FY16 Budget Recommendation

External Funds

DRAFT

1

City Council Budget HearingMay 4, 2015

External Funds

FY16 External Funds

External funds are both a cause and a solution to our structural

imbalance

Reductions grant funding put pressure on the general fund where

the reduction in funding would harm an essential program or

service

The food services program has required a subsidy from the general fund for many years, where in most districts, the program

operates within the funds generated from federal reimbursement

Private funding (through the Boston Educational Development

Fund or “BEDF”) and partnerships provide additional resources

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External Funds

FY16 External Funds

FY16 grant funding projections total $119.7M, which represents a

decrease of $15.1M or 11.2% over the FY15 external funds total of

$134.8M.

Decreases are largely due to historical downward trends in big

entitlement grants like Title I, II, III, IDEA, and Perkins.

Decreases are also due to the end of the Investing in

Innovation (I3) grant and the loss of the Title I carry forward

from FY14 used in FY15.

Food Services is making adjustments to reduce costs to within expected revenue

We are expecting an increase in resources through BEDF in FY16

We are leveraging 3 times the funding paid to partners in services

provided to BPS students by those partners3

External Funds

Agenda

4

1. Grant Funding

2. Food and Nutrition Services

3. Boston Educational Development Foundation

(BEDF)

4. Partnerships

Grants

5

$124M $123M $111M $94M

$21M $21M

$23M

$22M

$328k

$71k$32k

$25k

Grants

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Grant Source

Funding

Change: 2013-

2014

Funding

Change: 2014-

2015

Projected

Change: 2015-

2016

Federal -0.50% -10% -15%

State 0.40% 10% -3%

Other -90% 121% -65%

Grant Funding Changes

Grants

FY16 Projected Grant Fund Losses

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Grant Reduction Comments

Title I carry-forward -$9M Grant ends

Title I -$3.2M Continued 10% loss

Investing in

Innovation (I3)-$1M Grant ends

Title II -$288K Assume 5% loss

IDEA -$544K Continued 3% loss

Title III -$196K Assume same FY14 9% loss

Perkins -$118K Assume same FY15 9% loss

Other -$800kReduction across other grants

Total -$15.1M

External: Anticipated change due to ESEA reauthorization:

Title I funding is up for reauthorization this year and is currently moving to the

Senate floor. The amendment seeks to change the Title I funding formula

and the result of this would be a dilution of these scarce federal funds

starting in FY17; and the inability of the district and individual schools to

provide programs of sufficient size and scope to produce results.

Internal: Change in how Poverty is calculated:

For the 2013-2014 school year, Massachusetts began participating in the

Community Eligibility Option (CEO), which allows schools to provide meal

service to all students at no charge, regardless of economic status. As a

result, household applications that have generally been used to determine

eligibility for free and reduced lunch prices are no longer being collected.

This change meant that for FY16 BPS needed a new method for calculating

poverty for allocating both Title I and WSF dollars.

Grants

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Title I Changes/Impacts

Grants

FY15 Title I Carry Forward

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Grant Reduction Comments

Title I carry-forward $8,886,682

-$2,787,419 Extended time at Level 3 and 4 schools

-$4,267,637 Strategic partners (ie City Year, BELL)

-$1,400,000 Acceleration Academies

-$431,626 Unplanned liabilities

Title I and Title II-A grants are able to access a multi-year feature to extend the life of

the grants into the next fiscal year. Funds from Year 1 can be shifted into year 2 and

spent on Title eligible activities.

BPS takes advantage of this availability by using carry forward dollars to leverage

turnaround efforts with our most critical activities. This is a one-time source of revenue

based on an evaluation of the use of funding in the current year and a determination

that funds could be best utilized by targeting specific activities in year 2.

We evaluate our programs and activities every year and shift funding to achieve

district goals and priorities.

External Funds

Agenda

10

1. Grant Funding

2. Food and Nutrition Services

3. Boston Educational Development Foundation

(BEDF)

4. Partnerships

Food Services

Statement of Revenue and Expenses

FY10 FY11 FY12 FY13 FY14 *FY15

Total Expenses $27 M $28 M $31 M $33 M $36 M $38 M

Revenues $26 M $26 M $29 M $29 M $34 M $36 M

Net Profit (loss) - $1.4M - $2.0M - $1.7M - $4.1M - $1.7M -$2.0M

• As of end of March, 2015• Only includes the main grants which are the part of NSLP (National school lunch program which

include lunch & breakfast)

Food Services

FY15 Staffing

Total Staff = 528

• Central Office Staff = 33 School Based Staff = 495

• Diversity: 42% Black, 37% Hispanic, 18% White, 1% other

FY15 Reimbursement rates

Breakfast - $2.03 Lunch - $3.12

Finance Overview

Grant Total Type of Grant Source of Funding

School Lunch $36 M Reimbursement Funded from Federal & State Reimbursement based off of meals served

Summer Food Program $1.2 M Reimbursement Funded from Federal & State Reimbursement based off of meals served

Fresh Fruit & Vegetable Program

$800 K Competitive Agreement between USDA and Food & Nutrition Services to source more foods locally

Summer Meals Expansion

$66 K Competitive State Funded

Summer Start Up $20 K Competitive State Funded

FNS Grants $38.3 M

Budget FY15 Projected

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Adjustments for FY16 Budget

Food Services

The Budget for FNS for FY16 is $38 M with a reduction of $4M

in expenses from the FY16 baseline

Increase use of USDA Food (commodities)~ $1M

Realign staffing model by ensuring equitable and efficient

allocation of food service workers across all sites and a total re-organization of the FNS central office ~$2.1M

Align offerings to decrease food waste, and to improve

operations while providing quality, healthy menu choices

that kids like ~ $300K

Administrative efficiencies and reduction in non food costs

~$600K

External Funds

Agenda

14

1. Grant Funding

2. Food and Nutrition Services

3. Boston Educational Development Foundation

(BEDF)

4. Partnerships

BEDF

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Recent Organization Improvement and Reforms•Passed 2% Indirect Policy to balance operational budget

•Reduced Accounts Payable and Accounts Receivable processing time to a 5-7 business day turnaround time

• Implemented new payment forms and payroll procedures

Operations

•Revised bylaws to transition Board of Directors to a controlling majority of non-BPS employees

•Recruited new Board of Directors

•Purchased Board of Directors Insurance

Governance

•Hired a permanent Director of Finance and Administration and appointed Acting Executive Director

•Created employee benefits package and BEDF conditions of employment

•Purchased General Liability Insurance

Administrative

•Created new BEDF Logo

•Developed and launched new BEDF website and marketing materials

•Created and distributed quarterly BEDF Bulletin Newsletter

Marketing & Communications

BEDF

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BEDF Income Statements FY2014-FY2016

Source/ FY 2014 2015 YTD2015 EOY

(Estimate)2016 (budget)

REVENUE

Contributions and support $6,630,706 $7,039,220 $8,500,000 $9,300,000

Government contracts

and awards$175,838 $380,780 $395,000 $385,000

United Way - 180,000 $187,000 $60,000

Other reimbursements

and charges for

services

$2,485,341 $1,200,000 $1,300,000 $2,000,000

Facilities use revenues $120,184 - - -

Investment income $33,734 $35,256 $45,000 $65,000

Indirect rate charge - 144,345 $165,000 $190,000

Total $9,445,803 $8,979,601 $10,592,000 $12,000,000

EXPENSES

Program Services $9,340,156 $8,443,576 $10,500,000 $11,500,000

Support services $233,563 $167,616 $212,000 $478,850

Total $9,573,719 $8,611,192 $10,712,000 $11,978,850

Surplus (deficit) -$127,916 $368,409 -$120,000 $21,150

Private External Funds- BEDF (as of 03/31/15)

External Funds

Agenda

17

1. Grant Funding

2. Food and Nutrition Services

3. Boston Educational Development Foundation

(BEDF)

4. Partnerships

Partnerships

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Partner Organizations Leverage BPS

Investment at 3:1 Ratio

$9,751,280

$27,901,702

$169,000 $441,000$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

DistrictContibution

PartnerContribution

NetworkContribution

SchoolContributions

Partnerships

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Partner’s Collective Impact & Return on Investment

School Quality Domain Outcome Metric(s) Indicator

Student Performance Increase academic growth in ELA and/or math

ELA and Math median Student Growth Percentile & Academic Performance Levels

MCAS

PARCC

DIBELS

Family, Community and Culture

Increase Student Engagement

Student answers to questions about engagement

School attendance

Program Attendance and Retention

BPS Student Climate Survey

Average daily attendance records

Program attendance/retention records

Family, Community and Culture

Increase Student Initiative

Student answers to questions about initiative

BPS Student Climate Survey

Family, Community and Culture

Improve relationships with peers

Student answers to questions about relationships with peers

BPS Student Climate Survey

Family, Community and Culture

Improve schoolclimate

Student, teacher, and parent questions about school climate

BPS Student, Parent, and Teacher Climate Survey

Student Access and Opportunities

Increase Access to High Program Quality

Student enrollment in programs

APT program quality score

Partnership Registration Portal

Assessment of Program Practices (APT)