Austin ISD FY2012 Preliminary Budget Presentation

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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

verv ew o un s1

FUND FY2011 FY2012 CHANGE CHANGE

General $837,974,727 $796,243,743 ($41,730,984) -4.98%

Food Service $38,191,974 $39,849,762 $1,657,788 4.34%

Debt Service $85,618,820 $95,406,909 $9,788,089 11.43%

Sub-total $961,785,521 $931,500,414 ($30,285,107) -3.15%

*Special Revenue $114,581,234 $80,000,000 ($34,581,234)

*Construction $107,855,000 $64,000,000 ($43,855,000)

*These amount reflect the estimated budget for the Special Revenue fund is usually not available until at the time of adoption

TOTALRESOURCES

$1,184,221,755 $1,075,500,414 ($108,721,341)

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

nc u ng ap er

Debt Service

2

Food ServiceFund4%

Fund10%

Chapter 4112%

74%

2



AISD Has Paid $1.3 Billion to State in

apter ayments nce3

Chapter 41 PaymentsFY2001-FY2012

600,000,000

800,000,000

200,000,000

400,000,000

0

Total Budget Chapter 41 Payments



Preliminar Bud et Assum tions4

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

plan.



Preliminar Bud et Assum tions cont.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.

- ,

State required $10,000

Disabled Exemption- Maintain the local disabled exemption of $15,000 in ,

Historical Designated Property Exemption- Due to minimal impact to district after

recapture, restoration of the historical exemption:

wner ccup e : par a exemp on o o e s ruc ure an o 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

.



Budget Overview:

enera un evenue6

FY 2011

Revenue Source

Adopted

Budget

Preliminary

FY2012 Budget $ Change % Change

Local 628,727,327 626,307,193 (2,420,134) -0.38%

State 172,890,382 111,279,442 (61,610,940) -35.64%

Federal 36,357,018 15,287,000 (21,070,018) -57.95%

Total 837 974 727 752 873 635 85 101 092 -10.16%

Less:

Recapture 127,815,376 107,884,251 (19,931,125) -15.59%

Operating

Revenue 710,159,351 644,989,384 -65,169,967 -9.18%



Budget Basics: FY 2011-2012 General

un evenue nc u es apter7

State Sources Federal Sources

Local Sources83%



FY2012 Preliminary Budget Assumes

o es row n nro men

Historical and Estimated Enrollment, ADA, and WADA

8

98,517 98,59699,654

101,995

102,809103,630

100,000

105,000

82,739 83,03384,996

86,161 86,848

85,000

90,000

95,000

,

74,212 74,62275,606

77,346 77,963 78,586

75,000

80,000

70,000

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Est.

8

WADA Enrollment ADA



-

9

$61.15$63.91 $61.57 $60.96 $61.26

$60.00

$65.00

.

$48.47

$54.74

$50.00

$55.00

$39.89$42.07

$40.00

$45.00

.

9



FY2012 Preliminary Budget

ropose ax a es10

FY2011

M&O

FY2012

PreliminaryFY2011

I&S

FY2012

Preliminary

Rates $1.079 $1.079 $0.148 $0.163

One Cent Yields $5.8 million $5.7 million $5.8 million $5.7 million

Note: Recapture claimsNote: Recapture claims approximate 40approximate 40% of M&O% of M&O

taxes above $1.06. Any increase in M&O requires votertaxes above $1.06. Any increase in M&O requires voter

approva .approva .



Maintenance & Operations Tax Rate

1.00 = Com ressed rate

11

0.04 = Golden pennies● no voter approval required

● not subject to recapture

0.02 = Silver Pennies

● not subject to recapture

0.11 = Copper pennies

● voter approval required

● subject to recapture

11

. ax. a e owe



Where the Tax Money Goes:

General Fund Expenditures (Less C apter 41)12

Functional Area

FY 2012 Preliminary

Budget % of Budget

Instruction 406,216,915 59.0%

ns ruc ona esources e a erv ces , , .

Curriculum & Staff Development 15,213,631 2.2%

Instructional Administration 8,763,708 1.3%c oo m n s ra on , , .

Guidance & Counseling Services 19,065,887 2.8%

Attendance & Social Work Services 3,156,238 0.5%

ea erv ces , , .

Pupil Transportation 24,301,216 3.5%

Co-Curricular Activities 13,263,004 1.9%

12

u o a ns ruc on an u en uppor , , .



Where the Tax Money Goes: cont…

General Fund Expenditures (Less C apter 41)13

Functional Area

Budget % of Budget

General Administration 17,336,384 2.5%

Community Services 4,433,664 0.6%

Subtotal Central & Community Services 21,770,048 3.2%

Plant Maintenance 77,478,180 11.3%

Security & Monitoring Services 9,858,914 1.4%

Data Processing Services 17,158,446 2.5%

Facilities Acquisition & Construction 1,320,204 0.2%

Payments-Shared Services Arrangements 1,233,902 0.2%

Debt Services 1 046 903 0.2%

Other Intergovernmental Charges 4,717,540 0.7%

Subtotal Operations & Infrastructure 112,814,089 16.4%

13

Grand Total 688,359,492 100.0%



Bud et B Ob ect less reca ture14

Other Operating Costs0.74%

Debt Service 0.15%

Purchased and

Materials and Supplies3.91% Capital Outlay 0.02%

7.97%

Payroll Costs87.21%



15

Closin the Bud et Ga



FY2012 Bud et Crisis16

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

.

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

un ing, an potentia y up to i ion ess in state un ing District is maintaining a strong focus on classroom instruction and student

success



The Im act of State Bud et Cuts17

State Cuts to State Cuts to State Cuts to

Education

$2 Billion

Education

$4 Billion

Education

$5 Billion

Pro ected 842 252 602 842 252 602 842 252 602

Expenditures

Projected Revenue $830,870,300 $830,870,300 $830,870,300

Shortfall ($11,382,302) ($11,382,302) ($11,382,302)

Projected State Cuts ($39,558,345) ($79,118,408) ($98,898,010)

, , , , , ,

Deficit ($54,412,924) ($94,372,014) ($114,151,616)

deficit of $94.4 million.



It Still Could be Worse: State Methods to

ut18

all School Districts(Best Case Scenario)

Harmless (TargetRevenue is capped)

$2

Billion

$39,558,345 $124,191,179 $73,123,805

$4

Billion

$79,118,408 $174,195,628 $152,561,567

$5Billion

$ 98,898,010 $174,193,767 $181,879,037

s prepar ng a pre m nary u ge assum ng a e

reductions of $79.1 million.



The State Fundin Crisis19

$181.9$5 billion Cut underProration

Adds $102.8M

$174.2

caps Target Revenue

$4 billion Cut under

Adds $95.1M

124.2

$152.6$2 billion Cut that capsTarget Revenue

Adds $735.M

$79.1

Estimated Gap

.

o en a a e u s



Pro osed O tions to Close the Ga Proposed reductions/savings total $ $62,849,533

20

Reductions will affect virtually every area of the system Leverages recommendations from both the budget survey and the

recommen a ons rom e s a ng rev ew

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 asAustin cannot absorb reductions beyond $75M in a single fiscal year



Hi hli hts of Affected Areas Class sizes/Workload/Program Design:

21

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



Managing the State Funding Crisis and

22

31,522,481

Energy and OperationalEfficiencies

10,676,373

3,600,0002,500,0002,070,000

Reduce EncumbrancesEOY

Redesign Schools &

14,150,000Dept and StaffReductions

Furloughs/ Health /

29,853,160Leave/HardshipCampuses and StaffReductions

Closing the Gap



Pro osed Staffin Reductions23

Gap Reduction (Central) 48 FTEs

Reorganization-Central 88 FTEs

Ex irin Grants 341 FTETotal 1,104 FTEs



Dependencies Within Gap Closing

p on24

Increase class size at Elementary by 2 pupils (1:24, kthru 4) (State waiver and legislative change required)

$9,810,000

Two day furlough (requires statute change; may need

add'l days)

$4,200,000

Leave accrual reduction (2 days) (policy change

required)

$750,000

Total 14,760,000

DRAFTFor discussion purposes only.



AISD May Need to Use $31M to All of its

u Projected year end unobligated fund balance for YE 2011 is $140M

25

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’suse 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 leveland corrective actions will need to me taken so that its bond rating isma nta ne

Since accessing fund balance is a one-time option, significant cuts wouldalso need to be made in FY2013 to stabilize the budget



26

Proposed Program Changes and u ge ncreases



Baseline Bud et IncreasesThe following baseline budget increases are needed to maintain

27

Item Amount

continuity of current operations.

Allocation for enrollment growth $3,500,000

Net increase for full day Pre-k $4,225,000

Start-u costs for Linder Earl Childhood 250 000

Tax collection and appraisal fees $300,000

Natural Gas increases $400,000

TOTAL $ 8,675,000




Required and or Critical Budget Increases28

Item Amount

Fund Project Lead the Way Programs at Ann Richards 25,500$

Partially fund four person PPCD year round evaluation team 100,650$Meet mandatory requirements with IDEA part B and C for increasing auditory impairedstudents population 137,842$English Language Development Academy for Webb and Garcia Middle School. This

ro ram was reviousl funded b ARRA Funds 500,000$Transition to the one-way dual language program model at 70 out of 80 elementarycampuses 189,997$

Funds for retakes for students that fail end-of-course assessment 194,250$Sustain Gang Specialist School Resource Officer after grant funding ends in August

2011 64,149$Funds to support Title V losses for Alternative Academic Counselor, Invest and PositiveFamilies Program, Palmer Drug Abuse Program 134,209$Mandatory Instructional Requirements for Education Services Provided in a JuvenileResidential Facility 110,000$

Early College & Early College Start at LBJ 760,000$

Funds to continue AVID program after ARRA expires 870,000$

Development of new software tool to replace the impact system for drop-out prevention 120,000$Funds to support the Laying the Foundation Program as per Dell grant requirements 150,000$Support for expiring ACCESS grant to continue School to Community Liaisons andyouth services mapping. 215,680$

Maintenance Fee for currriculm and assessment ma in s stem 163 974$


Seton Hall Nursing Services Increase 135,053$

Total 3,871,304$



Actions that are not be Reflected in the

re m nary u geItem Amount

29

Two unpaid Furlough Days Pending State action $4,200,000Reduction in Leave by two days Pending Board action $750,000

Redesign up to five schools and two

vertical teams, accelerate closures (up

Affected budgets not

yet identified

$3,000,000

,

adjustments to improve quality of

educational programs

e uce ncum rance arryover ncum rances w e

identified at year-end

, ,




Out-Year Challenges Ahead

30

AUSTIN INDEPENDENT SCHOOL DISTRICT

General Fund

Forecast For School Year 2011-2012 through 2013-14

Combined Statement of Revenues, Expenditures by Function, and Changes in Fund Balance

2010 ‐ 2011

Adopted

2011‐2012

Preliminary Budget

2012‐2013

Forecast

2013‐2014

Forecast

, , , , , , , ,

Less: Recapture ($127,815,376) ($107,884,251) ($96,316,930) ($96,316,930)

Net Revenue $710,159,351 $644,989,384 $650,144,259 $653,948,576

Total Expenditures 716,415,351 688,359,492 $688,359,288 $688,559,288

Net Other (Sources) Uses (44,000) (30,000) ($44,000) ($44,000)

Total Expenditures and Other (Sources)Uses $716,459,351 $688,389,492 $688,403,288 $688,603,288

Net Change in Fund Balances ($6,300,000) ($43,400,108) ($38,259,029) ($34,654,712)

Reduce Encumbrance Carryover $2,500,000

Fund Balances - September 1 (Beginning) $172,135,096 $165,835,096 $124,934,988 $86,675,959

un a ances - ugus n ng , , , , , , , ,

Less Reserved Fund Balance ($25,768,806) ($26,000,000) ($26,000,000) ($26,000,000)

Ending Fund Balance - Unreserved $140,066,290 $98,934,988 $60,675,959 $26,021,247



Mana in Out-Year Ga s and Needs31

Estimated $40 million shortfall in FY2013

Implement remaining expenditure reductions

Transition to seven course day-$8.6M Possible Health Plan changes-$2.1M

rans t on to a commun ty ase re- mo e -

Implement Fiscal Year Changes to replenish Fund Balance

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 centincrease would generate $27M net recapture.

When: June/Aug 2012, Bond Election May 2013

What: Determine priorities that will be supported by TRE Advance Resource Development and Investment Strategy

Strategic Priorities Target- $10-$13.5 million for FY2012

$33 million over the next three years



Bud et Milestones Goin Forward32

Community Conversations (March)

March 24th, Reagan HS

March 31th, Bowie HS

Apri 11t Revise Bu get Presentation to Boar

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

Austin ISD FY2012 Preliminary Budget Presentation

Documents

Transcript of Austin ISD FY2012 Preliminary Budget Presentation