1. 2009-2010 Superintendent’s Budget
Presentation for PPSD School Board
March 23, 2009

2. Budget Drivers Student Achievement Available Funding
Class size, curriculum development, professional development, classroom materials, extracurricular activities, smaller learning communities, common planning time, standards, and assessments
Available Funding
Enrollment Changes
Labor Contract Obligations
Salaries, Benefits, Class Size
Employee Retirement Contributions
State
Local
Service Contract Obligations
Transportation
Custodial and maintenance
Outside tuitions

3. Key Information Student Enrollment External Budget Review
2% overall decrease in student enrollment
-- Student population of 23,300
Nearly a 20% reduction since 2003
External Budget Review
Broad Foundation funded budget review by Alvarez and Marsal
Facility Changes
Re-opening of Nathan Bishop Middle School
Opening of the Providence Career and Technical Academy
Opening of the Athletic Complex
Closing of the Academy of Service

4. Unknowns Final State Aid Allocation
Federal Stimulus Funds, American Recovery and Reinvestment Act (ARRA)
Final City Appropriation
Final Federal Entitlements
Unsettled Labor Agreements
Final Health Insurance Cost

5. Overview All budget increases are non-discretionary
The Superintendent’s proposed budget is $325,075,600
An increase of $2,952,871*
All budget increases are non-discretionary
Driven by:
Labor agreements
Vendor agreements
State regulations and laws
Enrollment/Facilities
* Details on slide 7

6. Overview Includes a $13.9MM budget gap*
Includes level funding for City Aid
State Aid is as proposed in Governor’s Budget; $2.2MM reduction, elimination of Permanent School Fund (24/3 gambling revenue)
* Details on slide 7

7. Budget Increase * Reduction also reduced revenue
2010 net Exp. Increase ,452,254
Unadjusted 2010 Budget ,574,983
Adjustments
Reduction in State Retirement* ,028,579
Reduction in Debt Service* ,470,804
Adjusted 2010 Budget ,075,600
* Reduction also reduced revenue

8. Proposed State aid to Education
2009 Unrestricted aid $189,495,228
Less (Pension Reform) ,028,579*
Reduction in Aid ,537,231
Reduction in Group Home ,000
Subtotal $175,764,418
Plus Fed. Stabilization Funds ,537,542
2010 Unrestricted Aid $185,301,960
* Expenditure reduction as well

9. Historical Budget Changes

10. Revenue
Estimated Revenue $311,114,138

11. New Spending Requirements
Providence Career and Technical Academy ($450,000)
District wide Athletic Complex ($350,000)
Nathan Bishop Middle School ($500,000)

12. Increases (in millions)
$ %
Salaries
Medical Ins. (active & ret.)
Special Ed. Tuitions
Other Employee Benefits
Vendor Contracts
Total $ 11.3

13. Expenditures
Proposed Expenditures $325,075,600

14. Expenditures
Salaries $167,286,359
Benefits ,372,714
Services ,641,906
Supplies ,309,316
Equipment ,305
Projected Expenditures $325,075,600

15. Revenue (millions) Unrestricted State Aid $185.3 City Revenue 120.3
Medicaid
Other
Estimated Revenue $311.2

16. Notes Budget Gap must be eliminated prior to final approval.
Unclear how Federal Stimulus funding can be used to reduce the gap
City appropriation is limited by (S3050A) Tax Relief Law.

17. All Expenditures Are Under Continuous Review
Major Cost Centers
Staff
Out of District Tuitions
Transportation
Vendor Contracts
Health Care
Incorporate savings identified by Alvarez and Marsal into budget plan

18. Challenges to a balanced budget
The rate of increase in the district’s fixed costs has been greater than the overall budget growth causing budget cuts in the area of school reform and improvement.
98% of the PSD Budget is fixed Costs (Due to several years of continuous reductions)
PSD is limited in what can be eliminated from the budget due to legal requirements and contractual obligations (fixed costs).
City revenue growth is limited by S3050A
The only budget driver that is not a fixed cost is Student Achievement.

19. Next Steps April Budget Workshops April 28 Budget submitted to Mayor
May Budget submitted to Council
June Council Budget hearings
June-July Final State Aid
July Council Adopts City Budget
July-August School Board Approval
July August Council approves ordinances