Preview of FY 2017-18 MCS Operating Budget: Life …...2017/01/30 · Preview of FY 2017-18 MCS Operating Budget: Life Without a Fund Balance Union Pines High School January 30, 2017

Preview of FY 2017-18

MCS Operating Budget: Life Without a Fund Balance

Union Pines High School

January 30, 2017

Moore County Schools Revenues 2015-16 Actual Revenues: $112 million

State Local Federal Capital School Nutrition Grants

STATE $69.1 million LOCAL

$26.7 million

Other Funding Sources: Capital: $.8 million Grants: $2.3 million School Nutrition: $5.3 million

FEDERAL $7.8 million

Numbers are rounded off and may not match total. For exact numbers, contact Budget and Finance.

Moore County Schools Expenses 2015-16 Actual Expenses: $113.6 million

State Local Federal Capital School Nutrition Grants

STATE $69.1 million LOCAL

$28.8 million

Other Funding Sources: Capital: $.8 million Grants: $2 million School Nutrition: $4.8 million

FEDERAL $7.8 million


How MCS is Funded

Today, we’re just going to talk about local…

MCS Local Revenues 2015-16

Revenues: $26,792,076

Expenses: $28,814,896

Difference: ($2,022,820)

A $2 million loss means we must draw from our local fund balance.

School Fund Balance

What is a school fund balance

and why is it important?

• A fund balance acts as a savings account or a “hedge”

against the uncertainty of state funding, or other

unforeseen circumstances, and resulting associated

costs.

• These costs can include the local impact of teacher

raises, increases in the cost of providing benefits, and

unforeseen reduction of funding allocations.

School Fund Balance

What is an appropriate

school fund balance level?

Fiscal responsibility would suggest that for Moore County

Schools, a fund balance of between $4 to $5 million is

appropriate.

History of Fund Balance All numbers are in millions of dollars

$4 $5

$6

$9

$12

$10

$8

$6

$4

$1 $0

$2

$4

$6

$8

$10

$12

$14

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Causes of a Depletion of a Fund Balance

• Emergency one-time allocations (drivers ed and TAs)

• Operating costs, such as fluctuating fuel costs, etc.

• Increased Charter Schools allocations

• Teacher pay increases and benefits

Since 2009, positions once funded by state funding have shifted to local. While this frees up state funds to provide raises, the obligation to pay those salaries and benefits becomes a local obligation.

Charter Schools Impact / Overall

Years Per Pupil Cost Expenditures

2012-2013 $2,012.07 $672,453.22

2013-2014 $1,944.24 $750,629.86

2014-2015 $1,931.02 $868,209.47

2015-2016 $2,011.98 $1,036,153.27

2016-2017 (estimate) $2,060.51 $1,200,000.00

Per pupil cost is the annualized average.

Charter School Impact / Annual Growth

Years Students Per Pupil Cost Amount

2013-2014 386-346 = 40 1,944.24 $ 77,769.60

2014-2015 459-386 = 73 1,931.02 $ 140,964.46

2015-2016 521-459 = 62 2,011.98 $ 124,742.76

2016-2017 602-521 = 81 2,060.51 $ 166,901.31

Total $ 510,378.13

Note: Students include all charter schools for MCS.

Charter School Impact / Unaccounted

• In 2016-2017, MCS reviewed the charter school per pupil listing and determined that 357 students out of 584 charter school students never attended MCS. This is an impact to local funds and diminishes our ability to meet the needs of MCS students.

357 students x $2,060.51 per pupil expenditure =

$735,602.07

Causes of a Depletion of a Fund Balance

• Emergency one-time allocations (drivers ed and TAs)

• Operating costs, such as fluctuating fuel costs, etc.

• Increased Charter Schools allocations

• Teacher pay increases and benefits

Since 2009, positions once funded by state funding have shifted to local. While this frees up state funds to provide raises, the obligation to pay those salaries and benefits becomes a local obligation.

Classroom Teacher Summary 2008 - 2016

Students Enrolled: Increase of 659

12,849

2008 2016

12,190

State-Funded Teachers: Decrease of 8

572

580

2008 2016 2008 2016

$5.1 million

$2 million

105 Teachers

51 Teachers

Increase in Locally Funded Teachers: $3.1 million (54 teachers)

2015-2016 Actual Expenditures: $113.6 million

Payroll and Benefits All other expenses

Payroll and Benefits: $97 million or 85% of annual expenses


All other expenditures: $17 million or 15% of annual expenses

North Moore High School Positions Total FTEs State Funded Locally Funded

Teachers 24.5 20.38/20 4.12/4.5

Instructional Support 1 media specialist, 2.5 counselors, 1 virtual school facilitator, 0.1 speech pathologist, 1 nurse

5.6 2.66 2.94

Assistant Principal 2 0.54 1.46

Teacher Assistants 0 0 0

At-Risk Student Support * 0.4 social worker, 1 counselor, 1 SRO, 1 planning room coordinator

3.4 1.79 1.61

Non-Instructional Support * 4 custodians, 1 data manager, 1 bookkeeper, 0.63 receptionist,1 technology asst., 1 scholarship coordinator,/registrar

8.63 4.72 3.91

* - Total allotment of $120,000 for at-risk student support and $258,900 for non-instructional support. FTEs represent the equivalent positions based on the dollar allotment. State allotments are based on equivalent dollars, not positions.

Pinecrest High School Positions Total FTEs State Funded Locally Funded

Teachers 75 75.63/76 -0.63/-1

Instructional Support 1 media specialist, 3 counselors, 1 virtual school facilitator, 0.6 psychologist

5.6 9.97 -4.37



At-Risk Student Support * 1 at-risk coordinator, 3 counselors, 2 SROs, 2 planning room coordinators, 1 nurse, 1 social worker

5 4.63 0.37

Non-Instructional Support * 11 custodians, 1 data manager, 1 bookkeeper, 1 receptionist, 1 principal’s secretary, 1 guidance secretary, 1 copy room asst., 1 technology asst., 1 testing asst., 1 scholarship coordinator

20 17.66 2.34


Union Pines High School Positions Total FTEs State Funded Locally Funded

Teachers 50 47.31/48 2.69/2

Instructional Support 1 media specialist, 2.5 counselors, 1 virtual school facilitator, 0.4 social worker, 1 nurse

5.9 6.2 -0.3



At-Risk Student Support * .48 at-risk coordinator, 1 counselor, 2 SROs, 1 planning room coordinator

4.48 3.16 1.32

Non-Instructional Support * 6.38 custodians, 1 data manager, 1 bookkeeper, 1 receptionist,1 technology asst., 1 scholarship coordinator, 1 registrar, 1 attendance asst.

13.38 10.94 2.44


Crain’s Creek Middle School Positions Total FTEs State Funded Locally Funded

Teachers 21 16.21/16 4.79/5

Instructional Support 1 media specialist, 1 counselor, 1 psychologist, 0.4 social worker

3.4 1.76 1.64



At-Risk Student Support * 0.4 nurse, 0.75 SRO, 1 planning room coordinator

2.15 0.69 1.46

Non-Instructional Support * 3.5 custodians, 1 data manager, 1 bookkeeper, 0.63 receptionist, 1 technology assistant

7.13 3.12 4.01


New Century Middle School Positions Total FTEs State Funded Locally Funded

Teachers 32 25.39/25 6.61/7

Instructional Support 1 media specialist, 2 counselors, 1 psychologist

4 2.77 1.23



At-Risk Student Support * 0.4 nurse, 0.4 social worker, 1 SRO, 1 planning room coordinator

2.8 1.08 1.72

Non-Instructional Support * 4 custodians, 1 data manager, 1 bookkeeper, 0.63 receptionist, 1 technology assistant

7.63 4.99 2.64


Cameron Elementary

Positions Total FTEs State Funded Locally Funded

Teachers 14.6 13.1/16 1.5/-1.4

Instructional Support 1 media specialist, 1 counselor

2 1.14 0.86

Assistant Principal 0.2 0.23 -0.03

Teacher Assistants 4 3.61 0.39

At-Risk Student Support * 0.2 Nurse, 0.2 social worker, 0.4 SRO

0.8 0.9 -0.1

Non-Instructional Support * 2.5 custodians, 1 data manager, 1 bookkeeper

4.5 4.5 0


Carthage Elementary


Teachers 19.2 18.55/21 0.65/1.8

Instructional Support 1 media specialist, 1 speech pathologist, 0.4 social worker

2.4 1.65 0.75

Assistant Principal 0.5 0.33 0.17

Teacher Assistants 8 9.12 -1.12

At-Risk Student Support * 0.2 Nurse, 1 counselor

1.2 0.64 0.56

Non-Instructional Support * 3 custodians, 1 data manager, 1 bookkeeper

5 5 0


Sandhills Farmlife Elementary


Teachers 33.20 36.44/38 -3.24/-4.8

Instructional Support 1 media specialist, 1 counselor, 0.4 social worker

2.40 3.15 -0.75



At-Risk Student Support * No positions assigned to this fund.

0 1.22 -1.22

Non-Instructional Support * 3 custodians, 1 data manager, 1 bookkeeper, 0.63 receptionist

5.63 5.63 0

* - No funding allocated for at-risk student support and $168,900 for non-instructional support. FTEs represent the equivalent positions based on the dollar allotment. State allotments are based on equivalent dollars, not positions.

Vass-Lakeview Elementary Positions Total FTEs State Funded Locally Funded

Teachers 32 32.8/35 -0.8/-3

Instructional Support 1.4 speech pathologist, 1 media specialist, 1 nurse, 0.4 social worker

3.80 2.93 0.87



At-Risk Student Support * 1 counselor, 0.5 SRO

1.5 1.1 0.4

Non-Instructional Support * 4 custodians, 1 data manager, 1 bookkeeper, 0.63 receptionist

6.63 5.19 1.44


How to Remedy a Shortfall in the Fund Balance

County provides funding of at least $3.5 million for operating costs

OR

MCS will need to initiate cuts totaling $3.5 million in the 2017/18 budget year, primarily from personnel and other related costs.

Will we debate each other over which positions and programs are less worthy than others? Or will we speak with one voice and help our residents see the value in raising the necessary local revenue to support our schools?

Comparison: 10 Years Ago and Now

2006-2007 2016-2017

Percentage of Total Tax Revenue

42.13% 40%

Committed Funds for Charters and/or

Digital Learning

$515,500 $1.95 million Increase of almost 300%

Percentage of Total Tax Revenue,

committed to discretionary funds

41.14% 37.2% Decline of nearly 4%

Trend:

• Increase in school funding from the County since

2006-2007: 23%

• Increase in Total Tax Revenue collected by the

County since 2006-2007: 27%

Loss of K-3 Class Size Flexibility

2016 state budget language removes flexibility previously provided by DPI on K-3 pupil-

teacher ratios…as of 2017-2018.

Why is this a problem?

Impact of State 2016 Budget Language 2016-2017

Class Size Funded Allotment Ratio

Max Average Class Size

Max Individual Class Size

Kindergarten 1:18 1:21 1:24

Grade 1 1:16 1:21 1:24

Grades 2-3 1:17 1:21 1:24

2017-2018

Class Size Funded Allotment Ratio

Max Average Class Size

Max Individual Class Size

Kindergarten 1:18 1:18 1:21

Grade 1 1:16 1:16 1:19

Grades 2-3 1:17 1:17 1:20

Loss of K-3 P/T Ratio Flexibility: The Bottom Line

Moore County Schools will need to:

• Reassign 36 FTE teacher positions from grades 4-12 and/or K-5 art, music and physical education; and

• Create 36 new classroom spaces by:

• Repurposing at least 12 resource (art, music, makerspace, EC, etc.) rooms; and

• Purchasing and installing up to 20 modular classrooms at approximately $800,000.


Area I Elementary Schools # of Positions

Cameron Elementary 1

Carthage Elementary 2

Sandhills Farmlife Elementary 7

Vass-Lakeview Elementary 4

FTE teacher positions shifted to K-3 classroom teaching positions from “somewhere else.”


Impact on Classroom Spaces

Area I Elementary Schools

Repurposed Resource Rooms

New Modular Classrooms

New Modular Classrooms Cost

Cameron 1 0 0

Carthage 1 0 0

Sandhills Farmlife 0 7 $280,000

Vass-Lakeview 0-2 2-4 $80,000-$160,000

Loss of K-3 P/T Ratio Flexibility: What you Need to Know

• NO additional state funding for additional K-3 positions or additional classroom spaces.

• There are no state restrictions on pupil-teacher ratios in grades 4-12. As far as the state is concerned, we can assign 50+ students to such classes.

• There are no separate mandated funding allotments for art, music or PE teaching positions. As far as the state is concerned, the responsibility for teaching art, music and PE may be assigned to regular classroom teachers.

• There is no wavier process or flexibility allowed for this provision.

How can we begin to advocate? • Educate ourselves on the state funding process and how the

process has been reconfigured;

• Educate ourselves on the County budget process;

• Define shared expectations among teachers, parents, others;

• Express support for the School Board’s resolution regarding the General Assembly’s plan for K-3 class sizes;

• Pay attention and participate, Part 1. Opportunities for public comment to School Board: January 17; February 13; and March 13; and

• Pay attention and participate, Part 2: Opportunities for public comment to County Commissioners TBA.

QUESTIONS

Documents

Preview of FY 2017-18 MCS Operating Budget: Life …...2017/01/30 · Preview of FY 2017-18 MCS Operating Budget: Life Without a Fund Balance Union Pines High School January 30, 2017