1. Presentation to the State Board of Education Thursday, April 10, 2014

2. MNPS Budget Growth Millions $779.0 million* $622.8 million Average Annual Growth = 3.8% * Projected for planning purposes

3. Enrollment Growth 84,543 students84,543 students* 75,029 students Average Annual Growth = 2.0% * Projected for planning purposes

4. Budget Growth by Category: FY09-10 to FY14-15* * Projected for planning purposes $81.0 million (51%) $78.7 million (49%)

5. Employee Compensation Growth: FY09-10 to FY14-15* $78.7 million (49%) * Projected for planning purposes Certificated salary increases $42.3 million Support salary increases $13.4 million Salary savings on replacements ($9.0 million) Retirement incentive savings ($3.5 million) Other (insurance, pension, FICA) $35.5 million TOTAL $78.7 million

6. Required Additions Growth: FY09-10 to FY14-15* $81.0 million (51%) * Projected for planning purposes Charter schools cash outlays $48.4 million Additional teaching positions $12.1 million Inflationary increases $13.8 million Other (debt service fund transfer, etc) $6.7 million TOTAL $81.0 million

7. Millions Average Annual Growth = 54.3% $53.0 million* $4.6 million Charter School Cash Outlays * Projected for planning purposes

8. Millions Analysis: FY14-15 Operating Budget Employee Compensation Required Additions Other * Assumes 2% revenue growth, for planning purposes Charter growth Potential Shortfall = $17.6 million

9.  Consolidating/closing under-utilized buildings  Raising class sizes in middle and high schools  Reducing the certificated workforce  Eliminating enhanced-options schools High-Leverage Options

12. Fiscally & Operationally Sustainable Growth  In November, the Metro Nashville Board of Public Education passed RS2013-4 “establishing priorities for deploying charter schools” during 2014  Strategic priorities include: 1.Conversion of existing low-performing schools 2.New charters in exceedingly overcrowded cluster tiers FACT: The Glencliff and Overton elementary tiers are on track to hit 121% and 125% capacity, respectively, during the fall 2017-18 school year.

13. Common-Sense Approach  MNPS charter review process utilizes three “lenses” 1.Quality. Applications must meet NACSA quality standards. 2.Strategic priorities. Applications should address the school district’s stated needs. 3.Fiscal impact. Pursuant to TCA 49-13-108(b), applications should not be "contrary to the best interests of the pupils, school district or community.”

14. Questions?