding reduction

(accounting for projected enrollment increase) of $18M (3%).

Gross decrease less because of increase in projected enrollment.

Federal program funding currently expected to be flat:

Dependent upon funding for ESEA, and Denver census poverty rate (not

expected to be announced until April)

ARRA funding no longer available

Increase in pension contributions (0.9%), both employee and

district (AED

&

SAED),

per

statute.

FY11‐12 Budget Assumptions

1/18/11 8



Financial Goals for FY11‐12

Maximize resources available to the classroom, and provide increased

autonomy to schools to use resources to best meet their students’ needs

Align budget to Denver Plan goals

fund targeted

programs

critical

to

advancing

student

achievement

priorities

provide support for neediest students

Continue to focus on enrollment growth, providing attractive program options

to families

and

available

seat

capacity

where

needed

Align cost structure to funding realities Maintain compensation levels in‐line with revenue expectations

Increase quality, customer service and efficiency of support services: Implement cost efficiencies in support service delivery areas such as transportation, facilities

and IT

Manage pension financing and other operational costs

Utilize GOB funding to improve facility efficiency and deliver needed capital improvements

Pursue external funding sources for district priorities

1/18/11



External Funding Success in

2009 & 2010

I3‐

$30.1 million

Federal funds ‐ $25.1 million

Collective private match ‐ $5.0 million

1003g TIG ‐ $14.9 million

Bill and

Melinda

Gates

Foundation

‐$10.0

million

Michael and Susan Dell Foundation ‐ $8.6 million

Teacher Quality Partnership (TQP) ‐ $8.2 million

Athletics and Activities Grant ‐ $3.3 million

Early Reading

First

‐$2.9

million

Title V – Charter School Startup ‐ $2.5 million

Janus ‐ $2.4 million

21st Century ‐ $2.0 million

Colorado Health

Foundation

‐$1.2

million

The Eli and Edythe Broad Foundation ‐ $1.0 million

1/18/11



To increase funding for schools and key priorities, while maintaining fiscal

stability, we recommend making $10 million of support services budget cuts

and utilizing $10 million in savings from the previous two years.

Projected FY10‐11 end‐of ‐year General Fund balance is $90 million; use of $10M

would reduce this to $80 million.

1/18/11 Denver Public Schools 11

FY11‐12 Budget

Recommendations – Summary

Budget Assumption Amount (in millions)

Budget Cuts to Support Services ($10.0)

Increase Per Student School Funding through SBB $10.5

Increase Funding

for

Highest

Priorities $8.0

Use of Savings ($10.0)



2011‐12 General Fund Recurring Budget Per Student Sources and Uses of Funds

12

95% of

recurring

fund

budget

used

directly or in direct support of

schools.

School direct funding projected to

increase by

2.3%

($131)

per

student from 10‐11, and now

accounts for 70% of recurring

General Fund revenues.

School support, including targeted

programs, is projected to increase

by 1.2% ($25) per student from 10‐

11, and remains flat at 25% of

recurring General Fund revenues.

Central support

is

projected

to

decrease by 9.4% ($47) per

student from 10‐11, and declines

to 5% of recurring General Fund

revenues. Notes:

1) Based on

ECE

‐12

population

estimation

of

80,051

2) Source ‐ Fiscal Year 2011‐2012 Recommended Budget Plan

3) Budgeted Revenue includes one time use of General Fund

reserves1/18/11



SBB Improvement – Increasing

School Budget Flexibility

13

63%

68%69% 70%

30%

26%25% 25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

08‐09 Adopted 09‐10 Adopted 10‐11 Amended 11‐12 Proposed

School Direct & School Support as a Percent of Annual General Fund

Operating Budget

School % Of Total GF and ML School Support % Of Total GF and ML

1/18/11



Reduce support services by $10 million (approximately 5%), while

improving efficiencies and trying to maintain service levels.

Operations Support

Services

($5

million)

Primarily Transportation, Facilities & IT

Central Support Services ($0.3 million)

Primarily OSRI,

Legal

Academic Support Services:

Elementary Education & Student Services ($3.5 million)

CAO

support

services

($1.2

million,

including

Title

funds)

1/18/11 14

FY11‐12 Budget

Recommendations – Budget Cuts



Student Based Budgeting (SBB)

Overview

SBB is a budgeting approach where dollars follow students

directly to their schools where decisions can be made on how

to best serve those students.

First implemented at DPS for 2007‐08 budget year;

continuously being refined to increase buying power at

schools:

SBB empowers site‐based management and enhances the flexibility of

resource utilization by schools.

Provides transparency of the dollars allocated to schools.

Provides

weighted (differentiated)

funding

based

upon

the

costs

to

serve certain categories of students such as:

Special needs students

Low‐income students

Gifted and

talented

students

151/18/11



SBB FY11‐12 Recommended

Improvements

Increase base SBB funding for all students

Provide FRL weighted funding for all Reduced Price Lunch students

Increase funding amount for FRL students

Provide a more

transparent

per

student

subsidy

to

support

new

Alternative

programs which have a higher cost to serve their students

Increase dollars available for site‐level decisions:

Increase flexibility in meeting staffing requirements for Mild Moderate students and

Student Service days

A more streamlined and consistent student based formula:

Provide increased transparency and understanding of the SBB model

Allow funds to appropriately follow the student population

Increase ability to forecast and plan for budget changes at the school site

Improve non‐SBB direct funding process to allow for strategic allocation of additional

resources outside the SBB model

161/18/11



FY11‐12 Budget

Recommendations ‐ SBB

Increase SBB funding by $10.5 million (net of enrollment increases)

Increase SBB Base funding to all schools by 2%

1% to cover increased teacher salary costs and an additional 1% increase

From $3,854/student adjusted to $3,931/student

Provide Free/Reduced (FRL) weighted funding for all students

“Reduced” level students now receive weighted funding at same levels as “Free”

Kindergarten FRL students to receive weighted funding at 100% vs. 50%

Increase FRL funding per student by $25 (to $461‐$496/student)

Increase Gifted & Talented student funding by $25/student (to $120/student)

Provide additional funding for new Multiple Pathway Centers (MPCs)

Establish targeted

per

student

incentive

for

SPF

growth

and

high

achievement

171/18/11



FY11‐12 Budget

Recommendations ‐ SBB

Increase SBB funding available for site‐level decisions

Reallocate $29 million in funding to less‐restrictive allocations

Increase

dollars

available

for

site‐

level

decisions

– focus

on

accountability

rather than control

Increase flexibility in meeting staffing requirements for Mild Moderate students and Student

Service days (Psych, Social Worker, Nurse)

Dollars can support varying levels of need rather than focusing on only those identified with

an IEP

Schools will be able to implement other staffing options such as contracted services

Student Services continues to have oversight and will work collaboratively to ensure

appropriate services are being provided

Continues to

move

our

funding

model

to

a more

student

‐based

formula

as

opposed to the RAM methodology

Eliminates stair‐step effect present in Mild Moderate and PSN allocations whereby

adding/losing a single student causes the gain (loss) of a staffing allocation

181/18/11



FY11‐12 Budget Recommendations

– Summary Breakdown of SBB Changes

Increase SBB Base per pupil by 2% after impact of all other changes ($4.7

million)

Increase SBB weights for FRL students by:

Increasing kinder

weight

to

1.0

from

.5

($1.1

million)

Funding students eligible for reduced lunch at the same level previously allocated to free

lunch students only ($3.7 million)

Add an additional $25 per GT student ($111,000)

Implement a performance

allocation

to

incentivize

growth

and

SPF

performance ($1 million)

191/18/11



SBB Formula Changes

SBB Base – Several staffing‐based allocations have been modified in order to

fund the student rather than a purchase to be made. Several components of

those staffing allocations funded all students. Where applicable, those

dollars will

be

added

to

the

Base.

In

addition,

a 2%

increase

to

the

base

is

being recommended.

Current (2010 ‐11): Base ranges depending on grade level and hurdle effect.

New (2011

‐12):

SBB Base will be a standardized amount across all school types

Supplemental Base funding will be allocated to schools with center programs

1/17/2011 20



SBB Formula Changes

Free Lunch Funds – The Free Lunch allocation was previously made available only

to students eligible for FREE lunch. The change allows REDUCED lunch students

to also receive this funding. Additionally, since 95% of Kindergarten students

attend

full‐

day

programs,

provide

FRL

Kindergarten

funding

at

1.0

FTE

(vs.

previously at .5 FTE). The recommended increase provides additional dollars in

direct support of our neediest population.

Current

(2010 ‐

11):

Funding for Free Lunch Students only in (grades 1‐12)

Secondary schools receive a slightly higher per pupil than elementary schools

Per Student amount varies due to hurdle effect

New

(2011‐

12): Reallocate

to

fund

Free

AND

REDUCED Funding for Free AND REDUCED Lunch students

Fund Kindergarten students at 100%

Secondary per pupil still higher then elementary

Increase funding per student by $25

1/18/11 21



SBB Formula Changes

Student Service

Days

Allocation

(Psychologist,

Social

Worker

and

Nurse)

– SBB

is

meant to fund students not specific purchases. The recalculation allows the dollars

to follow the student and increases site‐level control over staffing decisions.

Current (2010

‐11):

Allocation

made

up

of

3 components

– Required

minimum

staffing levels

$ for every student

$ for Free Lunch Students

$ for

Center

Programs

New (2011‐12): Eliminate the specific student service days staffing allocation –

Recommended staffing ratio:

Split funding into its component parts and allocate based on student type

Add

dollars

for

every

student

to

base Add dollars for Free Lunch students to Free AND REDUCED Lunch Supplemental Funds Allocation

Add center program dollars to supplemental base funding to support schools with these

classrooms

Schools able to implement other staffing options such as contracted services

Student Services

will

have

oversight

to

ensure

appropriate

staffing

levels

Targeted funding pool to meet high Student Services needs of individual schools1/18/11 22



SBB Formula Changes

Mild Moderate ‐ The dollars now directly flow to the intended student

population with discretion over the level of staffing.

Current

(2010 ‐

11):

Allocation

made

up

of

2

components $ for Free/Reduced Lunch Students

$ for Non‐Free/Non‐Reduced Lunch Students

Subsidies provided to schools with inadequate funding to meet FTE minimum ratio

New (2011‐12): Eliminate the specific Mild Moderate staffing allocation

Split funding into its component parts and allocate based on student type

Combine Free/Reduced Lunch dollars with Free Lunch Supplemental funding to fund

Reduced Lunch students at the same level as well as K at 100% vs. 50%

$ for Non‐Free/Non‐Reduced Lunch Students ($223/student) – added to base funding

for ALL K‐12

(K=.50)

Allocation would be flexible, but subject to Student Services approval of appropriate service

levels for Mild Moderate students

Subsidies would not be provided to schools within SBB

Establish a Student Services High Needs Fund (similar to class size relief) to address specific

issues in

funding

for

schools

with

higher

than

average

Mild

Moderate

populations

1/18/11 23



SBB Formula Changes

Gifted and Talented ‐ The change to Gifted and Talented allows for more

autonomy and over dollars directly supporting the needs of our gifted

learners.

Current: .25 FTE Equivalent + $95 per GT student (through grade 8)

Per Student amount varies due to hurdle effect

New: .25 FTE Equivalent + $120 per GT student

Eliminate hurdle

to

allocate

additional

dollars

to

all GT

students

(through

grade

8)

Increase to SBB of approximately $111,000

1/17/2011 Denver Public Schools Internal Use Only 24



SBB Formula Changes

Targeted Interventions

– As

in

previous

years,

$100,000

is

allocated

to

Accredited

on Probation schools on the SPF for targeted programs to drive student

achievement. New for FY11‐12, a performance allocation will be awarded to

schools in the Distinguished status and to schools gaining in SPF rankings.

Current (2010 ‐11): $100,000 allocated to the SPF “red” schools

Not currently allocated to schools in SPF categories other than “red”

New (2011‐12):

Maintain $100,000

Targeted

Interventions

allocation

for

“RED”

schools

only

Implement a Performance incentive allocation for SPF growth

Per Student Allocations:

$100 per student for growth into the “Accredited on Priority Watch” category

$105 per

student

for

growth

into

the

“Accredited

on

Watch”

category

$110 per student for growth into the “Meets Expectations” category

$115 per student for growth into the “Distinguished” category

$65 per student to schools maintaining “BLUE” status – allocated annually if the school

maintains distinguished status

Increase to

SBB

of

approximately

$1

million

1/18/11 25

FY11 12 B d R d i



FY11‐12 Budget Recommendations

– Targeted Programs

26

Increase Targeted

Program

funding

by

$8

million

for

initiatives

critical to advancing Denver Plan priorities

Educator Effectiveness – provide funding for Peer Observers ($3.8 million)

English Language

Acquisition

– provide

funding

to

continue

ARRA

‐funded

ELA

summer

academy (move professional development expense for ELA educators to GF) ($0.6

million)

Early Childhood Education – backfill funding losses from local sources to maintain

current level

of

preschool

classes

($0.8

million)

Post‐Secondary Readiness

Maintain funding (ARRA) for Credit Recovery/APEX and Student Engagement Centers ($1.0

million)

Provide matching

funding

for

Athletics

&

Activities

expansion

(2010

grant)

($0.5

million)

Parent and Community Engagement

Provide funding to replace lost grant funding for Parent Engagement ($1 million)

Increase funding for Multi‐Cultural Outreach ($0.2 million)

1/18/11



October November December January February March April May

FY11‐12 Budget Timeline

Planning PreparationSchool & Department

Level Budget

Development

Finalization

December –District

Internal ReviewJanuary ‐ Final

Budget

Decisions

Feb 4 & 11 ‐ Budget

Forms distributed

May – Proposed

Budget

June ‐ Adopted

Budget

• January

– Present SBB overview and recommendations on school and support services budgets (1/18)

–

Board of

Education

adopts

amendments

to

FY10

‐11

budget

(1/20)

– Confirm budget targets and distribute to schools and departments (2/4)

• February: Governor to present proposed state budget to legislature

• March: State Revenue Forecast (3/20)

• May:

Present preliminary

2011

‐12

budget

summary

• June – Board of Education adopts 2011‐12 budget

Feb 7 – 18

One‐on‐one with

Principals

Feb 14

– Mar

11

One‐on‐one with

Dept Mgrs

October – December

Prioritization Process to

including Budget Task

Force

April 4 – 22

Budget Reviews

1/18/11



Appendix

1/17/2011 Denver Public Schools Internal Use Only 28

S f G l F d SBB



Summary of General Fund SBB

Changes

29

ALLOCATION FY10‐11 PROPOSED FY11‐12 NOTES

Base Per Pupil (Includes Previous Instructional

Allocation $193pp)$3,528 $3,931

Includes recommended 2% increase and all other

formula changes

Supplemental Base for Center Programs NONE

$ Per Center Program per K‐12 (K=.5)

ES ‐ $12

K8 ‐ $12

MS ‐ $13

6‐12

‐$13

HS/Alt ‐ $11

Previously included as part of PSN staffing

allocation (below)

PSN (Student Service Days) Staffing Allocation

$106‐$119 (K‐12, K=.5)

$52‐$57 (Free Lunch grades 1‐12)

$11‐13 per center/per K‐12 (K=.5)

Reallocated to Base and FRL weight

No specific PSN allocation ‐

$106‐$119 (K‐12, K=.5) included in Base (above),

$52‐$57 (Free Lunch grades 1‐12) added to Free

and Reduced Lunch Supplemental Funds

Allocation (below)

$11‐13 per center/per K‐12 (K=.5) included in

Supplemental Base for Center Programs (above)

Mild Moderate Staffing Allocation

$334 for FRL Students

$223 for non‐FRL students

Minimum FTEs required

Reallocated to Base and FRL weight

No specific MM staffing allocation –

FRL is a standalone allocation (below)

Non‐FRL students funded as part of SBB Base (All

K‐12, K=.5)

Free Lunch / Free and Reduced Lunch Supp

Funds

$268 for Elementary FREE lunch only (K‐12, K=.5)

$303 for Secondary FREE lunch only (K‐12, K=.5)

$449 for Elementary Free ANDREDUCED lunch (K‐12 @ 1.00)

$484 for Secondary Free ANDREDUCED lunch (K‐12 @ 1.00)Includes recommended increase of $25 per pupil

Gifted & Talented Per Pupil $95 $120

Targeted Interventions $100,000 for lowest performing $100,000 for lowest performing

Performance NONE

$65 per student ‐ SPF Blue

$95 per student for growth to Orange

$100 per student for growth to Yellow

$105 per student for growth to Green

$115 per student for growth to Blue

Extra Allocations (IB, Montessori, Arts) $2.3 million (Total) ‐ Not a per pupil allocation

This funding will be added to the district class size relief pool, school

needs will be addressed through that process ; no reduction in

overall funding

Small School Factor $854,000 (Total) ‐ Not a per pupil allocation

This funding will

be

added

to

the

district

class

size

relief

pool,

school

needs will be addressed through that process ; no reduction in

overall funding

1/18/11

4.01 - 2011-12 budget recommendation

Documents