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2014-15 Budget Update April 10, 2014

Budget Process & Timeline

OctoberNovember December January February March April May
Strategic plan & goal setting Initial projections based on current year events Baseline staffing ratios are reviewed Board of Education updated on early projections and assumptions Baseline staffing costs are calculated Departments receive 2014-15 budget materials
Governors State Aid figures released School Based Budget Handbook distributed School Based Budget Training for School Based Management Teams Board updates & projection refinements continue Schools receive School Based Budget Workbooks for completion Departments submit 10% reductions Meet with union leaders to discuss savings opportunities Budget update presented at regular Board meeting

State Budget adopted with new state aid figures Deficit adjusted and the closure measures near finalization Four Year Plan is due to the Control Board Public Budget Presentation

Public hearing at Common Council Chambers Budget is finalized and submitted for approval

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School Based Budgeting

Second

year of the process Schools are provided baseline staff based on enrollment Centrally assigned staff are layered on (Special Ed, CTE, Student Support Teams, Attendance) Schools receive Flexible dollar allocations based on student designations (ELL, Level 1 & 2, SIG transition) Principals work with data and School Based Management Teams to make decisions on the use of the funds

2014-15 General Fund Budget Deficit

Original Budget Deficit, January: ($49.7m)

Revenues Decreasing from $794.0m to $779.9m: ($14.1m) Expenditures Increasing from $794.0m to $829.6m: ($35.6m)

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2014-15 Projected Revenues & Changes from 2013-14:

Revenues: City Contribution County Sales Tax State Aid Use of Reserves Other Revenues 2014-15 2013-14 Adopted Projected as of 1.25.14 Change Budget $794.0 $779.9 ($14.1) $70.3 $70.3 $0.0 $38.3 $39.4 $1.1 $634.2 $649.6 $15.4 $31.1 $0.0 ($31.1) $20.1 $20.6 $0.5

2014-15 Projected Expenditures & Changes from 2013-14:

2013-14 2014-15 Adopted Projected as Budget of 1.25.14 Change $794.0 $829.6 $35.6 $237.0 $248.8 $11.8 $35.6 $41.2 $5.6 $45.2 $48.2 $3.0 $66.6 $73.0 $6.4 $36.7 $38.4 $1.7 $43.8 $44.7 $0.9 $34.7 $35.8 $1.1 $101.0 $100.6 ($0.4) $121.3 $120.0 ($1.3) $72.1 $78.9 $6.8

Expenditures Compensation Pension Contributions Employee Health Insurance Retiree Health Insurance Other Employee Benefits Transportation Agency, BOCES & Other Tuition Charter School Tuition Debt Service Principal & Interest All Other Expenditures

150 teachers Rates increase from 12% to 19.7% (ERS) and 16.25% to 17.53% (TRS) FICA & Supplemental for above

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Average Active Health Insurance Costs

$14,000

$12,000 $11,078 $11,333

$12,800

$11,067 $10,000 $9,369

2008-09 2009-10 2010-11 2011-12

$10,582 $10,212

2012-13

2013-14

Annual Pension Rates as a Percent of Salary

25.00%

20.50%
20.00%

2014-15

$8,000

19.66% 17.53% 16.25%

16.16%
15.00%

18.70%

11.70%
10.00%

11.84% 11.11%

8.20% 7.63%

7.25% 8.62% 6.19%

5.00%

0.00% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

TRS Average rate

ERS Average Rate

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2014-15 Revised Budget Deficit

Original Budget Deficit: Deficit Closure Actions Through March: Use of Assigned Fund Balance (Reserves)

($49.7 m) $10.2 m $3.8 m

Central Office/Department Reductions

Information Technology & Shared Accountability - $1.0m Transportation - $.7 m Assumes bus aide coverage of 75%; savings must be repurposed to cover after school bus aides Service Center - $.5 m All other departments combined - $1.5 m

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2014-15 Revised Budget Deficit

Facilities/School Changes

$2.6 m

Close swing school 78 Close school 28, move department staff to 187 Put to minimal operations but retain 8 and 171 Close 18A (Parent Center); have rooms in 187 Merge #115 into #97 (Closure of 40, 44 and MEC Lease already assumed)

Cost adjustments (increases) for fringe benefits and other fixed costs Revised Deficit March 24th

($4.9 m) ($38.0 m)

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2014-15 Revised Budget Deficit

2014-15 Budget Deficit as of March 24th April 1st State Budget Released:

($38.0 m)

Additional State Aid Charter Tuition legislation

$15.5 m $ 3.0 m ($19.5 m)

Deficit remaining to be closed

Thank you to the Western New York Delegation!

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2014-15 Budget: Deficit Closure Recommendations

Special

Education Recommendations - $7.6m

Implement the recommended staffing standard for Integrated Co-Teachers (ICT) so that whenever possible the ICT serves at least 5 students It is recommended that the current staffing model (12:1+3:1) be maintained for personal care aides and the use of 1:1 aides is reserved for only cases where data supports the need

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Teacher : Student
Special Education Service Delivery Models BUFFALO PUBLIC SCHOOLS 2013-2014

Student : Teacher Ratios

6:1 6:1 NYS AA 8:1 8:1 TE 8:1 AU 12:1:1 12:1:2 12:1:3 15:1 CT RR ICT

6:1

6:1

6:1

7:1

9:1

10:1

5:1

8:1

12:1

25:1

5:1

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ICT Staffing
ICT ICT

Teachers with 1 student: 46 Teachers with 2 students: 39 ICT Teachers with 3 students: 46 Proposed Guideline Change: ICT Teachers will service a minimum of 5 students whenever possible ICT in grades K-6 for ELA & Math, not other content

Special Ed Teachers
SPECIAL EDUCATION TEACHER FTEs
720 710 700 690 680 671 670 660 650 640 630 620 610 03/09 04/10 04/11 04/12 05/13 650 663 Total FTE's 684 712

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2014-15 Budget: Deficit Closure Recommendations

Health

Coverage Recommendations - $2.5m:

Negotiate agreements with unions to eliminate cosmetic surgery rider; affected members will receive a Health Benefit Card in return Present teachers union with a retirement incentive that includes a one-time bonus and annual payments to age 65 to withdraw from District health care coverage in retirement

Retiree can obtain insurance through public exchange Retiree will receive Medicare Advantage Plan at no cost at age 65

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2014-15 Budget Investments to Support Academic Priorities:

Extended

$3.1m

Day Program Increase investment

($1.7 m was included the 2013-14 budget for transportation)

Program

Costs - $2.0 m Bus Aides - $.7m Administrator Overtime & Building Usage - $.4m
Physical

Education Increase investment $160k

Continue to move forward with a compliance plan Support Project ACES with materials and staff

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Deficit Remaining to be Closed

Revised Deficit April 1st: Deficit closure recommendations

($19.5m)

Special Education Health Care Closure of under-enrolled programs Extended Day Program Physical Education

$7.6m $2.5m $0.5m ($3.1m) ($0.6m)

Investments

Deficit remaining to be closed

($12.6m)

USE OF RESERVES, $10.2, 1%

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ALL OTHER REVENUES, $19.7, 2%

ERIE COUNTY SALES TAX, $40.5, 5% CITY CONTRIBUTION, $70.3, 9%

2014-15 Draft Budget General Fund Revenues $805.8m (in millions)

STATE AID, $665.1, 83%

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50% of the Budget Primarily Fixed Costs

General Support, $10.4, 1%

Instructional 21 Administration, $5.5, 1%

Retiree Health Insurance, $69.1, 8%

Special Items, $6.1, 1%

2014-15 Draft Budget Expenditures By Functional Category Total $818.4 m (in millions)

Charter Schools, $98.1, 12%

Regular & CTE Instruction, $209.2, 26%

Special Education, $133.0, 16%

Debt Service & Transfers, $123.3, 15%

47%
Student Support Services, $19.3, 2%

30%
Facilities & Central Services, $65.4, 8%

Transportation, $53.0, 7%

School Admin (P & AP) & Clerical, $25.9, 3%

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Major Category Changes 2008-09 to 2014-15 Projections(1)

$70.0 $60.0 $50.0 $40.0 State Aid Excluding $30.0 Building Aid, $19.1 $20.0 $10.0 $$(10.0)
(1)

Employee & Retiree Benefits, $65.9

Charter School Tuition, $31.1 All Other Expenditures, $7.3 Student Tuition Payments, $8.4

Compensation, $(3.1)

Projections as of April 7, 2014

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Goal every year is to keep cuts as far from the classroom as possible. As such, since 2008-09 reductions & additions have been as follows:
Functional Area Central Services (IT, Plant, Mail) Finance Transportation Human Resources Pupil Support Services (Attendance, Guidance, Social Workers) Occupational Education (CTE) Positions (Reduced)/ Added (39.5) = (13%) (16) = (25%) (8) = (19%) (5.5) = (16%) +53 = +60% +24 = +10%

Changes Over Time:

2014-15 Draft Budget Full Time Equivalents By Functional Category 26

General Support Instructional Administration Transportation 2% 1% 1%

Student Support Services 4%

Facilities & Central Services 7%

School Admin (P & AP) & Clerical 6%

Regular & CTE Instruction 50% Special Education 29%

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Costs Per Type of Student Included in the 2013-14 General Fund Budget
Health Insurance for Retirees Debt Principal and Interst (Primarily JSCB) Instructional Materials Transportation $36,497 Operations for District/Tuition $1,055

$19,947
$2,037 $3,710
$116

$13,763
$104 $1,055

$35,442

$1,107

$12,978

$12,605

$1,159
$104 $1,055

BPS (32,700)
27

Charter (8,013)

Agency (979)

Non-Public (4,195)

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Further Deficit Closure Actions Are Needed To Close $12.6 m Gap

Lobbying

efforts

City Building Sales; Contribution (7.5%) State

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City Contribution as a Percentage of Total Revenues for 2013-14

NYC, 55.1%

Yonkers, 42.9% Rochester, 15.4%

2013-14

Syracuse, 14.6%

Buffalo, 7.5%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Source: Conference of Big 5 School Districts Revenues for the 2013-14

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Further Deficit Closure Actions Are Needed To Close $12.6 m Gap

Health

Insurance Vendor reductions Department reductions continue

Unknown

impact of turnaround plans for Bennett and MLK schools

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Timeline
Board

Meeting April 23rd & Operations Meeting April 30th Council Hearing Week of May 5th

Finance

Common Budget

Adoption May 14th

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Questions?
Questions can be submitted on the index cards provided Presentation will be posted on the Finance Page of the District Website

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