MMSD

2020-2021 Budget

Development January 13, 2020Operations Work Group

Objectives

• Review our Educational Equity Policy and

Strategic Framework to confirm alignment with:

○ 2020-21 budget goals and guiding principles

○ Core budget assumptions built from Board’s

budget pre-work

• Continue development of the 2020-21 budget

Every school will be a thriving school that prepares every student to graduate from high school

college, career, and community ready.

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Core ValuesGoal 1Every child is on track to graduate ready for college, career and community.

Goal 2The district and every school in it is a place where children, staff and families thrive.

Goal 3African American children and youth excel in school.

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Educational Equity Policy 9001

...As a system committed to equity, MMSD seeks to disrupt societal and historical inequities and eliminate disparities based on race and

socioeconomic status so that our entire learning community, including all staff and all students, benefit and thrive. Schools will be excellent only when all students in the DISTRICT are achieving or exceeding

universally high goals…

As such, it is the policy of the BOARD to promote educational equity amongst all DISTRICT students through the budgeting process, the

allocation of resources and development of BOARD policies in order to realize the DISTRICT’S vision that every school will be a thriving

school that prepares every student to graduate from high school ready for college, career and community...

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Used for policy and decision making:• What data was gathered?• Who does it burden/benefit?• How will it advance equity?• Are adequate resources

allocated to implement well?• What are the measures of

success?• How will you engage those

most affected?• How will you monitor and

communicate results?

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Education “Equity Tool” (https://equity.madison.k12.wi.us/files/equity/uploads/mmsd-equity-tool-final.pdf)

Equity Tool review of Resource Allocation

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% of Operating Budget

Budget 2020-21 pre-work

Summer 2020 work

starts

Fall 2021-22 Budget

pre-work

Budget 2021-22

Strategic Equity Project Review (past & future)

5%

Class Size Policy

53%

Employee Handbook

84%

2020-21 Budget GoalsIn line with these Board approved policies, the budget development process will focus on these major goals:

• Distribute equitable use of resources to support students with highest needs

• Reduce the number of sections below minimum of the Board’s class size policy, thus allowing for more targeted resource allocation

• Utilize the Board’s Educational Equity Tool for decision making outside of already approved Board policies (i.e. past and future Strategic Equity Project investments)

• Invest in a focused set of priorities aimed at multi-year investments to meet persistent equity needs in the schools

• Provide total compensation (steps + base wage) to employees equal to or greater than estimated cost of living (COLA) @ 1.8%

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2020-21 Guiding Principles

• Build two budgets, both in consideration of November 2020 potential referendum results

• Allocate resources in line with District core values and aimed at greatest impact on District’s Strategic Framework goals

• Maintain a multi-year, long range perspective on both revenue sources and uses to sustain momentum on academic outcomes

• Maximize efficiencies and use of taxpayer approved revenue authority to ensure stability in schools

• Build on previous practices that are showing promise for the future

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2020-21 Budget TimelineNovember

Budget Kickoff: Budget Overview, Revenue Projections & Strategy

December

Budget Kickoff, continued: Budget Overview, Revenue Projections & Strategy

January

Finalize: Staffing Projections/Workbook Release

March

Healthcare/Benefits Overview and DirectionStrategic Framework Priorities: Review of Past Investments, Ongoing Strategies, via Equity Tool

AprilPulling it all Together: Draft Budget Overview for both budgetsRegular Board Meeting Presentation of Preliminary Budget Proposal (April 27)Start Community Feedback Phase on Draft Budget

February

Budget Development: Educational Equity Policy - Budget Goals & Guiding Principles, and Core Assumptions

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Revenue Forecast

Strategic Equity Actions

Employee Benefits Plan

Salary & Wage Plan

Required Allowances

Staffing Plan

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Revenue Forecast

Strategic Equity Actions

Employee Benefits Plan

Salary & Wage Plan

Required Allowances

Staffing Plan

Budget StrategyPass two balanced budgets in June

IF there is an Operating Referendum, and

IF the Operating Referendum passes

IF there is no Operating Referendum, or, IF the Operating Referendum

does not pass

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Revenue ForecastPublic education funding has not been stable for 10+ years.

20/21 Total: $179 per pupil

In combination, the allowable revenue increase per pupil is lower in 20/21 than it has been since 17/18.

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The K4-12th grade enrollment. The year to year change is is listed above the enrollment.

MMSD “Students In Seat” Enrollment

3 Year Membership Average

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Revenue Forecast: $12.6 M to $15.6 M Revenue Forecast: $7.6 M

IF there is an Operating Referendum, and

IF the Operating Referendum passes

IF there is no Operating Referendum, or, IF the Operating Referendum

does not pass

Revenue Limit: $179/pp @ 27,000

Increase in SPED Categorical Aid*

Revenue ForecastState budget is known for 2020/21

Revenue Limit: Referendum to exceed

$4.8 M

$2.8 M

$5 M to $8 M

$4.8 M

$2.8 M

$0 M

*Note: Special Education Categorical Aid is contingent on Special Ed spending during the prior year. It is an aid designed for the state to reimburse costs after they are spent. Ultimately, this would reduce the need for a Fund 27 transfer.

Mill rate (levy) impact:(Equalization Aid: -15%, 5% valuation growth, no facility referendum impact)

$11.03 to $11.13 per $1,000(-0.62% to 0.24%)

$10.87 per $1,000(-2.07%)

Revenue Forecast: $12.6 M (IF $5M Operating ask in 20/21) Revenue Forecast: $7.6 M

IF Operating Referendum, and IF Operating Referendum

passes

IF no Operating Referendum, or, IF Operating Referendum

does not pass

Steps & Lanes (fully fund with FICA, etc.)

Base Wage (max 1.8%; 1%)

$5.3 M

$4.7 M

Budget ScenariosBoard pre-budget work created

draft parameters built into the budget model

Employee Benefits

($3.0 M)Staffing: District & School

Strategic Equity Projects (SEP)

$0

$3.0 M

Other: $0 ($0.8 M)

Req. Allowances (2x,OE,etc.) $2.6 M $2.6 M

$5.3 M

$2.5 M

($3.0 M)

$0

$1.0 M

Budget ScenariosBoard pre-budget work created

draft parameters built into the budget model

* CPI-u for July 1 contract is not available. July 1 est. is 1.8%.** Healthcare negotiation has not started. Any increase would need to be off set through plan design and/or employee contribution increases.*** In all cases, we will work to minimize classes that are below class size or above class sizes whenever possible.

Base Wage (Total

Comp)*

FTE range reduction

non-passing budget

Maximum Healthcare

% allowable in budget**

Strategic Equity Projects in

non-passing budget

Impact at Schools & Central Office ***

1.8% (3.8%) 45 to 55 $0M max Difficult to fund Potentially over class size policy & reduction at Central Office

1% (3.0%) 35 to 45 $0M max $1M Within class size policy & reduction at Central Office

.5% (2.5%) 30 to 35 $0M max $2M Within class size policy & reduction at Central Office

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Discussion

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Are there any questions or concerns for the budgeting work moving forward?

Appendix

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Our Budget Planning Approach

The MMSD Budget Development process typically follows the following sequence:

• Establish budget goals and guiding principles with Admin Team

and Board

• Create revenue forecast, assumptions and

projected enrollment

• Develop baseline staffing plan needed

• Determine compensation strategy

• Fund District strategic priority actions

• Finalize health care and benefit negotiations

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Revenue Limit: Property tax limits controlled by the State through the state biennial budget• $179 per member increase in 2020-21• $175 per member increase in 2019-20• $0 increase four years prior

State per Pupil Categorical Aid: One year state funding, authorized at a dollar per member• $0 per member increase in 2020-21• $88 per member increase in 2019-20

2016 Operating Authority to exceed Revenue Limit: Taxpayer approved authority to exceed the State’s imposed revenue limit on property taxes• Cumulative of $26M approved over 4 years• $8M used in 2019-20 budget• $0 remaining authority for 2020-21

Revenue StreamsLocal Taxpayer & State Support

2019-20 Operating Revenue

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Local taxpayers support 71% of our operating budget, with State support 21%.

Local operating authority to exceed the revenue limit was approved via 2016 referendum.

In 2020-21, there will be no new local authority to exceed the revenue limits.

Strategic Equity ProjectsStrategic investments depended on Board decisions on the

use of new revenue, here are examples of investments.

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Available Revenue

Examples of projects that could be funded and range of funding pending budgeting decisions

Range

$0 Difficult to fund any Strategic Equity Projects $0

<$1M Mental Health: Behavioral Health in Schools/Bounce BackEarly College STEM AcademySpecial Ed and Student Services Staffing Total:

$200K$250K$100K$550K

$1M Mental Health: Behavioral Health in Schools/Bounce BackEarly College STEM AcademyAccelerating Special Education LicenseAdoption of new reading materials K-5 Total:

$200K$250K$150K$400K$1M

$3M Mental Health: Behavioral Health in Schools/Integrated HS Clinics/Bounce BackEarly College STEM AcademySpecial Ed and Student Services StaffingAccelerating Special Education LicenseAdoption of new reading materials K-5 Total:

$500K

$600K$400K$200K$1M

$2.7M