winston-salem/forsyth county schools 2012-13 budget preview

WINSTON-SALEM/FORSYTH COUNTY SCHOOLS

2012-13 BUDGET PREVIEW

First, the Good News!

Projected local budget surplus in 2011-12, which, except for items listed on subsequent slides, should continue to be available in 2012-13

$9.0 million Savings from remainder of local assistant

positions due to be eliminated June 30$0.75 million

Funding Losses

Federal Jobs Bill Funds$10.5 million

Race-to-the-Top Funds Used to Pay Equity+ Bonuses in 2011-12, but not Available in 2012-13

$1.8 million Carryover exhausted in Federal Title II CSR

$0.4 million

Other Expected Funding Needs

“Temporary” Salary Savings in 2011-12$175,000

Already Enacted Increase in Matching Ret.$1.5 million

Already Enacted Increase in Discretionary Reduction $2.0 million

Anticipated Increase in Matching Health Ins.$325,000

Other Potential Funding Needs

Projected Increases in Utility Rates Potential for Matching Legislated Pay

Increases Potential Losses of Other Federal Funds

Pent-up Needs Due to Budget Cuts

Activity Bus Replacements Computer Replacements Textbook Adoptions Staff Development Other replacements/enhancements of

technology and other tools

Other Potential Sources of Funds

Use Some Portion of Fund Balance That is Accumulated in 2011-12

Modify and/or Find Another Funding Source for Equity+ Bonuses

County Funding (Implementation of Funding Formula?)

Bottom Line

Sources of Funds $9,750,000 Funding Needs -$16,700,000

Potential Funding Shortfall -$6,950,000

Does Not Take Into Account Pent-up Funding Needs or Potential Funding Sources

First Steps

Determine How Much Fund Balance to Use Determine the Impact of Equity+ Bonuses Continue to Monitor the Potential for

Additional State Cuts Continue to Work Toward Implementation of

a County Funding Formula

Discuss Ideas for Permanent Cuts

Permanent Pay Cuts?– Central Office/12-month Classified– Supplements (a small percentage of all

supplements; just masters’; combination)– Special Supplements– Hourly

Discuss Ideas for Permanent Cuts

Eliminate Central Office Positions? Continue Converting to Contract Cleaning? “Trial Employment” Temporary Staffing? New Instructional Delivery Model for AIG? Teacher Assistant/PRT Allotment Formula? Reduce Need for Substitutes?

Summary

Picture is Somewhat Brighter Than Anticipated

Use of Fund Balance can Help at Least Delay Some of the Pain

Still Hope to Avoid RIFs Still Hope to Avoid Class Size Increases Still Lots of Unknowns

Next Steps

Seek Input from the Board Empower a Study Group Begin Discussions of Ideas and Alternatives Continue to Monitor and Update State and

County Funding Projections