Update on 2013-14 Finances & 2014-2015 Budget Process March 17, 2014
Update on 2013-14 Finances &2014-2015 Budget Process
March 17, 2014
7.0% Assessed Value Growth Enrollment Growth of 1,460 Students - 2.1% TRS Supplement (one-time) $4.6M
ONGOING REVENUE ASSUMPTIONS
7.0% Assessed Value Growth Enrollment - PASA “most likely” estimate (1.8 to 2.0%) 2.0% to 3.0% Growth for Other Income No new State revenue
2Source: FBISD Finance
2014-15 BUDGET ASSUMPTIONS
-3.0%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
Annual Growth/(Decline) Net Assessed Property Value 1994 - 2014
3Source: FBISD Finance
Average Student Enrollment
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E
55,000
57,000
59,000
61,000
63,000
65,000
67,000
69,000
71,000
73,000
75,000
59,217
61,011
62,657
65,92766,792
67,78068,507
69,066 68,710 68,96469,588
70,857
72,317
4Source: FBISD Finance & District Demographer
Average Student Enrollment
2009 2010 2011 2012 2013 2014 2015 2016 2017 201855,000
60,000
65,000
70,000
75,000
80,000
68,507 69,066 68,710 68,96469,588
70,85772,317
73,70875,066
76,482
5Source: FBISD Finance & District Demographer
Source: FBISD Finance 6
2013-14 2014-15 2015-16 2016-17 2017-18($M's) Projection Projection Projection Projection ProjectionLocal 285.3$ 303.3$ 323.0$ 344.2$ 366.9$ State 244.9$ 250.2$ 238.3$ 228.0$ 216.7$ Federal 6.3$ 6.4$ 6.5$ 6.6$ 6.8$
Total 536.5$ 559.9$ 567.8$ 578.9$ 590.4$ Increase $ 49.6$ 23.4$ 7.9$ 11.1$ 11.5$ Increase % 10.2% 4.4% 1.4% 2.0% 2.0%
Revenue by SourcePreliminary
73 Teachers for Enrollment Growth - $4.2M New TRS Supplement (ongoing) - $5.0M 3% Increase in Non-Staff Expenses - $2.0M No Other Investments Shown at This Time
ONGOING EXPENDITURE ASSUMPTIONS
2% Increase in Payroll (combination new teachers and salary increases)
2% Increase in Non-Staff Expenses Administration will Manage with Goal of Balanced Budgets
7Source: FBISD Finance
2014-15 EXPENDITURE ASSUMPTIONS
Source: FBISD Finance
Expenditures by Object Code
8
2013-14 2014-15 2015-16 2016-17 2017-18($M's) Projection Projection Projection Projection ProjectionPayroll Costs (61XX) 427.7$ 439.1$ 447.9$ 456.8$ 466.0$ Prof. & Cntr. Serv.(62XX) 18.7 19.2 19.6 20.0 20.4 Supp. & Mat. (63XX) 35.8 36.7 37.4 38.2 39.0 Other Oper. Costs (64XX) 10.3 10.6 10.8 11.0 11.2 Capital Outlay (66XX) 5.1 2.4 2.4 2.5 2.5 Operating Expenditures 497.5$ 507.9$ 518.1$ 528.5$ 539.0$ -$ -$ -$ -$ -$
Other Uses 10.2$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Expenditures 507.7$ 507.9$ 518.1$ 528.5$ 539.0$
Increase $ 37.2$ 0.3$ 10.2$ 10.4$ 10.6$ Increase % 7.9% 0.1% 2.0% 2.0% 2.0%
Preliminary
Source: FBISD Finance 9
Funds AvailablePreliminary
2013-14 2014-15 2015-16 2016-17 2017-18($M's) Projection Projection Projection Projection Projection
Revenue 536.5$ 559.9$ 567.5$ 578.4$ 589.6$ Increase $ 49.6$ 23.4$ 7.6$ 10.9$ 11.3$ Increase % 10.2% 4.4% 1.4% 1.9% 1.9%
Expenditures 507.7$ 507.9$ 518.1$ 528.5$ 539.0$ Increase $ 37.2$ 0.3$ 10.2$ 10.4$ 10.6$ Increase % 7.9% 0.1% 2.0% 2.0% 2.0%
Surplus 28.8$ 51.9$ 49.4$ 49.9$ 50.6$
10
State Peers
Cypress-FairbanksNorthsideNorth EastKatyPlanoConroeLewisvilleKleinRound Rock EDS = Economically Disadvantaged Students
Fort Bend ISD 2013: Enrollment = 69,123EDS% = 38.6%
State Peers Parameters: 2013Enrollment = 45,000 - 109,000 EDS% = 27.5% - 53.5%
11
2004 2005 2006 2007 2008 2009 2010 2011 2012 20138.0
9.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
17.0
18.0
14.7
17.0
16.015.4
13.7
15.3
10.811.3
14.0
12.6
Student/TeacherSource: FBISD Finance
FBISD Teacher Turnover
12
Cy-Fair
Northsid
e
North East Katy
Plano
Conroe
Lewisv
ille Klein
Round Rock
Fort
Bend10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
12.0
10.811.1
13.2
11.1
11.9
13.5
12.112.5 12.6
Source: FBISD Finance
Teacher Turnover 2013 State Peers
13
Beginning; 3.8%
1-5 Years Experience; 23.8%
6-10 Year
s Ex-pe-ri-
ence;
27.4%
11-20 Years Experience; 29.2%
Over 20 Year
s Ex-pe-ri-
ence;
15.8%
Source: FBISD Finance
FBISD Teacher Experience
14Source: FBISD Finance
FBISD Teacher Turnover
6 to 10 years25%
0 to 5 years52%
11 to 15 (years)12%
21 to 25 years3%
16 to 20 years4%
25+ years4% Teacher Turnover
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
62,000
64,000
Katy ISD
Lamar CISD
Cy-fair ISD
Fort Bend ISD
15Source: FBISD Finance & District Websites
2013-2014 Teacher Pay
Low Teacher Pay Compared to Peers High Teacher Turnover Compared to Peers Equity Issues Not Addressed By TASB Study Stipend Recommendations Not Implemented
16Source: FBISD Finance
2013-14 Compensation Issues
$50,000 Starting Pay Percentage Increase Ranges from 4.0% to 8.6% (5.8% avg.) Salary Increase Ranges from $2,214 to $4,147 ($3,018 avg.) Teacher Salary Leader through Year 14 on Scale Proposed pay increase of 4% of midpoint for non-teaching
employees Cost of $14.1M for Teachers & $5.4M for Others = $19.5M
17Source: FBISD Finance
2014-15 Proposed Teacher Pay Scale & General Increase
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
62,000
64,000
FBISD 2014-15
FBISD 2013-14
18Source: FBISD Finance & District Websites
Proposed 2014-15 FBISD Teacher Pay
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
62,000
64,000
Katy ISD
Lamar CISD
Cy-fair ISD
Fort Bend ISD
19Source: FBISD Finance & District Websites
2014-2015 Teacher Pay Scenarios
Katy +3%Lamar +3%Cy-Fair also at $50K +$2K on scale (4.7%)
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
62,000
64,000
Katy ISD
Lamar CISD
Cy-fair ISD
Fort Bend ISD
20Source: FBISD Finance & District Websites
2014-2015 Teacher Pay Scenarios
Katy +4%Lamar +4%Cy-Fair also at $50K +$2K on scale (4.7%)
Approve proposed pay plan by April 7th
Address select compensation issues identified by TASB Consider signing bonuses for campus professionals and hard
to fill positions
21Source: FBISD Finance
2014-15 Compensation
Math Specialists at All Campuses Salary Increase (including stipends, equity adjustments) Testing Coordinators/Facilitators Tech Support at All Campuses (Instructional & Troubleshoot) Dedicated Instructional Coaches at All Campuses Special Education Support (ARD Facilitators – campus based) Smaller Classes at All Levels Updated Technology – Hardware (all kinds) & support Library Funding (Aides & Books) Incentives for Working in Low Performing Schools 22Source: FBISD Finance
2014-15 Budget Committees – Top Priorities
March 31 – Board Budget Workshop Staffing & Compensation Recommendation
April 7 – Special Called Board Meeting Action on Staffing & Compensation Recommendation
23Source: FBISD Finance
2014-15 Budget Calendar – Key Upcoming Dates
Fort Bend Independent School District