Budget Report to NISD Board of Trustees Dr. Ryder Warren Monday, February 27, 2017

Presentation Agenda State of District Fund Balance Five-Year Forecast First Staffing Request Second Staffing Request Future Budget Decisions Existing and Future Needs

Financial State of the District Amount of Fund Balance Available to Use Beginning 2017-18 Budget Cycle $106.5 Million

Five-Year Forecast Analysis Budget Year 2017-18 2018-19 2019-20 2020-21 2021-22 Beginning Fund Balance $106,478,900 $84,533,945 $66,841,262 $47,298,457 $24,751,669 Estimated Revenue $177,290,266 $191,650,407 $200,741,988 $211,627,199 $227,150,181 Current Expenditure Levels $199,235,221 $209,343,090 $220,284,793 $234,173,987 $252,317,496 Deficit Amount ($21,944,955) ($17,692,683) ($19,542,805) ($22,546,788) ($25,167,315) Ending ($415,646)

2017-2018 Staffing Request February 27, 2017 First Request

Explanation of Secondary Options TASB review had several options to consider for becoming more efficient with staffing. Most significant area was to increase academic course loads for athletic coaches. High School Example – NISD could gain 13 academic periods per campus. This would equal six (6) teaching positions that would save approximately $372,000.

Explanation of Elementary Options Option #1 is current staffing levels. This is strictly adhering to 22:1, and it is adding more than $1 million to staffing budget. Option #2 is full budget cutting. This puts the 24:1 ratio in place for Kindergarten through 4th grades. Option #3 is the compromise. This holds us to 22:1 for Kindergarten through 2nd grades and places the cap of 24:1 on 3rd and 4th grades. Option #4 is an addition. This holds us to 22:1 for Kindergarten through 3rd grades and places the cap of 24:1 on 4th grade.

Elementary Staffing Option 1 Option 2 Option 3 Option 4 Student/   Option 1 Option 2 Option 3 Option 4 Student/ 22:1 K-4 24:1 in K-4 22:1 K-2 22:1 K-3 Teacher Ratio 24:1 3-4 24:1 4th Number of Teachers Requested Teachers: +17 Teachers: +0 Teachers: +1 Teachers: +9 Absorb up to 10 teachers through attrition Budget Impact $1,054,000 ($620,000) $62,000 $558,000 Projected Class Size Waivers 63 26 11 Maximum Student Count K-4: 22 K-4: 24 K-2: 22 K-3: 22 5: 27 3-4: 24 4: 24 5: 27 5: 27 Option 1: Current staffing plan in place this year-typical elementary staffing plan for growth Option 2: Plan put in place in 2011-increase class sizes in K-4 by no more than 1-2 students /class. Option 3: Keep our primary classes-grades K-2 at 22 student max and put a cap on class sizes in 3rd-4th of 24 students Option 4: K-3 at 22:1 and grade 4 cap at no more than 24 students 

22:1 K-2 24:1 3-4 Teachers: +1 $62,000 26 K-2: 22 3-4: 24 5: 27 Option 3 Student/ Teacher Ratio 22:1 K-2 24:1 3-4 Number of Teachers Requested Teachers: +1 Budget Impact $62,000 Projected Class Size Waivers 26 Maximum Student Count K-2: 22 3-4: 24 5: 27

Recommendation Explanation Option #3 Does the Following – Keeps the 22:1 ratio for primary grades (K – 2nd) Saves NISD $992,000 (or 16 teachers) Increases SOME classes in 3rd – 4th grades only one to two more students There are 170 3rd and 4th grade classes across district (85 per grade level) Current projections see 26 classrooms with 23 students Current projections predict NO classrooms with 24 students

Growth Positions Budget Impact Elementary, Middle, High School $1,586,000 Adams MS & Elementary #18 Principal, Office Manager, Support Staff $ 428,520 Special Education $ 460,000 Fine Arts $ 255,000 Athletic Stipends $ 431,050 Contingency Teacher Positions (10) $ 620,000 Total $3,780,570

Budget Options To Be Determined

District Programs Program 2.5% Reduction 5% Reduction 10% Reduction General Administration $40,939 $78,131 $216,668 Curriculum & Instruction $46,964 $93,931 $187,860 Technology $47,892 $95,783 $191,568 Transportation $210,860 $421,720 $843,440 Facilities & Maintenance $415,212 $830,424 $1,660,848 TOTALS $761,867 $1,519,989 $3,100,384

Co-Curricular Programs 2.5% Reduction 5% Reduction 10% Reduction Athletics $44,056 $88,113 $176,225 Fine Arts $33,217 $66,434 $132,867 TOTALS $77,273 $154,547 $309,092

Campus Budgets Campus 2.5% Reduction 5% Reduction 10% Reduction High Schools $26,880 $53,759 $107,521 Middle Schools $12,477 $24,956 $49,912 Elementary Schools $24,041 $48,078 $96,158 TOTALS $63,398 $126,793 $253,591

Possible Budget Savings 2.5% Reductions = $902,538 5% Reductions = $1,801,329 10% Reductions = $3,663,067

Existing and Future Needs Campus / District Staffing Ratios PreKindgarten Program Expansion PreSchool Programs for Children with Disabilities (PPCD) Expansion District Intervention Specialists Instructional Coaching Model Student Behavioral Unit

Discussion