Revised FY 2010 Operating Budget & Approved Economic Stimulus Package

1. Revised FY 2010 Operating Budget & Approved Economic Stimulus Package William R. Hite, Ed.D. Interim Superintendent of Schools PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

2. FY 2010 Financial Overview • On December 17th the Interim Superintendent proposed a budget of $1.67 billion. This budget produced over $106 million in savings, while maintaining resources to achieve our vision that all students graduate college and career ready. • Since that time the Board has held three public hearings, and three budget work sessions to gather public input and review budget material. • However on January 21st the Governor proposed a budget that was over $70 million lower than the proposed budget submitted by the Interim Superintendent. Therefore, a revised proposed budget is being presented tonight. 2 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

3. FY 2010 State Aid Revenue Changes • FY 2010 revenues decreased by -4.26% over FY 2009 revenues. This overall decrease was a result of the following state aid actions: • Overall Wealth increase of 4% over FY 2009. • Overall Enrollment decrease of over 900 students. • GCEI only funded at 30%. • Non-Public Placements is reduced from an 80/20 funding formula to a 50/50 funding formula. • Governor changed Supplemental formula from 1% to flat funding and included 100% of retirement payments in the calculation. 3 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

4. Other Revenue Changes • MOE Calculation increase of $1.9 million. • Rental of Buildings revenue increase of $1.2 million. • Use of Fund Balance increase of $2.5 million will be directed towards one time non-recurring costs. 4 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

5. FY 2010 Proposed and FY 2010 Revised Revenues 5 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

6. FY 09 Approved Operating Budget and FY 2010 Proposed Operating Budget • Below illustrates the difference between the FY 09 Approved Operating Budget and the FY 10 Proposed Operating Budget: 6 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

7. Economic Stimulus Package • PGCPS is projected to receive approximately $90 million in funding from this law. The funding will be distributed as follows: 7 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

8. FY 2010 Recommended Reductions • The table below illustrates additional recommended reductions by position type: 8 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

9. FY 2010 Recommended Reductions Continued • The table below illustrates other recommended reductions: 9 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

10. FY 2010 Recommended Reductions Continued • Even with the reductions that were presented we still require an additional $40.7 million in cuts. • After careful consideration we are recommending the following: • Additional Salary Lapse of $1.9 million. • Reduction of Half Year Increment of $9.1 million. • Furlough of $29.7 million. 10 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

11. Restoration from the Economic Stimulus Package • If PGCPS receives the discretionary funding of approximately $30 million from the economic stimulus package potential restorations in reductions can be considered. • If the Board chooses to consolidate 12 schools it could save approximately $10.1 million further restoring cuts to this revised budget. • The table below illustrates a proposed restoration of some of the reductions: 11 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org