AUSTIN INDEPENDENT SCHOOL DISTRICT FY 2011-12 PRELIMINARY BUDGET

Presentation to the AISD Board of Trustees Meria Carstarphen, Superintendent Nicole Conley-Abram, CFO

February 28, 2011

FY2012 Preliminary Budget Overview Funds O er iew of F nds
1

FUND General Food Service Debt Service Sub-total *Special Revenue *Construction

FY2011 FY2 $837,974,727 $38,191,974 $85,618,820 $961,785,521 $114,581,234 $107,855,000

FY2012 FY2 2 $796,243,743 $39,849,762 $95,406,909 $931,500,414 $80,000,000 $64,000,000

$ CHANGE ($41,730,984) $1,657,788 $9,788,089 ($30,285,107) ($34,581,234) ($43,855,000)

% CHANGE -4.98% 4.34% 11.43% -3.15%

TOTAL $1,184,221,755 RESOURCES

$1,075,500,414

($108,721,341)

*These amount reflect the estimated budget for the Special Revenue fund is usually not available until at the time of adoption since grant awards are not finalized until June. The Construction Fund represents the unspent balances of the previous year.

Budget Basics: Overview of Funds 2011/12 (I l di Ch t 41) (Including Chapter
2

Food Service Fund 4% Chapter 41 12%

Debt Service Fund 10%

General Fund 74%

2

3

AISD Has Paid $1.3 Billion to State in Chapter 41 P Ch Payments Since 2000/01 Si
Chapter 41 Payments FY2001-FY2012
1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0

Total Budget

Chapter 41 Payments

Preliminary Budget Assumptions y g p
4

   

State cuts of $79,118,408 $ , , Enrollment increase of 687 students. Collectability rate remains at 97.8%. No salary increases. Possible two-day unpaid furlough for all employees. Proposing various savings/reductions that total $ / $62.8 million to close the gap and implement a small portion of the strategic p plan.

Preliminary Budget Assumptions cont. y g p
5
   

Decrease in Net Taxable Value of 1% from 2010 to 2011. M & O tax rate remains at $1.079/$100 taxable value. I & S tax rate increase of one and half cents: $0.163/$100 taxable value. Local Option Maintain the local over 65 exemption of $25 000 in addition to the Option$25,000 State required $10,000 Disabled Exemption- Maintain the local disabled exemption of $15,000 in addition to the State required $10 000 $10,000 Historical Designated Property Exemption- Due to minimal impact to district after recapture, restoration of the historical exemption:

Owner Occupied: partial exemption of 50% of the structure and 25% of the O O i d ti l ti f f th t t d f th land with a cap of $2,000 or 50% of the District levy, whichever is greater. Income Producing: partial exemption of 25% of the structure and 12½% of the land with no cap cap.

6

Budget Overview: General Fund R G l F d Revenue
Revenue Source Local State Federal Less: Recapture 127,815,376 107,884,251 (19,931,125) -15.59% FY 2011 Adopted Budget 628,727,327 172,890,382 36,357,018 Total 837,974,727 Preliminary FY2012 Budget 626,307,193 111,279,442 15,287,000 752,873,635 $ Change (2,420,134) (61,610,940) (21,070,018) (85,101,092) % Change -0.38% -35.64% -57.95% -10.16% 10.16%

Operating Revenue

710,159,351

644,989,384

-65,169,967

-9.18%

7

Budget Basics: FY 2011-2012 General F dR Fund Revenue (I l d Ch (Includes Chapter 41)
State Sources 15% Federal Sources 2%

Local Sources 83%

FY2012 Preliminary Budget Assumes Modest G th i E ll M d t Growth in Enrollment t
8

Historical and Estimated Enrollment, ADA, and WADA
105,000 100,000 95,000 90,000 84,996 85,000 80,000 75,000 70,000 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Est. 74,212 74,622 75,606 82,063 82 063 82,739 83,033 77,963 78,586 98,517 98,596 99,654 101,995 102,809 103,630

86,161

86,848

77,346

WADA

Enrollment

ADA

8

Limited Growth in Property Taxable Values
9

$70 00 $70.00 $65.00 $60.00 $55.00 $50.00 $45.00 $40.00 $35.00 $35 00

Projected Taxable Values- 2004/05 Thru 2012/13 Values
$63.91 $61.15 $54.74 $48.47 $42.07 $61.57 $60.96 $61.26

$39.89

9

FY2012 Preliminary Budget Proposed T Rates P d Tax R t
10

FY2011 M&O Rates One Cent Yields $1.079 $5.8 million

FY2012 Preliminary M&O $1.079 $5.7 million

FY2011 I&S $0.148 $5.8 million

FY2012 Preliminary I&S $0.163 $5.7 million

 Note: Recapture claims approximate 40% of M&O 40% taxes above $1.06. Any increase in M&O requires voter approval. l

Maintenance & Operations Tax Rate
11

$ $1.00 0.04

= =

Compressed rate p Golden pennies
● no voter approval required ● not subject to recapture

0.02

=

Silver Pennies
● voter approval required ● not subject to recapture

0.11

=

Copper pennies
● voter approval required ● subject to recapture

$1.17 $1 17

Max. Rate Allowed M R t All d
11

Where the Tax Money Goes: General Fund Expenditures ( G l d d (Less Chapter 41) Ch 4 )
12

Functional Area Instruction Instructional Resources & M di S i I t ti lR Media Services Curriculum & Staff Development Instructional Administration School Ad i i t ti S h l Administration Guidance & Counseling Services Attendance & Social Work Services Health Services H lth S i Pupil Transportation Co-Curricular Activities Subtotal I t S bt t l Instruction and Student Support ti d St d t S t

FY 2012 Preliminary Budget 406,216,915 11,305,346 11 305 346 15,213,631 8,763,708 46,541,443 46 541 443 19,065,887 3,156,238 5,947,967 5 947 967 24,301,216 13,263,004 553,775,355 553 775 355

% of Budget 59.0% 1.6% 1 6% 2.2% 1.3% 6.8% 6 8% 2.8% 0.5% 0.9% 0 9% 3.5% 1.9% 80.4% 80 4% 12

Where the Tax Money Goes: cont… General Fund Expenditures ( G l d d (Less Chapter 41) Ch 4 )
13

Functional Area General Administration Community Services Subtotal Central & Community Services Plant Maintenance Security & Monitoring Services Data Processing Services Facilities Acquisition & Construction Payments-Shared Services Arrangements Debt Services Other Intergovernmental Charges Subtotal Operations & Infrastructure Grand Total

FY 2012 Preliminary Budget 17,336,384 4,433,664 21,770,048 77,478,180 9,858,914 17,158,446 1,320,204 1,233,902 1,046,903 4,717,540 112,814,089 688,359,492

% of Budget 2.5% 0.6% 3.2% 11.3% 1.4% 2.5% 0.2% 0.2% 0.2% 0.7% 16.4% 100.0% 13

Budget By Object (less recapture) g y j ( p )
14 Other Operating Costs 0.74% Materials and Supplies M i l dS li 3.91% Debt Service 0.15% Capital Outlay 0.02%

Purchased and Contracted Services 7.97%

Payroll Costs 87.21%

15

Closing the Budget Gap g g p

FY2012 Budget Crisis g
16  

Budget shortfall currently projected at $94.4 million Depending on the methodology, State cuts to AISD could increase the $94.4 million deficit for AISD by $45M to $103M depending on the methodology used by the State AISD is Proposing reductions/savings that total $ $62,849,533 AISD is exploring all options to close gap the remaining gap of $31 5M $31.5M Budget crisis will continue for at least a biennium or two Budget crisis is due to lower local property taxes, loss of one-time federal funding, d f di and potentially up to $10 billi l i state funding i ll billion less in f di District is maintaining a strong focus on classroom instruction and student success

   

The Impact of State Budget Cuts p g
17

State Cuts to Education $2 Billion Projected j Expenditures Projected Revenue $ $842,252,602 , , $830,870,300

State Cuts to Education $4 Billion $ $842,252,602 , , $830,870,300 ($11,382,302) $ ($79,118,408) ($3,871,304) ($3 871 304) ($94,372,014)

State Cuts to Education $5 Billion $ $842,252,602 , , $830,870,300 ($11,382,302) $ ($98,898,010) ($3,871,304) ($3 871 304) ($114,151,616)

Shortfall ($11,382,302) $ Projected State Cuts ($39,558,345) Required Increases Deficit ($3,871,304) ($3 871 304) ($54,412,924)

AISD is preparing a FY2012 preliminary budget assuming a deficit of $94.4 million.

18

It Still Could be Worse: State Methods to Cut C t
Proportional Cut to all School Districts (Best Case Scenario) $2 Billion $4 Billion $5 Billion $39,558,345 $79,118,408 $ 98,898,010 No ASATR /Hold Harmless (Target Revenue is capped) $124,191,179 $174,195,628 $174,193,767 Proration

$73,123,805 $152,561,567 $181,879,037

AISD is preparing a FY2012 preliminary budget assuming State i i li i b d t i St t reductions of $79.1 million.

The State Funding Crisis g
19

$5 billion Cut under Proration $4 or $5 billion Cut that caps Target Revenue $4 billion Cut under Proration $2 billion Cut that caps Target Revenue Estimated Gap

$181.9

Adds $102.8M

$174.2

Adds $95.1M

$152.6 $124.2 $79.1 Potential State Cuts

Adds $735.M

Adds $45.1M $45 1M

Proposed Options to Close the Gap p p p
20

  

Proposed reductions/savings total $ $62,849,533 Reductions will affect virtually every area of the system Leverages recommendations from both the budget survey and the recommendations from the TASB staffing review Attempts to realize greater efficiencies in staffing; and areas like fuel, energy facilities and transportation The Board is scheduled to take action on the Declaration of Financial Exigency on Feb 28th to effectuate a Reduction In Force of 1,104 FTEs as a result of gap closing actions and expiring Grant funds Reductions will need to be implemented over the next two years as Austin cannot absorb reductions beyond $75M in a single fiscal year

Highlights of Affected Areas g g
21

Class sizes/Workload/Program Design:  Class size increase by two pupils in grades Pre-k thru 4th  Teacher workload increase to 174 at secondary campuses  Reduction of Parent Support Specialists (shared service model)  Changing the model for Librarians at secondary campuses Programmatic Reductions:  Reducing summer school programming to mandatory requirements  Reading and transition programs for at-risk students  Reducing interventions for struggling schools  Athletics reduction of 5%  Reducing Professional Development days Employees will share the burden as we could face higher contributions for health, two unpaid furlough days, a reduction in leave days and elimination of bonuses

Managing the State Funding Crisis and Closing the Gap
22

To Be Determined Energy and Operational Efficiencies Reduce Encumbrances EOY Redesign Schools & Facilities Dept and Staff Reductions Furloughs/ Health / Leave/Hardship Campuses and Staff Reductions 31,522,481
2,070,000 2,500,000 3,600,000

10,676,373 14,150,000

29,853,160

Closing the Gap

Proposed Staffing Reductions p g
23

Gap Reduction (School Based) 627 FTEs Gap Reduction (Central) 48 FTEs Reorganization-Central 88 FTEs Expiring Grants p g 341 FTE Total 1,104 FTEs

Dependencies Within Gap Closing Option O ti
24

Item Increase class size at Elementary by 2 pupils (1:24, k thru 4) ( ) (State waiver and legislative change required) g g q ) Two day furlough (requires statute change; may need add'l days) Leave accrual reduction (2 days) (policy change required)

Savings $9,810,000 $4,200,000 $750,000 Total $ $14,760,000

DRAFT—For discussion purposes only.

AISD May Need to Use $31M to All of its Fund Balance
25

 

Projected year end unobligated fund balance for YE 2011 is $140M Since we did not fully resolve the gap of $94.4M, AISD will need to access $31.5M in fund balance If specific legislative actions are not approved, it would increase AISD’s use of fund balance to $46.3M. If the State uses a wealth based approach to pass on school district cuts, AISD could experience add’l reductions of $45M to $103M on top of the $94.4M, which would essentially deplete the District’s fund balance Accessing Fund balance beyond $15M will put AISD at a dangerous level and corrective actions will need to me taken so that its bond rating is maintained i t i d Since accessing fund balance is a one-time option, significant cuts would also need to be made in FY2013 to stabilize the budget

26

Proposed Program Changes and Budget I B d t Increases

Baseline Budget Increases g
27

The following baseline budget increases are needed to maintain continuity of current operations.
Item Allocation for enrollment growth Net increase for full day Pre-k Start up Start-up costs for Linder Early Childhood Tax collection and appraisal fees Natural Gas increases TOTAL Amount $3,500,000 $ $4,225,000 $250,000 $300,000 $400,000 $ 8,675,000

DRAFT—For discussion purposes only.

Required and/or Critical Budget Increases q / g
28
Item Fund Project Lead the Way Programs at Ann Richards Partially fund four person PPCD year round evaluation team Meet mandatory requirements with IDEA part B and C for increasing auditory impaired students population English Language Development Academy for Webb and Garcia Middle School. This p g program was p previously funded by ARRA Funds y y Transition to the one-way dual language program model at 70 out of 80 elementary campuses Funds for retakes for students that fail end-of-course assessment Sustain Gang Specialist School Resource Officer after grant funding ends in August 2011 pp Funds to support Title V losses for Alternative Academic Counselor, Invest and Positive Families Program, Palmer Drug Abuse Program Mandatory Instructional Requirements for Education Services Provided in a Juvenile Residential Facility Early College & Early College Start at LBJ Funds to continue AVID program after ARRA expires Development of new software tool to replace the impact system for drop-out prevention Funds to support the Laying the Foundation Program as per Dell grant requirements Support for expiring ACCESS grant to continue School to Community Liaisons and youth services mapping. pp g y Maintenance Fee for currriculm and assessment mapping system Seton Hall Nursing Services Increase Amount $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total $ 25,500 100,650 137,842 500,000 , 189,997 194,250 64,149 134,209 110,000 760,000 870,000 120,000 150,000 215,680 163,974 , 135,053 3,871,304

DRAFT—For discussion purposes only.

Actions that are not be Reflected in the Preliminary B d t P li i Budget
29

Item Two unpaid Furlough Days Reduction in Leave by two days Pending State action Pending Board action

Amount $4,200,000 $750,000 $3,000,000

Redesign up to five schools and two Affected budgets not vertical teams, accelerate closures (up yet identified to 3), consolidations and boundary 3) adjustments to improve quality of educational programs Reduce E R d Encumbrance Carryover b C

Encumbrances will be $2 500 000 E b ill b $2,500,000 identified at year-end

Total $10,450,000
DRAFT—For discussion purposes only.

Out-Year Challenges Ahead
30 AUSTIN INDEPENDENT SCHOOL DISTRICT General Fund Forecast For S School Year 2011 2012 through 2013 14 2011-2012 2013-14 Combined Statement of Revenues, Expenditures by Function, and Changes in Fund Balance 2010 ‐ 2011  2011‐2012  Adopted Preliminary Budget 837,974,727 837 974 727 752,873,635 752 873 635 ($127,815,376) ($107,884,251) $710,159,351 $644,989,384 716,415,351 (44,000) $716,459,351 ( ($6,300,000) ) 688,359,492 (30,000) $688,389,492 ( ($43,400,108) ) $2,500,000 $172,135,096 $165,835,096 $165 835 096 ($25,768,806) $140,066,290 $165,835,096 $124,934,988 $124 934 988 ($26,000,000) $98,934,988 $124,934,988 $86,675,959 $86 675 959 ($26,000,000) $60,675,959 $86,675,959 $52,021,247 $52 021 247 ($26,000,000) $26,021,247 2012‐2013  Forecast $746,461,189 $746 461 189 ($96,316,930) $650,144,259 $688,359,288 ($44,000) $688,403,288 ( ($38,259,029) ) 2013‐2014  Forecast $750,265,506 $750 265 506 ($96,316,930) $653,948,576 $688,559,288 ($44,000) $688,603,288 ( ($34,654,712) )

Total Revenues Less: Recapture Net Revenue Total Expenditures Net Other (Sources) Uses Total Expenditures and Other (Sources) Uses g Net Change in Fund Balances Reduce Encumbrance Carryover Fund Balances - September 1 (Beginning) Fund Balances - A F dB l August 31 (Ending**) t (E di **) Less Reserved Fund Balance Ending Fund Balance - Unreserved

Managing Out-Year Gaps and Needs g g p
31  

Estimated $40 million shortfall in FY2013 Implement remaining expenditure reductions
  

Transition to seven course day-$8.6M Possible Health Plan changes-$2.1M Transition to a community based Pre-k model-$TBD T iti t it b d P k d l $TBD One time restoration of fund balance only, does not close outyear budget gap How much: A five cent increase generates $15.5M net recapture, a nine cent increase would generate $27M net recapture. When: June/Aug 2012, Bond Election May 2013 What: Determine priorities that will be supported by TRE Strategic Priorities Target- $10-$13.5 million for FY2012 $33 million over the next three years

Implement Fiscal Year Changes to replenish Fund Balance

Call for Tax Ratification Election (TRE)
  

Advance Resource Development and Investment Strategy
 

Budget Milestones Going Forward g g
32

Community Conversations (March)
 

March 24th, Reagan HS March 31th, Bowie HS

April A il 11th R i d B d Revised Budget Presentation to Board P i B d April 25th Public Hearing on the Revised Budget May 30th End of Regular Legislative Session June 6th Recommended Budget Presentation to Board June 13th Public Hearing on the Recommended Budget June 20th Board Adopts 2011-2012 Budget Aug 30th Board Adopts Tax Rate and FY2012 Budget Amendments

Sign up to vote on this title
UsefulNot useful