March 2011

Fiscal 2012 budget is being crafted now. Latest House and Senate budget proposals being

filed would allocate $5 billion less than current biennium, without raising taxes or using the state fund reserves. (With projected enrollment growth across the state and chances in property value, the cost to fully fund current law requirements for public ed would be approximately $10 billion short.)

You have probably heard a variety of numbers from AISD about what our deficit could be. If the state cuts “only” $2 billion from education – our

projected shortfall in AISD would be $54 million. If the state cuts $4 billion – our shortfall would be

projected at $94 million. (These are the numbers the district is choosing to work with currently.)

If the state cuts $5 billion (the current House proposal) our shortfall in AISD would be $114 million.

Even with best case numbers, AISD cannot absorb all the cuts in 1 year, so the proposal would be to spread the cuts over 2 years (when possible) and use some of the Fund Balance to offset the impact of these cuts.

Federal Sources = 2% Title funds Federal Grants

State Sources = 15% WADA (Weighted Average Daily Attendance) State taxes Allocations based on state budget decisions Grants

Local Sources = 83% Property taxes Grants / business partnerships

Lower local property tax revenue

Loss of one time federal funding

Significant cuts in State funding

Robin Hood system in place is a result of a 1984 lawsuit (Edgewood vs Kirby.) Texas was charged with using property taxes to fund education inequitably among school districts.

Any school district that is “property wealthy” (one where property tax wealth is in excess of $305,000 per weighted student) is a Chapter 41 district. Currently there are 135 Chapter 41 districts – we are one of those.

Since 2000/01 AISD has given $1.3 billion to the state as a Chapter 41 district.

Cut 100+ Central Office positions (2009-10) Implemented a Central Office hiring freeze (2009-10) Became self-insured (2009-10) Established fiscal and energy saving measures to

reduce costs (2009-10) Sought community input on potential cuts through

public forums and surveys (2010-11) Declared Financial Exigency Implemented RIF Developed a preliminary budget – includes spending

down the district fund balance

Staffing was determined based on projected enrollment and 24:1 ratios for grades K-4 and 30:1 for grade 5. PROJECTED ENROLLMENT = 909 (currently 879)

Kindergarten = 6* First grade = 7* Second grade = 7 Third grade = 7 Fourth grade = 7 Fifth grade = 6* Special Ed = 3 Special areas = 1.84 Art, Music or PE each day

SOURCE USE

Campus Allocation from AISD (BTO - based on enrollment) As allocated in BTO with approval of CAC: Instructional Materials & Supplies, Literacy & Library Books, Substitutes for Teacher Meetings/Training, Administrative Overtime & Supplies, Counseling Materials & Training, Health Room Supplies, Custodial Supplies Overtime, Cafeteria Monitor Payroll, Extra-duty Payroll for Tutorials, Copy Machines and Riso Rental & Maintenance

PTA As allocated in PTA budget by PTA Executive Board with approval by General PTA

Campus Building Use Fees Staff Development/General Student Needs

School Picture Commissions Classroom & Student Needs/BDRs-Student Agendas

Partners In Education Faculty Lounge Supplies, Faculty Snacks, Young Author’s Conference, Staff Training Materials, Science Fair, Guest Speakers, Career Day, Peer Mediation

Vending Machine Commissions Faculty EOY Celebration

Grade-level Activity Fees/After-school Activity Fees (Choir, Spanish, Math Pentathlon, Chess Club)

Field Trips, Class Celebrations, T-shirts, News Magazine Subscriptions, Classroom activity and project materials, After-school program supplies/snacks

General Mills Box Tops Student Council Designated Funds

Campus Fundraiser: QSP Magazine Fund-raiser

Principal Discretionary Funds, as stated on QSP Parent Letter, Science Lab. Instruction, Technology Instruction & Equipment, Staff Development

Campus Fundraiser:ART Magnet Sales

Art Conference and Art Supplies

Campus Fundraiser:Bookfairs

Library Books, Librarian Continuing Ed., Supplies for Lesson Plans, Library Décor and Equip.

Campus Fundraiser:2nd Grade Market

2nd Grade Field Trip/Student Needs and Scholarships

Private Donations: Individuals As designated by donor

SSIG/SPED Grants - TAKS Tutorials- Special Ed Resources

Baranoff Elementary SchoolSources and Uses of Funds

Budget Worksheet 2 year Comparison

BTO-District Allocation 2010-2011 2011-2012

Extra Duty Pay-Tutorials $10,000.00 $9,882.00 (Approx. 300 hours of instruction)

Substitutes for Data Meetings/Testing/Staff Dev. $10,000.00 $10,000.00 (Approx. 100 days - fewer than 2 days per teacher)

Copier/RISO Machine Lease/Maintenance $13,000.00 $13,000.00 (Contracts negotiated by School District Materials Management)

Textbook Software Renewal $200.00 $200.00

Computer Equipment $2,000.00 (Replacement of Classroom or Admin Computers)

Instructional Supplies $17,588.00 $18,096.00

Student Incentives/Awards $1,800.00 $1,500.00 (Report Card Ribbons/Pencils)

Library Books $9,080.0 ($10/stu $7,432 ($8/weighted number of students-$2.50/student required by district)

Library Supplies $500.00 $500.00

Literacy Resources $1,000.00 $800.00 (Reading Specialist)

Extra Duty Pay-Staff Training $500.00

Clerical Overtime $2,000.00 $2,000.00 (District requires $500./Clerk)

Clerical Supplies $1,000.00 $1,000.00

Form Reproduction Costs $1,000.00 $1,000.00 (Pink Slips/Referral Slips/Mediation Forms, etc.)

Counselor Conference Costs $650.00 $500.00

Counseling Supplies $500.00 $500.00

Health Room Supplies $500.00 $500.00

Custodial Supplies $2,000.00 $2,000.00 (In addition to Supplemental Allocation)

Campus Monitor Payroll $15,000.00 $15,000.00 (Lunch/Morning Monitors)

Total BTO Non-staff Allocation $85,818.00 $86,410.00

Non-BTO Supplemental Allocation (District Departmental Funds)

ART-General Supplies $2,989.00 $3,066.00

MUSIC-General Supplies $427.00 $438.00

SPECIAL ED-General Supplies $690.00 $715.00

CUSTODIAL-General Supplies $6,719.00 $6,894.00

Total Non-BTO Supplemental Allocation $10,825.00 $11,113.00

District cuts will have to be made up at the campus level - for example: Closing central warehouse where campuses get large

quantity buying power means that campus purchases being made won’t have the benefit of the buying power anymore. This impacts instructional supplies, office supplies, paper, and custodial supplies- and those come from our campus funds.

Many departments currently pay for subs so teachers can attend during the week professional trainings. Those paid subs will no longer be available, so campuses will have to fund those training subs. (If teachers opt to attend on the weekend (if training is available on the weekend) then the campus will be required to pay a stipend.

Several sources of grant funds that supplemented campus funding for tutorials will no longer be available.

Community Conversation – March 31 @ Bowie April 11 – revised budget to AISD school board April 25 – public hearing on the revised budget May 30 – End of regular Texas Legislature Session June 6 – recommended budget presented to board June 13 – public hearing on recommended budget June 20 – Board adopts 2011-2012 budget Aug 22 – 1st day of the 2011-12 school year Aug 30 – Board adopts tax rate and FY2012 budget

amendments

Based on the differences in timelines for when the state and districts must have budgets in place, next year will begin with things more in flux, and staffing adjustments will be slow in coming.

For some of the pieces of the potential proposed budget to be implemented, we will first need state approval (24:1 ratio.)

This is not a one year budget deficit challenge- there is an estimated $40 million shortfall for FY 2013.

The Facilities Master Plan will be a serious piece of future conversations. School closures will happen, but I anticipate there will also be boundary changes that may impact the entire district, also.

Adjustments to middle and high school course day may come which will impact elective options

Health Plan changes Transition to a community based Pre-K model Make another withdrawal from the Fund Balance Possible Tax Ratification Election

A five cent increase generates $15.5 M net recapture; a nine cent increase would generate $27M net recapture.

Stay informed. Attend the Budget Community meeting at Bowie on

March 31. Visit the revised AISD website www.austinisd.org

New and revised website; lots of links and info will soon be available as the site revisions are completed.

Watch School Board meetings on cable channel 22 or streaming on the website.

Stay in touch with your legislative representatives. Identify state representatives and senators at

www.fyi.legis.state.tx.us