Early budget preparation
This presentation is the property of its rightful owner.
Sponsored Links
1 / 20

Early Budget Preparation PowerPoint PPT Presentation


  • 97 Views
  • Uploaded on
  • Presentation posted in: General

Early Budget Preparation. Chesapeake School Board Meeting November 29, 2010. Early Budget Preparation. Purpose of Presentation Provide a brief historical perspective Prepare Board for budget process. Early Budget Preparation. Funding from State – JLARC Lottery Recent state reductions

Download Presentation

Early Budget Preparation

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Early budget preparation

Early Budget Preparation

Chesapeake School Board Meeting

November 29, 2010


Early budget preparation1

Early Budget Preparation

Purpose of Presentation

Provide a brief historical perspective

Prepare Board for budget process


Early budget preparation2

Early Budget Preparation

  • Funding from State – JLARC

  • Lottery

  • Recent state reductions

  • Impact on Chesapeake

  • Budget schedule


Early budget preparation3

Early Budget Preparation

  • Constitutional Responsibility of General Assembly

    • “Provide for a system of free public elementary and secondary schools for all children” and “seek to ensure that an educational program of high quality is established and continually maintained”

    • “Determine the manner in which funds are to be provided for the cost of maintaining an educational program meeting the prescribed Standards of Quality”

    • “Provide for the apportionment of the cost of such program between the Commonwealth and the local units of government…”

      • (from JLARC report of 2001)


Early budget preparation4

Early Budget Preparation

  • JLARC – Joint Legislative and Audit Review Commission – Oversight agency of the Va. General Assembly – Evaluates the operations and performance of state agencies and programs

  • JLARC Study 1985-86 – Requested by General Assembly to provide full funding of the Standards of Quality

  • Implemented in 1986-88 Biennial Budget

  • New study commissioned in 2000 – results published in 2001


Early budget preparation5

Early Budget Preparation

  • 2001 JLARC Study:

    • How is the State estimating SOQ costs? Are all localities fully funding their share of SOQ costs?

    • Are there any adjustments to the SOQ methodology that appear appropriate?

    • Are there “funding gaps” for State-mandated or sponsored programs?

    • To what extent is funding distributed based on local ability to pay?


Early budget preparation6

Early Budget Preparation

  • 2001 JLARC Study:

    • In what ways are localities exceeding SOQ costs?

    • If the General Assembly wishes to enhance the level of State support, what options are available and what are the associated costs?

    • What factors should be considered in assessing the priority to give to various options for increasing State support?


Early budget preparation7

Early Budget Preparation

  • Some key findings of JLARC 2001:

    • In FY 2000, local school divisions were spending far more money on expenditures than the amount required to meet the SOQ matching amount.

    • Reasons for the size of local operating cost exceeding the SOQ required match include the following:

      • Staffing - State standards for instructional staff recognize fewer positions than are provided by most school divisions.

      • Teacher Salaries – Larger school divisions pay salaries higher than the “average” used in the state calculation of costs.


Early budget preparation8

Early Budget Preparation

  • JLARC Study Recommendations from 2001:

    • To fix problems, update for inflation, and make salaries more current…..$1.06 Billion.

    • Localities are providing much more than the minimum standard program funded by the state.

    • Virginia was 43rd in the nation in comparison to other states in funding for K-12 education.


Early budget preparation9

Early Budget Preparation

  • Lottery:

    • Approved by voters in 1987.

    • In 2000, voters approved a constitutional amendment calling for all Lottery profits to go to K-12 public education.

    • First year of implementation of amendment (2003) $243M of $401M (60 percent) used to “fund the state’s share of Basic Aid Payments” – remaining 40 percent distributed using a per pupil amount (total funds divided by total enrollment).


Early budget preparation10

Early Budget Preparation

  • Lottery:

    • Since 2008-09 school year, the 40 percent provided directly to schools has now been shifted to cover costs for categorical areas such as:

      • English as a Second Language,

      • Textbooks (partially),

      • Career and Technical Education,

      • the Early Reading Intervention Program,

      • the Virginia Preschool Initiative,

      • the Algebra Readiness Program,

      • the K-3 Class Size Reduction Program,

      • the Remedial Summer School Program,

      • the Mentor teacher program,

      • Foster Care,

      • Special Education Regional Tuition,

      • the At Risk Program, and

      • the School Breakfast Program.


Early budget preparation11

Early Budget Preparation

CAREER & TECHNICAL EDUCATION

164.8 MILLION

SPECIAL ED REGIONAL TUITION

VIRGINIA PRESCHOOL INITIATIVE

EARLY READING INTERVENTION

MENTOR TEACHER

PROGRAM

K-3 CLASS SIZE

RATIO

ENGLISH AS A

SECOND LANGUAGE

REMEDIAL

SUMMER

SCHOOL

AT RISK FUNDING

ALGEBRA

READINESS

TEXTBOOKS (PARTIAL)

FOSTER

CARE

SCHOOL BREAKFAST

PROGRAM

ALL NOW FUNDED FROM LOTTERY PROCEEDS.

IN DECEMBER 2007 – GOVERNOR’S PROPOSED BUDGET

FOR 2008-2010 SHOWED ALL FROM STATE GENERAL FUND


Early budget preparation

State General Fund Revenue Minus Education Funding

Lottery Funding

40%

60%

2003-2004

2008-2010 and 2010-12

Basic Aid

All other State Aid

State Education Funding


Early budget preparation12

Early Budget Preparation

  • Cuts made to the 2010-2011 State budget for K-12 Education were severe.

  • Many details of the cuts were overshadowed by the efforts of localities to look at the expenditure side.

  • On top of the cuts on the following slides, $68.9 million was shifted from the Federal Stimulus money to cover Basic Aid costs for the Biennium.

  • Also not shown here are the funds cut in the previous year by elimination of many support positions (cap on those positions implemented)


Early budget preparation13

Early Budget Preparation

Summary of some of the reductions:

  • $244 million from Basic Aid funding over two years by removing certain expenditures normally included in Basic Aid calculations (includes “other benefits,” certain capital outlay items other than technology, and certain lease payments)

  • $169.2 million over two years by recalculating health care payments

  • $164.8 million eliminated from the General Fund over two years by transferring certain accounts to LOTTERY

  • $34.1 million reduction to the state textbook fund for FY 2010

  • $78.7 million reduction for support staff funding by including zeroes in the linear weighted average for support non-personnel costs


Early budget preparation14

Early Budget Preparation

  • $67.1 millionin state support for school construction over two years (completely eliminating support)

  • $61.3millionfrom re-benchmarking update in FY 2010

  • $34 millionover two years by updating the “Federal Deduct” calculations

  • $19.4 millionin school bus replacement funding by extending the replacement cycle from 12 to 15 years

  • $16.1 millionin state support over two years for the Enrollment Loss provision

  • $9.4 millionin the biennial budget by eliminating the re-benchmarking update for inflation


Early budget preparation15

Early Budget Preparation

  • Total amount of the two slides:

  • $733 million

  • SFSF funding substitution not included


Impact on chesapeake 60 337 780 reduction since fy 08 09

FY 09/10

$ 31,293,632 reduction

Hiring freeze and vacancies eliminated

Positions transferred to ARRA and SFSF

Tuition increases – Summer School and Driver’s Ed

50% reduction in tuition reimbursements, professional leave days and travel

Reorganization and reduction of summer school services

Decrease in extended contracts

No bus replacements

FY 10/11

$ 29,044,148 reduction

Hiring freeze and vacancies eliminated

Positions transferred to ARRA and SFSF

Tuition increases – Summer School, Adult Ed and Gold Card fees

Computer Equipment replacements transferred to SFSF

Decrease in extended contracts

Reduction in fees paid for AP testing and dual enrollment

No bus replacements

Impact on Chesapeake$60,337,780 reduction since FY 08/09


Early budget preparation16

Early Budget Preparation

  • Constitutional Responsibility of General Assembly

    • “Provide for a system of free public elementary and secondary schools for all children” and “seek to ensure that an educational program of high quality is established and continually maintained”

    • “Determine the manner in which funds are to be provided for the cost of maintaining an educational program meeting the prescribed Standards of Quality”

    • “Provide for the apportionment of the cost of such program between the Commonwealth and the local units of government…”

      (from JLARC report of 2001)


Budget schedule

January 31, 2011Superintendent’s Proposed FY 2011/12 Operating Budget

February 3, 2011Work Session

February 14, 2011Public Hearing and Work Session

February 28, 2011 Public Hearing, Work Session and Action on School Board’s Proposed FY 2011/12 Operating Budget

April 1, 2011Deadline for City Manager’s Proposed Budget to Council

May 15, 2011Deadline for City Council to Adopt FY 2011/12 Budget

May 23, 2011 Final action and approval of School Board’s

Operating Budget for FY 2011-2012

Budget Schedule


  • Login