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Guilford County Schools Budget Update Board of Education Retreat September 24, 2011 Presented by

Guilford County Schools Budget Update Board of Education Retreat September 24, 2011 Presented by Sharon Ozment, CFO. 2011-12 BUDGET. 2011-12 Budget Resolution = $659,554,304 Funding sources: State ($370.6M) Local ($183.0M) Federal ($45.1M) Capital Outlay ($4.0M)

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Guilford County Schools Budget Update Board of Education Retreat September 24, 2011 Presented by

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  1. Guilford County Schools Budget Update Board of Education Retreat September 24, 2011 Presented by Sharon Ozment, CFO

  2. 2011-12 BUDGET • 2011-12 Budget Resolution = $659,554,304 • Funding sources: • State ($370.6M) • Local ($183.0M) • Federal ($45.1M) • Capital Outlay ($4.0M) • Enterprise Funds: • Child Nutrition ($31.4M) • ACES (After School Care Enrichment Services) ($6.4M) • Special Revenue ($19.0M) 2

  3. 2011-12 BUDGET 3

  4. 2011-12 BUDGET 4

  5. 2011-12 BUDGET 5

  6. BUDGET REDUCTIONS/REDIRECTIONS • How we designate operating budget between schools and • administrative support services provided to schools • Obviously there are many ways one might go about this task • We opt to use a conservative approach based on the Uniform • Chart of Accounts (COA) established by NC Department of • Public Instruction (NCDPI) • The COA classifies expenditures into the following 5 purposes: • 5000 = Instructional Services • Includes the costs of salaries and benefits for teachers, instructional assistants, instructional leadership and support staff, as well as contracted instructional services, instructional supplies, materials, and equipment, professional development, and any other cost related to direct instruction of students. 6

  7. BUDGET REDUCTIONS/REDIRECTIONS • COA purpose codes (continued): • 6000 = System-Wide Support Services • These services provide administrative, technical, personal, and logistical support to facilitate, sustain, and enhance instruction such as: • Curriculum/instruction development services • Student services (i.e., media, guidance, health/safety) • Technology/information management services • Operational support: • Telecommunications • Printing/copying • Utilities • Custodial services • Transportation • Facilities planning, acquisition and development • Maintenance • Financial and human resources services • Student testing • Planning, research and program evaluation • Board of Education • Senior leadership (i.e. Superintendent, Cabinet) 7

  8. BUDGET REDUCTIONS/REDIRECTIONS • COA purpose codes (continued): • 7000 = Ancillary Services • Community/nutrition services • 8000 = Non-Programmed Charges • Unbudgeted funds • Indirect costs • Transfers to charter schools • 9000 = Capital Outlay • Expenditures for acquiring fixed assets, including land or • existing buildings, improvements of grounds, initial • equipment, additional equipment, and replacement of • equipment . • We designate expenditures coded to a 5000 series purpose • code as schools and all other expenditures as being • administrative support services provided to schools with one • exception, custodians (6540 purpose) are included in schools. 8

  9. 2011-12 BUDGET 9

  10. BUDGET REDUCTIONS/REDIRECTIONS • 2009-10 = $21.9M • Losses in State funding = $20.7M • Increase in employer’s hosp ins rate = $569K • 2008-09 = $4,157/Full-Time Equivalent (FTE) • 2009-10 = $4,527/FTE • Increase in employer’s retirement rate = $585K • 2008-09 = 8.14% • 2009-10 = 8.75% 10

  11. BUDGET REDUCTIONS/REDIRECTIONS • 2010-11 = $17.7M (in addition to 2009-10 reductions/redirections) • Losses in State funding = $10.4M • Increase in employer’s hosp ins rate = $1.5M • 2009-10 = $4,527/FTE • 2010-11 = $4,929/FTE • Increase in employer’s retirement rate = $682K • 2009-10 = 8.75% • 2010-11 = 10.51% • Strategic plan implementation/magnet revisioning = $892K • Increase in sustaining operations costs = $475K • Established a $3.7M reserve for operational expenses • Hold for possible add’l 1% state reversion in January 2011 or • Bank for 2011-12 budget 11

  12. BUDGET REDUCTIONS/REDIRECTIONS • 2011-12 = $24.3M (in addition to 2009-10 and 2010-11 reductions/redirections) • Losses in State funding = $10.6M • Increase in employer’s hosp ins rate = $3,225 • 2010-11 = $4,929/FTE • 2011-12 = $4,931/FTE • Increase in employer’s retirement rate = $2.7M • 2010-11 = 10.51% • 2011-12 = 13.12% • Increase in sustaining operations costs = $4.0M • Established a $10.7M reserve for operational expenses • $3.7M of the $10.7M is from 2010-11 reserve • Hold for possible 2011-12 state reversions and/or • Bank for 2012-13 budget 12

  13. BUDGET REDUCTIONS/REDIRECTIONS • 2011-12 (continued): • Identified $35.6M in potential reductions/redirections • Used $17.4M to address: • Losses in State funding • Increases in employer’s hosp ins & retirement rates • Increases in sustaining operations costs • Gave $4.7M back to schools: • +$3M in Weighted Student Formula (WSF) funds • (allocated WSF $ @ 75% in 2011-12 versus 69% in 2010-11) • +$1.7M from teacher allotment/class size adjustment • (did not increase class size by 0.25 students in grades K-12) • Reserved $10.7M for operational expenses • Removed $2.9M salary reduction from consideration • (-2 days pay for all GCS employees earning >=$35K) 13

  14. LOCAL FUNDS 14

  15. STATE FUNDS 15

  16. 2012-13 BUDGET DEVELOPMENT PHILOSOPHY • Maintain approach used in three previous fiscal years: • Use Board of Education’s Mission, Core Values and Strategic Plan – • Achieving Educational Excellence – to guide budget development • process • Reflect current and projected economic conditions and plan for • various potential funding scenarios • Fund strategic plan initiatives through budget reductions and/or • redirections or by seeking outside funding • Limit request for additional funds from County Commissioners • to sustaining operations cost increases not covered by other • significant reductions or redirections • Limit impact of budget reductions on the employment of existing • personnel 16

  17. 2012-13 STATE BUDGET OUTLOOK • Estimated impact to GCS based on FY12-FY13 biennium budget: • ($13.270M) one-time EduJobs funds used in 2011-12 • ($7.422M) projected losses in State funding for 2012-13 • +$0.915K increase in transportation costs for +5 instructional days • +$1.038M increase in employer’s hosp ins rate • 2011-12 = $4,931/FTE • 2012-13 = $5,192/FTE • +$0.421Kincrease in employer’s retirement rate • 2011-12 = 13.12% • 2012-13 = 14.31% • =($23.066M) subtotal • +$10.657M 2011-12 reserve for operational expenses • =($12.409M) Estimated impact to GCS • [$12.409M excludes Pre-K; GCS to fund 2011-12 Pre-K program with $3.7M NC Pre-K (formerly More at Four) $ and $2.7M one-time Title I $; GCS to revisit funding for 2012-13] 17

  18. CAPITAL OUTLAY FUNDS 18

  19. 2012-13 BUDGET DEVELOPMENT • Questions, • Answers and • Next Steps 19

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