BPS FINANCIAL CONTEXT AND FY17 PLANNING€¦ · group Financial strategy . BOSTON PUBLIC SCHOOLS 10 Topics for discussion ... • Yellow bus services • MBTA • Transportation for

BOSTON PUBLIC SCHOOLS

BPS FINANCIAL CONTEXT AND FY17 PLANNING

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BOSTON PUBLIC SCHOOLS BOSTON PUBLIC SCHOOLS

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Reminder of the “why”

Do more of what works for kids.


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Topics for discussion

Background and context Historic trends in the BPS budget Preliminary planning for FY17


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City of Boston: General Fund Support for All Education

For the past five years, General Fund Spending for Education, including BPS and Charter Schools, has grown rapidly, at an average rate of 6% a year.


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City of Boston: Revenue to Support Boston Education

Stagnant State Education Funding

At the same time, State Revenue to support Education has been stagnant: • Boston’s Chapter 70

Revenue has grown by <1% per year.

• The Commonwealth has not fulfilled its obligation to fund Charter School Reimbursement, to the tune of $30M in lost revenue for Boston over the past 2 years.

This has led to a 7.6% average annual growth in the City’s Contribution (net State Education Funding) to Education in Boston.


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City of Boston: Education as a portion of Boston’s Budget

BPS has traditionally accounted for 35% of Boston’s Budget. With the growth of Charter Schools, Education now accounts for 40% of Boston’s budget.

General Fund FY16 Spending


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We face a structural deficit, where expenses

consistently go up faster than revenues

Time

$

Revenue

Expenses Level service costs up (e.g. salary, benefits,

contractual step-up’s, student need)

Do more (e.g. more K1, ELT)

Do better (e.g. HC strategy, increased

support for level 4 and 5 schools)

Loss of entitlement funds (shifting population)

State Chapter 70 Education funding has been

growing <1% per year for the last 5 years


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Time

$

Revenue

Expenses

A long term financial plan means stepping back and identifying the bold, multi-year changes that reverse our structural deficit and allow us to

reinvest in what works best for kids.

Annual “cuts” to align costs to

revenues

And our annual budget cuts don’t solve the long

term problem

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We are proactively taking steps to improve our financial picture for future years

Existing process

New process

Facilities Master

Plan

Collective bargaining

Revenue strategy

Operations work group

SPED work group

Financial strategy


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We think about our budget in five broad categories

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Schools School Services Budgeted Centrally Central

Benefits Transportation

Expenses within a school’s budget, as well as funds held centrally that are disbursed to schools throughout the year. • Teachers • Support staff • Aides

Programs/services for schools that are budgeted centrally. • Special education • Facilities and maintenance

(including custodians and utilities)

• Programs such as safety services and psychological services

Funds used for leadership and institutional support for the district . • Central office departments (i.e.,

Office of Human Capital, Finance)

• Programs that support schools (i.e., professional development, curriculum design)

Funds used for transportation for students. • Yellow bus services • MBTA • Transportation for special

education students, homeless students, and after school programs

Funds used for employee benefits. • Health insurance • Medicare • Unemployment compensation • Workers compensation


BPS spends $1.01B per year of general funds, with

almost all going towards schools and school services

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Note: FY16 budget accurate as of 11/10/15

$537,304,226 53%

$171,711,378 17%

$132,740,088 13%

$109,455,202 11%

$62,289,573 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dollars % of Total

FY16 Budget (General Fund only)

Central Office

Transportation

Benefits

School ServicesBudgeted CentrallySchools


This spending supports the key functions and cost

items for the district

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FY16 Budget by Service Area and Function (General Fund)


Note: Central includes both personnel and non-personnel

costs

To read this chart: The full rectangle = the total FY16 general funds budget (excludes grants). The area of each rectangle corresponds to the size of the budget for that specific category (like a two dimensional a pie chart)

0

20

40

60

80

100%

Schools

Administrators and secretarial staff

Support Staff

Teachers

Subs

Non-personnel

Aides

$537M

School ServicesBudgeted Centrally

Student / SchoolSupport

Facilities andMaintenance

Special Education

GeneralAdministration

RegularEducation

$172M

Benefits

Benefits

$133M

Transportation

Transportation

$109M

OHC

Leadership

SpecialEducation

ProfessionalLearning/TLTs

Operations

OIIT

Strategy(Other)

Student SupportServices

Instructional Support

Finance

ELL

Data andAccountability

Other

ExpandedLearningTime

$62M Total = $1.01B

Central


The district also has $139M in grant funding, for a

grand total of $1.15B

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FY16 Budget by Service Area and Function (All Funds)


To read this chart: The full rectangle = the total FY16 general funds budget (excludes grants). The area of each rectangle corresponds to the size of the budget for that specific category (like a two dimensional a pie chart)

0

20

40

60

80

100%

Schools

GrantsSubs

Non-personnel

Aides

Administrators and secretarial staff

Support Staff

Teachers

$571M


Grants

General Administration

Regular Education


Facilities andMaintenance

Special Education

$244M

Benefits

Grants

Benefits

$146M

Transportation

Transportation Staff

SPED Outof District

SPED InDistrict

RegularEducation

$109M

Grants

FinanceInstructional Support

Student Support Services

ELLExpanded Learning Time

OtherData and

Accountability

Special Education

Leadership

OHC

ProfessionalLearning/TLTs

Strategy

(Other)

OIIT

Operations

$83M Total = $1.15B

Central


% Annual Growth

% Change FY11-16

$ Change FY11-16

0.8% 4% $3.1M

7.5% 44% $33.4M

1.3% 7% $9.0M

4.0% 22% $43.7M

2.8% 15% $73.1M

Total 3.1% 16% $162.4M

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Total expenditures have been increasing 3.1% annually, with the highest growth seen in transportation, school services, and schools

$498M $501M $518M $529M $545M $571M

$200M $191M $201M $208M $218M $244M

$137M $133M $134M $134M $135M

$146M $76M $81M $91M $108M $103M

$109M $80M $83M

$85M $86M $86M

$83M

$0M

$200M

$400M

$600M

$800M

$1,000M

$1,200M

$1,400M

FY11 FY12 FY13 FY14 FY15 FY16B

Mill

ion

s

Expenditures by Service Area, FY11-FY16B (All Funds)

Central Office

Transportation

Benefits


Schools

Note: FY09-FY15 represent actual expenditures. FY16 represents budgeted amounts accurate as of 11/10/15. These cost combine both the increasing costs of service, and BPS’s efforts to control costs

Note: The work to understand the drivers of these changes is ongoing and in-process


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Of the $33M increase in transportation, $22M has come from

SPED-related costs, both in district and out of district

$40 $41 $47

$54 $52 $51

$28 $30

$33

$40 $37 $42 $7

$8

$9

$11 $12

$14

$2 $2

$2

$2 $2

$2

$- $-

$-

$- $0

$0

$-

$20

$40

$60

$80

$100

$120


Mill

ion

s

FY11-FY16B Transportation Expenses (All Funds) % Annual Growth Rate: 7.5%

Athletics: n/a

Transportation Staff: 8.5%

SPED Out of District: 15.1%

SPED In District: 8.5%

Regular Education: 5.1%


% Annual Growth

% Change FY11-16

$ Change FY11-16

11.9% 75.6% $9M

6.8% 38.8% $6M

-0.1% -0.7% $0M

8.9% 53.3% $25M

3.3% 17.4% $13M

4.4% 24.2% $47M

1.1% 5.6% $17M

Total 3.1% 16.8% $117M

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Within schools budgets and school services budgeted centrally, ELL

and SPED account for 62% of increased spending

$298 $289 $294 $298 $307 $315

$194 $189 $199 $207 $217 $241

$75 $79 $82 $80 $81

$88 $48 $55 $59 $62

$64

$73 $55 $54

$57 $58 $58

$54

$16 $14 $17 $21

$25

$22

$12 $12 $11

$11 $12

$20

0

100

200

300

400

500

600

700

800

900


Mill

ion

s

School and School Service Spending, FY11-FY16B

Other

GeneralAdministration

Physical Plant

Bilingual / SEI


Special Education

Regular Education

$72M, or 62%, of the increase from FY11-FY16 has gone towards

services for SPED or ELL


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Over time, the number of FTEs in BPS has been relatively constant, with slight declines in recent years

7,168 7,053 7,267 7,327 7,312 7,280

1,203 1,172 1,258 1,279 1,286 1,280

589 633 701 685 615 554 210 210 218 238 239 240

-

2,000

4,000

6,000

8,000

10,000

12,000


FY11-FY16B FTEs by Service Area (All Funds) % Annual Growth: 0.4%

Transportation 2.8%

Central -1.2%

School Services BudgetedCentrally 1.2%

Schools 0.3%

77.8%

13.7%

5.9% 2.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY16B

FY16B FTEs

Note: These FTE counts are not adjusted for some part time positions, such as bus monitors and food service workers, which are coded as a full FTEs though the positions are part time The increase in central after FY11 was driven by +30 FTEs in SPED and +10 in operations. Going into FY13, the increase was driven by +25 in welcome centers and +20 in engagement


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While total FTEs have been relatively flat, we are spending $87M more on

salaries vs FY12 as average salaries have risen, including an 11% increase

in average teacher salaries

$624 $648

$675 $698 $711

$81.4 $82.3 $86.4 $88.1 $90.0

0

10

20

30

40

50

60

70

80

90

$-

$100

$200

$300

$400

$500

$600

$700

$800

FY2012 FY2013 FY2014 FY2015 FY2016B

Tho

usa

nd

s

Mill

ion

s

Overall Salary Expenses and Average Salary, FY12-FY16B

Salary Avg Salary (teachers)


FY 2015

$71.4M Reductions:

• $33.8M: Central office reductions (including 126.6 FTE reduction)

• $11M: Enrollment adjustments

• $11M: Transportation services

• $5.5M: SPED changes

• $5M: Health insurance

• $4M: Grant changes

• $1.1M: Adult Ed

FY 2016

$36.1M Reductions:

• $15.5M Central office reductions (including 134 FTE reduction)

• $9.8M Transportation services

• $4M Food and nutrition services

• $3.8M School budgets

• $2.9M School Services

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In past budget cycles, BPS has focused cuts on central

administration to protect schools

$34

$16

$11

$10

$11

$6

$5

$4

$4

$4 $3

$1

$-

$10

$20

$30

$40

$50

$60

$70

$80

FY 2015 FY 2016

Mill

ion

s

Proposed Cost Reductions, FY15 & FY16

Adult Ed

School services

School budgets

Grant changes

Food and nutritionservices

Health insurance

SPED changes

Enrollment adjustments

Transportation services

Central officereductions

Only $3.8M of $100M+

reductions in the past two years

have been from school budgets


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As a result, the majority of FTE changes have been to

the central office

SchoolsSchool Services

BudgetedCentrally

Central Transportation Grand Total

# Change in FTEs -31 -6 -61 2 -98

% Change FY15-FY16 -0.4% -0.5% -10.0% 0.6% -1.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

-120

-100

-80

-60

-40

-20

0

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FY15 to FY16B FTE Changes by Service Area (All Funds)

# Change in FTEs % Change FY15-FY16

Note: These FTE counts are adjusted for some part time positions, such as bus monitors which are coded as a full FTE though the work is part time. Additionally, the FTE for “food service workers” has be reclassified as “schools” though the budget team is in the process of re-allocating those FTEs to the school budget codes


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As we contemplate tradeoffs for FY17 and beyond, our

decision-making is guided by our core values


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Preliminary FY17 overview

* Strategic priorities will only be funded pending success in achieving efficiencies

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

~$36M

~$28M

~$10M

~$5M

~$7-$14M*

~$8M

$12-$17M

~$14M

~$6M

Includes $21M increase in

salary & benefits


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What’s driving up costs for BPS in FY17?

• Rising cost of salaries and benefits for existing

employees

• Adjusting where we are running over-budget today (transportation, custodians, early hiring)

• Inflation / general cost-of-doing business for non-

personnel expenses

• Slightly off-set by small decline in overall

enrollment projection


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What are some of the potential FY17 investments?

Basic Operations and Past Commitments

• Deferred maintenance to support health and safety in our

schools

• Turnaround supports

• ACC move

• Classroom expansions

Strategic Investments

• Extended Learning Time, Cohort 2

• Supports for Special Education transitions to new service models

• Expansion of K1 seats

• 100 Day Plan


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The following changes were included in WSF school

budgets released this Monday

• High school staffing assumptions

• Special education weights

• Projections reconciliation (adjusting funding

based on actual enrollment)

• Putting guardrails on the costs of our early hiring

initiative


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We are still early in the budget process with important

steps ahead of us

• Partnering with schools to navigate changes to

their budgets

• Continuing to partner with central departments

to identify possible efficiencies or reductions in

service

• Engaging with our community and the School

Committee for feedback and to iterate on our

plans

Documents

BPS FINANCIAL CONTEXT AND FY17 PLANNING€¦ · group Financial strategy . BOSTON PUBLIC SCHOOLS 10 Topics for discussion ... • Yellow bus services • MBTA • Transportation for