HomeMy WebLinkAboutAgenda - 04-22-2008-2b2{~~~.~~ r~®~~.tt~ ~~~~c~ll~
Qperating Budget Narrative
2008-200
The following budget allows for the identification of the financial resources necessary to
carry on all existing programs and functions at their current level of service and includes
some minor program expansions in the upcoming fiscal year. It includes adjustments
necessary to account for inflation, as well as the increased cost of services or materials.
State Mandates
Salary and Benefit Increases
$1,465,449
The salaries of certified staff members have been projected to rise by 5% and non-
certified staff members by 4% for the 2008-2009 school year based on the increase
awarded far the 2007-2008 school year {$808,561}. This figure includes a matching
contribution for employer's social security tax ($61,855). The employer's matching
funds for the state's retirement are expected to increase by .4%, from 7.83% to 8.23%
{$133,596). The employer's portion of the state's health insurance is anticipated to
increase by 6% {$61,037).
Exceptional Children's Program
$164,952
The state has passed new regulations governing the class size far exceptional children's
classes. This will require the district to hire two additional teachers at a cost of $132,368
and one additional teacher assistant at a cost of $28,584. kpending state funds received
Continuation of Current Services
Utility Increases
$81,444
Substantial price increases are negatively affecting all of the utility budgets. A 10%
increase is requested for the rising cost of water ($33,000) and the increased cost of
natural gas {$48,000). These increases are based upon the historical trends of these two
utilities. The district will not face an increase in the cost of electrical utilities, as Duke
Energy Carolinas has given a rate reduction to its North Carolina customers averaging
7.6%.
Fuel
$54,004
Fuel prices are continuing to increase and these ongoing costs have strained the district's
operating expenses for our transportation department. A 30% ($50,000) increase to cover
the rising cost of fuel is requested.
DRAFT
Inflationary Increases $63,443
Historically, the district has very little funding to address the inflationary increases that
are part of every supply and material category. Ta counteract impending increases to the
current inflation rate of 4.31%, the district is requesting $63,443.
Projected New Student Enrollment CTrowth
Laval Supplement far New State-Paid Teacher Positions $23,177
Based upon the state's projected growth in student enrollment for the 2008-2009 school
year, the district is anticipating four new teacher positions from state funding. The four
positions, allotted across grade levels, will require an increase in the local supplement at
an a4°erage of $5,794.24 per position for a total of $23,1771.
Expenses Allocated on a Per-Papil Basis $15,000
Based upon the state's projected growth in student enrollment, the district will require
additional funds to provide for per-pupil allotments for the increase in students at
individual schools.
Additional Charter School Growth $75,000
The state is projecting an increase in charter school enrollment of 24 students for the
2008-2009 school year. The district will require an additional $75,000 to fund these
students.
Current Exbansion or New Initiatives Budget
AVID Support $25,000
The district will be expanding the Advancing Via Individual Determination (AVID)
program to the high school level. The high school will require AVID training far their
staff members as well as funding to cover the contractual costs associated with the
initiation of the AVID program and the purchase of AVID libraries for both high schools.
Drop Out Prevention/Reduction Initiative $25,000
To address the issue of students dropping out of school, the district is requesting
additional funding for this initiative. The funding will create an extensive, year-long
transition program far both middle and high school students, create a summer recovery
program to reconnect with recent dropouts to encourage them to return to their high
schools, and provide an off-site alternative to the suspension program for students who
are suspended for less than 10 days.
Raising Achievement while Closing the Gap (RACG} $25,000
In November of 2007, the RACG committee, composed of Orange County Schools staff
members, students, parents, and community members, presented their recommendations
for Closing the Achievement Gap. Currently, there are six sub-committees working ou
its initiatives (recruitment and retention of mare minority teachers and professional
development for staff to increase cultural awareness, et al). This funding will support the
initiatives and assist in off-setting the cost of ongoing staff development.
Academically and Intellectually Gifted Program Enhancement $25,000
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DRAFT
In June of 2007, the Board of Education approved the new AIG plan for Orange County
Schools. Under this plan, the district will expand AIG services and increase the level of
professional development for AIG staff. This training will focus on increasing minority
enrollment in AIG, International Baccalaureate, and Advanced Placement courses, a
strong nurturing component, parent outreach efforts, and a consistent service delivery
plan for the system.
Academically and Intellectually C,ifted Teacher $66,184
To increase support far the AIG program and ensure consistent service for students
throughout Orange County Schools, the district is requesting one additional AIG teacher
to provide differentiated education and enrichment. Currently, the district is splitting one
AIG position between Efland Cheeks Elementary School and Central Elementary School.
English as a Second Language (ESL} Teachers $132;368
The district has faced a 33%~ increase in the number of Limited English Proficient (LEP}
students over the course of the past year. During the 2006-2007 school year, LEP
students were one of our student groups that did not meet their Annual Yearly
Performance {AYP). At the same time, the federal government has reduced the amount
of funding available for LEP students and may cut our PRC 111(immigrant funding)
completely. Changes in LEP testing have made it more difficult for LEP students to
became proficient; thus increasing the number of LEP students in Orange County
Schools. The district is requesting funding far 2 additional ESL teachers to meet the
needs of this rapidly expanding group of children.
Total Bucl~et Requests 1832173
The district's budget requests have been identified based on several assumptions. We can
not predict what legislative actions may impact the Orange County School District's
budget in the future. However, these preliminary requests provided us with a basis upon
which to begin our discussions about the 2008-2009 budget.
The 2008-20091ocal budget recommendations would increase our current budget from
$21,939,739 to $23,771,912, an increase of 8.35% or $1,832,173. We believe that this
represents a fiscally responsible budgetary increase and is essential for achieving an
educational program that raises achievement for all Orange County students, focuses on
increasing educational opportunities for underperforming students, and improves the
overall operational efficiency of our district.
DRAFT