Norwalk Public SchoolsRecommended Plan and Budgetfor FY 2014/2015 and Beyond

December 10, 2013

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A Commitment to Link Planning & Budgeting:

Planning Phase

◦ Input from stakeholders◦ Focus groups: parent and staff input ◦ Focus on Goals and Priority Areas in a long-term strategic way

Budget Development Phase◦ All district expenses◦ Development of recommendations:

Priority additions and investments Alignment of grant resources Reductions and efficiencies

NPS 2014-15 Budget Development Process

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Community and Focus Group Input

Common themes emerged when participants were asked what they value most about Norwalk Public Schools:

Norwalk’s dedicated teachers and staff Our district’s diversity The availability of extra-curricular activities and after-school

programs Our strength in Music and Arts Special Education resources The integration of community resources unique to Norwalk World Language programs

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Participants recommended the following as top priorities to consider for the 2014-15 budget:

Changing the culture to ensure all students achieve at high levels Preparing students for post-secondary education and careers School safety and security Better equity in resource distribution Support for implementing Common Core State Standards Funding for extra-curricular activities and after-school programs Continued investment in technology, including resources to

support teachers in using new tools Enhancing the role of libraries Special education resources Identifying new sources of revenue, such as corporate

partnerships and grants

Community and Focus Group Input

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Mission and Vision

Mission: To transform the learning environment for students and staff, creating a student-focused culture that motivates, challenges and supports every individual student to his or her highest levels of achievement.

Vision:All students will graduate prepared to reach their highest potential for college, career and life-long success in a globally competitive society.

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Our Primary “Change Levers”

Create a culture of accountability where high expectations and standards are known, and undergird our behavior and actions.

Build the knowledge, skills and capacity of teachers and school leaders.

Assure that all students are “on track” to meet or exceed learning expectations by the end of Grade 3.

Provide the systems, structures and tools necessary.

Create a new PreK through College and Career (Grade 14/16) mindset.

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Our Primary Goal

To close the Achievement GAP by 2020 and assure that all students, regardless

of race, ethnicity or economic circumstances, are meeting high

standards.

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Goals

1. Children are ready to enter Kindergarten.

2. Students meet the goal level in 3rd Grade reading.

3. Children demonstrate Mastery in CCSS Mathematics.

4. Norwalk students demonstrate Mastery in CCSS ELA.

5. ELL students will meet/exceed State Annual Measurable Achievement Objectives.

6. Norwalk’s schools reach higher performance.

7. Norwalk students graduate from high-school “College and Career Ready.”

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Focus Areas and Priorities

1. Build Greater Accountability Against High Expectations and Standards

• Shared Mission, Vision and Values

• Goals, metrics and performance expectations guide our work

• Professional standards aligned with new evaluation systems

• Annual “School Quality” reviews

• Publicly report on progress and recognize our accomplishments

• New school and student “Dashboards”

• Quality control and implementation of all curriculum and instruction

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Focus Areas and Priorities

2. Build the Knowledge, Skills and Capacity of Teachers and Leaders• Common Core State Standards (K-3 Literacy Emphasis)

• Personalized Learning

• ELL

• Special Education

• Cultural Diversity

3. Improve and/or Transform the Learning Environment for All• Library redesign

• Briggs HS turnaround

• NEASC Accreditation for NHS & BMHS

• Middle to High School transition and alignment

• Expanded use of Technology

• Design and development of new programs (Early College HS, Magnet Schools and International Baccalaureate programs)

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Focus Areas and Priorities

4. Special Education • Quality control and PPT decision making

• CREC report analysis and response

5. Improve or Build the Systems and Structures Necessary to Support our New Learning Environment• Human Resources: Recruitment, selection and hiring of staff,

commitment to diversity, operational excellence

• Financial and Resources Management: Advance school-based resource management practices

• Curriculum and Instruction: Quality control and Common Core implementation

• Data Systems: Student information, HR management, and more

• School Master Schedule Enhancements: maximize time for learning

• Facility Utilization Plan

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Focus Areas and Priorities

6. Build Partnerships and a New Pre-K through Grade 14/16 Mindset for Students and Parents• Increase access to Pre-K and quality early learning

• Pursue new strategies to engage with parents, especially at Pre-K through Grade 3

• Expand access to after-school and summer learning

• Expand access to mentors

• Assure children’s health needs are met

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2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015*10,700

10,750

10,800

10,850

10,900

10,950

11,000

11,050

11,100

11,150

11,200

10,883

11,074

11,095

11,05711,078

11,172

TOTAL ENROLLMENT

Enrollment Trends: Total Enrollment

Enrollment based on 10/1 data

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2009/2010 2010/2011 2011/2012 2012/2013 2013/20140

1,000

2,000

3,000

4,000

5,000

6,000

4,261

4,7444,998

5,263

5,456

TOTAL FREE & REDUCED LUNCH

43%45%

49%

Enrollment Trends:Free & Reduced Lunch Eligibility

Enrollment based on 10/1 data

39%

48%

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

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

76.97 75.73 71.40

64.20 65.40 62.50

Central Office FTE

Central Office FTE’s

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ECS Funding and Enrollment

CONNECTICUT DISTRICT REFERENCE GROUP (DRG): H

DISTRICT 10/01/2013 Enrollment

% Free & Reduced Lunch

ECS Funding ECS $ Per Enrollment

13/14 Operating Budget

ECS % of Operating

Budget

             ANSONIA 2,355 67% $16,106,868 $6,839 $28,000,000 58%DANBURY 10,549 51% $27,294,245 $2,587 $118,295,291 23%DERBY 1,501 54% $7,535,221 $5,020 $16,163,663 47%EAST HARTFORD 6,456 67% $46,063,573 $7,135 $87,266,419 53%MERIDEN 8,118 70% $57,915,330 $7,134 $99,608,340 58%NORWALK 11,078 49% $10,999,197 $993 $162,271,863 7%NORWICH 3,463 76% $34,694,767 $10,019 $70,535,212 49%STAMFORD 15,908 46% $9,834,019 $618 $245,072,949 4%WEST HAVEN 5,952 59% $44,209,129 $7,428 $85,134,756 52%

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Proposed budget assumes a 3.6% increase from City of Norwalk

State ECS funding remains at approximately 7% of total operating budget

Carryover of all unencumbered Alliance funds

Surplus Medicaid revenue is included

Grant funding remains consistent at approximately $21Million

Revenue Assumptions for 2014/2015

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Salaries are in accordance with collective bargaining agreements

Health insurance based on projections reflects a 4% increase

Affordable Care Act requires $5.25 per month, per member, or $220,000

Per Pupil Allocation to schools remain consistent with prior years: $85 for HS, $74 for MS, $71 for Elementary

Increases in both out-of-district tuition and consulting services for Special Education students (Projected increase 4.1%)

Transportation increases based on contractual obligation (4.5% annual contractual increase to First Student. Additional vans for Special Education and additional bus increase overall year over year increase to 9.5%.)

Expense Assumptions for 2014/2015

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Salaries62%

Benefits22%

Special Ed Tuition & Consult-ing Ser-vices6%

Trans-portation

4%

Utilities2%

Facilities Maintenance1%

HS Athletics1% Per Pupil Allocation

1%

Other1%

SalariesBenefitsSpecial Ed Tuition & Consulting ServicesTransportationUtilitiesFacilities MaintenanceHS AthleticsPer Pupil AllocationOther

FY 14/15 Key Expense Drivers

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2014/2015 Budget SummaryObject FY 13/14 Budget FY 14/15

Recommend Budget

% Increase

Salaries (100) $100,866,008 $104,614,705 4%

Benefits (200)* $35,541,583 $36,895,679 4%

Professional & Technical Services (300) $3,762,517 $3,689,356 -2%

Property Services (400) $2,586,126 $2,541,531 -2%

Other Services (500) $13,303,710 $14,093,399 6%

Supplies and Materials (600) $5,792,408 $5,777,908 0%

Equipment (700) $313,014 $366,571 17%

Other Objects (800) $106,497 $139,235 31%

Total Operating Expenses $162,271,864 $168,118,385 3.60%

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Increase to FY 14/15

NFT Salary Increase $3.10M

Other Bargaining Group Increases $1.50M

Benefits $1.40M

Redesign Funds $0.87M

Other Increases $0.75M

Transportation $0.60M

Special Education Accounts $0.30M

Technology $0.20M

Excess Medicaid Funds $(0.35)M

Grant Re-allocation $(1.27)M

Reductions $(1.26)M

Total $5.84M

Where the Money Goes

* Includes salary and wage increases, reductions in IDEA grant moving costs to local budget, communications director, FY 13/14 additional class size aides, housemasters restored to 12 months after original FY 13/14 base budget.

*

**

**Includes legal fees, MS intramurals, supplies, equipment, memberships, travel, athletic insurance, substitutes, facilities.

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Maintains low class sizes for K-5 students: $400,000

Maintains sports and athletics: $1.1 Million

Increases funds for Middle School intramural sports: $100,000

Increases funds for Special Education: CREC recommendations and reorganization/redesign: $245,000

Increases funds for Human Resources Department redesign, reorganization, staff recruitment/diversity hiring and systems improvement: $285,000

Plan and Budget Highlights

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Establishes one-time fund to create a Facility Utilization Plan: $100,000

Refocuses grant and foundation funds to phase in the assignment of a full-time Curriculum and Instruction Site Director at each K-5 school, with key responsibilities to include:

Common Core SS K-3 Literacy emphasis Supervision and evaluation

Grant funds are targeted to support professional development for Board-approved priorities

Advances Board priorities for Technology, Communication, Library redesign, and Astronomy and Science Center

Plan and Budget Highlights

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Eliminate 6 positions, three of which are vacant

Reallocate Alliance and other grant funding sources to support ELL services, Curriculum and Instruction Site Directors, and Grants Department

Generate savings in facilities accounts through the use of more in-house work and vendor changes

Reduction in supplies accounts based on historical trends

Budget Reductions & Reallocations

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The Superintendent’s recommended FY 14/15 budget is for an operating increase of 3.6% over FY 13/14.

In order to move forward, we have taken a multi-year approach to investing in the Norwalk Public Schools. These investments will be highlighted in a variety of areas over the course of a few years. Funding for changes will come from state, local and private sources.

This budget will address the CREC Report, move Norwalk forward with implementing Common Core, strengthen early literacy, address class size concerns among the community, and strengthen central services.

Summary

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A combination of budgeting, strategy and forecasting over a multi‐year period

Multi-Year Models institutionalize the idea of long-range thinking to combine budgeting with strategic ideas and decisions

Increases understanding of key expense drivers

For larger organizations, financial planning plays an integral role in forming estimated budget assumptions, long-range planning, strategic decisions

What is a Multi-Year Model?

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Salaries for NFT re-opener remains at existing scale

Place holder for GWI % for all unsettled contracts

Meets collective bargaining requirements

Health Insurance increases at an annual premium rate of 5% per year, as more employees migrate to HSA plans

All level of grant funding remains the same

Per Pupil Allocation remains at $85 for High School, $74 for Middle Schools, $71 for Elementary Schools

Student enrollment will increase 1% per year starting 2014

Multi-Year Model Assumptions

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Out-of-district tuition for Special Education students increases 4.0% per year, with out-of-district students increasing 3% per year

Maintains existing levels of supplies and services with only slight add-backs based on current budget submissions

Maintains local commitment to new Curriculum and Instruction Site Directors

No additional positions added in future years, except reserve teacher per year starting in 2014/2015 to account for higher projected enrollment

Multi-Year Model Assumptions

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Multi-Year Projection

Category FY 13/14 FY 14/15%

Change

FY 15/16

% Chang

eFY 16/17

% Chang

e

Salaries & Wages

$100,866,008 $104,614,705 4% $109,376,515 4.6% $113,141,313 3.4%

Benefits $35,541,583 $36,895,679 4% $38,794,183 5.1% $40,236,155 3.7%

Professional & Technical Services

$3,762,517 $3,689,356 -2% $4,325,997 17.3% $4,487,635 3.7%

Property Services

$2,586,126 $2,541,531 -2% $2,593,636 2.1% $2,565,757 -1.1%

Other Services

$13,303,710 $14,093,399 6% $14,614,380 3.7% $15,320,257 4.8%

Supplies & Materials

$5,792,408 $5,777,908 0% $5,831,067 0.9% $5,847,559 0.3%

Equipment $313,014 $366,571 17% $377,288 2.9% $388,381 2.9%

Other Objects

$106,497 $139,235 31% $139,571 0.2% $139,811 0.2%

Total $162,271,864$168,118,38

53.6%

$176,052,638

4.7%$182,126,86

83.5%

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NFT salary schedule

Degree level changes

Health insurance

Special Education out-of-district tuition and consulting services

Transportation

Medicaid reimbursement (parental consents)

Loss of carryover funds in grants

Uncertainty regarding grant funding

Multi-Year Model Budget Pressures

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1. Extra-curricular Sports and After-School Programs ◦ Equity ◦ Private contributions◦ “Pay for Play”

2. Special Education ◦ NPS to provide services for certain Special Education students, in lieu of

out-of-district placement

3. Scheduling Efficiencies◦ Reduce inefficiencies in current school schedules◦ Establish new schedules aligned with district goals and priority areas

4. Labor Management Agreement and Analysis◦ New incentives, aligned with NPS goals and priorities◦ Leadership◦ Roles, positions, titles, salaries ◦ “Additional pay” categories reviewed

2015-16: Target Areas for Budget Analysis and Recommendation

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5. World Languages◦ Blended learning and online options

6. Teacher Aides◦ Evaluate utilization and effectiveness

7. Transportation◦ New contract opportunity

8. Revenue◦ Continue to reallocate use of grant funds toward district goals

and priorities◦ Seek additional foundation and grant funds◦ Develop and advance an NPS legislative agenda

2015-16: Target Areas for Budget Analysis and Recommendation