S H A R O N L . C O N T R E R A S , P H . D . | S U P E R I N T E N D E N T

SUPERINTENDENT’S BUDGET RECOMMENDATION

GUILFORD COUNTY BOARD OF EDUCATION

APRIL 10 , 2018

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Funding Trends for

Guilford County Schools

K-12 Education Funding in North Carolina

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Source: NCDPI Highlights of the North Carolina Public School Budget, February 2018

Since 1970, the Public School’s share of the General Fund has decreased by 13.5 percentage points. If our Public Schools were still funded at the same percentage as in FY 1969-70, we would have an additional $3 billion for our students.

K-12 Education Funding in North Carolina

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Source: NCDPI Highlights of the North Carolina Public School Budget, February 2018

Funding increased from $5.92 billion in 2002-03 to $8.93 billion in 2017-18.

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Resources provided by state funding have not been restored to pre-recession levels.

Resources provided by state funding have not been restored to pre-recession levels.

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If Guilford County Schools received state funding based on allotment formulas that were in place in FY 2008-09, an additional $22.6 million per year would be available for our students.

2008-09 vs. 2017-18 2012-13 vs. 2017-18

INSTRUCTIONAL PERSONNEL AND SUPPORT SERVICES Positions Amount Change

CLASSROOM TEACHERS 107.79 $6,740,623 3.22%

INSTRUCTIONAL SUPPORT 30.37 $2,104,933 8.44%

PRINCIPALS 1.00 $84,224 0.80%

ASSISTANT PRINCIPALS 16.91 $1,186,596 18.79%

TEACHER ASSISTANTS $6,376,940 27.75%

EXCEPTIONAL CHILDREN CAP INCREASE ($742,311)

CLASSROOM MATERIALS/INSTRUCTIONAL

SUPPLIES/EQUIPMENT $2,062,141 48.40%

TEXTBOOKS $1,777,112 36.77%

SUPPORT

NONINSTRUCTIONAL SUPPORT PERSONNEL $2,007,439 10.19%

CATEGORICAL PROGRAMS

MENTOR PAY (DOLLAR ALLOTMENT) $605,670 100.00%

STAFF DEVELOPMENT $424,215 100.00%

Statewide Average Salaries (benefits are not included) 2008-09 2017-18 Change

Teachers $43,257 $45,970 6.3%

Principals (monthly) $5,916 $5,368 -9.3%

Assistant Principals (monthly) $5,159 $5,197 0.7%

Career Technical Ed (monthly) $4,558 $4,788 5.0%

Instructional Support $49,131 $51,724 5.3%

Benefit Costs 2008-09 2017-18 Change

Hospitalization (per FTE) $4,157 $5,869 41.2%

Retirement 8.14% 17.13% 110.4%

Social Security 7.65% 7.65% 0.0%

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Sources:2009-10 through 2016-17 GCS = final ADM per NCDPI; 2009-10 thru 2016-17 Charter = Average monthly billing;2017-18 GCS = 20th day; 2017-18 Charter = Average monthly billing through January 2018;2018-19 GCS & 2018-19 Charter = NCDPI projected ADM

Guilford County Schools

Per Pupil County Appropriation for Local Current Expense Fund

Fiscal Years 2009-10 thru 2018-19

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

County Appropriation $175,165,521 $175,165,521 $175,165,521 $175,630,398 $177,130,398 $179,360,398 $183,360,398 $188,360,398 $195,860,398 $205,860,398

Guilford County Schools 70,710 71,227 71,587 71,885 71,787 71,502 71,908 71,396 71,928 72,259

Charter Schools 1,678 1,740 1,840 2,442 3,543 4,393 5,347 6,229 6,583 7,500

Total 72,388 72,967 73,427 74,327 75,330 75,895 77,255 77,625 78,511 79,759

Per Pupil Appropriation Amount $2,420 $2,401 $2,386 $2,363 $2,351 $2,363 $2,373 $2,427 $2,495 $2,581

$2,420 $2,401

$2,386 $2,363

$2,351 $2,363 $2,373

$2,427

$2,495

$2,581

$2,000

$2,100

$2,200

$2,300

$2,400

$2,500

$2,600

$2,700

Guilford County SchoolsPer Pupil County Appropriation for Local Current Expense Fund

Fiscal Years 2009-10 thru 2018-19(2009-10 through 2016-17 GCS = final ADM per NCDPI; 2009-10 thru 2016-17 Charter = Average monthly billing

2017-18 GCS = 20th day; 2017-18 Charter = Average monthly billing through January 2018

$10$12

$54

$86

$68

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2017-18 Per Pupil Expenditure and Average Daily Membership Data

Top 15 Per Pupil Expenditure Counties in NC

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2011-12 = $450,330 in general fund dollars + $3,549,670 from the Eastern Guilford HS Replacement project;2013-14 = $1,000,000 in general fund dollars + $1,000,000 in bond premium dollars

Guilford County Schools

Capital Outlay Budget for Annual Maintenance

Fiscal Years 2008-09 thru 2017-18

2018-19 Budget

Recommendation

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Goal I: By 2022, the percentage of students who will read

proficiently by the end of third grade will increase to 63 percent (currently 53.4

percent).

Goal II: 75 percent of incoming sixth grade students will pass

NC Math I (Algebra I) with a C or better by the end of their ninth

grade year in 2022 (currently 69.8 percent).

Goal III: By 2022, the percentage of graduating seniors who complete a

rigorous career pathway will increase to 35 percent

(currently 28.6 percent).

Goal IV: By 2022, increase by 50 percent the number of schools that exceed growth (currently

32.5%).

Goal V: By 2022, decrease the achievement gap between black

and Latino students and their white peers by 7 percentage points (currently gap ranges

from 25-37 percent in reading and math).

Strategic Plan Goals

Goal VI: By 2022, increase organizational efficiency and effectiveness to better support student learning.

Strategic Priorities

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Reimagine Excellent Schools

Create Pathways to Prosperity

Invest in Our People

I

II

III

IV

V

Eradicate Gaps in Access, Preparation and Achievement

Improve Operational Efficiency

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Budget PrioritiesBUDGET

PRIORITIESSTRATEGIC PLAN 2022

GOALSSTRATEGIC PLAN 2022

PRIORITIES

Safety and SecurityVI

Operational Efficiency,Invest in People

Salary and Benefit Cost Increases

VI Invest in People

ImprovingChronically Low

Performing SchoolsI, II, III, IV, V, VI

Reimagine Schools,Eradicate Gaps,

Pathways,Invest in People

Literacy & Math Materials/Resources I, II, III, IV, V Eradicate Gaps

ProfessionalLearning I, II, III, IV, V

Reimagine Schools,Eradicate Gaps,Invest in People

Sustaining Operations

I, II, III, IV, V, VIOperational Efficiency,

Invest in People

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Safety & Security(non-capital)

Command center personnel and

equipment

Information & incident

management software

$500,000

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Salary and Benefit Cost Increases

for Locally Funded Employees

$9.1 million

Teacher salary increase = $2.5 million

Assistant principal salary increase = $291,000

Classified staff salary increase = $928,000

Teacher supplement increase = $3.1 million

Health insurance = $372,000

Retirement rate = $1.9 million

Local teacher supplement (2018)

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Rank LEATeacherAverage

Supplement

1 Wake County Schools $8,649

2 Chapel-Hill/Carrboro City Schools $7,904

3 Charlotte-Mecklenburg County Schools $7,159

4 Durham County Schools $6,931

5 Orange County Schools $6,274

6 Buncombe County Schools $5,276

7 Chatham County Schools $5,057

8 Johnston County Schools $4,993

9 Guilford County Schools $4,764

It will cost $33.6 million for Guilford County Schools’ teacher supplement to equal Wake County Schools teacher supplement.

Source: NCDPI Statistical Profile

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Title I eligibility for school-wide programs @ 40% CEP

Fully fund curriculum facilitators for all elementary schools

Elimination of 15 combination classes in lowest performing schools

with least experienced teachers

Teacher recruitment/retention incentive

Improving

Chronically

Low

Performing

Schools

$3.4 million

Teacher Recruitment/Retention Incentive

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Level

Annual

Incentive

(all teaching staff)

Exceeds

Growth

(individual

teacher)

Meets

Growth

(individual

teacher)

Improve School

Letter Grade

(teachers w/o

EVAAS)

Elementary $3,000 $4,500 $2,750 $1,000

Middle $3,000 $4,500 $2,750 $1,000

High $3,000 $4,500 $2,750 $1,000

Phase I Schools (10 schools with absolute lowest proficiency):

Andrews HS Gillespie Park ES

Bluford ES Hairston MS

Cone ES Hampton ES

Fairview ES Washington ES

Falkener ES Welborn MS

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SUSTAINING OPERATIONS

$4.0 million

Growth in charter school enrollment

1,083 students =

$3.4 million

Increase in liability insurance

$145,000

Federal grant phase out

Race to the Top –District

$420,000

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Instructional Resources

Funded with existing state, local and

federal resources

Literacy Resources for K-8 Math Resources for K-8

Timely assessments for teachers to drive

instruction

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Professional Learning

Funded with existing state, local and

federal resources

Training and Coaching for Teachers and School Leaders

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Principal Career Pathway

Funded with existing federal resources

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Budget Priorities

2018-19 Local Current Expense Fund

Safety & Security (non-capital) $500,000

Salary and Benefit Cost Increases for Locally Funded Employees $9.10 million

Improving Chronically Low Performing Schools $3.40 million

Sustaining Operations $4.00 million

Instructional Resources No additional $

Professional Learning No additional $

Principal Career Pathway No additional $

Total $17.00 million

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Total Budget Priorities $17.00 million

Less: Programmatic Changes

Extended day/year (Allen MS, Fairview ES, Hampton ES, Oak Hill ES, Parkview ES, Wiley

ES)($1.30 million)

Less: Savings

State funded enhancement teachers ($2.38 million)

Savings identified for class size funding ($2.20 million)

Transportation savings (176 days vs. 180 days) ($519,000)

Central office reductions (identified vacant positions) ($350,000)

Athletic fee ($250,000)

Total Savings ($5.70 million)

Request additional funding from Guilford County Board of Commissioners

$10.00 million

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Capital Outlay Fund

Access Control & Door Maintenance - to address interior and exterior door maintenance needs, ensuring that doors properly secure and are on a standardized locking platform, reducing the need for a single school to have multiple keys to access different classrooms, buildings, etc. This would also provide electronic access control on certain doors to reduce the need for keys and key management programs, as well as provide access for students during transition periods. Additional features include alarming emergency exit doors and providing additional buzzer systems, as needed.

$4,900,000

Annual Maintenance $7,500,000

Total $12,400,000

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SUMMARY

2018-19 State Public School Fund

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2018-19 Projected State Fund Budget = $407,512,128

2017-18 Initial State Fund Budget = $404,135,654

Built using allotment formulas provided by NC Department of Public Instruction.

Further adjustments for changes in allotted Average Daily Membership (ADM) will be included in the state planning allotment; anticipates limited growth in GCS student enrollment

2017-18 allotted ADM = 71,977

2018-19 allotted ADM = 72,259 (+282)

2018-19 Local Current Expense Fund

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2018-19 Recommended Local Fund = $209,163,821

Operating Request from County Commissioners = $205,860,398

$195,860,398 = 2017-18 county appropriation+ 10,000,000 = increase requested for 2018-19$205,860,398 = 2018-19 county appropriation requested

Requested per-pupil amount for 2018-19 = $2,581(using NCDPI’s 2018-19 allotted ADM, including charter schools)

Other Local Sources = $3,303,423

2018-19 Federal Grants Fund

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2017-18 Actual Federal Allotment = $44,807,757

• 2018-19 federal planning allotments from NCDPI are not yet scheduled to be released.

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2018-19 Operating Budget

Revenues/Sources

Where The Money Comes From

State 407,512,128

Local 209,163,821

Federal 44,807,757

Total 661,483,706

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2018-19 Operating BudgetExpenditures/Uses

Where the Money Goes

Salaries & Benefits 553,570,177

Purchased Services 58,790,883

Supplies & Materials 28,460,984

Equipment 813,632

Transfers 19,848,030

Total $661,483,706

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2018-19 Operating BudgetSummary

Schools 537,363,544

Transportation 31,107,923

Utilities 20,783,157

Transfers to Charter Schools 19,723,030

Technology 8,959,873

Support Services to Schools 43,546,179

Total $661,483,706

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2018-19 Budget Recommendation

Funding Sources

2017-18Budget

Resolution

2018-19Proposed

Budget

State Fund $404,135,654 $407,512,128

Local Fund $200,563,822 $209,163,821

Federal Fund $59,496,194 $44,807,757

Capital Outlay Fund $5,000,000 $12,400,000

Child Nutrition $41,872,322 $42,789,450

ACES Fund $7,203,221 $7,374,976

Special Revenue Fund $11,657,214 $9,912,898

Total $729,928,427 $733,961,030

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NEXT STEPS:• BOE conducts budget work session(s) as needed and holds public hearing

(scheduled for April 26, 2018 BOE meeting)

• BOE adopts 2018-19 budget request (scheduled for May 8, 2018)

• BOE submits 2018-19 budget request to BOCC (no later than May 15, 2018)

• North Carolina General Assembly convenes for short session (scheduled for May 16, 2018)

• County Manager presents budget recommendation to BOCC (scheduled for May 17, 2018)

• BOCC has work session(s) to review budget

• BOCC holds public hearing (scheduled for June 7, 2018)

• BOCC adopts 2018-19 Budget Ordinance (scheduled for June 21, 2018)

• BOE approves 2018-19 Interim Budget Resolution if the state has not adopted a final budget for 2018-19 (June 21, 2018 BOE meeting)

• BOE approves final 2018-19 budget and 2018-19 Budget Resolution

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Questions?