Dr. Gregory E. Thornton CEO, Baltimore City Public Schools FY16 Budget Update 1 Community Budget Forum Mergenthaler High School March 12, 2015 Donald Kennedy, Chief Financial Officer
Dec 21, 2015
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Dr. Gregory E. ThorntonCEO, Baltimore City Public Schools
FY16 Budget UpdateCommunity Budget ForumMergenthaler High School
March 12, 2015
Donald Kennedy, Chief Financial Officer
Agenda2
• Executive Summary
• Key Investments
• Budget Challenges
• How we are addressing the challenge
• Budget Timeline
World Class K-12 School Systems Success Drivers
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Driver 1. Early learning - focus on well-being of all children beginning well before kindergarten and throughout grades K-4
Driver 2. Pathways for success - creating a system where factors of race, gender, and socioeconomic status are not barriers to student educational and career success
Driver 3. Teacher selectivity, quality, and growth - prepare and mentor high-performing classroom practitioners
World Class K-12 School Systems Success Drivers
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Driver 4. Focus on learning – place the learner and learning at the center of the system, focusing on experiential, participatory, imaginative, and connected learning
Driver 5. Education linked to economic development – produce graduates who have the right knowledge and skills to succeed
Driver 6. Cultural expectation of value – create a system where students, parents, employers, and citizens are confident of the system to deliver
Executive Summary5
1. Costs are rising faster than revenue and therefore we are continuing to work on strategies to balance the budget
2. Currently, the proposed state budget reduces City Schools’ funding by $35.6M
3. Without considering new priorities, the beginning budget gap was $108M
4. To date, we have identified $63.7M in budget solutions
5. We will align available resources that best allows the district to improve student outcomes
Agenda6
• Executive Summary
• Key Investments
• Budget Challenges
• How we are addressing the challenge
• Budget Timeline
Proposed Key Investments in Schools
• Standard of Care
o Fine Arts Initiative: 45 Minutes of Art instruction
for all students in grades 2 - 5; increased
investment of ~$2.8M)
o Middle School Athletics
Increased investment for intramural sports of
~650k
Establish basketball and track and field at 39
middle school programs
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Proposed Key Investments in Schools
• Tiered Supports
o Individualized approach to supporting schools with
the greatest need
• Continue to support established academic programs
o International Baccalaureate Programs (3 schools),
Ingenuity Project, UMBC STEM program
partnership, Additional instruction at Baltimore
School for the Arts
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• Continue to offer Full Day Pre-k
o 217 pre-k classrooms with the capacity to serve
4,991 students (max of 23 students per
classroom)
• Increased ESOL services
o 15% increase in ESOL students
o $2M increased investment in school based staff
Proposed Key Investments in Schools
• Increase CTE allocation to launch new Advanced Manufacturing and Computer Science pathways
o Advanced Manufacturing program began at Carver
HS in SY 2014-2015
o Computer Science/Code.Org pathway began in SY
2014-2015 at Digital Harbor, Coppin Academy and
Poly; will expand to Reginald F. Lewis and REACH
in SY2015-16
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Proposed Key Investments in Schools
• Multiple Pathways to Graduation
o Differentiated supports and programming to meet
the needs of individual students and increase
opportunities for re-engagement and crisis
transition
• $5M investment in technology to engage our students in current methods of learning
• Provide interim foundation support for small schoolso $2.2M distributed to 19 schools with an average
base enrollment of 212 students
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Proposed Key Investments in Schools
Agenda12
• Executive Summary
• Key Investments
• Budget Challenges
• How we are addressing the challenge
• Budget Timeline
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Salaries and Wages53%
Fringe20%
Contractual Services
12%
Materials4%
Utilities & Other Charges
3%
Equipment1%
Transfers5%
Principal & Interest2%
Contingency Reserve
0%
FY15 CITY SCHOOLS’BUDGET
BYCOST OBJECT
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-
100
200
300
400
500
600
700
800
Salaries and Wages
Fringe Contractual Services
Materials Utilities & Other Charges
Equipment Transfers Principal & Interest
Mill
ions
FY13 Actual FY14 Adopted FY15 Proposed
CITY SCHOOLS’ MAJOR COST ELEMENTSCHANGE OVER THREE YEARS
$32M increase in sa lar ies & wages
$31M increase in f r inge benefi ts
State Revenue Recurring and Additional Pressures
Foundation (4,351,357) Direct School Support (24,357,710) GCEI (11,409,696) 21st Century Bldgs. & Maint. (13,000,000) Compensatory (9,863,189) Non-Recurring Revenue (Fund Balance) (27,526,157) Limited English Proficient 1,863,211 Fixed Cost Increases (Fringe) (3,827,274) Special Education (3,130,677) Continuation of Full Day Pre-K (4,014,611) Transportation 336,788 Guaranteed Tax Base (7,236,865) (72,725,752)
Supplemental Grant - Other (Stipends) (1,832,136) Non - Public -
Total State Revenue (35,623,921)
Unpriced Solutions: Central Office Impacts Implemented SolutionsContract Review Vacancy Savings (Reduction in Surplus) 14,946,576 Labor changes (contracts, postions) Enrollment Normalization of Traditional Schools 14,810,604 Health Care Changes Level Funding 9,998,720 Reduction of Temporary workers Direct Supports for Schools 6,283,163 District Reorganization Foundation Funding for Small Schools 847,000
Central Office spending analyses Closing Schools 863,484 Transportation improvements Encumbrance Reduction 1,000,000
Strategic Budget Analysis Teams Prioritized Spending 15,000,000
63,749,547
Priorities
Lead Teachers (763,173) Fine Arts Build Out (1,690,337) Middle School Athletics (650,633) Replenish Fund Balance (1,000,000) Limited Summer School (1,900,000) Academic Technology Strategies (5,000,000) Maintain Operations Service Level (3,420,430)
(14,424,573)
Remaining Deficit (59,024,699)
Total Beginning Deficit (108,349,673)
Total Solutions 63,749,547
Priorities (14,424,573)
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FY16 Budget Development SnapshotAs of March 6, 2015
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CITY SCHOOLS’ FY16 BUDGET CHALLENGE
$32.8
$16.0
$14.9
$44.6
$35.6
$27.5
$28.2
$13.0$4.0
-
20
40
60
80
100
120B
udge
t C
hallen
geM
illi
ons
Agenda18
• Executive Summary
• Key Investments
• Budget Challenges
• How we are addressing the challenge
• Budget Timeline
Our challenge: how do we invest in our students in light of budget
pressures? 19
Blended model of solutions
1. Prioritized spending
2. Improved efficiencies in processes
3. Cost analysis of major cost drivers
4. Analysis of use of contracts
5. Staff adjustments
FY16 Budget Solutions20
Strategic Budgeting Process Flow3/2/2015
Cabinet
• Establish District Goals and Board Priorities• Drive District Goals and Board Priorities• Inquiries/Questions• Decision Making Body• Review Recommendations and proposed
solutions• Build Central Offi ce Budgets
Strategy Team
• Brainstorm Solutions/Responses• Define further information needed• Review data analyses and
recommendations from the project team
• Recommendations and solutions to cabinet
• Board Priorities and District Goal Alignment
Project Team
• Deep Dive in to Cabinet & Strategy Team inquiries• Brainstorm Solutions/Responses• Identify key metrics to define data needs• Analysis on core functions (ROI)• Understanding existing processes• Logistically execute centralized budgets• Think through solutions/approaches for 31 cost savings• Provide Action Team with data parameters for analysis• Provide recommendations and data analyses to strategy
team• Monitor project timeline and information work flow
STRATEGICBUDGET
SOLUTIONS
Action Team
• Pull Data• Consolidate & Manipulate Data• Identify which data systems and data
sets to pull to provide analysis• Potential solutions and
recommendations
FY17 Cost Reduction Initiatives21
1. Reduce health care and benefit costs
2. Determine best model for providing student transportation
3. Implement an early retirement incentive
4. Accelerate school closures
5. Leverage best practices to ensure revenues balance expenses
Agenda22
• Executive Summary
• Key Investments
• Budget Challenges
• How we are addressing the challenge
• Budget Timeline
Timeline23
• March 11: Student Dialogue• Baltimore Design School• 5:30 pm
• March 12: Public Forum• Mergenthaler• 5:30 pm
• March 14: Public Forum• Carver High School• 10:00 am
• April 28: Board Vote
Comments or Questions?
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Donald Kennedy, Chief Financial [email protected]
410-396-8810
Ryan Hemminger, Director – [email protected]
443-984-2054
Board of School CommissionersShanaysha Sauls, ChairDavid Stone, Vice-ChairLisa AkchinCheryl CascianiLinda ChinniaMarnell CooperTina Hike-HubbardMartha James-HassanPeter KannamEddie Hawkins Jr., Student Commissioner
Senior Management TeamGregory Thornton, Chief Executive OfficerNaomi Gubernick, Chief Of StaffTheresa Jones, Interim Achievement and Accountability OfficerLinda Chen, Chief Academic OfficerLisa Grillo, Human Capital OfficerDonald Kennedy, Chief Financial OfficerKeith Scroggins, Operations OfficerKenneth Thompson, Chief Technology OfficerTammy Turner, Chief Legal Counsel
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