FY25 Budget Discussion - April Retreat 04.18.2024

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Agenda Item

c. Budget Presentation (Updated 4.18.2024)

Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
    FY2025
Budget Discussion
     April 2024
                              AGENDA
• Local, State, Federal, Economic Updates

• Available Resources

• Planned Expenditures
   • Schools
   • Divisions
   • Initiatives

• Next Steps
 Updates
 Local, State, Federal and Economic




Presented by: Byron Schueneman, CFO
                    SB 233 – School Choice
• School Choice
  • $6,500 towards private school tuition, home schooling supplies, therapy,
    tutoring and early college courses

  • Average private school tuition in Georgia is $11,893 per year and tuition
    across the State ranges from $1,042 to $57,500

  • Limitations
     • Lowest 25%
     • Capped at 1% of QBE ($141M)

  • QBE impact
     • Decrease QBE earning in subsequent year
     • Dollar amount depends on program
                SB 233 – School Choice
• 59 Dekalb schools represent lowest 25%

• FTE at those schools is 43,658 or 47.4% (of 92,071 total)

• For each 1% of eligible FTE that utilizes the voucher (4,366 students),
  the district would lose $1,864,197.75 in QBE the following year
HB 581 - 3% Cap & Millage Rate Hearings
March 2024 – Inflation 3.8%
February 2024: Unemployment 3.1%   (↓.01%)
December 2023: Wage Growth 4.7%
                           FY2025 State Budget
                                 What is required by the State?


         FY2025 State Budget                                  SHBP Increase PP
• Minimum Salary Increases                       Planned              CERTIFIED   CLASSIFIED
   • $2,500 for Certified (~appx 3.3%)                 1-1-2022        $945.00     $945.00

   • $23.7M price tag                                  1-1-2023
                                                       1-1-2024
                                                                      $1,580.00
                                                                      $1,580.00
                                                                                   $945.00
                                                                                   $1,195.00
                                                       1-1-2025       $1,580.00    $1,445.00
                                                       1-1-2026       $1,580.00    $1,580.00
• State Health Benefit Increase (SHBP)
   • $13M price tag
                                                 Actual               CERTIFIED   CLASSIFIED
                                                       1-1-2022        $945.00      $945.00

• TRS Increase                                         1-1-2023
                                                       7-1-2024
                                                                      $1,580.00
                                                                      $1,760.00
                                                                                    $945.00
                                                                                   $1,195.00
   • 19.98 to 20.78                                    1-1-2025       $1,760.00    $1,580.00

   • $5.3M price tag                               FY24 INCREASE PP   $2,160.00    $3,810.00
                                               ESSER III
• MTSS
    • $10.5M to Title I & $2.5M to General Fund

• Capital Projects (roofing/HVAC/other)
    • Contribute $22.5M to Capital Improvement Fund

• Ignite, Face Advocates, Academic Skills Center
    • General Fund / possibility of future grants

• School Leadership Support
    • Coordinators to Title IV, Others to General Fund

• Retention and other miscellaneous employee payments
    • One more year of support from ESSER
    • Limit in future years
Fall 2024 Enrollment Forecast
                     After modeling new housing developments, birth
                     data, and historic enrollment patterns, the
                     enrollment forecast for October 2024 is 90,561
                     students or down (-2,967) from current
                     enrollment.
Fall 2024 Enrollment Forecast
                    1. Elementary enrollment is expected
                       to decrease slightly with a smaller
                       incoming Kindergarten class


                    2. Middle-school enrollment is
                       expected to decrease with slightly
                       with a smaller incoming 6th grade
                       class.


                    3. High-school enrollment is
                       expected to decrease slightly with
                       a smaller incoming 9th grade class.
                Fall 2024 Enrollment Forecast
                                      *Enrollment data is by school and
                                      does not include students who live
                                      out-of-district, or   who    attend
                                      specialty schools. Regions were
                                      forecasted separately from the total
                                      District.




Presented by: Byron Schueneman, CFO
                                 Resources




Presented by: Byron Schueneman, CFO
                                     Resources
• Local
   • Property Taxes – based on 6.5% growth projection
   • Digest finalization by Board of Assessors on May 24th

• State
   • QBE - $2,500 for earned positions, SHBP and TRS increase
   • Cap on Local Fair Share (LFS)

• Other
   • Transfers In, Indirect Costs, On Behalf – remain the same

• Fund Balance Usage
   • Up to $100M unassigned based on Policy DCL
   • $22.5M assigned fund balance for Gold Case
                     Local - Property Taxes

Change   Estimate at 22.98 mills
                                                                   Increase from PY
  0%       $ 850,768,130.12        18.0%

  1%       $ 860,654,129.37        16.0%
                                                                                      15.6%
  2%        $ 870,540,128.61       14.0%                                                         14.0%

  3%        $ 880,426,127.86       12.0%

  4%        $ 890,312,127.10       10.0%
                                                                        9.1%
  5%        $ 900,198,126.35        8.0%          8.1%
                                                                                                            6.5%
  6%        $ 910,084,125.59        6.0%                    5.9%

 6.5%       $ 915,027,125.21        4.0%


  7%        $ 919,970,124.84        2.0%


  8%        $ 929,856,124.08        0.0%
                                        2018   2019      2020        2021       2022          2023       2024      2025

  9%        $ 939,742,123.33
 10%        $ 949,628,122.57
State Resources: Quality Basic Education (QBE)

                              2021            2022            2023          2024          2025         Change
    FTE (Student Counts)      99,916          94,745          95,025        93,528        90,561         -2,967

       QBE Earnings
                           656,157,629     644,912,487     640,532,302   685,346,303    717,101,028    31,754,725
      Local Fair Share
                           (133,626,132)   (143,182,227)   (152,200,410) (175,655,286) (183,008,040)   (7,352,754)
         Austerity
                           (54,257,756)    (21,247,826)                                                     -
    Pupil Transportation
                              40,545        4,890,569       5,276,006     5,276,006     11,073,501     5,797,495
          Nursing
                            2,098,597       1,982,853       2,141,160     2,168,187      2,242,395       74,208
    Charter Supplement
                                 -                           491,722       510,680        522,186        11,506
           Total
                           470,412,883     487,355,856     496,240,780   517,645,890    547,931,070    30,285,180
               Unassigned     Designated    Fund Balance   FB > 15% ($)
              Fund Balance   Fund Balance      > 15%
August 2022       17%            15%            2%           $26.5M
August 2023       22%            15%            7%           $100M
Difference       5.0%           0.0%           5.0%
              Available Resources
                  FY24 Revenue       FY24 Weight       FY25 Revenue       FY25 Weight
  Local       $     929,360,365.00     63.9%       $     973,284,741.28     63.6%
  State       $     521,814,939.48     35.9%       $     554,931,070.00     36.2%
  Other       $       3,539,413.14      0.2%       $       3,539,185.00      0.2%
              $ 1,454,714,717.62        100%       $ 1,531,754,996.28        100%



              FY24 Available FB                    FY25 Available FB
Unassigned
FB > 15%          $26,500,000.00                       $100,000,000.00
Assigned FB        $45,000,000                          $22,500,000
                  $71,500,000.00                       $122,500,000.00
                                Planned Expenditures




Presented by: Byron Schueneman, CFO
                  FY2025 Proposed Budget

• Schools (Divisions 120-127)
   • Resource Allocation Method/Plan (RAMP) x FTE


• Divisions (010-115)
   • Zero-Based
   • 10% reduction to discretionary (contracted services, supplies,
     travel, dues and fees)
   • 2% reduction of non-school based staff
• Initiatives
   • Ongoing Initiatives
       • Continuation of FY24 Superintendent Initiatives
   • Proposed Initiatives
       • New initiatives for FY25
FY24 School Allocations and Average Cost:
                                                Allotment / FTE Average Salary Calculation
          All Funds              FTE          $ Total         Average Salary   State Health     TRS         Other      Avg Sal + Benefits
          Principal            127.00     $22,433,744.28       $134,476.28      $13,500.00    $25,310.39   $3,356.98      $176,643.66
      Assistant Principal      245.00     $35,614,257.49       $108,477.01      $13,500.00    $20,648.62   $2,738.68      $145,364.32
         Bookkeeper            127.00      $8,758,946.11        $45,684.02      $13,500.00    $8,638.33    $1,145.73      $68,968.08
         Counselor             271.50     $30,757,436.53        $81,829.26      $13,500.00    $15,854.92   $2,102.88      $113,287.06
          Custodian            738.00     $41,656,231.59        $35,226.30      $13,500.00    $6,814.62    $903.84        $56,444.76
           JROTC                48.00      $5,434,595.30        $84,094.28      $13,500.00    $13,796.58   $1,829.88      $113,220.74
   Library Media Assistant     114.25      $6,221,021.37        $33,438.04      $13,500.00    $6,633.14    $879.77        $54,450.95
      Media Specialist         124.00     $13,979,319.08        $81,750.51      $13,500.00    $15,438.31   $2,047.62      $112,736.44
            MTSS               118.00     $13,803,182.79        $87,849.67      $13,500.00    $13,796.58   $1,829.88      $116,976.13
      Paraprofessional         753.00     $36,253,685.21        $28,640.85      $13,500.00    $5,301.64    $703.17        $48,145.66
       Plant Engineer           43.00      $3,554,372.22        $57,034.85      $13,500.00    $10,705.12   $1,419.85      $82,659.82
          Registrar             43.00      $3,110,054.75        $48,445.51      $13,500.00    $9,165.68    $1,215.67      $72,326.85
        School Nurse           126.00      $8,921,855.20        $47,283.68      $13,500.00    $8,850.79    $1,173.90      $70,808.37
 Speech Language Pathologist
                                82.25      $8,970,568.16        $78,487.11      $13,500.00    $15,077.75   $1,999.80      $109,064.66
        Social Worker           53.50      $6,004,852.93        $80,980.70      $13,500.00    $15,679.88   $2,079.66      $112,240.24
   Special Ed Lead Teacher      84.78     $10,117,313.84        $86,766.99      $13,500.00    $16,836.09   $2,233.01      $119,336.09
          STAR Sub             127.00      $5,963,108.35        $28,332.00      $13,500.00    $4,521.86    $599.75        $46,953.61
           Teacher             6,220.25   $635,046,566.97       $72,966.96      $13,500.00    $13,796.58   $1,829.88      $102,093.42
        Psychologist            42.60      $4,819,497.14        $82,423.46      $13,500.00    $15,194.93   $2,015.34      $113,133.74
          Secretary            250.00     $14,718,580.43        $37,289.90      $13,500.00    $7,137.73    $946.70        $58,874.32
    ISS Paraprofessional        42.00      $1,993,573.40        $28,005.39      $13,500.00    $5,262.64    $698.00        $47,466.03
FY25 School Allocations and Average Cost:
                                           Allotment / FTE Average Salary Calculation
All Funds                     FTE        $ Total           Average Salary     State Health     TRS          Other          Avg Sal + Benefits
Principal                      127.00     $22,889,727.20        $134,476.28       $14,250.00   $27,944.17      $3,563.62            $180,234.07
Assistant Principal            245.00     $36,295,077.49        $108,477.01       $14,250.00   $22,541.52      $2,874.64            $148,143.17
Bookkeeper                     127.00      $8,970,998.81         $45,684.02       $14,250.00    $9,493.14      $1,210.63             $70,637.79
Counselor                      271.50     $31,290,878.80         $81,829.26       $14,250.00   $17,004.12      $2,168.48            $115,251.86
Custodian                      738.00     $42,604,608.70         $35,226.30       $14,250.00    $7,320.03       $933.50              $57,729.82
Library Media Assistant        114.25      $6,343,453.94         $33,438.04       $14,250.00    $6,948.42       $886.11              $55,522.57
Media Specialist               124.00     $14,279,177.16         $81,750.51       $14,250.00   $16,987.76      $2,166.39            $115,154.65
Paraprofessional               753.00     $37,349,855.07         $28,640.85       $14,250.00    $5,951.57       $758.98              $49,601.40
Plant Engineer                  43.00      $3,639,868.96         $57,034.85       $14,250.00   $11,851.84      $1,511.42             $84,648.12
Registrar                       43.00      $3,183,990.60         $48,445.51       $14,250.00   $10,066.98      $1,283.81             $74,046.29
School Nurse                   126.00      $9,149,143.02         $47,283.68       $14,250.00    $9,825.55      $1,253.02             $72,612.25
Speech Language Pathologist     82.25      $9,140,166.13         $78,487.11       $14,250.00   $16,309.62      $2,079.91            $111,126.64
Social Worker                   53.50      $6,109,939.57         $80,980.70       $14,250.00   $16,827.79      $2,145.99            $114,204.48
Special Ed Lead Teacher         84.78     $10,287,755.91         $86,766.99       $14,250.00   $18,030.18      $2,299.33            $121,346.50
STAR Sub                       127.00      $6,250,963.83         $28,332.00       $14,250.00    $5,887.39       $750.80              $49,220.19
Teacher                       6,212.25   $648,019,171.82         $72,966.96       $14,250.00   $15,162.53      $1,933.62            $104,313.12
Psychologist                    42.60      $4,940,972.79         $82,423.46       $14,250.00   $17,127.59      $2,184.22            $115,985.28
Secretary                      249.00     $15,008,953.97         $37,289.90       $14,250.00    $7,748.84       $988.18              $60,276.92
ISS Paraprofessional            42.00      $2,050,316.22         $28,005.39       $14,250.00    $5,819.52       $742.14              $48,817.05
         FY 2025 Budget Survey Results
       Board of Education/District Response
Top Ranking Budget Priorities

   ▪    Student Intervention Program – SST/MTSS/RTI

   ▪    Expansion of Early Learning / Pre-Kindergarten

   ▪    Increase Counselors
        FY 2025 Budget Survey Results
       Community & Employees Response
Top Ranking Budget Priorities

▪   Expansion of Early Learning / Pre-Kindergarten

▪   Paraprofessional in Every Kindergarten Classroom
                                FY 2025 Budget
                              Ongoing Funded Initiatives
Ongoing Funded Initiatives
• MTSS Specialist

• ERP Implementation

• FACE Advocates

• Early Learning Expansion

• Horizon Support

• Deferred Maintenance

• Additional school support

• *Ignite Teacher Residency
                                         FY 2025 Budget
                               Proposed Initiatives (Non-Salary)
                 Proposed Initiatives

• SFN All Kids Eat Free!

• EIP Advancement

• 3 Advisors per High School

• Extended Nursing Hours (6 to 8hrs)

• Additional Social Workers & Counselors

• Additional Assistant Principal/Elementary
  Coach (each grade band)

• Athletic Director (1 per Cohort)

• Capital Improvement

• *Security associate at elementary schools
     FY 2025 Budget
Proposed Initiatives (Salary)

             Inflation 3.8%   Unemployment   Average Wage
                                  3.1%          Growth,
                                              Government
                                                 4.7%

  Teachers (E Schedule)             All Others
  Step + $3,000 + Incentive         Step + 4% + Incentive
                                FY2025 Budget
                          Proposed Initiatives (Salary)

   District              Certified                Classified
   DeKalb        $3,000 + Step + Incentive   4% + Step + Incentive
    Cobb
   Fulton              4.5% + Step               4.5% + Step
Atlanta Public
Decatur City       $2,500 + Step + 5%             5% + Step
  Gwinnett            $3,000 + Step               4% + Step
   Forsyth         1% + $2,500 + Step             5% + Step
   Clayton
FY 2025 District Expenditure Budget
FY 2025 District Revenue Budget
Fund Balance Policy DCL
Fund Balance: Identified / Allowable Uses
                   FY25 Beg FB      FY25 Planned Use   FY25 End FB
   Unassigned
   FB > 15%        $100,000,000       $-27,500,000     $72,500,000
  Assigned FB      $22,500,000        $-22,500,000         $0
                  $122,500,000.00     $-50,000,000     $72,500,000


 • Allowable FB Use:
     • $22,500,000 Local Capital Project Fund
     • $5M (of $20M) Deferred Mtce / One time
Next Steps




Presented by: Byron Schueneman, CFO
                                                  Next Steps
• Thursday, April 18 th – Board Retreat at Georgia Tech
    • Initial presentation of the FY25 General Fund Budget
• Monday, May 6th - Executive Session, Work Session, Community Input Session & Business Meeting
    • Tentative Adoption of the Proposed FY2025 Budget/Revenue Projection
    • Tentative Approval of Resolution for Tax Levy (22.98)
• May 20-24 – BOE Mini-Session
• May 27-31 – Finalized Tax Digest from Tax Commissioner
• Monday, June 17th - Virtual Called Meeting 10:30am
    • 1st Virtual Budget Hearing
    • 1st Millage Rate Hearing (22.98)
• Monday, June 17th – Virtual Called Meeting 6:00pm
    • 2nd Millage Rate Hearing (22.98)
• Monday, June 24th - Called Meeting 11:00am
    • 2nd Budget Hearing
    • 3rd Millage Rate Hearing (22.98)
    • Approval of the Final Tax Levy Resolution (22.98)
    • Adoption of the Final FY2025 Budget/Revenue Projection for all funds
Questions?