School Pictures Town Hall Presentation 2

7/27/2019 School Pictures Town Hall Presentation 2

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Education Town Hall Meeting 2School Finance and Budget

Saturday, November 23, 2013


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cknowledgementsBlocks TogetherCarey Tercentenary AME Church

Lawndale Alliance

UIC Institute for Policy and CivicEngagement

West Siders Against All School

Closings

Raise Your Hand

Austin Weekly News


3/24

What We Will Cover

School FundingCPS budgetLocal School budgets

TIFs


4/24

Background


5/24

Background

Citing a need to close a loomingbillion dollar deficit and to correcta utilization crisis, the ChicagoBoard of Education voted to close

49 public schools and 1 high schoolprogram in June 2013.

The West Side took a significant hit. 23 of 49 schools are on the West Side

of Chicago, representing 47% of allschool closures in 2013.

The West Side is home to 17% of allschools in Chicago


6/24

Background

Over the last six months since the vote, anumber of community members haveexpressed concern, and have repeatedlyasked CPS questions regarding the impactof school closures as it relates to local

school budgets, the allocation of SafePassage funding, school utilization andclass sizes. As of the date of thispresentation, CPS has not complied with

any requests for information. They haverefused to meet with grassrootsstakeholders and have not providedinformation in response to requests forinformation under the Freedom ofInformation Act.


7/24

The purpose of this presentation isto review publicly availablefinancial information and begin adialogue with our neighbors, CPS ,our elected officials and otherstakeholders in hopes ofdeveloping community-based

solutions to improve our schools.

Purpose


8/24

Budget Overview


9/24

CPS Budgeted Revenues andExpenditures FY 2014

GeneralOperating

Funds

Debt-Service

Funds

Capital

Funds

FY 2014Approved

Budget

2,419,647,597 206,017,103 182,920,000 2,808,584,700

1,621,465,578 195,881,267 25,864,300 1,843,211,145

908,352,249 24,504,972 932,857,221

642,808,552 118,813,349 761,621,901300,000,000 300,000,000

5,592,273,976 545,216,691 508,784,300 6,646,274,967

0 0

2,561,325,520 1,249,947 2,562,575,467

1,251,008,727 378,693 1,251,387,420

1,101,273,272 9,018,932 0 1,110,292,204

257,035,106 257,035,10637,564,891 347,480,268 385,045,159

111,776,198 111,776,198

272,290,262 604,135,710 0 876,425,972

5,592,273,976 613,154,642 349,108,908 6,554,537,526Expenditures Total

Revenue Total

Expenditures

Others

Salary

Benefits

Contracts

CommoditiesEquipment

Transportation

Contingencies

Revenue

Local

State

Federal

Fund BalanceOther Financing


10/24

Account

Group

FY 2013

Amended

Budget

FY 2013

Expenditures as of

6/30/2013

FY 2014 Approved

Budget

Salary 2,655,690,797 2,706,843,165 2,561,325,520

Benefits 899,548,125 883,051,361 1,251,008,727

Contracts 982,520,005 1,032,015,998 1,101,273,272

Contingencies 178,807,287 938,066 272,290,262

Commodities 346,211,422 298,430,939 257,035,106Transportation 121,608,512 109,945,899 111,776,198

Equipment 47,835,583 67,251,463 37,564,891

Others 0 6,236 0

Grand Total 5,232,221,731 5,098,483,127 5,592,273,976

FYE 2013 Surplus 133,738,603.71$

Increase FY 2014 Over FY 2013 (Budgeted) 360,052,245.00$

% Increase FY 2014 Over FY 2013 (Budgeted) 6.9%

Decrease FY 2014 Vs FY 2013 Budgeted Salary (94,365,277.00)$

% Decrease FY 2014 Vs FY 2013 Budgeted Salary -3.6%

Decrease FY 2014 Vs FY 2013 Budgeted Positions (2,014.6)

% Decrease FY 2014 Vs FY 2013 Budgeted Positions -4.9%

CPS Expenditures

Contrary tonews reportsprojecting billiondollar deficits for

FY 2013 and FY2014, CPSended FY 2013with a surplus of$133.7 million.


11/24

Central OfficeContrary to media reports of reductions in the Central Office budget,expenses actually increased by $58.8 million, with an increase of 26

positions between FY 2013 and FY 2014.

Winners Losers Youth Development and

Positive Behavior Supports

Budget decreased from

$15.6 M to $3.3 M

($12.2 M decrease)

Educational Tools &Technologies

Budget decreased from $9.6 Mto $2.8 M($6.8 M decrease)

Talent Office

Budget decreased from $27.4M to $20.8M($6.6 M decrease)

Corporate Accounting

Budget increased from $6.1 Mto $48.9 M ($42.8 M increase)

Information & Technology

Budget increased from $26.8 Mto ($17,150,970 increase)

Strategic School SupportServices

Budget increased from $1M to

$14.8 M ($13.7 M increase)


12/24

School Level BudgetsBy School Type

School Type

FY 2013 Ending

Budget

FY 2014

Approved

Budget

Budget

Difference of

FY14 - FY13

%

Public Schools 3,048,651,116 2,792,841,017 (255,810,099) -8%

Turnaround Schools (Public) 139,395,644 125,220,768 (14,174,876) -10%

Subtotal Public 3,188,046,760 2,918,061,785 $ (269,984,975) -8%

Charter Schools 475,556,655 511,078,376 35,521,721 7%

Total 3,663,603,415 3,429,140,161 $ (234,463,254) -6%

Under the new per pupil budgeting formula, public schools,including turnarounds, lost a total of $269.9 million, whilecharters gained $35.5 million. This translates into an 8%reduction for public schools and a 7% increase for charters.The combined effect for all schools is a 6% reduction.


13/24

School Level BudgetsBy Network

Under the new per pupil budgeting formula, West SideSchools lost $66.7 million, or 11% on average. The formerFulton Network was hit the hardest, with a 17% reductionin total school budgets.

Network FY 2013 Ending

Budget

FY 2014

Approved

Budget

Budget

Difference of

FY14 - FY13

%

Fulton 121,376,022 100,704,928 (20,671,094) -17%

West Side High Schools 164,458,797 142,960,402 (21,498,395) -13%Aus tin-North Lawndale 110,136,820 97,781,435 (12,355,385) -11%

Garfield-Humboldt 87,662,197 81,261,698 (6,400,499) -7%

Pilsen-Little Village 143,863,050 138,135,796 (5,727,254) -4%

Total 627,496,887 560,844,259 (66,652,628) -11%


14/24

School Level BudgetsPositions Lost

Network FY 2012

Ending

Positions

FY 2013

Budgeted

Positions

FY 2014

Approved

Positions

Positions

Difference

of FY14 -

FY13

%

Fulton 1,455.0 1,448.0 1,148.5 (299.5) -21%

West Side High Schools 1,964.4 1,786.7 1,554.9 (231.8) -13%

Austin-North Lawndale 1,258.0 1,243.0 1,079.5 (163.5) -13%

Garfield-Humboldt 980.0 978.5 909.0 (69.5) -7%

Pilsen-Little Village 1,548.0 1,617.0 1,511.5 (105.5) -7%

Total 7,205.4 7,073.2 6,203.4 (869.80) -12%

Under the new per pupil budgeting formula, West SideSchools lost 869.8 full-time equivalents (FTEs), or 12% oftotal staff. The former Fulton Network was hit the hardest,with a loss of 21% of its staff. At the same time, the publicschools lost 3,323.6 positions, for a total reduction of 9%of staff. Lower staffing levels is reportedly leading to

overcrowding in some schools.


15/24

TIFS


16/24

What is a TIF?

A TIF (Tax Increment Financing)district is an area within a city that,

after much careful study by the city

and expert consultants, is found tobe blighted and without hope of

attracting private investment without

some governmental intervention.

Source: ABCs of Tax Increment Financing


17/24

How TIFs Work

TIFs capture money by devoting all new propertytaxes to redevelopment. That means that once aTIF is established, taxing bodies (the City ofChicago's general treasury, the Chicago PublicSchools, the Chicago Park District, etc.) get no new

revenue from the TIF. Their share of the propertytaxes is "frozen" at the level it was at just before theTIF was approved.

The taxes on all the new property value in the TIFgo into the TIF fund and are reinvested in that area.

Over time, the TIF gets more tax revenue than thegeneral funds of the taxing bodies from which thetaxes were diverted when the TIF was created

Source: Cook County Clerk website


18/24

Example

Step Description Amount

1. Base EAV The total value of allproperty in the TIF justbefore the TIF district wasestablished.

$10,000,000

2. Year One EAV The total property value of

the TIF one year after it wascreated.

$11,000,000

3. Growth in EAV The difference between theBase EAV and the currentEAV.

$1,000,000

4. Tax Rate The percentage of EAV(property value) that goes totaxes.

10%

5. Increment The growth in propertyvalue multiplied by the taxrate - i.e., the new taxesthat go to the TIF fund.

10%

Source: Cook County Clerk website


19/24

Long Term Impact of TIFs

Source: Wikipedia


20/24

TIFS There are currently 151 TIFs in the City of

Chicago, 36 of which are on the West Side(City of Chicago website)

Chicago collected approximately $457

million in TIF revenue for the 2012 tax year.(Cook County Clerk)

Since 1986, $5.5 billion has been collectedfrom Chicago TIFs. (Cook County Clerk)

There is approximately $1.7 billion in theTIF fund and approximately $1.53 billionhas been encumbered as of November 13,2013 (WBEZ)


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The city is reluctant to free up theestimated $180 million surplus.

They have identified a laundry list ofother projects, including $40 million- pay down bonds for the

Modern School Across Chicago program $35.1 million-TIFs that have had no

revenue or may have declining revenue $11 million-TIFs that have balances of

less than $1 million $37 million - reserved for single-project

TIFs and future obligations After these projects are earmarked, the

City would have $49 million that have notbeen earmarked for a project.

Source: WBEZ


22/24

Notable West Side School-RelatedTIF-Funded Projects

Collins High School-$30 million TIF-backedrevenue bond issue to cover renovations forCollins High School in 2006. In 2008, the Citywas prepared to demolish the gym for anOlympic velodrome.

Douglas Park Athletic Field and TrackProposed $2 million to reimburse Park Districtfor a field that has been completed and isused by AUSL-Collins Academy and thecommunity

Westinghouse High School-$100 million TIF-backed revenue bond issue to cover theconstruction of a new high school


23/24

What areyoupreparedto do to

helpimproveschools?

Tell usafter the

breakout


24/24

Follow Up:

This presentation and handouts will be posted to

The Lawndale Alliance blog, at

http://lawndalealliance.blogspot.com

Policy on the Ground blog, athttp://policyontheground.net

Scribd.com

Questions may be directed to Valerie F. Leonard

at 773-521-3137 or [email protected]
http://lawndalealliance.blogspot.com/http://policyontheground.net/mailto:[email protected]:[email protected]://policyontheground.net/http://lawndalealliance.blogspot.com/

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School Pictures Town Hall Presentation 2

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