FY15 MPS Budget Community Engagement Phase 2

Continuous Budget Timeline

December Approval of Levy and Audit due to MDE

November Levy Certification

October Decisions to impact Choice Guide

September Staff Adjustments

July & August Prepare analysis based on previous year revenue & expenses

Continuous Budget Timeline

June Board approves new budget

April & May Allocations Finalized & Budget Tie-Out

March Allocations Distribution

February Decisions for allocations

January Revenue and Expense Projections

Current Budget Timeline

• Community Engagement

Phase 1

February

• Allocations Released

March • Community Engagement

Phase 2

April

• Board Study Sessions • Final

Revisions

May • BOE Votes new Budget

June

Where does the money come from?

Categorical Funds MPS uses

Categorical Fund Allocations •  Compensatory - based on State formula of Free/Reduced

priced lunch. •  English Learners - MPS uses a combination of State and

Referendum dollars to allocate to schools based on where the English Learner sites are located.

•  Special Education – citywide programs (i.e. Autism or Emotional Behavior Disorders)

•  Integration – determined by Integration plan approved by Board •  Referendum – allocated based on per pupil amount. •  Title I – allocated on a per pupil amount based on free/reduced

priced meals •  General Aid – equally to schools on a per pupil basis.

How Does MPS Budget?

Enrollment Projections

Revenue Projections

Expenditure Projections

Budget development begins with assumptions and projections

FY15 Enrollment Projections

Projections are based on birth rates in the county, historical school retention rates, residential growth trends, potential Charter Schools openings or closings, transfers into and out of MPS, potential new comer populations arriving in Minneapolis and current enrollment

Over the next 5 years, enrollment is expected to grow by 4,000 students

An enrollment profile is sent to each Principal prior to receiving budget allocations

Using the profile data, Principals plan for how many classrooms they will need at each grade level

FY15 Revenue Projections

•  $66.4 million Referendum Levy dollars (12.3%) •  $40.8 million Property tax Levies (7.6%) •  $369.6 million State Aids and grants (68.3%) •  $18.0 Other funds (earning investments, rental

of school facilities, ice arena fees, 3rd party billing, etc) (3.3%)

•  $46.1 million Federal grants (8.5%) $540.9 million for General Fund

District Initiatives in FY15

Teacher Evaluation (embedded into Q Comp

work)

Continued work on Focused Instruction

Q Comp to support continuing work on

Professional Development and evaluation

Academic Intervention Strategies to support SHIFT

initiative of closing achievement gap and

increasing graduation rates

What is different in FY15 Budget? $23.7 million new dollars directly to schools $16.7 million dollars reallocated from departments to schools •  INVESTMENTS IN ACADEMIC INTERVENTION STATEGIES

NEW DOLLARS $3.7 million increase in

Math & Reading Specialists ($3.6 M in

FY14)

NEW DOLLARS $2.2 million increase in

International Baccalaureate ($1.1 M in

FY 14)

NEW DOLLARS $2 million increase in

ESL teachers ($9.2 M in FY14)

NEW DOLLARS $1.5 million increase for NABAD program ($274K

in FY 14)

What is different in FY15 Budget? $23.7 million new dollars directly to schools $16.7 million dollars reallocated from departments to schools INVESTMENTS IN CLASS SIZE REDUCTIONS

$3 million increase in Referendum Class Size dollars ($43.2 M in FY14)

$2 million increase to lower class size in High Priority Schools ($0 in FY14)

What is different in FY15 Budget? $23.7 million new dollars directly to schools $16.7 million dollars reallocated from departments to schools

NEW DOLLARS $3 million increase in Basic Per Student

($78 M in FY 14)

NEW DOLLARS $3.2 million increase

in Additional Discretionary dollars

($9.8 M in FY14)

NEW DOLLARS $3.1 million increase in Additional Dollars for Q Comp ($1.5 M

in FY 14)

$0.2 million reallocated from Department for Media supplies

$1.6 million reallocated from Department for

Athletic support at High Schools

$14.9 million reallocated from

Department Principal and Asst

Principal to Schools budget

OTHER INVESTMENTS

Approximately $40.4 million more dollars directly to schools from new dollars and reallocations from Departments •  Discretionary Dollars

$3 million increase in Basic per Student dollars $3.2 million increase in Discretionary dollars $6.2 million •  Semi Discretionary Dollars $3 million increase in Referendum Class Size dollars $3.1 million added for Q Comp $0.2 million added for Media Supplies $1.6 million added for Athletic support to High Schools $2.2 million increase in International Baccalaureate $10.1 million •  Restricted Dollars $2 million increase to lower class size in High Priority Schools $3.7 million increase in Math & Reading Specialists $2 million increase in ESL teachers $1.5 million increase for addition to NABAD program $14.9 million moving Principals & Assistant Principals to Schools $24.1 million Total = $40.4 million

What is different in FY15 Budget? Funds to Support Schools by Departments

$5.4 million added to enhance Transportation and Plant Operations

$50K to add 2 Sports (Lacrosse and Alpine Skiing)

$60K to enhance Adaptive Sports

How are Department Allocations Done?

Department managers review their actual spending report each month to help plan for their next year’s budget request

In February, meetings are held with Department Managers and the Chief Operating Officer, Chief Executive Officer, Budget Director and others to review their Organization structure, request for new

initiatives and budgets

Using the current year-to-date spend plan, budgets are then negotiated and dollars allocated as agreed upon

How are Department Allocations Done?

Some of the largest allocations are: Transportation $32 million

Special Education $75 million Q Comp $9 million

Information Technology $11.7 million Teaching & Learning $6.3 million

College & Career Readiness $6.3 million

Extended Learning $10.6 million

Total Department allocations are $196.8 million

How is the Revenue Spent?

Total Revenue projection $540.9 million

School allocations $344.1 million

Department allocations $196.8 million

Direct Allocations to Schools

Discretionary dollars – complete freedom to make decision (statutes/laws still apply)

Semi-Discretionary dollars – purpose is more restrictive but can make decision within the stated

purpose

Restricted dollars – purpose is defined with little or no freedom to make decisions

Discretionary Dollars in FY15 $55.5 million Compensatory dollars from State formula

$2.3 million to Magnet Schools $13.8 million for Title I $3.8 million in Grants

$10.5 million to Contract Alternative Schools $1.3 million to Non Public Schools

$11.2 million for Minimum Program Adjustments based on Principal and Associate Superintendents agreements

$83.5 million for Basic Per Student allocation based on Enrollment Projections

Semi-Discretionary Dollars in FY15

$46.5 million Referendum Class size to help meet targeted class sizes

$1.6 million to High Schools to Athletic Support

$200 K for Media Supplies

$4.6 million for Q Comp

$1.7 million to support AVID

$2.3 million to support International Baccalaureate program

Restricted Dollars in FY 15 $2.0 million to High Priority Schools to reduce K-3 class size to 18

$14.9 million for Principals and Assistant Principals

$2.2 million to High Schools for Career and Tech Education teachers

$12.1 million for ESL teachers

$6.0 million for Special Education Resource Teachers

$55.6 million for Special Education Citywide Programs

$3.2 million for High 5 Classrooms

$8.9 million for Reading and Math Specialists

$400 K to support Arts programs

FY  14  Budget FY  15  Budget Delta Percent  of  FY  14  Budget

Percent  of  FY  15  Budget

Revenue                            524,944,868                        540,921,065                  15,976,197  

Direct  allocations  to  schools

FY  14  Budget FY  15  Budget Delta Percent  of  FY  14  Budget

Percent  of  FY  15  Budget

Base  costs 274,433,755 318,934,368 44,500,613Grants 29,256,277 25,196,760 (4,059,517)

Total  Direct  Allocations  to  Schools

303,690,032 344,131,128 40,441,096 57.85% 63.62%

Department  Allocations  assigned  to  specific  schools  (preliminary)                                                        -­‐      

Base  costs 76,569,789 67,209,566 (9,360,223)Grants                                                    -­‐                                                          -­‐                                                              -­‐      

Total  Department  Allocations  assigned  to  specific  schools

76,569,789 67,209,566 (9,360,223) 14.59% 12.43%

 Department  Allocations  with  Direct  Service  to  Schools  and  Students:  

Base  costs 32,897,361 39,590,951 6,693,590Grants

 Total  Department  Allocations  with  Direct  Service  to  Schools  and  Students:  

32,897,361 39,590,951 6,693,590 6.27% 7.32%

Total  Allocation  to  Schools

413,157,182 450,931,645 37,774,463 78.70% 83.36%

Direct  allocations  to  departments

                                                       -­‐      

Base  costs 64,137,234 61,126,186 (3,011,048)Grants 28,234,630 15,871,912 (12,362,718)MERF 6,200,000 6,200,000 0

Total  Direct  Allocations  to  Departments 98,571,864 83,198,098 (15,373,766) 18.78% 15.38%

Future  Allocations 13,215,822 6,791,322 (6,424,500) 2.52% 1.26%General  Fund  Expense  Total

524,944,868 540,921,065 15,976,197 100.00% 100.00%

Remaining - - -

General  Fund:  Preliminary  4.5.14

General  Fund  Budgeted  Expenses

What is included in these categories? assigned to schools  $15.1 million   Engineers  $30.4 million   Transp  $2.3 million   go to  $8.5 million   utilities  $1.4 million   athletics  $2.6 million   Nurses  $2.5 million   Teaching & Learning  $1.5 million   IT techs  $2.0 million   it equip to schools  $881 thousand   On-line learning  

service to schools     $520 thousand   CPEO     $262 thousand   Family engagement liaisons  

$22.1 million   Special Education support  

$200 thousand   E&D mini grants     $688 thousand   Budget Finance Specialists  $10.3 million   extended learning      

$2.5 million   Teaching & Learning    

$3.0 million   Information Technology  

departments          $972 thousand  Legal Office     $5.3 million   Information Technology      $5.7 million   Teaching & Learning      $1.7 million   Research & Evaluation      $14.0 million   Human Resources/Teacher Evaluation  $4.0 million   Finance     $1.9 million   Emergency Management      $2.2 million   Youth Engagement/Student Support  $1.6 million   Communications      $925 thousand  Superintendent's Office      $2.0 million   ELL Department     $1.6 million   Associate Superintendent's Office  $6.1 million   Facilities     $6.2 million   MERF payment     $6.5 million   other departments      

POSITION COMPARISON

FTE  POSITION  COMPARISON FY14 FY15

TOTAL  DISTRICT  FTE   6144 6184TOTAL  DISTRCT  POSITIONS 7127 7128

TOTAL  DAVIS  CENTER  FTE 722 673TOTAL  DAVIS  CENTER  POSITONS 773 710

Frequently Asked Questions

Why did schools get less in their initial allocations? The original allocation did not have all of the minimum program adjustment dollars included. As soon as the original allocation was sent out, Associate Superintendents began the conversations with Principals to determine the additional dollars needed at the sites to meet the needs of each school. The minimum program allocation was revised and redistributed within 36 hours of the initial allocation. This was the only change from the initial allocation.

Frequently Asked Questions What is Minimum Program Adjustment? •  Allocations which are intended to ensure that all schools can meet basic program

requirements. •  Core recommendations all schools need to provide to ensure students are receiving

rigorous academics and rich experiences. •  Basic requirements include:

One full-time teacher per classroom. .2 FTE to cover teacher’s preparation. Special Education resource teachers. ELL teachers. Core students & office support staff. Tailored to the needs of each school and its’ students.

•  Components of a minimal school program vary depending on: Grade level. Size and student characteristics.

•  Associate superintendents work with principals to determine what is critical at schools. •  MPS has $11.2 million for minimal program adjust in FY15 budget.

Frequently Asked Questions Why do schools get allocated different amounts? •  Each school’s budget is developed based on two criteria:

Number of students enrolled. Categories the students fit into: English Learners Compensatory Title I Special Education Gifted & Talented

•  FY15 allocations to schools amounted to $344 million which is a $40.4 million increase from FY14.

Frequently Asked Questions What are class size targets? How are class sizes managed? •  Actual class sizes depend on family choices and number of students who enroll in any one

school or grade. •  Referendum target classes:

Kindergarten to 3rd grade= 26 students per teacher Grades 4 to 12= 32 students per teacher

•  MPS is committed to lowering class size at our high priority schools in school year 2014 to 2015.

Kindergarten to 3rd grade= 18 students per teacher Bethune, Hall, Sheridan, Green Central, Hmong Academy, Lucy Laney, Jenny Lind

•  MPS invests approximately $118M in FY 15 to reach class size targets for projected enrollment.

•  Management of class size can be accomplished in several ways: Add classrooms Co-teaching model Associate educators added to decrease adult to student ratios

•  We know some classrooms exceed the class size targets, and we are committed to ensuring that students in both larger and smaller classes receive a high quality education.

•  There are always challenges in keeping smaller class sizes because students are highly mobile and move from one community school area to another

Questions?