BEAUFORT COUNTY

SCHOOL DISTRICT

FY 2018-2019

PRELIMINARY

GENERAL FUND

BUDGET

Dr. Jeffrey Moss, Superintendent

Tonya Crosby, Chief Finance and Operations Officer

April 27, 2018

Board Work Session

AGENDA

Budget Goals

Review Expenditures

Impact on employees

Review Positions

Updates from the County

Challenges

Next Steps

4/27/2018 2

BUDGET GOALS

Increase staff compensation

Enhance safety measures

Increase training opportunities

Address growth

Identify opportunities for savings

No tax increase in operations

4/27/2018 3

EXPENDITURES

4/27/2018 4

FIVE YEAR COMPARISON-EXPENDITURES

4/27/2018 5

FY14 FY15 FY16 FY17 Proj FY18

Budget 182,906,012$ 189,558,841$ 203,513,932$ 215,451,995$ 225,764,555$

Actual 182,302,338$ 188,921,762$ 201,641,889$ 214,215,155$ 223,764,555$

Variance 603,674$ 637,079$ 1,872,043$ 1,236,840$ 2,000,000$

Percentage 0.3% 0.3% 0.9% 0.6% 0.9%

See Handout titled “Comparative Budgeted

Revenues and Expenditures-General Fund”

GENERAL FUND SPENDING BY OBJECT

Salaries $133.456%

Benefits $52.622%

Services $31.613%

Supplies $13.26%

Charter School $5.82%

Other $2.31%

Salaries $133.4

Benefits $52.6

Services $31.6

Supplies $13.2

Charter School $5.8

Other $2.3

Salaries +

Benefits

= 80% of totalSee Handout FY 2019 Budget Report

(subtotals per Board member request)4/27/2018 6

$ in millions

HISTORY OF STEP AND COLA INCREASES*

4/27/2018 7

CERTIFIED Proposed

07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19

STEP Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes

COLA % 3.31% 3.85% 0% 0% 0% 2% 0% 0 0 2% 0 1%

SALARY STUDY n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

CLASSIFIED Proposed

07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19

STEP No No No No No No Yes No No Yes Yes Yes

COLA % 3.31% 2.50% 0% 0% 0% 3% 0% 0 0 0 0 1%

SALARY STUDY No No No No No No No No Yes No No No

ADMINISTRATORS Proposed

07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19

STEP No No Yes Yes No Yes Yes No No Yes Yes Yes

COLA % 3.31% 2.5% 0% 0% 0% 2% 0% 0 0% No No 1%

SALARY STUDY No No Yes No No No No No Yes No No No

*See handout titled “Historical COLA and Step Increases

4/27/2018 8

Average Effect on Teacher Salary

Bachelors + 0 Bachelors + 7 Masters+10

Current Salary

Base Salary 35,156$ 40,782$ 49,745$

Locality 3,000 3,000 3,000

Current Subtotal 38,156 43,782 52,745

Increase:

Step - 948 1,055

COLA (1%) 352 417 508

Locality 1,000 1,000 1,000

1,352$ 2,365$ 2,563$

New Salary 39,508$ 46,147$ 55,308$

4/27/2018 9

Average Effect on Classified Salary

Level 101+0 Level 107+7 Level 114 + 10

Current Salary

Base Salary 21,870$ 35,964$ 55,938$

Locality 1,000 1,000 1,000

Current Subtotal 22,870 36,964 56,938

Increase:

Step 602 830 1,208

COLA (1%) 225 368 571

Locality 500 500 500

1,327$ 1,698$ 2,279$

New Salary 24,197$ 38,662$ 59,217$

EXPENDITURE INCREASES INCLUDED

IN FY 2018-2019 BUDGET

State/Federal Mandated Increases:

Salary Step Increase- eligible certified staff 1,353,969

Cost of living increase-all certified staff (1%) 1,147,046

Retirement increase 1,998,169

Health/Dental insurance increase 1,044,261

4 Special Education teachers & 4 assistants 397,500

Special Education assistants (IEP-directed) 476,000

5 ESOL teachers 325,000

Total State/Federal Mandates 6,741,945$

4/27/2018 10

EXPENDITURE INCREASES INCLUDED

IN FY 2018-2019 BUDGET

Description Projected Cost

Local - Increases due to enrollment growth*:

13 School based employees 931,628$

10 Teachers for Growth 650,000

Charter School Allocations (+19 students) 297,350

School Non-Salary Allocations 33,391

Academic Stipends 6,450

Total increases due to growth 1,918,819$

4/27/2018 11*All costs include salary and benefits.

See Handout titled “Comparison of Positions”

EXPENDITURE INCREASES INCLUDED

IN FY 2018-2019 BUDGET

4/27/2018 12

Description Projected Cost

Operational Increases:

Energy 323,666

Maintenance 111,550

Grounds 88,250

Water, Sewer, and Trash 51,229

Total Operational 574,695$

EXPENDITURE INCREASES INCLUDED

IN FY 2018-2019 BUDGET

Description Projected Cost

Safety and Security:

School Resource Officers 89,742$

Hand held metal detectors 17,000

Radios-Transportation 75,200

Bus Cameras 416,000

Crossing Guards (2 additional) 31,500

Total Safety and Security 629,442$

4/27/2018 13

EXPENDITURE INCREASES INCLUDED

IN FY 2018-2019 BUDGET

Description Projected Cost

Other Increases:Locality supplement for teachers* 1,910,788$ Locality supplement for classified staff & admin** 583,463 Step increase for classified and administrators 667,149 COLA-classified and administrative staff (1%) 491,363 ADEPT stipends 287,348 Substitute teachers 125,725 Summer Instutute expansion for new teachers 116,480 Athletics expansion 65,000 Montessori Training 42,851 County admin fees-garage and fuel 20,000 Unemployment 25,000 Other School and Departmental Increases 220,664

Total 4,555,831$

4/27/2018

14

* This recruiting and retention supplement would be an additional $1,000 for teachers only, totaling $4,000 per teacher.

** This recruiting and retention supplement would be an additional $500 for classified and administrative staff only, totaling

$1,500.

EXPENDITURE DECREASES INCLUDED

IN FY 2018-2019 BUDGET

Description Projected Cost

Custodial Services (479,575)

4 PreK staff moved to Special Revenue Funding (205,500)

Energy Savings from Solar Farm (approx. $1,000/day) (300,000)

Property Insurance (149,937)

Telecommunications (75,320)

Athletic Insurance (45,000)

Interest on Tax Anticipation Note (15,000)

Total (1,270,332)$

4/27/2018 15

SUMMARY OF FY 2018-2019 INCREASES

% of Total

Type Increase Amount Increases

State/Federal Mandates 6,741,945$ 51%

Local - Enrollment 1,918,819 15%

Operational 574,695 4%

Security 629,442 5%

Other 4,555,831 35%

Total Increases 14,420,732

Less Decreases (1,270,332) -10%

Net Increases 13,150,400$

Current Budget 225,764,555

FY 2018-2019 Preliminary 238,914,955$ 4/27/2018 16

COMPREHENSIVE BUDGET (REVISED)

2017-2018 2018-2019 Change

Approved Budget Proposed Budget

Comprehensive Budget (Total) $358,051,163 $373,741,923 $15,690,760

General Fund 225,764,555 238,914,955 13,150,400

Special Revenue Funds 19,666,568 19,691,260 24,692

Education Improvement Act Funds 12,555,541 14,349,263 1,793,722

Debt Service Fund 57,797,710 57,528,426 (269,284)

School Building Fund 28,500,000 29,270,000 770,000

Internal Service Fund 900,000 900,000 -

School Food Service Fund 9,907,230 10,074,720 167,490

Pupil Activity Fund 2,959,559 3,013,299 53,740

Millage required for General Fund 113.5 113.5 -

Millage required for Debt Service 31.7 31.7 (0.0)

Total Millage Required 145.2 145.2 (0.0)

Projected Student Enrollment 22,187 22,434 247

*Actual 2017-2018 45 day count

*

4/27/2018

17

HANDOUTS

4/27/2018 18

• Comparative Budgeted Rev & Exp-General Fund

• Historical COLA and Step Increases

• FY 2019 Budget Report-(by subtotals)

• Four Year Position Comparison

REVENUE SOURCES

4/27/2018 19

LOCAL REVENUE-UPDATE FROM THE COUNTY

Reassessment

Growth

Rollback

Goal is revenue neutrality

County Staff

Growth in millage (not reassessment)

Considered shifts from non-owner occupied residences to owner-occupied (4%)

Impact of that shift

Meeting with staff prior to May 7th

Next CC Finance Committee Meeting is May 7th4/27/2018 20

STATE REVENUE

Education Finance Act Funds (EFA)

23%, lowest percentage of funding of all SC school districts

Base Student Cost $2,485 (Increase of $75 per weighted

pupil)

Anticipated Funding = $16.6M (Increase of $3.8M)

Act 388 (Local Property Tax Relief)

$45.5M (Increase of $819k)

Annual loss of approximately $18M to $19M (30% loss)

4/27/2018 21

A B C

Senate Finance Version FY 2017-2018 FY 2017-2018 FY 2018-2019Est. FY18 Value of the Mill=$1,226,116 Approved Projected Projected

Budget Actual Budget

Millage Rate 113.5 113.5 113.5

1 Local

2 Ad Valorem (Current and Delinquent)-Net of TIFs 137,164,216 139,164,216 140,555,858

3 Penalties and Interest 800,000 935,000 900,000

4 Rent 293,500 293,500 293,500

5 Other Local 370,000 284,200 240,000

6 Total Local Revenue 138,627,716$ 140,676,916$ 141,989,358$ 7 State

8 Sales Tax Reimbursement on Owner Occupied 44,711,081 44,730,770 45,550,014

9 Fringe Benefits/Retiree Insurance* 9,666,234 10,873,251 13,245,509

10 Education Finance Act* 11,795,795 12,800,381 16,574,183

11 Reimbursement for Local Property Tax Relief 7,036,261 7,036,261 7,036,261

12 Other State Property Tax (Homestead/Merchant Inv) 2,442,079 2,377,946 2,487,946 13 Other State Revenue (Bus Driver Salary/Misc) 1,200,179 1,268,505 1,341,397

14 Total State Revenue 76,851,629$ 79,087,114$ 86,235,310$

15 Federal

16 Other Federal Sources 700,000 700,000 680,000

17 Total Federal Revenue 700,000$ 700,000$ 680,000$

18 Total Revenue 216,179,345$ 220,464,030$ 228,904,668$

19 Transfers from Special Revenue* 4,975,804 5,273,672 6,653,327

20 Transfers from Other Funds 450,000 450,000 500,000

21 Total Other Financing Sources (Uses) 5,425,804$ 5,723,672$ 7,153,327$

22 Total Revenue and Other Financing Sources 221,605,149$ 226,187,702$ 236,057,995$

23 Expenditures 225,764,555 223,764,555 238,914,955

24 Increase(Decrease) in Fund Balance (4,159,406)$ 2,423,147$ (2,856,960)$

25

26 Beginning Fund Balance 36,263,129 36,263,132 38,686,279

27 Ending Fund Balance (Projected) 32,103,723$ 38,686,279$ 35,829,319$

28 % of Next Year's Expenditure Budget 13.4% 16.2% 14.4%

*State Revenue Estimates – Senate Finance 4/4/2018

4/27/2018 22No Proposed Millage Increase

FUND BALANCE

4/27/2018 23

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

FY14 FY15 FY16 FY17 PROJ FY18 PROJ FY19

14.6%15.7%

13.4%16.1%

16.2%

14.4%

Fund Balance-Actual vs. Policy

15%

13%

10%

63 days62 days52 days61 days55 days

Board’s goal is 13% to 15%

State Minimum=30 days

GFOA Recommendation=60 days

55 days

HANDOUTS

Utilization of Special Revenue Funds

History of Title II Allocations

4/27/2018 24

CHALLENGES

Continuing Instructional Momentum

Student Growth and Diversity

Unfunded Mandates

Teacher Recruitment and Retention

Fund Balance Reserves

Facilities Maintenance

4/27/2018 25

UPCOMING BUDGET DISCUSSIONS

May 1, 2018 – Board budget discussion

May 3, 2018 - Public Forum-Bluffton High School-6pm Media Center

May 7, 2018- County Council Finance Committee (County Channel)

May 8, 2018 – Public Forum-Battery Creek High School-6pm Media Center

May 15, 2018–Board certifies the 2018-2019 Budget

May 14, 2018 –County Council First Reading of Budget (Title Only)

May 29, 2018– County Council Second Reading of Budget

June 11, 2018– County Council Third and Final Reading of Budget

June 25, 2018 –County Council Final Reading (if needed)4/27/2018 26

4/27/2018 27

Comments/Questions?