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Budget 101

Budget 101. March 2011. STATE LEVEL. Fiscal 2012 budget is being crafted now.

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Budget 101

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  1. Budget 101 March 2011

  2. STATE LEVEL • Fiscal 2012 budget is being crafted now. • Latest House and Senate budget proposals being filed would allocate $5 billion less than current biennium, without raising taxes or using the state fund reserves. (With projected enrollment growth across the state and chances in property value, the cost to fully fund current law requirements for public ed would be approximately $10 billion short.)

  3. So What Does That REALLY Mean? • You have probably heard a variety of numbers from AISD about what our deficit could be. • If the state cuts “only” $2 billion from education – our projected shortfall in AISD would be $54 million. • If the state cuts $4 billion – our shortfall would be projected at $94 million. (These are the numbers the district is choosing to work with currently.) • If the state cuts $5 billion (the current House proposal) our shortfall in AISD would be $114 million. Even with best case numbers, AISD cannot absorb all the cuts in 1 year, so the proposal would be to spread the cuts over 2 years (when possible) and use some of the Fund Balance to offset the impact of these cuts.

  4. Where does the district’s money come from? • Federal Sources = 2% • Title funds • Federal Grants • State Sources = 15% • WADA (Weighted Average Daily Attendance) • State taxes • Allocations based on state budget decisions • Grants • Local Sources = 83% • Property taxes • Grants / business partnerships

  5. AISD FY2010 vs FY2011 Total Revenues $837,974,727 $752,873,635 Less Recapture (Chapter 41) $127,815,376 $107,884,251 Net Revenue $710,159,351 $688,989,384* (incl.$44M from Fund Bal.)

  6. Why is our Revenue down for 2011? • Lower local property tax revenue • Loss of one time federal funding • Significant cuts in State funding

  7. Chapter 41 (an aside) • Robin Hood system in place is a result of a 1984 lawsuit (Edgewood vs Kirby.) Texas was charged with using property taxes to fund education inequitably among school districts. • Any school district that is “property wealthy” (one where property tax wealth is in excess of $305,000 per weighted student) is a Chapter 41 district. Currently there are 135 Chapter 41 districts – we are one of those. • Since 2000/01 AISD has given $1.3 billion to the state as a Chapter 41 district.

  8. So what has the district been doing? • Cut 100+ Central Office positions (2009-10) • Implemented a Central Office hiring freeze (2009-10) • Became self-insured (2009-10) • Established fiscal and energy saving measures to reduce costs (2009-10) • Sought community input on potential cuts through public forums and surveys (2010-11) • Declared Financial Exigency • Implemented RIF • Developed a preliminary budget – includes spending down the district fund balance

  9. How does the proposed budget impact Baranoff? • Staffing was determined based on projected enrollment and 24:1 ratios for grades K-4 and 30:1 for grade 5. • PROJECTED ENROLLMENT = 909 (currently 879) • Kindergarten = 6* • First grade = 7* • Second grade = 7 • Third grade = 7 • Fourth grade = 7 • Fifth grade = 6* • Special Ed = 3 • Special areas = 1.84 Art, Music or PE each day

  10. Baranoff Elementary School Sources and Uses of Funds

  11. Hidden IMPACTS • District cuts will have to be made up at the campus level - for example: • Closing central warehouse where campuses get large quantity buying power means that campus purchases being made won’t have the benefit of the buying power anymore. This impacts instructional supplies, office supplies, paper, and custodial supplies- and those come from our campus funds. • Many departments currently pay for subs so teachers can attend during the week professional trainings. Those paid subs will no longer be available, so campuses will have to fund those training subs. (If teachers opt to attend on the weekend (if training is available on the weekend) then the campus will be required to pay a stipend. • Several sources of grant funds that supplemented campus funding for tutorials will no longer be available.

  12. Dates to keep in mind • Community Conversation – March 31 @ Bowie • April 11 – revised budget to AISD school board • April 25 – public hearing on the revised budget • May 30 – End of regular Texas Legislature Session • June 6 – recommended budget presented to board • June 13 – public hearing on recommended budget • June 20 – Board adopts 2011-2012 budget • Aug 22 – 1st day of the 2011-12 school year • Aug 30 – Board adopts tax rate and FY2012 budget amendments

  13. Realities • Based on the differences in timelines for when the state and districts must have budgets in place, next year will begin with things more in flux, and staffing adjustments will be slow in coming. • For some of the pieces of the potential proposed budget to be implemented, we will first need state approval (24:1 ratio.) • This is not a one year budget deficit challenge- there is an estimated $40 million shortfall for FY 2013. • The Facilities Master Plan will be a serious piece of future conversations. School closures will happen, but I anticipate there will also be boundary changes that may impact the entire district, also.

  14. And more realities • Adjustments to middle and high school course day may come which will impact elective options • Health Plan changes • Transition to a community based Pre-K model • Make another withdrawal from the Fund Balance • Possible Tax Ratification Election • A five cent increase generates $15.5 M net recapture; a nine cent increase would generate $27M net recapture.

  15. What should you do? • Stay informed. • Attend the Budget Community meeting at Bowie on March 31. • Visit the revised AISD website www.austinisd.org • New and revised website; lots of links and info will soon be available as the site revisions are completed. • Watch School Board meetings on cable channel 22 or streaming on the website. • Stay in touch with your legislative representatives. • Identify state representatives and senators at www.fyi.legis.state.tx.us

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