Action Plan 2.0

Public Meeting of the School Reform Commission

February 20, 2014

The School District of Philadelphia

100% of students will graduate, ready for college and career

100% of 8 year olds will read on grade level

SDP will have 100% of the funding we need for great schools, and zero deficit

100% of schools will have great principals and teachers

Improve Student Learning

Develop a System of Excellent Schools

Identify and Develop Exceptional, Committed People

Become a Parent and Family-Centered Organization

Become an Innovative and Accountable Organization

Achieve and Sustain Financial Balance

1

2

3

4

5

6

Improve student learning

• PA core standards

• Flexible curriculum

• Instructional practices

• Coherent assessment system

1

Expand existinggood schools

Create new good schools

Transform poor-performing schools

Close poor-performing schools

Develop a System of Excellent Schools• Neighborhood school improvement ~ 80.0%• 12 existing Promise Academies 1.0%• 2 neighborhood District transformations 0.0%• 1-2 Renaissance charter conversions 0.6%

• Expansion of good neighborhood schools 0.0%• Expansion of selective admission schools 0.0%• Cost-neutral charter expansion 0.0%

• 3 new non-selective-admission high 0.2% schools

• Continued growth of SLA, Workshop 0.1%School, and Hill-Freedman• Moratorium on District closures this year 0.0%

• 4 charter schools in non-renewal process 0.0%

2 % of budget

Develop a System of Excellent Schools (continued)2

Neighborhood School Improvements

District-led turnarounds:Promise Academies

New, Non-selective High Schools

• Additional instructional support

• Early literacy• ELL and IEP supports• Counseling and

behavioral health• Keystone exam

support• Curricular materials• School climate• College and career

readiness • Improved safety• Improved buildings

• More instructional time

• Focus on reading and math

• Interim assessments and dedicated teacher review time

• Climate program• Summer institute for

teachers• More instructional

and leadership capacity

• Parent engagement

• September 2014• Lottery admission with

neighborhood preference

• ~1,500 students by September 2017

• Evidence-based• Competency-based,

high standards• Personalized• Youth development• Community-connected• Non-cognitive skills• Extended learning

Identify and Develop Exceptional, Committed People

• High support, high expectations

- Principal development- Teacher in-school coaching and

collaboration time• Recruit and retain the best talent

• Implement fair evaluation systems for everyone

3

Become a Parent- and Family-Centered Organization

Inform Serve

Listen Engage

4

Financial Report

Public Meeting of the School Reform Commission

February 20, 2014

The School District of Philadelphia

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Actual FY11 Adopted FY14

(in m

illio

ns)

State Operating Revenues City Operating Revenues Non-Tax Other Operating RevenuesFederal Operating Revenues State Categorical Federal CategoricalLocal and Private Grants

$2,970.5M

$2,687.4M

Combined Operating and Categorical Budgets

Since FY2011, the School District has had to operate with a cumulative three-year loss of over $790 million.

FY14 Adopted is $283M lower than FY11 Actual

Enrollment: 198,783 Enrollment: 201,300

From FY2011 to FY2014, the percentage of the District budget that could be spent on schools declined from 63% to 54%.

This year, the District only had enough resources to open schools with vastly reduced staffing and services

Debt Service Debt Service

Non-District Operated Non-District OperatedAdmin Admin

District Schools - Instructional & Operating (Mandatory)

District Schools - Instructional & Operating (Mandatory)

District Schools - Instructional &

Operating (Flexible) District Schools - Instructional &

Operating (Flexible)

ChartersCharters

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

SY2010-11 SY2013-14

(in m

illio

ns)

District Operating ExpendituresFY2011 Actuals Compared to FY2014 Adopted Budget

18%29%

54%

63%

4% 2%4% 4%

11%11%

Students� experiences in District schools have changed as the budget has diminished. Even with increased enrollment in some schools, staffing support and funding has declined.

FY2011

FY2014

School Enrollment: 508• Principal: 1 FTE• Instructional Staff: 41 FTE• Guidance Counselors: 2 FTE• Support Positions: 13 FTE• Non-Full Time Staff and Funding: $129,586• Total: 57 FTE

School Enrollment: 660• Principal: 1 FTE• Instructional Staff: 36.3 FTE• Guidance Counselor: 1 FTE• Support Positions: 10 FTE• Non-Full Time Staff and Funding: $112,432• Total: 48.3 FTE

Since May 2013, $112 million in additional revenues enabled the District to restore some services to schools. However, accelerating costs continue to squeeze the District.

$259 $280 $276

$129 $135 $133$74 $55 $64

$412 $364 $385

$1,085$886

$986

$592

$675$702

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

FY13 Actuals FY2014 Adopted (May 2013) FY2014 Projection (Dec. 2013)*

FY14 Adopted Cuts and Partial Restorations

Debt service Other

Central administration School Pupil/Family & Operating Services

School Instructional & Instructional Support Services Charter payments

* Includes $112 million in additional revenues used to partially restore Adopted Budget cuts

The District projected to close FY2014 with a shortfall of ($28.7M). Gap closure mechanisms have reduced the current projected year-end shortfall to ($14.2M)

Charter SchoolPayments

Special Education

Transportation

School BasedPositions

Food Services

Indirect Costs

Losses/Judgements& Other

ProjectedAdditional Revenues

$3.9

Gap ClosureMechanisms

$14.5

$0

$5

$10

$15

$20

$25

$30

$35

Projected OverExpenditures

Projected Shortfall as of12/31/13

Gap ClosureMechanisms

Remaining ProjectedShortfall as of 2/20/14

(in m

illio

ns)

Projected FY2014 Ending Balance

-$28.7

-$14.2

-$32.6

Further risks to the FY 2014 Budget that will be closely monitored include:

Revenues Expenditures

• Real Estate Taxes • Charter Enrollment/Payments

• Parking Authority Revenue • Utilities/Snow Removal Costs

• Building Sale Revenue

• Full Debt Service Reimbursement

To ensure the maintenance of services, the District must receive an additional $80 million in revenues. To begin the process of transforming our schools, the District will need another $240 million.

$2,546 $2,546 $2,546

$80 $80$240

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

FY2014 Current Projection (Dec. 2013) FY2015 (Same Service Level) FY2015 (Incremental Improvement)

(in

mill

ion

s)

FY14 Projected Expense Amount required for Maintenance of ServicesAmount required for beginning Transformation

$320M increase over FY2014 levels

Action Plan Strategies Activities

Strategy 1: Improve Student

Learning

• Robust early literacy program• School climate programs • Limited credit recovery • Supports to English Language learners and students with IEPs• Additional counseling, mental, and behavioral health support • Additional support to students for Keystone exams• Updated curricular materials• College and career readiness programs (e.g., PSAT, SAT, AP, IB, and dual enrollment)• Modest increase in discretionary spend for schools

Strategy 2: Develop a System of

Excellent Schools

• More expansions, replications, and creation of new schools• Strengthened and expanded career academies • Expanded CTE programming• Improved safety and physical infrastructure• 1-5 Renaissance Charter conversions• Expansion of top charter performers

Strategy 3: Identify and Develop

Exceptional, Committed People

• Additional instructional activities• Strengthened teacher and principal PD• Principal residency program• Development of internal leadership pipeline• Additional non-instructional supports for schools

Strategy 4: Become a Parent- and

Family-Centered Organization • Improved student enrollment process• Improved customer service and training for parents

Strategy 5: Become and Innovative

and Accountable Organization

• Upgraded student information system• Improved data processing and reporting

Strategy 6: Achieve and Sustain

Financial Balance• Increased capacity to leverage partnership support

$320 million in additional revenues would help the District achieve its

strategies for improved student outcomes as outlined in Action Plan v2.0.

The FY2015 Budget process will follow the below timeline.

Action Date

Financial Update 2/20/14

FY 2015 Lump Sum Statement 3/20/14

City Council Budget Hearing 4/14/14

FY2015 Budget Hearings 4/14/14 - 5/14/14

FY2015 Budget Adoption 5/29/14