Update on 2014-15 Finances & 2015-2016 Budget Process February 9, 2015 1.

1

Update on 2014-15 Finances &2015-2016 Budget Process

February 9, 2015

2

Legislative/Economic Update Governor’s spending plan

Significant revenue growth with competing demands

School funding lawsuit

Oil prices - Texas likely to grow at slower pace than USA.

2015-16 – need to budget conservatively

BCC call for funding improvements: We are always in

this mode.

BCC Email

Source: FBISD Finance & Appraisal District 3

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014E

2015E

$0.0

$5,000,000,000.0

$10,000,000,000.0

$15,000,000,000.0

$20,000,000,000.0

$25,000,000,000.0

$30,000,000,000.0

$35,000,000,000.0

$6,943,096,292.0$7,645,103,331.0$7,787,745,045.0$8,347,157,494.0$9,279,341,625.0

$10,504,448,073.0$11,784,529,491.0

$12,935,445,377.0$14,291,252,334.0

$15,492,781,708.0$17,028,439,172.0

$18,556,987,462.0$20,470,386,290.0

$22,901,758,472.0$23,891,174,683.0

$23,305,167,164.0$23,427,002,487.0$24,392,999,081.0

$26,075,772,753.0

$28,346,502,067.0

$30,755,954,743.0

$B

Budget and Financial Update

8.5% Local Value

Growth

Property Value by Year

FBISD Property Value 2014-15

Resi-den-tial;

78.0%

Commer-

cial; 13.9%

Industrial; 4.9% Utilities & Other; 3.2%

4Source: Texas Comptroller of Public Accounts

Total Tax Year 2014 CPTD Value $28.3 Billion

5

State Revenue Estimate-Early ThoughtsNew Comptroller Hegar presented initial revenue estimate on

January 12 The estimate can be modified at any time

General revenue above current biennium spending levels of about $18 billion

Increased property value provides effective new revenue

Estimated price of crude oil ($58.44/BBL - Brent) may influence revisions—average in BRE of $64.50 & $69.27 in 2016 & 2017

© 2015 Moak Casey and Associates

6

State Revenue Estimate Sales Tax biennial growth 8.9%

2014-15 biennium growth estimated at 12.1%

Other Major Tax Revenue

Natural gas tax down: -8%

Oil tax down: -14.3%

Motor vehicle sales up: +14.6%

Franchise tax down: -1.6%

Property Values (Combs projection)

8.64% for 2014

5.71% for 2015

5.30% for 2016© 2015 Moak Casey and Associates

7

Rainy Day Fund Economic Stabilization Fund (Rainy Day Fund)

Allocation may be superseded by 2/3 vote in each house

Estimated balance of $8.5 billion ending the current biennium

Projected $11 billion balance at end of 2017, after transfers to transportation


8Source: LBB & FBISD Finance

State Revenue Sources2014-15 Biennium

Federal Funds35.5%

Interest and In-vestments

1.0%

Other Receipts16.0%

Sales Taxes26.2%

Motor Fuel3.1%

Motor Vehicle Sales and Rental Taxes

3.9%

Franchise Tax4.5%

Other Taxes5.1%

Severance Taxes4.6%

9Source: LBB & FBISD Finance

State Appropriations – All Funds

Agencies of Education37.0%

Health and Human Services36.9%

General Government2.4%

General Provisions .2%

The Legislature .2%

Regulatory.6%

Business & Econ Dvlp / Transportation

13.1%

Natural Resources 3.4%

Public Safety/Criminal Justice 5.8%

The Judiciary .4%

10

Reaction to Proposed State BudgetsAppropriations for schools would have declined from current

biennium due to property value growth

Not a good position when arguing the state’s case in Supreme Court

Continues state’s reliance on property tax to fuel the education funding structure

Significant formula improvement without increased state cost is a re-run of 2013, just cheaper

Still quite a bit of room under the spending limit, and lots of money available


11

Factors that influence State Revenue Enrollment Average Daily Attendance (ADA) Special Services / Weights (WADA) Property Values Free and Reduced Percentages Special Education population Career & Technology teacher utilization

Prior Year Comptroller Values Central Appraisal Dist. Values ARB – Appraisal Review Board Collection Rate Frozen Values

Source: FBISD Finance

Average Student Enrollment

12

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E

55,000

57,000

59,000

61,000

63,000

65,000

67,000

69,000

71,000

73,000

75,000

61,011

62,657

65,92766,792

67,78068,507

69,066 68,710 68,964 69,588

70,85772,183

73,082

Source: FBISD Finance & District Demographer Earliest Estimates/Least Likely Scenario


72,317Projected

(0.19% diff)

13Source: FBISD Finance

2011-12 2012-13 2013-14 2014-150%

10%

20%

30%

40%

50%

60% 55.3% 54.4%52.7% 54.1%

43.2% 44.4%45.7%

44.6%

1.5% 1.2% 1.6% 1.3%

Local State

Federal

General Fund Revenue SourcesProjected


14

Timing of Budget Development


Phase 1

• Essential Campus & Non-Campus Staffing Requests• February

Phase 2

• Other Staffing Changes Based on Staffing Guidelines• March

Phase 3

• Compensation & Other Requests Based on Session• May/June


Source: FBISD Finance15

2015-16 Initial Position Request Summary


Classification FTEs Salary

Elementary 46 12 $638,432

Career and Technical Education 32 $2,024,000

Departments 10 $740,102

Non-General Funded Positions 11 $924,279

Total Position Requests 64 $4,326,813

Budget & Compensation Committee

Nominated delegates

Participation from all campuses and departments

Document ideas and set priorities

Principals & Directors

Teacher Forum

Benefits Committee


Collaborative Budget Process

Budget Committees

February 16Regular Board Meeting

Consider Approval of Critical Staffing Recommendations

March 23Board Workshop

Review of Compensation and Additional Staffing Changes

March 30Regular Board Meeting

Consider Approval of Additional Staffing Recommendations

April 13Board Workshop

Budget and Legislative Update; Review Contract Recommendations; Initial Discussion on Non-staffing Enhancements; Debt Service Update

17

Critical Dates


April 20Regular Board Meeting

Consider Approval of Contract Recommendations (Renewals, Non-Renewals, Terminations)

May 11Board Workshop

Discussion of Additional Staffing, Compensation, Non-Staffing Enhancements; Action to Call Meeting for the Purpose of Discussing the Proposed Tax Rate and Adoption of the 2015/2016 Budget

May 18Regular Board Meeting

Consider Approval of Additional Staffing, Compensation, Non-Staffing Enhancements; Review Proposed Budget

June 1Board Workshop Public Hearing on Budget and Proposed Tax Rate

June 15Regular Board Meeting Budget Adoption

18

Critical Dates



ProjectedState Funding Elements 2013-14 BudgetTotal Cost of Tier I $449,710,824Less: Local Fund Assignment ($240,390,472)State Share of Tier I $209,320,352Tier II and Other Programs $12,848,237TRS on behalf $22,100,000

Total 2013-14 State Allocation $244,268,589

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Update on 2014-15 Finances & 2015-2016 Budget Process February 9, 2015 1.

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