Plano ISD State Budget Cuts Forecast
Content
State Budget and School Finance
2011 -2013 Biennium Board Meeting December 7, 2010
Legislative History
2005 Most Texas Schools at tax capacity Legislature did not act in 2005 Session on school funding School won lawsuit that State out of Compliance on school funding
Legislative History
2006 Special Session – Legislature rewrote finance bill, gave all taxpayers property tax relief, and provided more revenue for all school districts 2006-07 School District locked into a set amount of funding both State & Local per Weighted Average Daily Attendance
Legislative History
2007-08 No Increase in Funding 2008-09 No Increase in Funding 2009-10 $120 Per Weighted Average Daily Attendance 2010-11 No Increase in Funding
State Budget Woes
Eliminated 1/3 of Property Tax Revenue Franchise, sales tax, and other statewide revenue sources did not materialize Stimulus Money supplanted state shortfall in current biennium
2010-11 Estimated 2009-10 2008-09 2007-08 2006-07 2005-06 New Law M & O Taxes
$506,932,449 $351,473,165 $501,843,341 $347,944,717 $510,380,972 $351,583,066 $495,594,119 $331,604,001 $457,632,566 $405,767,542 $432,903,378 $432,903,378 Old Law at $1.50 Cap
M&C
State Budget and School Finance
The budget shortfall facing the Texas Legislature in 2011 is estimated as high as $26B. The State’s Rainy Day Fund is expected to be $9B at the start of the 2011 Legislative Session.
Plano ISD General Operating
Fiscal Year 2005-2006 2006-2007 2007-2008 2008-2009 Tax Rate Cap $1.50 $1.33 $1.02 $1.04 Net Revenue/ Appropriations $ 9.1 M $14.7M $(4.4)M $(5.2)M
Plano ISD General Operating
Fiscal Year 2009-2010 2010-2011 2011-2012 2012-2013 Tax Rate Cap $1.04 $1.04 $1.04 $1.04 Net Revenue/ Appropriations $ 5.8 M (Actual) $( 5.7)M (Budgeted) $(10.5)M (Projected) $(10.2)M (Projected)
Why is a Tax Rate Election not a budget solution at this time??
Increased Revenue Per Each
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $$1.05 $1.06 $1.07 $1.08 $1.09 $1.10 $1.11 $1.12 $1.13 $1.14 $1.15 $1.16 $1.17
Only Viable Solution at this time is a Reduced Budget.
Budget by Function
2.19% 12.54% 14.94%
Instruction Instructional Support General Administration District Operations
70.33%
BUDGETED APPROPRIATIONS BY CATEGORY
4.02% 1.05% 3.62% 6.42% 0.07%
84.83%
Capital Other Operating
Payroll Utilities
Supplies & Materials Contracted Services
Peer Administrative Cost Ratio
Allen Carrollton FB Frisco Garland Lewisville McKinney Richardson Wylie Plano 6.28% 6.17% 6.56% 6.06% 5.92% 5.78% 6.78% 5.94% 3.91%
Required State & Federal Reports
Statistics:
Month Grant Funding Payroll Related PEIMS (263,545 individual records) Food & Nutritional Services Contractor Related # of Reports 270 45 4 22 12
Total Reports for FY
353
2011-12 Budget Reductions
Biennium Target $10M - $14M
Biennium Budget Reduction Goal
To decrease the general fund budget with the least amount of impact on classroom instruction.
Decrease the current budget capacity Leverage operating balance / fund balance over a 2 year period Streamline support services Lobby legislators for tax rate authorization
Key Components
Increase Student/Teacher Ratio Reduce Non-Teaching Staff Reduce Custodial, Maintenance, & Mowing Contracts Reduce Supplies and materials Utility Conservation – Water & Electricity Reduce CIP Initiatives Reduce Travel Expense TBD TBD 5% 5% TBD 66% 20%
Department Budget Reductions Targeted
Department
Academic Services Reductions Total Academic Initiatives Total
Total Reductions
$ (1,208,988)
$(
153,800)
Student and Family Services Total
$(
601,986)
Department Budget Reductions Targeted
Department
Area Assistant Superintendent Total Human Resources Total
Total Reductions
$( 106,189)
$(
876,269)
Business Services Total (Business, Facility, & Auxiliary)
$( 3,233,810)
Department Budget Reductions Targeted
Department
Technology Services Total
Total Reductions
$( 759,666)
Communications Total Other Department Totals Other Allocations Total
$( 274,520) $( 211,759) $(1,851,500)
Department Budget Reductions Targeted
Department
Total Department Budgets Operating
Total Reductions
$( 9,278,487)
Internal Service Fund Savings
$( 235,299)
Recap of all Department Reductions Targeted
Non Payroll Payroll + Travel Programs $ (3,757,540) $( 4,975,394) $( 780,852)
Grand Total
$(9,513,786)
Budget Development Process 2011-12
District Goals Reviewed
Biennium Budget Targets
Budget & Tax Rate Calendar
Develop Pro Forma Budget
Dept. Budget Reductions Review
TEAM OF EIGHT
BOARD BUDGET RETREAT / WORK SESSIONS
BOARD BUDGET DIRECTIVES
ADOPTION OF CURRENT YEAR TAX RATE
Legislative Priorities
Financial Audit
Campus Enrollment PEIMS
Preliminary Enrollment Projections
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
Reduction Overview to Board
Finalize Enrollment Projections
BOARD WORKSHOPS CABINET FACILITATING CAMPUS INPUT
Budget Parameters/ Instructional Initiatives
Final Revenue Projections
FINAL BUDGET DRAFT
PUBLIC HEARING ADOPT BUDGET
Approve Compensation Package
Staffing Models Developed
Finalize Staffing Allocations
Budget Reviews
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL / MAY
JUNE
What’s Next? Meet with Principal Committee Cabinet Budget Discussions Board Budget Discussions
State Budget and School Finance
2011 -2013 Biennium Board Meeting December 7, 2010
2011 -2013 Biennium Board Meeting December 7, 2010
Legislative History
2005 Most Texas Schools at tax capacity Legislature did not act in 2005 Session on school funding School won lawsuit that State out of Compliance on school funding
Legislative History
2006 Special Session – Legislature rewrote finance bill, gave all taxpayers property tax relief, and provided more revenue for all school districts 2006-07 School District locked into a set amount of funding both State & Local per Weighted Average Daily Attendance
Legislative History
2007-08 No Increase in Funding 2008-09 No Increase in Funding 2009-10 $120 Per Weighted Average Daily Attendance 2010-11 No Increase in Funding
State Budget Woes
Eliminated 1/3 of Property Tax Revenue Franchise, sales tax, and other statewide revenue sources did not materialize Stimulus Money supplanted state shortfall in current biennium
2010-11 Estimated 2009-10 2008-09 2007-08 2006-07 2005-06 New Law M & O Taxes
$506,932,449 $351,473,165 $501,843,341 $347,944,717 $510,380,972 $351,583,066 $495,594,119 $331,604,001 $457,632,566 $405,767,542 $432,903,378 $432,903,378 Old Law at $1.50 Cap
M&C
State Budget and School Finance
The budget shortfall facing the Texas Legislature in 2011 is estimated as high as $26B. The State’s Rainy Day Fund is expected to be $9B at the start of the 2011 Legislative Session.
Plano ISD General Operating
Fiscal Year 2005-2006 2006-2007 2007-2008 2008-2009 Tax Rate Cap $1.50 $1.33 $1.02 $1.04 Net Revenue/ Appropriations $ 9.1 M $14.7M $(4.4)M $(5.2)M
Plano ISD General Operating
Fiscal Year 2009-2010 2010-2011 2011-2012 2012-2013 Tax Rate Cap $1.04 $1.04 $1.04 $1.04 Net Revenue/ Appropriations $ 5.8 M (Actual) $( 5.7)M (Budgeted) $(10.5)M (Projected) $(10.2)M (Projected)
Why is a Tax Rate Election not a budget solution at this time??
Increased Revenue Per Each
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $$1.05 $1.06 $1.07 $1.08 $1.09 $1.10 $1.11 $1.12 $1.13 $1.14 $1.15 $1.16 $1.17
Only Viable Solution at this time is a Reduced Budget.
Budget by Function
2.19% 12.54% 14.94%
Instruction Instructional Support General Administration District Operations
70.33%
BUDGETED APPROPRIATIONS BY CATEGORY
4.02% 1.05% 3.62% 6.42% 0.07%
84.83%
Capital Other Operating
Payroll Utilities
Supplies & Materials Contracted Services
Peer Administrative Cost Ratio
Allen Carrollton FB Frisco Garland Lewisville McKinney Richardson Wylie Plano 6.28% 6.17% 6.56% 6.06% 5.92% 5.78% 6.78% 5.94% 3.91%
Required State & Federal Reports
Statistics:
Month Grant Funding Payroll Related PEIMS (263,545 individual records) Food & Nutritional Services Contractor Related # of Reports 270 45 4 22 12
Total Reports for FY
353
2011-12 Budget Reductions
Biennium Target $10M - $14M
Biennium Budget Reduction Goal
To decrease the general fund budget with the least amount of impact on classroom instruction.
Decrease the current budget capacity Leverage operating balance / fund balance over a 2 year period Streamline support services Lobby legislators for tax rate authorization
Key Components
Increase Student/Teacher Ratio Reduce Non-Teaching Staff Reduce Custodial, Maintenance, & Mowing Contracts Reduce Supplies and materials Utility Conservation – Water & Electricity Reduce CIP Initiatives Reduce Travel Expense TBD TBD 5% 5% TBD 66% 20%
Department Budget Reductions Targeted
Department
Academic Services Reductions Total Academic Initiatives Total
Total Reductions
$ (1,208,988)
$(
153,800)
Student and Family Services Total
$(
601,986)
Department Budget Reductions Targeted
Department
Area Assistant Superintendent Total Human Resources Total
Total Reductions
$( 106,189)
$(
876,269)
Business Services Total (Business, Facility, & Auxiliary)
$( 3,233,810)
Department Budget Reductions Targeted
Department
Technology Services Total
Total Reductions
$( 759,666)
Communications Total Other Department Totals Other Allocations Total
$( 274,520) $( 211,759) $(1,851,500)
Department Budget Reductions Targeted
Department
Total Department Budgets Operating
Total Reductions
$( 9,278,487)
Internal Service Fund Savings
$( 235,299)
Recap of all Department Reductions Targeted
Non Payroll Payroll + Travel Programs $ (3,757,540) $( 4,975,394) $( 780,852)
Grand Total
$(9,513,786)
Budget Development Process 2011-12
District Goals Reviewed
Biennium Budget Targets
Budget & Tax Rate Calendar
Develop Pro Forma Budget
Dept. Budget Reductions Review
TEAM OF EIGHT
BOARD BUDGET RETREAT / WORK SESSIONS
BOARD BUDGET DIRECTIVES
ADOPTION OF CURRENT YEAR TAX RATE
Legislative Priorities
Financial Audit
Campus Enrollment PEIMS
Preliminary Enrollment Projections
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
Reduction Overview to Board
Finalize Enrollment Projections
BOARD WORKSHOPS CABINET FACILITATING CAMPUS INPUT
Budget Parameters/ Instructional Initiatives
Final Revenue Projections
FINAL BUDGET DRAFT
PUBLIC HEARING ADOPT BUDGET
Approve Compensation Package
Staffing Models Developed
Finalize Staffing Allocations
Budget Reviews
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL / MAY
JUNE
What’s Next? Meet with Principal Committee Cabinet Budget Discussions Board Budget Discussions
State Budget and School Finance
2011 -2013 Biennium Board Meeting December 7, 2010
