Post on 04-Jan-2016
description
FY14-15 Budget UpdateFinance Update
Presentation to School CommitteeDecember 4, 2013
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BOSTON PUBLIC SCHOOLS Finance
Overview: FY13-FY15
FY13FY13
FY15FY15
FY14FY14
Fiscal year ended on June 30, 2013
BPS ended the year within budget for the 23rd consecutive year
Current fiscal year, running through June 30, 2014
We are currently facing unanticipated expenditures, and we are taking action in response to these budget pressures
Fiscal year beginning July 1, 2014 and running through SY14-15
We project that rising costs and decreases in external funding will present a challenge
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FY2014 Budget InvestmentsOur FY14 budget funds investments to close gaps and ensure all students are college & career ready
Sustains extended days in Turnaround Schools
Sends $30 million new dollars directly into schools through Weighted student Funding
Invests in schools with high concentrations of poverty
Prepares for new Dual Language, Innovation, and In-District Charter Schools
Supports conversion of two schools to fully inclusive programs
Strengthens support for and development of great teachers and school leaders
BOSTON PUBLIC SCHOOLS Finance
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BOSTON PUBLIC SCHOOLS Finance
Our current enrollment is close to last year’s enrollment, but lower than we had projected
Projected Enrollment: 58,284
Actual Enrollment: 56,735
District Enrollment Variance : 1,549 (-2.66%)
Projected Enrollment: 58,284
Actual Enrollment: 56,735
District Enrollment Variance : 1,549 (-2.66%)
This variance is particularly driven by a leveling off of our early childhood enrollment
We were prepared to welcome 1,024 new students in grades K0-2 this year, in line with the increases we have seen since FY11
Instead, so far we have seen an increase of 382 students in these grades
3 year
Change % Change
Gen Ed 615 5.5%
SEI 115 4.1%
SPED 318 24.2%
Total 1,048 6.8%
Enrollment Changes in K0-2, FY11-FY13
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BOSTON PUBLIC SCHOOLS Finance
There was a great deal of variation in projections between and within schools
Some schools actually enrolled significantly more students than
projected
Some schools actually enrolled significantly more students than
projected
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BOSTON PUBLIC SCHOOLS Finance
We currently anticipate a shortfall of approximately $10 million in FY14
As of October 31, our anticipated shortfall is $10.3 million
Major contributing factors include: Cost of opening classrooms beyond what was initially projected for this
school year and additional funding to maintain existing programming
Cost to implement new hiring process, including training for teachers and School Site Councils
Interventions at Madison Park to address staffing, textbook, and equipment needs
Turnaround interventions at English High and E. Greenwood
Continued growth in requirements for therapeutic services for students with disabilities
Transportation costs, including for homeless students, additional bus monitors, and students with private placements
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BOSTON PUBLIC SCHOOLS Finance
We are taking action to address our budget pressures in FY14
Implemented a special review process for the hiring of all non-classroom positions in the district Any request for exception will be reviewed and considered
by a subgroup of the Superintendent’s cabinet
Will analyze current spending patterns and make adjustments where appropriate
Working with Veolia to identify opportunities to minimize unanticipated transportation costs
Reviewing the possibility of using external funds to cover any and all expenditures
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We will face approximately $50-60 million in projected cost increases
Major cost components include: Employee step increases: $11.8 million
Health insurance and other benefits: $7.6 million
Collective bargaining: $17.2 million
Investments in Madison Park: $1.3 million
Special education out-of-district placements: $0.5 million
Increase in bus monitors: $0.6 million
We are working collaboratively with the City of Boston finance team to refine our total estimate
BOSTON PUBLIC SCHOOLS Finance
We anticipate a challenging budget environment in FY15
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Other challenges will include:
Preparing for Common Core standards and online PARCC assessments (PARCC: Partnership for Assessment of Readiness for College and Careers)
Costs associated with introducing hiring flexibility in all schools
Expanding inclusive practices to more schools and classrooms
Updating our early literacy curriculum
Providing transportation for homeless students
BOSTON PUBLIC SCHOOLS Finance
We anticipate a challenging budget environment in FY15
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BOSTON PUBLIC SCHOOLS Finance
We also project a decline of approximately $31.1 million in external funds
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In addition, state Chapter 70 funding provides a declining share of our budget
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BOSTON PUBLIC SCHOOLS Finance
BPS FY15 Budget Timeline (tentative)
BOSTON PUBLIC SCHOOLS Finance
Mid-Nov. Enrollment projections to schools for review
Develop guidance to schools regarding academic strategy
Dec. 13 Budget allocations provided to schools
Dec. – Jan. Review of Central Office budgets
Jan. 3 School budgets due back to Budget Office
Jan. 9 – 13 Budget Reviews
Jan. 13 – Feb.Probable Org
Feb. 5 Superintendent’s recommended budgetto School Committee
Feb. – Mar. Budget hearings
Mar. 26 School Committee votes on BPS budget12
We will once again fund schools using Weighted Student Funding
BOSTON PUBLIC SCHOOLS Finance
Principle Description
Student focused Provides resources based on students, not on buildings, adults, or programs
Equity Allocate similar funding levels to students with similar characteristics, regardless of which school they attend
Transparency Easily understood by all stakeholders
Differentiation based on need
Allocate resources through a comprehensive framework that is based on student needs
Predictability School allocation process is predictable and is structured to minimize school-level disruption
School empowerment
Empowers school-based decision-making to effectively use resources
Alignment with district strategy
Supports the Acceleration Agenda, our five-year strategic plan
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BOSTON PUBLIC SCHOOLS
Boston ranks #2 among large urban districts that use weighted student funding in directing resources to schools
Source: Geogetown University, Edunomics Lab
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BOSTON PUBLIC SCHOOLS Finance
% of School Department Budget (General Fund + Grants)
BOSTON PUBLIC SCHOOLS
We are looking closely at enrollment projections and weights as we develop school budget allocations for FY15
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BOSTON PUBLIC SCHOOLS Finance
Allocations will reflect projected enrollment and programmatic needs of schools
We are taking this year’s enrollment trends into account as we plan for next year
We continue to review the weights assigned to different student populations to ensure that the weights reflect student needs
BOSTON PUBLIC SCHOOLS
Questions?
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BOSTON PUBLIC SCHOOLS Finance
For more information, join the Georgetown University
Edunomics Lab for a webinar on Weighted Student Funding
•How allocation models work•Why districts use student-based allocation•What formulas look like
Tuesday, December 10th
1:00 p.m.
Register at edunomicslab.org