1. 1 2012-2013 Superintendent’s Budget Presentation for Providence School Board March 26, 2012

2. FY2011-2012 Budget Projection 2

3. 3 Budget Drivers Student Achievement –Class size, curriculum development, professional development, classroom materials, extracurricular activities, innovations schools, common planning time, standards, and assessments Available Funding from State and City Changes to School Enrollment Labor Contract Obligations –Salaries, Benefits, Class Size Employee Retirement Contributions –State –Local Vendor Contract Obligations –Transportation –Custodial and maintenance –Outside tuitions

4. 4 Local Budget Comparison FY 2012 to FY 2013 Providence School Department Fiscal Year 2012-2013 Local Budget Revenue/Expenditure Projection BudgetProjectionChange Revenues2011-20122012-2013 State Aid$177,121,396 $0 Restore Federal Job $8,683,552 Funding Formula Year 27,682,555 Categorical Changes228,566 Supplemental Jobs $ FY 12(128,298) Group Home Updates(90,000) Non Public Transportation (112,426) SUBTOTAL177,121,396193,385,34516,263,949 City Aid124,896,611 0 Medicaid4,250,000 0 Indirect Cost1,700,0001,500,000(200,000) Miscellaneous585,000 0 SUBTOTAL131,431,611131,231,611(200,000) TOTAL REVENUE308,553,007324,616,95616,063,949 Expenditures Total Expenditure308,553,007330,821,02422,268,017 BUDGET GAP$6,204,068

5. Budget Expenditure Variances 5 SalariesDelay in Hiring Add Back / Onetime Salary Reductions$3,109,500 Loss of Federal Jobs Funds1,350,000 Title I Stimulus $300,000 Literacy Surplus1,500,000 Furlough Days1,550,000 1033 Step Freeze325,000 1033 1% Wage Add Back350,000 PTU Longevity690,500 Steps860,000 New Positions1,180,000 Crossing Guards 665,000 Displaced Teachers FY 12-13 Est. 25 FTE's1,800,000 Misc81,172 13,161,172 Benefits Dental4% Projected Increase and Additional Staff265,327 Medical3% Projected Increase and Additional Staff929,231 FICASalary Items1,006,830 Retiree Medical4% Projected Increase262,349 City Retirement11.19% Increase to Rate773,054 Workers CompensationBased on FY 11-12 Projections200,000 Workers Compensation MedBased on FY 11-12 Projections100,000 Laborer’s Pension10% Increase April 2013190,000 3,726,791

6. Budget Expenditure Variances (Continued) 6 Other Technical ServiceIT Service Contracts44,000 Non Technology Related RepairsBuilding Generator Conversion50,000 TransportationBudget Increased by 16 Busses plus 2% Contract Increase1,370,672 Tuition to Other School Districts$1,100 per Student Increase for Met & Davies659,499 TuitionBased on FY 11-12 Projection700,000 Tuition to Charter Schools$584 per Student Increase378,640 Computer HardwarePhase I of Elementary School Computer Upgrades800,000 Computer HardwarePhase I of Electronic White Board Installation700,000 Custodial Service3% Contractual Increase501,000 Natural GasNatural Gas (Heating)200,000 Miscellaneous Changes(23,757) 5,380,054 Expenditure Increases$22,268,017

7. 7 Budget Unknowns Final State Aid Allocation to the District Final City Appropriation to the District Final Federal Entitlements

8. 8 FY2013 Budget Overview The Superintendent’s FY2012-13 proposed budget is $330,821,024 The FY2013 Budget is $22,268,017 or 7.22% higher than FY2012 Budget increases are driven by: »Labor agreements »Vendor agreements »State regulations and laws »Loss of Stimulus Funding »Loss of Federal Jobs Bill

9. Budget Revenue Assumptions State Aid will be calculated without the accelerated funding formula –Governor’s FY2013 Proposed Budget calls for an accelerated funding formula which results in an additional $3.7 million increase for Providence The City appropriation to schools will remain at the FY2012 amount –City funded 40.47% of FY2012 budget. Level funding of the FY2013 proposed revenue budget is 38.48% Federal Entitlements will be level funded 9

10. Eliminating a $6.2 million budget gap Achieved by: –Approval of Governor's Revenue Proposal –Staffing Reductions –New Initiatives Budget Expenditure Assumptions 10

11. Budget Expenditure Assumptions (Continued) 11

12. 12 FY 2013 Expenditures Proposed Expenditures$330,821,024

13. 13 FY 2013 Revenues Projected Revenues $324,616,956

14. 14 Budget Schedule (Anticipated) March 26Budget Submitted to School Board April 27Budget Submitted to Mayor May 1 Budget Submitted to Council JuneCouncil Budget Hearings June-JulyFinal State Aid Determined July Council Adopts City Budget July-AugustSchool Board Approval July-AugustCouncil Approves Ordinances

15. Questions ? 15