Fulton County SchoolsFY10 Budget

March 19,2009

Board Work Session

Summary of FY10 Budget Process

Superintendent and central staff met with principals to review proposed budget cutsPrincipals worked with superintendent at administrative staff meetings to prioritize potential budget cutsSuperintendent met with Teacher Advisory Council, Superintendent’s Community Council, Superintendent’s Parent Council, to share process and gather inputBoard adopted class size changes for FY10 planning purposesSuperintendent communicated initial budget changes in communications to all staff

Responses from stakeholders:

“Thank you so much for your continued updates. It makes all of us feel more comfortable knowing that you have not made these decisions without carefully considering all options.”• Middle School Teacher

Responses from stakeholders:

“I am one of the part-time individuals the system is having to let go….I understand why the system had to make the decision it made and I am simply grateful for having the opportunity to have served the children in my school .”• Elementary School Parent Liaison

Budget Calendar UpdatesMarch 19, 2009 4:30 – Dunwoody Springs • Red Book Presentation

April 14, 2009 1:30 – Admin. Center• Q&A – Red Book• Blue Book (General Fund) Presentation

April 23, 2009 3:30- Dunwoody Springs• Q&A Blue BookPublic Hearing #1 on Budget : 4:30 p.m.Salary Hearing #1: 6:00 p.m.

Budget Calendar UpdatesMay 12, 2009 2:00 p.m. Admin. Center• Work session on Budget ( if needed)• 4:30 p.m. : Salary Hearing #2• 6:00 p.m. : Public Budge Hearing #2

May 21, 2009: ( Dunwoody Springs)• Work session on Budget if needed• FY2010 Tentative Budget Adoption

June 9, 2009 (Administrative Center)– Final Budget Adoption and Tentative Adoption of

Millage Rate

Budget Calendar Updates

June : Dates and times public hearings and final adoption of millage rate is to be determined.

Initiatives Continuing

Improve science instructionImprove math instructionIntegration of technology into instructionValue-added performance systemsImplement cross-functional action team (XFAT) recommendations

• Improve textbook processing• Implement cost-savings in insurance coverage• Pilot open enrollment at high schools

Leadership Academy - Promising Principals Program and ALPHAAdvisory councils for principals, teachers, parents and communityFulton Institute of TechnologySAP implementation

Initiatives for 2010

Enterprise information management and portal strategy

Enhanced student information system

Parents as Leaders program

Advisory council for students

Recommendations of virtual learning XFAT

Presentation of “Red Book”

Red Book contains budgets for:• Special Revenue Funds : These funds are primarily

federal grants, but some state and miscellaneous grants are also included here.

• Debt Service: This fund budgets and accounts for the annual debt service (principal and interest) payments required on outstanding long-term debt for the district.

• School Nutrition: Cafeteria Operations

Red Book – Debt Service

Total Outstanding Debt as of 6/30/2009:• $164,890,000 - Principal

Debt Service Payments for FY2010:

• Principal: $15,130,000

• Interest: 9,442,269

• Total: $24,572,269

Debt Service- FY2009-2010FY2009 FY2010

Property Tax $31,737,841 $10,195,328

Sales Tax 18,051,177 $18,354,089

Interest 302,912 205,000

Total Revenue

$50,091,930 $28,754,417

Millage Rate 1.099 .349

Assumes reduction in DS and Increase to M&O millage of .750

Debt Service- FY2009-2010 Expenditures

FY2009 FY2010

Interest $10,255,738 $9,442,269

Principal 13,865,000 15,130,000

Fiscal Agent 6,000 6,000

Total Expenditure

$24,126,738 $24,578,269

Transfer to Escrow

$18,000,000 $20,000,000

Debt Service- FY2009-2010 Fund Balance

FY2009 FY2010

Beginning Balance $16,862,178 $24,827,370

Revenues 50,091,930 $28,754,417

Expenditures 24,126,738 $24,578,269

Ending Balance before transfer

$42,827,370 $29,003,519

Transfer to escrow $18,000,000 $20,000,000

Ending Balance after transfer

$24,827,370 $9,003,519

Early Debt Retirement

Additional millage dedicated to early debt retirement began in FY2008

Amount accumulated from that millage:• Approximately: $38,000,000

• Transfer to defeasance scheduled for 09: $18,000,000

• Transfer of balance in FY10: $20,000,000

• Future transfers dependent on millage rate amount available for debt defeasance

Special Revenue Grants

Title I* – Title V $21.8 m 39.9%

Title VI $16.9 m 31.0%

State Spec. Ed $1.8 m 3.3%

Career Tech $2 m 3.6%

Charter Schools $1 m 1.8%

Pre-K $9.1 m 16.7%

Other $2.0 m 3.7%

Total $54.6 m 100%

Grant Amount Percentage

*FY10 Title I Schools Served – 47 schools (35 ES, 12 MS) 9 private and 7 neglected institutions, added five additional new schools plus one grade level – West Stubbs ES, Ison Road ES, River Eves ES, Hillside ES, Holcomb Bridge MS and 160 – 9th graders at Hapeville Charter

Special Revenue Grants

Special Revenue Grants (cont)

Grant Revenue Summary

Where does the money come from?

See details of each revenue source in grants labeled A thru E

3.4

Final Federal Allocations

Confirmation of federal grant funds will not be available until late summer

Federal Stimulus Funds will be targeted for Title I and Title VIB

All indications are that current “supplement and not supplant” requirements will remain in place with these funds

Funds will flow for FY2010 and FY2011

FY 2010 Tentative BudgetSchool Nutrition Program Fund

March 19, 2009

Board Work Session

School Nutrition ProgramI. IntroductionII. Wellness Program Highlights

a. System-wideb. Centennial High Schoolc. Creekside/Westlake Clusters

III. Summary of Current Operationa. Trends in Revenue versus Expendituresb. Metro Lunch Price Comparisonc. Analysis of Paid Meal Revenue GAPd. Program Cost Increasese. General Fund Relief

IV. Recommendations for FY10a. Closing the GAPb. No Cost to Students Breakfastc. Meal Price Proposal

V. Summary of Forecasted Revenues and Projected Expendituresa. Option Ab. Option B

I. Introduction Following the System's "See, Plan, Do, Check" process, the School

Nutrition Service Fund organizes its activities, goals, and planning priorities so that they are integrated in fulfilling the overall mission of Fulton County Schools, "Where Students Come First."

The School Nutrition Program is committed to providing nutritious breakfasts and lunches to Fulton County Students. Furthermore, the program strives to ensure that each local school nutrition program actively seeks the participation of students, parents, teachers, and other stakeholders.

Serving approximately 13 million meals annually, the School Nutrition Program is a big business that supports classroom instruction.

II. Wellness Program Highlights

System-wide

Centennial High School Program

Creekside/Westlake Clusters

System-wide Regulatory Compliance

• School Meals Initiative for Healthy Children• Wellness Policy

Wellness Initiatives Implemented• Menus no more than 30% fat, no more than 10% saturated• Met nutrient and calorie standards per grade level• Increased the number of offerings of fresh fruits and vegetables• Increased fiber in the menus by adding whole grain menu items• Decreased sodium and cholesterol in the menus• Serve only lowfat, 1%, or fat free milk • All fats used in the program are trans fat free oils• Decreased the number of times desserts are offered to 1X per week in elementary and 2Xs per

week in secondary schools• Communication – School Nutrition website and monthly newsletter

Results• Each local school has a Wellness Committee• Wellness/Nutrition education were completed by schools• Schools completed the Wellness Evaluation Checklist• All schools’ monthly menus posted on website

Centennial High School Program – August 2007

Highlights• Integrated approach including parents, administrators, students, staff and

school nutrition• Implemented a Wellness Program for students and staff• Surveyed students and staff• Established a wellness steering committee• Grand-Opening Event• Menus revised• Extensive nutrition and marketing plan developed• Signage Installed

Results• Year I – Participation increased 3%• Year II – Participation increased an additional 3% for a total of 6%

Creekside/Westlake ClustersAlliance for a Healthier Generation – August 2008

Highlights• Innovative to encourage more healthy food options and increase physical

activity• Collaboration with school, community, parents, students, and school system

departments• School Nutrition Criteria

Meets School Meals for Healthy Children Criteria Serves only milk that is 1% fat or less Half of all grains served at breakfast and lunch are whole grains Serves 100% fruit juice and at least an additional serving of fruit daily

at breakfast

Results• 60% of schools participation has increased• Applied for Bronze/Silver recognition awards• Program participation of 100% of schools in clusters

III. Summary of Current Operation

Trends in Revenue versus Expenditures

Metro Lunch Price Comparison

Analysis of Paid Meal Revenue GAP

Program Cost Increases

General Fund Relief

Trends in Revenue versus ExpendituresLunch: Cost vs. Revenue

$1.00

$1.50

$2.00

$2.50

$3.00

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

Free & Reduced - Lunch

Paid Secondary - Lunch

Paid Elementary - Lunch

Adult - Lunch

Lunch Cost

Paid meal price includes Federal Reimbursement.

Metro Lunch Price Comparison

Metro - Elementary School Lunch Prices

1.00

1.15

1.30

1.45

1.60

1.75

1.90

2.05

02-03 03-04 04-05 05-06 06-07 07-08 08-09

School Year

Mea

l Pri

ce

FULTON-39.5% FR

DEKALB-66% FR

COBB-38% FR

GWINNETT-46% FR

FAYETTE-17% FR

Metro - High School Lunch Prices

1.25

1.40

1.55

1.70

1.85

2.00

2.15

02-03 03-04 04-05 05-06 06-07 07-08 08-09

School YearM

eal P

rice

FULTON-39.5% FR

DEKALB-66% FR

COBB-38% FR

GWINNETT-46% FR

FAYETTE-17% FR

Analysis of Paid Meal Revenue GAP

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

3,311,481FY2005

3,339,816 FY2006

3,374,092FY2007

3,565,797FY2008

3,655,871FY2009*

Number of Paid Meals Served

Rev

enu

e G

AP

fo

r P

aid

Mea

ls

*Projected year end

Program Cost Increase since 2003

104%

74%

24%

72%

0%

20%

40%

60%

80%

100%

120%

Category

Per

cen

tag

e Food

Labor

Other

General Fund Relief

General Fund Relief FY10

Total amount = $1,682,624

Maintenance Support/Equip

Repair & Parts/Grease Trap Pumping

27%

Warehouse Support

11%

Large Equipment

6%

Utilities56%

IV. Recommendations for FY2010

Closing the GAP

No Cost to Students Breakfast

Meal Price Proposal

Closing the GAPCost Control Recommendations*: Estimated Potential Savings

Labor – Increase Meals per Labor Hour from 19 to 21 $1,300,000 Labor – Eliminate 9 Non-Productive Paid Holidays $550,000 Labor – Eliminate one Central Office Position $103,000 Labor – Freeze one projected vacant Central Office Position $101,000 Food - Implement "Offer vs. Serve" in all schools at breakfast and lunch $900,000 Other – Reduction in Central Operating Expenses $140,000 Other - Reduction of projected small equipment replacement $33,000 Total $3,127,000

Estimated Potential

Revenue Enhancement Recommendations*: Additional Revenues

Elementary School Lunch Price Increase $1,603,000 Middle/High School Lunch Price Increase $837,000 Adult Lunch Price Increase $187,000 Elementary School Breakfast Price Increase $71,000 Middle/High School Breakfast Price Increase $42,000 Adult Breakfast Price Increase $5,000 Total $2,745,000

No Cost to Student Breakfast – Current Schools Greater than 65% Free and Reduced

Bethune ES H. Tubman ES Abbotts Hill ES Roswell North ES Alpharetta HSBrookview ES E. C. West ES Alpharetta ES Shakerag ES Centennial HSCampbell ES Bear Creek MS Barnwell ES Spalding Drive ES Chattahoochee HSCollege Park ES Camp Creek MS Cogburn Woods ES State Bridge Crossing ES Independence HSConley Hills ES McNair MS Crabapple Crossing ES Stonewall Tell ES McClarin HSDunwoody Springs Charter ES Renaissance MS Creek View ES Summit Hill ES Milton HSC. H. Gullatt ES P. D. West MS Dolvin ES Sweet Apple ES North Springs HSHamilton E. Holmes ES Woodland MS Findley Oaks ES Wilson Creek ES Northview HSHapeville ES Banneker HS Heards Ferry ES Woodland Charter ES Riverwood HSHeritage ES Creekside HS Hembree Springs ES Autrey Mill MS Roswell HSHigh Point ES Tri-Cities HS Hillside ES Crabapple MS Westlake HSLake Forest ES E. Jackson ES Elkins Point MSSeaborn Lee ES Lake Windward ES Haynes Bridge MSS. L. Lewis ES Manning Oaks ES Holcomb Bridge MSLiberty Point ES Medlock Bridge ES Hopewell MSMimosa ES Mtn. Park ES Northwestern MSMt. Olive ES New Prospect ES Ridgeview MSLove T. Nolan ES Northwood ES River Trail MSOak Knoll ES Ocee ES Sandtown MSOakley ES Randolph ES Sandy Springs MSPalmetto ES Renaissance ES Taylor Rd. MSParklane ES River Eves ES Webb Bridge MS

Eligibility based on previous year October 31st official free and reduced percentage.

As a further commitment to student achievement, school nutrition recommends that breakfast be served at no cost to students in schools that have a 65% or more student population eligible for free or reduced meals. This program would replace the no cost breakfast to students programs at schools not meeting AYP.

Current Schools greaterthan 65% Free & Reduced

Current Schools lessthan 65% Free & Reduced

Meal Price ProposalSY03-SY09 Proposed-FY2010 Change

Elementary – Lunch $1.35 $2.00 $ .65

Middle/High – Lunch $1.60 $2.25 $ .65

Adult – Lunch $2.40 $3.05 $ .65

Elementary – Breakfast $ .80 $1.00 $ .20

Middle/High – Breakfast $ .95 $1.15 $ .20

Adult – Breakfast $1.30 $1.50 $ .20

V. Summary of Forecasted Revenues and Projected Expenditures

Option A

Option B

Summary of Forecasted Revenue and Expenditures-Option A

Option A: Three-year Forecast With No Meal Price Increase and Maintaining Current Cost Structure

FY06 FY07 FY08 FY09 FY10 FY11 FY12

Y/E Actual Y/E Actual Y/E Actual Y/E Forecast Forecast Forecast

31,170,444 33,298,816 34,881,466 36,288,626 39,520,758 41,037,865 42,615,657

31,465,388 35,400,346 39,555,046 43,126,956 45,392,738 47,662,375 49,711,857

(294,944)$ (2,101,530)$ (4,673,580)$ (6,838,330)$ (5,871,980)$ (6,624,510)$ (7,096,200)$

Estimated Beginning Fund Balance 14,767,988 14,473,044 12,371,514 7,697,934 859,604 (5,012,376) (11,636,886)

Estimated Ending Fund Balance 14,473,044 12,371,514 7,697,934 859,604 (5,012,376) (11,636,886) (18,733,086)

% Estimated Ending Fund Balance 46.0% 34.9% 19.5% 2.0% -11.0% -24.4% -37.7%

Estimated Ending Fund Balance in Terms of Months Of Operation 5.52 4.19 2.34 0.24 (1.33) (2.93) (4.52)

ESTIMATED REVENUES ( A )

PROPOSED EXPENDITURES ( B )

RESOURCES IN EXCESS OF EXPENDITURES ( C = A - B)

Summary of Forecasted Revenue and Expenditures-Option B

Recommendation: Use Option B

Option B: Three-year Forecast With A Meal Price Increase and Changing Cost Structure

FY06 FY07 FY08 FY09 FY10 FY11 FY12Y/E Actual Y/E Actual Y/E Actual Y/E Forecast Forecast Forecast

31,170,444 33,298,816 34,881,466 36,288,626 42,265,758 43,892,665 45,584,649

31,465,388 35,400,346 39,555,046 43,126,956 42,265,738 43,736,442 45,266,663

(294,944)$ (2,101,530)$ (4,673,580)$ (6,838,330)$ 20$ 156,223$ 317,986$

Estimated Beginning Fund Balance 14,767,988 14,473,044 12,371,514 7,697,934 859,604 859,624 1,015,847

Estimated Ending Fund Balance 14,473,044 12,371,514 7,697,934 859,604 859,624 1,015,847 1,333,833 % Estimated Ending Fund Balance 46.0% 34.9% 19.5% 2.0% 2.0% 2.3% 2.9%Estimated Ending Fund Balance in Terms of Months Of Operation 5.52 4.19 2.34 0.24 0.24 0.28 0.35

ESTIMATED REVENUES ( A )

PROPOSED EXPENDITURES ( B )

RESOURCES IN EXCESS OF EXPENDITURES ( C = A - B )

NEXT STEPS

Please submit questions on “Red Book” to

Dr. Loe by March 25.

Answers to all questions will be summarized and presented at budget work session on April 14 at 1:30.

Thank you!