MPS Budget FY2007

1. MPS Budget FY2007 Principal Meeting February 2006

2. FY2007 Calendar • Jan. 26 -- School Board approved a budget calendar and received a report on projected revenues, school allocation process, etc. • Feb. 1 -- Allocations to schools. • Feb. 2 to March 15 -- School communities develop Budget plans in accordance with Educational Plan. • March -- MBSD Committee on Strategic Planning and Budget reviews key budget issues. • April 25 -- Superintendent presents District Budget to the Board. • April 25 - May -- Board reviews Budget and seeks public comment. • May 26 -- Board adopts Budget. • October -- Board finalizes Budget based on actual enrollments and revenue.

3. Projecting MPS Revenue • Projected enrollment is down 1.9% • Total projected =98,373 v. 100,262 (Fall 2005) • Growth in non-instrumentality charters and open enrollment is forecast with decreases in traditional MPS schools overall.

5. Operations Funds for Schools (in million $) • FY06 School Ops Fund $919.9 • Revenue Limit Inflation $ 14.9 • E-rate Reimbursement $ 1.2 • Applied Surplus (NSI) $ 0.9 • Misc. Revenue Changes $ (0.3) • FY07 School Ops Fund $936.6 • Less School Nutrition ($29.7) • Net School Operations $906.9

6. What the School Pot Funds • Traditional Schools • Instrumentality Charters • Non-Instrumentality Charters • Partnership Schools • Summer School • Grant Transitional • Open Enrollment • Allied Health Services • Other School Costs

7. FY 07 (as of Jan.2006) Net School Ops $906.9 Less Non-School Funding and Central Funding for Schools ($42.2) Allocation Base = $864.7 FY 06 (as of Oct. 2005) Net School Ops $890.2 Less Non-School Funding and Central Funding for Schools ($41.9) Allocation Base = $848.3 School Funds (contd.)

10. Issues Affecting School Funds Special Education Allocation is up $4.9 million Utility costs are up $5.4 million

11. Issues Affecting School Funds (contd) Transportation costs are up $3.4 million 10% increase in Open Enrollment costs $2.8 million

12. Total Impact $16.5 million

13. FY07 Change • $3 million in Title I for school based health personnel pilot program. • $3.8 million in savings from school closings are allocated per pupil. • Transportation zone savings of $800,000 are deducted from the transportation budget.

14. FY 07 Change Common teacher salary of $50,400 regardless of funding source or grade level.

15. Common Teacher Salary • Simplifies budget preparation. • Further honors the agreement with the MTEA to eliminate incentive to assign jobs based on salary level.

16. Average Teacher Salary

17. Impact on the Schools • Base Per Pupil funding changes range from +$167 to -$35. • Unsettled labor contracts - The chargeback for unsettled contracts is increased from $154 per pupil to $322 (FY05 = $231.05)

18. Impact on the Schools (cont’d) • Allied Health Services -- occupational and physical therapists and HCAs, previously funded in Special Services, are moved into a school account. This means $3.6 million less is distributed to schools, but has no real impact on purchasing power because it previously was a chargeback.

19. Impact on the Schools (cont’d) • SAGE support continues at $2,000 per pupil. • SAGE supplements & other CSR support continues at FY06 levels.

20. Impact on the Schools (cont’d) • K5-3rd grade positions at SAGE schools and centrally-funded CSR positions will be centrally-budgeted. • All but a few schools will have the same number of positions paid for in FY07 as they did in FY06 through a combination of SAGE and Board and ESEA funds. • The district also will continue to provide .5 classroom teachers to eligible non-SAGE schools. • MORE INFORMATION WILL BE PROVIDED IN THE SAGE SCHOOL BREAKOUT SESSION.

21. Central Services budgets will decrease by $1million Central Services Budgets (not including transportation or utilities) • FY07-- $82.6 million • FY06 -- $ 83.6 million • FY05 -- $ 88.6 million • FY04 -- $ 93 million • FY03 -- $ 105 million • FY02 -- $ 108 million • FY01 -- $ 109 million

22. Student Weights The methodology of assigning student weights was reviewed by administrators and a group of principals representing all grade levels. The consensus was that the weights appropriately reflect the more expensive contractual agreement for the middle school model and historical costs across the levels.

23. Pupil Weights & Allocations

24. FY 07 Calculation Total Fringe Benefits $316 million Divided by Total Salaries $516 million 61% FY 06 Calculation Total Fringe Benefits $297 million Divided by Total Salaries $487 million 61% Fringe Benefit Rate

25. Medical insurance costs are up 11%. While that is far more than inflation, it is less than the increases in recent years. Fringe Benefit Rate

26. A Note of Caution This is the second year of the state’s biennial budget, so state funding will probably be fairly predictable. Actions related to the cap on the Milwaukee Parental Choice Program could affect actual enrollments.

27. Reminders • Budget realistically –adequately fund substitutes and supplies • Feel free to ask questions - resource persons are available. • Reductions should be in line with core beliefs.

28. Core Beliefs • Children come first • Parents are valuable • Community partnership adds value • The classroom is the most important place in the school system • Central Services support student achievement • Leadership and accountability are keys to our success