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CMS Funding Evaluation Guidelines – Operating Funds

February 12, 2009

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Briefing Overview

• Purpose of the Guidelines

• Methodology

• FY2008 Application

• Reflections and Next Steps

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Purpose of the Guidelines

• Provide a tool for the Board of County Commissioners to evaluate CMS operating funding requests based on

– Per pupil funding changes – Changes in student enrollment and composition.

• Does not obligate the Board to fund at certain dollar amount.

• If CMS request is not consistent with funding guideline, it gives the Board a basis for assessing the request.

• Developed in 2004 and refined since.

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Operating Guideline Premise

• What will it cost next year to deliver current level of services given

– Per pupil spending, – Enrollment growth and composition changes, – Cost and inflation factors, and – State funding.

• CMS can request funding above the current service level as County “grants.”

• Does not include capital funds.

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Guideline Components

1. Adjusted per pupil funding based on enrollment growth

2. Funding based on student composition changes

3. County operating grants for new CMS initiatives

Note: Some numbers may not be exact due to rounding.

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1. Adjusted Per Pupil Calculation

A. Determine current year Per Pupil Amount (Total and County)

B. Determine cost increases based on cost “buckets”• Ex – Salaries, supplies, equipment & vehicles, utilities• Based on state/CMS projections

C. Adjust current year Per Pupil to get next year’s Per Pupil funding amount

D. Calculate County Guideline Amount

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A. Determine CY Per Pupil Amount

FY07 Funding Enrollment Per Pupil

State $623,777,628 129,011 $4,835

       

County $316,160,298 129,011 $2,451

       

Total     $7,286

Note: Example uses FY07 actuals to project FY08 guidelines

Calculation:FY07 Funding

CMS Enrollment= Per Pupil Amount

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B1. Determine Ave. Cost Increases

Cost “Bucket” Rate Comment

Salaries and Benefits 6.0% State Increase

Purchased Services 3.4% 2006 CPI

Supplies & Materials 3.5% 2005-2006 CPI Ave

Equip & Vehicles 3.5% 2005-2006 CPI Ave

Other 3.5% 2005-2006 CPI Ave

Transfer to Charter Schools 14.11% Actual calculation

Weighted Cost Increase Factor 5.8%  

   

Projected Student Enrollment Growth 5,231 134,242

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B2. Cost Increase Details

Bucket Amount %

Increase Increase Amount  

Salaries and Benefits $ 824,884,661 6.0% $ 49,493,080  

Purchased Services $ 61,996,029 3.4% $ 2,107,865

Supplies & Materials $ 37,874,771 3.5% $ 1,325,617  

Equipment & Vehicles $ 3,854,929 3.5% $ 134,923  

Other $ 3,586,509 3.5% $ 125,528  

Transfer to Charter     $ 1,093,000  

Total $ 932,196,899   $ 54,280,012 5.8%

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C. Adjust for Cost Increase

FY07 Total Per Pupil Cost Increase

Factor

FY08 Per Pupil

AmountPer Pupil Increase

State $4,835

County $2,451

Total $7,286 5.8%

$7,708

$423 To provide the same level of service in FY08 as in FY07 will cost $423 more per pupil.

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D1. Determine State Per Pupil Amount

FundingProjected

EnrollmentPer Pupil

$696,862,205 134,242 $5,191

FY08 State Contribution to CMS

Calculation:FY08 Projected State Funding

CMS Projected Enrollment= FY08 Projected State

Per Pupil Amount

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D2: Determine County Guideline Amount

Calculation: FY08 Per Pupil X Projected Enrollment = County Guideline

FY08 Per Pupil Projected

Enrollment FY08 GuidelineIncrease from

FY07

Total $7,708

State $5,191

County $2,517 134,242

$337,914,191

$21,753,893

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2. Accounting for Changing Student Composition

• Assumption - Different types of students cost different amounts to provide the same level of service.– Free and reduced lunch– English as a second language– Exceptional children

• Enrollment growth has proportionally greater percentages of these types of students than the existing enrollment.

• Funding should account for this change in enrollment composition to maintain current service levels.

• Composition funding is weighted based on type of student.

• Lagging data uses FY07 actuals.

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Composition Change Calculation

TypeStudent Count

Weight Per PupilGuideline Amount

Exceptional Children 98 1.5 $2,517 $370,029

Limited English Proficient 2,390 0.45 $2,517 $2,707,250

Free & Reduced Lunch 497 0.3 $2,517 $375,315

Total $3,452,594

Notes: Weights determined based on comparisons with other school districts.

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3. County Operating Grants

• CMS can request additional funds as a County grant for specific initiatives or needs beyond the base.

• Grants– Time limited– Performance based– For a specific purpose outside of the base– Listed separately from the base in the budget

• EX – High School Challenge

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FY08 Operating Guideline

• FY2007 Operating $316,160,000

• Enrollment Growth $21,754,000• Enrollment Composition $3,453,000

$25,207,000

• FY2008 Guideline $341,367,000

If CMS’ FY2008 CMS Request is $370, $335, or $320 million, the guidelines provide a structure to ask “Why is this so?”.

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Questions