Budget Development 2016/2017 May 9, 2016 Board Workshop
Agenda • Final Assumptions (What’s Changed?)
• Property Value and Tax Rate Update • Compensation Discussion and Recommendations • Review 2016/2017 Proposed Budget
• Fund Balance Strategies • Next Steps 2
2016/2017 Final Budget Assumptions Enrollment – 74,115 (PASA February 2016 Low Growth)
11.2% Property Value Growth / 14.5% Prior Year Comptroller Growth 43 Approved/Requested Positions in Aggregate Totaling $1.83M 7 Additional Campus Formula Positions Requested for May 16th Approval
ESL Structural Efficiencies and DAEP Consolidation Cost of Teacher Step – Estimated $2.5M
No Universal Salary Scale Adjustments Employee Compensation Adjustments of Approximately $1.85M Additional Bus Routes (Sullivan, DAEP, EDGE) IDEA-B Positions Moving to General Fund Totaling $2M
3
Property Value Growth Freeze Adjusted Net Taxable Value 0.18 15.40%
0.16
0.14
12.55% 11.20%
0.12
10.10% 0.1
8.26%
0.08 5.21%
0.06 0.04 2.13% 0.02
0.82%
0 -0.67%
-0.02
-2.07% -0.04
2007
2008
2009
Source: Fort Bend Central Appraisal District
2010
2011
2012
2013
2014
2015
2016E 4
Reduction of $0.02 to I&S Tax Rate
From $0.30 to $0.28 5
Impact of PV Increase on Average FBISD Home
As Proposed at $1.32
Published 2015/2016
Proposed 2016/2017
Proposed Change
Avg Market/Assessed Value of Residences
$256,914
$274,659
6.91%
Avg Taxable Value of Residences
$219,386
$240,706
9.72%
M&O Rate
$1.04
$1.04
$0.00
I&S Rate
$0.30
$0.28
-$0.02
Total Tax Rate
$1.34
$1.32
-$0.02
$2,880.97
$3,113.77
Annual Taxes on Average Residence Annual Increase in Taxes
$232.80
Monthly Increase in Taxes
$19.40
% Change
8.08%
Source: Fort Bend Central Appraisal District
8.08%
6
Tax Rate Comparison of Peer Districts 2.50
Tax Year 2015 2.00
1.50
1.00
0.50
-
M&O Tax Rate Source: FBISD Finance and District Websites
I&S Tax Rate
7
General Fund Revenue History 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% 07-08
08-09
09-10
10-11
11-12
State Aid
12-13
Local
Source: FBISD Finance
13-14
14-15
15-16
16-17 Proposed
Tax Levy 8
2016/2017 Compensation Recommendations
Board Meeting May 9, 2016
Teacher Pay Scale History 66,000
2015/2016 FBISD Teacher Pay
64,000 62,000 60,000 58,000
FBISD 2015-16 56,000 54,000
FBISD 2014-15 52,000 50,000 48,000 0 Source: FBISD Finance
3
6
9
12
15
18
21
24 10
Salary Scale Overview 66,000
2015/2016 Teacher Pay Compared to other current scales
64,000 62,000 60,000 58,000
Katy ISD
56,000
Lamar CISD
54,000
Cy-fair ISD
52,000
Fort Bend ISD
50,000 48,000 0
3
6
Source: FBISD Finance & District Websites
9
12
15
18
21
24
11
Salary Scale Overview 66,000
2016/2017 Teacher Pay - No step Compared to other current scales
64,000 62,000 60,000 58,000
Katy ISD
56,000
Lamar CISD
54,000
Cy-fair ISD
52,000
Fort Bend ISD
50,000 48,000 0
3
6
Source: FBISD Finance & District Websites
9
12
15
18
21
24
12
Compensation Annual Reviews
Job Reclassification
Internal Equity (CYE)
External Equity (Benchmarking)
13
Compensation Strategy District Goal 2: FBISD will recruit, develop and retain effective teachers and staff. Performance Objective 1: Implement the HR People Strategy that incorporates best practice for the recruitment, hiring and development of talent, a competitive compensation structure, and effective onboarding of new hires.
Strategy Description
Evidence that Demonstrates Success
Internal Equity- Creditable Year of Experience • (CYE) • Internal salary equity will improve for 30% of • FBISD’s workforce on the traditional pay • structure by July 2016 with the remaining 70% to be completed by 2018. Implement an effective and efficient stipend administration process. • Clearly define work duties for each stipend. • Establish market competitive stipend salary. • Improve process so employees know what they are being competitively compensated for and they will be paid timely and accurately for service performed; thus, reducing overpayment and underpayment to our employees.
Performance Indicator: CYE uploaded into PeopleSoft Metric: # employee's CYE uploaded into PeopleSoft Target Goal: 30% CYE uploaded
• • •
Performance Indicator: Stipend descriptions written Metric: # completed stipend descriptions Target Goal: 50% completed
• • •
Performance Indicator: Stipend benchmarking completed Metric: # completed stipend benchmarking Target Goal: 50% completed
• • •
Performance Indicator: Stipends processing Metric: # stipends processed timely and accurately 14 Target Goal: 90% completed
Annual Review Timeline Oct -Nov
Nov-Dec
Jan-Mar
Mar-May
May
• Requests from leaders
• E-team reviews requests
• HR processes requests
• Comp recommendations vetted with stakeholders
• Comp recommendations presented to Board 15
2014/2015 Comp Reviews 44 5 2 262 225 166 22 7 11 1 148 46 18 320 250
Police Officers Sergeants Lieutenants Aide Severe Aide Non-Severe Clerks I - IV Registrar (Assistant/Paraprofessional) Supervisor Extended Day Advisor College and Career Readiness (CCR) Librarian Digital Resources and Systems Counselors Coordinators Therapist, Physical and Occupational Bus Drivers Custodians 16
2015/2016 Comp Reviews 253 70 2 197 11 18 18 5 255 232 27
Campus Aides Receptionist Lieutenants Office Support (Admin Assist & Executive Assist) Athletics- Head Coach/Head Athletic Trainer Human Resources Payroll, Benefits and Accounting Assistant Buyer/Buyer Instructional Professionals Campus Administration Instructional Leaders
17
Attrition Data
Benchmark Data
Recommendation •
Move LSSPs from PG103 to PG104
*TPS- Teacher Pay Scale
18
Attrition Data
Benchmark Data
Recommendations •
No change in pay grade. Equity review conducted for adjustments for Executive Assistant I.
19
20
21
Recommendation
Budget
Reclassification
$73,063
Internal Equity
$953,753
External Equity
$329,723
Stipends
$492,000 Total $1,848,539
22
2016/2017 Proposed Budget
23
2016/2017 Proposed General Fund Revenue Sources Local
State
Federal
1%
$ Millions Local Revenues State Revenues Federal Revenues Total Revenues
Source: FBISD Finance
$364.2 216.8 7.8 $588.8
Source: FBISD Finance
37%
$588.8M 62%
24
2016/2017 Proposed Budget By Major Function
Source: FBISD Finance
25
2016/2017 Proposed Budget By Major Object
Source: FBISD Finance
26
2016/2017 Proposed Budget
2016/2017 Proposed Budget in Aggregate ($000’s) Revenue
$
Operating Expenditures Other Sources/Uses Other Financial Sources Net Change in Fund Balance Beginning Fund Balance Ending Fund Balance Notes:
$
2014-15
2015-16
2016-17
Actuals
Estimate
Estimate
557,846
$
591,022
588,804
559,652
578,051
592,626
-
(6,761)
-
1,610
1,000
1,500
(196)
7,210
(2,323)
170,090 169,894
169,894 177,104
177,104 174,781
$
Remember: Fund Balance ≠ Cash Balance
•
Enrollment growth based on PEIMS Snapshot Data • CPTD is prior year and adjusted for hold harmless • CAD is certified value adjusted for $25K exemption
$
Source: FBISD Finance
$ • • • •
+1033 students CPTD = 14.45% CAD = 11.20% F&R = 36.50% 27
2016/2017 Proposed Budget
Fund Balance Strategies Projected
Current
Committed & Assigned Fund Balance
YE 2015
YE 2016
YE 2017
YE 2018
Non-spendable
$
4,839,981 $
1,839,981 $
4,839,981 $
1,839,981
Major maintenance
$
6,387,000 $
6,400,000 $
6,400,000 $
6,400,000
Instructional materials
$
2,680,000 $
2,680,000 $
2,680,000 $
2,680,000
Transportation
$
2,500,000 $
1,500,000 $
1,500,000 $
-
New instructional facilities
$
2,000,000 $
4,500,000 $
4,500,000 $
-
Economic Stabilization
$
- $
7,822,721 $
3,500,000 $
-
Assigned fund balance
$
5,919,425 $
5,919,425 $
5,419,425 $
5,919,425
$
24,326,406 $
30,662,127 $
28,839,406 $
16,839,406
Total Committed & Assigned FB*
*Excludes 30 day state revenue stabilization and Unassigned FB as per Board Policy
Source: FBISD Finance
28
2016/2017 Proposed Budget
Fund Balance Strategies REVENUE
Projected
Projected
Projected
2015-16
2016-17
2017-18
Committed Fund Balance
30,662,127
28,839,406
16,839,406
State Revenue Stabilization
48,367,300
49,385,500
50,051,200
Unassigned Fund Balance - Ending
98,074,085
96,555,900
99,368,800
$ 177,103,512
$ 174,780,806
$ 166,259,406
90 Day M&O Reserve
144,101,552
146,027,042
147,995,463
Over/(Under) 90 Days
2,339,833
(85,642)
1,424,537
25%
25%
25%
91 Days
90 Days
91 Days
Total Fund Balance
Undesignated FB as % of Exps. FB in Days of Operating Expenses
Source: FBISD Finance
29
2016/2017 Proposed Budget
Millions
Unassigned Fund Balance History $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 2008
2009
2010
2011
Unassigned
2012
2013
2014
2015
2016E
Committed (1 mo.)
Source: FBISD Finance
30
Next Steps
Count Down to Budget Adoption…
May 9 • Budget Briefing
May 16
June
• Compensation, Stipends, and Adjustments Approval
• Budget Hearing
• Additional Position Approvals
• Fund Balance Resolution
• Call Date for Budget Hearing
• Budget Adoption
• Final Amendment
31