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HomeMy WebLinkAboutAgenda - 09-25-2007-7aHAPEL H ILL- ., nRRBORO 1~`~~.. CITY SCHOOLS Board of Education Agenda Abstract. Meeting Date: September 20,.2007 Agenda Type: Work Session Agenda Item #: Subject: Proposed Budget Drivers and Budget Calendar for 2008-09 Division: Superintendent, Neil Pedersen Department: Person Neil Pedersen Feedback Cabinet Responsible: Requested From: Agenda Item....Prior Submission Dates Work Session No Date Discussion and Action No Date Attachment(s): Proposed Budget Drivers for 2008-09 Public Hearing Required: No PURPOSE: To propose changes in the budget process that will inform the Board of County Commissioners earlier in the year of the school district's financial position. and anticipated requirements for the upcoming school year. BACKGROUND: Last year's budget process was extremely difficult on all parties. Early in the process the County Commissioners established a goal of not raising property taxes except to cover the .increasing capital debt service. With the opening of a new high school and the anticipation of salary increases of 4 to 5 percent, it was clear that the Commissioners' goal could not be met unless the school district made major reductions in its budget. This caused our school district to convene a special committee to determine where cuts, if necessary, should be made. Many of these potential reductions would have resulted in the reduction of a significant number of positions. At the end of the process, the Commissioners provided considerably more funding than the Manager had recommended, thereby avoiding these cutbacks. All parties agreed that we needed a better budget process that would avoid the emotional public debate and conflict that too often occurs at the end of the school year. To that end, the CHCCS Administration has developed this proposal to accelerate the budget process. Our goal is to develop a continuation budget in the fall and to share it with the S:\schools\joint meeting September 25 2007\CHCCS budget drivers 2008-09.doc Board of County Commissioners prior to their winter retreat. In order to do this we are proposing budget drivers that would determine most of the budget increase that we would include in the continuation budget (see attachment). Initially, the budget drivers would be used to formulate a continuation budget this fall. Later, they would lay the foundation for a preliminary budget request to the County Commissioners. We also are proposign a new budget calendar that would meet the objectives stated earlier. The following calendar is proposed: August 31, 2007 Cabinet develops proposed budget process and budget drivers September 20, 2007 Share proposed budget process and budget drivers with Board October 1, 2007 Kick off budget request process with schools and departments November 1, 2007 Present preliminary continuation budget to Board of Education November 15, 2007 Board approves preliminary continuation budget November 19, 2007 Forward preliminary continuation budget to County Manager November 1-30,2007 Departments present budgets to superintendent for review November 16, 2007 Departments present recommendations for fee increases December 14, 2007 Schools submit new budget requests January 19, 2008 Finance Director summarizes school requests February 21-22, 2008 Superintendent presents budget to Board of Education March 6, 2008 Public hearing on the budget held March 20, 2008 Board adopts budget request March 21, 2008 Superintendent submits budget request to County Manager April 1-30, 2008 Present budget to BOCC at joint meeting FINANCIAL IMPACT: None PERSONNEL IMPACT:None RECOMMENDATION: The Board of Education consider this proposal at its September S:\schools\joint meeting septernber 25 2007\CHCCS budget drivers 2008-09.doc 2 20, 2007 meeting and share at the joint meeting with the Board of County Commissioners and the Orange County Board of Education. RESOLUTION: S:\schools\joint meeting September 25 2007\CHCCS budget drivers 2008-09.doc 3 TO: Board of Education FROM: Neil G. Pedersen RE: Budget Drivers Date: September 10, 2007 In order to provide the Board of County Commissioners with important background information to guide their fiscal planning early in the budget process, the Administration has developed a preliminary list of budget drivers. Budget drivers are defined as items that are likely to have a significant impact on the next year's budget and that will be determined by other agencies or have been decided upon by the Board of Education. Budget drivers will represent the major increases in the district's continuation budget. The. continuation budget is defined as the budget required to maintain current levels of service, to support a growing student population and staff, and to meet mandates from other governmental entities. It is the Administration's expectation that the Board of County Commissioners annually will support, at least, a level of funding that will meet these requirements. The following budget drivers have been identified. Cost estimates for each item will be determined by the end of October. Salary and fringe benefit increases; These will be set by the General Assembly. Preliminary figures maybe available in February, but we often don't know the exact adjustments until the late summer. Assumptions will need to be made based upon recent trends. • Expenses associated with increased enrollment: These are determined by student projections. State projections usually aren't available until February; however, we can make local projections after the first month of school. This item includes funding that is allocated on a per-pupil orper-teacher basis. • Start-up costs for Elementary No. 10: This school will open in August 2009. A budget, similar in scope to that used for Rashkis Elementary will be developed this fall. ® Costs for Senior Class at Carrboro High School: Next year Carrboro High School will add a senior class, which will increase the enrollment to approximately 800 students. At the same time, the district's other two high schools will lose some enrollment. The difference between the increased staffing at Carrboro High School and the savings at the other two high schools will need to be budgeted. • Utility and service rate increases: Rate increases for electricity, natural gas, water, and telephone services are rarely known in advance; however, we will have to plan for increases based on the best information we have. ® Other rate increases: This includes rate increases for insurance, attorneys, auditors, ,postage, and other fees that the district is assessed. ® Changes in Exceptional Education staffing requirements: The State is adjusting its class size requirements for exceptional education classes. Once the new regulations are adopted, we will project the impact on our current staffing levels. We also need to consider projected increases in the exceptional children's population. ® Other inflationary increases: The district rarely budgets for across-the-board inflationary increases; however, this means that our buying power is constantly being eroded. We will need to consider at least selective increases for items known to be increasing in cost (e.g. gasoline) and food. ® Child nutrition services: The district subsidizes the child nutrition services. Each year we examine our balance sheet and determine what the school board's contribution will need to be. With the opening of the second new school in as many years, this subsidy could very well go up next year. ® Charter schools: We must provide a local allocation to charter schools that is not determined until the school year is underway. In recent years, enrollment in charter schools has been increasing. Although we have attempted to consider all possibilities in developing this list, it should be understood that a list of budget drivers needs to be fluid. Items to be considered, as well as their projected cost implications, may fluctuate throughout the process.