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2011-2012 Superintendent’s Budget

Presentation for Providence School Board

April 25, 2011

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Budget Drivers

• Student Achievement– Class size, curriculum development, professional development, classroom

materials, extracurricular activities, smaller learning communities, common planning time, standards, and assessments

• Available Funding from State and City

• Changes to School Enrollment

• Labor Contract Obligations– Salaries, Benefits, Class Size

• Employee Retirement Contributions– State– Local

• Vendor Contract Obligations– Transportation– Custodial and maintenance– Outside tuitions

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Local Budget Comparison FY 2011 to FY 2012

FY2011 FY2012REVENUES BUDGET PROJECTED VARIANCE

STATE REVENUE (UNRESTRICTED) $171,879,397 $175,231,822 $3,352,425 STATE STABILIZATION FUNDING 4,596,217 4,393,245 (202,972)FUNDING FORMULA 0 6,365,547 6,365,547 JOBS FUNDING 0 (8,683,552) (8,683,552)CITY REVENUES 124,896,611 124,896,611 0 MEDICAID REIMBURSEMENT 4,250,000 4,250,000 0 INDIRECT COST 1,700,000 1,700,000 0 OTHER REVENUES 585,000 585,000 0

307,907,225 308,738,673 831,448

EXPENDITURES

TOTAL EXPENDITURES 307,907,225 338,332,771 30,425,546

FY2012 BUDGET GAP (29,701,014)

Budget Expenditure Variances

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Expenditure Decreases:

Central Office Staff Reductions ($400,000)

Behavior Disorder Program Changes (538,824)

(938,824)

Expenditure Increases:

Salary and Benefit Increases Step Increases 1,600,000

Fringe Benefits 5,001,707

Loss of Jobs & Stimulus Funding 13,000,000

Loss of Restricted State Aid 1,094,041

Nathon Bishop/PCTA Growth 1,265,053

Math/Reading Intervention Plan 1,500,000

23,460,801

City Paid Expenses Coming Back to PPSD IT Services 230,000

Debt Service - Boiler Program 1,900,000

2,130,000

Budget Expenditure Variances (Continued)

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Other Items Custodial Services (Includes a one time FY11 expenditure decrease of $1.4M ) 1,400,000

Transportation 3% Contract Increase 812,480

Special Education Tuition Increase 956,220

Tuition to Charter Schools 1,639,180

Tuition to Davies and The Metropolitan 500,892

Utilities 2.18% Increase 177,405

Miscellaneous 287,392

5,773,569

Net Expenditure Increase $30,425,546

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Budget Unknowns

• Final State Aid Allocation to the District

• Final City Appropriation to the District

• Final Federal Entitlements

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FY2012 Budget Overview

• The Superintendent’s 2011-12 proposed budget is $308,738,673

• The FY2012 Budget is $831,448 or .27% higher than FY2011

• Budget increases are driven by:» Labor agreements » Vendor agreements» State regulations and laws» Loss of Stimulus Funding» Loss of Federal Jobs Bill

Budget Revenue Assumptions

• State Aid will be funded at the Governor's proposed budget amount

– Governor’s FY2012 Proposed Budget calls for a $2.5 million net reduction in Aid to Education for Providence

• The City appropriation to schools will remain at the FY2011 amount

– City funded 40.56% of FY2011 budget. Level funding of the FY2012 proposed budget is 40.45%

• Federal Entitlements will be level funded

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• Eliminating a $29.5 million budget gap • Achieved by:

– Employee salary & benefit reductions– School closures

• ASA Messer Elementary• ASA Messer Annex Elementary• Flynn Elementary• West Broadway Elementary• Windmill Elementary• Repurposing Bridgham Middle

Budget Expenditure Assumptions

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Budget Expenditure Assumptions (Continued)

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Current Budget Gap $29,594,098

Employee salary & benefit reductions 17,658,238 - 20,351,202(Ex. Reductions in wages, longevity

and healthcare benefits)

School closures - teacher reductions 4,505,535 - 7,198,499( 44 - 70 FTE's)

School closures - operational reductions 4,737,361

Proposed Budget Gap $0

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FY 2012 Expenditures

Proposed Expenditures $308,738,673

Salaries & Bene-

fits78.16%

Ser-vices

18.25%

Supplies0.74%

Equipment0.22%

Utilities2.63%

State Aid57.49%

City Revenue40.49%

Medicaid1.38%

Other0.64%

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FY 2012 Revenues

Projected Revenues $308,738,673

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Budget Schedule (Anticipated)

• April 25 Budget submitted to School Board• April 28 Budget submitted to Mayor• May 1 Budget submitted to Council• June Council budget hearings • June-July Final state aid determined• July Council adopts city budget• July-August School board approval• July-August Council approves ordinances

Questions ?

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