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7/27/2019 School Pictures Town Hall Presentation 2
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Education Town Hall Meeting 2School Finance and Budget
Saturday, November 23, 2013
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cknowledgementsBlocks TogetherCarey Tercentenary AME Church
Lawndale Alliance
UIC Institute for Policy and CivicEngagement
West Siders Against All School
Closings
Raise Your Hand
Austin Weekly News
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What We Will Cover
School FundingCPS budgetLocal School budgets
TIFs
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Background
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Background
Citing a need to close a loomingbillion dollar deficit and to correcta utilization crisis, the ChicagoBoard of Education voted to close
49 public schools and 1 high schoolprogram in June 2013.
The West Side took a significant hit. 23 of 49 schools are on the West Side
of Chicago, representing 47% of allschool closures in 2013.
The West Side is home to 17% of allschools in Chicago
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Background
Over the last six months since the vote, anumber of community members haveexpressed concern, and have repeatedlyasked CPS questions regarding the impactof school closures as it relates to local
school budgets, the allocation of SafePassage funding, school utilization andclass sizes. As of the date of thispresentation, CPS has not complied with
any requests for information. They haverefused to meet with grassrootsstakeholders and have not providedinformation in response to requests forinformation under the Freedom ofInformation Act.
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The purpose of this presentation isto review publicly availablefinancial information and begin adialogue with our neighbors, CPS ,our elected officials and otherstakeholders in hopes ofdeveloping community-based
solutions to improve our schools.
Purpose
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Budget Overview
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CPS Budgeted Revenues andExpenditures FY 2014
GeneralOperating
Funds
Debt-Service
Funds
Capital
Funds
FY 2014Approved
Budget
2,419,647,597 206,017,103 182,920,000 2,808,584,700
1,621,465,578 195,881,267 25,864,300 1,843,211,145
908,352,249 24,504,972 932,857,221
642,808,552 118,813,349 761,621,901300,000,000 300,000,000
5,592,273,976 545,216,691 508,784,300 6,646,274,967
0 0
2,561,325,520 1,249,947 2,562,575,467
1,251,008,727 378,693 1,251,387,420
1,101,273,272 9,018,932 0 1,110,292,204
257,035,106 257,035,10637,564,891 347,480,268 385,045,159
111,776,198 111,776,198
272,290,262 604,135,710 0 876,425,972
5,592,273,976 613,154,642 349,108,908 6,554,537,526Expenditures Total
Revenue Total
Expenditures
Others
Salary
Benefits
Contracts
CommoditiesEquipment
Transportation
Contingencies
Revenue
Local
State
Federal
Fund BalanceOther Financing
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Account
Group
FY 2013
Amended
Budget
FY 2013
Expenditures as of
6/30/2013
FY 2014 Approved
Budget
Salary 2,655,690,797 2,706,843,165 2,561,325,520
Benefits 899,548,125 883,051,361 1,251,008,727
Contracts 982,520,005 1,032,015,998 1,101,273,272
Contingencies 178,807,287 938,066 272,290,262
Commodities 346,211,422 298,430,939 257,035,106Transportation 121,608,512 109,945,899 111,776,198
Equipment 47,835,583 67,251,463 37,564,891
Others 0 6,236 0
Grand Total 5,232,221,731 5,098,483,127 5,592,273,976
FYE 2013 Surplus 133,738,603.71$
Increase FY 2014 Over FY 2013 (Budgeted) 360,052,245.00$
% Increase FY 2014 Over FY 2013 (Budgeted) 6.9%
Decrease FY 2014 Vs FY 2013 Budgeted Salary (94,365,277.00)$
% Decrease FY 2014 Vs FY 2013 Budgeted Salary -3.6%
Decrease FY 2014 Vs FY 2013 Budgeted Positions (2,014.6)
% Decrease FY 2014 Vs FY 2013 Budgeted Positions -4.9%
CPS Expenditures
Contrary tonews reportsprojecting billiondollar deficits for
FY 2013 and FY2014, CPSended FY 2013with a surplus of$133.7 million.
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Central OfficeContrary to media reports of reductions in the Central Office budget,expenses actually increased by $58.8 million, with an increase of 26
positions between FY 2013 and FY 2014.
Winners Losers Youth Development and
Positive Behavior Supports
Budget decreased from
$15.6 M to $3.3 M
($12.2 M decrease)
Educational Tools &Technologies
Budget decreased from $9.6 Mto $2.8 M($6.8 M decrease)
Talent Office
Budget decreased from $27.4M to $20.8M($6.6 M decrease)
Corporate Accounting
Budget increased from $6.1 Mto $48.9 M ($42.8 M increase)
Information & Technology
Budget increased from $26.8 Mto ($17,150,970 increase)
Strategic School SupportServices
Budget increased from $1M to
$14.8 M ($13.7 M increase)
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School Level BudgetsBy School Type
School Type
FY 2013 Ending
Budget
FY 2014
Approved
Budget
Budget
Difference of
FY14 - FY13
%
Public Schools 3,048,651,116 2,792,841,017 (255,810,099) -8%
Turnaround Schools (Public) 139,395,644 125,220,768 (14,174,876) -10%
Subtotal Public 3,188,046,760 2,918,061,785 $ (269,984,975) -8%
Charter Schools 475,556,655 511,078,376 35,521,721 7%
Total 3,663,603,415 3,429,140,161 $ (234,463,254) -6%
Under the new per pupil budgeting formula, public schools,including turnarounds, lost a total of $269.9 million, whilecharters gained $35.5 million. This translates into an 8%reduction for public schools and a 7% increase for charters.The combined effect for all schools is a 6% reduction.
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School Level BudgetsBy Network
Under the new per pupil budgeting formula, West SideSchools lost $66.7 million, or 11% on average. The formerFulton Network was hit the hardest, with a 17% reductionin total school budgets.
Network FY 2013 Ending
Budget
FY 2014
Approved
Budget
Budget
Difference of
FY14 - FY13
%
Fulton 121,376,022 100,704,928 (20,671,094) -17%
West Side High Schools 164,458,797 142,960,402 (21,498,395) -13%Aus tin-North Lawndale 110,136,820 97,781,435 (12,355,385) -11%
Garfield-Humboldt 87,662,197 81,261,698 (6,400,499) -7%
Pilsen-Little Village 143,863,050 138,135,796 (5,727,254) -4%
Total 627,496,887 560,844,259 (66,652,628) -11%
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School Level BudgetsPositions Lost
Network FY 2012
Ending
Positions
FY 2013
Budgeted
Positions
FY 2014
Approved
Positions
Positions
Difference
of FY14 -
FY13
%
Fulton 1,455.0 1,448.0 1,148.5 (299.5) -21%
West Side High Schools 1,964.4 1,786.7 1,554.9 (231.8) -13%
Austin-North Lawndale 1,258.0 1,243.0 1,079.5 (163.5) -13%
Garfield-Humboldt 980.0 978.5 909.0 (69.5) -7%
Pilsen-Little Village 1,548.0 1,617.0 1,511.5 (105.5) -7%
Total 7,205.4 7,073.2 6,203.4 (869.80) -12%
Under the new per pupil budgeting formula, West SideSchools lost 869.8 full-time equivalents (FTEs), or 12% oftotal staff. The former Fulton Network was hit the hardest,with a loss of 21% of its staff. At the same time, the publicschools lost 3,323.6 positions, for a total reduction of 9%of staff. Lower staffing levels is reportedly leading to
overcrowding in some schools.
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TIFS
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What is a TIF?
A TIF (Tax Increment Financing)district is an area within a city that,
after much careful study by the city
and expert consultants, is found tobe blighted and without hope of
attracting private investment without
some governmental intervention.
Source: ABCs of Tax Increment Financing
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How TIFs Work
TIFs capture money by devoting all new propertytaxes to redevelopment. That means that once aTIF is established, taxing bodies (the City ofChicago's general treasury, the Chicago PublicSchools, the Chicago Park District, etc.) get no new
revenue from the TIF. Their share of the propertytaxes is "frozen" at the level it was at just before theTIF was approved.
The taxes on all the new property value in the TIFgo into the TIF fund and are reinvested in that area.
Over time, the TIF gets more tax revenue than thegeneral funds of the taxing bodies from which thetaxes were diverted when the TIF was created
Source: Cook County Clerk website
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Example
Step Description Amount
1. Base EAV The total value of allproperty in the TIF justbefore the TIF district wasestablished.
$10,000,000
2. Year One EAV The total property value of
the TIF one year after it wascreated.
$11,000,000
3. Growth in EAV The difference between theBase EAV and the currentEAV.
$1,000,000
4. Tax Rate The percentage of EAV(property value) that goes totaxes.
10%
5. Increment The growth in propertyvalue multiplied by the taxrate - i.e., the new taxesthat go to the TIF fund.
10%
Source: Cook County Clerk website
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Long Term Impact of TIFs
Source: Wikipedia
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TIFS There are currently 151 TIFs in the City of
Chicago, 36 of which are on the West Side(City of Chicago website)
Chicago collected approximately $457
million in TIF revenue for the 2012 tax year.(Cook County Clerk)
Since 1986, $5.5 billion has been collectedfrom Chicago TIFs. (Cook County Clerk)
There is approximately $1.7 billion in theTIF fund and approximately $1.53 billionhas been encumbered as of November 13,2013 (WBEZ)
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The city is reluctant to free up theestimated $180 million surplus.
They have identified a laundry list ofother projects, including $40 million- pay down bonds for the
Modern School Across Chicago program $35.1 million-TIFs that have had no
revenue or may have declining revenue $11 million-TIFs that have balances of
less than $1 million $37 million - reserved for single-project
TIFs and future obligations After these projects are earmarked, the
City would have $49 million that have notbeen earmarked for a project.
Source: WBEZ
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Notable West Side School-RelatedTIF-Funded Projects
Collins High School-$30 million TIF-backedrevenue bond issue to cover renovations forCollins High School in 2006. In 2008, the Citywas prepared to demolish the gym for anOlympic velodrome.
Douglas Park Athletic Field and TrackProposed $2 million to reimburse Park Districtfor a field that has been completed and isused by AUSL-Collins Academy and thecommunity
Westinghouse High School-$100 million TIF-backed revenue bond issue to cover theconstruction of a new high school
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What areyoupreparedto do to
helpimproveschools?
Tell usafter the
breakout
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Follow Up:
This presentation and handouts will be posted to
The Lawndale Alliance blog, at
http://lawndalealliance.blogspot.com
Policy on the Ground blog, athttp://policyontheground.net
Scribd.com
Questions may be directed to Valerie F. Leonard
at 773-521-3137 or [email protected]
http://lawndalealliance.blogspot.com/http://policyontheground.net/mailto:[email protected]:[email protected]://policyontheground.net/http://lawndalealliance.blogspot.com/