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2014-15 Budget Update
April 10, 2014
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Budget Process & Timeline
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•Strategic plan & goal setting•Initial projections based on current year events •Baseline staffing ratios are reviewed
October-November
•Board of Education updated on early projections and assumptions•Baseline staffing costs are calculated•Departments receive 2014-15 budget materials
December
•Governor’s State Aid figures released•School Based Budget Handbook distributed•School Based Budget Training for School Based Management Teams•Board updates & projection refinements continue
January -February
•Schools receive School Based Budget Workbooks for completion• Departments submit 10% reductions•Meet with union leaders to discuss savings opportunities•Budget update presented at regular Board meeting
March
•State Budget adopted with new state aid figures•Deficit adjusted and the closure measures near finalization•Four Year Plan is due to the Control Board•Public Budget Presentation
April
•Public hearing at Common Council Chambers•Budget is finalized and submitted for approvalMay
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School Based Budgeting Second year of the process Schools are provided baseline staff based on
enrollment Centrally assigned staff are layered on (Special
Ed, CTE, Student Support Teams, Attendance) Schools receive “Flexible” dollar allocations
based on student designations (ELL, Level 1 & 2, SIG transition)
Principals work with data and School Based Management Teams to make decisions on the use of the funds
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2014-15 General Fund Budget Deficit
Original Budget Deficit, January: ($49.7m)
Revenues Decreasing from $794.0m to $779.9m: ($14.1m)
Expenditures Increasing from $794.0m to $829.6m: ($35.6m)
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2013-14 Adopted Budget
2014-15 Projected as
of 1.25.14 ChangeRevenues: $794.0 $779.9 ($14.1)City Contribution $70.3 $70.3 $0.0County Sales Tax $38.3 $39.4 $1.1State Aid $634.2 $649.6 $15.4Use of Reserves $31.1 $0.0 ($31.1)Other Revenues $20.1 $20.6 $0.5
2014-15 Projected Revenues & Changes from 2013-14:
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2014-15 Projected Expenditures & Changes from 2013-14:
2013-14 Adopted Budget
2014-15 Projected as
of 1.25.14 ChangeExpenditures $794.0 $829.6 $35.6Compensation $237.0 $248.8 $11.8Pension Contributions $35.6 $41.2 $5.6Employee Health Insurance $45.2 $48.2 $3.0Retiree Health Insurance $66.6 $73.0 $6.4Other Employee Benefits $36.7 $38.4 $1.7Transportation $43.8 $44.7 $0.9Agency, BOCES & Other Tuition $34.7 $35.8 $1.1Charter School Tuition $101.0 $100.6 ($0.4)Debt Service Principal & Interest $121.3 $120.0 ($1.3)All Other Expenditures $72.1 $78.9 $6.8
150 teachers
Rates increase from 12% to 19.7% (ERS) and 16.25% to 17.53% (TRS)
FICA & Supplemental for above
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7
$9,369
$10,212 $10,582
$11,067 $11,078 $11,333
$12,800
$8,000
$10,000
$12,000
$14,000
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
Average Active Health Insurance Costs
Annual Pension Rates as a Percent of Salary
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7.63%
6.19%
8.62%
11.11%11.84%
16.25%17.53%
8.20% 7.25%
11.70%
16.16%18.70%
20.50% 19.66%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
TRS Average rate ERS Average Rate
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2014-15 Revised Budget DeficitOriginal Budget Deficit: ($49.7 m)
Deficit Closure Actions Through March: Use of Assigned Fund Balance (Reserves) $10.2 m
Central Office/Department Reductions $3.8 m
Information Technology & Shared Accountability - $1.0m Transportation - $.7 m
Assumes bus aide coverage of 75%; savings must be repurposed to cover after school bus aides
Service Center - $.5 m All other departments combined - $1.5 m
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2014-15 Revised Budget Deficit Facilities/School Changes $2.6 m
Close swing school 78 Close school 28, move department staff to 187 Put to minimal operations but retain 8 and 171 Close 18A (Parent Center); have rooms in 187 Merge #115 into #97 (Closure of 40, 44 and MEC Lease already assumed)
Cost adjustments (increases) for fringebenefits and other fixed costs ($4.9 m)
Revised Deficit March 24th ($38.0 m)
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2014-15 Budget Deficit as of March 24th ($38.0 m)
April 1st State Budget Released: Additional State Aid $15.5 m Charter Tuition legislation $ 3.0 m
Deficit remaining to be closed ($19.5 m)
Thank you to the Western New York Delegation!
2014-15 Revised Budget Deficit11
Special Education Recommendations - $7.6m
Implement the recommended staffing standard for Integrated Co-Teachers (ICT) so that whenever possible the ICT serves at least 5 students
It is recommended that the current staffing model (12:1+3:1) be maintained for personal care aides and the use of 1:1 aides is reserved for only cases where data supports the need
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2014-15 Budget: Deficit Closure Recommendations
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Teacher : StudentSpecial Education Service Delivery ModelsBUFFALO PUBLIC SCHOOLS 2013-2014
Student : Teacher Ratios
6:1 6:1NYSAA
8:1 8:1 TE
8:1 AU
12:1:1 12:1:2 12:1:3 15:1 CTRR
ICT
6:1 6:1 6:1 7:1 9:1 10:1 5:1 8:1 12:1 25:1 5:1
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ICT Staffing ICT Teachers with 1 student: 46 ICT Teachers with 2 students: 39 ICT Teachers with 3 students: 46
Proposed Guideline Change: ICT Teachers will service a minimum of 5
students whenever possible ICT in grades K-6 for ELA & Math, not other
content
Special Ed Teachers
684
671
650
663
712
610
620
630
640
650
660
670
680
690
700
710
720
03/09 04/10 04/11 04/12 05/13
SPECIAL EDUCATION TEACHER FTEs
Total FTE's
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Health Coverage Recommendations - $2.5m: Negotiate agreements with unions to eliminate
cosmetic surgery rider; affected members will receive a Health Benefit Card in return
Present teachers union with a retirement incentive that includes a one-time bonus and annual payments to age 65 to withdraw from District health care coverage in retirement
Retiree can obtain insurance through public exchange Retiree will receive Medicare Advantage Plan at no cost at
age 65
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2014-15 Budget: Deficit Closure Recommendations
Extended Day Program – Increase investment $3.1m
($1.7 m was included the 2013-14 budget for transportation)
Program Costs - $2.0 m Bus Aides - $.7m Administrator Overtime & Building Usage - $.4m
Physical Education – Increase investment $160k Continue to move forward with a compliance plan Support Project ACES with materials and staff
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2014-15 Budget Investments to Support Academic Priorities:
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Deficit Remaining to be Closed Revised Deficit April 1st: ($19.5m)
Deficit closure recommendations Special Education $7.6m Health Care $2.5m Closure of under-enrolled programs $0.5m
Investments Extended Day Program ($3.1m) Physical Education ($0.6m)
Deficit remaining to be closed ($12.6m)
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STATE AID, $665.1, 83%
CITY CONTRIBUTION, $70.3, 9%
ERIE COUNTY SALES TAX, $40.5, 5%
USE OF RESERVES, $10.2, 1% ALL OTHER
REVENUES, $19.7, 2%
2014-15 Draft BudgetGeneral Fund Revenues
$805.8m(in millions)
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Regular & CTE Instruction, $209.2, 26%
Special Education, $133.0, 16%
Student Support Services, $19.3, 2%
School Admin (P & AP) & Clerical, $25.9, 3%Transportation, $53.0,
7%
Facilities & Central Services, $65.4, 8%
Debt Service & Transfers, $123.3, 15%
Charter Schools, $98.1, 12%
Retiree Health Insurance, $69.1, 8%
General Support, $10.4, 1%
Special Items, $6.1, 1%
Instructional Administration,
$5.5, 1%
2014-15 Draft BudgetExpenditures By Functional
CategoryTotal $818.4 m
(in millions)
47%
30%
50% of the Budget Primarily Fixed Costs
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State Aid Excluding Building Aid, $19.1
Compensation, $(3.1)
Employee & Retiree Benefits, $65.9
Charter School Tuition, $31.1
Student Tuition Payments, $8.4
All Other Expenditures, $7.3
$(10.0)
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
Major Category Changes 2008-09 to 2014-15 Projections(1)
(1) Projections as of April 7, 2014
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Changes Over Time:Goal every year is to keep cuts as far from the classroom as possible. As such, since 2008-09 reductions & additions have been as follows:
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Functional AreaPositions (Reduced)/
Added Central Services (IT, Plant, Mail) (39.5) = (13%)
Finance (16) = (25%)Transportation (8) = (19%)Human Resources (5.5) = (16%)
Pupil Support Services (Attendance, Guidance, Social Workers)
+53 = +60%
Occupational Education (CTE) +24 = +10%
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Regular & CTE Instruction
50%
Special Education29%
School Admin (P & AP) & Clerical
6%
Student Support Services4%
Facilities & Central Services
7%
Transportation1%
General Support2%
Instructional Administration
1%
2014-15 Draft Budget Full Time Equivalents By Functional Category
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BPS (32,700) Charter (8,013) Agency (979) Non-Public (4,195)
$12,978 $12,605
$35,442
$1,107 $1,055
$1,055
$1,055
$116 $104
$104
$3,710
$2,037
Health Insurance for RetireesDebt Principal and Interst (Primarily JSCB)Instructional MaterialsTransportationOperations for District/Tuition
$19,947
$13,763
$36,497
$1,159
Costs Per Type of Student Included in the 2013-14 General Fund Budget
Further Deficit Closure Actions Are Needed To Close $12.6 m Gap
Lobbying efforts City – Building Sales; Contribution (7.5%) State
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0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
2013-14
Buffalo, 7.5%
Syracuse, 14.6%
Rochester, 15.4%
Yonkers, 42.9%
NYC, 55.1%
City Contribution as a Percentage of Total Revenues for 2013-14
Source: Conference of Big 5 School Districts Revenues for the 2013-14
Health Insurance Vendor reductions Department reductions continue
Unknown – impact of turnaround plans for Bennett and MLK schools
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Further Deficit Closure Actions Are Needed To Close $12.6 m Gap
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Timeline Board Meeting April 23rd
Finance & Operations Meeting April 30th
Common Council Hearing Week of May 5th
Budget Adoption May 14th
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Questions?32
Questions can be submitted on the index cards provided
Presentation will be posted on the Finance Page of the District Website
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