School Board Approved FY17 Budget

Update May 2, 2016

Breaking the Cycle – Approved Budget FY17 School Board Approved General Fund Budget $292.9M (February 1, 2016)

FY16 School Board Adopted General Fund Budget 271.5M .

FY17 Budget Increase vs. FY16 21.4M*

Less Additional New State Revenue (3.4)M

FY17 School Board Approved Budget Estimated Funding Shortfall $ 18.0M

*Note: Includes $1.9M of position balancing & FTE reductions

Breaking the Cycle – Budget Update

FY17 Estimated Funding Shortfall $18.0M General Assembly Adjustment to Governor’s Budget -600K (VRS & Group Life)

Implement Improve Transportation Routing -810K Close 2 Office Complexes -300K Demolish Former Elkhardt MS -50K . . FY17 Estimated Budget Deficit as of May 2, 2016 $16.2M

Board Action

4/18/16

Breaking the Cycle – Budget Update Needs:

Mandates $3.7M Salary: Teacher Decompression 5.0M Salary: Support & Admin – 2% mid year 1.2M Academic Improvement Plan 2.3M Existing Service Level Commitments 3.0M Capacity Building & Program Improvement 7.6M .

Sub-Total Needs 22.8M Less: Position Balancing & FTE Reductions* (1.9M) . Total Needs 20.9M

State Revenue (3.4M) Board Action Reduction (April 18, 2016) (1.2M) FY17 Estimated Budget Deficit as of May 2, 2016 $16.2M

*Note: Included in School Board Approved Budget (note on slide 2)

Breaking the Cycle – Balancing Options

ITEMS FOR APPROVAL 4/18/2016 AMOUNT • Implement Improve Transportation Routing $810,000 • Close 2 Office Complexes 300,000 • Demolish former Elkhardt MS 50,000 • Defer Unified Pay Plan to FY18 600,000 • Eliminate Other Initiatives 3,104,840

– TOTAL REDUCTIONS $ 4,864,840

• OTHER POTENTIAL REDUCTIONS

– 13 Acres/REAL School Conversion to Regional Classrooms • $450,000

Board Action

4/18/16

Breaking the Cycle – Balancing Options ITEM REDUCTION • Implement Improve Transportation Routing $1.7M

– Budget FY16 = $ 9.3M – Budget FY17 = $10.7M – Actual FY15 = $12.0M Reducing $3.0M from FY15 Actual would save $1.7M in FY17 Approved

• Merge 1 High School Into 2 Campuses 1.0M • Merge 3 Elementary School Campuses into 4 1.6M • Relocate 1 Elementary Closing 1 Campus 100K • Merge 2 Specialty Schools into 2 Campuses 300K • Close 2 Office Complexes 300K • Demolish former Elkhardt MS 50K • Demolish former Real School 50K • Contract Janitorial Services 1.0M • Eliminate Other Initiatives 3.1M • Defer Unified Pay Plan to FY18 500K • Implement State 2% Dec 1 for 1.167% Increase

– Potential Reductions $ 9.7M

Breaking the Cycle – Budget Update

Real Estate Tax

Bank Franchise Fee

Real Estate Tax

Increase GF revenue for real estate for supplemental tax buildings (Gross amount $750K less 2 fte’s of $150K)

($298,000)

Increase 0.5% in real estate assessments

Increase bank franchise fee

$600,000

$2,000,000

$600,000

$2,000,000

$1,007,000 $1,007,000

Breaking the Cycle – Next Steps • May 2 – 1 pm City Council Special Meeting Final Budget Amendment Session

• May 6 – 9 am City Council Special Meeting Introduction of Budget Amendments

• May 13 – 6 pm City Council Budget Adoption*

*Mayor can veto any item(s) of any city budget ordinance, by written notice delivered to the city clerk, within 14 calendar days of Council’s action.

Council can override a veto by a vote of 6 or more.

Resilience. Pride. Success. QUESTIONS?

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