FY15 Preliminary Budget Recommendation

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FY15 Preliminary Budget Recommendation
Finance Update
Presentation to School Committee February 5, 2014
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BOSTON PUBLIC SCHOOLS Finance
Summary

• Thanks to the City of Boston, our general fund
  target appropriation for FY15 rose 35.9 million
  to 973.3 million, a 3.8 increase compared to
  FY14
• This comes at a time when other City departments
  are being asked to submit lower budgets than in
  FY14
• However, we continue to face a challenging budget
  situation in FY15 due to rising costs and a drop
  in federal and state funding, and we are unable
  to present a fully balanced budget at this point
• We have increased by 5 million the resources
  allocated to schools through Weighted Student
  Funding (WSF)
• The central office budget is not yet finalized,
  and addressing the remaining challenge will
  require changes in central office services
• Our efforts to fully balance the budget will
  continue over the next few weeks as teams of
  school-based and centrally based staff examine
  the budget proposal and recommend cost reductions

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BOSTON PUBLIC SCHOOLS Finance
Agenda

• What this budget accomplishes
• School funding overview
• Budget challenges
• How we have begun to meet the financial challenge
• Budget timeline

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BOSTON PUBLIC SCHOOLS Finance
We are introducing a new school choice process

• We are moving forward deliberately to implement
  the new process of student assignment, including
  the recommendations from the External Advisory
  Committee
• More K-8 pathways
• More inclusive and dual language program options
• Overlays for English Language Learners (ELLs) and
  Special Education to provide services closer to
  home
• The associated costs of these changes some
  anticipated, some not are built into the school
  funding process through enrollment projections
  and start-up costs for new classrooms
• We are also working toward producing a Facilities
  Master Plan
• General fund costs for the facilities changes
  approved in November and December 2013 add up to
  approximately 1.6 million in FY15

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BOSTON PUBLIC SCHOOLS Finance
preparing to implement the Common Core standards
and PARCC assessments

• 1 million in equipment and another 1 million in
  upgrades to technology infrastructure in
  preparation for the online PARCC assessments

renewing our investments in technology to
support teachers, families, and students

• 1.2 million to support Laptops for Learning
• 675,000 for continued use of the Student
  Information System

PARCC Partnership for Assessment of Readiness
for College and Careers
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BOSTON PUBLIC SCHOOLS Finance
extending hiring autonomy to all schools to hire
qualified, diverse candidates early

• 6.1 million to make our early hiring initiative
  a success
• 400,000 to support hiring diversity

investing in upgrades to our facilities

• an increase of 1 million to meet deferred
  maintenance needs

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BOSTON PUBLIC SCHOOLS Finance
supporting Extended Learning Time (ELT) in
schools across the district

• 2.75 million for ELT at current and former
  turnaround schools and 3.5 million for ELT at
  other BPS schools
• 1.4 million for Acceleration Academies during
  school vacations

and making additional investments in services
for some of our highest-need students.

• 3.2 million for students with Emotional
  Impairment
• 5 million for English Language Learners in
  grades 6-12
• 1.5 million for inclusion specialists in 26
  schools

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BOSTON PUBLIC SCHOOLS Finance
Agenda

• What this budget accomplishes
• School funding overview
• Budget challenges
• How we have begun to meet the financial challenge
• Budget timeline

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BOSTON PUBLIC SCHOOLS Finance
Sources of school funding

• Weighted Student Funding 452M
• Special programs (non-WSF) 28M
• Title I funding 14M
• Standard allocations built into school budgets
  22M
• (nurses, special education coordinators,
  and food services staff)
• Rules-based soft landings 5M
• Buybacks for Autonomous Schools 2M
• Additional adjustments1 4M
• Total 528M

1Additional adjustments include EEC/ELC
supplements and other non-rules-based allocations
Notes These figures do not include the school
services that are budgeted centrally. All
figures are current as of January 31st and
may change as the budgeting process continues.
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BOSTON PUBLIC SCHOOLS Finance
Our starting point is to fund the needs of
students through Weighted Student Funding (WSF)

• Students receive a per-pupil allocation that is
  weighted based on certain characteristics
• Grade level
• Program (e.g., English Language Learners, Special
  Education, Vocational Education)
• Student characteristics (e.g., poverty)
• Academic performance (e.g., high risk)
• Schools receive a minimal foundation budget plus
  the sum of
• the allocation for each student

Example weights
Type Weight FY15 Funding
Base weight 1.0 3,923
High Risk (Grade 9) 0.2 785
ELL (Grade K0-5, ELD Level 1-3) 0.09 353
Student with Disabilities Low Severity (Resource Room) 1.0 3,923
Student with Disabilities Autism 4.3 16,868
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BOSTON PUBLIC SCHOOLS Finance
We have reviewed and updated these weights to
best reflect student needs
Reduced weights for students with disabilities in
early childhood classes and PTC classes to
reflect appropriate staffing models
Total amount 452,142,838
Reduced weight for Emotional Impairment (EI) due
to change in funding model (overall funding for
EI is increasing)
Increased weights for ELLs at ELD levels 1-3 in
grades 6-8 and 9-12
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WSF reflects our principles as a district
BOSTON PUBLIC SCHOOLS Finance
Principle Description
Student focus Provides resources based on students, not on buildings, adults, or programs
Equity Allocate similar funding levels to students with similar characteristics, regardless of which school they attend
Transparency Easily understood by all stakeholders
Differentiation based on need Allocate resources through a comprehensive framework that is based on student needs
Predictability School allocation process is predictable and is structured to minimize school-level disruption
School empowerment Empowers school-based decision-making to effectively use resources
Alignment with district strategy Supports the Acceleration Agenda, our five-year strategic plan
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BOSTON PUBLIC SCHOOLS Finance
Our current enrollment is close to last years
enrollment, but lower than we had projected
Projected Enrollment 58,284 Actual
Enrollment (as of Dec. 2013) 56,735 District
Enrollment Variance 1,549 (-2.66)
Enrollment Changes in K0-2, FY11-FY13

• This variance is particularly driven by a
  leveling off of our early childhood enrollment
• We were prepared to welcome 1,024 new students in
  grades K0-2 this year, in line with the increases
  we have seen since FY11
• Instead, we have seen an increase of 382 students
  in these grades (as of Dec. 2013)

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BOSTON PUBLIC SCHOOLS Finance
There was a great deal of variation in
projections between schools in FY14
Some schools actually enrolled significantly more
students than projected
13.3M over allocation to schools beyond a 5
variance
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BOSTON PUBLIC SCHOOLS Finance
Under-enrolled classes place pressure on a
schools budget

• Example full vs. under-enrolled 6th grade class

Max. Class Size Enrollment Per-Student Amount WSF Allocation Classroom Cost Difference
Class 1 28 26 5,491.77 142,786.02 133,023.00 9,763.02
Class 2 28 20 5,491.77 109,835.40 133,023.00 (23,187.60)

• The cost of empty seats places particular
  pressure on small schools with fewer classrooms
• Larger schools have more of an opportunity to
  make up for under-enrollment in some classes with
  full enrollment in others

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BOSTON PUBLIC SCHOOLS Finance
A number of factors contributed to changes in
enrollment projections in FY15

• Key Factors
• Corrections to FY14 enrollment projections
• Home Based school choice plan
• SPED and ELL overlays
• K-8 expansions
• Roll-out of inclusive programs

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BOSTON PUBLIC SCHOOLS Finance
We have worked with school leaders to address
budget challenges based on lower projections

• In January, representatives from multiple
  departments met with school leaders to review
  their budgets
• These budget collaboratives included
  representatives from
• Academics (Network Superintendents)
• Budget
• Office of English Language Learners
• Office of Human Capital
• Office of Special Education and Student Services
• Budget collaboratives helped school leaders meet
  their students needs within their given WSF
  allocations

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BOSTON PUBLIC SCHOOLS Finance
What is a soft landing?

• In general, we expect schools to meet their needs
  using their WSF allocations
• In some cases, however, schools may require
  additional allocations because of extraordinary
  circumstances
• In these cases, the district may provide a soft
  landing (one-time funding)
• Guiding principles on soft landings
• This funding is a temporary measure to address
  particular challenges, not a permanent allocation
• The situations that may require soft landings
  change from year to year as the context changes
• All soft landings are rules-based, and rules are
  applied uniformly across all schools

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BOSTON PUBLIC SCHOOLS Finance
Soft landings in FY15

• For FY15, 5 million in rules-based soft landings
  have been issued to schools in 6 categories
• Supports for under-enrolled classrooms due to
  district priorities (SPED and ELL Overlays,
  inclusion rollout, programs being phased out)
• Clinical/administrative supports for
  substantially separate classes for emotional
  impairment
• Supports for Primary Transition Classes (PTC
  classes) being phased out
• Supports for under-enrolled classes for Students
  with Interrupted Formal Education (SIFE students)
• Supports for inclusion start-up for schools
  implementing formal K2 inclusion for the first
  time
• English as a Second Language (ESL) supports for
  English Language Learners in general education
  seats currently in progress

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BOSTON PUBLIC SCHOOLS
BOSTON PUBLIC SCHOOLS Finance
We continue to send more resources to schools
through WSF than many other large urban districts

• We are increasing our total WSF allocations to
  schools by over 5 million in FY15
  compared to FY14
• 53 of the FY14 general fund budget is going
  directly to schools

of School Department Budget (General Fund
Grants)
Source Georgetown University, Edunomics Lab,
Nov. 2013
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BOSTON PUBLIC SCHOOLS Finance
Agenda

• What this budget accomplishes
• School funding overview
• Budget challenges
• How we have begun to meet the financial challenge
• Budget timeline

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BOSTON PUBLIC SCHOOLS Finance
Budget challenge
36M
13M
32M
55M
60M
Remaining challenge
14M
Despite a 3.8 increase in the General Fund
appropriation and identified cost reductions, the
budget challenge caused by increased costs and
new initiatives remains at 14M
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BOSTON PUBLIC SCHOOLS Finance
State requirements on funding for charters have
led to decreases in net Chapter 70 for BPS
Total Chapter 70 aid for Boston
Net state aid for BPS
(Millions)

FY15 figures are estimates based on the
Governors budget proposal
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BOSTON PUBLIC SCHOOLS Finance
and the portion of BPSs General Fund budget
covered by net Chapter 70 has declined
With the reduction in state funding, the City has
been responsible for funding an increasing
percentage of the BPS budget
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FY15 figures are estimates based on the
Governors budget proposal
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BOSTON PUBLIC SCHOOLS Finance
We also project a decline of approximately 32
million in external funds
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BOSTON PUBLIC SCHOOLS Finance
Staffing for our higher projected enrollment
contributed to our costs in FY14
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BOSTON PUBLIC SCHOOLS Finance
The rising costs of contracts for staff also
contribute to our cost increases

• Since FY09, average salaries for general
  education teachers have risen by 16
• Increases to compensation and benefits will cost
  the district 37 million in FY15

88,682
76,751
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BOSTON PUBLIC SCHOOLS Finance
Despite these challenges, our budget invests in a
number of new key priorities

• Early hiring 6.1M
• Facilities Master Plan 1.6M
• School technology infrastructure 1M
• Increase in deferred maintenance 1M
• PARCC 1M
• Building an accountability system for school
  quality 500K
• Superintendent search process 125K

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BOSTON PUBLIC SCHOOLS Finance
Agenda

• What this budget accomplishes
• School funding overview
• Budget challenges
• How we have begun to meet the financial challenge
• Budget timeline

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BOSTON PUBLIC SCHOOLS Finance
Our strategic approach

• Our budget challenge provides the opportunity to
  realign our work to best support schools
• Approximately 55 million of cost reductions have
  been identified
• The identified reductions fall largely into seven
  categories
• (16.6M) Central office reorganization,
  consolidation, and reduction of services
• (11M) Adjustments to enrollment projections
• (10M) Changes to transportation services and
  delivery
• (5.7M) Reductions in non-direct services for
  Special Education
• (5M) Decrease in health insurance premiums
• (4M) Strategic reductions in grant-funded
  services
• (1.6M) Consolidation of program offerings to
  match projected student enrollment

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BOSTON PUBLIC SCHOOLS Finance
Despite these strategic reductions, we are still
facing a 14 million budget challenge

• We have been engaging in deep discussions on how
  to increase efficiency and reduce costs
• Addressing the remaining challenge will require
  changes in central office services
• School budgets have already been set through WSF
  and will not be reduced
• We will convene budget teams of school-based and
  central office staff to continue identifying
  opportunities for cost savings and reductions in
  services
• We will present these recommendations at an
  upcoming meeting

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BOSTON PUBLIC SCHOOLS Finance
Agenda

• What this budget accomplishes
• School funding overview
• Budget challenges
• How we have begun to meet the financial challenge
• Budget timeline

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BOSTON PUBLIC SCHOOLS Finance
We look forward to discussing the budget with you
in a variety of forums

• Dec 13 School budgets released
• Jan 8 - 17 Budget collaboratives with schools
• Jan 20 - 31 Probable Org
• Feb 5 Superintendents recommended budget
  to School Committee
• Feb 26 School Committee meeting
• Mar 4 Budget hearing (6 pm)
• Mar 12 Budget hearing (5 pm) and School
  Committee meeting (6 pm)
• Mar 18 Budget hearing (6 pm)
• Mar 26 School Committee votes on BPS budget

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BOSTON PUBLIC SCHOOLS Finance
For more information

• A number of documents are already available on
  our website
• Budget Presentation
• FY15 Budget Memo
• FY15 Allocations
• FY15 WSF School-by-School comparison
• WSF Templates for all schools
• Website bostonpublicschools.org/budget
• Email budget_at_bostonpublicschools.org
• Twitter bpsbudget