FY2016 AUSTIN Independent School District

RECOMMENDED BUDGET

Paul Cruz, Ph.D., SuperintendentNicole Conley, Chief Financial Officer

August 17, 2015

Attachment 3

FY2016 Recommended BudgetOverview of Expenditures by Fund

Fund FY2015     Adopted 

FY2016Recommended  $ Change 

% Change 

General Fund  $906,666,345  $997,072,730  $90,406,385  10.0%

Food Service 40,891,553 40,886,129 ‐$5,424 0.0%

Debt Service 105,615,701 109,033,174 $3,417,473  3.2%

Total $1,053,173,599  $1,146,992,033  $93,818,434  8.9%

Less Recapture ‐175,539,902 ‐268,092,262 $92,552,360 52.7%Total Operating Expenditures $877,633,697  $878,899,771  $1,266,074  0.1%

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Attachment 3

FY2016 Recommended Budget  Changes Since Revised/Budget Asusmptions

• Projected increase in taxable appraisal roll surpassed initial estimate provided by chief appraiser at TCAD– Currently projecting a 12.5% increase in appraisal values, representing a 

$8.9 billion increase in the appraisal roll over last year’s certified values– Initially estimated only a 6.8% increase over last year’s adopted values– Final certification will not be provided by TCAD until the end of August

• Projected net increase in operating revenue of $9.9 million due to:–     Adjustment in appraisal value provided by TCAD grossed $17.0 million in 

additional local property tax revenue.– Adjustment in recapture from additional local property tax revenue is 

projected to increase $7.1 million• Does not include adjustment for State “hold harmless” to school districts for 

property tax relief

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Attachment 3

FY2016 Recommended Budget Changes Since Revised (cont.)

• The FY2016 Revised Budget incorporates House Bill 1 (HB1) from the 84th Legislative Session. This includes an increase of the Basic Allotment from $5,040 to $5,140, an increase in the Guaranteed Yield from $61.86 to $74.28 and an increase in the Level 1 Equalized Wealth Level from $504,000 to $514,000 in FY2016 & FY2017

• HB1 provides recapture relief of $10.6 million in FY2016. However, this was largely offset by the reduction of the per capita rate which resulted in a decrease of $8.1 million in state aid due to HB1474

• Includes salary increases for regular and part‐time employees– A 3% across‐the‐board salary increase for all regular full‐time and part‐

time employees – Prior (FY2013 thru FY2015) compensation increases (5% total) will 

become permanent• Employee health plan adjustment due to projected decrease in claims

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FY2016 Recommended Budget:  Changes Since Revised Budget (Expenditures) 

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Increases/Decreases in Expenditures Amount

1.5% across‐the‐board salary increase for regular full‐time and part‐time employees ‐$6,780,0001.5% Increase for Teachers, Librarians and Counselors with 5 or more years of service ‐3,650,0003.0% Across‐the‐Board salary increase for regular full‐time and part‐time employees 14,716,848 Texas School for the Blind, Visual Impaired and Deaf Share Service Agreement 3,464Decrease in employee health benefit budget resulting from decrease in claims expenditures from prior year plan redesign ‐2,268,146

Accounting Correction 97,672Subtotal  ‐ Operating Expenditures Increases $2,119,838

Increase in Recapture (resulting from increase in taxable property values) 7,079,443

Total Increase in Expenditures $9,199,281

Attachment 3

Fiscal Year Change July 1, 2016

• Historically the fiscal year has been  September 1st ‐ August 31st

• Effective July 1, 2016, the fiscal year will transition to a  July 1st – June 30th fiscal year

• The TEA requires the district report a 12 month budget and 12 months of expenditures.– The budget to be adopted is for the period of September 1st – August 31st

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Attachment 3

FY2016 Recommended BudgetGeneral Fund Revenue

Revenue Source

FY2015Adopted Budget

FY2016Recommended 

Budget $ Change % 

Change Local $802,185,672  $915,012,255  $112,826,583  14.1%State 57,648,608 48,967,744 ‐8,680,864 -15.1%Federal 21,929,637 23,273,563 1,343,926 6.1%Total  $881,763,917 $987,253,562  $105,489,645  12.0%Less:Recapture ‐$175,539,902 ‐$268,092,262 $92,552,360 52.7%

Operating Revenue $706,224,015  $719,161,300  $12,937,285  1.8%

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Attachment 3

FY2016 Recommended Budget General Fund Expenditures & Fund Balance

FY2015 Adopted  Budget

FY2016Recommended 

Budget Difference % Change

Total Revenue $881,763,917  $987,253,562  $105,489,645  12.0%Less: Recapture ‐175,539,902 ‐268,092,262 ‐92,552,360 52.7%Net Revenue $706,224,015  $719,161,300  $12,937,285  1.8%

Total Operating Expenditures 731,126,443 728,980,468 ‐2,145,975 -0.3%Net Other (Sources) Uses 30,000 30,000 0 0.0%Total  Expenditures and Other (Sources) Uses 731,156,443 729,010,468 ‐2,145,975 -0.3%

Net Change in Fund Balances ‐$24,932,428 ‐$9,849,168 ‐$15,083,260  -60.5%

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Attachment 3

FY2016 Recommended Budget Tax RatesI&S Tax Rate is projected to decrease for two years in a row

Tax RatesFY2014 Adopted

FY2015 Adopted

FY2016   Recommended

M&O $1.079 $1.079 $1.079

I&S $0.163 $0.143 $0.123

Total Tax Rate $1.242 per $100 of taxable value

$1.222 per $100 of taxable value

$1.202 per $100 of taxable value

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To see how the school tax portion of your annual property taxes pay for all the services provided by the Austin Independent School District visit http://www.austinisd.org/budget/mytaxdollar

Attachment 3

Tax Base Breakdown10

51%

15%

10%

8%

6%

10%

Residential Apartments Office BPP Land Industrial, Retail, etc.

Attachment 3

TCAD Net Taxable Value (after freeze)

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$70 $75  $78  $80  $81 

$85 $89 

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

FY2015(Adopted)

FY2016(Preliminary)

FY2016(Revised)

FY2016(Recommended)

FY2017(Projected)

FY2018(Projected)

FY2019(Projected)

Billion

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Attachment 3

The growth in Chapter 41 Recapture is outpacing the growth in M&O Collections

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$793 $906  $949  $994  $1,041 

$176$268

$349 $395 $443

$0

$200

$400

$600

$800

$1,000

$1,200

FY2015Adopted

FY2016Recommended

FY2017Projected

FY2018Projected

FY2019Projected

Millions

Total M&O Collections Chapter 41 Payments

22.1%29.6%

36.8%39.7%

42.6%

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Attachment 3

FY2016 Recommended Budget Forecast13

Actual         FY2014

Adopted     FY2015

Projected    FY2016

Projected      FY2017

Projected      FY2018

Projected      FY2019

ADA 77,980                      77,677                   76,746                     76,467                       76,052                        75,478                         Enrollment 85,372                      85,094                   84,021                     83,715                       83,261                        82,633                         Change in Enrollment (1,144)                       (278)                       (1,073)                      (306)                           (454)                            (628)                             

Total Revenue and Other Resources $818,949,122  $881,814,917  $987,304,562  $1,041,956,706  $1,082,842,548  $1,129,668,605 

Operating Expenditures 714,470,997 731,126,443 728,980,468 714,930,471 716,325,041 717,468,281Chapter 41 123,694,773 175,539,902 268,092,262 348,759,262 394,541,387 443,277,307Other Uses 53,755 81,000 81,000 81,000 81,000 81,000Total Expenditures and Other Uses 838,219,525 906,747,345 997,153,730 1,063,770,733 1,110,947,428 1,160,826,588

Budget Gap (Est) ‐19,270,403 ‐24,932,428 ‐9,849,168 ‐21,814,027 ‐28,104,880 ‐31,157,983Projected Year End Unspent 21,505,473 8,927,511 8,481,135 8,057,079 7,654,225Net Change in Fund Balance ‐19,270,403 ‐3,426,955 ‐921,657 ‐13,332,892 ‐20,047,801 ‐23,503,758

Fund Balance Beginning 240,230,810 220,960,407 217,533,452 216,611,795 203,278,903 183,231,102Fund Balance Ending 220,960,407 217,533,452 216,611,795 203,278,903 183,231,102 159,727,344Assigned, Nonspendable, Comitted ‐36,639,851 ‐34,923,993 ‐30,501,258 ‐30,324,348 ‐30,149,208 ‐29,975,819Unassigned Ending Fund Balance 184,320,556 182,609,459 186,110,537 172,954,555 153,081,894 129,751,525

% Unassigned/Expenditure (Chapter 41 Included) 22% 20% 19% 16% 14% 11%% Unassigned/Expenditure (Chapter 41 Excluded) 26% 25% 26% 24% 21% 18%

Attachment 3

Fiscal Pressure on Reserves

$240

$221

$218

$217

$203

$183

$160

$196.6 $184.3 $182.6 $186.1$173.0

$153.1$129.8

$0

$50

$100

$150

$200

$250

$300

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Millions

Total General Fund Fund Balance Unassigned General Fund Fund Balance

14%11%

14

22% 20% 19%16%

24%

% Unassigned/Expenditure (Chapter 41 Included)

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Attachment 3

Next Steps

• A public hearing on the recommended budget and tax rate is scheduled on August 31, 2015

• The budget will be adopted on August 31st after the public hearing• The Chief Appraiser has notified the District that there will be a delay 

in providing the 2015 certified appraisal roll which is normally provided on or before July 25th each year

• By law, the District’s tax rate must be adopted by September 29th or 60 days after receiving the certified appraisal roll whichever date is later

• Tax rate adoption is likely to be scheduled for September action• There will not be a need to conduct another public hearing on the tax 

rate as long as the rate proposed does not exceed the rate published in the original notice of public hearing

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Attachment 3