Michael DeBakey PTA Meeting

March 8, 2011

HISD 2011-2012HISD 2011-2012

• HISD will face a $171 million state funding shortfall.

• Several alternative were presented to balance next budget.

• Melinda Garrett HISD Chief Financial Officer outline to the Board that several funding decisions must be made by March 10, specially those that will lead to personnel reductions at the school level.

HISD 2011-2012HISD 2011-2012

• Some of the proposals presented to trustees for discussion include:

1. Closure of four elementary schools.2. The creation of four uniform start times at all schools to save

on transportation costs.3. Potential changes to HISD’s police force. 4. Potential district wide and department reductions at the

central office.5. Making cuts to small school subsides6. Non-resource school funding and unique PUA or per unit

allocation funding.

HISD 2011-2012

• The proposal includes:• Cut the funding schools receive by $275 per

student in order to reduce the district’s general fund short fall by $50 million dollars. Still leaves an unfounded shortfall of nearly $120 million dollars.

• A cut of $275 per student at a school of 1,250 students means a $345,000 cut on the campus level, which amounts to the salary of 6.5 teachers.

HISD 2011-2012HISD 2011-2012

3,000 students 1,250 students 750 students 500 students

$1,716,000 (Budget Reduction)

$715,000 (Budget Reduction)

$429,000 (Budget Reduction)

$286,000 (Budget Reduction)

32.5 Teachers 13.5 Teachers 8.1 Teachers 5.4 Teachers

When broken to the school level by reducing the PUA, we will see this impact:Per student allocation cut based on $119,836,605 shortfall

HISD 2011-2012HISD 2011-2012

• Options for closing the funding gap should it remain until the state decides how deep the cuts of the public education funding will be.

• Some options to be considered:1.Tax rate increase, of $0.04, this measure would cost the

average homeowner around $173 a year or $15 a month (based on a home valued at $195,680).

2.Reducing the optional homestead exemption by 5%.

3.Using a portion of the district’s reserve funds.

4.District wide salary cuts and furloughs or a combination of both.

HISD 2011-2012HISD 2011-2012

• By increasing property tax and reducing to 15% the homestead exemption, the district will raise around $64 million, which leaves a remaining shortfall of $56 million, in other words a $276 cut per student.

• Per student allocation reduction based on $56,648,267 shortfall.

3,000 Students

1,250 Students

750 Students 500 Students

$828,000 $345,000 $207,000 $140,500

15.7 Teachers 6.5 Teachers 3.9 Teachers 2.66 Teachers

HISD 2011-2012HISD 2011-2012

• The HISD financial office estimates that having four uniform start times for all schools could save $1 million dollars in transportation costs, equivalent to 19 teacher salaries.

School Level Starting Time Ending Time

Elementary 7:30 am or 8:30 am

2:45 pm / 3:45 pm

Middle 8:45 am 4:15 pm

High School 7:45 am 3:15 pm

Where is DeBakey ?Where is DeBakey ?• Unique PUA:• DeBakey as the Magnet School for Visual and

Performing Arts and Criminal and Law Enforcement will lose $183.

• PUA:• As every other school we will lose $275 per people.• An early estimation give us a lost of funds of $240,000

that correspond to $5,000 per people.• Worse case, Mrs. Lazenby is not projecting to lose

teachers, but we have to be clear there are four places in which DeBakey will lose funds:

• Regular PUA• Unique PUA• Title I• HS Allocation Federal Funds.