Revised FY 2010 Operating Budget & Approved Economic Stimulus Package William R. Hite, Ed.D. Interim Superintendent of Schools PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 2010 Financial Overview On December 17th the Interim Superintendent proposed a budget of $1.67 billion. This budget produced over $106 million in savings, while maintaining resources to achieve our vision that all students graduate college and career ready. Since that time the Board has held three public hearings, and three budget work sessions to gather public input and review budget material. However on January 21st the Governor proposed a budget that was over $70 million lower than the proposed budget submitted by the Interim Superintendent. Therefore, a revised proposed budget is being presented tonight. 2 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 2010 State Aid Revenue Changes FY 2010 revenues decreased by -4.26% over FY 2009 revenues. This overall decrease was a result of the following state aid actions: Overall Wealth increase of 4% over FY 2009. Overall Enrollment decrease of over 900 students. GCEI only funded at 30%. Non-Public Placements is reduced from an 80/20 funding formula to a 50/50 funding formula. Governor changed Supplemental formula from 1% to flat funding and included 100% of retirement payments in the calculation. 3 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

Other Revenue Changes MOE Calculation increase of $1.9 million. Rental of Buildings revenue increase of $1.2 million. Use of Fund Balance increase of $2.5 million will be directed towards one time non-recurring costs. 4 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 2010 Proposed and FY 2010 Revised Revenues Change from FY 2010 Proposed % Change State Aid $ 951,855,153 $ 874,881,759 $ (76,973,394) -8.1% Federal Aid $ 96,347,324 $ - 0.0% Board Sources $ 17,571,758 $ 18,814,916 $ 1,243,158 7.1% County Contribution $ 609,316,675 $ 611,216,675 $ 1,900,000 0.3% Prior Year Fund Balance $ - $ 2,500,000 $ 2,500,000 100.0% Total Revenue $ 1,675,090,910 $ 1,603,760,674 $ (71,330,236) -4.26% 5 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 09 Approved Operating Budget and FY 2010 Proposed Operating Budget Below illustrates the difference between the FY 09 Approved Operating Budget and the FY 10 Proposed Operating Budget: 6 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

Economic Stimulus Package PGCPS is projected to receive approximately $90 million in funding from this law. The funding will be distributed as follows: 7 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 2010 Recommended Reductions The table below illustrates additional recommended reductions by position type: 8 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 2010 Recommended Reductions Continued The table below illustrates other recommended reductions: 9 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

FY 2010 Recommended Reductions Continued Even with the reductions that were presented we still require an additional $40.7 million in cuts. After careful consideration we are recommending the following: Additional Salary Lapse of $1.9 million. Reduction of Half Year Increment of $9.1 million. Furlough of $29.7 million. 10 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org

Restoration from the Economic Stimulus Package If PGCPS receives the discretionary funding of approximately $30 million from the economic stimulus package potential restorations in reductions can be considered. If the Board chooses to consolidate 12 schools it could save approximately $10.1 million further restoring cuts to this revised budget. The table below illustrates a proposed restoration of some of the reductions: 11 PRINCE GEORGE’S COUNTY PUBLIC SCHOOLS • www.pgcps.org