Tentative budget presentation 040313 02

BudgetApril 3, 2013

Board Work Session

2013-2014Tentative

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Tentative Budget-At a Glance

Slide 5-6

Employee

Compensation

& PERS

School-Based Teacher Staffing

Elementary Assistant PrincipalsAcademic Initiatives

CIP/Other Staffing

Major Expenditure Increases

Technology for Schools

School Buses

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1. State Funding

Slide 5-6

Basic Guaranteed Support - Distributive School Account (DSA)

$4,000

$4,500

$5,000

$5,500

2007 2008 2009 2010 2011 2012 2013 2014

$5,445

$5,257

$5,135

$5,036$4,962$4,958

$4,891

$4,489

+ $56.4million*Including a total of $85 million in required

transfers from CCSD’s capital funds between 2010 and 2013

* Estimated based on Governor’s proposed 2014-2015 budgetEstimated

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$300

$375

$450

$525

$600

2007 2008 2009 2010 2011 2012 2013 2014

2. Property Tax RevenuesPreliminary Estimate ($ millions)

+ $1.8million

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3. Student Enrollment

300,000

305,000

310,000

315,000

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

312,782

311,220

308,377

309,899309,442

311,221

308,745

302,547

estimated

+ $8.1million

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4. Transfers from Capital Funds

2009-2010 $10 million

2010-2011 $35 million

2011-2012 $20 million

2012-2013 $20 million

2013-2014 $0

Legislatively mandated transfers from the District’s Capital Funds to the General Operating Fund have totaled $85 million over the past 4 years

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5. Ending Fund Balance

$0

$50

$100

$150

$200

2007 2008 2009 2010 2011 2012 2013 2014

($ millions)

2% 2% 2% 2%

1% 1% 1% 1.25%

Exception to Board Policy of 2% Unassigned

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6. Medium-term FinancingPurpose & Alternatives

$34 million in financing,to be repaid over 10 years from the

General Fundfor typical operating

expenditures. At current market rates, the annual interest rate is estimated

to be 2%.

Replacement Computers (Schools)$10 million

Additional Buses (65)$9 million

Replacement Buses (107)$15 million

Leasing 9% est. interestPurchase $34 million (Gen. Fund)

Alternatives

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6. Medium-term FinancingBus Purchases

Replacement Buses - $15 million107 buses at or exceeding 14 years of age

0

50

100

150

200

2013 2014 2015 2016 2017 2018

169

121119

83

51

107

Alternative: Incur Significant Maintenance Costs

According to the Yellow School Bus Book,the market value of a 14 year old school

bus is approximately $6,600.

The costs associated with maintaining a bus:

$15,000 to replace an engine$3,900 to replace a transmission

+Vehicle maintenance man-hour costs

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Alternative: Reduce Service LevelsBy increasing the transportation radius selectively, reducing certain select

school transportation, orscaling back activity/athletic bus service

Factors for student eligibility for Transportation services

General Education Student:• Zoning• Resides outside of two-mile radius

Special Education Student:• Identification of student needs • Location of student and available program• Placement of student into specific school and program

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Additional Buses - $9 million65 buses to accommodate growth

2011 2012 2013 2014

136121141165

609609601634

584534

473

549

Over the past two years, the number of special education students

receiving transportation has increased by 11.3%.

From 2010 through next year, the number of

regular routes will have remained flat.

SPED Routes Regular Routes Sports/Extra

Projected

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6. Medium-term FinancingReplacement Computers

Replacement Computers - $10 millionin classrooms and other school-level functions

Alternative: Defer ReplacementResulting increase in maintenance costs and/or obsolescence

Greater risk of computers not being available for required instructional activities

Replacement CycleIndustry standard is every 3 years

CCSD target is every 5 years(coinciding with purchase of 5-year warranties)

Currently 1/3 of CCSD’s computers are over 5 years old

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7. Employee Compensation & PERS

Other11%

Salaries & Benefits89%

Retirement (PERS) + 2%Increasing from 23.75% to 25.75%

(39.75% to 40.5% for Police)$23.9 million total cost

1% paid by CCSD & 1% paid by employee via salary reduction, pursuant to NRS 286

Employee CompensationSalary Step Increases and

Educational Increments are subject to bargaining

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8. School-Based StaffingClass Size Ratio Reduction

0

5

10

15

20

25

30

35

40

FY09 FY10 FY11 FY12 FY13 FY14

3538

33333332 3134

31313130

212121211919 18181818

1616

$60 millionto fund 793 additional teacher positions at schoolswhich will allow staffing schools at 95% of enrollment

(up from 93% this year)

1-2 3 4-5 6-12

97% 95% 97%93%97% 97%

Grade LevelsClass Size Ratios

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9. School-Based StaffingElementary Assistant Principals

$1.8 millionto fund 17 additional elementary assistant principalswhich will provide every school with over 600 students an assistant principal (down from 650 this year)

Prior to the 2009-2010 school year, all elementary schools had an assistant principal, with the exception of 10 schools.

Due to budget reductions, the ratio for an elementary school to receive an assistant principal was changed to 650 students, beginning with the 2010-2011 school year.An academic initiative has been proposed to bring the ratio back down to 500 students over the next three years, with an approximate cost of $2 million per year.

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10. School-Based Academic Initiatives

The 2013-2014 Tentative Budget includes funding in support of academic initiatives, including:

• Discovery Assessments• Kindergarten Assessments• Credit retrieval programs at middle schools and high schools• Various summer programs

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11. Special Education Staffing

$9.4 millionto fund 94.5 licensed staffand 45 transportation support positions

due to continued growth in the number of students qualifying for special education services

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12. Capital Program (CIP) Staffing

Positions transferred to General Fund 16

Positions eliminated 50

Total positions eliminated (Capital Fund) 66

0

100

200

300

400

500

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

58

124154

120

235

488.35

443.15482.75

510.16511.16

FY14 ramp-down

QSCB’s

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13. SequestrationFederal Budget Cuts

Sequestration is expected to reduce Federal education funds by an estimated 8.2%. The expected loss to the District is approximately $14.2 million. Some of the notable grants affected include:

• Title I, II, III• Individuals with Disabilities Education Act (IDEA)• 21st Century Grant• Striving Readers Grant• School Improvement Grant (SIG)

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Budget SummaryGeneral Operating Fund

Total Resources$2,177,000,000Including $34,000,000 in proceeds from medium-term financing $99,000,000 more than 2013

Total Expenditures & Transfers$2,141,434,000 $94,435,000 more than 2013

Ending Fund Balance$35,565,000Assuming Waiver of 2 percent Board Policy Including Fourth consecutive year of decreasing fund balance* 1.25% unassigned

-

=0

50100150200

2007 2008 2009 2010 2011 2012 2013 2014

* Requires written notification to state Department of Taxation

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Open BookVersion 2.0

Details of the Tentative Budget can be found online at: www.ccsd.net/openbook.

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Open BookVersion 2.0

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Timeline

April May June July

Tentative Budget AdoptionApril 3Board Work Session

Tentative Budget SubmissionRequired by April 15To State Department of Taxation

Final Budget AdoptionMay 15Board Work Session

Fiscal YearBeginsJuly 1

Final Budget SubmissionRequired by June 8To State Department of Taxation

MarchFebruaryJanuary

Budget Initiatives SubmittedBy Division & Department Leaders

Budget Initiatives PrioritizedBy the Superintendent & Executive Team

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Questions?

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Tentative budget presentation 040313 02

Documents

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