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CMS 2010-2011 Budget Update

CMS 2010-2011 Budget Update. March 10, 2010. CMS 2010-11Budget Update. 2. 2009-10 Adopted Current Expense Budget $1.14 Billion – Operating Funds 134,448 Projected K-12 Student Enrollment $8,483 Budgeted Cost Per Pupil (K-12). CMS 2010-11Budget Update. 3. CMS 2010-11 Budget Update. 4.

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CMS 2010-2011 Budget Update

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  1. CMS 2010-2011 Budget Update March 10, 2010

  2. CMS 2010-11Budget Update 2

  3. 2009-10 Adopted Current Expense Budget $1.14 Billion – Operating Funds 134,448 Projected K-12 Student Enrollment $8,483 Budgeted Cost Per Pupil (K-12) CMS 2010-11Budget Update 3

  4. CMS 2010-11 Budget Update 4

  5. CMS Budget Trends CMS 2010-11 Budget Update 5

  6. Sources of Revenue Trend CMS 2010-11 Budget Update 6

  7. CMS 2010-11 Budget Update 7

  8. Since 2006-07, CMS has: • Cut $161.3 million through reduction and redirections • Opened 19 new and/or replacement schools • Added more than 2.4 million additional square feet • Grown to more than 5,031 acres • Added more than 4,600 students • Increased student achievement in 24 of 25 areas tested CMS 2010-11 Budget Update 8

  9. CMS 2010-11 Budget Update 9

  10. How are we planning for the 2010-2011 budget? CMS 2010-11 Budget Update 10

  11. Framework for Budget Development Align resources to support Strategic Plan 2014 Keep strong academic focus coupled with data driven decision making Recognize and plan for the impact of the economic environment and employ sound fiscal management – respond to signals from state and local sources that funding may be limited Acknowledge uncertainty regarding expected funding levels from all sources, but be prepared for the worst Request funding from County for growth, sustaining operations and opening new schools Pay for Strategic Plan 2014 initiatives through budget reductions or redirections Establish flexibility in the budget to allow for various reduction levels CMS 2010-11 Budget Update 11

  12. Excerpts from earlier memo to County Department/Agency Directors (1/5/10) - Anticipate that there will be limited or no growth revenue for FY2011 Greatest challenge will continue to be juggling competing needs for county, debt and education services Possibility that departments/agencies will be asked to use existing resources to fund increased service demands Excerpts from more recent county budget update (2/16/10) - Best case scenario presented was no growth in revenues At best, departments can expect some services to be funded at current levels However, departments are planning for reductions ranging from 5-15% - not across the board cuts Departments and services will receive different reductions based on service priority and performance Local Budget Outlook CMS 2010-11 Budget Update 12

  13. Revenues through January are $35 million short of forecast of $11 billion Near the budget target due to $472 million of one-time collections from corporate taxpayers ($272 million more than budgeted) Final quarter of the fiscal year contains the majority of the forecast risk – unpredictability in corporate income tax payments and non-withholding personal income tax payments At this stage of the recovery economic signals remain mixed, yet most economist believe a sustainable recovery is underway State Budget OutlookIn the February 2010 General Fund Revenue Report and Economic Outlook, the Fiscal Research Division reported – CMS 2010-11 Budget Update 13

  14. Mounting budget pressures for remainder of 2009-10 and beyond as prolonged weaknesses in the economy affect revenue collections Budget included a 1 cent increase in the State’s sales tax rate Expenditures for Medicaid and other income assistance programs may exceed budgeted amounts A looming issue on the horizon will be the FY 2011-12 revenue picture DPI recently reported to State Board of Education Expecting an announcement lowering growth revenue projections for 2010-11 (budget anticipated a 3.2% revenue growth) State Budget Outlook CMS 2010-11 Budget Update 14

  15. Our crystal ball used to forecast revenue is extremely cloudy and uncertain We are facing another austere budget for 2010-11 Revenue growth from taxes and fees are slow to recover from the recession – at state level and locally –our two primary funding sources County is signaling that funding may not be available to cover growth, sustaining operations and opening new schools and may require a reduction in funding Reductions will be required to cover a $7.3 million increase in the state “discretionary reduction” planned in 2010-11 What does this mean for CMS? CMS 2010-11 Budget Update 15

  16. Lagging state revenues may require additional cuts in addition to those originally planned for 2010-11 – another 5% cut would equate to $31.8 million for CMS Preparations to address funding cliff anticipated in 2011-12 of $47 million must begin Budget alignment to Strategic Plan 2014 and employing the strategic use of resource strategies gleaned from ERS work will be essential Emphasis must be on making education a priority at all levels What does this mean for CMS? CMS 2010-11 Budget Update 16

  17. 2010-11 Budget Scenarios 1-2 ($ in millions) CMS 2010-11 Budget Update 17

  18. 2010-11 Budget Scenarios 3-4 ($ in millions) CMS 2010-11 Budget Update 18

  19. 2010-11 Budget Scenarios 5 ($ in millions) CMS 2010-11 Budget Update 19

  20. 2010-2011 Budget Calendar Key Dates CMS 2010-11 Budget Update 20

  21. Questions? Conclusion 219

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