Budget book by Heather Peters' portfolio

The Budget.

For the 2012-2013 fiscal and school year.

June 11, 2012 Compiled by the Finance Department and Office of Communications

Minneapolis Public Schools Special School District No. 1

Board of Education Alberto Monserrate , Chair Jenny Arneson, Vice Chair Richard Mammen , Clerk Hussein Samatar , Treasurer Carla Bates , Director Jill Davis , Director Kim Ellison, Director Rebecca Gagnon, Director

Superintendent of Schools Bernadeia H. Johnson, Ed. D. www.mpls.k12.mn.us

Table of Contents Letter from the Superintendent ................................................................................................................... 3 District Overview............................................................................................................................................ 4 Our Students – Enrollment Projections ..................................................................................................... 5-7 Our Staff – Our Facilities ............................................................................................................................ 8-9 Establishing the 2012-13 Budget .............................................................................................................. 10-14 General Fund ................................................................................................................................................ 15 General Fund – Revenue Details ............................................................................................................. 16-17 Categorical Revenue .................................................................................................................................... 18 School and Department Allocations ....................................................................................................... 19-21 General Fund Expenditures by Program................................................................................................ 22-23 General Fund – Expenditure Details by Object........................................................................................... 24 Referendum 2012-2013 ................................................................................................................................. 25 Integration Plan 2012-2013 ........................................................................................................................... 26 Title I Allocations 2012-2013 ......................................................................................................................... 27 Community Services .................................................................................................................................... 28 Food Services ............................................................................................................................................... 29 Capital Projects ............................................................................................................................................ 30 Debt Service ................................................................................................................................................. 31 Minimum Debt Payment Schedule ............................................................................................................. 32

June 2012 Dear MPS partners and friends, The budget plan we submit for the 2012-2013 school year is balanced and invests heavily in our strategic priorities, as we continue working to ensure that all students graduate from a Minneapolis high school ready for college and a career, prepared to excel in the real world. Our core strategies include raising expectations and rigor, transforming school leadership, strengthening teaching and exploring innovating models to accelerate student achievement. Minneapolis Public Schools has a more diverse, more mobile and more complex body of students than most school districts in Minnesota. We consider that diversity to be one of our greatest strengths. We believe our urban educational experience gives young people an edge in the competitive global arena. Yet this diversity also creates challenges and requires a commitment to closing the achievement gap. For the first time in six years, MPS changed the trajectory of the achievement gap, narrowing it slightly between students of color and white students. This is a reflection of the hard work of teachers, students and administration, but there is still work to do.

We must continue to invest in our schools and our teachers – ultimately, their success is tied to the success of our students. The school district has increased its total allocations to schools. We are making a set of strategic investments that directly touch classrooms to improve outcomes for our students, including:       

Supporting quality teaching by building a robust teacher evaluation system to give teachers more useful feedback on performance Promoting great teaching and learning through focused instruction, including Response to Intervention, to engage students in the classroom Funding English as a Second Language teachers and additional supports for English Learners Funding reading and math specialists to ensure students grasp the fundamental skills needed early in their educational paths Providing additional support to the schools that need it most Investing in instructional leadership development because strong school leadership is critical to enhancing student achievement Maintaining class size targets to give our students the time and attention they need and deserve

This is the time to make even better use of our resources. Guided by our strategic plan, our efforts are beginning to show positive results in the most critical areas of need. We are eager to move forward and focus on the core of our work – providing high quality educational experiences for all students. It is paramount that we give taxpayers value for the funds that we receive. We are moving in the right direction, but we still must work to achieve financial sustainability. In addition to investing more resources directly into our schools, we are working to right-size the school district. Allocations to some departments have remained the same, some have been decreased and some have been increased. Right-sizing includes making investments in infrastructure and support systems to assure effective and efficient operations. Those investments include data systems, building instructional leadership capacity, senior leadership development, strategic planning and project management. Finally, the balanced budget relies heavily on the use of our fund balance. Unfortunately, we are using one time funds to address ongoing operational costs. As we begin planning for future years, we must continue our efforts to right size to increase efficiency and effectiveness so that we can continue to sharpen our focus on strategic priorities. We work to educate and care for over 33,000 students every day. MPS will continue to align the budget with the priorities outlined in the strategic plan, which directly impact our schools, classrooms and students. Ultimately, this will deliver the results we want for our students. Sincerely,

Bernadeia H. Johnson, Ed.D. Superintendent of Schools

District Overview Minneapolis Public Schools promises an inspirational education experience in a safe, welcoming environment for all diverse learners to acquire the tools and skills necessary to confidently engage in the global community. Our Mission: To ensure that all students learn. We support their growth into knowledgeable, skilled and confident citizens capable of succeeding in their work, personal and family lives into the 21st century. Our Vision: Every child college and career ready.

Our Students Minneapolis Public Schools is a major urban school district with a diverse and complex body of students. Our diverse community is one of our greatest assets. We work to support over 33,000 students and their families from around the world who call Minneapolis home. We believe that our urban educational experience prepares students to become active, continuously learning and contributing global citizens. We are committed to assuring that every student graduates college and career ready. The following pages provide more information about the demographics of our school district and how they affect the financial state of the Minneapolis Public Schools: 1. After nearly a decade of decline, enrollment has turned the corner and is projected to increase. Over the next five years, intermediate grades are projected to have the greatest increase with declines in high school. In the following five years, middle and high school grades are projected to increase the most. The state of Minnesota uses a weighted student formula, providing different funding for students at different grade levels. The current weights are:    

Kindergarten = 0.612 Grades 1-3 = 1.115 Grades 4-6 = 1.06 Grades 7-12 = 1.3

Revenue is based on a formula using Weighted Average Daily Membership. The school district reports how many students at each grade level are enrolled each day. Our revenue is based on the weighted average. The state uses an “adjusted marginal cost pupil unit” (AMCPU) formula to soften the impact of declining enrollment.

2. Enrollment projections are based on birth rate in the city of Minneapolis and historical MPS enrollment trends:

Ten-Year Enrollment Projections MINNEAPOLIS

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Kindergarten

3321.0

3261.0

3241.0

3218.0

3221.0

3142.0

3168.0

3321.0

Grade 1

3147.0

3196.2

3133.6

3114.3

3092.2

3095.1

3019.2

3044.2

3191.2

Grade 2

3011.0

3087.6

3105.4

3044.6

3025.9

3004.4

3007.2

2933.5

2957.7

Grade 3

2680.0

2934.2

2967.9

2985.0

2926.5

2908.5

2887.9

2890.6

2819.7

2843.0

Grade 4

2635.0

2624.7

2840.8

2873.4

2890.0

2833.3

2815.9

2796.0

2798.6

2729.9

2752.5

Grade 5

2536.0

2568.0

2493.2

2698.5

2729.5

2745.2

2691.4

2674.9

2655.9

2658.4

2593.2

Grade 6

2359.0

2422.6

2417.8

2347.4

2540.6

2569.8

2584.6

2533.9

2518.4

2500.5

2502.8

Grade 7

2208.0

2292.8

2344.4

2339.6

2271.5

2458.6

2486.7

2501.1

2452.1

2437.0

2419.7

Grade 8

2085.0

2194.0

2247.1

2297.6

2293.0

2226.2

2409.5

2437.2

2451.2

2403.2

2388.4

Grade 9

2184.0

2093.2

2180.2

2209.8

2261.7

2257.0

2188.4

2376.8

2405.2

2419.6

2370.2

Grade 10

2057.0

2112.6

2024.7

2108.9

2137.5

2187.8

2183.2

2116.8

2299.1

2326.5

2340.5

Grade 11

1987.0

1898.4

1949.7

1868.6

1946.3

1972.7

2019.1

2014.8

1953.5

2121.7

2147.1

Grade 12

2304.0

2242.9

2142.8

2200.7

2109.2

2196.9

2226.7

2279.0

2274.3

2205.1

2395.0

Total-Graph Below

32514.0

32928.1

33088.5

33306.4

33444.9

33597.5

33687.8

33766.7

33797.8

33968.0

34222.5

Change

414.1

160.4

217.9

138.5

152.6

90.3

78.9

31.1

170.2

254.5

% Change

1.27%

0.49%

0.66%

0.42%

0.46%

0.27%

0.23%

0.09%

0.50%

0.75%

Ten-Year Enrollment Projections 37,000 36,000 35,000 34,000 33,000 32,000 31,000 30,000 2005-06

2007-08

2009-10

2011-12

2013-14

2015-16

2017-18

2019-20

2021-22

3. In addition, MPS has a greater concentration of students eligible for free/reduced priced meals, students receiving Special Education services and English Learners than the state as a whole. These students generate additional revenue so that MPS may support them with the additional services they need.

Support Services Received by Students MPS

Minnesota

Students Eligible for Free/Reduced Priced Meals

65%

37%

Special Education Students

18%

15%

English Learners

23%

Percentof Students Eligible for Free/Reduced Priced Meals

Percent of Enrollment Students Served by Special Education

80%

60%

20 15

40%

20%

0 1986 1989 1992 1995 1998 2001 2004 2007 2010

30% 25% 20% 15% 10% 5% 0%

23% of MPS students are eligible for state revenue for English learners. 27% of our students speak a home language other than English.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% ELL

Percent of MPS Students Eligible for English Learner Services

2003 2004 2005 2006 2007 2008 2009 2010 2011

Our Facilities Resources that support the academic growth of our students and staff include the facilities that foster educational and professional growth. MPS owns and operates 78 sites comprising 8.4 million square feet in FY13.     

50 elementary schools 10 middle schools 7 high schools 3 other academic sites 8 non-academic sites

Twelve currently closed sites total approximately 640,000 square feet.    

Howe will reopen in August 2013. Five sites are leased and generating revenue: Franklin, Hamilton, Tuttle, Gordon and Lincoln. 807 NE Broadway (former Educational Services Center) and Webster will be vacated in the summer of 2012 and relocated to the Davis Center. Four sites are closed and vacant: Cooper, Northrop, Willard and Shingle Creek (pending demolition).

MPS has sold four sites in the last four years:    

Morris Park: 2/4/2009 Putnam: 6/8/2009 Holland: 6/30/2010 Lehmann: 12/23/2011

The Davis Center MPS is excited to move its administrative service functions, currently located in four buildings across the city, to the new John B. Davis Education and Service Center at 1250 West Broadway, which was formerly Broadway School and MPS Student Placement Services. The Davis Center will be a community asset and a catalyst for growth, economic development and stability on West Broadway. MPS is pleased to have partnered with the city of Minneapolis to make this vision a reality. Moving to the Davis Center will provide the school district with cost savings over the long term. The annual operating costs of the Davis Center will be almost two million dollars less than the annual operating costs of the four existing administrative buildings. Over thirty years, the building will provide MPS with savings totaling $20 million. MPS is proud to announce that the Davis Center is in the process of obtaining the Leadership in Energy and Environmental Design (LEED) Gold Certificate. LEED certification provides independent, third-party verification that a building, home or community was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. Energy-saving strategies are critical to maintaining LEED status. The Davis Center will serve well over 1,000 students, staff, families and community members each day, housing Adult Basic Education classes, the Northside Welcome Center for families enrolling their children in MPS, testing for kindergarten and English Learner students, an assembly room for Board of Education meetings, professional development classrooms for MPS staff, a conference center and community meeting space.

Establishing the 2012-2013 Budget The school district establishes planning assumptions that set the parameters for budget planning. The planning assumptions and risks are defined below. The process for allocating general fund resources to schools and departments is described in the section on the general fund. Enrollment and Revenue Assumptions In making revenue projections, MPS assumed the following:   

Enrollment will increase by 414 students, with the greatest growth in first through third grades. Continuation of current state law regarding funding. Relatively flat federal funding.

Expenditure Assumptions 

Benefits continue to be budgeted at 31 percent.



The amount budgeted for the average teacher salary remained $66,412. As enrollment stabilizes and senior teachers retire, the average length of teachers’ years of service will decrease and the average salary should remain flat, in spite of increases in the salary schedule.



Actual salaries were budgeted for positions and Minneapolis Association of Administrators and Consultants (MAAC), Minneapolis Associations of Confidential Administrators (MACA), and Executive Leadership Team (ELT) contracts. Average salaries were used for all other positions.

Risks    

Retirements and new hires may not be enough to hold the average teacher salary constant. Some labor contracts have not been settled and therefore labor costs are uncertain and likely to increase. Department budgets are planned based on history and projected changes. Factors outside the school district’s control will impact what happens (i.e. weather and fuel costs impacting utility rates). The federal government may reduce federal education funds in January 2013 by up to 19 percent.

Priorities Reflected in the 2012-2013 Budget The budget invests in the school district’s strategic priorities. Investments in the classroom:       

Supporting quality teaching by building a robust teacher evaluation system Focused instruction, including Response to Intervention English as a Second Language Teachers and other supports for English Learners Reading and math specialists Support for high priority, turnaround, priority and focus schools Instructional leadership development Maintain class size targets

Investments in infrastructure and support systems to assure effective and efficient operations:    

Data systems Building instructional leadership capacity Senior leadership development Strategic planning and project management

Contingency Two million dollars is reserved to make adjustments to school staffing based on student enrollment in the fall. An additional $1.4 million is reserved to manage variations in expenses as needs emerge.

Fund Balance A fund balance allows the school district to manage risk and to respond to unforeseen circumstances without having to borrow money. We assess risk to determine how large a fund balance MPS needs. If the fund balance is too large, we might be unduly restricting services for today’s students. If the fund balance is too small, we will not be able to manage risks. In general, the more risk a school district faces, the larger its fund balance should be. Examples of current risks are:  Cuts in state aid;  State aid funding shifts;  Contract settlements; or  Unusually cold winter with higher than predicted utilities costs. The fund balance can grow in two ways. The school district may plan to increase the fund balance when it is too low. The fund balance also grows if revenue exceeds expenses. In recent years, MPS’ budgeted expenditures have been higher than actual expenditures. Several factors can contribute to this type of variance, including changes in revenue and expenditure for grants and inaccurate projections for average salaries and benefits. Some funds are reserved by law in the fund balance and can only be used for specified purposes. The school district assigns some funds for specific projects or services. MPS policy states that the general fund unassigned/unreserved fund balance must be at least 8 percent of budgeted expenses, with an annual review to assess risk and increase the targeted level of fund balance, if appropriate. The amount of fund balance reserved for risk in the 2012-2013 budget is 12.5 percent. This provides enough funds for about six weeks of operating expenses. In the 2012-2013 budget, the school district is planning on using a significant amount of fund balance.     

General Fund: $18,877,159 Food Service Fund: $93,134 Community Services: $0 Capital Projects: ($10,560,541) Debt Service: $9,274,804

All Funds Summary June 30,2011, Audited Fund Balance

Forecasted FY 12 Fund Balance Change

Transfer

July 1, 2012 Projected Fund Balance

General Fund

$129,022,584

$10,300,000

($26,104,494)

Food Service

3,701,306

-557,413

Community Service

3,365,471

-1,234,806

Capital Projects

56,260,431

-35,809,290

Debt Service

39,050,617 $231,400,409

Total All Funds

June 30, 2013, Projected Fund Balance

FY 2013 Revenues

FY 2013 Expenditures

$113,218,090

$518,700,000

$537,577,159

$94,340,931

3,143,893

17,958,074

18,051,208

$3,050,759

2,130,665

22,630,025

$2,130,665

26,104,494

46,555,635

66,713,534

82,257,487

$31,011,682

-27,425,035

11,625,582

72,310,162

82,184,966

$1,750,778

($54,726,544)

$176,673,865

$698,311,795

$742,700,845

$132,284,815

2012-2013 Budget: All Funds Debt Service 11%

Community Service 3%

Capital Projects 11%

Food Service 2% General Fund 72%

2012-13 Budget: All Funds Summary July 1, 2012, Projected Fund Balance

FY 2013 Revenues

FY 2013 Expenditures

General Fund

$113,218,090

$518,700,000

$537,577,159

$ 94,340,931

Food Service

$3,143,893

$17,958,074

$18,051,208

$3,050,759

Community Service

$2,130,665

$22,630,025

$2,130,665

Capital Projects

$46,555,635

$66,713,534

$82,257,487

$31,011,682

Debt Service

$ 11,625,582

$72,310,162

$82,184,966

$1,750,778

$176,673,865

$698,311,795

$$742,700,845

$132,284,815

Total All Funds

June 30, 2013, Projected Fund Balance

All Funds Summary Debt Service 11% Capital Projects 11% Community Service 3% Food Service 2% General Fund 72%

General Fund The general fund is the primary operating fund of the school district. Major sources of revenue include property taxes, miscellaneous local revenues and state aid. Expenditures include expenses of the school district such as salaries, supplies/materials, contractual services, utilities, transportation and other operating expenses. Expenditures are accounted for by programs related to administration, instruction, instructional support, maintenance, student support, transportation and facility/operating costs. Grant funds are also included within the general fund. These numbers account for the revenue and expenditure activities related to specific grants and projects funded through federal and state sources or other outside agencies. These numbers also include No Child Left Behind (NCLB)/Elementary and Secondary Education Act (ESEA) resources as well as federal special education dollars.

General Fund: Summary

* Beginning Fund Balance

Actual

Budgeted

FY 2011

FY 2012

FY 2013

$ 104,279,738

$ 129,022,584

$ 113,218,090

528,738,207

521,017,696

518,700,000

Total Revenue

$ 633,017,945

$ 650,040,280

$ 631,918,090

Annual Expenditures

$ 503,995,361

$525,409,146

$ 537,577,159

Annual Revenue

FY 12 Projected Fund Balance Transfers

$14,691,450 -

* Ending Fund Balance

$ 129,022,584

$26,104,494 $ 113,218,090

$ 94,340,931

* Beginning and ending fund balances include unrestricted and restricted dollars.

Restricted Reserves Unreserved/Unrestricted Fund Balance

$ 2,045,537

$ 22,000,000

$ 19,692,007

$ 126,977,047

$ 91,218,090

$ 74,648,924

The transfer moves general fund fund balance to capital services/fund six to pay for capital improvements as part of the already approved Planning for Changing Enrollment plan.

General Fund: Revenue Details Below is an explanation of how the school district gets its general fund dollars. Examples Local There are two types of property tax levies. 1. Property taxes

Voter determined.

Referendum

2. Levies set by the school board, within limits set by the state legislature. In some instances, if the school board does not levy the full amount the legislature allows, the district also loses state aid. Other sources of revenue; see examples.

Misc.

Safe schools levy Alternative facilities Health and Safety Integration School-funded projects Gifts Rent Grants

State Aid The basic formula is an amount per pupil. The amount varies depending on the grade level of the students: Basic Formula

Kindergarteners: Grades 1-3: Grades 4-6: Grades 7-12:

.612 1.115 1.06 1.30

Categorical aid is aid for specific purposes and it comes in three types. 1.

Based on the weighted pupil formula.

Categorical 2. Based on student characteristics, such as Aid eligibility for ELL services or free/reduced priced meals.

Gifted and Talented Alternative Compensation Limited English Proficiency Compensatory Education Integration Aid

3. Partial reimbursement for services.

Special Education

The federal government provides funding to school districts that first flows through the state. The two largest are funds for the Elementary and Secondary Education Act (ESEA, currently known as NCLB) and the Individuals with Disabilities Act (IDEA), which provides funds for Special Education services.

ESEA: Title I Title II Title III

Federal

IDEA

General Fund: Revenue Details

Revenue Details Local Property Taxes Misc. State Aids Basic Formula Compensatory ELL Special Education Other Federal Transfers Total Revenue

Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

$ 95,083,171 19,112,379

$ 101,983,972 25,270,000

$ 94,718,247 24,075,000

$ 102,081,427 23,355,350

$ 193,803,207 49,124,274 4,893,300 53,895,956 8,024,776 $ 83,589,462 3,080,000 $ 510,606,525

$ 189,128,736 50,318,035 4,687,200 55,359,373 31,384,633 70,606,258 $ 528,738,207

$ 193,943,625 52,452,230 4,275,800 56,075,078 45,331,216 50,146,500 $ 521,017,696

$ 195,329,539 53,273,862 4,465,000 58,283,075 31,702,411 50,209,336 $ 518,700,000

General Fund: Revenue Details Debt Service 11% Capital Projects 11% Community Service 3% Food Service 2%

General Fund 72%

Categorical Revenue: Summary Almost half of the school districtâ&#x20AC;&#x2122;s general fund revenue is categorical aid, meaning that its use is restricted. Categorical Revenue Summary Referendum

65,714,000

Integration Aid

16,800,000

Compensatory Aid

53,381,487

LEP

4,465,000

Special Education

58,283,000

Federal/Grants

39,517,000

Extended Time

10,805,000

Non-Categorical Revenue

269,734,513

Total Revenue

Resources committed by the school district to class size, early literacy, technology, textbooks, science and math. Programs funded with integration aid must support the goals of closing the achievement gap and increasing racial interaction. State statute identifies 10 uses for compensatory aid funds. View here. State Limited English Proficiency (LEP) funds must be used to support the education of English Learners. State and federal education dollars may only be used for special education services. Federal funds must supplement, not supplant, state and local dollars. Restrictions on use depend on the specific grant. Extended time dollars support credit recovery and academic support for qualifying students through afterschool and summer school programs.

$518,700,000

2012-13 Categorical Revenue: $518.7 million Referendum 13% Integration Aid 3%

Non Categorical Revenue 52% Extended Time 2%

Compensatory Aid 10% LEP 1% Special Education 11% Federal/Grants 8%

School Allocation Methodology The school district defines core expectations for each grade configuration and provides each school with a budget allocation. The principal and site leadership team determine how to use the budget, based on core expectations and specific student needs and program priorities at the individual schools. View the allocations for each school. (Click on the “school allocations” tab at the bottom of the spreadsheet.) Allocations were determined using the process described below. 

   



 

Per pupil allocations are based on a weighted formula: o K= 0.7 o Grades 1-8 = 1.0 o Grades 9-12 = 1.1 Class size referendum funds and basic per student allocations are distributed on a per pupil basis. High school Career and Technical Education (CTE) allocations are taken out of the basic per student allocation. Compensatory education is the full amount allocated to each site, based on the state formula. The state formula is based on students eligible for free/reduced priced meals as of October 1, 2011. EL allocations are 73 percent of the amount needed to fund the English as a Second Language teachers needed for the school, based on a ratio established by the Multilingual department. Schools are expected to use compensatory revenue or their basic allocation to fund the remaining 27 percent. Special Education Resource Teacher (SERT) allocations are 50 percent of the amount needed to fund the SERTs needed at the school, based on the contract ratio of 1:23 as determined by the Special Education Department. Schools are expected to use compensatory revenue or their basic allocation to fund the remaining 50 percent. MPS defined a minimum program for each grade configuration. o Funds needed were determined by adding the amount needed to meet class size targets and minimum program, EL and SERT requirements. o Funds available were determined by adding the allocations for referendum class size, basic per student, compensatory education, EL and SERTs. o If funds available minus funds needed resulted in a negative number, two steps were taken:  Schools were given a minimal program adjustment to bring the difference to zero.  Schools were given an additional per pupil adjustment to provide a limited amount of discretionary funds. Additional funds were allocated for specific programs and services, such as Advancement Via Individual Determination (AVID) and International Baccalaureate (IB). Some services that were previously included in school budgets, such as Check and Connect or Math Specialists, are being maintained but have been moved to department budgets in order to increase efficiency and quality control. Service levels for the schools will remain constant.

Department Allocations All departments were asked to develop strategic plans and then align their budgets to those plans. The goals were to improve the effectiveness and efficiency of services, increase investment in strategic priorities and move towards a sustainable structure. To accomplish these goals, the school district began the process of right-sizing departments. Some department budgets remained flat, others decreased and some increased. In all cases departments were asked to reevaluate priorities and assure that all resources were aligned to the most important priorities. View department allocations. (Click on the â&#x20AC;&#x153;department allocationsâ&#x20AC;? tab at the bottom of the spreadsheet.)

Relationship of School and Department Budgets The table on the next page displays the budget in four categories: 1) Direct allocations to schools; 2) Department allocations to schools, which are positions budgeted centrally but assigned to specific schools (examples include principals and building engineers); 3) Department allocations supporting direct services to schools and students are direct services to schools and students that are not associated with a specific staff person assigned to a specific school (examples include athletics, transportation and student activities); and 4) Direct allocations to departments are the remaining funds for operational functions that serve the school district as a whole (examples include Human Resources, the superintendentâ&#x20AC;&#x2122;s office and Payroll).

Relationship of School and Department Budgets Direct Allocations to Schools

FY 12 Budget

FY 13 Budget

Delta

Base costs

269,721,799

271,610,993

1,889,194

Percent Change 0.01

Grants

25,388,474

29,143,094

3,754,620

0.15

295,110,273

300,754,087

5,643,814

0.02

Total Direct Allocations to Schools Department Allocations assigned to specific schools (preliminary)

56%

Base costs

71,683,105

69,482,224

(2,200,881)

Grants

Strategic Investments

1,190,739

Total Department Allocations assigned to specific schools

Percent of FY 13 Budget

71,683,105

(0.03)

(1,010,142)

(0.01)

13%

70,672,963

Department Allocations with Direct Service to Schools and Students: Base costs

36,034,580

32,032,528

(4,002,052)

(0.11)

36,034,580

32,032,528

(4,002,052)

(0.11)

366,793,378

403,459,578

36,666,200 -

0.10

75%

78,593,364

74,224,379

Grants Strategic Investments Total Department Allocations with Direct Service to Schools and Students: Total Allocation to Schools Direct Allocations to Departments Base costs

(0.06)

25,187,075

(4,368,985) (18,791,603)

Strategic Investments

10,212,961

MERF

6,200,000

115,824,415

(6,747,627)

18,293,166

537,577,159

12,177,159

Grants

Total Direct Allocations to Departments

43,978,678

122,572,042

Future Allocations General Fund Expense Total

525,400,000

(0.43)

(0.06)

22% 3%

0.02

100%

General Fund Expenditures by Program Below is an explanation of the program codes that Minnesota school districts are required to use when reporting their expenditures to the Minnesota Department of Education. Program

Definition

Examples

Administration

School district and school administration and heads of instructional areas

District Support Services

Services provided centrally

Regular Education

All activities dealing directly with the teaching of students and the interaction between teachers and students

             

Vocational Education

Courses and activities that develop the knowledge, skills, attitudes and behavioral characteristics for students seeking career exploration and employability

Special Education

Services for Special Education students

Instructional Support

Activities for assisting instructional staff with the content and process of providing learning experiences for K-12 students

Pupil Support

All services to students that are not classified as instructional services

Sites and Buildings

Acquisition, operation, maintenance, repair and remodeling of all facilities and grounds Costs not recorded above

Fiscal and Other Fixed Costs

    

Board of Education Superintendent’s office Associate superintendents Principals Directors of Teaching and Learning, ELL, other instructional areas Human Resources Finance Communications Technology support Legal services Research, Evaluation and Assessment Pre-K-12 classroom teachers Teacher and principal training and recruiting English Language Learner services Gifted and Talented Student Activities Athletics Career and Technical Education (CTE)

                

General Special Education Speech/language services Developmental disabilities Physically impaired Deaf/Hard of Hearing Emotional/Behavioral disorders Learning disabilities Autism spectrum Assistant principals Curriculum development Library/media Professional development Counseling and Guidance Health services Psychologists and social workers Transportation Plant operations

 Post-employment benefits  Insurance

General Fund Expenditures by Program Actual FY 2012

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Administration

$11,201,512

$11,404,329

$11,780,386

$14,007,864

Support Services

11,319,956

14,398,257

17,221,697

28,059,766

237,494,714

240,484,358

240,335,914

241,949,898

4,698,985

4,057,541

5,283,632

5,558,112

102,256,392

108,344,755

109,229,120

104,000,492

Instructional Support

37,109,897

33,832,924

38,554,761

42,343,429

Pupil Support

48,928,901

47,387,600

62,622,642

60,867,422

Sites Buildings

34,457,013

34,269,442

39,801,512

34,020,176

546,254

608,770

579,482

6,770,000

7,542,184

9,207,385

$495,555,808

$503,995,361

$525,409,146

$537,577,159

Regular Education Vocational Education Special Education

Fiscal & Other Fixed Cost Capital Outlay Total

General Fund: Expenditures by Program Fiscal & Other Fixed Cost 1.2%

Administration 2.6% Sites Buildings 6.3%

Support Services 5.2%

Pupil Support 11.3% Instructional Support 8% Regular Education 45.1% Special Education 19.3%

Vocational Education 1%

General Fund: Expenditure Details by Object Actual FY 2010 Salaries & Benefits

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

$402,701,519

$410,499,322

$434,879,985

$439,244,972

Purchase Services

69,926,272

71,116,037

67,039,776

71,504,095

Supplies & Materials

14,946,103

11,477,821

10,414,631

12,618,416

7,542,184

9,207,385

11,592,015

11,776,307

439,730

1,694,796

1,482,739

2,433,369

$495,555,808

$503,995,361

$525,409,146

$537,577,159

Equipment Other Total

Referendum 2012-2013 MPS is committed to using referendum funds to manage class size; support early childhood, literacy, math and science; fund textbooks and technology; and increase rigor, effective instruction and best practices. Class Size

$43,273,800

ELL Classrooms

3,836,004

Fall Staff Adjustment

2,000,000

All-Day Kindergarten

678,600

International Baccalaureate (IB) School Allocations

1,078,800

International Baccalaureate (IB) District Allocation

901,605

Reading Specialists Gateway Technology Instructional Coach for Contract Alternative Schools

2,523,002 174,009

1,174,500

Math Specialists

2,175,000

Material Management Science Center/Science Programs Curriculum Materials

261,000 50,000

Provides one section of all-day kindergarten at Bethune, Hale, Hiawatha, Kenny, Kenwood, Lake Nokomis â&#x20AC;&#x201C; Wenonah, Lyndale and Whittier Bancroft, Hall, Whittier, Anthony, Anwatin, Northeast, Sanford, Edison, Henry, North, Roosevelt, Southwest and Washburn Primarily professional development funds for IB programs Placed at all schools with middle grades programs (Note: general aid paid for reading specialists at K-8 schools) Anthony, Olson, Sanford

Serving elementary students at 18 schools based on academic needs Positions in Teaching & Learning Department for school assignment based on academic needs Positions in Teaching & Learning Department for school assignment based on academic needs Position in Teaching & Learning Department

755,000 1,500,000

English Language Learners (ELL)

602,000

GEMS/GISE/STEM Programs Online Learning

179,000 940,673

Instructional Technology

4,041,000

Mentors

1,791,000

Total

ESL teachers in schools

87,000

Math Specialists

Literacy Specialists

Distributed on a per pupil basis.

Professional development to support effective teaching of English Learners

$68,021,993

Integration Plan 2012-2013 Programs and services funded with integration funds must support the goals of the school district’s state-approved integration plan and advance the goals of increasing racial interaction and increasing academic achievement for students of color. Check and Connect Magnet Schools District Magnet Office

$573,000 3,047,849

Support MPS magnet schools

256,000

Expanded School Choice Schools

150,010

All-Day Kindergarten

330,724

Communications

300,000

Office of Family Engagement

337,000

Alternative & Extended Learning

125,000

AVID Program at Schools

Attendance program at seven comprehensive high schools

1,435,500

AVID: District Services

633,540

TOSAs in Chief Academic Office

1,241,187

GEMS/GISE/STEM Programs

419,000

Armatage, Barton, Burroughs, Dowling, Lake Harriet – Lower

Camp St. Croix, Blake Learning Works Andersen, Anthony, Anwatin, Cityview, Field, Jefferson, Lake Nokomis – Keewaydin, Lucy Laney, Nellie Stone Johnson, Northeast, Olson, Sanford, Seward

Support focused instruction and Response to Intervention

Equity and Diversity Office

1,569,799

Transportation

4,100,000

Transportation

645,000

WMEP Evaluation

100,000

Teachers Institute

100,000

Teaching with a Cultural Eye

126,000

Expand work of National Equity Project

Project SUCCESS

350,000

Freshman orientation camp for eighth-graders

Human Resources

400,000

Development of diverse work force

ACT/SAT tests

103,000

Cover cost of ACT/SAT prep course for students receiving free/reduced priced meals

Grow our Own

200,000

Develop a pipeline to grow our own diverse teaching staff

Mini-Grants

170,391

Honey Bee mini grant

87,000

Total Integration

Magnet school transportation Go-To Student Passes

$16,800,000

Title I Allocations 2012-2013 Title I is a federally funded program through the Elementary & Secondary Act (ESEA) designed to provide support to students to ensure that they meet high standards. MPS receives these funds to provide educational services and resources to schools with at least 35 percent of students who qualify to receive free and reduced priced meals. Title I Allocations Non-Public School Allocations Public School Allocations Research, Evaluation and Assessment (REA) Family Involvement Funds to Schools District Family Engagement and CPEO School Readiness Neglected and Delinquent Services Homeless Highly Mobile Services District Sponsored Services to Students Administration, Required Mailings, Indirect Costs Academic Reform Specialists ISA contract for North High School Summer Professional Development High Priority Total

$1,259,877 15,660,856 250,000 216,964 500,000 3,801,423 165,000 1,000,000 3,000,000 961,739 436,492 175,000 1,000,000 $28,427,351

Community Services The community services fund is used to account for services provided for learning and involvement opportunities for lifelong learners of all ages, including Minneapolis residents. Community services funds are intended to provide K-12 students the opportunity to utilize educational facilities and programs during non-school hours, including the summer months. Fees may be charged for these programs. Community services revenue may also be used for educational programming serving adults with disabilities, schoolage care, Adult Basic Education (ABE), school readiness and Early Childhood Family Education (ECFE). The community education grant fund is also part of the community services fund and is used to account for the revenues and expenditures for activities related to certain grants and projects funded through state or other local outside agencies. Included within these numbers are the resources designated for nonpublic education. Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Beginning Fund Balance

$4,826,399

$4,174,352

$3,365,471

$2,130,665

Annual Revenue

24,158,973

24,187,552

22,018,170

22,630,025

$28,985,372

$28,361,904

$25,383,641

$24,760,690

Annual Expenditures

24,811,014

24,996,433

23,252,976

22,630,025

Ending Fund Balance

$4,174,358

$3,365,471

$ 2,130,665

$2,130,665

Total Revenue

Revenues

Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Local

$12,411,499

$14,765,871

$11,654,320

$12,305,539

State

9,711,933

7,555,200

8,155,523

8,265,937

Federal

2,035,541

1,866,481

2,208,327

2,058,549

Total Revenues

$24,158,973

$24,187,552

$22,018,170

$22,630,025

Expenditures

Actual FY 2010

Salaries & Benefits

$19,356,200

$19,161,352

$18,338,074

$18,297,970

4,091,502

4,025,662

3,333,192

3,343,130

1,151,055

1,354,015

1,463,165

857,344

128,879

357,683

105,182

112,684

83,378

97,720

13,363

18,897

$24,811,014

$24,996,432

$23,252,976

$22,630,025

Purchase Services Supplies & Materials Equipment Other Total Expenditures

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

Food Services The food service fund is a self-sustaining enterprise in which revenue and expenses are balanced over time. It is used to record all financial activities of the school district’s food service program. Food service includes all planning, preparation and serving of meals and snacks in connection with school and community service activities. Eighty-five percent of Food Service Fund revenues primarily come from federal sources. Food service revenue may only be used for food service programs. All expenditures related to meal preparation must be recorded in the food service fund. The majority of expenditures consist of labor and food costs (84 percent). Purchased services, supplies and equipment account for 16 percent of the fund’s expenditures. Eligible expenditures include application processing, meal accountability, food preparation, meal service and kitchen custodial service, according to Minn. Stat. §124D.111, subd. 3. Capital expenditures may be made from the food service fund only if the fund’s year-end restricted balance is greater than the cost of the equipment to be purchased and if prior approval has been obtained from the Minnesota Department of Education’s Nutrition Section, according to Minn Stat. § 124D.111, subd. 3.

Actual FY 2010 Beginning Fund Balance

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

$3,651,883

$4,724,804

$3,701,306

$3,143,893

Annual Revenue

$15,694,485

$14,659,158

$15,005,639

$17,958,074

Total Revenue

$19,346,368

$19,383,962

$18,706,945

$21,101,967

Annual Expenditures

$14,621,564

$15,682,656

$15,563,052

$18,051,208

Ending Fund Balance

$4,724,804

$3,701,306

$3,143,893

$3,050,759

Revenues Federal (Meal Payments)

Actual FY 2010

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

$1,543,827

$1,348,056

$1,516,049

$2,082,699

726,007

660,922

712,394

747,063

13,327,747

12,609,951

12,777,196

15,128,312

96,904

40,229

Total Revenues

$15,694,485

$14,659,158

$15,005,639

$17,958,074

Expenditures

Actual FY 2010

State Federal Other

Salaries & Benefits

Actual FY 2011

Budgeted FY 2012

Budgeted FY 2013

$5,550,230

$5,853,119

$6,150,321

$6,697,681

984,737

1,153,195

844,700

1,076,500

Supplies & Materials

6,781,260

7,145,943

6,962,531

8,776,527

Equipment

1,301,263

1,520,216

1,600,000

1,500,000

4,074

10,182

5,500

500

$14,621,564

$15,682,655

$16,563,052

$18,051,208

Purchase Services

Other Total Expenditures

Capital Projects The capital projects fund is used to record all operations of the school district’s building construction program, which is funded by the sale of bonds or the alternative facilities bonding/pay-as-you-go levy program. At Minneapolis Public Schools, construction is defined as new construction, remodel, capital renewal, capital maintenance, preventative maintenance and repair. Revenue sources in the capital projects fund for fiscal year 2013 are comprised of:      

Fund balance carryover from our December 2011 general obligation bond sale The July 2012 anticipated Alternative Facilities capital renewal bond sale The fall 2012 anticipated general obligation bond sale Annual pay-as-you-go Alternative Facilities levy proceeds (pay 2012) Fund balance transfer to cover construction; included is funding for the reopening of Folwell and Howe, additions at Lake Nokomis – Keewaydin and Lake Harriet – Lower and the remodel of Pratt. Building sale proceeds

View the list of planned capital projects. Capital/Construction Fund Beginning Fund Balance Annual Revenue Total Revenue Annual Expenditures Ending Fund Balance Revenues Local State Federal Other Total Revenue Expenditures Salaries & Benefits Purchased Services Supplies & Materials Equipment/Construction Other Total Expenditures

$18,542,966 26,485,635 45,028,601 24,944,418 20,084,183

$20,084,183 80,554,323 100,638,506 44,378,072 56,260,434

$56,260,434 35,944,051 92,204,485 83,912,124 8,292,361

$46,555,635 66,713,534 113,269,169 82,257,486 31,011,683

10,765,575

14,698,941

19,400,000

1,310,593

15,720,060 26,485,635

65,855,382 80,554,323

16,544,051 35,944,051

111,958,576 113,269,169

11,180,122 4,069,068 2,653,746 7,035,694 5,788 $24,944,418

11,471,508 6,884,686 3,393,767 22,624,121 3,990 $44,378,072

12,141,478 5,723,986 2,992,683 63,022,977 31,000 $83,912,124

11,839,857 2,413,330 2,862,078 65,125,121 17,100 $82,257,486

Debt Service MPS policy places two limits on school district debt. 1. 70 percent of debt should be repaid within 10 years. 2. Total school district annual debt payment shall not exceed 15 percent of total operating revenue. Refinancing shall not be included in the 15 percent calculation. MPS currently owes $413,406,000. The school district will have repaid 69.8 percent by 2019 (seven years) and 74.3 percent by 2020 (eight years). Debt payments, less refinancing, are 11 percent of total operating revenue.

Beginning Fund Balance Annual Revenue Annual Expenditures Ending Fund Balance Revenues Local State Federal Bond Proceeds Total Revenues Expenditures Debt Principal & Interest Debt Refundings Other Total Expenditures

Actual FY 2010 $27,166,206 104,220,757 101,864,250 $29,522,713

Actual FY 2011 $29,522,713 78,509,465 68,981,561 $39,050,617

Budgeted FY 2012 $39,050,617 64,870,443 92,295,478 $11,625,582

Estimated FY 2013 $11,625,582 72,310,162 82,184,966 $1,750,778

58,054,529 12,845,931 33,320,297 $104,220,757

47,111,703 12,411,346 18,986,416 $78,509,465

52,110,443 12,760,000 $64,870,443

59,670,162 12,640,000 $72,310,162

68,518,128 33,165,000 181,122 $101,864,250

68,803,283 178,278 $68,981,561

73,995,478 18,300,000 $92,295,478

70,874,966 10,710,000 600,000 $82,184,966

Minimum Debt Payment Schedule Year Ending

June 30,2012

General Obligations

Certificates of Participation

Bonds Payable

Payable

Principal

Interest

Principal

Interest

Total Debt Payment

Principal

Total Debt Principal & Interest

Outstanding Balance Balance

Interest

2013

$47,790,000

$9,275,672

$17,250,000

$7,269,294

$65,040,000

$16,544,966

$81,584,966

$348,366,000

2014

35,380,000

7,379,189

18,000,000

6,606,874

53,380,000

13,986,063

67,366,063

294,986,000

2015

23,200,000

6,165,528

18,645,000

6,000,174

41,845,000

12,165,702

54,010,702

253,141,000

2016

23,741,000

5,224,675

17,900,000

5,340,468

41,641,000

10,565,143

52,206,143

211,500,000

2017

16,405,000

4,429,686

18,540,000

4,658,793

34,945,000

9,088,479

44,033,479

176,555,000

2018

12,140,000

3,764,974

15,445,000

3,905,543

27,585,000

7,670,517

35,255,517

148,970,000

2019

9,325,000

3,268,490

14,790,000

3,261,223

24,115,000

6,529,713

30,644,713

124,855,000

2020

9,710,000

2,878,787

9,020,000

2,601,253

18,730,000

5,480,040

24,210,040

106,125,000

2021

8,445,000

2,454,871

6,340,000

2,197,430

14,785,000

4,652,301

19,437,301

91,340,000

2022

8,390,000

2,086,644

3,470,000

1,927,130

11,860,000

4,013,774

15,873,774

79,480,000

2023

4,255,000

1,716,758

3,595,000

1,786,405

7,850,000

3,503,163

11,353,163

71,630,000

2024

2,525,000

1,549,223

1,605,000

1,634,525

4,130,000

3,183,748

7,313,748

67,500,000

2025

750,000

1,452,367

1,660,000

1,538,225

2,410,000

2,990,592

5,400,592

65,090,000

2026

42,020,000

741,163

1,720,000

1,438,625

43,740,000

2,179,788

45,919,788

21,350,000

2027

805,000

28,175

1,785,000

1,335,425

2,590,000

1,363,600

3,953,600

18,760,000

2028

1,850,000

1,219,400

1,850,000

1,219,400

3,069,400

16,910,000

2029

1,920,000

1,099,150

1,920,000

1,099,150

3,019,150

14,990,000

2030

2,000,000

974,350

2,000,000

974,350

2,974,350

12,990,000

2031

1,975,000

844,350

1,975,000

844,350

2,819,350

11,015,000

2032

2,050,000

715,975

2,050,000

715,975

2,765,975

8,965,000

2033

2,120,000

582,725

2,120,000

582,725

2,702,725

6,845,000

2034

2,200,000

444,925

2,200,000

444,925

2,644,925

4,645,000

2035

2,280,000

301,925

2,280,000

301,925

2,581,925

2,365,000

2036

2,365,000

153,725

2,365,000

153,725

2,518,725