G:\Budget\FY2019\Book\PROPOSED\BOE Proposed Submission.docx 1 FY2019 Proposed Operating Budget February 13, 2018 Board of Education Barbara S. Palko, Chairman Jennifer S. Abell – Vice Chairman Mark J. Crawford Victoria T. Kelly Michael Lukas Margaret T. Marshall Virginia R. McGraw Drew Carter, Student Member Charles County Public Schools Dr. Kimberly A. Hill, Ed. D Superintendent Randolph A. Sotomayor Assistant Superintendent of Fiscal Services The Charles County Public Schools Operating Budget was prepared by the Office of Fiscal Services. If there are questions regarding this document, please contact Randolph A. Sotomayor, Executive Director for Finance, Business Administration, P.O. Box 2770, La Plata, MD 20646. 301-934-7350. The Charles County public school system does not discriminate on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity, age or disability in its programs, activities or employment practices. For inquiries, please contact Dr. Patricia Vaira, Title IX/ADA/Section 504 Coordinator (students) or Nikial M. Majors, Title IX/ADA/Section 504 coordinator (employees/adults), at:Charles County Public Schools, Jesse L. Starkey Administration Building, P.O. Box 2770, La Plata, Maryland 20646, or by phone: (301) 932-6610 or (301) 870-3814. For special accommodations call (301) 934-7230 or TDD 1-800-735-2258 two weeks prior to the event.
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The Charles County Public Schools Operating Budget was prepared by the Office of Fiscal Services. If there are questions regarding this
document, please contact Randolph A. Sotomayor, Executive Director for Finance, Business Administration, P.O. Box 2770, La Plata, MD
20646. 301-934-7350.
The Charles County public school system does not discriminate on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity,
age or disability in its programs, activities or employment practices. For inquiries, please contact Dr. Patricia Vaira, Title IX/ADA/Section 504 Coordinator
(students) or Nikial M. Majors, Title IX/ADA/Section 504 coordinator (employees/adults), at:Charles County Public Schools, Jesse L. Starkey
Administration Building, P.O. Box 2770, La Plata, Maryland 20646, or by phone: (301) 932-6610 or (301) 870-3814. For special accommodations call
(301) 934-7230 or TDD 1-800-735-2258 two weeks prior to the event.
county and the Board of Education between fiscal years 2013 through 2016. Starting in
FY 2017, the incremental “normal cost" for teachers’ pension is the burden of the Board
of Education. “Normal cost” is a rate determined by the contributions that should have
been paid for a period.
Implications of not funding
The Board is required to comply with the Act.
Non-Public Placement Tuition For special education students placed in non-public day and residential programs, the
counties are responsible for the local share of the basic cost of educating a child
($26,003). The cost above the base amount is shared between the state and the local
school boards on a 70 percent local/30 percent state basis. Expenditures for students
placed in non-public institutions are reimbursed by the state on a proportional basis.
The ten-year annual expenditure growth rate is 2.5 percent. Expenditures associated with
students placed in non-public institutions varies based on the student’s needs and required
care. In FY 2017, the average expenditure per student was $58,194 (serving 63 students)
compared to a budget of $51,587 per student. This request would provide per pupil
funding at an estimated level of $60,661 for an anticipated 61 students.
Implications of not funding
Any budget shortfalls in expenditures will result in tradeoffs from other budget line-
items.
Maryland Association of Boards of Education (MABE) Insurance Premium Increase Founded in 1957, the Maryland Association of Boards of Education is a private, non-
profit organization dedicated to serving and supporting boards of education in Maryland.
Members benefit in numerous ways from participating in the MABE Insurance Trusts,
the Group Insurance Pool and the Workers' Compensation Fund.
This budget request reflects a 10 percent insurance premium increase for workers’
compensation, liability and property.
Implications of not funding
Not funding this request may result in full-time equivalent (FTE) position reductions or
other budget cuts. Insurance cost increases are mandatory and may impact the ability to
provide wage adjustments.
Nurses’ Contract Funding includes estimated contract increases of 3.2 percent for benefits and wages.
Implications of not funding
Not funding this request may result in a reduction of nursing services provided to
intensive case management, and collaboration/training with parent, teachers and
community service providers.
Implications of not funding
By not funding this request, the school system is less able to meet the growing behavioral
needs of our youngest students. Without intervention, students can not learn and will not
make appropriate academic progress. In addition, the classroom disruption is having an
adverse effect on peers as well as the teaching staff.
English Language Learners and Special Education Instructional Assistants The addition of 10 permanent instructional assistants for the 2018-19 school year will
improve instructional and behavioral outcomes for students with disabilities in regional
programs and inclusive settings. In addition, the ELL student population continues to
grow therefore more support is needed especially at the high school level.
Implications of not funding
Not funding these positions will likely result in teachers being less able to adequately
implement both instructional supports as well as behavioral supports in the general
education setting, small group settings, and regionalize programs, particularly in those
schools that have especially high special education numbers. By not funding the ELL
positions, we are limiting our ability to provide the intensive support student require to
learn academic content when language is a barrier.
Psychologists Our elementary schools, with the exception of Ryon and Parks, currently have a school
psychologist assigned two days a week. During this time, they consult with
administrators, teachers and parents, provide direct intervention to students, conduct
psychological assessments, and attend all SST, IEP and section 504 meetings. It is
critical to note that several of our elementary schools have student populations that
exceed the size of several of our middle schools who have full-time school psychologists
assigned. In light of the increasing student population and the instructional and mental
health needs of our students, it is critical to increase our psychological services staff to
better meet the needs of our student population.
Implications of not funding
Not funding these positions will likely jeopardize the response in meeting the needs of
•Trends in Full-time Equivalent (FTE) Student Enrollments
For FY 2019, preliminary estimates for student enrollment are expected to reach 26,546, an increase of 1.8 percent (460.0 students more than the previous year).
FISCAL YEAR
FULL-TIME
EQUIVALENT CHANGE %
2008 25,843.3 46.3 0.2%
2009 25,860.5 17.3 0.1%
2010 25,896.8 36.3 0.1%
2011 25,954.5 57.8 0.2%
2012 25,869.5 (85.0) -0.3%
2013 25,717.0 (152.5) -0.6%
2014 25,524.0 (193.0) -0.8%
2015 25,413.0 (111.0) -0.4%
2016 25,470.8 57.8 0.2%
2017 25,521.3 50.5 0.2%
2018 26,085.0 563.8 2.2%
2019 Budget 26,545.0 460.0 1.8%
(300.0)
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Student EnrollmentChange in Full-Time Equivalent (FTE)
35%
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FY 201826,085 FTE
FARMS Sped. Ed. ELL Gen. Ed.
4
•Student Enrollment Special Populations
22%
9%
1%68%
FY 200825,843 FTE
FARMS Spec Ed. ELL Gen. Ed.
State revenues are based on changes in enrollment, county wealth and free-and-reduced meals program eligibility relative to all other counties.
FTE enrollments increased from the previous fiscal year by 563.8 students, or 2.2 percent.
State Compensatory Aid is based on eligible free-and-reduced-price meal students (FARMS). FARMS student enrollment increased by 281 students from 8,852 students last fiscal year. The total FARMS rate is 35.9 percent.
State funding will change based on the legislative budget process, which will end in mid-April.
5FY 2019 Proposed Operating Budget
•State Funding$11.8 Million Increase
($5.0)
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State Incremental Funding$ in Millions
Note: FY 2012 reflects federal ARRA and Ed jobs funding.
Total county funding request is 7.0 percent increase from the current fiscal year.
State Law (Article 5-202) requires the minimum Maintenance of Effort (MOE) funding level to be no less than the prior year’s per pupil funding amount, adjusted by the change in enrollments. The County MOE funding requirement is $3.9 million more than FY 2018.
County incremental funding does not include allocations to support the teachers’ pension in accordance with the Budget Reconciliation and Financing Act of 2012 (Senate Bill 1301/House Bill 1801).
6FY 2019 Proposed Operating Budget
•County Funding $12.3 Million Increase
($1.0)
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$19.0
$24.0
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County Incremental Funding$ in Millions
Note: 2013 includes state retirement
Total use of fund balance will be reduced to $3.2 million for general fund operations to reflect current reserves.
If there is no budget surplus in FY 2018, the reserves for best practices will be jeopardized.
Fund balance is primarily managed via employee lapsed salary savings and other non-personnel items.
7FY 2109 Proposed Operating Budget
•Fund Balance$1 Million Decrease
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Teacher Attrition Compared to the Unemployment Rate
Percent Attrition Percent Unemployment
Source Data: US Department of Labor and Statistics; Annual Washington Metropolitan Area (Not Seasonally Adjusted)
The Healthy, Hunger-Free Kids Act of 2010 Requires the school system to set meal prices equal to (or above) the Federal reimbursement rate for free-and-reduced meals.The law limits the amount of the increase to $0.10 in any one-year period.
No Meal Price IncreasesLunch prices for the 2018 – 2019 school year will remain the same at $2.65 for elementary students and $2.90 for secondary students.
Food Nutrition Service Meal Price Increase
FY 2019 Proposed Operating Budget 8
•Revenue Schedule
9
Amount $
FY 2018 Revenue Budget 352,242,260
Requested incremental changes:
County funding - MOE - 563.8 student increase 3,876,896
County funding additional base 8,437,304
Total county funding request - 7.0 percent increase 12,314,200
State funding - full funding GCEI -7.0 percent increase 11,838,180
Fund balance transfer (1,000,000)
Total requested revenue incremental change 23,152,380
FY 2019 Revenue Budget 375,394,640
Percent increase 6.6%
*Note: No Lunch Price Increase
FY 2019 Proposed Operating Budget
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$ T
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Fiscal Year
Contract Assumptions
Mandatory Cost
Revenues
• Mandatory costs include cost elements that are vital to the operations of the school system.
• Since FY 2014, 101 FTE positions were reduced ($5.9 million) to help balance the operating budget.
• In FY 2010, STEP/LEVEL increase was granted during the fiscal year while revenues reflect sunset funding from the Bridge to Excellence (BTE) initiative.
•Historical Incremental Funding Trends
10FY 2019 Proposed Operating Budget
•FY 2018 BudgetOperating Cost Per Pupil = $13,724
(An increase of $237.00 from the previous fiscal year)
Instructional NeedsTeachers for Enrollment Growth, ASPIRE Program,Support staff (Pyschologists,
Special Ed and English Language Learners)
Student Transportation25 bus replacements3 special education routes.
Contracts & MandatesTeachers’ pension,MABE insurance, Non-public placement,Nurses’ contract, Capital Projects.
FY 2019 Proposed Operating Budget
13
This request is to set aside funding for FY 2019 collective bargaining including STEP/LEVEL increases and salary scale compression with the Education Association of Charles County (EACC) and the American Federation of State, County and Municipal Employees (AFSCME).
The system is behind two STEP/LEVEL increases for FY 2011 and FY 2015.
The chart includes data based on the current scales and salary grades prior to collective bargaining, which can change how salaries are distributed. There is a one percent COLA provision included in this proposal. One percent COLA is approximately $2.2 million.
14FY 2019 Proposed Operating Budget
•COLLECTIVE BARGAINING ASSUMPTIONS$13.9 Million Description Estimate $
One STEP/LEVEL $6,022,500
Two STEP increases behind (FY 2011 and FY 2015) $5,749,300
15FY 2019 Proposed Operating Budget
•Health Care Costs Insurance
The budget includes a cost increase of $2.0 million, or 5.0 percent over the FY 2018 budget.
Funding would provide for anticipated industry trend cost increases.
An ongoing insurance committee is reviewing health care costs. The potential impact of the Affordable Care Act is under review.
Changes in benefits are subject to collective bargaining and directly impact overall compensation.
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General Fund Actual Expenditures($ in Millions)
16FY 2019 Proposed Operating Budget
•Student Transportation - $1,413,000
The school system’s operational bus fleet is 366 (358 contractual and 8 owned by CCPS).
This request provides funds to replace 25 buses beyond the 15-year limitation and three additional bus routes to accommodate student needs.
State transportation funding represents 40.0 percent of transportation expenditures.
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17FY 2019 Proposed Operating Budget
•Teachers’ Pension $865,700
The budget increase required by the Budget Reconciliation and Financing Act of 2012 (BRFA [Senate Bill 1301/House Bill 1801]) to support the teachers’ pension is $865,700 more than last fiscal year.
The teachers’ pension cost was shared between the county and the Board of Education between fiscal years 2013 through 2016.
Starting in FY 2017, the incremental ‘normal cost’ for teachers’ pension is the burden of the Board of Education.
Total FY 2018 cost is $8.1 million.
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2013 2014 2015 2016 2017 2018Budget
2019Request
Pension Funding Incremental Requirements$ in Millions
• Capital Projects - $1,069,680
To restore base budget reductions implemented in FY 2018 in order to balance the budget.
Funding will be restored to support various maintenance projects at the schools.
• Maryland Association of Boards of Education insurance premium - $181,300
This budget request reflects an insurance premium increase for workers’ compensation liability
and property insurance (10 percent increase).
• Nurses’ contract - $103,700
Contract increases of 3.2 percent increase, for benefits and wages.
FY 2019 Proposed Operating Budget 18
•Other Mandatory Costs
• Teachers for Enrollment Growth - $1,807,000Funds would support an estimated 461 additional students based on a 25-to-1 student-to-teacher ratio (18 additional teachers).
• ASPIRE Program - $842,000Funds would support positive classroom environment for elementary students who demonstrate persistent maladaptive behavior (four teachers, four instructional assistants and four psychologists).
• Instructional Assistants - $331,000Support staff for the delivery of special education instruction (five instructional assistants) and support the English Language Learner students (five instructional assistants).
• Psychologists - $216,300Support the instructional and mental health needs of our students.
FY 2019 Proposed Operating Budget 19
•Other Cost Increases
•Expenditure Schedule
20
Amount $
FY 2018 Expenditure Budget 352,242,260
Requested cost changes:
Collective bargaining assumptions 13,986,300
Health care costs 2,000,000
Bus contracts (25 bus replacements, 3 special ed. routes) 1,413,000
Teachers for enrollment growth 1,807,000
Capital Projects 1,069,680
Teachers' pension (SB1301) 865,700
ASPIRE program 842,000
Non-public placement tuition 336,400
Special education and English language learner instructional assistants 331,000