2019-2020 Budget Development Update

May 21, 2019

Board of Education

Regular meeting

Study Session Goals

2019-2020 Budget Considerations

Central Budget Committee (CBC) Process

Preliminary Budget Assumptions

2019-2020 Recommended Adjustments

Revenue Enhancements

Non-Personnel Expenditure Reductions

Non-Instructional Personnel Reductions

Instructional Personnel Reductions

Early Retirement Incentive Update

Discussion

Central Budget Committee Structure

CBC

Central Leadership Team (9)

Manager of Finance (1)

Manager of Operations (1)

Began Meeting in Early Fall 2018

Major Weekly Priority Since September 2018

Over 75 meeting hours committed

Central Budget Committee Work

Collaboration Among Departments

Cost of Any Potential Adjustments

Prioritized with Administrative Input

All Possibilities Considered

Minimize Impact on Students

Find Efficiencies

Preserve BPS Educational Excellence

Goal of $4M for 2019-2020 School Year

Preliminary 2019-2020 Assumptions

Revenues

Enrollment

-$600,000

Projection: -34 (PMC)

Budget: -50

Lack of Headlee Protection

-$500,000

2018-19 One-Time Transfers

-$1,470,000

Foundation Per Pupil

Increase Unknown

Ex: $100 Yields +$800,000

Expenditures

Salary & Benefit Obligations

$2,300,000

Salary Increase

Hard Cap Increase

FICA Increase

Retirement Increase

High Level Net Impact: -$4,870,000

Preliminary 2019-2020 Assumption Graphic

95,000,000

100,000,000

105,000,000

110,000,000

115,000,000

120,000,000

125,000,000

2013 2014 2015 2016 2017 2018 2019

Revenues & Expenses History & Projection

Revenue Expense2020

Adjustment Categories

Revenue Enhancements/Adjustments

Non-Personnel Expenditure Reductions

Non-Instructional Personnel Reductions

Instructional Personnel Reductions

Revenue Enhancements/Adjustments

Outcome: $160,000

Tuition (Complete)

Passes (Parking, Athletics)

Pay to Participate (Tier 1 & Tier 2)

Choice Hour

Non-Personnel Expenditure Reductions

Outcome: $1,200,000

Textbook reduction*

Out-of-State Workshops/Conferences*

Reduction in Sub Utilization

Food & Beverage

Learning Pathways

Building Discretionary

Adjust Nighttime Temperature Set Points

Energy Management Service*Non-Recurring

Non-Instructional Personnel Reductions

Outcome: $1,000,000

Reduction in Work Year Calendar

Retiree Non-Replacement

Elimination of Service Contract(s)

Positions Combined/Eliminated

Shared Across Multiple Departments

Instructional Personnel Reductions

Outcome: $1,800,000

Reductions through Retirement

Reductions through Staffing Efficiencies

Special Attention to Secondary Level

Planned Position Changes

*Assume 1 Position at Max Scale Costs $130,000 with Salary & Benefits

Category Summary

Revenue $160,000

Non-Personnel $1,200,000

Non-Instructional Personnel $1,000,000

Instructional Personnel $1,800,000

Total: $4,160,000

2019-2020 Summary Graphic

95,000,000

100,000,000

105,000,000

110,000,000

115,000,000

120,000,000

125,000,000

2013 2014 2015 2016 2017 2018 2019

Revenues & Expenses History & Projection with Adjustments

Revenue Expense2020

Early Retirement Incentive Update

Handout for Review

Next Steps

Individual Conversations

Union and Administration Leadership Notification Tomorrow

Annual Employee Evaluations Completed by Friday, May 17

CBC Follow Up Meeting on Monday, May 20

Add Budget Development Update Presentation to Website on Tuesday, May 21

Principal Update on Friday, May 24

Ongoing BOE Updates via Weekly Communications

Ongoing Updates to Community via Website

THE END