2017-18 proposed budget - gilbert public...

2017-18 Proposed Budget

Teddy DumlaoDirector of Finance

Tom WohlleberChief Financial Officer

June 13, 2017

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• October 4, 2016 Work Study (Capital Needs Overview)• November 9, 2016 Work Study (Salary Schedule Review)• December 6, 2016 Work Study (Proposition 206 Impact and Initial Budget Planning

Workshop)

• January 17, 2017 Work Study (Budget Projection Scenarios)• February 14, 2017 Work Study (Budget Planning Workshop and Capital Budget

Update)

• March 7, 2017 Work Study (Budget Planning Workshop)• April 11, 2017 Work Study (Budget Balancing Strategies)• May 9, 2017 Work Study (Operational Budget Review)

Average Daily Membership (ADM) based on CURRENT YEAR estimate/projection for the 2017-18 school year• Unweighted ADM 33,095 - decrease of 1,100 (from 2015-16)• Weighted ADM of 45,403 - decrease of 1,401 (from 2015-16)

M & O budget includes:• Inflationary increase of 1.31% in base level w/teacher comp

(from $3,681.09 to $3,721.31) • Estimated increase of $1,348,266 in budget capacity for the

recent state budget approved 1.06% teacher salary increase

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FY17 Revised Budget #2

FY 18 Proposed Budget

Revenue Control Limit (1) $184,916,311 $183,229,408M&O Override Amount 18,491,631 18,573,358Transfer to Capital (1,477,514) (1,100,000)Tuition Revenue 85,000 85,000Budget Balance Carryforward 6,679,718 2,000,000Energy & Water Savings Transfer (780,242) (780,000)Prop123 $50M Additional Funding 1,583,892 1,500,000M&O General Budget Limit Total (2) $209,498,796 $203,507,766(1) Includes ESTIMATED amount for the 1.06% teacher increase in FY18 (2) Does NOT include potential adjustment from ADM audit

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Eligibility and other criteria:• Teacher must have taught at GPS or another Arizona School District

or Charter School during the 2016-17 school year. New teachers or out-of-state teachers are not eligible for the increase in 2017-18.

• Substitute teachers or contracted teachers (i.e. SmartSchools) are NOT eligible for the 1.06% increase.

• Only the portion of the teacher’s salary coded to Function 1000 Instruction (in all funds including Classroom Site Fund) is eligible for the 1.06% increase (including stipends or any other payments correctly coded to Instruction).

• The 1.06% increase is based on the teacher’s eligible salary amount (whether part-time or full-time) from the 2016-17 school year.

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Approval, Verification and Payment Process:• The state will fund the 1.06% increase in eligible salaries as well

as the applicable amounts for ASRS and social security.• The Governing Board must hold a public hearing regarding the

allocation for the 1.06% increase when the budget is adopted as well as when budget allocation for the 1.06% increase is revised (no later than November 1st).

• The District must also notify its teachers of all public hearings and subsequent votes regarding the 1.06% increase.

• The District is responsible for verifying eligibility and salary amounts for both returning and new to the District teachers. The District will need to verify eligibility and eligible salary amount from 2016-17 with the teacher’s former district or charter school.

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Approval, Verification and Payment Process (continued):• The 2017-18 proposed budget reflects an initial estimate of the

increase needed for the 1.06% salary increase and related benefits. The budget for the increase will be updated/revised in October.

• The calculation of the cost of the 1.06% salary increase and related benefits is subject to the independent annual audit for FY18

• Any audit findings regarding a miscalculation must be reported to ADE and are subject to a budget correct as provided in ARS 15-915.

• The District is scheduled to receive payment from the state by December 1st.

• The tentative plan is to pay the 1.06% increase in a special payroll run in December.

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2017-18 Maintenance & Operations Expenditure Budget Additions

Expenditure Increase Description Amount- Staff Compensation Increase @ 0.75% ($1,275,000) - PROP 206 Minimum Wage Increase ($412,000)*- Health Insurance Trust Contribution Increase ($1,800,000)- New Finance Software Support Costs ($150,000)- Salary Schedule Adjustments ($120,000)- Estimated Teacher 1.06% Increase ($1,348,266)

*Does NOT include leave impact or salary compression impact

$5,105,266

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2017-18 Budget Balancing Strategies

DISTRICT DEPARTMENTS AmountStaff Reductions- Academic Services - 1.0 FTE ($25,000) - Facilities/Operations - 1.0 FTE ($35,000)- Finance - 3.5 FTE ($131,000)- Office of Superintendent - 1.0 FTE ($115,000)- Talent Management - 2.0 FTE ($86,000)- Technology - 3.0 FTE ($147,000)- Transportation - 6.75 FTE ($146,000)

$685,000

District Department Budget Reductions $528,000

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DISTRICT DEPARTMENTS - continued AmountOther Staff-Related Reductions- Reduce Transportation Mechanic Overtime ($25,000)- Smart School Savings ($295,000)

$320,000

Efficiency / Outsourcing / Other Expenditure Reductions- New Vehicle Efficiency - Transportation ($235,000)- Outsource Remaining Grounds Operations Except

Athletics ($138,000) - Cell Phone Expenditure Reduction ($20,000)

$393,000

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FUNDING SOURCE CHANGES Amount- 50% of WAN and Internet Costs to E-Rate Fund ($285,000) - 3.0 FTE ELL Positions to SEI Grant ($168,000)- Reduce Portion of School PD Funding from InstructionalImprovement Fund ($200,000)

- Move Remaining Portion of School PD Funding to Classroom Site Fund ($335,000)

- Move 7.0 FTE CTE Teachers and HS Vocational Stipends toVocational Education Fund ($500,000)

- Move Portion of M&O Funded Staff (TBD) to FederalMedicaid Reimbursement (MIPS) Fund ($2,500,000)**Short-term strategy

$3,988,000

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SCHOOL LEVEL AmountStaff Reductions- Reduce Substitute Budget by 10% ($170,000)- Reduction in Special Ed Paraeducator Hours ($22,000)- Eliminate Nursing Services Screening Team Model ($27,000)- High School Office Support Staff Re-alignment ($350,000)- Reduction in Classroom Teacher FTE - 22 FTE ($1,210,000)

$1,779,000

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Base Increase Amount ($3,559)Pay for Performance ($2,836)Teacher DevelopmentSchool Improvement (SIC)TOTAL

$ 8,400,000$ 6,694,000$ 335,000$ 261,000$15,690,000

Projected FY18 Per Pupil Amount: $386 (includes $19 in one-time funding)

Projected FY18 Expenditures by Category:

Projected FY18 Budget Limit: $17,043,046

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Class size relief $ 900,000Curriculum/InstructionSchool-based PD from FY17 Carry-Forward

$ 450,000$ 150,000

TOTAL $1,500,000

Instructional Improvement Fund (020) Expenditures:

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Funding Utilization per A.R.S. 15-259.08(2)(c):FY18 Funding Allocation: Pending from ADE

• Funds shall be allocated directly to the school site that generated the results-based funding

• Majority of funds shall be used for teacher salaries, to hire teachers and to provide teacher development

• Portion of funds may be used for the expansion and replication of that school site as a quality school model to:

• Sustain and replicate results• Serve more students on a waiting list at a school with a letter

grade designation of “A” or “B”• Increase salaries for teachers, other classroom staff and school

leaders closing the achievement gap in high-poverty schools

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Estimated End Cash Balance 6/30/2017 $ 300,000Estimated 2017-18 RevenueEstimated Total AvailableEstimated FY 2016-17 Expenditures to cover property damage and deductibles beyond insurance coverageEstimated Ending Balance

$ 100,000$ 400,000$ 115,000

$ 285,000

A.R.S. 15-1103

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Capital (DAA) Formula $2,000,592Transfer from M & OFY16 Projected Carry-Forward

$1,100,000$ 900,000

TOTAL $4,000,592

Capital (610) Funding Sources:

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Governing BoardDistrict AthleticsHealth/Nursing ServicesFacilities/OperationsFinance/Business ServicesTalent ManagementAcademic Services - CurriculumAcademic Services - AssessmentAcademic Services - On-line/Blended LearningTechnologyTOTAL

$ 9,000$ 40,000$ 10,000$ 550,000$ 303,392$ 45,000$1,005,500$ 437,700$ 150,000$1,450,000$4,000,592

Capital (610) Expenditures:

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Maintenance & Operation

62%

Instructional Improvement

1%Structured English 0%

Classroom Site5%

Federal Projects4%

State Projects0%

Capital1%

Debt Service6%

School Plant Fund0%

Auxiliary Operations1%

Bond Building10%

Food Service4% Other

6%

Fund Budget AmountMaintenance & Operation 203,507,766$ Instructional Improvement 1,500,000$ Structured English Immersion 259,742$ Classroom Site 17,043,046$ Federal Projects 14,402,869$ State Projects 495,713$ Capital 4,000,592$ Debt Service 20,663,044$ School Plant Fund 38,000$ Auxiliary Operations 2,600,000$ Bond Building 31,320,000$ Food Service 11,816,000$ Other 18,363,500$

Sheet1

FundBudget Amount

Maintenance & Operation$ 203,507,766

Instructional Improvement$ 1,500,000

Structured English Immersion$ 259,742

Classroom Site$ 17,043,046

Federal Projects$ 14,402,869

State Projects$ 495,713

Capital$ 4,000,592

Debt Service$ 20,663,044

School Plant Fund$ 38,000

Auxiliary Operations$ 2,600,000

Bond Building$ 31,320,000

Food Service$ 11,816,000

Other$ 18,363,500

Budget Amount

Structured English [PERCENTAGE]

Maintenance & OperationInstructional ImprovementStructured English ImmersionClassroom SiteFederal ProjectsState ProjectsCapitalDebt ServiceSchool Plant FundAuxiliary OperationsBond BuildingFood ServiceOther20350776615000002597421704304614402869495713400059220663044380002600000313200001181600018363500

Sheet2

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2016-17 (FY 17)

2017-18 (FY 18)

Primary Tax Rate 4.862 4.306Secondary Tax Rates: M & O Override 1.029 0.985 Bonds 1.047 1.133Secondary Tax Rate 2.076 2.118Overall Tax Rate 6.938 6.424**Estimated

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

FY 12 FY 13 FY 14 FY 15 FY 16 FY 17

Primary AssessedValuations

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4.09 4.395.21 5.25 4.86 4.31

3.11 2.742.02 1.19 2.08

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FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

Primary Secondary

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2017-18 proposed budget - gilbert public...

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