FY Budget Presentation To: City of Kingsport Board of Education April 26, 2012 Kingsport City Schools Revised After BOE Approval

Budget Totals General Purpose Fund$64,894,084 Was $64,847,484 School Nutrition Fund 3,256,750 Federal Projects Fund 4,045,419 Special Projects Fund 1,066,392 Total All Funds$73,262,645 Items in red are from the previous ( ) presentation. Items in blue a new to this presentation. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions State BEP Revenue: We have received the April estimate of BEP funds from the State of Tennessee. The total amount is $23,289,000. Which is an increase of $401,000 from the original FY 2012 allocation. We are also estimating that we will have 50 more students than the BEP estimate. We have added $170,000 for these students. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions State BEP Revenue: The original projection for BEP funds was $23,683,000. The change in the equalization factor was not known when this projection was made. For Sullivan County the equalization factor decreased approximately 1%. If there were no change in this factor, KCS would have been projected to receive $23,727,000. This amount is $438,000 more than the April estimate. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions State Extended Contract Revenue: The State’s budget for extended contracts has been decreased from $15M to $10M. This is a reduction of 33%. Kingsport has been receiving $192,300 for extended contracts. A 33% reduction for Kingsport is $64,100. At this time there has not been a corresponding reduction in expenditure. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions County property tax: The estimate is based upon a 1.0 % increase in assessed value. This results in an estimate of $14,648,000. This amount is less than the current year estimate by $62,000. The current year estimate is high because of the shift of property tax funds from education to debt service in Sullivan County. This costs KCS approximately $410,000 in property tax funds in FY 2012 and will again in FY 2013 and beyond. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions County property tax: We are also estimating an increase in the Sullivan County ADA% of 0.5%. This generates an increase of $236,000. The net increase in the estimate for property tax revenue is $174,000. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions Local Option Sales Tax: Sales tax is based on a 3% increase. This generates an additional $218,000, which is an increase of $686,000 above the current year estimate. We are projected to exceed this year’s estimate by $468,000. We are also estimating an increase in the Sullivan county ADA% of 0.5%. This generates an increase of $126,000. The total increase in the estimate for Local Option Sales Tax is $812,000. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions Transfers from the City of Kingsport: For Operations: In order to balance revenues and expenditures, the transfer from the City of Kingsport for Operations has been increased by $2,425,030. This brings the total to $11,926,430. At this time there has not been change in the amount that KCS will receive from the City of Kingsport for operations. The current amount is $9,501,400. For Debt Service: The recommended budget for 2013 reflects an increase in the city transfer for debt service of $57,350, for a total of $3,538,450. The combined total is $15,464,880. In FY 2009 the total transfer was $14,893,300. The combined total is $13,039,850. In FY 2009 the total transfer was $14,893,300. Revised After BOE Approval

General Purpose School Fund Revenue Assumptions Total Revenue: At this time the total estimated revenue for the General Purpose School Fund for FY 2013 is $64,894,084. At this time the total estimated revenue for FY 2013 is $62,469,054. Revised After BOE Approval

General Purpose School Fund Expenditures New Initiatives: STEM School 4.0 Middle School Teachers $245,200 Operating Expenses (Not Finalized) 275,000 Total$520,200 Early College Tuition and Fees$ 73,900 Textbooks 25,500 Total$ 99,400 Total New Initiatives $619,600 Revised After BOE Approval

General Purpose School Fund Expenditures New positions added due to increased enrollment: 2.0Elementary Teachers 3.0Elementary Teachers 2.0 Middle School Teachers 1.0ELL Teacher 0.0Custodian 1.0Custodian 0.0 Maintenance Worker 1.0 Maintenance Worker (1.0) Other System-Wide To Be Determined Revised After BOE Approval

General Purpose School Fund Expenditures New positions added due to increased academics: 2.0 High School Teachers 1.0 E-Learning Coordinator 12.0 Academic Coaches 9.0 of these positions were previously funded with $750,000 of Education Jobs funds. 3.0 Elementary Assistants to the Principal Total Costs of All New Positions $1,575,500 $1,518,800 Revised After BOE Approval

General Purpose School Fund Expenditures Employee Pay Increase: Teachers Step Increases (Average 1.5%) $ 371,700 Cost Of Living Increase – 2.5% 823,100 (1.0% = $330,000) Total Costs of Teacher Pay Increase $1,194,800 Revised After BOE Approval

General Purpose School Fund Expenditures Employee Pay Increase: Classified Employees Step Increases – 2.0% (Average 1.5%) $ 136,600 (1.0% = $68,300) Cost of Living Increase – 2.5% 197,700 (1.0% = $79,000) Total Costs of Classified Pay Increase $ 334,300 Total Costs of Employee Pay Increase $1,529,100 Revised After BOE Approval

General Purpose School Fund Expenditures Employee Salary and Benefits: There has also been $200,000 deducted from the projected salary and benefits to account for savings to be realized through employee turnover. Revised After BOE Approval

General Purpose School Fund Expenditures Examples of changes in continuation expenditures include: Health Insurance(7% Increase)$194,650 Retirees Health Insurance 71,300 Worker’s Comp/Risk Admin/ Building & Liability Insurance 49,200 City Disposal Fees 8,000 City Storm Water Fees 12,000 Electricity 125,000 Revised After BOE Approval

General Purpose School Fund Expenditures Examples of changes in expenditures for increased academics include: Local Extended Contract Funds$ 64,100 Increase in Staff Development Budget 42,800 Grade Results Licenses (On-Line Courses) 24,000 Revised After BOE Approval

General Purpose School Fund Summary Previous Estimated Revenue$62,469,054 Increase in City Operations Transfer 2,425,030 Current Estimated Revenue$64,894,084 Previous Expenditure Budget$64,847,484 Add: Assts. to Principals (3.0) 183,900 Add: Grade Results – On-Line Courses 24,000 Deduct: Discretionary Teacher (61,300) Deduct: New Maint. Worker/New Custodian/ Other System-Wide (100,000) Current Expenditure Budget$64,894,084 Revised After BOE Approval

School Nutrition Services Fund The budget for totals $3,256,750. The School Nutrition Service fund continues to be self- supporting. The budget continues to waive the fee charged to students that qualify for reduced-price meals. The amount of revenue lost is approximately $30,000. Revised After BOE Approval

School Nutrition Services Fund Based upon the new federal regulations, schools must now charge a minimum amount for meals. This minimum is based on the federal reimbursement rates. The proposed budget includes an increase in meals rates as follows: Breakfast – All Schools $1.40 $1.25 Lunch – Elementary Schools $2.05 $1.85 Lunch – Middle/High Schools $2.25 $2.10 Revised After BOE Approval

Federal Projects Fund Title I$1,724,048 Title II 324,654 Title III 11,419 Race to the Top 400,000 I.D.E.A. Part-B 1,425,600 I.D.E.A. Pre-School 41,137 Carl Perkins 118,561 Total$4,045,419 Revised After BOE Approval

School Special Projects Fund Coordinated School Health$ 123,050 Family Resource Center 50,000 Homeless Education 37,000 Lottery After-School Grant 265,500 State Pre-School Grants 491,322 Safe Schools 45,800 Truancy Intervention 53,720 Total$1,066,392 Revised After BOE Approval

Capital Needs Dobyns-Bennett High School – Wireless Network Base Wireless$169,000 Includes 150 Access points so each classroom will have coverage. Up to 35 to 40 students can connect to one access point with no loss in network speed. Also includes all switches and other equipment needed to establish network. Includes estimate to run cabling to each access point. This would allow Bring Your Own Device (BYOD) or other 1:1 programs. Also wireless would extend to the stadium. Home side only. Podnet – Wireless Management System$ 40,200 Allows the wireless network to be controlled. Instead of having a shared password to get on the wireless network, users would login just like they do on a desktop computer now. Allows a number of other control features for the wireless network. Rogue Access Control System$ 59,000 This system detects users who are trying to share their Verizon or other cell phone service with other users. Phones can be used as wireless hotspots. This system detects them and shuts down the hotspot. It will also show within 3 feet where the hotspot is located. Total$268,200 Revised After BOE Approval

Capital Needs Dobyns-Bennett High School Secure Entrance Health Science Classrooms Business Academy ROTC Legion Center Custodial Apartment Enclosed Walkway from Cafeteria to CTE Midland Center Revised After BOE Approval

Kingsport City Schools This concludes today’s presentation. Questions and Answers Revised After BOE Approval