You are on page 1of 28

State Budget and

School Finance
2011 -2013 Biennium

Board Meeting
December 7, 2010
Legislative History
2005
Most Texas Schools at tax capacity
Legislature did not act in 2005 Session
on school funding
School won lawsuit that State out of
Compliance on school funding
Legislative History
2006
Special Session – Legislature rewrote
finance bill, gave all taxpayers property
tax relief, and provided more revenue for
all school districts
2006-07
School District locked into a set amount
of funding both State & Local per
Weighted Average Daily Attendance
Legislative History
2007-08
No Increase in Funding
2008-09
No Increase in Funding
2009-10
$120 Per Weighted Average Daily
Attendance
2010-11
No Increase in Funding
State Budget Woes
Eliminated 1/3 of Property Tax Revenue
Franchise, sales tax, and other
statewide revenue sources did not
materialize
Stimulus Money supplanted state
shortfall in current biennium
2010-11 Estimated $506,932,449
$351,473,165

2009-10 $501,843,341
$347,944,717

2008-09 $510,380,972
$351,583,066

2007-08 $495,594,119
$331,604,001

2006-07 $457,632,566
$405,767,542

2005-06 $432,903,378
$432,903,378

New Law M & O Taxes Old Law at $1.50 Cap


M&C
State Budget and School Finance

The budget shortfall facing the Texas


Legislature in 2011 is estimated as high
as $26B.

The State’s Rainy Day Fund is expected


to be $9B at the start of the 2011
Legislative Session.
Plano ISD General Operating
Fiscal Tax Rate Net Revenue/
Year Cap Appropriations
2005-2006 $1.50 $ 9.1 M

2006-2007 $1.33 $14.7M


2007-2008 $1.02 $(4.4)M
2008-2009 $1.04 $(5.2)M
Plano ISD General Operating
Fiscal Tax Rate Net Revenue/
Year Cap Appropriations
2009-2010 $1.04 $ 5.8 M (Actual)
2010-2011 $1.04 $( 5.7)M (Budgeted)

2011-2012 $1.04 $(10.5)M (Projected)


2012-2013 $1.04 $(10.2)M (Projected)
Why is a Tax Rate
Election not a budget
solution at this
time??
Increased Revenue Per Each

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$-
$1.05 $1.06 $1.07 $1.08 $1.09 $1.10 $1.11 $1.12 $1.13 $1.14 $1.15 $1.16 $1.17
Only Viable Solution
at this time is a
Reduced Budget.
Budget by Function

2.19% 14.94%
Instruction
12.54%
Instructional
Support
General
Administration
District
Operations

70.33%
BUDGETED APPROPRIATIONS BY CATEGORY

4.02% 6.42%
1.05% 0.07%
3.62%

84.83%

Capital Payroll Supplies & Materials


Other Operating Utilities Contracted Services
Peer Administrative Cost Ratio
Allen 6.28%
Carrollton FB 6.17%
Frisco 6.56%
Garland 6.06%
Lewisville 5.92%
McKinney 5.78%
Richardson 6.78%
Wylie 5.94%
Plano 3.91%
Required State & Federal Reports
Statistics:
Month # of Reports
Grant Funding 270
Payroll Related 45
PEIMS (263,545 individual 4
records)
Food & Nutritional Services 22
Contractor Related 12
Total Reports for FY 353
2011-12 Budget

Reductions

Biennium Target $10M - $14M


Biennium Budget Reduction Goal

To decrease the general fund budget with


the least amount of impact on classroom
instruction.
Decrease the current budget capacity
Leverage operating balance / fund balance
over a 2 year period
Streamline support services
Lobby legislators for tax rate
authorization
Key Components
Increase Student/Teacher Ratio TBD
Reduce Non-Teaching Staff TBD
Reduce Custodial, Maintenance, & 5%
Mowing Contracts
Reduce Supplies and materials 5%
Utility Conservation – Water & TBD
Electricity
Reduce CIP Initiatives 66%
Reduce Travel Expense 20%
Department Budget Reductions
Targeted
Department Total Reductions
Academic Services Reductions $ (1,208,988)
Total

Academic Initiatives Total $( 153,800)

Student and Family Services Total $( 601,986)


Department Budget Reductions
Targeted
Department Total Reductions

Area Assistant Superintendent $( 106,189)


Total

Human Resources Total $( 876,269)

Business Services Total $( 3,233,810)


(Business, Facility, & Auxiliary)
Department Budget Reductions
Targeted
Department Total Reductions

Technology Services Total $( 759,666)

Communications Total $( 274,520)

Other Department Totals $( 211,759)

Other Allocations Total $(1,851,500)


Department Budget Reductions
Targeted

Department Total Reductions


Total Department Budgets $( 9,278,487)
Operating

Internal Service Fund Savings $( 235,299)


Recap of all Department Reductions
Targeted

Non Payroll $ (3,757,540)


Payroll + Travel $( 4,975,394)
Programs $( 780,852)

Grand Total $(9,513,786)


Budget Development Process 2011-12

District Goals Biennium Budget & Develop Pro Dept. Budget


Reviewed Budget Tax Rate Forma Budget Reductions
Targets Calendar Review

BOARD
TEAM BOARD BUDGET BUDGET
OF RETREAT / WORK SESSIONS DIRECTIVES
EIGHT

Legislative Financial Campus Preliminary


Priorities Audit Enrollment Enrollment
ADOPTION PEIMS Projections
OF
CURRENT
YEAR
TAX RATE AUGUST SEPTEMBER OCTOBER NOVEMBER

Budget
Reduction Finalize Parameters/ Final
Overview to Enrollment Instructional Revenue
Board Projections BOARD Initiatives Projections
WORKSHOPS
PUBLIC
FINAL
CABINET BUDGET HEARING
FACILITATING DRAFT
ADOPT
CAMPUS BUDGET
INPUT
Staffing Finalize Budget Approve
Models Staffing Reviews Compensation
Developed Allocations Package

DECEMBER JANUARY FEBRUARY MARCH APRIL / MAY JUNE


What’s Next?

Meet with Principal Committee

Cabinet Budget Discussions

Board Budget Discussions


State Budget and
School Finance
2011 -2013 Biennium

Board Meeting
December 7, 2010