Circle Public Schools

Budget Update

Status of 2010-11Where We Are Headed in 2011-12?

Objectives• Update on 2010-11 budget

- Adopted budget overview• What’s ahead for 2011-12– State outlook– Anticipated timeline– Issues for consideration

District Facts• 1,829 students, 147 greater than last year • 300+ employees• 7 buildings• Total budget of $20 million• Salaries = 77% of the total budget

Revenues - Where We Get Our Funds

State – 43.3% $7.7 million

Local – 52.4.% $9.3 million

Federal – 4.3% $748,252

10-Year History of Per-Pupil Funding

2010-11 State Revenue

$7.7 million• Majority of the state revenue is raised

through sales and income tax.

• Districts receive monthly payments from the state.

• Base state aid is provided on a per pupil basis by law, funds regular education.

• Most funds other than base state aid are restricted weightings, such as vocational, bilingual, at-risk and low income students.

2010-11 Local Revenue $9.3 million

• Local revenue is predominantly raised by local property taxes.

• We receive the majority of the property tax revenue two times per year (January and June).

• Includes $3.5 million in Capital and Bond Funds, which legally can’t be used for any other purpose.

• Includes the Local Option Budget (LOB)– Additional property tax levied locally ($2.3 million)– Circle’s currently set at 27 percent of general fund

2010-11 Federal Revenue$748,252

• USD 375 receives federal funds for meal programs, special education, and Title funds.

• Federal funds are restricted sources of revenue. • Stimulus funds received in 2010-11:

– Title 1: $201,807– Special education: $1,745,541– General fund backfill: $269,854 (the only UNRESTRICTED funding

from federal sources in 2010-11)

2010-11 ExpendituresWhat Can Our Money Be Used For?

$20,209,186

Unrestricted$12,989,336

64.3%

Restricted$7,219,850

35.7%

Funds include: grants, vocational, special education,

bond and interest, nutrition services,

capital outlay, bilingual, state intervention,

KPERS

Funds include: general fund, LOB77% of which is designated for salaries

2010-11 Expenditures Directly Support Students (all funds)

13% - Bond Debt Service

2.0% - Facilities Acquisition and Construction (Capital Improvement)

12.0% - Facilities Maintenance (Operations and Maintenance)2.0% - General Administration

4.0% - School Administration2.25% - Food Service Operations (Other)7% - Librarians, Computer Labs, Teacher Training (Instruction Support)

6.16% - Nurses, Social Workers, Counselors, Psychologists, Speech Pathologists (Student Support)

52% - Instruction

71.41% Direct

Student Expenses

Total all-funds cost per-pupil in 2010-11 budget = $11,200

Hourly cost per-student = $10.21

Looking Ahead

Consensus revenue estimates for Current Year (FY11 – 2010-11)

and Next Year (FY12 – 2011-12)

Current State Profile FY11 (2010-11)• Third year of unprecedented fiscal difficulties

• Extraordinary measures were taken to balance current year budget and minimize cuts

• $491.7 million of ARRA stimulus funding (which expires after this year)

• Increased sales tax by one percent for 3 years

• Transferred $210 million from other funds into state general fund (highways $149 million, bio science, gaming); equivalent to loaning general fund dollars

• And school funding was cut over $300 million statewide

• Revenue estimate was increased $17.9 million or 0.3%

Current State Profile FY11 (2010-11)• Additional spending increases will be considered in

January by the Legislature

– Human services caseloads up $6.3 million

– School Finance funding shortfall $81.2 million • Cost of increased enrollment - $5.6 million• Cost of increased poverty - $13.6 million• 20 mills shortfall due to declining property values - $28 million• LOB state equalization shortfall - $32.4 million

• If school and human services shortfalls are funded, the state budget would have a . . .

$59.9 million deficit THIS YEAR

State Fiscal Issues For NEXT Year• Human services caseload est. up $73.2 million• KPERS employer contribution up $40 million• Required to replace ARRA stimulus funds $491.7 million

• $216 million in human services (provider rates)• $197.6 million for K-12 (funded classroom teachers)• $40 million higher education• $41 million corrections (Norton and Hutchinson

Facilities)

State Fiscal Issues For NEXT Year• State ending balance projecting a $492.4 million deficit if

current ARRA funding is not replaced by state funding.

• Since ARRA dollars were used to backfill shortfalls in the state budget, if expiring federal ARRA funding isn’t replaced, deep cuts in education would be required.

• Possible scenario in order to balance the state budget: • Not replacing the K-12 portion of ARRA - $297 per pupil

cut in addition to the base state aid cut of $421 per pupil since January 2009. • Possible USD 375 cut in 2011-12 - $513,500• $1,241,422 cut since January 2009

10-Year History of Per-Pupil Funding

Needed To Fund “The Law”• Kansas schools are required to make achievement gains required by

No Child Left Behind, yet funding is short of the Legislative Post Audit’s recommendations to bring all students to high standards.

• Statewide we would need:- $50 million General Fund K-12 state aid- $30 million in Local Option Budget equalization aid- $81 million in Special Education aid- $27 million in K-12 Capital Outlay equalization- $11 million in Professional Development, Mentor Teacher and

other K-12 state aid- $30 million in 20-mills (reduced assessed valuation)- $14 million to fund growth in At-risk populations- $6 million to fund enrollment increases

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Kansans With High School Diplomas

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Learning Equals Earning

School Operating Budgets as % of Kansas Personal Income

District General Fund Expenditures as Percent of Kansas Personal Income

0.0%

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9.0%

10.0%

What’s Next For Circle?• January 2011 Community stakeholder meeting

(Focus: Facility Report review by committee)

• Early Jan 2011 Governor delivers “State of the State” address

• Mid-Jan 2011 Legislature convenes for 2011 session

• February-May 2011 Stakeholder consensus report to the Board of Education

• Spring 2011 Board conversations regarding district direction - CTE program, NCAT partnership, “Processes” Development and Curriculum Mapping

continues

• May 2011 Legislature sets funding for 2011-2012 Negotiations

• July 2011 Proposed 2011-2012 budget published

• August 2011 Budget hearing, adoption of 2011-12 budget

2010 Commission meets for last time; School Finance is Priority #1

• Meeting for the last time on Friday, December 3rd, the 2010 Commission provided strong recommendations for its final report to the Kansas Legislature. First and foremost, the Commission agreed, was the school finance formula. In their remarks, they emphatically stated:

• Reviewing and studying the school finance formula was chief among their statutory charges;

• The current formula will work if it's adequately funded; and,

• Properly funding the school finance formula is far and above their chief recommendation.

2010 Commission meets for last time; School Finance is Priority #1

Following, in brief, are their key final recommendations:• Education Funding - Beginning with school year 2011-2012, the

Legislature should fund the school finance formula with a BSAPP of $4,492. The finance plan should include an annual cost of living adjustment and have a three-year funding cycle.

• Professional Development - Because strong leadership at the building level is proven to be absolutely critical to student learning, professional development, leadership academies and teaching mentoring must be funded as the Commission has continually recommended in prior years.

• Early Childhood Education - Early learning is so important to success in K-12 that a growing priority needs to be placed there. Two of the recommendations in this area: 1) Move the tiny-k program to the Kansas State Department of Education; and 2) Fund all-day kindergarten statewide.

2010 Commission meets for last time; School Finance is Priority #1

Other issues considered by the Commission:• The Supreme Court has noted that an oversight commission

should be in place, continually reviewing the school finance formula and its funding. As the 2010 Commission is ending at the end of this year, the Legislature may wish to consider establishing a new commission to serve in an oversight role, to ensure fair and equitable funding for schools.

• The implementation of a standardized accounting system may be advantageous to explore.

• The school district efficiency audits were very helpful to school districts. They were voluntary in nature and gave districts the opportunity to compare their operations with peer school districts.

Opportunity For Feedback• What do you want to learn more about in

order to provide informed decisions regarding the Circle Public Schools’ budget?

• Questions/Suggestions?

THANK YOU!for committing your time to serve the

children of the Circle Public Schools and be part of this important community effort!