2015 Budget Request April 8, 2014

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2015 Budget Request April 8, 2014

BALTIMORE CITY

PUBLIC SCHOOLS

Agenda

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A. Historical Context and FY15 Outlook Review financial results from last three years (FY12, FY13, FY14E) Discuss Major Drivers and Key Strategies Overview of Fund Balance Overview of Current Budget Structure

B. Funding Schools First Locked Positions (General, SWD) Target Funds Alternative Option Programs (AOP) Charter Formula

D. Funding District Office Focus Areas Funding request by office

BALTIMORE CITY

PUBLIC SCHOOLS

City Schools' Financial Context

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21st Century Buildings is a great accomplishment to City Schools, and will improve learning conditions for thousands of students, but comes at a cost

Additional $10M in operating funds contributed in 2016 Additional $20M in 2017 Additional $12M in maintenance costs as a conservative estimate in 2017

Performance-based employee contracts moved away from predictable steps to a employee-driven compensation approach. About $12M is paid this way now. Race to the Top (RTTT) funds were available in 2010, and were used for interval/pathway movements.

MD College and Career Ready Standards is vital in FY15 budget, as some schools are not prepared for the technology needs of the Partnership for Assessment of Readiness for College and Career (PARCC).

External financial pressure continues to reduce operating funds such as cost shifts from City and State funding

State and local revenues have increased by, at most $20M a year in the last three years, due mainly to a higher number of students and relative poverty

BALTIMORE CITY

PUBLIC SCHOOLS

Context for FY15 Budget Goals

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Transition Year for City Schools ? Strategic themes will determine district investments for next year ? MDCCRS, RTTT, and 21st Century Schools are priorities Continued Increase in School Investment (+$23M) ? Additional $10M in funding to schools through FSF (Core Funding) ? Above FSF, an additional $13M of funding Flattening Revenue = Difficult Year for District Office Reductions ? Funding Schools First, the budgetary gap is $31M ? We have already assumed $10M will come from Fund Balance, leaving a $21M

gap, or 9% of the district office, but a much greater % from non-fixed costs. ? $21M represents a 29% reduction to non-fixed costs of $76M, which would call

for considerable staff layoffs and de-funding of key contracts that serve schools. ? With $50M of Fund Balance available, FY15 can be solved but must be done

responsibly

BALTIMORE CITY

PUBLIC SCHOOLS

Enrollment Trend (2004 ? 2015)

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100,000

E n r To ol tl am le n t

95,000 90,000 85,000 80,000 75,000

70,000

100%

95% 94,049

84.0% 83.6% 84.0% 83.9% 84.8% 84.6%

90% F 85% A

R

71.2% 72.2% 70.9% 70.5% 71.6% 71.0%

84,747 84,730 85,351

80% 75%

M s

70% R a

65% t

60% e

55%

50% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015P

For decades, City Schools' enrollment declined. The sustained reversal that began in 2008 is expected to continue.

Effective campaign in 2010 significantly improved our reporting of FARMs-eligible students

Source: MSDE Division of Business Services

BALTIMORE CITY

PUBLIC SCHOOLS

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