Presentation to the State Board of EducationThursday, April 10, 2014

FY08-09

FY09-10

FY10-11

FY11-12

FY12-13

FY13-14

FY14-15

$300

$400

$500

$600

$700

$800

$900

MNPS Budget GrowthM

illio

ns $779.0 million*

$622.8 million

Average Annual Growth = 3.8%

* Projected for planning purposes

FY08-09

FY09-10

FY10-11

FY11-12

FY12-13

FY13-14

FY14-15

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

90,000

Enrollment Growth

84,543 students84,543 students*

75,029 students Average Annual Growth = 2.0%

* Projected for planning purposes

Budget Growth by Category:FY09-10 to FY14-15*

Employee CompensationRequired Addi-tions

* Projected for planning purposes

$81.0 million (51%)

$78.7 million (49%)

Employee Compensation Growth:FY09-10 to FY14-15*

$78.7 million (49%)

* Projected for planning purposes

Certificated salary increases

$42.3 million

Support salary increases

$13.4 million

Salary savings on replacements

($9.0 million)

Retirement incentive savings

($3.5 million)

Other (insurance, pension, FICA)

$35.5 million

TOTAL $78.7 million

Required Additions Growth:FY09-10 to FY14-15*

$81.0 million (51%)

* Projected for planning purposes

Charter schools cash outlays

$48.4 million

Additional teaching positions

$12.1 million

Inflationary increases

$13.8 million

Other (debt service fund transfer, etc)

$6.7 million

TOTAL $81.0 million

FY08-09

FY09-10

FY10-11

FY11-12

FY12-13

FY13-14

FY14-15

$0

$10

$20

$30

$40

$50

$60M

illio

ns

Average Annual Growth = 54.3%

$53.0 million*

$4.6 million

Charter School Cash Outlays

* Projected for planning purposes

Total Proposed Changes Anticipated New Revenue*$0

$5

$10

$15

$20

$25

$30

$35M

illio

ns

Analysis: FY14-15 Operating Budget

Employee Compensation

Required Additions Other

* Assumes 2% revenue growth, for planning purposes

Char

ter g

row

th

Potential Shortfall =

$17.6 million

Consolidating/closing under-utilized buildings

Raising class sizes in middle and high schools

Reducing the certificated workforce

Eliminating enhanced-options schools

High-Leverage Options

Fiscally & Operationally Sustainable Growth

In November, the Metro Nashville Board of Public Education passed RS2013-4 “establishing priorities for deploying charter schools” during 2014

Strategic priorities include:1. Conversion of existing low-performing schools2. New charters in exceedingly overcrowded cluster tiers

FACT: The Glencliff and Overton elementary tiers are on track to hit 121% and 125% capacity, respectively,

during the fall 2017-18 school year.

Common-Sense Approach

MNPS charter review process utilizes three “lenses”

1. Quality. Applications must meet NACSA quality standards.

2. Strategic priorities. Applications should address the school district’s stated needs.

3. Fiscal impact. Pursuant to TCA 49-13-108(b), applications should not be "contrary to the best interests of the pupils, school district or community.”

Questions?