Budget Priorities

Berkeley County SchoolsFY 2015-2016 Budget

AdministrativeRecommendations

Dr. Michael Turner, Interim SuperintendentBrantley Thomas, Chief Financial Officer

Board MeetingJune 9, 2015

Prime Considerations in Developing Priorities

• Our 2014-15 Teacher Salary Schedule was the lowest among Charleston, Dorchester 2 and Dorchester 4 school districts by a substantial margin. This is a serious threat to our competitiveness in attracting and maintaining high quality teachers.

• The expected student enrollment growth, declining special revenues, and opening of Nexton Elementary School require that we substantially increase our teacher and support personnel numbers just to maintain the program quality that we have achieved historically.

• We need some additional teachers to address class size overages that occurred during 2014-15 in selected schools.

BUDGET PRIORITY RECOMMENDATIONS

15/16 Step$5,000,000 Option One Salary Schedule $3,000,000 FTE Per Formula$2,574,340 Part 2 FTEs Per Formula $1,277,805 4 School Psychologist $400,000 4 Registered Nurses (RN) $240,000 5 FTE Special Needs Teachers $325,000 3 FTE ESOL Teachers $195,000 1 Additional SRO (GCHS)$50,000 Nexton Elementary (School Opening) $1,000,000 Phillip Simmons Elem and Middle Admin (Start up) $122,544 Bus Driver Raise ($1.00) $460,000

Total $14,644,689

BUDGET PRIORITIES THAT DID NOT MAKE IT

Increase School Supplies $300,000

6 Lab Assistants Elementary $165,000

.5 FTE Adult Education $35,000

3 FTE Maintenance $ 125,000

1 FTE Social Worker $65,000

3 FTE Interpreters $ 101,250

Routing Coordinator /Head Start Supervisor $50,000

1 FTE Diesel Mechanic $50,000

1 FTE Administrative Assistant Leadership Development HR $50,000

1 FTE Teacher Evaluator $70,000

Total $1,011,250

FY 2014-2015 Act 388 AnalysisEstimated (Pre –Act 388 )

Assessed Value of 4 % Property Operating Mills

$283,781,530142.90

Estimated Operating Revenue $40,552,381

Actual:Tier ITier II Tier III

7,891,2721,860,174

26,283,420

Total Current Estimated $36,034,866

Difference in Actual vs Pre Act 388 (Lost due to Act 388)

$(4,517,515)

Three Year Look Back for Catch Up Millage

"Section 6-1-320(A)(2) says: “ There may be added to the operating millage increase allowed pursuant to item (1) of this subsection any such increase, allowed but not previously imposed, for the three property tax years preceding the year to which the current limit applies.” This is the 3 year look-back; you get to add unused cap-space from the last 3 years (2012, 2013 and 2014) to 2015 (FY 2015-16’s tax year)."

CATCH UP MILLAGE FORMULA

CumulativeActual Mill Unused Unused Potential

Beginning Mills Pop % CPI % Total Cap % Mill Cap Increase Mills Mills RevenueFY 11-12 137.9

FY 12-13 137.9 2.68 3.16 5.84 8.1 0 8.1 8.1 3,888,000.00$

FY 13-14 142.9 3.06 2.07 5.13 7.1 5 2.1 10.1 1,008,000.00

FY 14-15 142.9 2.20 1.46 3.66 5.2 3.1 2.1 12.3 1,008,000.00

FY 15-16 2.23 1.62 3.85 5.5 5.5 2,640,000.00

17.8 8,544,000.00$

Value of a Mill is $480,000

8

Revised Budget

FY 2014-2015

ProposedChanges(With 17

Mills)

Proposed Budget

FY 2015-2016

Revenues (Including 17 Mills for Operations)

$223,579,353

14,644,689 *

$238,224,042

Expenditures $223,579,353

14,644,689

$238,224,042

ExpendituresOver Revenues -0- -0- -0-

BERKELEY COUNTY SCHOOLS PROPOSED GENERAL FUND BUDGET

FY 2015-2016

Millage Ranges

5 Mills = $2,400,000

10 Mills = $4,800,000

15 Mills = $7,200,000

• Includes Revenues from 17 Mills= $8,544,000

• Option One ($3,000,000 infused into the Teacher Salary Schedule) to support Teacher Recruitment and Retention. Even with infusing the above amount we would still be behind Charleston by $490 for a new teacher coming in at zero years with a Bachelors degree as of this year’s scale. Charleston is not looking at any increase in their scale other than the individual step. However, we would still need to consider these options in future budgets to maintain competiveness.

Dorchester School District Two and Four are considering a 2 % Cost of Living and Step.

• The state has not included a cost of living increase on the teacher salary scale for at least 10 years.

• Any increase in mills does not impact the owner occupied home due to Act 388. It will impact cars, boats, planes, and rental property.

Discussion Points

• Dr. Robert T Carey, Director, Regional Economic Analysis Laboratory, from the Strom Thurmond Institute stated that in forecasting the financial impact of Volvo Stated: “As you’ll see, including the recovery of unused mills definitely helps the bottom line in all of the models. “

• The priorities as recommended by the administration are funded by the increase in the state revenue and maximizing the millage increase through the catch up provision and applicable increase allowed for FY 2015-2016 both as allowed by legislative action in 2007 through Act 388.

• Possibility of new state revenue and depending on its placement could help us with the general fund. Hopefully, we will know by the Public Hearing.

Discussion Points – Continued

Comparative Analysis on per student Spending

School District Average Per Student Spending Per Student Spending Rank Academic RankingSpartanburg School District Seven 12,822.00$ 9 53Charleston County School District 10,587.00$ 18 26Richland School District Two 10,380.00$ 23 23Horry County School District 10,273.00$ 25 13Georgetown School District 10,169.00$ 26 42York School Districty One 9,428.00$ 40 28Lexington School District Two 9,376.00$ 43 31Berkeley County School District 8,513.00$ 67 24

State Average: $9,791State median: $9,415 District with Students Like Ours: $9,114

• Continue to monitor state education web site for additional state information.

• Continue to monitor local assessments for additional local revenue.

• Public Hearing June 23, 2015. Notice in paper June 7, 2015

• Cash Flow for FY 2015-2016 for Tax Anticipation Note- June 9, 2015

The administration recommends first reading of the FY 2015-2016 Budget as presented.

Next Steps