FY 2021

Proposed

Operating Budget

Virginia R. McGraw, Chairman

Latina L. Wilson, Vice Chairman

Jennifer S. Abell

Tajala D. Battle-Lockhart

Elizabeth C. Brown

David W. Hancock, Jr.

Michael K. Lukas

Ian Herd, Student Member

Charles County Public Schools

Dr. Kimberly A. Hill, Ed. D

Superintendent

The Charles County Public Schools Operating Budget was prepared by the Office of Fiscal Services. If there are questions regarding this document,

please contact Kimberly A. Hill, Ed. D, Superintendent, P.O. Box 2770, La Plata, MD 20646. 301-934-7223.

The Charles County public school system does not discriminate on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity, age or

disability in its programs, activities or employment practices. For inquiries, please contact Kathy Kiessling, Title IX/ADA/Section 504 Coordinator (students) or Nikial

M. Majors, Title IX/ADA/Section 504 coordinator (employees/adults), at: Charles County Public Schools, Jesse L. Starkey Administration Building, P.O. Box 2770,

La Plata, Maryland 20646, or by phone: (301) 932-6610 or (301) 870-3814. For special accommodations, call (301) 934-7230 or TDD 1-800-735-2258 two weeks prior

to the event.

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Table of Contents TRANSMITTAL LETTER ............................................................................................................ 3

REPORT ITEM FOR THE BOARD OF EDUCATION ............................................................... 4

Attachment: FY 2021 Budget Planning Model .......................................................................... 5

Attachment: Operating Revenue ................................................................................................. 6

Attachment: Operating Budget by Category and Object Code ................................................... 7

Attachment: Full-time Equivalent Staff ...................................................................................... 8

REVENUE INCREASES ............................................................................................................... 9

County Funding Request............................................................................................................. 9

State Funding Request ................................................................................................................ 9

Calculations for State Funding.................................................................................................... 9

State Revenue and Wealth Comparison Table.......................................................................... 11

Fund Balance Transfer .............................................................................................................. 11

Food Service Meal Price Increase ............................................................................................. 11

Restricted Funds........................................................................................................................ 12

MANDATORY COST INCREASES........................................................................................... 13

Bus Contracts ............................................................................................................................ 13

Teachers' Pension (SB1301) ..................................................................................................... 13

New Enterprise Resources Planning (ERP) Software .............................................................. 13

Maryland Association of Boards of Education (MABE) Insurance Premium Increase ........... 13

Nurses’ Contract ....................................................................................................................... 13

COLLECTIVE BARGAINING ASSUMPTIONS ....................................................................... 14

Reserve for Collective Bargaining ............................................................................................ 14

OTHER COST INCREASES ....................................................................................................... 14

Teachers for Enrollment Growth .............................................................................................. 14

BUDGET REDUCTIONS ............................................................................................................ 14

Kirwan Mental Health Coordinator Reclassification to Restricted Funds .......................... 14

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TRANSMITTAL LETTER

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REPORT - OFS

June 11, 2020

Attachments

REPORT ITEM FOR THE BOARD OF EDUCATION

SUBJECT:

Revised FY 2021 Proposed Operating Budget

OVERVIEW:

Attached is the final FY 2021 operating budget that the Superintendent has developed for

consideration by the Board of Education (BOE). While continuing to focus on academic success

and career readiness for all students, the approved operating budget totals $401,007,950.

Additional funding of $7,569,770 represents a 1.9 percent increase over the current operating

budget. The REVISED DRAFT Calculations for Major State Aid Programs from Maryland

State Department of Education (MSDE), issued on May 29, 2020, presumes an increase in

funding of $2.6 million or 1.4 percent. The REVISED DRAFT Calculations for The Blueprint to

Maryland’s Future Programs (SB1030), also issued on May 29, 2020, presumes an increase of

$371 thousand for the Supplemental Pre-Kindergarten Grant. Our requested county funding

increased by $3.6 million or 1.9 percent which comprises the required Maintenance of Effort

increase of $1.9 million. This budget also includes a transfer from fund balance of $1.0 million

over the amount that was needed in FY 2020.

Expenditure increases include a reserve for collective bargaining, state-mandated teacher’s

pension contribution, the nurses’ contract with Charles County Health Department, mandatory

school bus replacements, and Maryland Association of Boards of Education (MABE) liability

insurance and workers’ compensation premiums. Funds would also support student enrollment

growth.

The Food and Nutrition Services program breakfast and lunch prices will comply with Maryland

Cares for Kids Act (HB 315). The meal process will increase 5 cents for breakfast and 10 cents

for lunch, for paying students only, to comply with The Healthy, Hungry-Free Kids Act of 2010.

The budget request reflects the needs of the school system, as required by the Education Article

§ 4-205. Should additional funding become available, there are significant system wide needs

included in a supplemental budget.

RECOMMENDATION/FUTURE DIRECTION:

It is recommended that, prior to the start of the new fiscal year, the BOE approves the

recommendations included in the FY 2021 Operating Budget and forward to the County

Commissioners for categorical approval.

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Attachment: FY 2021 Budget Planning Model

DESCRIPTION COST

BASE REVENUE BUDGET 393,438,180$

REVENUE INCREASES:

County Funding - Additional Base 1,710,000

County Funding - Maintenance of Effort - 264.5 student increase 1,930,600

One-time, Non-recurring Additional County Funding 32,570

1.9% TOTAL ADDITIONAL COUNTY FUNDING 3,673,170

1.4% STATE FUNDING (MSDE Preliminary Estimate - January 17, 2020) 2,608,995

Kirwan - Mental Health Coordinator - Reclassified to Restricted Funds (83,333)

31.9% Kirwan - Pre-Kindergarten 370,938

FEDERAL REVENUES -

LOCAL REVENUES -

FUND BALANCE TRANSFER (total base transfer of $3.2 M) 1,000,000

TOTAL REVENUE INCREASES: 7,569,770

TOTAL REVENUE BUDGET 401,007,950

Percent Increase 1.9%

BASE EXPENDITURE BUDGET 393,438,180$

MANDATORY COST INCREASES:

7% Bus Contracts (44 replacement buses and three new enrollment growth/program routes, driver salary) 2,009,400

5% Teachers' Pension (SB1301) - State Retirement Agency (estimate) 450,000

New Enterprise Resource Planning (ERP) Software 636,000

10% MABE Liability Insurance and Workers' Compensation Premium Increase (estimate) 380,000

2.8% Nurses' Contract - (estimate) 103,700

TOTAL MANDATORY COST INCREASES: 3,579,100

TOTAL COLLECTIVE BARGAINING ASSUMPTIONS: 2,416,095

OTHER COST INCREASES:

Teachers for Enrollment Growth (408 FTE student increase; 25 to 1 average student to teacher ratio) - 17 FTE's 1,254,400

Kirwan - Pre-Kindergarten 370,938

One-time, Non-recurring Cost Exclusion - Communication - Television Equipment 32,570

TOTAL OTHER COST INCREASES: 1,657,908

BUDGET REDUCTIONS:

Kirwan - Mental Health Coordinator - Reclassified to Restricted Funds (83,333)

TOTAL BUDGET REDUCTIONS: (83,333)

TOTAL EXPENDITURE BUDGET 401,007,950

NET SURPLUS/(DEFICIT) -

Note: Includes additional base funds for the Fresh Start Academy $452,200.

FY2021

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Attachment: Operating Revenue

FY 2020 General Fund base budget reflects an increase of $452,200 for the Fresh Start Academy

FY 2020 Food Service base budget reflects an increase of $704,372 for prior-year fund balance

*Note: FY 2021 includes a 5-cent breakfast and 10-cent lunch increase on meal prices for paying students

FISCAL YEARS

DESCRIPTIONFINAL $ BUDGET BUDGET VARIANCE $

%

CHANGE

GENERAL FUND

50 - STATE REVENUES

5030 - STATE-NONPUBLIC SPEC ED 1,269,013 1,194,373 1,194,373 (0) 0.0%

5031 - STATE-FOUNDATION PROGRAM 111,700,280 115,861,320 117,446,673 1,585,353 1.4%

5032 - STATE-SPECIAL ED FORMULA 9,270,303 9,307,021 8,943,095 (363,926) -3.9%

5033 - STATE-TRANSPORTATION 11,275,556 11,968,026 12,204,758 236,732 2.0%

5036 - STATE-COMPENSATORY AID 34,227,072 35,504,708 36,633,888 1,129,180 3.2%

5041 - STATE-OUT OF COUNTY 37,683 0 0 (0)

5044 - STATE-MEDICAID REVENUES 435,905 890,000 890,000 (0) 0.0%

5045 - STATE-LIMITED ENGLISH 2,860,066 3,392,610 3,923,849 531,239 15.7%

5046 - STATE-GUARANTEED TAX BASE 1,596,663 2,137,264 791,257 (1,346,007) -63.0%

5048 - STATE-GCEI 3,685,811 3,812,445 3,897,013 84,568 2.2%

5050 - STATE-NET TAXABLE INCOME 5,612,105 6,402,288 7,154,144 751,856 11.7%

5060 - STATE-KIRWAN TEACHER INCENTIVE ELIGIBILITY 0 2,819,200 2,819,200 (0) 0.0%

5061 - STATE-KIRWAN SPECIAL EDUCATION FORMULA 0 2,239,026 2,239,026 (0) 0.0%

5062 - STATE-KIRWAN PRE-KINDERGARTEN 0 1,162,400 1,533,338 370,938 31.9%

5064 - STATE- KIRWAN MENTAL HEALTH COORDINATOR 0 83,333 0 (83,333) -100.0%

50 - STATE REVENUES Total 181,970,457 196,774,014 199,670,614 2,896,600 1.5%

51 - FEDERAL REVENUES

5153 - FEDERAL-IMPACT AID 169,458 476,000 476,000 (0) 0.0%

5155 - FEDERAL-R.O.T.C. 532,647 430,000 430,000 (0) 0.0%

5161 - FEDERAL-SP ED IMPACT AID 104,793 64,000 64,000 (0) 0.0%

51 - FEDERAL REVENUES Total 806,898 970,000 970,000 (0) 0.0%

52 - LOCAL REVENUES

5204 - PRIOR YEAR FUND BALANCE TRANSFER 0 2,201,086 3,201,086 1,000,000 45.4%

5206 - TUITION-SUMMER YOUTH CAMP 42,885 25,000 25,000 (0) 0.0%

5207 - TUITION-SUMMER SCHOOL 88,400 92,296 92,296 (0) 0.0%

5208 - TUITION-OUT OF STATE 199,350 185,400 185,400 (0) 0.0%

5209 - TUITION-PARENT PAYMENTS 42,141 89,100 89,100 (0) 0.0%

5210 - INTEREST INCOME 701,790 436,680 436,680 (0) 0.0%

5211 - RENT-SCHOOL FACILITIES 242,342 191,200 191,200 (0) 0.0%

5212 - PAYROLL TRANSFERS 89,494 73,000 73,000 (0) 0.0%

5215 - SALE OF PROPERTY 3,902 6,000 6,000 (0) 0.0%

5216 - TUITION-OTHER MD COUNTIES 217,981 128,504 128,504 (0) 0.0%

5221 - MISCELLANEOUS REVENUE 42,166 12,200 12,200 (0) 0.0%

5222 - RESTITUTION 19,887 10,000 10,000 (0) 0.0%

5225 - REBATES 54,431 54,431 54,431 (0) 0.0%

5226 - VENDING COMMISSIONS 100,000 100,000 100,000 (0) 0.0%

5227 - TUITION-NOVEL 150 15,269 15,269 (0) 0.0%

5228 - UNCLAIMED ESTATES 10,000 0 0 (0) 0.0%

5262 - NET INSURANCE RECOVERY 62,412 0 0 (0) 0.0%

52 - LOCAL REVENUES Total 1,917,031 3,620,166 4,620,166 1,000,000 27.6%

53 - LOCAL COUNTY APPROPRIATIONS

5300 - COUNTY-SUPPLEMENT 2,161,114 0 32,570 32,570 0.0%

5301 - COUNTY-APPROPRIATIONS 181,982,100 192,074,000 195,714,600 3,640,600 1.9%

53 - LOCAL COUNTY APPROPRIATIONS Total 184,143,214 192,074,000 195,747,170 3,673,170 1.9%

GENERAL FUND Total 368,837,599 393,438,180 401,007,950 7,569,770 1.9%

FOOD SERVICE * 13,612,081 14,747,909 14,985,260 237,351 1.6%

RESTRICTED 16,826,900 16,418,431 15,774,431 (644,000) -3.9%

Grand Total 399,276,580 424,604,520 431,767,641 7,163,121 1.7%

19 20 21

*** PROPOSED ***

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Attachment: Operating Budget by Category and Object Code

FY 2020 General Fund base budget reflects an increase of $452,200 for the Fresh Start Academy

FY 2020 Food Service base budget reflects an increase of $704,372 for prior-year fund balance

*Note: FY 2021 includes a 5-cent breakfast and 10-cent lunch increase on meal prices for paying students

FISCAL YEARS

DESCRIPTION FINAL $ BUDGET BUDGET VARIANCE $ % CHANGE

GENERAL FUND

00 - UNDEFINED 0 0 0 0 0.0%

01 - ADMINISTRATION 9,920,355 11,866,217 12,534,787 668,570 5.6%

02 - MID-LEVEL ADMINISTRATION 23,898,111 25,483,594 25,483,594 0 0.0%

03 - INSTRUCTION

71 - SALARIES & WAGES 133,474,742 147,568,018 148,413,858 845,840 0.6%

73 - SUPPLIES & MATERIALS 6,188,404 4,494,888 4,865,826 370,938 8.3%

OTHER INSTRUCTIONAL COSTS 1,755,971 2,393,090 2,393,090 0 0.0%

03 - INSTRUCTION Total 141,419,118 154,455,995 155,672,773 1,216,778 0.8%

04 - SPECIAL EDUCATION 37,073,003 40,412,708 40,412,708 0 0.0%

05 - STUDENT PERSONNEL SERVICE 3,713,726 3,925,810 3,925,810 (0) 0.0%

06 - STUDENT HEALTH SERVICES 3,463,631 3,984,500 4,088,200 103,700 2.6%

07 - STUDENT TRANSPORTATION 29,395,542 30,976,645 33,564,186 2,587,541 8.4%

08 - OPERATION OF PLANT 26,807,982 28,245,672 28,625,672 380,000 1.3%

09 - MAINTENANCE OF PLANT 8,456,703 8,865,443 8,865,443 0 0.0%

10 - FIXED CHARGES

(Unallocated STEP/LEVEL increases) 73,323,576 81,894,181 85,085,503 3,191,322 3.9%

12 - COMMUNITY SERVICE 917,936 1,010,501 432,360 (578,141) -57.2%

13 - CAPITAL OUTLAY 5,986,405 2,316,913 2,316,913 0 0.0%

GENERAL FUND Total 364,376,087 393,438,180 401,007,950 7,569,770 1.9%

FOOD SERVICE* 13,612,081 14,747,909 14,985,260 237,351 1.6%

RESTRICTED 16,826,900 16,418,431 15,774,431 (644,000) -3.9%

Grand Total 394,815,068 424,604,520 431,767,641 7,163,121 1.7%

OBJECT CODE

FISCAL YEARS

DESCRIPTION FINAL $ BUDGET BUDGET VARIANCE $ % CHANGE

GENERAL FUND

71 - SALARIES & WAGES 214,157,337 235,898,018 236,743,858 845,840 0.4%

72 - CONTRACTED SERVICES 44,695,962 49,282,772 51,917,472 2,634,700 5.3%

73 - SUPPLIES & MATERIALS 12,815,577 9,570,193 10,055,531 485,338 5.1%

74 - OTHER CHARGES 9,806,822 11,717,052 12,097,052 380,000 3.2%

75 - EQUIPMENT 6,045,719 1,515,370 1,547,940 32,570 2.1%

78 - FIXED CHARGES

(Unallocated STEP/LEVEL increases) 73,323,576 81,894,181 85,085,503 3,191,322 3.9%

79 - TRANSFERS 3,531,094 3,560,594 3,560,594 0 0.0%

GENERAL FUND Total 364,376,087 393,438,180 401,007,950 7,569,770 1.9%

FOOD SERVICE* 13,612,081 14,747,909 14,985,260 237,351 1.6%

RESTRICTED 16,826,900 16,418,431 15,774,431 (644,000) -3.9%

Grand Total 394,815,068 424,604,520 431,767,641 7,163,121 1.7%

21

19 20 21

19 20

*** PROPOSED ***

*** PROPOSED ***

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Attachment: Full-time Equivalent Staff

Note: School Nursing Services are provided by the Charles County Health Department (41 nurses: one at each school

and center, plus three supervisors).

FISCAL YEARS

DESCRIPTIONACTUAL

BUDGET

POSITIONS

BUDGET

POSITIONSFTE CHANGE

GENERAL FUND

01 - ADMINISTRATION 91.0 90.0 90.0 0.0

02 - MID-LEVEL ADMINISTRATION 275.5 297.6 297.6 (0.0)

03 - INSTRUCTION 2,026.8 2,192.7 2,208.7 16.0

04 - SPECIAL EDUCATION 587.2 641.0 641.0 0.0

05 - STUDENT PERSONNEL SERVICE 45.0 49.5 49.5 0.0

06 - STUDENT HEALTH SERVICES 0.0 0.0 0.0 0.0

07 - STUDENT TRANSPORTATION 18.0 31.0 31.0 0.0

08 - OPERATION OF PLANT 244.1 275.5 275.5 0.0

09 - MAINTENANCE OF PLANT 63.0 65.0 65.0 0.0

12 - COMMUNITY SERVICE 0.0 0.0 0.0 0.0

13 - CAPITAL OUTLAY 6.0 6.0 6.0 0.0

GENERAL FUND Total 3,356.6 3,648.4 3,664.4 16.0

FOOD SERVICE 116.0 135.3 135.3 0.0

RESTRICTED 109.6 122.5 118.5 (4.0)

Grand Total 3,582.2 3,906.1 3,918.1 12.0

19 20 21

*** PROPOSED ***

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EXPLANATORY PARAGRAPHS

REVENUE INCREASES

County Funding Request County funding requirements are subject to Maintenance of Effort (MOE) set forth in the

Maryland Annotated Code Education Article 5-202. Full-time equivalent enrollments increased

by 264.5 students, or 1.01 percent, from 26,314.5 the previous fiscal year.

To fully fund the operating budget necessities, the school system is requesting total funding of

$3.6 million. This request includes the MOE requirement of $1.9 million and an additional base

amount of $1.7 million, to avoid drastic budget cuts affecting educational programs and

personnel.

Funding also includes a one-time allocation, in the amount of $32,570, under COMAR

13A.02.05.03(2), for upgrades of the broadcast recording and television programming

equipment. This is a non-recurring cost is an exclusion from the maintenance of effort

calculations.

State Funding Request State revenues are based on changes in total enrollment, free-and-reduced meal enrollment

(FARMS), limited English proficiency enrollment, and county wealth. Charles County ranks

ninth out of 24 counties for total student enrollment and fifth out of 24 in total county wealth

(second in the state for property wealth and 16th for income wealth) with an increase of 6.3

percent compared to the prior year. State funding is highly variable and subject to change until

the legislative session ends in April.

Calculations for State Funding Foundation Program: The foundation program is the basic State education funding mechanism

for public schools, which ensures a minimum per pupil funding level and requires county

governments to provide a local match. The formula is calculated based on a per pupil foundation

amount and student enrollment. Enrollment for the formula is based on the prior year’s full-time

equivalent (FTE) enrollment count. Funding is allocated inverse relationship to county wealth (less

affluent local school systems, as measured by assessable base and net taxable income (NTI),

receive relatively more aid per pupil than wealthier school systems).

Geographic Cost of Education Index: This formula provides additional State funds to local

school systems where costs for educational resources are higher than the State average. Chapter

477 of 2015 made funding of the program mandatory rather than discretionary, contingent upon

full funding not being provided in the fiscal 2016 operating budget; since the Governor did not

release funds set aside by the General Assembly to fund the Geographic Cost of Education Index

(GCEI) at 100% in fiscal 2016, full funding became mandatory beginning in fiscal 2017.

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Compensatory Education Program: The Compensatory Education Program provides

additional funding based on the number of economically disadvantaged students. The formula

recognizes disparities in local wealth by adjusting the grants per eligible student by local wealth.

The formula is calculated based on 97% of the annual per pupil amount used in the foundation

program and the number of students eligible for free and reduced-price meals. The State share of

program cost is 50%, with the State paying no less than 40% of the funding for each local school

system.

Student Transportation: The State provides grants to assist local school systems with the cost

of transporting students to and from school. The grants consist of three components: regular

student ridership funds; special education student ridership funds; and additional enrollment funds.

The regular student ridership funds are based on the local school system’s grant in the previous

year increased by inflation. Local school systems with enrollment increases receive additional

funds. The special education student ridership funds are based on a $1,000 per student grant for

transporting disabled students.

Special Education: State aid for special education recognizes the additional costs associated

with providing programs for students with disabilities. Most special education students receive

services in the public schools; however, if an appropriate program is not available in the public

schools, students may be placed in a private school offering more specialized services. The State

and local school systems share the costs of these nonpublic placements.

The special education formula is calculated based on 74% of the annual per pupil foundation

amount and the number of special education students from the prior fiscal year. The State share of

program cost is 50% statewide with a floor of 40% for each local school system.

Funding for nonpublic placements is calculated separately from the Major State Aid calculations.

The costs for these students, who are placed in nonpublic day or residential facilities, are shared

by the local school system and the State. The local school system contributes an amount equal to

the local share of the basic cost of educating a child without disabilities plus two times the total

basic cost. Any costs above this are split 70% State/30% local.

Limited English Proficiency: The State provides grants based on non- and limited-English

proficient (LEP) students using a definition consistent with federal guidelines. The LEP formula

is based on 99% of the annual per pupil foundation amount, with the State providing funding for

50% of the program’s cost.

Guaranteed Tax Base Program: The Bridge to Excellence in Public Schools Act included an

add-on grant for jurisdictions with less than 80% of statewide per pupil wealth that contributed

more than the minimum required local share under the foundation program in the prior year. The

grant is based on local support for education relative to local wealth. The grant cannot exceed 20%

of the per pupil foundation amount.

Net Taxable Income Grants: Pursuant to Chapter 4 of 2013, State education aid formulas that

include a local wealth component are to be calculated twice, once using an NTI amount for each

county based on tax returns filed by September 1 and once using an NTI amount based on tax

returns filed by November 1. Each local school system then receives the higher State aid amount

resulting from the two calculations. The scheduled phase-in of the grants was delayed by one year

beginning in fiscal 2016. Fiscal 2018 grants were based on an 80% phase-in schedule; the grants

are fully funded beginning with fiscal 2019.

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State Revenue and Wealth Comparison Table

Fund Balance Transfer The use of fund balance relies on one-time funds for designated maintenance projects at schools,

such as asphalt repair, carpet replacement and school playgrounds. The school system has

operated in a deficit budget since FY 2010. Assuming no budget surplus in FY 2019, the

discretionary unassigned fund balance will jeopardize targeted reserves for best practices.

Food Service Meal Price Increase In accordance with House Bill 315 State Department of Education - Breakfast and Lunch

Programs - Funding (Maryland Cares for Kids Act) lunch prices for the 2020–2021 school year

will be reduced by 10 cents for eligible reduced-price meal students only.

This bill makes the State responsible for the student share of the costs of (1) reduced-price

breakfasts provided under the Federal School Breakfast Program by fiscal 2022 and (2) reduced-

price lunches provided under the National School Lunch Program (NSLP) by fiscal 2023.

The bill phases in this responsibility beginning with fiscal 2020. During the phase in period, the

state will pay school systems the reduction amount of the price. A local board of education or

participating nonpublic school is prohibited from charging a student who is eligible for a

reduced-price breakfast beginning in fiscal 2022 or a reduced-price lunch beginning in fiscal

2023, for any portion of the cost of a meal.

STATE REVENUE COMPARISON FY 2019 - 2021

Revenue for

Fiscal Year 2019

Revenue for

Fiscal Year 2020

Funding

Difference

Between FY 19 &

20

Funding %

Change

from FY 19

to 20

Preliminary Total

Funding for FY

2021

Funding %

Change

from FY 20

to 21

Preliminary

Addition to Base

State Funding

for FY 2021

GENERAL FUND

50 - STATE REVENUES

5030 - STATE-NONPUBLIC SPEC ED (1,194,373) (1,191,000) (3,373) -0.28% (1,191,000) 0.00% 0

5031 - STATE-FOUNDATION PROGRAM (111,700,280) (115,861,320) 4,161,040 3.73% (117,446,673) 1.37% 1,585,353

5032 - STATE-SPECIAL ED FORMULA (9,270,302) (9,189,021) (81,281) -0.88% (8,825,095) -3.96% (363,926)

5033 - STATE-TRANSPORTATION (11,276,556) (11,968,026) 691,470 6.13% (12,204,758) 1.98% 236,732

5036 - STATE-COMPENSATORY AID (34,227,033) (35,504,708) 1,277,675 3.73% (36,633,888) 3.18% 1,129,180

5041 - STATE-OUT OF COUNTY 0 (3,394) 3,394 (3,394) 0.00% 0

5044 - STATE-MEDICAID REVENUES (435,906) (1,008,000) 572,094 131.24% (1,008,000) 0.00% 0

5045 - STATE-LIMITED ENGLISH (2,860,066) (3,392,610) 532,544 18.62% (3,923,849) 15.66% 531,239

5046 - STATE-GUARANTEED TAX BASE (1,596,663) (2,137,264) 540,601 33.86% (791,257) -62.98% (1,346,007)

5048 - STATE-GCEI (3,685,811) (3,812,445) 126,634 3.44% (3,897,013) 2.22% 84,568

5050 - STATE-NET TAXABLE INCOME (5,612,105) (6,402,288) 790,183 14.08% (7,154,144) 11.74% 751,856

50 - STATE REVENUES Total (181,859,095) (190,470,076) 8,610,981 4.73% (193,079,071) 2,608,995

Grand Total (181,859,095) (190,470,076) (193,079,071) 1.37% 2,608,995

KIRWAN FUNDING

DESCRIPTION

Revenue for

Fiscal Year 2019

Revenue for

Fiscal Year 2020

Funding

Difference

Between FY 19 &

20

Funding %

Change

from FY 19

to 20

Preliminary Total

Funding for FY

2021

Funding %

Change

from FY 20

to 21

Preliminary

Addition to Base

State Funding

for FY 2021

GENERAL FUND

50 - STATE REVENUES

5060 - STATE-KIRWAN TEACHER INCENTIVE ELIGIBILITY 0 (2,819,200) (2,819,200) 0.00% 0

5061 - STATE-KIRWAN SPECIAL EDUCATION FORMULA 0 (2,239,026) (2,239,026) 0.00% 0

5062 - STATE-KIRWAN PRE-KINDERGARTEN 0 (1,162,379) (1,533,317) 31.91% 370,938

5064 - STATE- KIRWAN MENTAL HEALTH COORDINATOR 0 (83,333) 0 0.00% 0

50 - STATE REVENUES Total 0 (6,303,938) (6,591,543) 4.56% 287,605

Grand Total 0 (6,303,938) (6,591,543) 287,605

Total State Funding (196,774,014) (199,670,614) 1.47% 2,896,600

WEALTH TOTALS

Wealth or Fiscal

Year 2019

Wealth for Fiscal

Year 2020

Wealth

Difference

Between FY 19 &

20

Wealth %

Change

from FY 19

to 20

Preliminary Total

Wealth for FY

2021

Wealth %

Change

from FY 20

to 21

Preliminary

Wealth for FY

2021

County Wealth w/Sept Net Taxable Income (NTI) 10,591,086,127 11,001,371,219 410,285,092 3.87% 11,661,264,565 6.00% 659,893,346

County Wealth Per Pupil 406,022 418,073 12,051 2.97% 438,740 4.94% 20,667

Overall State Wealth 443,660,576,443 460,010,428,367 16,349,851,924 3.69% 482,791,633,636 4.95% 22,781,205,269

Overall State Wealth Per Pupil 515,402 532,992 17,590 3.41% 552,224 3.61% 19,232

Target Per Pupil Foundation Amount 7,065 7,244 179 2.53% 7,331 1.20% 87

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FY 2021 meal prices will increase for paying students. Breakfast prices will go up by 5 cents

and lunch prices by 10 cents. This increase is necessary to comply with The Healthy, Hunger-

Free Kids Act of 2010 requiring school systems set meal prices equal to the Federal

reimbursement rate for Free and Reduced Meals (FARMS). This act assures that Federal

reimbursement rates do not subsidize paying students. The following price meals will be

established for the upcoming school year.

School Level Type Paid Students Reduced Price

Students

Elementary Breakfast $1.35 $0.10

Lunch $2.80 $0.20

Secondary (Middle & High) Breakfast $1.50 $0.10

Lunch $3.05 $0.20

Restricted Funds All budgeted amounts are based on original proposals. In most cases, changes between fiscal

years are due to final allocations from authorizing agencies. Final grant allocations are usually

official in the month of September. Restricted funds are anticipated to decrease by $644

thousand from the previous year for a total of $15.7 million. The reduction is due to the sunset

of the Striving Readers ($900 thousand) and the Pre-Kindergarten Expansion grants ($100

thousand).

The program reductions will offset increases from the following grants: Title I – $294 thousand

(this includes carryover from the prior year) and School Safety - $62 thousand.

FTEs will decrease by four (4.0) with the proposed reductions in Striving readers (2.0) and Pre-

Kindergarten Expansion (2.0).

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MANDATORY COST INCREASES Charles County Public Schools (CCPS) considers mandatory costs (cost elements that are vital to

the operations of the school system) an essential part of the budget development process.

Mandatory costs include state mandates, contractual requirements, utilities, and insurance costs.

Bus Contracts Under Maryland Annotated Code § 7-804(b)(2)(i) CCPS may not operate a school vehicle for

longer than 15 years. The school system’s current operational bus fleet consists of 388 buses:

374 contractual buses and 14 buses owned by CCPS (six regular, five special needs two spare,

and one for training). The five CCPS special needs buses transport students daily to our-of-

county placements.

This request reflects recent contract modifications based on Consumer Price Index (CPI) and will

support an average retail price of $3.00 per gallon of gasoline. In addition, this request will

provide funds to replace 44 buses that have reached the 15-year limitation and three additional

buses to accommodate enrollment growth and school program needs. The additional buses

would support reduction of student travel times due to their program, number of students on the

route, and the location of their homes in relation to placement at their regional programs and out

of county non-public placements.

Teachers' Pension (SB1301) This budget request is required by the Budget Reconciliation and Financing Act of 2012 (Senate

Bill 1301/House Bill 1801). The teachers’ pension cost was shared between county and the

Board of Education between fiscal years 2013 through 2016. In FY 2017, the incremental

“normal cost" for teachers’ pension is the burden of the Board of Education. “Normal cost” is a

rate determined by the contributions that should have been paid for a period.

New Enterprise Resources Planning (ERP) Software Enterprise resource planning (ERP) is an application of managing core business processes

through software and technology, ERP business management software is a suite of integrated

applications that will collect, store, manage and interpret data from financial and human resource

activities. Annual software licensing fees are included in this request.

Maryland Association of Boards of Education (MABE) Insurance Premium Increase Founded in 1957, the Maryland Association of Boards of Education is a private, non-profit

organization dedicated to serving and supporting boards of education in Maryland. Members

benefit in numerous ways from participating in the MABE Insurance Trusts, the Group Insurance

Pool and the Workers' Compensation Fund.

This budget request reflects a 10 percent insurance premium increase for workers’ compensation,

liability and property.

Nurses’ Contract Funding includes estimated contract increases of 2.8 percent for benefits and wages. School

nursing services are provided by Charles County Health Department (41 nurses, one at each

school and centers, and three supervisors).

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COLLECTIVE BARGAINING ASSUMPTIONS

Reserve for Collective Bargaining This request is to establish a reserve for collective bargaining with the Education Association of

Charles County (EACC) and the American Federation of State, County and Municipal

Employees (AFSCME). The estimated reserve amount supports FY 2021 funding needs.

OTHER COST INCREASES

Teachers for Enrollment Growth Funding supports additional teachers based on anticipated student enrollment growth and to

reach a 25 to 1 ratio at all levels. Currently, the student-to-teacher ratio is 25 to 1 at grades K

through 5 and 27 to 1 for grades 6 to 12.

BUDGET REDUCTIONS

Kirwan Mental Health Coordinator Reclassification to Restricted Funds Pursuant to the Safe to Learn Act (Chapter 30) of 2018, funding from the Blueprint for

Maryland’s Future (SB1030) in FY 2020, established that each local school system appoint a

full-time mental health services coordinator staff position (§7-1 511 of the education article).

After the operating budget for FY 2020 was approved, CCPS received the Notice of Grant

Award (NOGA). This funding was determined to be a restricted grant and CCPS will reclassify

the funds to comply with reporting requirements.