Attachment 1: FY16 & FY17 Biennial Budget Operational...

Attachment 1: FY16 & FY17 Biennial Budget Operational Planning

1 of 1

FY16 & FY17 Biennial Budget Operational Planning

January 8, 2015


1 of 2

Milwaukee Public Schools 2015-16 Amended Adopted Budget

Five Year Projections The District prepares five-year projections by statutory fund as part of the spring budget process for the

following fiscal year. The District also develops a forecast in November/December, in part to help set the

parameters for budget planning. These five-year projection tables shown in Charts 4.17 (Operations

Fund), 4.18 (Nutrition Services Fund), 4.19 (Construction Fund) and 4.20 (Extension Fund) were created in

the spring of 2015 and reflect 2015-16’s Proposed Budget. These forecasts will be updated as part of the

2016-17 budget process.

Operations Fund – Five Year Projection Chart 4.20 shows an estimate of revenues and expenditures in the Operations Fund (general and debt)

for each year through 2019-20. Information includes a.) the Final Amended Adopted Budget for

2014-15, b.) the Proposed Budget for 2015-16, c.) an early estimate of revenues and expenditures for

each year 2016-17, 2017-18, 2018-19, 2019-20.The column at the far right compares the long-term

estimate of 2019-20 to the 2014-15 Amended Adopted Budget.

Chart 4.20 Operations Fund – Five Year Projection

Coupled with other projections for the revenue limit, MPS can estimate a $20.8 million decrease in school

operations revenue from 2014-15 through 2019-20. This is primarily due to projected declines in

enrollment and the State’s recent history of limiting school district revenues.

While the District will experience staffing efficiencies to coincide with the changes in enrollment, school

operations expenditures are expected to increase by $88.1 million between 2014-15 and 2019-20. The

primary driver of the cost increase is medical inflation, which is projected to increase 7%, compounded

annually, over the next 5 years. The administration is aggressively pursuing options and alternatives to

increase enrollment and contain costs, which will help MPS avoid the projected deficits if we otherwise

maintain our status quo.

4-33


Nutrition Services Fund – Five Year Projection The School Nutrition Services fund includes a major component, food, where general inflation and more

stringent nutritional requirements may outpace the rate of reimbursement. In 2015-16, MPS will be in its

2nd year of participating in the CEP, wherein high-poverty districts serve free meals to all students. The

number of meals funded by the federal program has increased significantly.

Chart 4.21 shows an estimate of revenues and expenditures in the School Nutrition Fund for each year

through 2019-20. Information includes a.) the Final Amended Adopted Budget for 2014-15, b.) the

Proposed Budget for 2015-16, c.) an early estimate of revenues and expenditures for each year 2016-17,

2017-18, 2018-19, 2019-20. The column at the far right compares the long-term estimate of 2019-20 to

the current year’s Proposed Budget.

Chart 4.21 Nutrition Services Fund – Five Year Projection

Construction Fund – Five Year Projection The Construction Fund Projection assigns limited resources available for maintenance and remodeling.

The administration will continue to develop alternate resources to ensure our buildings are safe,

welcoming, and conducive to learning.

MPS has established a “trust” that is funded with a transfer from the general fund. The contribution from

Fund 10 to Fund 46 (Long-term Capital Improvement Trust Fund) is recorded as an expenditure for shared

cost and equalization aid purposes. Future expenditures from Fund 46 are not part of shared costs. MPS

would be prohibited from removing money deposited into Fund 46 for a period of five years after the fund

is created. After the initial five year wait period is over, funds may only be used for the purposes identified

4-34


in the Board’s approved long-term capital improvement plan. Fund 46 assets may not be transferred to

any other school district fund.

Chart 4.22 shows an estimate of revenues and expenditures in the Construction Fund for each year

through 2019-20. Information includes a.) the Final Amended Adopted Budget for 2014-15, b.) the

Proposed Budget for 2015-16, c.) an early estimate of revenues and expenditures for each year 2016-17,

2017-18, 2018-19, 2019-20.The column at the far right compares the long-term estimate of 2019-20 to

the current year’s Proposed Budget.

Chart 4.22 Construction Fund – Five Year Projection

To address deferred maintenance and the expansion of successful academic environments, borrowing is

included in the 2017-18 Construction Fund revenues. The related debt service is added to 2018-19 and

2019-20 in the Operations Fund.

Extension Fund – Five Year Projection For purposes of the five-year projection, the tax levy revenue has been held constant. In the fall of each

year, the Board has the opportunity to set the levy for this fund in the context of the District’s overall

levy. Using fund balance, (a.k.a applied surplus), is only possible for a couple of years and will diminish

the District’s overall financial position.

4-35


Chart 4.23 shows an estimate of revenues and expenditures in the Extension Fund for each year through

2019-20. Information includes a.) the Final Amended Adopted Budget for 2014-15, b.) the Proposed

Budget for 2015-16, c.) an early estimate of revenues and expenditures for each year 2016-17, 2017-18,

2018-19, 2019-20. The column at the far right compares the long-term estimate of 2019-20 to the current

year’s Proposed Budget.

Chart 4.23 Extension Fund – Five Year Projection

Summation of Five-Year Projections Fiscal Year 2016-17 financial realities, as seen in the forecasts above, demonstrate that the District needs

to proceed with a high degree of fiscal caution. Concerns about declining enrollment and continued

revenue pressures remain. Allowing for modest inflationary increases, and recognizing medical inflation

at a higher rate, results in projected expenditures exceeding revenues by over $30 million in the

Operations fund alone.

The District has responded to demands for high quality programs in suitable facilities by authorizing a few

remodel expansion sites. Specifically, a new site for Rufus King Middle School, one Montessori site

expansion is scheduled to be ready for the 2016-17 school year and a second Montessori site expansion

is scheduled to be ready for the 2017-18 . While there is more need for such strategic investments,

revenue trends point toward limited options for 2016-17.

Expenditures The Office of Finance and other administrative offices carefully scrutinize the District’s expenditures by

type (object) and by department (project). Key district fiscal policies which guide the District’s stewardship

of resources are listed at the end of this section. The following is a presentation of actual expenditures for

2013-14 and 2014-15 and budgeted 2015-16 expenditures by object and by office.

4-36

Budget & Operational Planning

Strategy

Vision

Mission/Goals

Work Processes

Competencies

Culture

Structure

Metrics

Action Steps

1. Day-to-Day Work

2. Projects

3. Customer Service


1 of 3

Operational Planning

Mission Milwaukee Public Schools is a diverse district that welcomes all students, preparing

them for success in higher education, post-educational opportunities, work, and citizenship.

Vision

Milwaukee Public Schools will be among the highest student growth school systems in the country. All district staff will be committed to providing an educational

environment that is child-centered, supports achievement, and respects diversity. Schools will be safe, welcoming, well-maintained and accessible community centers

meeting the needs of all. Relevant, rigorous and successful instructional programs will be recognized and replicated. The district and its schools will collaborate with

students, families and community for the benefit of all.

Goals

Academic Achievement

Student, Family & Community Engagement

Effective & Efficient Operations


1 of 4

Operational Planning

Organization-Wide Strategies

1. Closing the Gap

2. Educating the Whole Child

3. Rethinking High Schools

4. Redefining the MPS Experience

5. Re-envisioning Partnerships

6. Community Outreach/ Communication

7. Workforce Development

8. Organizational Processes


1 of 5

Academic Achievement 1. Closing the Gap

A. Ensuring Equity, Access and Opportunity

B. Implementing the District Improvement Plan

C. Redesigning Curriculum

D. Creating Supports for Low Performing Schools

2. Educating the Whole Child

A. Utilizing Case Management and Trauma Informed Care Strategies

B. Promoting Healthy Choices

C. Redefining Extended Learning Opportunities

D. Expanding Early Childhood Educational Opportunities


1 of 6

Academic Achievement 3. Rethinking High Schools

A. Redesigning Leadership and Infrastructure

B. Expanding Workforce Readiness Preparation

C. Rewriting Promotional Standards

D. Engaging Alumni Associations

4. Redefining the MPS Experience

A. Expanding Fine Arts

B. Expanding Athletic Programs

C. Expanding Learning Journeys D. Strengthening Student Clubs, Associations and Organizations


1 of 7

Student, Family and Community Engagement

5. Re-envisioning Partnerships A. Reconstituting the MPS Foundation B. Developing Infrastructure to Cultivate Backbone Organizations C. Empowering Parents D. Visualizing Schools as Learning Communities (Systems Thinking) 6. Community Outreach/Communication A. Executing MPS Branding and Awareness Campaign B. Implementing MPS Customer Service Plan C. Developing Internal Communications Plan D. Developing External Communications Plan


1 of 8

Effective and Efficient Operations

7. Workforce Development A. Creating Career Pathways and Staffing Pipelines B. Promoting Employee Wellness C. Redefining Employee Compensation and Eval. Systems

D. Strengthening Diversity

8. Organizational Processes A. Expanding Strong Academic Programs Through Regional Development Strategies B. Conducting Asset Mapping C. Creating Standard Operating Procedures

D. Utilizing Decision Matrix


1 of 9

White Papers

• A series of white papers, developed by district staff and other stakeholders, will inform FY16 and FY17 budget and operational decisions. These papers organize into eight “big idea” categories that align directly to one of the three district strategic plan goals. Each white paper will identify activities organized around common goals and measureable objectives.

• A sponsor and leader have been identified for each project. Each project leader will be supported by a project team made up of district, school and community stakeholders. Project teams should not have more than seven members. An operational planning support team also will serve as a resource to each project team throughout the white paper development.

• Each white paper will start with the big picture and lead readers to the proposed activities. The goal of each white paper is to lead the reader toward the conclusion that the proposed measureable objective and activities will best address district needs.


1 of 10

Budget Timetable

January Discuss budget process and collect data needed to establish preliminary allocations.

Launch development of a series of white papers, to be written by district staff and

other stakeholders to inform budget and operational decisions.

Administration & All Offices

Strategic Planning and Budget Committee

Board

MPS Stakeholders

February Listening session to collect additional stakeholder feedback on budget process and

district needs.

Administration

MPS Stakeholders

March Schools and departments prepare proposed budgets. Administration

April Superintendent's proposed budget is finalized and assembled for publication. Administration

May

Proposed budget released.

Public hearings on proposed budget.

Statutory public hearing notice published.

Statutory hearing on proposed budget.

Board members submit and take action on possible amendments to the proposed

budget.

Administration

Office of Board Governance

Strategic Planning and Budget Committee

Board

June Board takes action on proposed budget.

Board Clerk transmits adopted budget to the Milwaukee Common Council.

Administration

Office of Board Governance

Board


1 of 11

Budget Parameters Recommendation

The Administration recommends that the FY16 proposed budget:

• be prepared based on current law;

• include continued exploration of base-building raises for all employees; and

• maximize the revenue limit.


1 of 12

FY16 & FY17 Biennial Budget Operational Planning

MPS Board of School Directors Michael Bonds, Ph.D., President, District 3 Meagan Holman, Vice President, District 8 Mark Sain, District 1 Jeff Spence, District 2 Annie Woodward, District 4 Larry Miller, District 5 Tatiana Joseph, Ph.D., District 6 Claire Zautke, District 7 Terrence Falk, At-Large

Senior Team Darienne B. Driver, Ed.D., Superintendent Erbert Johnson, CPA, Chief of Staff Karen R. Jackson, Ph.D., Chief Human Capital Officer Ruth Maegli, Chief Innovation Officer and Acting Chief Academic Officer Michelle Nate, CPA, Chief Operations Officer Gerald Pace, Esq., Chief Financial Officer Keith Posley, Ed.D., Chief School Administration Officer Sue Saller, Executive Coordinator, Superintendent’s Initiatives


1 of 13

Attachment 1: FY16 & FY17 Biennial Budget Operational...

Documents

Transcript of Attachment 1: FY16 & FY17 Biennial Budget Operational...