BOSTON PUBLIC SCHOOLS
BPS FINANCIAL CONTEXT AND FY17 PLANNING
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Reminder of the “why”
Do more of what works for kids.
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Topics for discussion
Background and context Historic trends in the BPS budget Preliminary planning for FY17
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City of Boston: General Fund Support for All Education
For the past five years, General Fund Spending for Education, including BPS and Charter Schools, has grown rapidly, at an average rate of 6% a year.
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City of Boston: Revenue to Support Boston Education
Stagnant State Education Funding
At the same time, State Revenue to support Education has been stagnant: • Boston’s Chapter 70
Revenue has grown by <1% per year.
• The Commonwealth has not fulfilled its obligation to fund Charter School Reimbursement, to the tune of $30M in lost revenue for Boston over the past 2 years.
This has led to a 7.6% average annual growth in the City’s Contribution (net State Education Funding) to Education in Boston.
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City of Boston: Education as a portion of Boston’s Budget
BPS has traditionally accounted for 35% of Boston’s Budget. With the growth of Charter Schools, Education now accounts for 40% of Boston’s budget.
General Fund FY16 Spending
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We face a structural deficit, where expenses
consistently go up faster than revenues
Time
$
Revenue
Expenses Level service costs up (e.g. salary, benefits,
contractual step-up’s, student need)
Do more (e.g. more K1, ELT)
Do better (e.g. HC strategy, increased
support for level 4 and 5 schools)
Loss of entitlement funds (shifting population)
State Chapter 70 Education funding has been
growing <1% per year for the last 5 years
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Time
$
Revenue
Expenses
A long term financial plan means stepping back and identifying the bold, multi-year changes that reverse our structural deficit and allow us to
reinvest in what works best for kids.
Annual “cuts” to align costs to
revenues
And our annual budget cuts don’t solve the long
term problem
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BOSTON PUBLIC SCHOOLS
We are proactively taking steps to improve our financial picture for future years
Existing process
New process
Facilities Master
Plan
Collective bargaining
Revenue strategy
Operations work group
SPED work group
Financial strategy
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Topics for discussion
Background and context Historic trends in the BPS budget Preliminary planning for FY17
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We think about our budget in five broad categories
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Schools School Services Budgeted Centrally Central
Benefits Transportation
Expenses within a school’s budget, as well as funds held centrally that are disbursed to schools throughout the year. • Teachers • Support staff • Aides
Programs/services for schools that are budgeted centrally. • Special education • Facilities and maintenance
(including custodians and utilities)
• Programs such as safety services and psychological services
Funds used for leadership and institutional support for the district . • Central office departments (i.e.,
Office of Human Capital, Finance)
• Programs that support schools (i.e., professional development, curriculum design)
Funds used for transportation for students. • Yellow bus services • MBTA • Transportation for special
education students, homeless students, and after school programs
Funds used for employee benefits. • Health insurance • Medicare • Unemployment compensation • Workers compensation
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BPS spends $1.01B per year of general funds, with
almost all going towards schools and school services
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Note: FY16 budget accurate as of 11/10/15
$537,304,226 53%
$171,711,378 17%
$132,740,088 13%
$109,455,202 11%
$62,289,573 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dollars % of Total
FY16 Budget (General Fund only)
Central Office
Transportation
Benefits
School ServicesBudgeted CentrallySchools
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This spending supports the key functions and cost
items for the district
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FY16 Budget by Service Area and Function (General Fund)
Note: FY16 budget accurate as of 11/10/15
Note: Central includes both personnel and non-personnel
costs
To read this chart: The full rectangle = the total FY16 general funds budget (excludes grants). The area of each rectangle corresponds to the size of the budget for that specific category (like a two dimensional a pie chart)
0
20
40
60
80
100%
Schools
Administrators and secretarial staff
Support Staff
Teachers
Subs
Non-personnel
Aides
$537M
School ServicesBudgeted Centrally
Student / SchoolSupport
Facilities andMaintenance
Special Education
GeneralAdministration
RegularEducation
$172M
Benefits
Benefits
$133M
Transportation
Transportation
$109M
OHC
Leadership
SpecialEducation
ProfessionalLearning/TLTs
Operations
OIIT
Strategy(Other)
Student SupportServices
Instructional Support
Finance
ELL
Data andAccountability
Other
ExpandedLearningTime
$62M Total = $1.01B
Central
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The district also has $139M in grant funding, for a
grand total of $1.15B
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FY16 Budget by Service Area and Function (All Funds)
Note: FY16 budget accurate as of 11/10/15
To read this chart: The full rectangle = the total FY16 general funds budget (excludes grants). The area of each rectangle corresponds to the size of the budget for that specific category (like a two dimensional a pie chart)
0
20
40
60
80
100%
Schools
GrantsSubs
Non-personnel
Aides
Administrators and secretarial staff
Support Staff
Teachers
$571M
School ServicesBudgeted Centrally
Grants
General Administration
Regular Education
Student / SchoolSupport
Facilities andMaintenance
Special Education
$244M
Benefits
Grants
Benefits
$146M
Transportation
Transportation Staff
SPED Outof District
SPED InDistrict
RegularEducation
$109M
Grants
FinanceInstructional Support
Student Support Services
ELLExpanded Learning Time
OtherData and
Accountability
Special Education
Leadership
OHC
ProfessionalLearning/TLTs
Strategy
(Other)
OIIT
Operations
$83M Total = $1.15B
Central
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% Annual Growth
% Change FY11-16
$ Change FY11-16
0.8% 4% $3.1M
7.5% 44% $33.4M
1.3% 7% $9.0M
4.0% 22% $43.7M
2.8% 15% $73.1M
Total 3.1% 16% $162.4M
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Total expenditures have been increasing 3.1% annually, with the highest growth seen in transportation, school services, and schools
$498M $501M $518M $529M $545M $571M
$200M $191M $201M $208M $218M $244M
$137M $133M $134M $134M $135M
$146M $76M $81M $91M $108M $103M
$109M $80M $83M
$85M $86M $86M
$83M
$0M
$200M
$400M
$600M
$800M
$1,000M
$1,200M
$1,400M
FY11 FY12 FY13 FY14 FY15 FY16B
Mill
ion
s
Expenditures by Service Area, FY11-FY16B (All Funds)
Central Office
Transportation
Benefits
School ServicesBudgeted Centrally
Schools
Note: FY09-FY15 represent actual expenditures. FY16 represents budgeted amounts accurate as of 11/10/15. These cost combine both the increasing costs of service, and BPS’s efforts to control costs
Note: The work to understand the drivers of these changes is ongoing and in-process
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Of the $33M increase in transportation, $22M has come from
SPED-related costs, both in district and out of district
$40 $41 $47
$54 $52 $51
$28 $30
$33
$40 $37 $42 $7
$8
$9
$11 $12
$14
$2 $2
$2
$2 $2
$2
$- $-
$-
$- $0
$0
$-
$20
$40
$60
$80
$100
$120
FY11 FY12 FY13 FY14 FY15 FY16B
Mill
ion
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FY11-FY16B Transportation Expenses (All Funds) % Annual Growth Rate: 7.5%
Athletics: n/a
Transportation Staff: 8.5%
SPED Out of District: 15.1%
SPED In District: 8.5%
Regular Education: 5.1%
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% Annual Growth
% Change FY11-16
$ Change FY11-16
11.9% 75.6% $9M
6.8% 38.8% $6M
-0.1% -0.7% $0M
8.9% 53.3% $25M
3.3% 17.4% $13M
4.4% 24.2% $47M
1.1% 5.6% $17M
Total 3.1% 16.8% $117M
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Within schools budgets and school services budgeted centrally, ELL
and SPED account for 62% of increased spending
$298 $289 $294 $298 $307 $315
$194 $189 $199 $207 $217 $241
$75 $79 $82 $80 $81
$88 $48 $55 $59 $62
$64
$73 $55 $54
$57 $58 $58
$54
$16 $14 $17 $21
$25
$22
$12 $12 $11
$11 $12
$20
0
100
200
300
400
500
600
700
800
900
FY11 FY12 FY13 FY14 FY15 FY16B
Mill
ion
s
School and School Service Spending, FY11-FY16B
Other
GeneralAdministration
Physical Plant
Bilingual / SEI
Student / SchoolSupport
Special Education
Regular Education
$72M, or 62%, of the increase from FY11-FY16 has gone towards
services for SPED or ELL
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Over time, the number of FTEs in BPS has been relatively constant, with slight declines in recent years
7,168 7,053 7,267 7,327 7,312 7,280
1,203 1,172 1,258 1,279 1,286 1,280
589 633 701 685 615 554 210 210 218 238 239 240
-
2,000
4,000
6,000
8,000
10,000
12,000
FY11 FY12 FY13 FY14 FY15 FY16B
FY11-FY16B FTEs by Service Area (All Funds) % Annual Growth: 0.4%
Transportation 2.8%
Central -1.2%
School Services BudgetedCentrally 1.2%
Schools 0.3%
77.8%
13.7%
5.9% 2.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY16B
FY16B FTEs
Note: These FTE counts are not adjusted for some part time positions, such as bus monitors and food service workers, which are coded as a full FTEs though the positions are part time The increase in central after FY11 was driven by +30 FTEs in SPED and +10 in operations. Going into FY13, the increase was driven by +25 in welcome centers and +20 in engagement
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While total FTEs have been relatively flat, we are spending $87M more on
salaries vs FY12 as average salaries have risen, including an 11% increase
in average teacher salaries
$624 $648
$675 $698 $711
$81.4 $82.3 $86.4 $88.1 $90.0
0
10
20
30
40
50
60
70
80
90
$-
$100
$200
$300
$400
$500
$600
$700
$800
FY2012 FY2013 FY2014 FY2015 FY2016B
Tho
usa
nd
s
Mill
ion
s
Overall Salary Expenses and Average Salary, FY12-FY16B
Salary Avg Salary (teachers)
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FY 2015
$71.4M Reductions:
• $33.8M: Central office reductions (including 126.6 FTE reduction)
• $11M: Enrollment adjustments
• $11M: Transportation services
• $5.5M: SPED changes
• $5M: Health insurance
• $4M: Grant changes
• $1.1M: Adult Ed
FY 2016
$36.1M Reductions:
• $15.5M Central office reductions (including 134 FTE reduction)
• $9.8M Transportation services
• $4M Food and nutrition services
• $3.8M School budgets
• $2.9M School Services
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In past budget cycles, BPS has focused cuts on central
administration to protect schools
$34
$16
$11
$10
$11
$6
$5
$4
$4
$4 $3
$1
$-
$10
$20
$30
$40
$50
$60
$70
$80
FY 2015 FY 2016
Mill
ion
s
Proposed Cost Reductions, FY15 & FY16
Adult Ed
School services
School budgets
Grant changes
Food and nutritionservices
Health insurance
SPED changes
Enrollment adjustments
Transportation services
Central officereductions
Only $3.8M of $100M+
reductions in the past two years
have been from school budgets
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As a result, the majority of FTE changes have been to
the central office
SchoolsSchool Services
BudgetedCentrally
Central Transportation Grand Total
# Change in FTEs -31 -6 -61 2 -98
% Change FY15-FY16 -0.4% -0.5% -10.0% 0.6% -1.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
-120
-100
-80
-60
-40
-20
0
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FY15 to FY16B FTE Changes by Service Area (All Funds)
# Change in FTEs % Change FY15-FY16
Note: These FTE counts are adjusted for some part time positions, such as bus monitors which are coded as a full FTE though the work is part time. Additionally, the FTE for “food service workers” has be reclassified as “schools” though the budget team is in the process of re-allocating those FTEs to the school budget codes
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Topics for discussion
Background and context Historic trends in the BPS budget Preliminary planning for FY17
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BOSTON PUBLIC SCHOOLS
As we contemplate tradeoffs for FY17 and beyond, our
decision-making is guided by our core values
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Preliminary FY17 overview
* Strategic priorities will only be funded pending success in achieving efficiencies
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
~$36M
~$28M
~$10M
~$5M
~$7-$14M*
~$8M
$12-$17M
~$14M
~$6M
Includes $21M increase in
salary & benefits
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What’s driving up costs for BPS in FY17?
• Rising cost of salaries and benefits for existing
employees
• Adjusting where we are running over-budget today (transportation, custodians, early hiring)
• Inflation / general cost-of-doing business for non-
personnel expenses
• Slightly off-set by small decline in overall
enrollment projection
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What are some of the potential FY17 investments?
Basic Operations and Past Commitments
• Deferred maintenance to support health and safety in our
schools
• Turnaround supports
• ACC move
• Classroom expansions
Strategic Investments
• Extended Learning Time, Cohort 2
• Supports for Special Education transitions to new service models
• Expansion of K1 seats
• 100 Day Plan
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The following changes were included in WSF school
budgets released this Monday
• High school staffing assumptions
• Special education weights
• Projections reconciliation (adjusting funding
based on actual enrollment)
• Putting guardrails on the costs of our early hiring
initiative
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We are still early in the budget process with important
steps ahead of us
• Partnering with schools to navigate changes to
their budgets
• Continuing to partner with central departments
to identify possible efficiencies or reductions in
service
• Engaging with our community and the School
Committee for feedback and to iterate on our
plans