austin isd fy2012 preliminary budget presentation
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8/7/2019 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
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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.
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Budget Basics: Overview of Funds 2011/12
nc u ng ap er
Debt Service
2
Food ServiceFund4%
Fund10%
Chapter 4112%
74%
2
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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
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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.
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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
.
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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%
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Budget Basics: FY 2011-2012 General
un evenue nc u es apter7
State Sources Federal Sources
Local Sources83%
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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
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-
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
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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 .
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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
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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 , , .
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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%
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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%
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15
Closin the Bud et Ga
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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
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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.
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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.
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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
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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
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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
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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
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Pro osed Staffin Reductions23
Gap Reduction (Central) 48 FTEs
Reorganization-Central 88 FTEs
Ex irin Grants 341 FTETotal 1,104 FTEs
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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.
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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
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26
Proposed Program Changes and u ge ncreases
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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
DRAFTFor discussion purposes only.
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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$
DRAFTFor discussion purposes only.
Seton Hall Nursing Services Increase 135,053$
Total 3,871,304$
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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
, ,
DRAFTFor discussion purposes only.
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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
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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
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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