1. Minneapolis Public Schools Finance Office
FY17 BUDGET BASICS
Minneapolis Public Schools
Finance Office

2. DRAFT Timeline for FY 16-17 Budget
January – Preliminary budget work completed
Early February – Allocations are sent out
February 15- March 4 – Budget Tie-Out Process
March 7 – April 1 – Budget Tie-out files approved
April – May – Final budget work completed
June 14 – Budget presented to Board
June 28 – Board votes on Budget adoption

3. Current Budget Timeline
January
Budget planning and priorities set
February
Allocations Released
March
Community Engagement and feedback
Apr-May
Board reviews budget
Final Revisions
June
BOE Votes new Budget

4. How Does MPS Budget? Budget development begins
Enrollment Projections
Revenue Projections
Expenditure Projections
Budget development begins
with assumptions and projections

5. Where does the money come from?
Referendum (Voter approved property tax)
Levies (property tax)
Student Formulas (state funds)
Federal Programs (Title I and Individuals with Disabilities Education Act for Special Education)
Other funding (grants such as Cargill STEM and McKnight)

6. Categorical Funds MPS uses
Compensatory
$52.1M
Achievement & Integration
$15.6M
Special Education
$62M
English Learners
$5.5M
Gifted & Talented
$0.5M
Extended Learning
$9.4M
State & Local Grants
$19.5M
Federal Programs
$40.5M

7. General Fund Revenue

8. Revenue Projections
General Education Revenue is received based on enrollment projections of adjusted pupil units
Adjusted Pupil Units – The number of students served adjusted for the students open enrolled in other districts. Students K-6 count as a 1.0 and students 7-12 count as 1.2
General Education Formula
current rate $6,067 per Adjusted Pupil Unit. These dollars are intended for the operation of the school district and are not designated by the State for a specific purpose. This is not the amount that is given to schools in their allocations.
Compensatory Aid
Formula given based on students receiving Free/Reduced lunch

9. Revenue Projections
Other Categorical funds are received that must be used for specific purposes
Special Education
Integration Aid
Title I
English Learners
Career and Technical Education Aid
Safe Schools levy
Referendum dollars

10. FY 16-17 Revenue Projections
Local Taxes (Levy) $115.3M
Other Revenue (3rd Party billing, rental of $ 17.8M
school facilities, earning investment)
State Aid (Gen Ed, Literacy, Contract Alt) $329.3M
State Support (Spec Ed, State grants) $ 70.0M
Federal grants $ 40.5M
Federal Indirect $ M
Sale of Bonds (Cycle of Replacement) $ M
Total General Fund Revenue $577.9M

11. Title I Budget
The Elementary and Secondary Education Act (ESEA), currently authorized as the Every Student Succeeds Act (ESSA) of 2015, is federal legislation that promotes student achievement through school and district reform. ESSA requires each state to develop and implement a system for holding all districts and schools accountable for the education of students and has strict guidelines on how the dollars can be used.
Budget was $21,530,846 which included carryforward of $1.8M
Budget is projected to be approximately $17.9 million

12. Title I Budget Reductions are occurring because:
Poverty level in Minneapolis is decreasing while the State’s is increasing
MPS
State of MN
MDE has indicated they are holding back a larger amount for administration of the program.
07-08
08-09
09-10
10-11
11-12
12-13
13-14
14-15
61.7%
61.8%
63.5%
64.4%
64.8%
65.3%
64.6%
64.0%
08-09
09-10
10-11
11-12
12-13
35.6%
36.7%
37.3%
38.3%

13. Expenditure Projections
In order to achieve a “Structurally Balanced” budget, expenditures cannot be more than the revenue projection.
MPS is committed to developing a structurally balanced budget each year.

14. Several Priorities for General Fund
FY 16
FY 17
TBD
Office of Black Male Achievement $1.0M
Lower Class Size $6.5M
Prog Adjustment $14.0M
Time Adjustment $5.4M
Office of Black Male Achievement $
Lower Class Size $
Prog Adjustment $
Time Adjustment $

15. Priorities - Referendum Dollars
FY 16
FY 17
TBD
Class Size $51.9M
EL Classrooms $6.4M
EL Itinerant Staff $0.1M
Reading & Math Specialists $9.6M
Instr Coach for Contract Alt $0.1M
Science Centers $0.7M
Textbook Adoption $2.7M
Instructional Technology $2.5M
$74M
Class Size $
EL Classrooms $
EL Itinerant Staff $
Reading & Math Specialists $
Instr Coach for Contract Alt $
Science Centers $
Textbook Adoption $
Instructional Technology $
$77M

16. How Schools Get Allocations
Compensatory - based on State formula of Free/Reduced priced lunch.
English Learners - MPS uses a combination of State and Referendum dollars to allocate to schools based on where the English Learner sites are located.
Special Education – citywide programs (i.e. Autism or Emotional Behavior Disorders.
Integration – determined by plan approved by MN Department of Education
Class Size– allocated based on targeted class size.
Title I – allocated on a per pupil amount based on free/reduced priced meals K 01 02 03 04 05 06 07 08 09 10 11 12
Poverty < 65% 24 25 26 32 36
High Proverty F&R >65% 22 23 28
High Priority 18

17. School Allocations Example

18. School Allocations Example

19. School Allocations Example

20. School Allocation Example

21. Fund Balance
Fund Balance - is a “reserve” in the General Fund use for unexpected matters to help budget continue to be balanced.
The District fund balance policy is to maintain an unassigned reserve equal to 8% – 13% of expenses. Our current general fund unassigned fund balance is $49.4 million which is 8.6% of expenses.

22. QUESTIONS