Board Budget Committee Meeting – April 10, 2017

Review of Legislative Action

Director of Business Services, Ryan Kelly, provided a brief update on State of Wyoming School Finance Recalibration Efforts.

  • April 3, 2017, the State of Wyoming Legislature Select Committee on School Finance Recalibration began recalibration efforts.
  • Discussed their charge, their goals, and brainstormed potential strategies to approach recalibration efforts
  • Invited local districts to submit proposals for modifying the current funding model
  • All meetings are public- encouraged to attend if interested
  • Easy to provide public input- Agenda items are given opportunity to provide public input
  • It is anticipated that the consultant could be selected by early June.
  • Recalibration meeting notices, minutes, and materials can be found at the following link: http://legisweb.state.wy.us/LegislatorSummary/InterimComm.aspx?strCommitteeID=SSR&Year=2015
  • Will share Recalibration schedule of meetings as soon as it is known

 

Natrona County School District Budget Update

  • Received state Funding paper on Friday, March 31st
  • Sharing the prime objectives- 7 major priorities- continue to share these with all stakeholders
  • These can be found on the website and/or Budget Committee on Board Docs
  • Monitor and participate in the Wyoming Legislative process
  • Recalibration of the current funding model
  • Existing revenue and/or raising taxes- Joint Interim Revenue committee has this task
  • Education- looking for efficiencies in delivery
  • Capital Construction and Major Maintenance
  • Refine revenue projections- WDE Budget version of WY K-12 Funding model
  • Develop FY 18 Staffing Plan- update to be provided later in meeting
  • Develop FY 18 Non-Personnel
  • Staffing allocations for Certified, Classified and Administrative positions that achieve the planned reduction in FTE’s
  • Prepare for the reassignment and hiring processes
  • Continue to examine all vacant positions – reduce position through attrition and reassignment
  • Comprehensive budget study – develop and implement budget reduction strategies
  • Inform staff and provide avenues for input and participation
  • District Communications regarding NCSD budget development and WY legislative activities
  • Committee members communications
  • School, Department and Division leaders’ communications
  • Encourage school and division budget committees to discuss plans for operating on less staff and non-personnel budgets

 

Board Budget Committee: Budget Development Timeline of Major Steps (Apr-Jul 17)

  • April 10, 2017 Board Budget Committee Meeting:
  1. Review and direct staff regarding the draft of the summary conceptual budget plan for FY 18, FY 19 & FY 20
  2. Enrollment and staffing updates
  • May 1 & 2, 2017 Board Budget Committee Meeting:
  1. Presentation of:

Wyoming K-12 State Funding Model

NCSD Budget Policy and approach to budget development

Final draft of the summary conceptual budget plan for FY 18, FY19 & FY 20

2. Discussion and direction to staff regarding the draft of the summary conceptual budget plan for FY 18, FY19 & FY 20

3. Enrollment and staffing updates

  • June 29, 2017 Board Budget Committee Meeting:
  1. Review of the final draft of the FY 2018 NCSD budget
  2. Update on the conceptual budget plan for FY 2019 and FY 2020
  • July 19, 2017 Board Budget Hearing and Adoption

 

Summary Conceptual Budget Plan for FY18, FY19 and FY20

The 2017 Wyoming Legislature has begun to address the potential deficits.

Includes the following five strategies:

  1. reductions in state funding provided to school districts,
  2. raising spending caps to allow more existing revenues to flow to K-12 state funding
  3. use of state savings (rainy day funds)
  4. redirection of existing state revenue to K-12 state funding
  5. additional tax revenue dedicated to K-12 state funding through new sources
  • The WY Legislature over the past two sessions has initiated action on the first three strategies
  • All strategies will be worked on during the 2017 interim by standing committees and the Select Committee for School Finance Recalibration.
  • Results of their interim work will be considered in the 2018 budget session.
  • NCSD’s enrollment is beginning to decline after nine years of growth
  • Current projections show a $2 million dollar reduction in funding over the next three years due to declining student enrollment
  • Projected at $12 million dollars over the next three years

 

Three Year Conceptual Budget Summary

  • The plan continues the approach, started in 2015, of developing annual budgets that position the District to remain ahead of the projected reductions in funding.
  • Based on a $12 million dollar reduction in funding over the next three years, due to the anticipated state reduction in funding ($10 million) and loss of funding due to declining enrollment ($2 million)
  • Enrollment is reduced by 1.5% annually in recognition of the current trend of declining enrollment.
  • Projections include the recent legislative actions that reduce funding:

a. Reclaibrating non-personnel model elements to the consultant’s recommended amounts (FY18)

b. Elimination of the external cost adjustment provide for in the 2016 WY budget (FY 18)

c. Reduction in the instructional facilitators funding by 10% for FY18, and by 50% in FY19

d. Reduction in student transportation in FY 19 by funding at the average of the reimbursements received in FY15, FY16 and FY17.

  • Revenue is projected using the WDE preliminary funding worksheet reflecting the following reductions in revenue:

a. FY 18: $3.5 million

b. FY 19: $4.0 million

c. FY 20: $4.5 million

  • The personnel budgets reflect a reduction of 110 positions over the next three years through attrition and reassignment, representing an 8% reduction. The position reductions include those related to declining enrollment.
  • The personnel budgets include the cost of maintaining salary schedules (experience and education) and 1% for “topped” employees.
  • The Non-personnel budgets reflect a 10% reduction over the next three years.
  • All budgets are based on historical trends and the impact of legislative action .
  • The practice of increasing the budget reserve by $500,000 through the use of one-time carryover is included in the plan. This maintains a reserve in excess of 5%.

 

Potential Changes and Supplemental Strategies

  • Three year conceptual budget plan and budget reduction components may need to be adjusted for:
  1. Changes in student enrollment.
  2. Changes in the availability of vacant positions.
  3. Changes in legislative action that increases or decreases the amount of reductions.
  4. Changes in legislative action that changes the timing of reductions.
  5. Results of internal NCSD budget studies.
  • The following supplemental strategies will be used to successfully address changes:
  1. 1. Use of district one-time dollars to create a gradual budgetary reduction over time in the event of a state reduction too large to accommodate in a manner outlined above.
  2. Use of Board Priority and Board Reserve funds to achieve necessary reductions in the time frame required.
  3. An enhanced one-time early notification program to generate additional vacancies.

 

Enrollment and Staffing Updates:

  • Staffing window is about ready to open up
  • Certified staffing timeline has been communicated
  • Thursday morning- Leadership meeting- staffing updates on April 20th– Principals will have identified the “who” is up for reassignment
  • Volunteerism is encouraged
  • Reassignment process has worked well in previous years, optimistic we can continue forward
  • Staffing plans for FY 18 include the projected enrollment by school by grade, the overall enrollment trend and the position reductions contained in the conceptual budget plan shown above.
  • The emphasis remains on position reductions through attrition and reassignment.
  • These plans will be deployed at the school, department, division and district levels beginning April 13th.
  • 21st of April through May 25th– Window open- Verba Echols and HR team will continue to work diligently with leaders
 
 

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