Portland Public Schools Proposed Budget

APRIL 4, 2017

Agenda• Guidingprinciplesforbudgetandstaffing

• Creatingabalancedbudget• Resources• Balancingthebudget• CentralOffice/Non-Schoolbudgetreductions

• Staffingbudgetreductions

• Reallocationofresources• NextSteps

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BudgetPriorities•  Educationalequity•  Schoolscontinuetoreceiveequityadjustmentsinstaffingallocation

•  Learningandachievement•  Protectingcoreprogram

•  K-8staffingratiosmaintainedatcurrentlevels•  Supportingfocusandpriorityschools• Maintainingfundingforspecialeducation

•  Studenthealthandsafety•  Enhancedfundingforenvironmentalprojects• Maintainingtransportationfunding

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ProposedBudgetSummaryPPSGeneralFundBudget:$616.3millionStateSchoolFundrevenueassumption:$8.1billionK-12statebudget.AlignstoCOSAandotherlargeOregonschooldistrictassumptions.4%contingencytocushionforuncertainty.Budgetedspendingisanetreductionwithafocusonstrategicre-prioritizationinareascriticaltostudentlearningandsuccess.

Reductions

•  Schoolstaffing

•  Non-schoolFTE

•  Contracts,utilities,andconsumables

Reinvestment/Reallocations

•  Curriculum,literacy,andassessment

•  Communityengagement

•  Healthandsafety

•  Newschoolsbuiltusing2012bonds

•  Schoolstaffing4

Creatingabalancedbudget

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=Requirements(Spending+PlannedReserves)

Resources(Revenues+BeginningFundBalance)

StateSchoolFund

LocalOp1onPropertyTax

Grants,Contribu1onsand

Other

• $fromState• PropertyTax(underMeasure5limits)

• DoesnotimpactStateSchoolFund$

• Federalgrants• Contribu1ons• Otherrevenues

Instruc1on

Instruc1onalSupport

Administra1ve&Other

• Salaries&Benefitsforthoseworkingdirectlywithstudents

• Materials,Supplies&Equipment

• Salaries&Benefitsforthosesuppor1nginstruc1on

• Materials,Supplies&Equipment

• Salaries&Benefits• OtherSupplies&Services• Reservesperboardpolicy

GeneralFundRevenueSources

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StateSchoolFund • Statefundingpressures-$1.7billionshortfallforbiennium(intheFebruaryforecast).NextforecastdueMay16,2017.

• AligningourBudgetwithCOSAat$8.1billion(higherthanco-chairbudgetof$7.7billion)

• Uncertaintyremains

• Allocating4%toreservestocushionforuncertainty

Sufficientreservesarecriticalgivenfundinguncertainty

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BudgetedGeneralFundReserves

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Balancedproposedbudget2017-18

GeneralFund Forecast BudgetUSDinMillions 2016-17 2017-18 Change

BeginningBalance $37.8 $19.9

TotalRevenue 565.5 596.4TotalResources 603.3 616.3 2%

TotalExpenses 583.4 591.4Con1ngency - 24.9TotalRequirements 583.4 616.3 6%

EndingBalance $19.9 $-

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BudgetPrioritiesandAdditionalInvestment•  Educationalequity•  Communityengagement$0.3million

•  Learningandachievement:$3.5million

•  $0.9millionforcurriculumdevelopment•  $0.9millionforliteracycoaches•  $0.4millionforliteracyassessments•  $0.5millionforK-8staffingsupport•  $0.8millionfordirectstaffingallocationtoschools•  Studenthealthandsafety:$5.7million

•  $4.3millionforcustodiansandmaintenance•  $1.0millionfornewschoolcustodiansandmaintenance•  $0.4millionforemergencies 10

ProposedExpendituresbyAccount

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Salaries53%

Benefits26%

Property Services & Transportation

5%

Textbooks, Software & Library resources

1%

Instructional Services1%

Other Materials & Services

5%

Charter Schools & Tuition

4%

Transfers1%

Operating Contingency4%

ProposedExpendituresbyFunction

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BudgetConsiderations• AllPPSunioncontractsareupforbargaininginthecurrentyear

• Teachercontractexpiredin2016• Assumptionsaboutsalariesandbenefitsmaychangebaseduponresultingcontractagreements

• Federalfundinguncertainty• RisingPERSretirementcosts

• Statepolicymandates

• Flatfundingfornon-personnelcosts13

CentralOffice/Non-SchoolBudgetReductions

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• StaffingReductions–58.8FTE,$5.0million

• TeachersonSpecialAssignment(TOSA)–7FTE,$0.6million

• Eliminateorreduce20ContractsforServices-$1.7million

• Savingsfromopenpositionsandmedicalinsurancebenefitscostsavings-$3.5million

• Othercostreductionsinmaterialsandservices-$5.6million

TotalCentralOffice/Non-SchoolReductions$15.8million;58.8FTE

CentralOffice/Non-SchoolSpendingReductions

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USDinMillionsCentralOffice/Non-SchoolReductionsbyActivity Reduction

%ofTotalReductions

Administrativeandoperationalstaff 4.2$ 27%Vacancies 3.0 19%Instructionandstudentsupportstaff 2.2 14%Transportationandutilities 2.1 14%Contracts 1.7 11%DBRAC 1.0 6%Professionaldevelopment 0.9 6%Suppliesandconsumables 0.6 4%Overtimeandtemporarystaffing 0.1 1%TotalReductions 15.8$ 100%

Schoolstaffingupdate

• Initialschoolreductionstotaled$14million•  $1.3millionofnon-schoolreductionsareallocatedbacktoschools

• PrincipalscompletedstaffingallocationinputintostaffingmanagementtoolonApril3rd

• HumanResources,ServicePlanningandBudgetTeamsarereviewingstaffinginputstoverifyadequatecoreprogramstaffing

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ProposedStaffing2017-18•  Staffingratiosusestudentenrollmenttocalculateproposednumberofstaffinschools

•  Certainindividualschoolsexperiencedareductioninstaffingasaresultofprojectedlossofstudents

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2016-17BudgetedStudent

Enrollment

2017-18ProposedStudent

Enrollment

StudentEnrollmentIncrease(Decrease)

K-5 13,960 13,971 11K-8 13,623 13,481 (142)Middleschool 6,559 6,545 (14)Highschool 11,858 12,015 157

StaffingRatios

*RatiorelatedreductioninFTEincludesassociatedequityallocation

+Includesalternativeschools18

GradeLevelNumberofSchools+

2016-17BudgetedRaTo

2017-18ProposedRaTo

ReducToninFTE*

K-5 31 25.80:1 27.00:1 22.16

K-8 27 24.00:1 24.00:1 N/A

MiddleSchool 11 24.75:1 26.00:1 13.72

HighSchool 10 21.63:1 23.40:1 47.02

Total 76 82.90

NetImpacttoSchools

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SchoolStaffingChanges Impact($inMillions) FTEChangestoFTEAllocationsFTEReductions(netofinitialset-aside) (14.0)$ (137.7)K-8SchoolSupport 0.5 5.0DirectAllocationtoSchools 0.8 8.0

NetChangestoFTEAllocations (12.7)$ (124.7)

LostRevenue(backfillingwithGeneralFunds)P.E.Grant 0.3$ 2.6TitleI 0.8 7.5DART 2.2 22.0Other(e.g.,Mentoring) 0.2 2.0

TotalLostRevenue 3.4$ 34.1

HighSchoolMedianClassSizes–CoreClasses

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PortlandPublicSchoolsRooseveltHighSchool 19:1JeffersonHighSchool 20:1ClevelandHighSchool 22:1FranklinHighSchool 23:1GrantHighSchool 23:1MadisonHighSchool 23:1WilsonHighSchool 24:1LincolnHighSchool 24:1BensonPolytechnicHighSchool 26:1

OtherLocalPublicSchoolsReynoldsHighSchool 24:1DavidDouglasHighSchool 26:1MilwaukieHighSchool 26:1PutnamHighSchool 27:1GladstoneHighSchool 28:1ParkroseHighSchool 28:1CentennialHighSchool 29:1GreshamHighSchool 30:1ClackamasHighSchool 30:1OregonCitySeniorHighSchool 30:1SamBarlowHighSchool 31:1

Source:OregonDepartmentofEducation-2016data

Reinvestment$9.7millionofCentralOffice/Non-SchoolReductions

•  Additionalsupportforschools=$1.3million

•  Facilities,Maintenance&Transportationoperationalrestructuring=$4.3million

•  Newschoolmaintenanceandsupport=$1.0million

•  Curriculumdevelopment=$0.9million

•  Literacycoachesandassessments=$1.3million

•  Staffingrestructure=$0.5million

•  Emergencysetaside$0.4million

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TotalCentralOffice/Non-SchoolReinvestment=$9.7million

FundingCriticalNeeds

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CentralOffice/Non-SchoolReductionsImpact

($inMillions) FTEStaff (5.0)$ (58.8)RemoveVacancyAllowance (3.0) -ContractsandOther (7.8) -

TotalReductions (15.8)$ (58.8)

CentralOffice/Non-SchoolAdditionsCommunityEngagement 0.3$ -CurriculumDevelopment 0.9 -LiteracyCoaches(CurriculumAdoption) 0.9 10.0LiteracyAssessments 0.4 1.0ComplianceOfficer 0.1 1.0LegalAssociate 0.1 0.8BuildingMaintenanceandCustodians 4.3 25.0OperationsandMaintenance-NewSchools 1.0 12.0EmergencyExpenditures 0.4 -

TotalCentralOffice/Non-SchoolAdditions 8.4$ 49.8

NetImpacttoCentralOffice/Non-School (7.4)$ (9.1)

SchoolAdditionsK-8SupportandDirectAllocation 1.3$ 13.0

TotalSpendingImpact (6.1)$ 4.0

SummaryImpact

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ReductionsAmount

($inMillions) % FTE %CentralOffice/Non-School (15.8)$ -7.0% (58.8) -7.6%School (14.0) -3.5% (137.7) -4.9%

TotalReductions (29.8)$ -5.0% (196.5) -5.5%

ReinvestmentAmount

($inMillions) % FTE %CentralOffice/Non-School 8.4$ 4.2% 49.8 6.5%School 1.3 0.3% 13.0 0.5%

TotalReinvestment 9.7$ 1.6% 62.8 1.8%

NetImpactAmount

($inMillions) % FTE %CentralOffice/Non-School (7.4)$ -2.8% (9.1) -1.2%School (12.7) -3.2% (124.7) -4.5%

NetGeneralFundImpact (20.1)$ -3.4% (133.8) -3.7%

PrioritiesifStateRevenuesover$8.1Billion

• Additionalstaffingforschools

• Restore1pointreductioninequityallocationtoElementary,K-8,andMiddleSchools

• Accelerateprogressonhealthandsafetyinitiatives(leadpaint,radon,others)

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NextSteps• CommunityListeningSessionApril11th5pmatMadisonHS

• ListeningSessionApril25th5pmatBESC

• ListeningSessionMay9th5pmatBESC

• BoardworksessionMayTBD

• BudgetconsideredforapprovalbyBoardMay23rd

• BudgethearingscheduledforJune13th• BudgetconsideredforadoptionbyBoardJune13th

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