1. Guilford County Schools
Budget Update
Board of Education Retreat
September 24, 2011
Presented by
Sharon Ozment, CFO

2. 2011-12 BUDGET 2011-12 Budget Resolution = $659,554,304
Funding sources:
State ($370.6M)
Local ($183.0M)
Federal ($45.1M)
Capital Outlay ($4.0M)
Enterprise Funds:
Child Nutrition ($31.4M)
ACES (After School Care Enrichment Services) ($6.4M)
Special Revenue ($19.0M) 2

3. BUDGET 3

4. BUDGET 4

5. BUDGET 5

6. BUDGET REDUCTIONS/REDIRECTIONS
How we designate operating budget between schools and
administrative support services provided to schools
Obviously there are many ways one might go about this task
We opt to use a conservative approach based on the Uniform
Chart of Accounts (COA) established by NC Department of
Public Instruction (NCDPI)
The COA classifies expenditures into the following 5 purposes:
5000 = Instructional Services
Includes the costs of salaries and benefits for teachers, instructional assistants, instructional leadership and support staff, as well as contracted instructional services, instructional supplies, materials, and equipment, professional development, and any other cost related to direct instruction of students. 6

7. BUDGET REDUCTIONS/REDIRECTIONS
COA purpose codes (continued):
6000 = System-Wide Support Services
These services provide administrative, technical, personal, and logistical support to facilitate, sustain, and enhance instruction such as:
Curriculum/instruction development services
Student services (i.e., media, guidance, health/safety)
Technology/information management services
Operational support:
Telecommunications
Printing/copying
Utilities
Custodial services
Transportation
Facilities planning, acquisition and development
Maintenance
Financial and human resources services
Student testing
Planning, research and program evaluation
Board of Education
Senior leadership (i.e. Superintendent, Cabinet) 7

8. BUDGET REDUCTIONS/REDIRECTIONS
COA purpose codes (continued):
7000 = Ancillary Services
Community/nutrition services
8000 = Non-Programmed Charges
Unbudgeted funds
Indirect costs
Transfers to charter schools
9000 = Capital Outlay
Expenditures for acquiring fixed assets, including land or
existing buildings, improvements of grounds, initial
equipment, additional equipment, and replacement of
equipment .
We designate expenditures coded to a 5000 series purpose
code as schools and all other expenditures as being
administrative support services provided to schools with one
exception, custodians (6540 purpose) are included in schools. 8

9. BUDGET 9

10. BUDGET REDUCTIONS/REDIRECTIONS
= $21.9M
Losses in State funding = $20.7M
Increase in employer’s hosp ins rate = $569K
= $4,157/Full-Time Equivalent (FTE)
= $4,527/FTE
Increase in employer’s retirement rate = $585K
= 8.14%
= 8.75% 10

11. BUDGET REDUCTIONS/REDIRECTIONS
= $17.7M (in addition to reductions/redirections)
Losses in State funding = $10.4M
Increase in employer’s hosp ins rate = $1.5M
= $4,527/FTE
= $4,929/FTE
Increase in employer’s retirement rate = $682K
= 8.75%
= 10.51%
Strategic plan implementation/magnet revisioning = $892K
Increase in sustaining operations costs = $475K
Established a $3.7M reserve for operational expenses
Hold for possible add’l 1% state reversion in January 2011 or
Bank for budget 11

12. BUDGET REDUCTIONS/REDIRECTIONS
= $24.3M (in addition to and reductions/redirections)
Losses in State funding = $10.6M
Increase in employer’s hosp ins rate = $3,225
= $4,929/FTE
= $4,931/FTE
Increase in employer’s retirement rate = $2.7M
= 10.51%
= 13.12%
Increase in sustaining operations costs = $4.0M
Established a $10.7M reserve for operational expenses
$3.7M of the $10.7M is from reserve
Hold for possible state reversions and/or
Bank for budget 12

13. BUDGET REDUCTIONS/REDIRECTIONS
(continued):
Identified $35.6M in potential reductions/redirections
Used $17.4M to address:
Losses in State funding
Increases in employer’s hosp ins & retirement rates
Increases in sustaining operations costs
Gave $4.7M back to schools:
+$3M in Weighted Student Formula (WSF) funds
(allocated WSF 75% in versus 69% in )
+$1.7M from teacher allotment/class size adjustment
(did not increase class size by 0.25 students in grades K-12)
Reserved $10.7M for operational expenses
Removed $2.9M salary reduction from consideration
(-2 days pay for all GCS employees earning >=$35K) 13

14. LOCAL FUNDS 14

15. STATE FUNDS 15

16. 2012-13 BUDGET DEVELOPMENT PHILOSOPHY
Maintain approach used in three previous fiscal years:
Use Board of Education’s Mission, Core Values and Strategic Plan –
Achieving Educational Excellence – to guide budget development
process
Reflect current and projected economic conditions and plan for
various potential funding scenarios
Fund strategic plan initiatives through budget reductions and/or
redirections or by seeking outside funding
Limit request for additional funds from County Commissioners
to sustaining operations cost increases not covered by other
significant reductions or redirections
Limit impact of budget reductions on the employment of existing
personnel 16

17. STATE BUDGET OUTLOOK
Estimated impact to GCS based on FY12-FY13 biennium budget:
($13.270M) one-time EduJobs funds used in
($7.422M) projected losses in State funding for
+$0.915K increase in transportation costs for +5 instructional days
+$1.038M increase in employer’s hosp ins rate
= $4,931/FTE
= $5,192/FTE
+$0.421K increase in employer’s retirement rate
= 13.12%
= 14.31%
=($23.066M) subtotal
+$10.657M reserve for operational expenses
=($12.409M) Estimated impact to GCS
[$12.409M excludes Pre-K; GCS to fund Pre-K program with $3.7M NC Pre-K (formerly More at Four) $ and $2.7M one-time Title I $; GCS to revisit funding for ] 17

18. CAPITAL OUTLAY FUNDS 18

19. Questions, Answers and Next Steps
BUDGET DEVELOPMENT
Questions,
Answers and
Next Steps 19