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2014-15 Budget Update

April 10, 2014

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Budget Process & Timeline

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•Strategic plan & goal setting•Initial projections based on current year events •Baseline staffing ratios are reviewed

October-November

•Board of Education updated on early projections and assumptions•Baseline staffing costs are calculated•Departments receive 2014-15 budget materials

December

•Governor’s State Aid figures released•School Based Budget Handbook distributed•School Based Budget Training for School Based Management Teams•Board updates & projection refinements continue

January -February

•Schools receive School Based Budget Workbooks for completion• Departments submit 10% reductions•Meet with union leaders to discuss savings opportunities•Budget update presented at regular Board meeting

March

•State Budget adopted with new state aid figures•Deficit adjusted and the closure measures near finalization•Four Year Plan is due to the Control Board•Public Budget Presentation

April

•Public hearing at Common Council Chambers•Budget is finalized and submitted for approvalMay

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School Based Budgeting Second year of the process Schools are provided baseline staff based on

enrollment Centrally assigned staff are layered on (Special

Ed, CTE, Student Support Teams, Attendance) Schools receive “Flexible” dollar allocations

based on student designations (ELL, Level 1 & 2, SIG transition)

Principals work with data and School Based Management Teams to make decisions on the use of the funds

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2014-15 General Fund Budget Deficit

Original Budget Deficit, January: ($49.7m)

Revenues Decreasing from $794.0m to $779.9m: ($14.1m)

Expenditures Increasing from $794.0m to $829.6m: ($35.6m)

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2013-14 Adopted Budget

2014-15 Projected as

of 1.25.14 ChangeRevenues: $794.0 $779.9 ($14.1)City Contribution $70.3 $70.3 $0.0County Sales Tax $38.3 $39.4 $1.1State Aid $634.2 $649.6 $15.4Use of Reserves $31.1 $0.0 ($31.1)Other Revenues $20.1 $20.6 $0.5

2014-15 Projected Revenues & Changes from 2013-14:

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2014-15 Projected Expenditures & Changes from 2013-14:

2013-14 Adopted Budget

2014-15 Projected as

of 1.25.14 ChangeExpenditures $794.0 $829.6 $35.6Compensation $237.0 $248.8 $11.8Pension Contributions $35.6 $41.2 $5.6Employee Health Insurance $45.2 $48.2 $3.0Retiree Health Insurance $66.6 $73.0 $6.4Other Employee Benefits $36.7 $38.4 $1.7Transportation $43.8 $44.7 $0.9Agency, BOCES & Other Tuition $34.7 $35.8 $1.1Charter School Tuition $101.0 $100.6 ($0.4)Debt Service Principal & Interest $121.3 $120.0 ($1.3)All Other Expenditures $72.1 $78.9 $6.8

150 teachers

Rates increase from 12% to 19.7% (ERS) and 16.25% to 17.53% (TRS)

FICA & Supplemental for above

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$9,369

$10,212 $10,582

$11,067 $11,078 $11,333

$12,800

$8,000

$10,000

$12,000

$14,000

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

Average Active Health Insurance Costs

Annual Pension Rates as a Percent of Salary

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7.63%

6.19%

8.62%

11.11%11.84%

16.25%17.53%

8.20% 7.25%

11.70%

16.16%18.70%

20.50% 19.66%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

TRS Average rate ERS Average Rate

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2014-15 Revised Budget DeficitOriginal Budget Deficit: ($49.7 m)

Deficit Closure Actions Through March: Use of Assigned Fund Balance (Reserves) $10.2 m

Central Office/Department Reductions $3.8 m

Information Technology & Shared Accountability - $1.0m Transportation - $.7 m

Assumes bus aide coverage of 75%; savings must be repurposed to cover after school bus aides

Service Center - $.5 m All other departments combined - $1.5 m

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2014-15 Revised Budget Deficit Facilities/School Changes $2.6 m

Close swing school 78 Close school 28, move department staff to 187 Put to minimal operations but retain 8 and 171 Close 18A (Parent Center); have rooms in 187 Merge #115 into #97 (Closure of 40, 44 and MEC Lease already assumed)

Cost adjustments (increases) for fringebenefits and other fixed costs ($4.9 m)

Revised Deficit March 24th ($38.0 m)

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2014-15 Budget Deficit as of March 24th ($38.0 m)

April 1st State Budget Released: Additional State Aid $15.5 m Charter Tuition legislation $ 3.0 m

Deficit remaining to be closed ($19.5 m)

Thank you to the Western New York Delegation!

2014-15 Revised Budget Deficit11

Special Education Recommendations - $7.6m

Implement the recommended staffing standard for Integrated Co-Teachers (ICT) so that whenever possible the ICT serves at least 5 students

It is recommended that the current staffing model (12:1+3:1) be maintained for personal care aides and the use of 1:1 aides is reserved for only cases where data supports the need

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2014-15 Budget: Deficit Closure Recommendations

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Teacher : StudentSpecial Education Service Delivery ModelsBUFFALO PUBLIC SCHOOLS 2013-2014

Student : Teacher Ratios

6:1 6:1NYSAA

8:1 8:1 TE

8:1 AU

12:1:1 12:1:2 12:1:3 15:1 CTRR

ICT

6:1 6:1 6:1 7:1 9:1 10:1 5:1 8:1 12:1 25:1 5:1

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ICT Staffing ICT Teachers with 1 student: 46 ICT Teachers with 2 students: 39 ICT Teachers with 3 students: 46

Proposed Guideline Change: ICT Teachers will service a minimum of 5

students whenever possible ICT in grades K-6 for ELA & Math, not other

content

Special Ed Teachers

684

671

650

663

712

610

620

630

640

650

660

670

680

690

700

710

720

03/09 04/10 04/11 04/12 05/13

SPECIAL EDUCATION TEACHER FTEs

Total FTE's

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Health Coverage Recommendations - $2.5m: Negotiate agreements with unions to eliminate

cosmetic surgery rider; affected members will receive a Health Benefit Card in return

Present teachers union with a retirement incentive that includes a one-time bonus and annual payments to age 65 to withdraw from District health care coverage in retirement

Retiree can obtain insurance through public exchange Retiree will receive Medicare Advantage Plan at no cost at

age 65

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2014-15 Budget: Deficit Closure Recommendations

Extended Day Program – Increase investment $3.1m

($1.7 m was included the 2013-14 budget for transportation)

Program Costs - $2.0 m Bus Aides - $.7m Administrator Overtime & Building Usage - $.4m

Physical Education – Increase investment $160k Continue to move forward with a compliance plan Support Project ACES with materials and staff

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2014-15 Budget Investments to Support Academic Priorities:

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Deficit Remaining to be Closed Revised Deficit April 1st: ($19.5m)

Deficit closure recommendations Special Education $7.6m Health Care $2.5m Closure of under-enrolled programs $0.5m

Investments Extended Day Program ($3.1m) Physical Education ($0.6m)

Deficit remaining to be closed ($12.6m)

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STATE AID, $665.1, 83%

CITY CONTRIBUTION, $70.3, 9%

ERIE COUNTY SALES TAX, $40.5, 5%

USE OF RESERVES, $10.2, 1% ALL OTHER

REVENUES, $19.7, 2%

2014-15 Draft BudgetGeneral Fund Revenues

$805.8m(in millions)

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Regular & CTE Instruction, $209.2, 26%

Special Education, $133.0, 16%

Student Support Services, $19.3, 2%

School Admin (P & AP) & Clerical, $25.9, 3%Transportation, $53.0,

7%

Facilities & Central Services, $65.4, 8%

Debt Service & Transfers, $123.3, 15%

Charter Schools, $98.1, 12%

Retiree Health Insurance, $69.1, 8%

General Support, $10.4, 1%

Special Items, $6.1, 1%

Instructional Administration,

$5.5, 1%

2014-15 Draft BudgetExpenditures By Functional

CategoryTotal $818.4 m

(in millions)

47%

30%

50% of the Budget Primarily Fixed Costs

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State Aid Excluding Building Aid, $19.1

Compensation, $(3.1)

Employee & Retiree Benefits, $65.9

Charter School Tuition, $31.1

Student Tuition Payments, $8.4

All Other Expenditures, $7.3

$(10.0)

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

Major Category Changes 2008-09 to 2014-15 Projections(1)

(1) Projections as of April 7, 2014

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Changes Over Time:Goal every year is to keep cuts as far from the classroom as possible. As such, since 2008-09 reductions & additions have been as follows:

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Functional AreaPositions (Reduced)/

Added Central Services (IT, Plant, Mail) (39.5) = (13%)

Finance (16) = (25%)Transportation (8) = (19%)Human Resources (5.5) = (16%)

Pupil Support Services (Attendance, Guidance, Social Workers)

+53 = +60%

Occupational Education (CTE) +24 = +10%

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Regular & CTE Instruction

50%

Special Education29%

School Admin (P & AP) & Clerical

6%

Student Support Services4%

Facilities & Central Services

7%

Transportation1%

General Support2%

Instructional Administration

1%

2014-15 Draft Budget Full Time Equivalents By Functional Category

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BPS (32,700) Charter (8,013) Agency (979) Non-Public (4,195)

$12,978 $12,605

$35,442

$1,107 $1,055

$1,055

$1,055

$116 $104

$104

$3,710

$2,037

Health Insurance for RetireesDebt Principal and Interst (Primarily JSCB)Instructional MaterialsTransportationOperations for District/Tuition

$19,947

$13,763

$36,497

$1,159

Costs Per Type of Student Included in the 2013-14 General Fund Budget

Further Deficit Closure Actions Are Needed To Close $12.6 m Gap

Lobbying efforts City – Building Sales; Contribution (7.5%) State

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0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

2013-14

Buffalo, 7.5%

Syracuse, 14.6%

Rochester, 15.4%

Yonkers, 42.9%

NYC, 55.1%

City Contribution as a Percentage of Total Revenues for 2013-14

Source: Conference of Big 5 School Districts Revenues for the 2013-14

Health Insurance Vendor reductions Department reductions continue

Unknown – impact of turnaround plans for Bennett and MLK schools

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Further Deficit Closure Actions Are Needed To Close $12.6 m Gap

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Timeline Board Meeting April 23rd

Finance & Operations Meeting April 30th

Common Council Hearing Week of May 5th

Budget Adoption May 14th

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Questions?32

Questions can be submitted on the index cards provided

Presentation will be posted on the Finance Page of the District Website