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FY14-15 Budget Update

FY14-15 Budget Update

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FY14-15 Budget Update

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  1. FY14-15 Budget Update Finance Update Presentation to School Committee December 4, 2013

  2. BOSTON PUBLIC SCHOOLS Finance Overview: FY13-FY15 • Fiscal year ended on June 30, 2013 • BPS ended the year within budget for the 23rd consecutive year FY13 • Current fiscal year, running through June 30, 2014 • We are currently facing unanticipated expenditures, and we are taking action in response to these budget pressures FY14 • Fiscal year beginning July 1, 2014 and running through SY14-15 • We project that rising costs and decreases in external funding will present a challenge FY15

  3. BOSTON PUBLIC SCHOOLS Finance FY2014 Budget InvestmentsOur FY14 budget funds investments to close gaps and ensure all students are college & career ready • Sustains extended days in Turnaround Schools • Sends $30 million new dollars directly into schools through Weighted student Funding • Invests in schools with high concentrations of poverty • Prepares for new Dual Language, Innovation, and In-District Charter Schools • Supports conversion of two schools to fully inclusive programs • Strengthens support for and development of great teachers and school leaders

  4. BOSTON PUBLIC SCHOOLS Finance Our current enrollment is close to last year’s enrollment, but lower than we had projected • This variance is particularly driven by a leveling off of our early childhood enrollment • We were prepared to welcome 1,024 new students in grades K0-2 this year, in line with the increases we have seen since FY11 • Instead, so far we have seen an increase of 382 students in these grades Projected Enrollment: 58,284 Actual Enrollment: 56,735 District Enrollment Variance : 1,549 (-2.66%) Enrollment Changes in K0-2, FY11-FY13

  5. BOSTON PUBLIC SCHOOLS Finance There was a great deal of variation in projections between and within schools Some schools actually enrolled significantly more students than projected

  6. BOSTON PUBLIC SCHOOLS Finance We currently anticipate a shortfall of approximately $10 million in FY14 • As of October 31, our anticipated shortfall is $10.3 million • Major contributing factors include: • Cost of opening classrooms beyond what was initially projected for this school year and additional funding to maintain existing programming • Cost to implement new hiring process, including training for teachers and School Site Councils • Interventions at Madison Park to address staffing, textbook, and equipment needs • Turnaround interventions at English High and E. Greenwood • Continued growth in requirements for therapeutic services for students with disabilities • Transportation costs, including for homeless students, additional bus monitors, and students with private placements

  7. BOSTON PUBLIC SCHOOLS Finance We are taking action to address our budget pressures in FY14 • Implemented a special review process for the hiring of all non-classroom positions in the district • Any request for exception will be reviewed and considered by a subgroup of the Superintendent’s cabinet • Willanalyze current spending patterns and make adjustments where appropriate • Working with Veolia to identify opportunities to minimize unanticipated transportation costs • Reviewing the possibility of using external funds to cover any and all expenditures

  8. BOSTON PUBLIC SCHOOLS Finance We anticipate a challenging budget environment in FY15 • We will face approximately $50-60 million in projected cost increases • Major cost components include: • Employee step increases: $11.8 million • Health insurance and other benefits: $7.6 million • Collective bargaining: $17.2 million • Investments in Madison Park: $1.3 million • Special education out-of-district placements: $0.5 million • Increase in bus monitors: $0.6 million • We are working collaboratively with the City of Boston finance team to refine our total estimate

  9. BOSTON PUBLIC SCHOOLS Finance We anticipate a challenging budget environment in FY15 • Other challenges will include: • Preparing for Common Core standards and online PARCC assessments (PARCC: Partnership for Assessment of Readiness for College and Careers) • Costs associated with introducing hiring flexibility in all schools • Expandinginclusive practices to more schools and classrooms • Updating our early literacy curriculum • Providing transportation for homeless students

  10. BOSTON PUBLIC SCHOOLS Finance We also project a decline of approximately $31.1 million in external funds

  11. BOSTON PUBLIC SCHOOLS Finance In addition, state Chapter 70 funding provides a declining share of our budget

  12. BOSTON PUBLIC SCHOOLS Finance BPS FY15 Budget Timeline (tentative) Mid-Nov. Enrollment projections to schools for review Develop guidance to schools regarding academic strategy Dec. 13 Budget allocations provided to schools Dec. – Jan. Review of Central Office budgets Jan. 3 School budgets due back to Budget Office Jan. 9 – 13 Budget Reviews Jan. 13 – Feb. Probable Org Feb. 5 Superintendent’s recommended budget to School Committee Feb. – Mar. Budget hearings Mar. 26 School Committee votes on BPS budget

  13. BOSTON PUBLIC SCHOOLS Finance We will once again fund schools using Weighted Student Funding

  14. BOSTON PUBLIC SCHOOLS BOSTON PUBLIC SCHOOLS Finance Boston ranks #2 among large urban districts that use weighted student funding in directing resources to schools % of School Department Budget (General Fund + Grants) Source: Geogetown University, Edunomics Lab

  15. BOSTON PUBLIC SCHOOLS BOSTON PUBLIC SCHOOLS Finance We are looking closely at enrollment projections and weights as we develop school budget allocations for FY15 • Allocations will reflect projected enrollment and programmatic needs of schools • We are taking this year’s enrollment trends into account as we plan for next year • We continue to review the weights assigned to different student populations to ensure that the weights reflect student needs

  16. BOSTON PUBLIC SCHOOLS BOSTON PUBLIC SCHOOLS Finance Questions? • For more information, join the Georgetown University Edunomics Lab for a webinar on Weighted Student Funding • How allocation models work • Why districts use student-based allocation • What formulas look like • Tuesday, December 10th • 1:00 p.m. • Register at