FY2014 Budget Development: Assumptions Staffing Formulas · AUSTIN Independent School District 6 FY2014‐15 Budget Assumptions Highlights (continued) • Assumes 5.97% increase in

AUSTIN Independent School District 1

Nicole Conley, Chief Financial OfficerMichael Houser, Chief Human Capital Officer

FY2014‐15 Budget Development: Budget Assumptions & Staffing Formulas

November 11, 2013DRAFT—For discussion purposes only.


Overview: Actions by the Board• Approval of Budget Assumptions:

– Considered best practice in long‐range budget planning and forecasting to ensure that financial assumptions are transparent and agreed upon by governing officials

• Approval of Staffing Formula:– Decisions on staffing allocations need to be finalized

earlier so that campuses can know what staffing will be in place in order to build student course offerings for the upcoming year

DRAFT—For discussion purposes only.


Overview of Discussion1. Proposed Budget Assumptions:

– Highlights– Accounting for inflationary costs in the baseline

budget (inflation, fuel, utilities and health)– Compensation– Additional revenue from TRE

2. Proposed Staffing Formula Adjustments

3. Subsequent Budget Planning



FY2014‐15 Budget

Development: Budget

Assumptions

AUSTIN Independent School District



FY2014‐15 Budget Assumptions Highlights• The budget assumptions are used to develop the revenue and expenditure

estimates for the preliminary budget

• Currently assumes FY2013‐14 and FY2014‐15 SB1 revenue per WADA compressed rate $5,652

• Assumes decrease in student enrollment from snapshot data (85,391) of 297 students (85,094) based on historical trends and 2‐yr cohort model– Estimated revenue loss due to current year projected enrollment is

approx. $10 million (reduced WADA primarily due to econ dis and spec ed reduction)

– Demographer projections will be finalized in January and reevaluated– Multiple factors affect initial projections that are beyond district control:

• Decrease in birthrate in 2008 due to economic crisis• Cost of living and affordable housing in Austin

– Moderate losses due to increase in educational options within district boundaries (charters and private) will necessitate new ways of doing business



FY2014‐15 Budget Assumptions Highlights(continued)

• Assumes 5.97% increase in property taxes– Statutorily bound to use certified appraisal amounts which are

typically conservative.– Projected values will change based on certified values provided by

the Chief Appraiser in April (preliminary) and late July (final)• Assume current tax rate of $1.242 unless otherwise directed:

• Alternative scenarios can be presented separately if/as the Board contemplates a possible Tax Ratification Election (TRE) in June 2014/2015 or November 2014/2015

• 99% collection rate based on two‐year average• Assumes current program for local and historic exemptions


Tax Rate FY2013‐14 FY2014‐15

Total Tax Rate per $100 of Taxable Value $1.242 $1.242

M&O Tax Rate (Operations) $1.079 $1.079

I&S Tax Rate (Debt Service) $0.163 $0.163


FY2014‐15 Budget Assumptions:Projected Additional Revenue from TRE

ScenarioTax Rate

Local Revenue Generated(Above Status quo)

Net Revenue Retained

(Above Status quo)

EstimatedAverage Taxpayer Impact

(Annual Increase)

EstimatedMedian Taxpayer Impact

(Annual Increase

2 Four-cent increase 1.1190 $28.0M $14.4M $102 $1113 Five-cent increase 1.1290 $35.0M $18.0M $128 $1384 Six-cent increase 1.1390 $42.0M $21.6M $153 $166

5Seven-cent increase 1.1490 $49.0M $25.2M $179 $194

6 Eight-cent increase 1.1590 $56.0M $28.9M $204 $221

7Nine-cent increase (maximum) 1.1700 $63.7M $32.8M $233 $252

*Based on certified values from TCAD. These numbers are subject to change when TCAD releases the preliminary values in May 2014.DRAFT—For discussion purposes only.


FY2014‐15 Budget Assumptions Highlights(continued)

• Operating costs for New North Central Elementary School #2 and New Performing Arts Center opening 2014‐15

• Incorporates inflationary costs for health, fuel and utilities

• Funding increases for mandatory services or other identified strategic initiatives will be presented separately



FY2014‐15 Budget Assumptions: Inflation, Fuel & Utilities Cost Drivers

• Inflation is a concern for FY2014‐15 and Future Years. Over the last 12 months, the all items index increased 1.5 percent which could impact the costs of goods and services

• While energy & gasoline commodities had a sharp increase in 2012, they have slightly declined as of September 2013, about ‐0.1% . However, we still anticipate an increase in costs for FY2014‐15 over current levels

• We estimate increases for utility costs and are working with Austin Energy to confirm the impact of recent rate changes

DRAFT—For discussion purposes only.*Source: United States Department of Labor, Bureau of Labor StatisticsCPI Detailed Report Sept 2013


FY2014‐15 Budget Assumptions: Health Care Plan Cost Drivers

• Historically, annual health plan costs have increased by 10‐12% ($7‐$8.6 million)

• We can anticipate additional increases due to the Affordable Care Act (ACA):– ACA has cost the district $1.6 million to date – Additional costs of over $3.3 million is expected for FY2014‐15 as the

new marketplace fee and automatic enrollment is implemented– Blue Cross is still in the process of underwriting claims to estimate the

financial impact of other new requirements that become effective Sept 2014, which include: removal of annual limits and pre‐existing conditions, out of pocket limitations and pay or play provisions

• Anticipated increases will be offset by an estimated savings of $4 million from employees (5,500+) migrating to PPO2 in FY2014‐15 (nearly $8 million in FY2013‐14)

• Benefit design and possible employee contribution rate changes could offset total plan costs



FY2014‐15 Budget Assumptions: Compensation

• Assumes continuation of one‐time 3% salary adjustment (pensionable) authorized in FY2012‐13

• Does not assume continuation of one‐time 1.5% salary adjustment (not pensionable) authorized in FY2013‐14

• Unable to certify funding availability to provide the $1,000 guarantee for the teacher or record in FY2013‐14 Jan and May payments



FY2014‐15 Budget

Development: Staffing Formulas


DRAFT—For discussion purposes only


FY2014‐15 Proposed Staffing Formula Adjustments

• A Staffing/budget focus group comprised of principals and administrative staff met to review staffing formulas

• Considering budget constraints no changes are being proposed at this time



Staffing Formulas: Position Exchange Guidelines for All Schools School Year 2014‐2015

1. The following positions may not be eliminated from the initial basic allocations to fund other types of positions: Elementary Special Area Teacher (Art, Music, and PE), one Counselor, Librarian, Parent Support Specialist, and Custodian. All other positions may be used to fund positions of choice with the written approval of the appropriate associate superintendent.

2. Career and Technical Education teacher positions may be exchanged in collaboration with the Department of Career and Technical Education with the written approval of the appropriate associate superintendent.

3. At the secondary level, fine arts positions (band, orchestra, choir, art, high school dance, and theater arts) may be exchanged for other fine arts teaching positions based on student choice sheets and in collaboration with the Department of Fine Arts with the written approval of the appropriate associate superintendent.

4. A Special Education teacher position may be exchanged for two Special Education teacher assistant positions (or vise versa) in collaboration with the Department of Special Education and the written approval of the appropriate associate superintendent.

5. Additional positions may be purchased with non‐staff allocations with the written approval of the appropriate associate superintendent.

Note: Exchanging positions shall be for the purpose of addressing program needs and must not result in the request for additional staff. DRAFT—For discussion purposes only.


TEACHER

Grade Level/Assignment School Staffing Level

Elementary Pre‐K 19 Max (Full‐Day)Grades K – 4 22 CapGrades 5 & 6 25 target (30 Maximum)

Special Area:Art/Music/PE 1 special area teacher for each 7.5 regular K‐6 teachers

Special Ed Caseload of 15 to 1 for resource & inclusion.Caseload of 8 to 1 for life skills, PPCD, SBS, SCORES.Additional considerations as required by ARD/IEP.

Middle School Regular Classes Staff for 6 out of 8 classes daily.Class size target of 29 students.

Career & Tech Ed Allocated separately, according to need.

Special Ed Caseload of 21 to 1 for resource & inclusion.Caseload of 12 to 1 for life skills, PPCD, SBS, SCORES.Additional considerations as required by ARD/IEP.

Weighted MagnetAllocation Formula

For a school with a magnet program, the teacher allocation formula provides additional teachers based on 30% additional weight for the number of magnet

students.

Staffing Formulas: Draft 2014‐15No Change from 2013‐14



TEACHER

Grade Level/Assignment School Staffing Level

High School Regular Classes Staff for 6 out of 8 classes daily.

Class size target of 29 students.

Career & Tech Ed Included in the regular HS teacher allocation, with some separate additional allocations, according to need.

Special Ed Caseload of 24 to 1 for resource & inclusion.

Caseload of 12 to 1 for life skills, PPCD, SBS, SCORES.

Additional considerations as required by ARD/IEP.

Weighted MagnetAllocation Formula

For a LASA the teacher allocation formula provides additional teachers based on 25% additional weight for the number of magnet students.

International HS Class size target of 25 students at grades 9 ‐ 12




LIBRARIAN

Projected Student School StaffingEnrollment Level

Elementary NA 1

Middle School NA 1

High School NA 1

COUNSELOR

Elementary 0 – 999 1

1000+ 1.5

Middle School NA 3

High School 0 – 1999 42000‐2499 52500 + 6




PRINCIPAL

Elementary NA 1

Middle School NA 1

High School NA 1

ASSISTANT PRINCIPALProjected Student School Staffing

Enrollment Level

Elementary 0 ‐ 499 0.5500 ‐ 799 1800 ‐ 999 1.51000+ 2

Middle School 0 – 1299 21300+ 31500+

High School 0 – 999 31000 – 1999 42000 – 2499 5

2500+ 6




FY2014‐15 Budget

Development: Next Steps




Continuous Budget Planning• Finalize analysis of “baseline” costs i.e., health

plan premiums, insurance, energy rates, etc.• Refine revenue estimates and assumptions

based on the most recent data and present fiscal forecast in January with compensation analysis

• Vet and review new budgetary increases and potential reallocations and/or budget reductions– Central departments have been asked to submit a 5%

contingency reduction to non‐salary budget accounts



Continuous Budget Planning (continued)• Finalize year‐end close transactions to

maximize reserve levels available for FY2014‐15 Preliminary Budget

• Assess all known “budget pressures” for FY2014‐15

• Refine multi‐year financial plan and assumptions and provide Board with continual updates


Documents

FY2014 Budget Development: Assumptions Staffing Formulas · AUSTIN Independent School District 6 FY2014‐15 Budget Assumptions Highlights (continued) • Assumes 5.97% increase in