UPDATE Department of Education’s budget background and process for … Forms/budget/FB2017... · 2016-08-16 · UPDATE Department of Education’s budget background and process

UPDATE Department of Education’s budget background and process for the 2017-2019 Fiscal Biennium BOARD OF EDUCATION | Finance and Infrastructure Committee August 16, 2016

1 OFFICE OF FISCAL SERVICES

HawaiiPublicSchools.org OFS

Education breeds confidence. Confidence breeds hope. Hope breeds peace. — Confucius

FY17 General Fund Appropriations: $7B


HawaiiPublicSchools.org OFS 2

Thirteen Smaller Depts, 213,015,528 ,

3.0%

Accounting and General Services,

105,185,479 , 1.5%

Budget and Finance, 2,566,132,529 ,

36.5%

EDN - Charter Schools, 75,933,916 ,

1.1%

EDN - Public Libraries,

33,661,055 , 0.5%

Education, 1,567,678,982 ,

22.3% Hawaii Health System Corp, 107,440,000 ,

1.5%

Health, 463,510,089 ,

6.6%

Human Services, 1,220,287,153 ,

17.3%

Public Safety, 250,146,623 , 3.6%

University of Hawaii, 433,580,935 , 6.2%

(includes debt service & fringe costs for all depts.)

Agriculture 15,316,858

Attorney General 31,716,325

Business, Econ. Dev. & Tourism 13,543,802

Defense 21,139,755

Governor 3,816,705

Hawaiian Home Lands 23,925,340

Human Resources Development 17,476,205

Labor & Industrial Relations 18,745,118

Land & Natural Resources 34,566,698

Lt. Governor 1,081,703

Subsidies to Counties 2,500,000

Taxation 27,687,019

Transportation 1,500,000

TOTAL of 13 Smaller Depts 213,015,528



Thirteen Smallest Depts, 727,062,604 ,

5.3%

Accounting and General Services,

230,448,715 , 1.7%

Budget and Finance, 2,619,248,478 , 19.1%

Business, Econ. Dev. & Tourism, 344,855,259 ,

2.5%

Education, 1,934,307,482 ,

14.1% Hawaii Health System Corp, 677,519,754 ,

4.9%

Health, 1,025,266,690 , 7.5%

Human Services, 3,304,666,056 , 24.1%

Labor & Industrial Relations,

472,627,929 , 3.4%

Public Safety, 272,731,954 ,

2.0%

Transportation, 970,496,250 , 7.1%

University of Hawaii,

1,123,058,394 , 8.2%

(includes debt service & fringe costs for all depts.)

Agriculture 51,593,696 Attorney General 95,922,803 Commerce & Consumer Affairs 78,584,094

Defense 134,396,901 EDN - Charter Schools 77,938,466 EDN - Public Libraries 39,026,299 Governor 3,816,705 Hawaiian Home Lands 61,552,735 Human Resources Development 23,237,486

Land & Natural Resources 128,655,600 Lt. Governor 1,081,703 Subsidies to Counties 2,500,000 Taxation 28,756,116 TOTAL: 13 Smaller Depts 727,062,604

FY17 All Means of Finance: $13.7B

3

OFFICE OF FISCAL SERVICES HawaiiPublicSchools.org OFS 4

EDN Title / Function

100 School Based Budgeting

150 Special Education

200 Instructional Support

300 State Administration

400 School Support

500 School Community Services

700 Early Learning

EDN FY2007-08 FY2008-09 FY2009-10 FY2010-11 FY2011-12

100 774,244,048 772,086,697 753,950,947 705,214,266 775,148,488

150 361,156,533 355,373,685 368,188,673 306,635,452 322,144,665

200 34,454,113 33,297,750 29,037,169 21,956,188 45,745,674

300 50,381,509 55,557,715 51,432,190 42,924,189 43,344,985

400 170,290,488 169,455,447 184,814,106 171,841,402 174,109,976

500 11,035,725 8,792,776 8,674,528 4,861,955 5,072,889

700

TOTAL 1,401,562,416 1,394,564,070 1,396,097,613 1,253,433,452 1,365,566,677

EDN FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 100 772,510,601 817,507,508 812,888,595 880,317,495 919,739,606

150 313,456,272 321,843,969 325,508,663 351,492,656 357,369,736

200 43,767,584 45,120,095 47,429,820 50,586,338 52,202,121

300 41,945,114 42,276,161 43,343,959 46,984,179 48,599,682

400 173,929,086 170,665,305 171,218,522 195,206,685 183,909,690

500 2,500,000 2,500,000 2,500,000 2,992,223 2,862,275

700 3,255,152 3,076,182 2,995,872

TOTAL 1,348,108,657 1,399,913,038 1,406,144,711 1,530,655,758 1,567,678,982

General Fund Appropriations by EDN

4


-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

1,000,000,000

500 700

150

100

200 & 300

400

Historic EDN funding levels: General Fund EDN Title /

Function 100 School Based

Budgeting

150 Special Education

200 Instructional Support

300 State Administration

400 School Support

500 School Community Services

700 Early Learning

5


FY2007-08 FY2008-09 FY2009-10 FY2010-11 FY2011-12 General funds 1,401,562,416 1,394,564,070 1,396,097,613 1,253,433,452 1,365,566,677 Federal funds (ceiling) 262,206,533 261,847,302 374,991,570 305,716,386 311,496,353 Special funds (ceiling) 64,659,825 67,782,450 75,406,544 79,055,420 88,045,223 Trust funds (ceiling) 6,300,000 13,750,000 13,750,000 13,716,215 32,990,000 Total All MOF 1,734,728,774 1,737,943,822 1,860,245,727 1,651,921,473 1,798,098,253

FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 General funds 1,348,108,657 1,399,913,038 1,367,369,920 1,530,655,758 1,567,678,982 Federal funds (ceiling) 284,547,256 259,250,749 250,994,824 258,012,049 265,034,049 Special funds (ceiling) 96,535,944 95,339,367 95,339,367 96,755,747 83,954,451 Trust funds (ceiling) 32,919,060 24,290,000 24,290,000 17,640,000 17,640,000 Total All MOF 1,762,110,917 1,778,793,154 1,737,994,111 1,903,063,554 1,934,307,482

HIDOE Appropriations: All types & levels 81% General funds: Used to authorize the expenditure of State tax revenues not specifically set aside by law for a

special purpose. Primary sources are the State income tax and general excise tax.

14% Federal funds: Used to authorize the Department to expend revenues from the federal government received by the Department for a variety of specific purposes. Examples include the Individuals with Disabilities Education Improvement Act (IDEA) or USDA National School Lunch Program.

4% Special funds: Used to authorize the expenditure of revenues collected by HIDOE for purposes identified in State law (includes Revolving & Interdepartmental Transfer Funds). Example: The School Food Services Special Fund into which school lunch receipts are deposited to be used by the School Food Services program.

1% Trust funds: used to authorize the expenditure of revenues received by schools or offices that are designated for specific persons or classes of persons who have a vested beneficial interest in the use of the funds. Example include Donations & Gifts Trust Fund.

6


-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

FY2007-08 FY2008-09

FY2009-10 FY2010-11

FY2011-12 FY2012-13

FY2013-14 FY2014-15

FY2015-16 FY2016-17

Trust Funds

Special Funds

Federal Funds

General Funds

Historic appropriation levels: All types

7

OFFICE OF FISCAL SERVICES HawaiiPublicSchools.org OFS

•  ESEA Title I Part A – Improving Basic Programs Operated by Local Educational Agencies

•  ESEA Title II – Improving Teacher Quality State Grants •  IDEA – Individuals with Disabilities Act •  Impact Aid – Title VIII of ESEA under NCLB & moved to Title VII under ESSA

Program FY08 FY09 FY10 FY11 FY12 Title I 39,638,957 44,336,607 43,230,443 42,598,821 47,475,260

Title II 13,393,817 13,623,462 13,622,554 13,659,126 11,243,906 IDEA 38,429,941 38,919,867 40,659,422 40,623,704 40,480,793

Impact Aid 45,068,203 55,515,943 38,057,476 42,967,608 52,162,808

Program FY13 FY14 FY15 FY16 FY17 Title I 45,748,115 47,597,859 53,190,912 47,116,137 53,315,000

Title II 11,191,809 10,582,856 10,582,325 10,547,951 10,349,000 IDEA 40,833,044 38,610,911 40,150,801 40,227,772 41,556,000

Impact Aid 80,459,617 41,185,755 33,735,263 40,322,711 tbd

Select Federal programs & awards

8


30%

35%

40%

45%

50%

55%

60%

65%

70%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Title I Title II IDEA Impact Aid % of Students with High Need(s)

Historic federal awards: 4 major programs

9


School or Office

NEEDS

CAS Program

Manager Budget Lead

PROPOSAL

Deputy AS

Budget Review Team

Executive Leadership

Group Board of

Education

BUDGET REQUESTS

Governor and B&F

Legislature

APPROPRIATION

Governor and B&F

ALLOCATION PLAN

ALLOCATION

Budget Execution

START

As of 8/14/16

10

FB2017-19 budget process

May: web-based budgeting tool released

June: Set up budget process & timeline with Supt Leadership.

July: Program Managers review & rebuild budgets, needs assessment

Aug 12: Proposals due for current and new requests

Aug-Sept: Summarize requests, evaluate & strengthen documentation for current service budgets

Aug 15-22: New requests to be evaluated and justified

Aug 19: Target date for issuance of B&F Biennium Budget Instructions

Sept: Prepare presentation for BOE Review

Sept 20 or Oct 4: FIC and BOE action on recommendations



DATE BUDGET ACTIVITY BOE UPDATE OR ACTION Late Spring – Summer Department prepares its Budget Recommendation

Late Summer – Early Fall

Finance Director issues Budget Preparation Instructions Updated on Budget Process

Early-Mid Fall Board approved budget submitted to the Department of Budget and Finance for approval

Approves Department’s Budget Request

November Governor makes final decisions on the DOE's budget requests Updated on Governor’s decisions

Late December

Governor submits Executive Budget Request to the Legislature

March House of Representatives draft their version of the budget Updated on House Draft

April Senate draft their version of the budget Updated on Senate Draft

Late April Legislature finalizes the budget & appropriates funds Updated on Conference Draft

Early – Late June

Governor allots (releases) funds in increments based on revenue projections, and may restrict funding to departments

Approved Department’s Restriction Plan if one is necessary

July 1 Fiscal Year begins and HIDOE begins expending allotted funds

Budget Process Overview

11

•  Hawaii Revised Statute §37-112 –  To ensure a balanced budget, the governor and legislature shall

use the latest Council on Revenues (COR) estimates as their base estimate for general fund tax revenues for next six years.

–  If the revenue estimate used by governor or legislature differs they shall make that fact public with the reasons for using the differing revenue estimate.

•  Hawaii Revised Statute §37-111 –  The COR is established in the State Constitution and Hawaii

Revised Statute (§37-111) –  Made up of seven individuals – 3 selected by the Governor, 2

selected by the Senate, 2 selected by the House. –  Reports its latest revenue forecast to the governor and the

legislature on June 1, September 10, January 10, and March 15 of each year.

12

OFFICE OF FISCAL SERVICES


Council on Revenues General Fund Tax Revenue Projections

12

COR Meeting Date Used by: FY16

% FY16$ FY17% FY17$

09/03/15 Governor to submit FY2016-17 Supplemental Budget Request 6.0% 6,079,249,000 5.5% 6,413,608,000

01/07/16 House to prepare the House Draft of Supplemental Budget 6.7% 6,119,395,000 5.5% 6,455,962,000

03/10/16

Senate to prepare the Senate Draft of the Supplemental Budget and the Conference Committee to negotiate final FY17 appropriations

6.7% 6,119,395,000 5.0% 6,425,365,000

05/24/16 Considered by Governor in restricting or releasing FY17 Allocations 6.1% 6,084,985,000 5.0% 6,389,234,000

Actual FY16 Collections

(as of 6/30/16)

Considered by Governor in releasing FY17 Allocations & setting the FB2017-19 Budget Instructions.

8.0% 6,193,952,000

(est. of revenue announced by

Exec)

5.0% 6,503,650,000

(using latest COR %)

9/2/16 Next Scheduled

Meeting (tentative)

Considered by Governor in releasing FY17 Allocation and making decisions on the FB2017-19 Budget

8.0% 6,193,952,000 (est. of revenue

announced by Exec.)

tbd tbd


Council on Revenues Recent General Fund Tax Revenue Projections

13


FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FB15-17 CB (pay raises) $100 $131 Appropriation $1,402 $1,395 $1,396 $1,253 $1,366 $1,348 $1,400 $1,403 $1,431 $1,436 IF Support Matched CPI 0.0% 0.5% 2.6% 6.4% 9.0% 11.0% 12.6% 13.7% 16.0% 18.5% DOE Enrollment 171,712 170,498 170,830 169,987 172,104 173,658 175,476 170,482 170,971 172,096

$1,402 $1,395 $1,396 $1,253

$1,366 $1,348 $1,400 $1,403 $1,431 $1,436

$100 $131

-100%

-80%

-60%

-40%

-20%

0%

20%

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

(in m

illio

ns)

General Fund Appropriation History

Source: CPI-Honolulu data from DBEDT, 2016 2nd Qtr Economic Outlook & FY17 enrollment is projected enrollment.


5,273,531,614

7,036,572,289

3,711,226,110

4,528,068,573

1,401,562,416

1,567,678,982

-

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Total GF Appn less All Fringe and Debt Service

Total Appn in Executive Budget

Total GF Appn to DOE

General Fund Appropriations from Executive Budget Bills, FY08-17


Capacity:

New Schools, Classroom Additions, Temporary Facilities, Repurposing existing facilities to create capacity

Condition: Repair & Maintenance, Electrical/Technology Infrastructure, Hazardous Material Removal, Structural Improvements

Program Support: Gender Equity, New Restrooms, ADA Compliance, Support Program Spaces, Playground Equipment

Equity: Science Facilities, Special Education, Energy Improvement, Right-sizing of spaces, Physical Education, Noise Abatement

Heat Abatement: Ventilation, Mechanical Cooling, Night Flushing, etc.

16

CIP Categories


-‐

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000 Jan-‐01

Jun-‐01

Nov-‐01

Apr-‐02

Sep-‐02

Feb-‐03

Jul-‐0

3

Dec-‐03

May-‐04

Oct-‐04

Mar-‐05

Aug-‐05

Jan-‐06

Jun-‐06

Nov-‐06

Apr-‐07

Sep-‐07

Feb-‐08

Jul-‐0

8

Dec-‐08

May-‐09

Oct-‐09

Mar-‐10

Aug-‐10

Jan-‐11

Jun-‐11

Nov-‐11

Apr-‐12

Sep-‐12

Feb-‐13

Jul-‐1

3

Dec-‐13

May-‐14

Oct-‐14

Mar-‐15

Aug-‐15

Jan-‐16

Jun-‐16

17

R&M backlog since 2001


CIP funding, appropriations

$314,193,000

$241,331,000

$131,112,000

$149,536,000

$318,472,000

$237,372,000

$435,494,000

$287,908,000

$337,624,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

18


Questions?

19

Documents

UPDATE Department of Education’s budget background and process for … Forms/budget/FB2017... · 2016-08-16 · UPDATE Department of Education’s budget background and process