Texas Budget ShortfallTexas Budget Shortfall

The Impact on Texas Public Education and NISD

Northwest ISDNorthwest ISD

15,537 Students 1,610 District Employees1,390 Contract EmployeesSchools:

14 Elementary Schools4 Middle Schools 3 High SchoolsDisciplinary Alternative Education PlacementDenton Creek

Accountability RatingsAccountability Ratings

Elementary SchoolsSamuel Beck Elementary School Kay Granger Elementary School Haslet Elementary School W.R. Hatfield Elementary School  J. Lyndal Hughes Elementary SchoolJustin Elementary School Lakeview Elementary School O.A. Peterson Elementary School Prairie View Elementary School Sendera Ranch Elementary School Seven Hills Elementary School

Middle SchoolsMedlin Middle School

TEA Exemplary Campuses

Elementary SchoolsClara Love Elementary School Sonny & Allegra Nance Elementary School Roanoke Elementary School

Middle SchoolsChisholm Trail Middle School Gene Pike Middle School

High SchoolsByron Nelson High School Northwest High School

TEA Recognized Campuses

2010 College Preparatory Honors2010 College Preparatory Honors

SAT Scores

1009 NISD 989 State 1017 National

National Merit Semi-Finalist - 1Commended Scholars - 7National Hispanic Scholars - 7

ACT Scores 22.5 NISD 20.8 State 21 National

Budget Drivers Budget Drivers

Normal Cost Increases:– Additional Educators for Growth– Utilities– Transportation– Maintenance – Inflation factors

THE PROBLEMTHE PROBLEM

State budget outlook is a shortfall range anywhere from $12 billion to upwards of $25 billion

– Current biennium shortfall $4 billion– Stimulus and ($6.38 b) and Surplus ($5.67 billion)

no longer available $12.05 billion– Tax collections are down $1.5 billion– Business tax of 2006 for property tax reductions

has fallen short $500 million– State student enrollment grows by 80,000

annually $2.5 billion– Lower value growth in property values $4 billion

Total: $24.5 billion

State Budget Reduction ScenariosState Budget Reduction Scenarios (*House Version – as of January 21, 2011) (*House Version – as of January 21, 2011)

Proration: Under-fund state aid on a per-wealth basis

-$34,232,473 millionCap target revenue

-$36,985,555 millionCreate a 14 percent reduction to total

district funding-$19,438,825 million

State Shortfall’s Potential State Shortfall’s Potential Budget Impact on NISDBudget Impact on NISD

Shortfall to the 2011-2012 budget of $34.2 million

24% of our General Fund Budget

Low Hanging Fruit – Low Hanging Fruit –

Increasing building enrollment capacityMaximize use of

– High School Allotment– ARRA Funding– SHARS Funding– Tech Allotment– Federal Funding– Eligible Bond Appropriations

plucked, processed, and preservedplucked, processed, and preserved

Fruit Shaken from Top Branches - Fruit Shaken from Top Branches - District Budget EfficienciesDistrict Budget Efficiencies

2009-2010 – $1.7 million culled

2010-2011 – $2.5 million culled

2011-2012 – $4.7 million identified over revenue

District Efficiency RecognitionDistrict Efficiency RecognitionThe Financial Allocation Study for Texas

(FAST) Report.Commissioned by the Texas Legislature.Identifies school districts that operate

efficiently – achieving strong academic performance while keeping costs low.

Identifies cost-effective practices that promote academic progress.

Northwest ISD – 4.5 Stars – Low cost, high efficiency

NISD4.5

We can either complain that We can either complain that rose bushes have thorns – or rose bushes have thorns – or rejoice that thorn bushes have rejoice that thorn bushes have roses.roses.

The The Hurry Up and WaitHurry Up and Wait

Budget Development ProcessBudget Development Process

Hurry Up and WaitHurry Up and Wait

Create two initial budget scenarios– Scenario I

No significant changes in Texas School Finance funding

– Scenario IIAnticipate proration with $34.2 million loss

Remain poised to respond to 82nd Legislative Session

THE GOALSTHE GOALS

Present a balanced budget for 2011-2012.Institute reductions in a manner that has

minimal impact on quality of teaching for students and staff.

Maximize growth position increases to ensure a position for staff in 2011-2012.

TO ACHIEVE OUR GOALSTO ACHIEVE OUR GOALS

We will need to separate issues from people.

Be open and honest in our dialogue.Be willing to discuss alternative methods

of providing services.Be willing to accept the accountability that

goes with making the tough decisions.

Budget Scenario IBudget Scenario I

2011-2012 Budget – No significant changes in Texas School

Finance funding.– Normal budget process to cull initial $4.7

million of identified needs over anticipated revenue.

Scenario II Scenario II (The $34.2 million dollar hole)(The $34.2 million dollar hole)

Three steps involving Teachers/Staff, Principals and DLT members– Step One: Awareness of the need– Step Two: Explore items for possible

reduction– Step Three: Develop final recommendation

We believe:

1. kids come first.

2. continuous improvement is critical for success of the Northwest Independent School District.

3. the success of each student is the shared responsibility of students, families, schools, and communities

4. environment influences learning.

The best and most sought-after school district where every student is future ready:

– Ready for college

– Ready for the global workplace

– Ready for personal success

Northwest ISD, in partnership with parents and community, will provide all students a premier education, preparing them to be successful, productive citizens.

Relentless ResolveRelentless Resolve