Proposed Budget FY 2017-2018

BUDGET OVERVIEW Fiscal year – October 1, 2017 through September 30, 2018 Fund Types – General – State and Local Funds Special Revenue – Federal Programs and Local School Public Funds Debt Service – State and Local “Set Asides” for Payments Capital Projects – Capital Funds (Local Bond/Fleet Renewal Fiduciary – Non Public Local School Funds (Booster Clubs, Etc.) Expenditure Categories – Instruction/Instruction Support, Operations and Maintenance, Transportation, General Administrative, Debt Service (Debt Payments), Transfers to Child Nutrition and Local Schools, and Other (Preschool) Budget Goals – Continue to Operate Schools and District at an Efficient Level Ensure Programs and Services are Effective and can be Measured Provide Accountability for Public Resources (State, Local, and Federal). Maintain a 1 month fund balance reserve.

General Fund Revenues

General Fund Revenues State Revenues Foundation Program Salaries Fringe Benefits Other Current Expense Classroom Instructional Support At Risk Preschool Program Technology Coordinator School Nurse Program Alabama Reading Initiative Career/Tech O&M Transportation Operations Fleet Renewal

FOUNDATION PROGRAM Funding determined by prior year data 20 days after Labor Day attendance report LEAPS Report Calculations are school based Requirements for participation 10 mills local tax support Teachers must be paid in accordance with approved salary schedule Funds must be allocated to schools in an equitable manner

Local fund matching requirements Foundation Program requires 10 mills of local tax effort ($5,441,690) Each mill of tax represents approximately $544,169 of revenue

STATE REVENUES Education Trust Fund (formerly known as “Special Education Trust Fund” or “ASETF” – now known as “ETF”) Created by the Legislature of Alabama in 1927 “…for educational purposes only” “…for the support, maintenance and development of public education and capital improvements relating to educational facilities…”

MAJOR SOURCES OF REVENUE FOR EDUCATION TRUST FUND • State income tax • State sales and use tax – 4% basic rate • State utility tax (levied by the State on the gross sales of electricity, water, gas, telegraph and telephone services) ETF allocation is distributed monthly – in 12 equal monthly payments – to local school systems.

Foundation Program (State and Local Funds) FY 2018 FY 2017 Change Salaries $29,066,038 $ 28,969,791 $ 96,247 Fringe Benefits $11,635,479 $ 11,490,169 $ 145,310 Other Current Expense $10,179,915 $ 9,782,172 $ 397,743

Other Current Expenditures What is paid with OCE funds? CNP Pass-thru - $1,156,121 Support Salaries (Aides, Custodial, bookkeepers, Certain Central Office employees, Maintenance, Transportation Costs not covered by State funds) Utilities Maintenance/Janitorial Supplies Locally funded teachers Nurse Expenditures not covered by state allocation

Grade Divisors FY 2017 FY 2018 Grades K-3 14.25 14.25 Grades 4-6 21.85 21.43 Grades 7-8 19.70 19.70 Grades 9-12 17.95 17.95

Unit comparison Earned Foundation Units Teachers 514.63 509.70 4.93 FY 2018 FY 2017 Change Teachers 514.63 509.70 4.93 Principals 17.00 17.00 0.00 Assistant Principal 10.50 10.00 0.50 Counselors 19.00 18.50 0.50 Librarians 16.50 16.50 0.00 Career Tech Director 2.00 2.00 0.00 Career Tech Counselor 1.00 1.00 0.00 Total 580.63 574.70 5.93 System ADM 8,948.45 8,894.70 53.75

ADM Comparison by Cost Center   FY 2017 FY 2018 Difference Ashville Elementary 421.25 431.75 10.50 Ashville High 444.30 462.30 18.00 Ashville Middle 343.95 340.65 -3.30 Margaret Elementary 636.45 633.00 -3.45 Moody Elementary 800.80 838.25 37.45 Moody Middle 585.90 592.90 7.00 Moody High 667.10 681.85 14.75 Moody Jr. High 385.10 400.30 15.20 Ragland High 493.10 497.40 4.30 Springville High 705.55 696.95 -8.60 Springville Middle 529.75 571.50 41.75 Springville Elementary 870.10 860.90 -9.20 Odenville Elementary 384.25 355.00 -29.25 Odenville Middle 489.85 502.70 12.85 Odenville Intermediate 329.00 334.70 5.70 St. Clair County High 575.85 548.75 -27.10 Steele Jr. High 232.40 199.55 -32.85   8,894.70 8,948.45 53.75

Earned Unit Comparison by Cost Center FY 2018 FY 2017 Difference Ashville Middle 20.06 20.15 (.09) Ashville Elementary 30.75 30.12 .63 Ashville High 29.25 28.25 1.00 Margaret Elementary 43.43 43.15 .28 Moody Elementary 63.33 60.69 2.64 Moody Middle 32.17 31.32 .85 Moody Jr. High 23.82 23.05 .77 Moody High 42.49 41.66 .83 Ragland High 32.03 31.74 .29 Springville High 43.34 43.81 (.47) Springville Middle 32.72 30.34 2.38 Springville Elementary 57.66 57.99 (.33) Odenville Elementary 27.42 29.46 (2.04) Odenville Middle 29.35 27.50 1.85 Odenville Intermediate 20.82 20.11 .71 St. Clair County High 35.07 36.58 (1.51) Steele Jr. High 13.92 15.78 (1.86) Board of Education 3.00 3.00 0.00

Instructional Support FY 2018 FY 2017 Student Materials $ 421.514/earned unit - $244,741 405.4534/earned unit Technology $ 211.51301/earned unit – $122,812 168.34348/earned unit Library Enhancement $ 30.4396/earned unit - $17,674 21.2621/earned unit Professional Development $ 77.5519/earned unit - $45,029 63.7862/earned unit Textbooks $ 54.51776/adm $487,850 54.07313/adm Common Purchase $ 0.00/earned unit - $0.00 0.00/earned unit

Other State Funds FY 2018 FY 2017 Change School Nurse Program $ 333,879 $ 331,987 $ 1,892 Technology Coordinator $ 42,711 $ 35,412 $ 7,299 Transportation Operations $ 3,623,081 $ 3,565,242 $ 57,839 Capital Purchase $ 2,323,842 $ 2,220,776 $ 103,066 At-Risk $ 227,337 $ 228,800 $ -1,463 Career Tech O&M $ 50,464 $ 48,759 $ 1,705

General Fund Revenue Local Revenues Ad Valorem Taxes County-Wide 4.5 mill District Wide 3 mill County Reappraisal 6 mill Alcohol Beverage Tax County Sales Tax 1% Medicaid Outreach Program

Local Taxes/Revenues Countywide taxes are allocated and distributed on Foundation Program (“ADM”) basis; district taxes stay in the district in which collected.

Budgeted Local Revenues FY 2018 FY 2017 Difference Percent District-Wide 3 Mill 1,750,000 1,690,000 60,000.00 3.6% District-Wide 4.5 Mill 2,695,000 2,600,000 95,000.00 3.7% District-Wide 6 Mill 3,563,000 3,450,000 113,000.00 3.3% Sales Tax 1% 5,075,863 4,830,000 245,863.00 5.1% Total 13,083,863 12,570,000 513,863

Ad ValoremTaxes Ad valorem – Latin, according to the value of A “mill” is equal to 1/10 of one cent; one mill is equal to ten cents on each $100 of assessed value of taxable property. A single-family owner-occupied home with a fair market value of $100,000 has an assessed value of $10,000 and, per mill, will produce $10 of tax revenue per year.

Four Classes of Property as set out in the Constitution of Alabama of Alabama of 1901

How are property taxes Calculated

General Fund Expenditures

Fringe Benefits PEEHIP $800.00/Month $800.00/Month FY 2018 FY 2017 PEEHIP $800.00/Month $800.00/Month Retirement 12.24% 12.01% FICA 6.20% 6.20% Medicare 1.45% 1.45% Unemployment Compensation .04% .05% Sick Days 5 5 Personal Days 2 2

Budgeted Utilities FY 2018 FY 2017 Change Electricity 1,771,097 1,686,746 84,351 Water and Sewage 371,026 343,437 27,589 Gas 117,541 113,074 4,467

Proposed General Fund Expenditures BEGINNING BALANCE 5,328,032.61 PROJECTED GENERAL FUND REVENUE 64,595,719.00 EXPENDITURES: INSTRUCTIONAL SERVICES 40,271,261.12 INSTRUCTIONAL SUPPORT SERVICES 9,945,000.88 OPERATIONS & MAINTENANCE 5,039,912.25 AUXILIARY SERVICES 3,929,892.00 GENERAL ADMINISTRATIVE SERVICES 2,230,325.00 CAPITAL OUTLAY 0.00 DEBT SERVICES OTHER EXPENDITURES 2,133,506.06 TOTAL EXPENDITURES 63,549,897.31 OTHER FUND SOURCES (USES): OTHER FUND SOURCES 1,385,186.06 OTHER FUND USES 2,408,810.81 TOTAL OTHER FUND SOURCES (USES) (1,023,624.75) EXCESS REVENUES & OTHER SOURCES OVER (UNDER) EXPENDITURES & OTHER FUND USES 22,196.94 PROJECTED ENDING FUND BALANCE 5,350,229.55

Federal Revenues

Federal Revenues Every Student Succeeds Act (ESSA) Title I Title II (Teacher Professional Development & Class-Size Reduction) Title III (English Language Learner) Title I Migrant Title X (Homeless Education) IDEA Part B Preschool Federal Vocational Funds Child Nutrition

Federal Funds Title I, Part A $1,559,045 Title II $267,966 16.05 Teachers and 1 Instructional Aide: AES 3.6 teachers; AMS 2.50 teachers; OIS 2.23 teachers; OMS 1.70 teachers, 1 instructional aide; RHS 4.40 teachers; SJHS 1.62 teachers. Routine set asides: Admin, Family Engagement, Homeless, School Improvement Specialist, Focus, Foster Care.    Title II $267,966  3.97 Teachers: SCCHS 2; MHS 1.44; SHS .53.  Professional Development materials, services, subs, registration and travel Title III $15,836  Summer EL Camp  

Federal Funds (IDEA) IDEA Part B $1,787,227 IDEA Preschool $27,477 9.0 Teachers, 2 Psychometrist 6.0 Aides 1 Special Education Coordinator 1 Special Education Coordinator Assistant 1 Special Education Bookkeeper 1 Special Education Clerk Instructional materials and supplies ESY Program Homebound IDEA Preschool $27,477 .55 Teacher (.45 IDEA) Salary and Benefits

Child Nutrition Program Projected CNP Revenue 2018 Fiscal Year: Federal Reimbursements $ 4.458.000 Rebates from State Grocery Bid $ 150,000 Daily Sales (all paid meals, a la carte) $ 1,112,275 Pass-Thru funds $ 1,156,121 Total Projected Revenues $ 6,876,396 Projected CNP Expenditures 2016 Fiscal Year: Food and food preparation supplies $ 2,564,000 Salaries (including insurance, benefits and subs) $ 2,912,378 All Other Expenses: (Indirect Cost, Purchased Services $ 1,243,358 Includes approved equipment purchases at all schools, office supplies, general supplies, maintenance & janitorial supplies, phone, garbage and repairs) Total Projected Expenditures $6,719,736

Federal Revenues Title I 1,559,045 1,498,376 60,669 FY 2018 FY 2017 Difference Title I 1,559,045 1,498,376 60,669 Title II 267,966 239,670 28,296 Title III 15,836 26,058 (10,222) IDEA Part B 1,787,227 1,715,796 71,431 IDEA Preschool 27,477 34,057 (9,580) Career tech 92,102 90,356 1,746 CNP 4,458,000 4,100,000 358,000

DEBT SERVICE

Debt Service - $3,843,098 Total Debt Service for Bond Issue , Bus Lease, and Leveraged PSF Funds is $44,061,161.95. Bond payment for FY 2018 will be $ 3,096,990. Loan will be paid off in 2029. Capital Lease payments for FY 2018 will be $223,750. Lease will be paid off in June 2018. Payment on Leveraged PSF Funds will be $293,564. This payment is withheld before release of PSF Funds. Total amount borrowed is $1,744,158. Loan will be paid off in 2021. QSCB Bond payment for FY 2018 will be $15,461. Loan will be paid in December 2020. QZAB Bond Payment for 2018 will be $213,333. Total amount borrowed is $3,200,000. Loan will be paid off in 2019.

Capital Funds

PSF Funds Appropriation – $2,323,842 Leveraged Payment - $293,564 Building Insurance - $305,000 Bond Payments- $649,893 QZAB Bond Payment - $213,333

Transportation – Fleet Renewal Fleet Renewal (Buses): SCCBOE Fleet –117 Route Buses (regular route and special needs) 2017 Buses Eligible for Fleet Renewal (10 years old or less) – 77 (Not Funded - 39) Funding is currently $6,344 per bus over 10 year period or $63,444. The average bus cost is $88,000.

FIDUCIARY – NON-PUBLIC LOCAL SCHOOL FUNDS Booster Clubs/School Affiliated Organizations $579,916 (17 local schools plus Career Tech)

BUDGETED REVENUES – ALL FUNDS

EXPENDITURES – ALL FUNDS

QUESTIONS 2ND BUDGET HEARING – 8/31/2017 Laura Nance, CSFO laura.nance@sccboe.org