PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS FY 2010 Proposed...

PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS

FY 2010 Proposed Operating Budget

William R. Hite, Ed.D.Interim Superintendent of Schools



Operating Budget Development Basis

• School System Vision

All children of Prince George’s County Public Schools will graduate college-ready.

• School System Mission

Will advance the achievement of its diverse student body through community engagement, sound policy governance, accountability, and fiscal responsibility.

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Operating Budget Development Basis

• School System Strategic Plan

The Bridge to Excellence Master Plan, a dynamic strategic plan, guides the design and implementation of programs and services necessary to improve performance and achieve the mission.

• School System Five Core Beliefs:

1. Children ARE our business and THEY come first;2. Parents are our partners;3. Victory is in the classroom;4. Continuous improvement in teaching, leadership and

accountability is the key to our success; and5. EVERY member of this community shares the responsibility

for successful schools.

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Economic Outlook

• The next few slides will discuss some economic issues that the County and State will face in the upcoming fiscal year.

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FY 2010 Housing Market Outlook

• The County housing market has been continuously dropping in recent months. Monthly sales volume for existing homes dropped by 51% on average in FY08. In the first two months of FY09, it shows a further 32% drop.

• Sales prices for existing homes dropped by 9.1% on average in FY08. In the first two months of FY09, it shows a further 12% drop.

• Transfer and Recordation taxes decreased by $85 million (38%) in FY08 and are expected to drop by another $31 million (23%) in FY09.

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Real Estate Sales Chart –Prince Georges County Maryland

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Real Estate Price Chart –Prince Georges County Maryland

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State of Maryland-Unemployment Rate

MonthLabor Force Employment Unemployment Rate

January 2,989,488 2,885,387 104,101 3.5February 2,993,920 2,891,381 102,539 3.4

March 2,998,684 2,890,651 108,033 3.6April 3,003,939 2,895,565 108,374 3.6May 3,017,148 2,897,297 119,851 4June 3,012,875 2,892,339 120,536 4July 3,020,045 2,889,702 130,343 4.3

August 3,016,800 2,880,544 136,256 4.5

September 3,002,538 2,865,395 137,143 4.6October 3,001,667 2,852,638 149,029 5

Maryland Seasonally Adjusted 2008

• Employment decreased by 12,757 during September 2008 and October 2008; thus the number of job seekers increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.6% for the month of September to 5% in the month of October. The national unemployment rate in October 2008 was 6.5%.

Information provided by the Maryland Department of Labor

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Maryland Economic Forecast

Maryland Economic Forecast2008 2009 2010

Employment 0.6% 0.3% 1.2%Personal Income 4.4% 3.4% 4.9%Wage & Salary Income 3.8% 3.3% 4.5%

•The economic slowdown has a substantial impact on the expectations for theindividual income tax and the sales tax. Individual income tax receipts are expected toincrease 5.3% in fiscal year 2009 to $7.310 billion, a decrease of $135.0 million.Growth of 5.3% in 2010, to $7.698 billion, is forecast. Estimated payments are forecast to grow in low single digits with the slow economy and very low growth in capital gains.

•The weaknesses in Maryland's economy appear likely to have the greatest impacton sales tax collections. General fund sales tax collections are forecast to grow 3.1% infiscal year 2009 to $3.787 billion, a reduction in the forecast of $265.3 million. In fiscalyear 2010, growth of 3.8% to $3.933 billion is expected. Baseline receipts are expectedto drop 1.8% in 2009, but will increase by 4.8% in 2010. The recent increase from 5% to6%, along with changes to the distribution of sales tax revenues, adds almost fivepercentage points of growth to general fund receipts for fiscal year 2009.

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FY 2010 Revenue Outlook

• Following the national economic downturn the State of Maryland Board of Revenue Estimates projecting a revenue shortfall of approximately $1.9 billion for FY10: State potential reduction and rebase of formula grants.

(Geographic Cost of Education Index-GCEI) Reduction in State Aid resulting from State actions to

reduce its $1.9 billion projected deficit. Reduction in County revenue due to the strained

housing market, including a steep rise in foreclosures and drop in housing sales decreasing the Transfer & Recordation Tax revenues.

Loss of telecommunication tax revenues. (Question F on the election ballot)

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FY 2010 Revenue Outlook (continued)

• County Revenue at MOE• Includes GCEI funding @ 60%• Underlying expenditure growth (compensation,

fringe benefits, inflation) exceeds revenue rate of growth, resulting in a projected FY10 budget gap.

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Financial Charts

• The next few slides will display various financial charts relating to PGCPS (i.e. revenue and enrollment changes, expenditure changes, redirected resources, and improvements.)

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Revenue and Enrollment

FY 2006-FY 2010 Revenue & Enrollment

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

$900,000,000

$1,000,000,000

Do

lla

rs

127,000

127,500

128,000

128,500

129,000

129,500

130,000

130,500

131,000

131,500

En

roll

men

t

State Aid Revenue $714,681,825 $777,844,765 $906,740,815 $922,708,275 $951,855,153

County Aid Revenue $565,338,065 $604,031,772 $603,181,548 $614,502,036 $609,316,675

Federal/Board Revenue $95,546,389 $102,617,839 $90,925,017 $113,393,717 $113,919,082

Prior Year Fund Balance $- $- $69,030,599 $28,900,000

Actual Enrollment 131,059 129,769 131,231 129,595 128,728

FY-06 Actual FY-07 Actual FY-08 Actual FY-09 Approved FY-10 Proposed

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Expenditures and Enrollment

FY 2006- FY 2010 ( Proposed) Changes in Expenditures

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

Do

lla

rs

120,000

124,000

128,000

132,000

136,000

140,000

En

roll

men

t

Change in Expenditures Per CAFR $1,349,516,578 $1,464,335,394 $1,686,551,394 $1,663,924,151 $1,675,090,910

Enrollment 131,059 129,769 131,231 129,595 128,728

FY-06 Actual FY-07 Actual FY-08 Actual FY-09 Estimate FY-10 Proposed

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Revenue and Expenditure Changes

FY 2006-FY 2010 Change in Revenue & Expenditures

$(50,000,000)

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000D

oll

ars

126,000

127,000

128,000

129,000

130,000

131,000

132,000

133,000

134,000

En

roll

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t

Change in State Aid Revenue $83,266,512 $63,162,940 $128,896,050 $15,967,460 $29,146,878

Change in County Aid Revenue $13,109,468 $39,129,782 $(850,224) $11,320,488 $(5,185,361)

Change in Federal/Board Revenue $8,412,610 $7,071,450 $(11,692,822) $22,468,700 $525,365

Prior Year Fund Balance $- $- $69,030,599 $28,900,000 $-

Change in Expenditures $137,203,617 $113,526,512 $222,216,000 $(22,627,243) $11,166,759

Actual Enrollment 133,325 131,060 131,231 129,595 128,728

FY-06 Actual FY-07 Actual FY-08 Actual FY-09 Estimate FY-10 Proposed

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FY 2010 Proposed Operating Budget

FY 2009 FY 2010 Proposed Change

Operating Budget $1,679,504,028 Approved

$1,663,924,151 Estimated $1,675,090,910

($4,413,118)

$11,166,759

Student Enrollment

(Pre-K - 12) 129,595 (Actual) 128,728

(Projected)

(867) Projected

Staff (FTE)

Operating

TOTAL

18,975.24 (Original)

18,988.24 (Revised)

18,988.24 (Revised)

18,119.71

18,119.71

(855.53)

(868.53)

(868.53)

Facilities 208 208 0

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FY 2010 RevenueChange from FY 2009 Approved & Estimate

Source Amount Change

Approved

% Change Amount Change Estimate

% Change

State Aid $29,146,878 1.03% $29,146,878 1.03%

Federal Aid $1,953,607 1.02% $1,953,607 1.02%

Board Sources ($1,428,242) 0.92% $151,635 1.01%

Country Contribution

($5,185,361) 0.99% $8,814,639 1.01%

Prior Year Fund Balance ($28,900,000) (100.0%)

($28,900,000) (100.0%)

Total Revenue Change

($4,413,118) (0.3%) $11,166,759 1.01%

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FY 2010 Proposed Operating Revenue

Source Amount % of Total

State Aid $951,855,153 56.8%

Federal Aid $96,347,324 5.8%

Board Sources $17,571,758 1.0%

County Contribution $609,316,675 36.4%

TOTAL REVENUE $1,675,090,910 100.0%

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FY 2010 Major Expenditure Changes

Major Changes Amount

Mandatory Changes (e.g., maintain existing workforce, fund employee benefits, risk management and utilities, and new schools)

$70,800,192

Redirected Resources - (e.g., normal workforce turnover, removal of one-time expenditures, enrollment derived changes include staffing and supplies, and reductions in central and non-classroom support positions and supplies )

($106,074,303)

System Wide Improvements $30,860,933

Total Expenditure Major Changes ($4,413,118)

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FY 2010 Major Expenditure ChangesMandatory/Cost of Doing Business

Mandatory Changes/Cost of Doing Business

Staff FTE

Amount (millions)

FY 2009 Revisions After Budget Adoption

- Additional Redirected Resources related to reduction of County Revenues

- Additional Redirected Resources related to reduction of Board sources

-Additional Instructional and Critical Support positions13.00

($14)

($1.6)

Maintain Existing Work Force – Full-Time/Part-Time Salaries $58.7

Employer Obligations – (Social Security, Retirement, Risk Management, Life Insurance and Health Insurance)

$20.2

Other Essential Support- (Utilities, , lease purchase, and Internal Services)

$.8

Nonpublic Place $1.4

New Schools 10.50

_______

$5.3

Total Mandatory/Cost of Doing Business Changes 23.50 $70.8

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FY 2010 List of Improvements

Description of Activity FTE Amount

Increase to support end of unit testing. $200,000

Textbook consumables. $5,603,467

Evaluation of FIRST GRANT. Increase in funding to support the matching funds required for the Pay for Performance Grant (improve quality of instruction-Implement Board of Education Theory of Action).

$220,000

Fund 5 additional ESOL teachers in order to support the growing ESOL population and in order to provide teachers to all schools with ESOL students.

5 $392,915

Full-time position is required for services to employees for compliance with the American Disabilities Act. ADA requests are rapidly increasing from year to year and an additional position is needed to oversee these tasks.

1 91,137

To provide for the relocation of the television studio to ISSC. $500,000

To provide for the expansion of close captioning requirements for the school system.

$25,000

Increase in funding to support funds for a grant funded positions critical to the operation of the division.

1 $53,426

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FY 2010 List of Improvements (Continued)

Description of Activity FTE AmountIncremental increase $9,086,026

Lease Purchase of Textbook ($8.2 million) $1,803,804

Homeless Education Office Enhancement. $11,180

The expansion of the Autism initiative will help to increase the percentage of students, ages 6-21, who receive IEP services in Environments A and B. Specifically, to support the education of students identified with autism in their least restrictive environment.

27 $1,537,467

Renovations to ISSC building. $1,000,000

Phase II of Energy Performance ($65 mill lease purchase). $6,590,119

Plant Operations Enhancement $2,000,000

Additional custodial positions to support RICA facility reopening 4 $246,452

Increase in funding to support the matching funds required for the Pay for Performance Grant (improve quality of instruction-Implement Board of Education Theory of Action).

$1,500,000

Funds to support special education students who can not be serviced in a school setting. These funds will maintain current service levels and support 30 FTE(s) - new placements.

$1,395,720

Total 38 $30,860,993

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Recommended Reductions

Description of Activity FTE AmountSalary Lapse / Work Force Turnover ($15,308,560)

Central Office and Program Reductions (189) ($30,682,721)

Benefits ($654,441)

Consolidation of 6 schools (75) ($5,242,376)

Reduction of Assistant Principals at small schools (23) ($2,780,700)

Instructional Coaches (25) ($2,370,579)

Staffing Formula Adjustment (200) ($15,716,600)

Prior Year Program Corrections - Paraprofessionals (44.50) (1,558,205)

Parent and Community Engagement – Parent Liaisons (146) (7,704,795)

Instructional Support (90) (9,726,210)

Increase Student Teacher Staffing ratio Elementary (106.53) (8,371,447)

School Operating Resources (2,977,065)

America’s Choice – High Schools (18) (2,980,604)

Total (917.03) ($106,074,303)

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FY 2010 Areas of Concern

• County Maintenance of Effort- Potential Waiver from MSDE.

• State revenue GCEI reduction.

• Teacher retirement fund.

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Public Hearings & Work Sessions

• Three Public Hearings

January 5, 2009 – Laurel HS, 7:00 p.m. January 12, 2009 – Forestville Military Academy, 7:00

p.m. January 15, 2009 – Oxon Hill HS, 7:00 p.m.

• Board of Education Budget Work Sessions, Sasscer Administration Building

January 27, 2009, 6:00 p.m. February 2, 2009, 6:00 p.m. February 9, 2009, 6:00 p.m. February 18, 2009, 6:00 p.m. (Adoption date)

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PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS FY 2010 Proposed...

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