R E V E N U E S A N D E X P E N S E S O FT H E F R A M I N G H A M P U B L I C S C H O O L S

FPS BUDGET FORUM

January 16, 2013

TOTAL REVENUE NEEDED TO OPERATE SCHOOLS FY12

Where did the money come from?

$151,633,203

Operating$91,845,848

61%

Town$43,865,244

29%

Grants$9,484,02

66%

Revolving$6,438,085

4%

Funding Sources, FY12

Revenue from Town and Grants forFY12 Operating Budget

• Town Meeting has “bottom line” authority only for funds for the Operating Budget portion of the School Department Budget

• Town revenue sources for funding School Department Operating Budget:

State Aid to Education (31.5%) $ 28,915,499

Chapter 70 Aid $ 22,024,861MSBA reimbursement $ 2,510,995Charter School reimbursement $ 780,041Circuit Breaker (SPED) $ 3,599,602

School generated revenue (1.8%) $ 1,707,948

Rental income (Farley) $ 713,333Medical care reimbursement $ 982,969Other revenue $ 11,646

Other Town revenues (66.7%) $ 61,222,401

• Revenue from Grants for FY12 Operating Budget:Federal Grants $ 5,170,000State Grants $ 4,314,026Total $ 9,484,026

Revenue from Revolving Funds forFY12 Operating Budget

Food Services $ 2,620,000Athletics $ 250,000Gifts $ 450,000BLOCKS Tuition $ 1,500,000Day Care (HS) $ 300,000Cable T.V. $ 370,000Buildings and Grounds $ 410,000Other Local $ 538,000

TOTAL $ 6,438,000

TOTAL COST TO OPERATE SCHOOLS FY12

Where did the money go?

$151,633,203

Instruction$71,631,756

47%

Student Support

$5,333,608 (4%)

Transportation/Food

$9,649,442 (6%)

Athletics/Activities

$1,137,892 (1%)

Building$7,914,220

5%

Town Services$31,712,791

21%

Out of District Tuition

$15,899,555 (10%)

Keefe Tech$8,353,939 (6%)

School Expenditures, FY12

2009

2008

2012

2011

2010

REVENUES 2008 2009 2010 2011 2012Operating $82,732,673 $83,929,505 $86,246,831 $88,695,481 $91,845,848Town $40,718,059 $40,248,331 $42,986,404 $43,612,332 $43,865,244Grants $8,874,213 $12,849,113 $12,656,529 $10,134,787 $9,484,026Revolving $5,691,410 $5,982,616 $6,298,782 $6,692,717 $6,438,085TOTAL $138,016,355 $143,009,565 $148,188,546 $149,135,317 $151,633,203

EXPENSES 2008 2009 2010 2011 2012Instruction $66,325,364 $70,450,325 $71,899,934 $70,066,594 $71,631,756Student Support $4,586,595 $4,842,316 $5,135,605 $5,241,149 $5,333,608Transportation / Food $8,277,327 $7,904,694 $8,391,800 $8,719,795 $9,649,442Athletics/Activities $1,273,431 $1,301,709 $1,241,994 $1,064,782 $1,137,892Buildings $7,732,425 $7,872,704 $7,871,493 $8,031,103 $7,914,220Town Services $29,110,882 $28,722,236 $31,668,105 $32,393,531 $31,712,791Out of District Tuition $12,241,449 $13,067,292 $13,224,350 $15,224,772 $15,899,555Keefe tech $8,468,883 $8,848,289 $8,755,264 $8,423,591 $8,353,939TOTAL $138,016,356 $143,009,565 $148,188,545 $149,165,317 $151,633,203

Looking back… FY08 to FY12 Expenses and Funding sources

Looking back… FY08 to FY12 Expenses and Funding sources

2009

2008

2012

2011

2010

X3.61%increase

X3.62%increase

X0.64%increase

X1.67%increase

Looking back… FY08 to FY12, Changes in percentage of funding sources

2009

2008

2012

2011

2010

Looking back… FY08 to FY12, Changes in percentage of expenditures

2009

2008

2012

2011

2010

Looking forward… FY13 to FY18 Expenses and Funding sources

2017

2018

2014

2015

2016

2013

Projections with revenue and expenditure growth rates in the “FY2014-2018 Long Range Financial Forecast” report by the Town of Framingham, 10/16/2012

Projected Growth 2013 2014 2015 2016 2017 2018REVENUE 4.6% 3.2% 3.3% 3.4% 3.5% 3.2%EXPENDITURE 3.8% 4.0% 4.8% 4.3% 4.6% 4.4%

REVENUESOperating $97,596,855 $100,915,427 $105,540,842 $110,169,414 $115,009,013 $120,069,670Town $45,883,045 $47,351,303 $48,913,896 $50,576,968 $52,347,162 $54,022,271Grants $9,920,291 $10,237,741 $10,575,586 $10,935,156 $11,317,886 $11,680,059Revolving $6,734,237 $6,949,732 $7,179,074 $7,423,162 $7,682,973 $7,928,828TOTAL $160,134,428 $165,454,203 $172,209,397 $179,104,700 $186,357,034 $193,700,828

EXPENSESInstruction $77,007,926 $77,327,913 $81,039,653 $84,524,358 $88,412,479 $92,302,628Student Support $5,536,285 $5,757,737 $6,034,108 $6,293,574 $6,583,079 $6,872,734Transportation / Food $10,051,121 $10,416,766 $10,916,770 $11,386,192 $11,909,956 $12,433,994Athletics/Activities $1,181,132 $1,228,377 $1,287,339 $1,342,695 $1,404,459 $1,466,255Buildings $8,264,960 $8,543,559 $8,953,650 $9,338,657 $9,768,235 $10,198,037Town Services $32,917,877 $34,234,592 $35,877,853 $37,420,600 $39,141,948 $40,864,194Out of District Tuition $16,503,738 $17,163,888 $17,987,754 $18,761,228 $19,624,244 $20,487,711Keefe tech $8,671,389 $9,018,244 $9,451,120 $9,857,518 $10,310,964 $10,764,646TOTAL $160,134,428 $163,691,075 $171,548,247 $178,924,822 $187,155,363 $195,390,199

Looking forward…FY13 to FY18 Expenses and Funding sources

2017

2018

2014

2015

2016

2013

Projections with revenue and expenditure growth rates in the “FY2014-2018 Long Range Financial Forecast” report by the Town of Framingham, 10/16/2012

Looking forward…FY13 to FY18 Expenses and Funding sources

2017

2018

2014

2015

2016

2013

Projections if expenditure growth rates match revenue growth rates forecasted in the “FY2014-2018 Long Range Financial Forecast” report by the Town of Framingham, 10/16/2012

Projected Growth 2013 2014 2015 2016 2017 2018REVENUE 4.6% 3.2% 3.3% 3.4% 3.5% 3.2%EXPENDITURE 4.6% 3.2% 3.3% 3.4% 3.5% 3.2%

REVENUESOperating $97,596,855 $100,915,427 $105,540,842 $110,169,414 $115,009,013 $120,069,670Town $45,883,045 $47,351,303 $48,913,896 $50,576,968 $52,347,162 $54,022,271Grants $9,920,291 $10,237,741 $10,575,586 $10,935,156 $11,317,886 $11,680,059Revolving $6,734,237 $6,949,732 $7,179,074 $7,423,162 $7,682,973 $7,928,828TOTAL $160,134,428 $165,454,203 $172,209,397 $179,104,700 $186,357,034 $193,700,828

EXPENSESInstruction $77,007,926 $77,324,475 $79,876,183 $82,591,973 $85,482,692 $88,218,138Student Support $5,536,285 $5,757,480 $5,947,477 $6,149,692 $6,364,931 $6,568,609Transportation / Food $10,051,121 $10,416,302 $10,760,040 $11,125,882 $11,515,288 $11,883,777Athletics/Activities $1,181,132 $1,228,323 $1,268,857 $1,311,998 $1,357,918 $1,401,372Buildings $8,246,960 $8,543,179 $8,825,104 $9,125,157 $9,444,538 $9,746,763Town Services $32,917,877 $34,233,070 $35,362,761 $36,565,095 $37,844,873 $39,055,909Out of District Tuition $16,503,738 $17,163,124 $17,729,508 $18,332,311 $18,973,942 $19,581,108Keefe tech $8,671,389 $9,017,843 $9,315,432 $9,632,157 $9,969,282 $10,288,299TOTAL $160,134,428 $163,683,797 $169,085,362 $174,834,265 $180,953,464 $186,743,975

Looking forward… FY13 to FY18 Expenses and Funding sources

2017

2018

2014

2015

2016

2013

Projections if expenditure growth rates match revenue growth rates forecasted in the “FY2014-2018 Long Range Financial Forecast” report by the Town of Framingham, 10/16/2012

State of the State Funding

• According to MassBudget, when adjusted for inflation, since 2001, funding for local aid is down 45%

• Projected “gap” in FY14 state budget is $1.22B• Department of Revenue projects tax revenues up 3.5-

4.9% over FY13• Inflation at 2% plus health care (%?)• “Modest” increase for education funding projected

for FY14 state budget• Inflation at 1.55%• Enrollment up slightly at .2%• Required local contribution down as local revenue

capacity is also down, state will have to assume larger share of revenue toward district foundation budget

Chapter 70 Funding Closing the “Gap”

CHAPTER 70 ANALYSIS FY07 FY08 FY09 FY10 FY11 FY12 FY13

Foundation Budget $69,363,563 $71,074,303 $75,064,337 $78,471,848 $77,781,484 $79,535,372 $84,916,268

Required contribution $61,627,654 $60,232,844 $59,230,314 $59,169,653 $57,763,279 $57,510,511 $58,401,853

Chapter 70 Aid $10,628,154 $13,966,312 $15,333,796 $16,793,161 $20,018,205 $22,024,861 $28,083,629

Required NSS $72,255,808 $74,229,156 $74,564,110 $75,962,814 $77,397,386 $79,535,372 $86,485,482

Target Aid share (due) 27.40% 30.80% 31.30% 33.50% 34.70% 36.76% 38.63%

Target Aid funding (due) $19,798,091 $22,862,580 $23,338,566 $25,447,543 $26,856,893 $29,237,203 $33,409,342

Actual Aid share (received) 15.30% 19.70% 22.80% 24.60% 25.70% 27.70% 33.07%

Percentage “Gap“ 12.10% 11.10% 8.50% 8.90% 9.00% 9.06% 5.56%

Actual Aid funded (received) $10,628,154 $13,966,312 $15,333,796 $16,793,161 $20,018,205 $22,024,861 $28,083,629

Shortfall in annual funding $8,896,268 $8,004,770 $8,654,382 $6,838,688 $7,212,342 $ 5,325,713

Unfunded Mandates

SUMMARY OF COSTS FOR UNFUNDED/UNDERFUNDED MANDATES: 

Chapter 70 Aid (FY13) $ 5,325,713Regular Education $ 550,000 Special Education $ 3,000,000 Special Education Transportation $ 2,000,000 Section 504 Services $ 200,000 School Transportation $ 4,000,000 Administrative $ 250,000 School Nurses$ 220,000 McKinney-Vento (Homeless) $ 215,000 English Language Learners $ 350,000 Home Schooling $ 20,000 MCAS Testing $ 150,000 Curriculum Frameworks $ 200,000 Residency $ 600,000 Vocational Education $ 175,000 Professional Development $ 250,000 Foster Care and State Wards$ 150,000 Grants to Non-public Schools $ 100,000SIMS and EPIMS $ 400,000Reporting and Auditing $ 5,000Student Activity Accounts $ 6,600Technology $ 500,000Building Maintenance $ 429,275

 Grand Total $ 19,096,588

R E V E N U E S A N D E X P E N S E S O FT H E F R A M I N G H A M P U B L I C S C H O O L S

FPS BUDGET FORUM

Prepared by Anna Yuen for Framingham Public Schools, January 2013

We will now take

Questions