Presented to the Board of Education April 20, 2017 Proposed Budget FY 2017-18 Draft Presented to the Board of Education April 20, 2017

Superintendent’s Message We believe in our students. Working with our partners, Durham Public Schools will be singularly focused on improving academic outcomes for every DPS student.

Superintendent’s Message Challenges: Enrollment growth in Durham Public Schools has begun to decline even as charter school enrollment has increased. DPS can no longer rely on its fund balance to sustain operational funding. A statutory change in K-3 funding formulas from the state could have a devastating impact on elementary programs. In response to these challenges and in order to maintain financial support for district priorities, Durham Public Schools proposes a combination of revenue increases and program reductions in order to balance the budget.

Budget at a Glance $429.6 Million Dollar Proposed Budget $138.5 Million Dollar Local Budget Funds 4,586 Positions 770 Local Paid Positions 294 Local Paid Teachers Matches state projected raises

Budget at a Glance

Budget at a Glance

Potential Budget Risk House Bill 13 – K-3 class size impact bill If not passed, will require class size changes that will cost the district $6 million The cost will be to hire 100 more classroom teachers, or Impact elementary art, music and physical education classes. Utility rate increases? State legislated compensation increases beyond estimates State employer benefit rate increases beyond estimates Charter School funding changes  Unpredictable impact Whitted School

Proposed Budget FY 2017-18 Summary

DURHAM COUNTY STUDENT GROWTH ADM / Enrollment DURHAM COUNTY STUDENT GROWTH Note: 2008-09 through 2016-17 are 20 day numbers, 2017-18 are projected enrollment numbers for DPS and Charter Schools.

Revenue Local - County $120,554,667 28% Funding Sources (Estimated) Amount % of Total Local - County $120,554,667 28% ¼ Cent Sales Tax Revenue for Operations 9,022,900 2% DPS Local Revenues - $6.1M (E-Rate, Medicaid, Fines and Forfeitures, and Indirect Cost) 8,114,407 DPS Local Revenues - Fund Balance 784,935 0% Capital Outlay (Includes $2M State Lottery) 3,778,503 1% School Construction Bonds 31,031,721 7% State Revenue 203,547,539 48% Federal Revenue 25,252,599 6% Child Nutrition 17,221,380 4% Community Ed/ Grants (includes $508,140 of ¼ cent sales tax and $1.5M for Whitted operational cost) 10,302,613 Total- All Funding Sources $429,611,264 100%

Proposed Budget New Money Request and Potential Risk Growth – Net DPS/Charter Schools $ 630,000 Salary, Supplement and Benefit Increases $2,300,000 Fixed Cost $ 550,000 Benefits Utilities Contracts Total New Money Request Operations $3,480,000 Request for Whitted $1,500,000 Total Request $4,980,000 Potential Risk -K-3 Class size requirement $6,000,000

Budget Increases and Fund Balance Dependency Fixed Cost $ 550,000 Charter Schools Growth (380 students) 1,186,300 Charter School Percentage of New Funding 592,719 Available for Salary and Benefit Increases 1,113,301 Total $3,480,000 Fund Balance Dependency for 2017-18 $784,935

Budget Reductions and New Money Central Services Reductions $8,093,008 School Building Reductions $3,148,006 Total Reductions $11,241,014 New Money Request Operating $3,480,000 Whitted Operations $1,500,000 Total $4,980,000 Total Reductions and New Money $16,221,014

Deferred Needs New or expanding programs Extra-curricular funding Parental leave Teacher compensation extra-duty Substitute pay Teacher recruitment Bus driver incentives/pay increases Living wage

2017-18 Budget Timeline April 20 - Draft –Superintendent’s Message and Proposed Budget April 27 - Superintendent’s Message and Proposed Budget May 4 - Budget Hearing/Special Called Meeting 2017-18 Budget Approved May 15 - Budget Delivered to County May 22 – County Manager’s Budget Presentation May/June ??? – Board of Education Budget Presentation to the County June 12 – County Budget Hearing June 26 – County Budget Approval

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