fy15 preliminary budget recommendation finance update presentation to school committee february 5,...

FY15 Preliminary Budget Recommendation

Finance Update

Presentation to School CommitteeFebruary 5, 2014

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BOSTON PUBLIC SCHOOLS Finance

Summary

Thanks to the City of Boston, our general fund target appropriation for FY15 rose $35.9 million to $973.3 million, a 3.8% increase compared to FY14

This comes at a time when other City departments are being asked to submit lower budgets than in FY14

However, we continue to face a challenging budget situation in FY15 due to rising costs and a drop in federal and state funding, and we are unable to present a fully balanced budget at this point

We have increased by $5 million the resources allocated to schools through Weighted Student Funding (WSF)

The central office budget is not yet finalized, and addressing the remaining challenge will require changes in central office services

Our efforts to fully balance the budget will continue over the next few weeks as teams of school-based and centrally based staff examine the budget proposal and recommend cost reductions

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Agenda

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What this budget accomplishes

School funding overview

Budget challenges

How we have begun to meet the financial challenge

Budget timeline


We are introducing a new school choice process…

We are moving forward deliberately to implement the new process of student assignment, including the recommendations from the External Advisory Committee:

More K-8 pathways

More inclusive and dual language program options

Overlays for English Language Learners (ELLs) and Special Education to provide services closer to home

The associated costs of these changes – some anticipated, some not – are built into the school funding process through enrollment projections and start-up costs for new classrooms

We are also working toward producing a Facilities Master Plan

General fund costs for the facilities changes approved in November and December 2013 add up to approximately $1.6 million in FY15

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…preparing to implement the Common Core standards and PARCC assessments…

$1 million in equipment and another $1 million in upgrades to technology infrastructure in preparation for the online PARCC assessments*

5* PARCC: Partnership for Assessment of Readiness for College and Careers

…renewing our investments in technology to support teachers, families, and students…

$1.2 million to support Laptops for Learning

$675,000 for continued use of the Student Information System


…extending hiring autonomy to all schools to hire qualified, diverse candidates early…

$6.1 million to make our early hiring initiative a success

$400,000 to support hiring diversity

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…investing in upgrades to our facilities…

an increase of $1 million to meet deferred maintenance needs


…supporting Extended Learning Time (ELT) in schools across the district…

$2.75 million for ELT at current and former turnaround schools and $3.5 million for ELT at other BPS schools*

$1.4 million for Acceleration Academies during school vacations

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…and making additional investments in services for some of our highest-need students.

$3.2 million for students with Emotional Impairment

$5 million for English Language Learners in grades 6-12

$1.5 million for inclusion specialists in 26 schools


Agenda

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Budget challenges


Budget timeline


Sources of school funding

1. Weighted Student Funding $452M

2. Special programs (non-WSF) $28M

3. Title I funding $14M

4. Standard allocations built into school budgets $22M (nurses, special education coordinators, and food services staff)

5. Rules-based soft landings $5M

6. Buybacks for Autonomous Schools $2M

7. Additional adjustments1 $4M

Total: $528M

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1Additional adjustments include EEC/ELC supplements and other non-rules-based allocations

Notes: These figures do not include the school services that are budgeted centrally. All figures are current as of January 31st and may change as the budgeting process continues.


Our starting point is to fund the needs of students through Weighted Student Funding (WSF)

Students receive a per-pupil allocation that is weighted based on certain characteristics:

Grade level

Program (e.g., English Language Learners, Special Education, Vocational Education)

Student characteristics (e.g., poverty)

Academic performance (e.g., high risk)

Schools receive a minimal foundation budget plus the sum of

the allocation for each student

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Type WeightFY15

Funding

Base weight 1.0 $3,923

High Risk (Grade 9) 0.2 $785

ELL (Grade K0-5, ELD Level 1-3) 0.09 $353

Student with Disabilities: Low Severity (Resource Room)

1.0 $3,923

Student with Disabilities: Autism

4.3 $16,868

Example weights:


We have reviewed and updated these weights to best reflect student needs

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Reduced weights for students with disabilities in early childhood classes and

PTC classes to reflect appropriate staffing models

Reduced weights for students with disabilities in early childhood classes and

PTC classes to reflect appropriate staffing models

Reduced weight for Emotional Impairment (EI) due to change in

funding model (overall funding for EI is

increasing)

Reduced weight for Emotional Impairment (EI) due to change in

funding model (overall funding for EI is

increasing)

Increased weights for ELLs at ELD levels 1-3 in grades 6-8 and

9-12

Increased weights for ELLs at ELD levels 1-3 in grades 6-8 and

9-12

Total amount:

$452,142,838

Total amount:

$452,142,838

WSF reflects our principles as a district


Principle Description

Student focus Provides resources based on students, not on buildings, adults, or programs

Equity Allocate similar funding levels to students with similar characteristics, regardless of which school they attend

Transparency Easily understood by all stakeholders

Differentiation based on need

Allocate resources through a comprehensive framework that is based on student needs

Predictability School allocation process is predictable and is structured to minimize school-level disruption

School empowerment

Empowers school-based decision-making to effectively use resources

Alignment with district strategy

Supports the Acceleration Agenda, our five-year strategic plan

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Our current enrollment is close to last year’s enrollment, but lower than we had projected

Projected Enrollment: 58,284

Actual Enrollment (as of Dec. 2013): 56,735

District Enrollment Variance : 1,549 (-2.66%)

Projected Enrollment: 58,284

Actual Enrollment (as of Dec. 2013): 56,735

District Enrollment Variance : 1,549 (-2.66%)

This variance is particularly driven by a leveling off of our early childhood enrollment

We were prepared to welcome 1,024 new students in grades K0-2 this year, in line with the increases we have seen since FY11

Instead, we have seen an increase of 382 students in these grades (as of Dec. 2013)

3 year

Change % Change

Gen Ed 615 5.5%

SEI 115 4.1%

SPED 318 24.2%

Total 1,048 6.8%

Enrollment Changes in K0-2, FY11-FY13

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There was a great deal of variation in projections between schools in FY14

Some schools actually enrolled significantly more students than

projected

Some schools actually enrolled significantly more students than

projected

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$13.3M over allocation to schools beyond a 5%

variance

$13.3M over allocation to schools beyond a 5%

variance


Under-enrolled classes place pressure on a school’s budget

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Example: full vs. under-enrolled 6th grade class

Max. Class Size

Enrollment

Per-Student Amount

WSF Allocation

Classroom Cost

Difference

Class 1

28 26

$5,491.77 $142,786.02

$133,023.00

$9,763.02

Class 2

28 20 $5,491.77 $109,835.40 $133,023.00

($23,187.60)

The cost of empty seats places particular pressure on small schools with fewer classrooms

Larger schools have more of an opportunity to make up for under-enrollment in some classes with full enrollment in others


A number of factors contributed to changes in enrollment projections in FY15

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Key Factors:

Corrections to FY14 enrollment projections

Home Based school choice plan

SPED and ELL overlays

K-8 expansions

Roll-out of inclusive programs


We have worked with school leaders to address budget challenges based on lower projections

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In January, representatives from multiple departments met with school leaders to review their budgets

These “budget collaboratives” included representatives from:

Academics (Network Superintendents)

Budget

Office of English Language Learners

Office of Human Capital

Office of Special Education and Student Services

Budget collaboratives helped school leaders meet their students’ needs within their given WSF allocations


What is a soft landing? In general, we expect schools to meet their needs using their

WSF allocations

In some cases, however, schools may require additional allocations because of extraordinary circumstances

In these cases, the district may provide a “soft landing” (one-time funding)

Guiding principles on soft landings:

This funding is a temporary measure to address particular challenges, not a permanent allocation

The situations that may require soft landings change from year to year as the context changes

All soft landings are rules-based, and rules are applied uniformly across all schools

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Soft landings in FY15

For FY15, $5 million in rules-based soft landings have been issued to schools in 6 categories:

1. Supports for under-enrolled classrooms due to district priorities (SPED and ELL Overlays, inclusion rollout, programs being phased out)

2. Clinical/administrative supports for substantially separate classes for emotional impairment

3. Supports for Primary Transition Classes (PTC classes) being phased out

4. Supports for under-enrolled classes for Students with Interrupted Formal Education (SIFE students)

5. Supports for inclusion start-up for schools implementing formal K2 inclusion for the first time

– English as a Second Language (ESL) supports for English Language Learners in general education seats [currently in progress]

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BOSTON PUBLIC SCHOOLS

We continue to send more resources to schools through WSF than many other large urban districts

Source: Georgetown University, Edunomics Lab, Nov. 2013 20


% of School Department Budget (General Fund + Grants)

We are increasing our total WSF allocations to schools by over $5 million in FY15 compared to FY14

53% of the FY14 general fund budget is going directly to schools


Agenda

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Budget challenges


Budget timeline


Budget challenge

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Despite a 3.8% increase in the General Fund appropriation and identified cost reductions, the budget challenge caused

by increased costs and new initiatives remains at ~$14M

Remaining challenge

~$60M

~$13M

~$36M

~$55M

~$14M

~$32M

DRAFT_2.4.14

$0

$50

$100

$150

$200

$250

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15


State requirements on funding for charters have led to decreases in net Chapter 70 for BPS…

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Total Chapter 70 aid for

Boston

Total Chapter 70 aid for

Boston

Net state aid for BPS

Net state aid for BPS

*

*FY15 figures are estimates based on the Governor’s budget proposal


…and the portion of BPS’s General Fund budget covered by net Chapter 70 has declined

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With the reduction in state funding, the City has been responsible for funding an increasing percentage

of the BPS budget

With the reduction in state funding, the City has been responsible for funding an increasing percentage

of the BPS budget

11%*

*

*FY15 figures are estimates based on the Governor’s budget proposal


We also project a decline of approximately $32 million in external funds

Race To The Top (15,409,816) Grant expires

Title I (3,504,430) 10% reduction

Title IIA (881,653) 15% reduction

Title III (78,739) 3% reduction

IDEA (540,286) 3% reduction

School Improvement Grant (Burke) (582,216) Grant expires

SIG Sustainability (576,972) Grant expires

E-Rate, Priority 2 (3,000,000) 100% not funded

Non-recurring one time revenue (7,270,597) 100% reduction

National Summer Learning Assoc. (195,000) Grant expires

Total -$32,039,709

FY2015 Reduction

Grant Comments

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Staffing for our higher projected enrollment contributed to our costs in FY14

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The rising costs of contracts for staff also contribute to our cost increases

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Since FY09, average salaries for general education teachers have risen by 16%

Increases to compensation and benefits will cost the district ~$37 million in FY15

$76,751$76,751

$88,682$88,682


Despite these challenges, our budget invests in a number of new key priorities

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Early hiring: $6.1M

Facilities Master Plan: ~$1.6M

School technology infrastructure: $1M

Increase in deferred maintenance: $1M

PARCC: ~$1M

Building an accountability system for school quality: $500K

Superintendent search process: $125K


Agenda

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Budget challenges


Budget timeline


Our strategic approach

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Our budget challenge provides the opportunity to realign our work to best support schools

Approximately $55 million of cost reductions have been identified

The identified reductions fall largely into seven categories:

(~$16.6M) Central office reorganization, consolidation, and reduction of services

(~11M) Adjustments to enrollment projections

(~$10M) Changes to transportation services and delivery

(~$5.7M) Reductions in non-direct services for Special Education

(~5M) Decrease in health insurance premiums

(~4M) Strategic reductions in grant-funded services

(~$1.6M) Consolidation of program offerings to match projected student enrollment


Despite these strategic reductions, we are still facing a $14 million budget challenge

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We have been engaging in deep discussions on how to increase efficiency and reduce costs

Addressing the remaining challenge will require changes in central office services

School budgets have already been set through WSF and will not be reduced

We will convene budget teams of school-based and central office staff to continue identifying opportunities for cost savings and reductions in services

We will present these recommendations at an upcoming meeting


Agenda

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Budget challenges


Budget timeline


We look forward to discussing the budget with you in a variety of forums

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Dec 13 School budgets released

Jan 8 - 17 Budget collaboratives with schools

Jan 20 - 31 Probable Org

Feb 5 Superintendent’s recommended budget to School Committee

Feb 26 School Committee meeting

Mar 4 Budget hearing (6 pm)

Mar 12 Budget hearing (5 pm) and School Committee meeting (6 pm)

Mar 18 Budget hearing (6 pm)

Mar 26 School Committee votes on BPS budget


For more information

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A number of documents are already available on our website:

Budget Presentation

FY15 Budget Memo

FY15 Allocations

FY15 WSF School-by-School comparison

WSF Templates for all schools

Website: bostonpublicschools.org/budget

Email: [email protected]

Twitter: #bpsbudget

fy15 preliminary budget recommendation finance update presentation to school committee february 5,...

Documents