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Ann Arbor Public Schools Budget Update

Ann Arbor Public Schools Budget Update. March 21, 2011. Tonight ’ s Agenda. Welcome and Introduction Overview of the 2010-11 AAPS Budget Presentation of Governor ’ s Proposed Funding for K-12 and the Impact on the AAPS Budget for 2011-12

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Ann Arbor Public Schools Budget Update

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  1. Ann Arbor Public Schools Budget Update March 21, 2011

  2. Tonight’s Agenda • Welcome and Introduction • Overview of the 2010-11 AAPS Budget • Presentation of Governor’s Proposed Funding for K-12 and the Impact on the AAPS Budget for 2011-12 • Information on May 3, 2011 Special Education Millage • Questions & Discussion

  3. Overview of 2010-11 AAPS Budget

  4. Specific Fund Use General Fund – Used for general operating expenditures of the school district such as salaries and benefits, utilities, supplies, equipment etc. Grant Funds - Restrictedby the grantor, i.e Title I, IDEA , Career & Tech Ed., etc. Bond Funds – Restricted by the voters to fund capital projects such as building construction, technology, bus purchases, etc. Debt Service – Restrictedby law to fund debt service for bonds. Sinking Fund – Restricted by state law to fund capital projects including land acquisition and remodeling, and repairing of current facilities by contracted sources. Special Revenue Funds – Restricted for specific purposes such as Food Service and Rec & Ed.

  5. Analysis of Operating Budget Fiscal Year 10-11 Basic & Added Instructional Needs$102,817,739 56.48 Adult Education 68,492 .04 Student Support Services 42,372,937 23.27 Executive Administration 1,594,487 0.88 Central Administration 5,764,377 3.17 Operations & Maintenance 18,052,380 9.92 Business Services 2,149,503 1.18 Transportation 6,044,285 3.32 Community Services 663,802 0.36 Outgoing Transfers 2,529,508 1.39 Total $182,057,710 100.00%

  6. Expenditures as Percentage of Total Budget FY 2010-11

  7. What’s Included? Instruction & Support Teachers Teacher Assistants Technical Assistants Coordinators Building Administration Building Secretaries Administration & Support Central Administration Directors/Supervisors Administrative Support (Executive Secretaries) Custodial/Maintenance Transportation

  8. Definitions Foundation Allowance: A funding formula providing for a per pupil distribution of State Aid based on the district’s previous combined state and local revenue, the growth in the State’s School Aid Fund and legislative action. Since determined in 1994, growth can only occur by legislative action. Blended Membership Count: The actual number of pupil membership (converted to full-time equivalent) for the February and September counts. A 25% to 75% blend respectively of these counts determines the number of pupils eligible for Foundation Allowance Funding.

  9. Building a Foundation Allowance FY 2010/11 Per Pupil Allocation Non-Homestead 18.00 mills $3,432Local Non-HomesteadCommercial, Industrial, Rental, and Seasonal Homes (Variable) 6 mills (fixed) Valuation $3.00 Billion State Revenue Sources: Sales, Income, Use, Cigarette, Liquor, Excise Taxes, Lottery, etc. $4,824 State Contribution (Variable) $ 0 State Contribution -20J Hold Harmless $8,256 Foundation Allowance (Base) 6 mills (fixed) Homestead 4. 5344 mills (variable) $1,234Hold Harmless (fixed) $9,490 Foundation Allowance (per-pupil funding) Valuation $4.45 Billion

  10. Funding Reduction • 2009/10 $233 Per Pupil cut in 20j Funding • 2010/2011 $0 Increase in Foundation Allowance • 2011/2012 $454 Decrease in Foundation Allowance

  11. Funding Allocation Since Proposal A Projected

  12. Impact of Governor’s Proposal on 2011-2012 AAPS Budget

  13. Projected surplus: 2011-12: $631 million 2012-13: almost $1.07 billion State Revenue Projections forSchool Aid Fund

  14. Revenues driven by two major Factors: Student population (blended count) State revenues (dependent on state economy) Revenue Projections

  15. Stable enrollment Foundation allowance decrease by $300/pupil Other local funding to remain flat (i.e., Interest Income, Tower Rentals, Universal Service Fund (USF), Parking Project Assumptions Used for Revenue Projections

  16. Key Components: Incremental Budget Increases (Step, FICA, Retirement) Fringe Increases (Health, Life, Dental, etc.) State Retirement Rate Contract Negotiations Other (Legal, Liability Insurance, Utilities, etc) Expenditure Projections

  17. Annual expenditure increase of 8% over the next three years for health benefits Retirement rate will increase from 20.66% to 24.46% for FY 11/12 Retirement rate will increase to 27.37% for FY 12/13 and to 28.87% for FY 13/14 Assumptions Used forExpenditure Projections

  18. Three-Year Budget Projection PROJECTED

  19. AAPS cut $18.6 million from the FY 2010/2011 expenditure budget AAPS is projecting a $15 million deficit for FY 2011/2012 The $15 million deficit assumes passage of the countywide Special Ed. Millage renewal on May 3, 2011 If the millage fails, AAPS stands to lose an additional $6 million Important Budget Issues

  20. Budgeted Expenditure Reduction& Fund Equity Usage

  21. Budgeted Expenditure Reduction2006-2011

  22. Where do we go from here? Possible Means to Address/Manage Deficit • Lobby the State for Change in the Way Schools are Funded • Increase local control over school funding • Changes to the funding of retirement costs • Focus on Increasing Student Enrollment • 100 new students equals $966,700 in additional revenue • Approximately 1,274 K-12 students live in AAPS district and attend charter schools and other public schools within the county

  23. Continue to Focus on Consolidation and Collaboration With: Local Universities WISD Other area ISD’s Other local school districts Private Giving Seek private funding (donations and grants) for programs Work of PTO’s, Booster Clubs, Ann Arbor Educational Foundation… Continue to Make Reductions Where do we go from here?

  24. Special Education Millage Renewal Vote May 3, 2011 25

  25. Student Intervention & Support Services Special Education Millage Renewal Renewal of 0.985 mill for seven years for special education will help maintain programs for ALL children in Washtenaw County public schools by reducing support for special education from the general fund. In the AAPS, Special Education Services is provided through Student Intervention & Support Services (SISS) Our Mission Statement: Our mission is to ensure that every special needs student has access to, and progresses in, the general education curriculum. Each student with special needs will be provided appropriate supports, interventions and strategies to afford s/he an opportunity to receive the highest quality education in the least restrictive environment.

  26. Who Receives Special Education Services? • On average, 1 in 7 students, or 3 in a classroom of 24, receive some form of special education services. • This year in the AAPS, 2,093 students are receiving special education services (total AAPS students enrolled: 16,569) The table on the next slide provides a list of the disability categories for our students and the number of students that comprise each category

  27. Who Receives Special Education Services?

  28. AAPS Special Education Trends Moving average trend line

  29. AAPS Special Education Trends Moving average trend line Autistic Spectrum Disorder is a type of disorder that has been increasing nationally. We anticipate that this type of need will only increase in the foreseeable future. The costs for ASD students are higher than some other categories.

  30. Special Education Costs FY2010 Special Education Services is comprised of several different cost categories. Last year, the total cost of these services was almost $40M.

  31. WISD Special Ed Funding to AAPS Estimated disbursement to local school districts based on 09/10 reimbursable costs at renewed millage rate of 0.985:

  32. Millage Impact to AAPS Since this millage is a renewal (of 0.985 mills) and there have been declining property values, the revenues from the renewal will not cover costs: Even if the millage passes, the general fund will have to contribute about $1M for special education in AAPS, requiring cuts in other parts of the general fund budget. $(942,000) Passes Vote on May 3 Fails If the millage fails, AAPS will have to use an additional $5.8M from its general operating fund for special education, in addition to the $1M noted above, or almost $7M total (as shown). $(6,710,000)

  33. QUESTIONS?

  34. Contact us…Robert Allen - allenr@aaps.k12.mi.usInterim SuperintendentLiz Margolis - margolis@aaps.k12.mi.usDirector of CommunicationsBoard of Education Office - osinski@aaps.k12.mi.usAmy OsinskiBoard of Education Trustees - boe@aaps.k12.mi.us

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