Budget Priorities Berkeley County Schools FY Budget Administrative Recommendations Dr. Michael Turner, Interim Superintendent Brantley Thomas, Chief Financial Officer Board Meeting June 9, 2015

Prime Considerations in Developing Priorities Our Teacher Salary Schedule was the lowest among Charleston, Dorchester 2 and Dorchester 4 school districts by a substantial margin. This is a serious threat to our competitiveness in attracting and maintaining high quality teachers. The expected student enrollment growth, declining special revenues, and opening of Nexton Elementary School require that we substantially increase our teacher and support personnel numbers just to maintain the program quality that we have achieved historically. We need some additional teachers to address class size overages that occurred during in selected schools.

BUDGET PRIORITY RECOMMENDATIONS  15/16 Step$5,000,000  Option One Salary Schedule$3,000,000  FTE Per Formula$2,574,340  Part 2 FTEs Per Formula $1,277,805  4 School Psychologist $400,000  4 Registered Nurses (RN) $240,000  5 FTE Special Needs Teachers $325,000  3 FTE ESOL Teachers $195,000  1 Additional SRO (GCHS)$50,000  Nexton Elementary (School Opening)$1,000,000  Phillip Simmons Elem and Middle Admin (Start up)$122,544  Bus Driver Raise ($1.00)$460,000  Total$14,644,689

BUDGET PRIORITIES THAT DID NOT MAKE IT  Increase School Supplies $300,000  6 Lab Assistants Elementary $165,000 .5 FTE Adult Education $35,000  3 FTE Maintenance $ 125,000  1 FTE Social Worker $65,000  3 FTE Interpreters $ 101,250  Routing Coordinator /Head Start Supervisor$50,000  1 FTE Diesel Mechanic $50,000  1 FTE Administrative Assistant Leadership Development HR $50,000  1 FTE Teacher Evaluator $70,000  Total $1,011,250

FY Act 388 Analysis Estimated (Pre –Act 388 ) Assessed Value of 4 % Property Operating Mills $283,781, Estimated Operating Revenue $40,552,381 Actual: Tier I Tier II Tier III 7,891,272 1,860,174 26,283,420 Total Current Estimated$36,034,866 Difference in Actual vs Pre Act 388 (Lost due to Act 388) $(4,517,515)

Three Year Look Back for Catch Up Millage "Section (A)(2) says: “ There may be added to the operating millage increase allowed pursuant to item (1) of this subsection any such increase, allowed but not previously imposed, for the three property tax years preceding the year to which the current limit applies.” This is the 3 year look- back; you get to add unused cap-space from the last 3 years (2012, 2013 and 2014) to 2015 (FY ’s tax year)."

CATCH UP MILLAGE FORMULA

Revised Budget FY Proposed Changes (With 17 Mills) Proposed Budget FY Revenues (Including 17 Mills for Operations) $223,579,353 14,644,689 *$238,224,042 Expenditures $223,579,353 14,644,689$238,224,042 Expenditures Over Revenues -0- BERKELEY COUNTY SCHOOLS PROPOSED GENERAL FUND BUDGET FY Millage Ranges 5 Mills = $2,400, Mills = $4,800, Mills = $7,200,000 Includes Revenues from 17 Mills= $8,544,000

Option One ($3,000,000 infused into the Teacher Salary Schedule) to support Teacher Recruitment and Retention. Even with infusing the above amount we would still be behind Charleston by $490 for a new teacher coming in at zero years with a Bachelors degree as of this year’s scale. Charleston is not looking at any increase in their scale other than the individual step. However, we would still need to consider these options in future budgets to maintain competiveness. Dorchester School District Two and Four are considering a 2 % Cost of Living and Step. The state has not included a cost of living increase on the teacher salary scale for at least 10 years. Any increase in mills does not impact the owner occupied home due to Act 388. It will impact cars, boats, planes, and rental property. Discussion Points

Dr. Robert T Carey, Director, Regional Economic Analysis Laboratory, from the Strom Thurmond Institute stated that in forecasting the financial impact of Volvo Stated: “As you’ll see, including the recovery of unused mills definitely helps the bottom line in all of the models. “ The priorities as recommended by the administration are funded by the increase in the state revenue and maximizing the millage increase through the catch up provision and applicable increase allowed for FY both as allowed by legislative action in 2007 through Act 388. Possibility of new state revenue and depending on its placement could help us with the general fund. Hopefully, we will know by the Public Hearing. Discussion Points – Continued

Comparative Analysis on per student Spending

Continue to monitor state education web site for additional state information. Continue to monitor local assessments for additional local revenue. Public Hearing June 23, Notice in paper June 7, 2015 Cash Flow for FY for Tax Anticipation Note- June 9, 2015 The administration recommends first reading of the FY Budget as presented. Next Steps