1. 2015-16 Budget Planning Update New Hanover County Schools Board Work Session December 16, 2014

2. Budget Topics County Budget Process State Education Funding Trends Legislative Priorities School Budget Planning Process Budget Planning & Resources

3. County Appropriations Operating Budget: − CY $67,904,309 − 5% Increase for each of the past two years − Current Per Pupil funding of $2,535 Goal of $2,662 (2008/09 funding rate) 5% increase based on current enrollment to meet that goal Capital Appropriation: − CY $2,750,000 (10% Increase over PY) − Two-Year Priority Needs summary will be submitted

4. State Planning Issues: Raises are not likely due to revenue forecast, although included in State Board’s Budget Request 2% Planning Reductions have been requested from State Agencies Need to prevent additional state reductions by communicating impact of budget changes in recent years

5. State Revenue Issues: 2013-14 Actual: − Tax Revenue $500 Million below projections − Individual Income Tax Collections below projections − Corporate and Sales Tax collections above projections FY 2014-15 First-Quarter Revenue: − $62 Million below projection − 8.3% below prior year General Fund Appropriations - $21,082 Million − 80% for Education and Health and Human Services (Medicaid) Source: NC Center for Public Policy

6. State Public School Funding Changes since 2008-09 Funding increased by $60 million Enrollment increased by 43,739 Salary and benefit costs increased by $1.3 billion The reduction in classroom funding exceeds $1 billion.

7. % Change Classroom Teachers-3.5% Teacher Assistants-22.9% Textbooks-78.1% Instructional Supplies-51.9% Instructional Support-9.8% Staff Development, Literacy Coaches, School Technology, and Mentor Teachers -100% Central Office Administration-22% Non-Instructional Support-8.8% Assistant Principals-18.9% State Funding Formulas Comparison 2008-09 to 2014-15:

8. State Public School Per Pupil Funding

9. Elimination of Growth from Continuation Budget: The State Budget Process now requires the State Board to request continuation increases due to student growth These represent funding requirements to sustain services at current levels State Estimates: − $70 Million per year for next two years − To support student growth of 18,000

10. Legislative Priorities for Consideration (See Summary Chart)

11. NHCS Budget Planning Consolidated Approach to Local Budget Planning: − Evaluate needs and develop priorities in alignment with school improvement planning Two Year Capital Outlay Plan as requested by County Manager Draft Budget Calendar (Handout)

12. Budget Planning Resources www.nhcs.net/finance/budget.htm − Budget Resources Annual Budget Books, Resolution, Allotment Formulas, & Program Assignments − Annual Expenditure Reports Program and Object Code Summaries State Expenditures by LEA − Budget Development Process Draft Budget Calendar Supplemental School Budget Request Capital Outlay Request Forms