November 14th Superintendents Report Budget Process for FY2024 (Added 11.14.2022)

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Agenda Item

1. Superintendent's Report (Updated 11.14.2022)

Summary: Presented by: Dr. Vasanne S. Tinsley, Interim Superintendent
DeKalb County School District
  Superintendent’s Report
    November 14, 2022
   DeKalb County School District
FY2024 Budget Development Process


Presented by:
Masana Mailliard
Interim Chief Financial Officer

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                DeKalb County School District (DCSD)
                    Overview of Budget Process

    Address district priorities and
A   initiatives                              Seek stakeholder input                    E

B   Adopt a budget calendar                  Divisions develop initial budget plans    F

    Carryout activities over ten to twelve   Superintendent and Board of Education
C   months                                   discuss budget plans and millage rate     G

                                             Finalize and adopt the millage rate and
D   Release budget requests                  budget                                    H

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                       Some Key Budget Drivers in FY2023-24
Students
                                                    Organization
• Provide opportunities for all students to
  succeed                                           • Enhance DCSD environment

• ... Remediation and high-quality instruction      • ... Safe and secure facilities
• ... Access to resources and support systems       • ... Access to quality tools and equipment



Employees                                                    Sustainability
• Retain and Attract                                         • Source supplies, resources
• ... Compensation, flexibility                                and programs
• ... Health and wellness, growth and                        • ... Innovation and efficiency
  professional development

Community                                           Digitalization
• Build family and community trust and              • Data-driven decision culture
  partnerships
                                                    • ... Fast and reliable information
• ... Communication and transparency
                                                    • ... Enhanced performance
• ... Stakeholder input in decisions

                                                                                                  4
           State of Business

Post pandemic outcomes indicate a
need to strengthen supports for
students. Student enrollment
declining.
                                          Federal Funds
                                          Many COVID 19 Relief grants will end
                                          in FY2023-2024.

Teachers and employees nationwide
are exiting the education field to work
in other industries.
                                          Rising Costs
                                          Delays in sourcing goods and services.


Economists predict inflation could be
worse next year – recession looming.



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Phase 1 : Budget Work
                     SEP                   OCT                     NOV                   DEC


Superintendent   September – December : Budget Oversight Committee and Superintendent are developing
Priorities                                        budget priorities.



 Student                               October – December: FTE & Enrollment forecasts developed to
 Enrollment                                  determine/assess school needs including RAMP.


                                            October – November: Surveys released
 Stakeholder
                                           to gather input from Board of Education
 Input                                                 and community.


                                                           November - December: Divisions and School
 New Budgets                                                    Budgets drafted for FY2023-24.


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                                                                                        Current FY2022-23 Revenue Budget

   General Fund Key Revenue Source Comparison
       Top General Fund
           Revenue                                                                      Other Funds
                                                       $1,307,278,288
           Sources


                                                 39%


        61% Local Taxes                                                 61%           Contributing to
                                                                                        Operations
Primarily Property Tax revenues
                                                                               •   Federal and State Grants

        31% State QBE*                                                         •   School Nutrition
                                                   Local Tax Revenue

State QBE and Categorical Grants                                               •   Capital
                                                   State QBE and Categorical
(*QBE FTE earnings tied to student enrollment)
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Target Discretionary Budget Reductions                     Divisions Target a
                                                         Reduced Budget Amid
                                                           Economic Outlook

                                                         • Address critical needs
  $206M              -10%                                • Use disciplined approach
                                                         • Collaborate across
  FY23 Divisions                                           programs
  Discretionary    FY24 Discretionary    $20.6M
   Budget Total       reduced to                         • Benchmark budget activity
     $206M              $185M
                                                         • Tighten spending
                                         Anticipated
                                        Budget Savings




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                                                                                            Current FY2022-23 Expenditures
Analysis of General Fund % Budgeted
       Expenditure by Object
                                                                                                    General Fund
                                                                                                     FY2022-23
  77%                                                                                                 Budgeted
                                                                                                    Expenditures


                                                                                                  $1,327,076,427
                                                                                              Personnel                        $1.02B
                                                                                              Supplies, Materials and Equip.    $73M
                                                                                              Purchased Property Services       $71M
                                                                                              Other Purchased Services          $63M
                                                                                              Purchased Services                $60M
                 6%            5%          5%          5%         1%            1%
                                                                                              Property
                                                                                              Other Objects and Uses
                                                                                                                                $19M
                                                                                                                                $18M
                                                                                              Dues and Fees                      $2M


 Personnel     Supplies,     Purchased     Other     Purchased   Property   Other Objects
             Materials and    Property   Purchased    Services                and Uses
              Equipment       Services    Services



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Phase 2 : Budget Work
                     JAN                      FEB                       MAR


                 January – February : Finalize draft budgets
Superintendent     and revenue projections to hold work
Draft Budget              sessions with the Board

                                                               March : Mini-sessions are
                                                                 held with the Board
 Sessions with
 Board                                                          Board members will have
                                                                 opportunities to review
                                                               details of the draft budgets


                                                               Formal BOE presentation of
Community                                                       General Fund Budget and
                                                                  Revenue Projections




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Phase 3 : Budget Work
                        April                  May                    June

                    April: Board adopts
Superintendent     tentative budget and
Draft Budget      tax levy. FY24 Budget
                        is published


 Sessions with           (If needed: April/May for
 Board                   continued mini-sessions.)



 Community                                            May and June:
                                               Hold Public Hearings on Budget
 Input
                                                        and Millage


 Final Adoption                                                        June:
 Budget and                                                     Final Adoption of
                                                                FY24 Budget and
 Millage Rate
                                                                   Millage Rate

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