Superintendent's Proposed Budget
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Cary, North Carolina SUPERINTENDENT’S PROPOSED BUDGET BUDGET FOR FISCAL YEAR JULY 1, 2017 THROUGH JUNE 30, 2018 Table of Contents Introduction Organization 1 Budget at a Glance 25 Board of Education Overview of where funds originate and where 26 Board’s Strategic Plan funds are spent. 28 Organization Charts 33 Budget Policies 6 Budget Development Includes a summary of how the budget is 37 Fiscal Accountability developed and a list of potential risks. 39 Budget Administration & Management Process 41 Fund Balance 11 Membership Data Information on student membership with historical data. Financial 12 School Data 43 Revenues Breakdown of schools by grade and school 49 Budget by Object Code calendar as well as new schools opening and calendar changes in the upcoming school year. 55 Staff Budget 57 Changes in Staff 13 Per Pupil Comparison Compares the Wake County Public School Business Cases System’s ranking within the state and nationally. 63 Introduction 14 Budget Changes by Category 65 Growth Displays an overview of proposed budget 100 Program Continuity changes by category. 116 Inflation 118 Legislative Impact 15 Deferred Needs Shows a list of business cases considered but 128 Removal of Prior Year One-Time Costs not included in the proposed budget. 131 Program Reduction, Elimination, or Savings 136 New or Expanding Program 17 Summary of Business Cases 161 Changes to Grants, Donations, and Fees Provides a list of all business cases included in 193 Grants, Donations, and Fees Ending the proposed budget. 197 Capital Building Program Index 199 Index I INTRODUCTION INTRODUCTION Budget at a Glance There are two major components of the Total Budget: Operating Budget and Capital Improvements Budget. The Operating Budget pays the for day-to-day costs of operating the school system, such as salaries and benefits, purchased services, supplies, maintenance, transportation, and utilities. This is the current expense portion of the operating budget. The capital outlay portion of the operating budget includes vehicle and equipment replacement, leases, and relocation of mobile units. The primary sources of funding for the operating budget are state, federal, and county tax dollars, as well as, grants, fees, fines and forfeitures, and interest income. The Capital Improvements Budget, or the building program, pays for design and construction of new schools, expansion of existing schools, and major renovation and replacement of older facilities to meet educational standards. The issuance of bonds, where voters authorize the state or county to borrow money, pays these costs. County revenues pay the bonds over a number of years. TOTAL BUDGET TOTAL BUDGET FOR 2017-18 DAILY OPERATIONS $ 1,561,211,438 74% + Capital Outlay (mobile units, furniture, and vehicles) $ 1,894,611 <1% Daily Operations 74% EQUALS OPERATING BUDGET $ 1,563,106,049 74% + Building Program (provided by taxpayer bonds) Building Program $ 554,200,000 26% 26% EQUALS TOTAL BUDGET $ 2,117,306,049 100% Capital Outlay Less Than 1% OPERATING BUDGET FOR 2017-18 Operating Per Pupil Budget Budget OPERATING BUDGET OPERATING BUDGET State $ 922,271,164 59% $ 5,702 County Appropriation $ 466,541,821 30% $ 2,664 Local Enterprise Funds $ 41,626,210 3% $ 257 34% County Appropriation 30% Other Local $ 8,184,663 1% $ 51 Other Local 4% State Fund Balance Appropriation $ 6,940,355 <1% $ 43 59% Local - Current Expense Non-restricted $ 6,825,000 <1% $ 39 Local $ 530,118,049 34% $ 3,054 Federal 7% Federal $ 110,716,836 7% $ 684 TOTAL $ 1,563,106,049 100% $ 9,440 1 7% 7% 22%% 5% 1% LessLess Than Than 1% 7% 1%1% 1% 2% Less Than 7% 1% 2% Less Than 1% Budget at a Glance Where do funds come from? 91% Where are funds spent? State Sources 59% $922.3 m The state budget pays for: State Public School Fund Salaries and Benefits $889.4 m • Position Allotments $596.5 m Purchased Services $23.3 m • Categorical Allotments 92% 91%$173.6 m Supplies and Materials $9.5 m • Dollar Allotments $95.9 m Capital Outlay $0.1 m • Unallotted Categories (State covers actual cost or created from transfers.) $55.7 m Local Education Agency (LEA)-Financed Purchase of School Buses $0.4 m Other State Allocations for Current Operations $0.1 m Child Nutrition - Breakfast Reimbursement $0.1 m Local Sources 34% $530.1 m The local budget pays for: Noncategorical (Most flexible sources) Salaries and Benefits $363.8 m • County Appropriation (County appropriation is received 1/12 per month.) $466.5 m Purchased Services $55.9 m • Fund Balance Appropriation $6.9 m Supplies and Materials $44.7 m • Indirect Cost (charged to enterprise and grant activities for building use, utilities, $5.3 m Transfer to Charter Schools $32.2 m maintenance, etc.) Utilities $31.7 m • Fines and Forfeitures Schools91%$4.7 m Capital Outlay (mobile units, $1.8 m • Tuition and Parking Fees $1.2 m vehicles, and equipment) • E-Rate $0.9 m • Investment Fund Interest Schools $0.8 m Local salary supplement for • Disposition of Fixed Assets $0.2 m all teachers & school-based • Cellular Lease $0.2 m administrators is included in • Rebates $0.2 m salaries and benefits. Unused funds roll to fund balance. Schools Enterprise Funds (supported by outside fees) • Child Nutrition $18.0 m • Tuition Programs (Before/After School Care, Pre-School, Summer Camp, $13.5 m Project Enlightenment, and Summer School Tuition) • Community Schools 91%$10.0 m Local Grants/Contracts/Donations Support Operations Operations$1.7 m Support Federal Sources 7% $110.7 m The federal budget pays for: Federal Grants routed through NCDPI $68.6 m Salaries and Benefits $65.6 m Commodities (turkey, beef, cheese) $35.8 m Supplies and Materials $26.7 m Medicaid $5.2 m Purchased Services $18.0 m Direct Federal Grants $0.7 m Capital Outlay $0.4 m ROTC Schools$0.4 m The vast majority of the school system’s funding, 92 percent, goesOperations directly to the schools. Support Operations Support, which includes Finance, Human Resources,Advancement Child Nutrition Academic Services, Transportation, Maintenance and Operations, and Utilities, makes up 5 percent. The remaining 3 percent is made up by Academic Advancement, which includes Academics, Special Education, and Student Services, Technology,Academic and the other central serviceAdvancements divisions. Operating Budget: $1,563,106,049 5% Schools $1,434.5 m - 92% 1% Schools 1%1% Board of Education, Superintendent's Office, Chief of Staff and Staff of Chief Office, Superintendent's 1%Education, 1% of Board OperationsOperations Support $80.3 Support m - 5% Strategic Planning, and Communications and Planning, Strategic AcademicAcademic Advancement Advancement $22.3 m - 1% Board of Education, Superintendent’s Office, BoardCommunications, of ChiefEducation, of Staff and Strategic Superintendent's Office, Chief of Staff and StrategicPlanning $14.7 m - Planning,1% and Communications Technology Services $11.3 m - 1% 92%92% Technology Operations Support 2 Schools Academic Advancement Operations Support Board of Education, Superintendent's Office, Chief of Staff and Academic Advancement Strategic Planning, and Communications Board of Education, Superintendent's Office, Chief of Staff and Strategic Planning, and Communications Technology Academic Advancement Board of Education, Superintendent's Office, Chief of Staff and Strategic Planning, and Communications Board of Education, Superintendent's Office, Chief of Staff and Strategic Planning, and Communications Budget at a Glance OPERATING BUDGET The total operating budget is $1.6 billion. It is a large budget, but when put into context that the system has over 10,000 teachers, teaching over 161,000 students in 181 different schools, it is not. Public education is a human-resource-intensive business with 85 percent of the Wake County Public School System’s (WCPSS) total operating budget invested in its people; 8 percent is spent on purchased and contracted services, 5 percent on supplies and materials, and 2 percent on transfers to charter schools. Operating Revenue Operating Budget Salaries and Benefits $ 1,318,882,364 85% State Sources $ 922,271,164 Purchased Services 128,788,139 8% Local Sources 530,118,049 Supplies and Materials 80,895,011 5% Federal Sources 110,716,836 Capital Outlay 2,323,972 <1% Total $ 1,563,106,049 Transfers to Charter Schools 32,216,563 2% Total $ 1,563,106,049 100% STATE FUNDING The North Carolina General Assembly approves a budget during the summer of each year. The North Carolina Department of Public Instruction (NCDPI) distributes the budget to school districts using formulas based on the number of schools, student membership, wealth, and size of the district. The proposed budget assumes WCPSS will receive additional state resources due to student growth and new schools opening. The state’s final 2014-15 budget changed the definition of Continuation Budget. Student growth is no longer included in the state’s Continuation Budget. School districts do not know if they will receive an increase in funding for student growth until the state budget is adopted. Starting in 2017-18, the average class size for grades K-3 for the local education agency shall not exceed the funded ratio and an individual class shall not exceed three above the funded ratio. Funded ratio is as follows: K 1:18 1st 1:16 2nd 1:17 3rd 1:17 The state did not approve additional funding for this requirement change. Although the class size legislation would require an additional 462 teachers, WCPSS staff is optimistic there will be a partial solution by the legislature; therefore, only half of the cost is included as a local request in the proposed budget. The budget includes a potential risk item for the other half of the cost, as well as facility costs that may be required for additional staff in schools. State sources pay for 59 percent of the operating budget.