Preliminary Budget Reduction Plan DRAFT 1

Preliminary Budget Reduction Plan DRAFT 2 Preliminary Budget Reduction Plan Presented by Michael Hinojosa Superintendent of Schools Alan King Chief Financial Officer Date Created:

General Fund Budget by Class 3 Description Amended Adopted Percent Change Payroll Costs 1,013,057,5101,031,808, % Professional & Contracted Services 147,343,075148,514, % Supplies & Materials 36,717,90841,506, % Other Operating Costs 18,937,46118,117, % Debt Service Expense 5,706,9365,794, % Capital Outlay – Land/Building/Equipment 6,134,7424,921, % Other Uses 752,000724, % 1,228,649,6331,251,386, % Preliminary Budget Reduction Plan DRAFT

General Fund Budget by Class 4 Total: $1,251,386,750 Preliminary Budget Reduction Plan DRAFT

Preliminary Budget Reduction Plan DRAFT General Fund Budget by Function 5 FunctionDescription General Operating Fund 00Non-Operating Expenses 724,321 11Instruction 738,842,393 12Instructional Resources & Media Services 23,871,329 13Curriculum Development & Instructional Staff Development 10,374,179 21Instructional Leadership 26,256,910 23School Leadership 74,586,094 31Guidance Counseling & Evaluation Services 49,073,898 32Social Work Services 2, 736,069 33Health Services 17,226,327 34Student Transportation 24,440,072 36Extracurricular Activities 13,088,655 41General Administration 46,766,030 51Facilities Maintenance & Operations 151,042,326 52Security & Monitoring Services 20,330,541 53Data Processing Services 34,358,869 61Community Services 3,016,161 71Debt services 5,794,249 95Payments to Juvenile Justice AE Program 890,000 97Payments to Tax Increment Fund 4,000,067 99Other Intergovernmental Charges 3,968,260 1,251,386,750

General Fund Budget by Function 6 Total: $1,251,386,750 Preliminary Budget Reduction Plan DRAFT

Preliminary Budget Reduction Plan DRAFT Summary Definitions of Function Codes  10 - Instruction and Instructional-Related Services o 11- Instruction - interaction between teachers and students. o 12- Instructional Resources and Media Services establishing and maintaining libraries. o 13 - Curriculum Development and Instructional Staff Development- aid instruction staff in planning, developing and evaluating the process of providing learning experiences for students. This function also includes in-service training and other staff development. 7

Preliminary Budget Reduction Plan DRAFT Summary Definitions of Function Codes (cont’d)  20 - Instructional and School Leadership o 21- Instruction Leadership-managing, directing, supervising and providing leadership for staff who provide general and specific instruction services. o 23- School Leadership-direct and manage a campus. 8

Preliminary Budget Reduction Plan DRAFT Summary Definitions of Function Codes (cont’d)  30 - Student Support Services o 31- Guidance, Counseling and Evaluation Services-assessing and testing students’ abilities, aptitudes and interests; counseling student with respect to career and educational opportunities and helping them establish realistic goals. o 32- Social Work Services-Investigating and diagnosing student social needs, interpreting those needs for other staff members and promoting modification of the circumstances surrounding the individual student related to his or her social needs. o 33- Health Services-providing physical health services to students. o 34- Student (Pupil) Transportation-transporting students to and from school. o 35- Food Services-food service operation, including the cost of food, labor, preparation, transportation and storage of food to provide students and staff. o 36- Extracurricular Activities-school-sponsored activities outside of the school. 9

Preliminary Budget Reduction Plan DRAFT Summary Definitions of Function Codes (cont’d)  40 - Administrative Support Services o 41- General Administration-managing or governing the school district as an overall entity.  50 - Support Services – Non-Student Based o 51- Facilities Maintenance and Operations-keep the facilities and grounds open, clean, comfortable and in effective working condition and state of repair, and insured. o 52- Security and Monitoring Services-keep student and staff surroundings safe, whether in transit to or from school, on a campus or participating in school-sponsored events at another location. o 53- Data Processing Services-hardware/software maintenance for PC networks and mainframe computers that include student and general administrative software and service multiple functions, webmaster, technology network, data, system security, information technology developer, programmer, tester, or systems analyst. 10

Preliminary Budget Reduction Plan DRAFT Summary Definitions of Function Codes (cont’d)  60 - Ancillary Services o 61- Community Services-activities or purposes other than regular public education and adult basic education relating to the whole community or some segment of the community.  70 - Debt Service o 71- Debt Service-payment of debt principal and interest.  80 - Capital Outlay o 81- Facilities Acquisition and Construction-acquiring, equipping, and/or making additions to real property and sites. 11

Preliminary Budget Reduction Plan DRAFT Summary Definitions of Function Codes (cont’d)  90 - Intergovernmental Charges o 95- Payments to Juvenile Justice Alternative Education Programs (JJAEP)-provides financial resources for JJAEP under Chapter 37, Texas Education Code. o 97- Payment to Tax Increment Fund (TIF)-provides financial resources paid into a tax increment fund under Chapter 311, Tax Code. o 99- Other Intergovernmental Charges-amounts paid to the county appraisal district for costs related to the appraisal of property. 12

Preliminary Budget Reduction Plan DRAFT General Fund Budget 13 Budget DollarsPercentage Fixed Costs Total Payroll $ 1,031,808, % Total Utilities 56,922,7664.5% Appraisal District 3,968,2600.3% Audit Fees 1,250,0000.1% Property Insurance 3,953,5440.3% Tax Collections 479,5000.0% Transportation Contract with Dallas County Schools 26,123,8062.1% *Total Budget to DCS, $22,595,114 (basic contract) Total Fixed Costs 1,124,506, % Non - Fixed Costs 126,879, % Total Budget $ 1,251,386,750

Preliminary Budget Reduction Plan DRAFT General Fund Budget 14

Preliminary Budget Reduction Plan DRAFT General Fund Budget – Other Budgeted Items 15 Budget Dollars Non - Fixed Costs $ 126,000,000 Classroom 26,000,000 Co-Curricular 9,000,000 Library 4,000,000 Principal's Office 1,000,000 Maintenance 21,000,000 65,000,000 Data Processing 31,000,000 $ 34,000,000

Preliminary Budget Reduction Plan DRAFT 16 Budget Outlook  “Worst case” Scenario:  losses on the order of 20%  $253 Million  “Better case” scenario:  losses on the order of 10%  $168 Million Date Created: “Either Scenario”,  Dallas can expect to have personnel cuts  Dallas will be confronted with a new reality

Preliminary Budget Reduction Plan DRAFT 17

Preliminary Budget Reduction Plan DRAFT Five Comparison Districts Reduction Impact DistrictAmount (millions)  Austin$181  El Paso$ 46  Fort Worth$ 82  Houston $348  San Antonio$ 38 18

Preliminary Budget Reduction Plan DRAFT 19 Areas off the Table  Best Teachers  Maintain Fine Arts Date Created:

Preliminary Budget Reduction Plan DRAFT 20 Approximate Proposed Reductions Category  Campus Employees  Non Campus Employees  Contracted Services  Supplies  Employee Travel  Workday Reduction Reduction $ 161,000,000 $ 48,000,000 $ 10,000,000 $ 1,400,000 $ 1,200,000 $ 3,000,000 Date Created:

Preliminary Budget Reduction Plan DRAFT 21 Approximate Proposed Reductions (cont.) Categories  Stipends  Bilingual  Math  Science  Sp Ed  Supplies  Substitutes  Signing Bonus Total Reductions Reduction $ 7,200,000 $ 1,920,000 $ 1,040,000 $ 400,000 $ 2,800,000 $ 2,300,000 $ 600,000 $ 240,860,000 Date Created:

Preliminary Budget Reduction Plan DRAFT 22Date Created: Comparison of Changes to Staffing Formulas

Preliminary Budget Reduction Plan DRAFT 23Date Created: Comparison of Changes to Staffing Formulas

Preliminary Budget Reduction Plan DRAFT 24 Areas Not Authorized by Legislature  10 Furlough Days $ 44,000,000  10% Salary Reductions $ 85,000,000  25:1 Elementary $ 21,660,000 Date Created:

Preliminary Budget Reduction Plan DRAFT 25 Q&A Date Created: : Preliminary Budget Reduction Plan

DRAFT 26

Preliminary Budget Reduction Plan DRAFT 27