NEW HANOVER COUNTY SCHOOLSPROPOSED COUNTY BUDGET REQUEST

2015-16April 7, 2015

Current Budget Summary Estimated Revenue State Budget Issues Proposed County Request Capital Outlay (Handout) Operating Request (Handout)

Next Steps

Topics

Instructional 69%

Support21%

Ancillary5%Other

5%

Beginning Budget By Purpose

New Hanover County

29%Federal

10%

State55%

Other2%

Fund Balance4%

Beginning Budget By Source

Operating Budget:• Requesting $2,700 per pupil• Estimate between $2,640 and $2,700 per pupil

$3.4 Million at $2,640 $5 Million at $2,700

Capital Outlay:• $3 Million for each of next two years• Increase of $250,000 per year

Estimated County Revenue

$2,662

$2,528 $2,498

$2,457

$2,383

$2,485

$2,534

$2,700

County Per Pupil Funding

Operating Request Summary

NHCSCharter Schools Total

Current Funding $65,940,358 $1,938,751 $67,879,109

Requested Increase $4,991,342 $126,749 $5,118,091

Requested Total

$70,931,700

$2,065,500

$72,997,200

Current Enrollment 26,019 765 26,784

Estimated Enrollment 26,271 765 27,036

Current Per Pupil $2,534

Request Per Pupil

$2,700

Capital Outlay ProposalCategory 2015/16 2016/17 Total

Repairs and Renovations

$3,738,500 $ 3,529,500 $7,268,000

Technology 1,835,100 4,104,600 5,939,700

Furniture & Equipment

304,175 361,100 665,275

Vehicles 304,900 187,900 492,800

Total $6,182,675 $8,183,100 $14,365,775Revenue by Source 2015/16

Lottery $1,590,000

Capital Fund Balance Appropriation 300,000

Child Nutrition Fund Balance 115,400

State Equipment Reserve 550,000

County Appropriation Request 3,000,000

General Fund Balance Appropriation 627,275

Total $6,182,675

Detailed Listing shows highest priority projects recommended for funding over the next two fiscal years

Major Projects include:• Sidbury Road Transportation Division• Lakeside Facility Demolition and Site Repair• Laney Bathroom Renovations and Painting• Howe Window and HVAC Replacement• Roe Facility Upgrades• Phase II of system wide computer replacements• Furniture & Equipment replacement• Replacement of 3 Trucks, 2 Vans and 1 Activity Bus

Capital Priorities

% Change

Classroom Teachers -3.5%

Teacher Assistants -22.9%

Textbooks -78.1%

Instructional Supplies -51.9%

Instructional Support -9.8%

Staff Development, Literacy Coaches, School Technology, and Mentor Teachers

-100%

Central Office Administration -22%

Non-Instructional Support -8.8%

Assistant Principals -18.9%

STATE FUNDING FORMULA COMPARISON2008-09 TO 2014-15:

Second Phase of Teacher Pay Raise Initiative Anticipate Increase of Minimum from $33,000

to $35,000 2% to 3% Step increase for School

Administrators because current scale falls below teacher steps

Growth: Projected NHCS growth of 300 students Per pupil increase no longer in continuation

budget

Driver Education funding eliminated 22% of State Teacher Assistant funding is non-recurring

State Budget Issues

Governor’s Budget includes: Growth Funding Continuation funding for Teacher Assistants Teacher/School Administrator Pay Raise

• Continued top of the scale bonuses to hold harmless

• Master’s Pay for Science, Technology, Math (STEM) and Special Education

Increase of $27.48 per pupil for Classroom Resources

State Budget Issues

Sales Tax Distribution:• Several bills under consideration related to sales

tax that could negatively effect revenue in New Hanover County

• Legislature considering shifting sales tax away from retail and tourism centers through per capital distribution, but services still have to be provided

• Could also impact how funding is distributed to municipalities within New Hanover County

State Budget Issues

Budget Recommendation Aligned to Identified Board Budget Priorities:• Professional Development• Growth Funding• Maintain Teacher Assistants• Additional Instructional Resources• Risk Management

Proposal also includes:• Local cost for estimated state mandated changes,

including salaries, benefits and driver education• School and Departmental Budget Priorities

Local Operating Proposal

State Budget Issues Impacting Local Budget• Driver Education:

Board requesting flexibility to charge actual cost

Local request to fund difference if flexibility not granted

• Growth Funding: To maintain mid-year increase and

anticipated growth for next year Also included in Governor’s Budget

Operating Budget Priorities

State Budget Issues Impacting Local Budget• Teacher Assistants:

To maintain current formula of k-1 1:23• Salary/Benefit Increases:

Cost of anticipated state salary and benefit changes for local employees

Includes Board Salary Increase based on Average Teacher Increase

• Supplement Increase for Veteran Teachers Increase from 8% to 9% at steps 26+

Operating Budget Priorities

School Priorities:• With decreased staffing, schools need additional

support through professional development and administrative support as follows:

New Professional Development Allotment Additional Assistant Principals for High

Schools Additional Social Workers Additional Custodial and Clerical Support Mental Health and Nursing Support

Operating Budget Priorities

Departmental Priorities:• Additional Positions will increase services to schools:

Clerical and Instructional Support Positions for Finance, Special Education and Testing to improve services provided to schools

Additional Instructional Support and reassigned duties will increase support for Health/PE, ELA (English/Language Arts) and STAE (Striving to Achieve Excellence).

Risk Manager to expand services and reduce costs related to workers compensation

Additional Painter/Grounds Technician

Operating Budget Priorities

Departmental Priorities:• Additional School Support:

New Board Scholarship fund for future teachers

Shift portion of pre-K cost to local to free up federal funds for Title 1 Schools

Software, Instructional Materials, and support for summer programs to support instructional improvement initiatives

Athletic Stipend Changes to bring stipends in line with state average

Operating Budget Priorities

Departmental Priorities:• New Suspension Center at Roe to include:

Move current Lakeside Pathways Program (6-12 Long-Term Suspension Program from Mosley to Roe)

Add 7.5 positions to support new Short-Term Suspension Center• Principal would be hired in January• Other staff hired when building ready for use• 2016-17 budget would include positions to

support Transition/Step-down/Re-entry program

Operating Budget Priorities

Recommended Appropriation to support one-time items including:• Transfer to Capital Outlay• One-Time $500 Bonus for classified/central

office staff: These employees received $50/mo. pay

raise last year when other state employees received $100/mo.

Will maintain undesignated Fund Balance close to Board’s goal of 8% of Operating Budget

Fund Balance Appropriation

April 21st - Budget Hearing May 5th:

Board Approval of County Request Budget amendment for capital funding

currently available

June Budget Work Session To Finalize Recommendation based on

County Appropriation and State Legislative Changes

July Approval of Budget Resolution

Next Steps