Superintendent’s Proposed

Budget

For the Rochester City School District

2011-2012
Every Child is a Work of Art. Create a
Copyright © 2008 Ascendant Strategy Management Group – Page 1
 The Fiscal Environment

• The Perfect Storm

2009-10
• The Perfect Storm Continues
2010-11
• The Perfect Storm Part III
2011-12
Less revenue PLUS higher expenses = continued structural deficit
2
March 29, 2011 3
Challenges Faced by Districts Across
the Nation

• Salaries – Unions have locked-in salary increases

• Benefits – Highest growth areas: health care and pensions
• Transportation – Cost of fuel continues to increase;
State-mandated schedule for replacement of buses
• Facility maintenance – Aging buildings require more
maintenance
• Other rising costs – State & Federal mandates
• Decrease in Funding Sources (Federal stimulus, State budget
gap, fewer grant dollars, Local sources unsure)

4
 Districts Take Dramatic Steps to
Balance Budgets
Changes Examples
Additional • Reduce school support, including security
Central and after-school programs (Washington,
Reductions D.C.)
• Outsource food services management
(Washington, D.C., Kansas City exploring)
• Reduce custodians (Portland, OR)

Collective • Furloughs (Calif., Georgia, Hawaii, Florida)

Bargaining • Pay freezes (Fairfax County, VA, Nashville)
• Salary reductions (Miami Dade, Los Angeles,
New Mexico)

Transportation • Reduce services (San Francisco, Lansing, MI)

/ • Yonkers eliminated all transportation
Student (Yonkers, NY)
Assignment
5
Districts Take Dramatic Steps to Balance
Budgets
Changes Examples

Program • Increase class sizes (San Francisco, Fairfax

Changes County, VA, Montgomery County, MD)
• Reduce summer school (San Francisco)
• Losing all elementary art and music
(Syracuse, Yonkers, NY)
• Eliminating Extended Day (Buffalo, NY)

School • Syracuse, NY (2 announced, 2012)

Closings • Washington, D.C. (23 in summer 2008, 3 in
summer 2009)
• Kansas City, MO (28 schools, 2010)

6
 Budget Gaps Exist Statewide

Source: Conference of Big 5 School Districts As of February 28, 2011

7
New York State Budget
Context 8
Governor’s Proposed Budget
Reduces Funding
• Educational Aid decreased by
$1.5B or 7.44%
- Rochester share of decrease: $4M

• Foundation Aid frozen at 2008–09 level

(may extend to 2016-17)
- Rochester aid frozen at: $351M
Based on Governor’s proposed budget on February 8, 2011

9
 “Big Three” Staffing
Comparison

2010 - 2011
Syracuse Buffalo
Enrollment 20,000 33,500
All Staff 4,000 5,179
TeachingStaff 2,200 3,433

10
RCSD 2011-12 Budget
Analysis 11
Projected Gap: $80
Million

12
Revenue & Resources
Decline

13
Costs Continue to
Increase

14
 Cost of Employee Benefits
Increases
TRS/ERS rates 11.9% to 16.3% +
$10.9M

Insurance increase 9.7% to 11.65%

+$7.5M

2010-11 NYS Retirement Incentive +

$5.8M

Miscellaneous Benefits +
$2.0M
(e.g. disability insurance, workers comp, unemployment)
Sources: Office of the State Comptroller & State Insurance Commission
15
TOTAL: +
RCSD Enrollment Continues To
Decline
Elementary School
20,000

19,500

19,000

18,500
2004-05Actual,
18,000 17,489 2008-09Actual,
17,500 17,271

17,000 2010-11
lm
e
tn
o
E
r

17,2
16,500

16,000
16
15,500
 RCSD Enrollment Continues To
Decline
SecondarySchool
17,000

16,500
2004-05Actual, 15,566
16,000 2007-08Actual, 15,587
15,500

15,000

14,500

14,000
lm
e
t n
ro
E

2010-11 A
13,500 14,000

13,000
17
RCSD Footprint Increases
while Enrollment Declines

• Since 1998, K-12 enrollment has

declined by over 6,000 students.

• Over the same period, District

footprint has grown by approximately
500,000 sq. ft.

18
The Problem: Misalignment of Scarce
Resources
• Schools and students with the greatest
challenges do not receive more dollars.
• Some schools receive extra funds that may be
unplanned and not strategic.
• Schools are under-enrolled compared to
projections and receive a funding windfall.
• Schools do not have flexibility over resources
(time, people and money) to support student
achievement.
• Budget process is not transparent or
predictable, resulting in inequitable budgets.
The Solution: Ensure strategically aligned, equitable,
transparent, and flexible funding across schools
adjusted for student need. 19
2011-2012 Projected Revenue
as of February 8, 2011

Revenue Summary - All Funds

$677,673,533
State Aid
$431,928,087
63.7%

20
RCSD Increasingly Reliant on State
Aid

2011-12 Budget anticipates constant MOE from the City of Rochester.

21
2011-2012 Projected Expenditures

22
 2011-12 Expenditures Target
Schools
Direct Impact to Students
•Individual School Operations
•Academic Support
•Special Education
•English Language Learners
•Youth Development & Family
Services
•Central Office Driven Programs
•School Safety, Food Service,
Transportation
14
Indirect Support to Students
•Administration 86 %
Indire
•Accountability
•Human Capital Initiatives
% ct
Stude
Direct
•Legal Impact nt
•Communication to Suppo
•Board of Education Studen rt
ts
Where does the funding go?
• $678 M 2011-12 Proposed Budget
• - $30 MCharter Student Expense
• - $ 26 M Other non K-12 (OACES, Pre-
K)
• $622 M RCSD Student Budget
• $525 M Direct Impact to Schools
- $146 M ESF Allocation – Controlled by
Principals
- $379 M School-based Support
• 29, 2011
March
$ 97 M Indirect Student Support 24
Why Not Use Reserve Funds to Balance
Budget?
Consider a Household Budget:
INCOMEEXPENSES SAVINGS

Januar $3,000 $3,800 $1,000

y - $ 800

Difference: $ 800 Balance: $ 200

$2,800 $3,900 $ 200

Februa
ry Difference: $ 1,100
Balance:CAN’T
COVER!
25
 Fund Balance Declines
2008-09 2009-10 2010-11
Projected

Designated $42.3M $58.3M

$33.7M
Fund Balance

Undesignated $17.9M $19.1M

$12.7M
Fund Balance
Undesignated Fund Balance:
Less than Bi-weekly Payroll of $14.8M
 Closing Our Projected Gap
Reduction in force ($62 M)

Elimination of programs ($2 M)

Reduction of programs($16 M)

Fund Balance (Not Used)

Total Reduction ($80 M)

27
 RCSD Strategic Plan
The RCSD budget must support and advance our core values and align
with our Strategic Plan. 28
 RCSD Strategy Map
Every child is a work of art. Create a masterpiece.
Stakeholders Achievement

Every student is
Student

post-secondary
Increase mastery of ready Close achievement
curriculum gap

Rochester City School District…

“Has prepared me “Cares about my “Values and
for college and child’s success and supports my “Is an asset to the
career” safety” contribution to community”
student success”
Students Parents Staff Community

Right School For Every
Child
Build a learning
environment that
Internal Processes
The Rochester Curriculum
Focus on college and
career readiness
Great Teachers and
DevelopLeaders
and support
diverse and highly
effective school leaders

supports student success

Create an innovative
portfolio of high-quality
choices for families
Support the whole child
through a systems
approach to school
culture and climate
Operational
Excellence
Ensure academic rigor
for every student
Differentiate student
support to meet the
needs of every student
Develop and support a
diverse set of highly
committed and effective
teachers
Create a culture in
which we hold ourselves
accountable for student
success
Recruit and retain talent

Ensure transparency Become a Strategy- Best in class Use data to inform

and equity in Focused standards of decisions and
resource distribution Organization efficiency and actions
customer service

Copyright © 2010 Ascendant Strategy Management Group – Page 29

Equitable Student Funding Accomplishes
Three Goals:
Autonomy: Puts
resources in the hands of
those closest to the
students.
Equity: Builds equity into
resource allocation
objectively.
Transparency: Allows
all resources to be
tracked and monitored in
a clear way.
30
 First Year ESF
Accomplishments
• Autonomy: Principals managed 70% of their
school budgets for 2012
• Up from 6% in the current year

• Equity: Reduced variation in school funding

• Transparency: Budget book itemizes all

sources of funds and proposed expenditures

31
Building Principals’ Capacity for
Jan.-June 2010 ESF
Strategic Resourcing: Use of Time, People and
Money (ERS)
June 2010
Autonomous Schools visit Baltimore schools
Principal Meetings
Sept. 2010: Data-Driven Decision Making
Oct. 2010: Components of ESF
Nov. 2010: Strategic Plan and ESF Alignment
Dec. 2010: ESF Scenarios
Feb. 2011: Equalization of Students and Funds
 
Jan. 2011
Rochester Leadership Academy:
Leveraging School-Based Planning Teams
 
Feb.-March 2011
Schools Chiefs, Network Teams, Principals: 32
Work on individual budgets
 ESF Allocation Strategy
• ESF Weights
– Base (all students) $3,682
– Special Education (School controlled) $5,856
– English Language Learners (Beginner K-8) $2,396
– English Language Learners (Beginner 9-12) $3,594
– English Language Learners (Intermediate) $2,396
– English Language Learners (Advanced) $1,198

• Locked Funds: Centrally allocated resources (e.g. District controlled

Special Education, Building Substitutes, PBS, Young Mothers)

• Grants/Special Funds: Title I and other grants

• Curriculum Index: (e.g. Arts at SOTA, CTE, IB)

33
 School #8
FISCAL YEAR 2011-12 Equitable Student Funding (ESF) Allocation
Budget
Students** Weight Allocation
Base Allocation 624.0
Profile
$3,682 $ 2,297,568
ELL-Beginner (K-8) 9.0 $2,396 $ 21,564
Overall
ELL-Beginner (9-12) - $3,594 $ -
Reductio
ELL-Intermediate 7.3 $2,396 $ 17,491
n of 6%
ELL-Advanced 9.0 $1,198 $ 10,782
SWD-Resource Room 4.0 $5,856 $ 23,424
SWD-Consultant Teacher - $5,856 $ -
PROPOSED BUDGET ALLOCATIONS by ACCO
SWD-Integrated Special Class 2011-12 FUNDING
- $5,856 $ -
SWD-Self-Contained 12:1 Class 4.0 $5,856 $ 23,424
Total ESF Allocation Allocation Percen
Major Expenditures $ 2,394,2532010-11
Equitable Student Funding Allocation $ 2,394,253 69.7%
0200: Title IIA - Tchr & Prin Tr/Rec 1,628 0.0%
Salary Compensation 3,478,920
0206: Title I - Kindergarten Other Compensation
85,667 2.5% 104,647
Fixed Obligation/Variability 1,050
0268: Title I - AIS Services 2,579 0.1%
Cash Capital Outlays 16,412
0513: The Primary Project 19,414 0.6%
Facilities and Related 48,875
1323: School Redesign 21,598
Technology 0.6% -
1416: Primary Project 6,175 0.2%
Other Variable Expenses 6,175
1501: Cntrl Alloc-Specialized Servcs Total 15.5%
532,626 $ 3,656,079
1502: Cntrl Alloc-Principals 112,360 3.3%
Greater Equity: Special Ed, ELL

35
 School Funding Equity: 2010-11
$25,000

$20,000

$15,000

$10,000

$5,000
March 29, 2011 36
 School Funding Equity: 2011-12
$25,000

$20,000

$15,000

$10,000

$5,000
March 29, 2011 37
State Decisions Impact
Future
• Will we have Contract for Excellence?
Will it be funded?
• State Aid – Decreases Expected
• Mandate Relief – Will it happen?
• Will funding change for transportation
and building aid?
• Will additional costs be passed from
other State agencies mid-year?

38
Long-Term Fiscal Issues Remain
Unresolved
• Probable continued decline of future
funding from State and Federal sources
• Rising education related costs higher
than inflation
• Double digit increases in employee
benefits and the rising costs of state
retirement fund
• Unfunded State and Federal mandates
• Need to right-size the district (e.g.
facility footprint) 39
 Budget Questionnaire Seeks Public
Input
www.rcsdk12.org
STRONGLY DISAGREE NEUTRAL AGREE STRONGLY
DISAGREE AGREE

Reduce work week and

pay of staff

Furlough of one week for staff

Eliminate additional pay

at all levels

Change pay period to

once a month

Eliminate mailing of paystubs

40
Upcoming Budget Dates
March 29Superintendent Presents Proposed
Budget to School Board
April 5 1st Public Budget Hearing
April 7 Finance Committee Meeting of the
Whole
April 12 2nd Public Budget Hearing
April 14 Finance Committee Meeting of the
Whole
April 28 Board Business Meeting: Budget
Adoption
June 14 City Public Budget Hearing
June 21 City Budget Adoption 41