2009-2010 Superintendent’s Budget
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Transcript of 2009-2010 Superintendent’s Budget
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2009-2010 Superintendent’s Budget
Presentation for PPSD School Board
March 23, 2009
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Budget Drivers
• Student Achievement– Class size, curriculum development, professional development, classroom
materials, extracurricular activities, smaller learning communities, common planning time, standards, and assessments
• Available Funding
• Enrollment Changes
• Labor Contract Obligations– Salaries, Benefits, Class Size
• Employee Retirement Contributions– State– Local
• Service Contract Obligations– Transportation– Custodial and maintenance– Outside tuitions
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Key Information
• Student Enrollment– 2% overall decrease in student enrollment-- Student population of 23,300– Nearly a 20% reduction since 2003
• External Budget Review– Broad Foundation funded budget review by Alvarez and Marsal
• Facility Changes– Re-opening of Nathan Bishop Middle School– Opening of the Providence Career and Technical Academy– Opening of the Athletic Complex– Closing of the Academy of Service
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Unknowns
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Overview
Overview
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Budget Increase
• 2009 Budget $322,122,729• 2010 net Exp. Increase 11,452,254• Unadjusted 2010 Budget 333,574,983• Adjustments
– Reduction in State Retirement* 4,028,579– Reduction in Debt Service* 4,470,804
• Adjusted 2010 Budget 325,075,600
* Reduction also reduced revenue
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Proposed State aid to Education
• 2009 Unrestricted aid $189,495,228• Less (Pension Reform) 4,028,579* • Reduction in Aid 9,537,231• Reduction in Group Home 165,000• Subtotal $175,764,418
• Plus Fed. Stabilization Funds 9,537,542• 2010 Unrestricted Aid $185,301,960
* Expenditure reduction as well
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Historical Budget Changes
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Revenue
• Estimated Revenue $311,114,138
City Revenue38.62%
Other0.59%
Medicaid1.21%
State Aid59.58%
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New Spending Requirements
• Providence Career and Technical Academy ($450,000)
• District wide Athletic Complex ($350,000)
• Nathan Bishop Middle School ($500,000)
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Increases(in millions)
$ % • Salaries 5.7 49.6• Medical Ins. (active & ret.) 2.5 21.7• Special Ed. Tuitions .3 2.6• Other Employee Benefits 1.1 9.6• Vendor Contracts 1.7 14.8
Total $ 11.3
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Expenditures
• Proposed Expenditures $325,075,600
Benefits26.3%
Equipment0.1%
Supplies1.9%Services
20.2%
Salaries51.5%
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Expenditures
Salaries $167,286,359
Benefits 85,372,714
Services 65,641,906
Supplies 6,309,316
Equipment 465,305
Projected Expenditures $325,075,600
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Revenue(millions)
• Unrestricted State Aid $185.3
• City Revenue 120.3
• Medicaid 3.8
• Other 1.8
Estimated Revenue $311.2
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Notes
• Budget Gap must be eliminated prior to final approval.
• Unclear how Federal Stimulus funding can be used to reduce the gap
• City appropriation is limited by (S3050A) Tax Relief Law.
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All Expenditures Are Under Continuous Review
• Major Cost Centers– Staff– Out of District Tuitions– Transportation– Vendor Contracts– Health Care
• Incorporate savings identified by Alvarez and Marsal into budget plan
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Challenges to a balanced budget
• The rate of increase in the district’s fixed costs has been greater than the overall budget growth causing budget cuts in the area of school reform and improvement.
• 98% of the PSD Budget is fixed Costs (Due to several years of continuous reductions)
• PSD is limited in what can be eliminated from the budget due to legal requirements and contractual obligations (fixed costs).
• City revenue growth is limited by S3050A
The only budget driver that is not a fixed cost is Student Achievement.
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Next Steps
• April Budget Workshops• April 28 Budget submitted to Mayor• May Budget submitted to Council• June Council Budget hearings • June-July Final State Aid• July Council Adopts City Budget• July-August School Board Approval• July August Council approves
ordinances