Dr. Gregory E. Thornton CEO, Baltimore City Public Schools FY16 Budget Update 1 Community Budget Forum Mergenthaler High School March 12, 2015 Donald Kennedy, Chief Financial Officer

Agenda 2 Executive Summary Key Investments Budget Challenges How we are addressing the challenge Budget Timeline

World Class K-12 School Systems Success Drivers 3 Driver 1. Early learning - focus on well-being of all children beginning well before kindergarten and throughout grades K-4 Driver 2. Pathways for success - creating a system where factors of race, gender, and socioeconomic status are not barriers to student educational and career success Driver 3. Teacher selectivity, quality, and growth - prepare and mentor high-performing classroom practitioners

World Class K-12 School Systems Success Drivers 4 Driver 4. Focus on learning – place the learner and learning at the center of the system, focusing on experiential, participatory, imaginative, and connected learning Driver 5. Education linked to economic development – produce graduates who have the right knowledge and skills to succeed Driver 6. Cultural expectation of value – create a system where students, parents, employers, and citizens are confident of the system to deliver

Executive Summary 5 1. Costs are rising faster than revenue and therefore we are continuing to work on strategies to balance the budget 2. Currently, the proposed state budget reduces City Schools’ funding by $35.6M 3. Without considering new priorities, the beginning budget gap was $108M 4. To date, we have identified $63.7M in budget solutions 5. We will align available resources that best allows the district to improve student outcomes

Agenda 6 Executive Summary Key Investments Budget Challenges How we are addressing the challenge Budget Timeline

Proposed Key Investments in Schools Standard of Care o Fine Arts Initiative: 45 Minutes of Art instruction for all students in grades 2 - 5; increased investment of ~$2.8M) o Middle School Athletics  Increased investment for intramural sports of ~650k  Establish basketball and track and field at 39 middle school programs 7

Proposed Key Investments in Schools Tiered Supports o Individualized approach to supporting schools with the greatest need Continue to support established academic programs o International Baccalaureate Programs (3 schools), Ingenuity Project, UMBC STEM program partnership, Additional instruction at Baltimore School for the Arts 8

9 Continue to offer Full Day Pre-k o 217 pre-k classrooms with the capacity to serve 4,991 students (max of 23 students per classroom) Increased ESOL services o 15% increase in ESOL students o $2M increased investment in school based staff Proposed Key Investments in Schools

Increase CTE allocation to launch new Advanced Manufacturing and Computer Science pathways o Advanced Manufacturing program began at Carver HS in SY o Computer Science/Code.Org pathway began in SY at Digital Harbor, Coppin Academy and Poly; will expand to Reginald F. Lewis and REACH in SY Proposed Key Investments in Schools

Multiple Pathways to Graduation o Differentiated supports and programming to meet the needs of individual students and increase opportunities for re-engagement and crisis transition $5M investment in technology to engage our students in current methods of learning Provide interim foundation support for small schools o $2.2M distributed to 19 schools with an average base enrollment of 212 students 11 Proposed Key Investments in Schools

Agenda 12 Executive Summary Key Investments Budget Challenges How we are addressing the challenge Budget Timeline

13 FY15 CITY SCHOOLS’ BUDGET BY COST OBJECT

14 CITY SCHOOLS’ MAJOR COST ELEMENTS CHANGE OVER THREE YEARS $32M increase in salaries & wages $31M increase in fringe benefits

15 FY16 Budget Development Snapshot As of March 6, 2015

16 CITY SCHOOLS’ FY16 BUDGET CHALLENGE

New Investment Priorities 17

Agenda 18 Executive Summary Key Investments Budget Challenges How we are addressing the challenge Budget Timeline

Our challenge: how do we invest in our students in light of budget pressures? 19 Blended model of solutions 1. Prioritized spending 2. Improved efficiencies in processes 3. Cost analysis of major cost drivers 4. Analysis of use of contracts 5. Staff adjustments

FY16 Budget Solutions 20

FY17 Cost Reduction Initiatives Reduce health care and benefit costs 2. Determine best model for providing student transportation 3. Implement an early retirement incentive 4. Accelerate school closures 5. Leverage best practices to ensure revenues balance expenses

Agenda 22 Executive Summary Key Investments Budget Challenges How we are addressing the challenge Budget Timeline

Timeline 23 March 11: Student Dialogue Baltimore Design School 5:30 pm March 12: Public Forum Mergenthaler 5:30 pm March 14: Public Forum Carver High School 10:00 am April 28: Board Vote

Comments or Questions? 24 Donald Kennedy, Chief Financial Officer Ryan Hemminger, Director – Budget

Board of School Commissioners Shanaysha Sauls, Chair David Stone, Vice-Chair Lisa Akchin Cheryl Casciani Linda Chinnia Marnell Cooper Tina Hike-Hubbard Martha James-Hassan Peter Kannam Eddie Hawkins Jr., Student Commissioner Senior Management Team Gregory Thornton, Chief Executive Officer Naomi Gubernick, Chief Of Staff Theresa Jones, Interim Achievement and Accountability Officer Linda Chen, Chief Academic Officer Lisa Grillo, Human Capital Officer Donald Kennedy, Chief Financial Officer Keith Scroggins, Operations Officer Kenneth Thompson, Chief Technology Officer Tammy Turner, Chief Legal Counsel 25