Buffalo Public Schools 2024-2025 Budget Process Update
The Buffalo Public Schools' 2024-2025 budget process update includes goals for the superintendent, current financial status, and strategies to address financial challenges. Learn about budget cuts, state aid proposals, and budget projection details.
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Buffalo Public Schools Buffalo Public Schools The The 2024 2024- -2025 Annual Budget Process 2025 Annual Budget Process Update #2 Update #2 Finance & Operations Committee Meeting Wednesday February 7, 2024 Dr. Tonja M. Williams Superintendent of Schools Jim Barnes Chief Financial Officer 1
3 Goals for the Superintendent 3 Goals for the Superintendent The Board has identified 3 Goals for the Superintendent by 6/2024. To support the achievement of the following Goals: 1. The percentage of BPS third grade economically disadvantaged students proficient in Reading as measured by the end of year (EOY) Dibels Assessment will increase from 33% in June 2023 to 39% by June 2024. 2. The percentage of BPS third grade economically disadvantaged students proficient in Math as measured by the EOY iReady Assessment will increase from 13.3% in June 2023 to 15.9% by June 2024. 3. The percentage of Unofficial 4-year graduation cohort students who complete state and district graduation requirements will remain consistent from 79.1% in June 2021 to 79.1% in June 2024. It will be necessary for the district to strategically prioritize all financial systems, practices, and human capital. 2
Introduction and Objectives for Tonight Introduction and Objectives for Tonight This is the second update provided on the 2024-2025 budget process. The official budget process just started last week. The 24-25 budget process has been completely transparent. The information shared tonight has been previously communicated, per the Superintendent to the Board, Cabinet, School Based Leadership, Department Heads and BCSA staff and externally to the State, External Auditors and the BFSA. All of us must approach the 24-25 Budget Process with a new mind set incorporating the economic realities of the ARP/ESSER financial cliff and lower enrollments. Our budget decisions must be data driven. The Objectives for tonight s presentation are: Review the current status of the 2024-2025 budget process and the time line for completion. This will include an update on our efforts to cut $90 million in costs related to the loss of ARP/ESSER funding. Review the Governor s 2024-2025 State Aid Budget Proposal. Review the Level 1 Budget projection. Project out the financial consequences if no action is taken to address our financial challenges. Discuss the options we have available, and our plan, to address the financial challenges.3
Current Status Current Status ARP/ESSER (DC24) Cuts: Non Staff Cuts - we have successfully cut approximately $42 million in non staff expenditures, including proposed reductions in after school and summer school programming costs, from the 24-25 budget. However, this leaves approximately $18 million that will be carried into the 24-25 General Fund budget at this point in the budget process. FTE s the approximately 300 FTE s and $30 million in costs funded through DC24 is in the process of being addressed. Our plan to avoid layoffs is a) a hiring freeze (except essential positions) b) cutting vacancies from the General and Grant Fund c) no unbudgeted requests in the SBB process (based upon enrollment decreases) and d) selectively filling retirements at the end of the year. Department Budgets: The Superintendent Kick Off Memo and budget packet was distributed last week. Outlined in the Superintendents Memo was an expectation that department non staff budgets should be flat with 23-24 (with the exception of those costs added from DC24 noted above). Training sessions are scheduled for February 7th and 14th. The due date for Level 2 budget entry is March 15th. SBB Process: The books were distributed to the schools last week. Based upon the decrease in enrollments, PK-8 classrooms were reduced by 34 (including 5 bilingual). This was a long overdue adjustment based upon decreased enrollments. After this classroom reduction the district average PreK-8 class size is approximately 21. No school has an average classroom size of over 25. The books are due back from the schools to OSL on March 11th. The SBB approval meetings are scheduled for the period March 19th March 27th. 4
Time Line Time Line the Budget Calendar the Budget Calendar DATE(S) 1/19/2024 ITEM GOV BUDGET PROPOSAL AND SCHOOL AID RUNS RELEASED LEVEL 1 BUDGET COMPLETED AND APPROVED. THIS IS BASELINE 2024- 25 BUDGET PROJECTION. INCLUDES GOV. PROPOSED REVENUES, ALL CURRENT APPROVED POSITIONS WITH STEP, LONGEVITY AND CONTRACT INCREASES, PROJECTED BENEFITS, CHARTER SCHOOL TUITION, DEBT SERVICE AND CY REVISED NON STAFF BUDGETS. THIS BASE LINE PROJECTION ALSO INCLUDES THE 314 ARP FUNDED POSITIONS AND NO CUT TO VACANCIES. IT IS A WORSE CASE SCENARIO. SUPER. KICK OFF MEMO AND BUDGET PROCESS PACKETS RELEASED ROLL TO LEVEL 2 - DEPARTMENT REVIEW OF STAFF AND DETAILED NON STAFF BUDGET ENTRY. SCHOOL BASED BUDGETS (SBB'S) AVAILABLE FOR SBMTS TO BUDGET TRAINING SESSIONS. WE ARE CURRENLTY MAKING ARRANGMENTS. WE ENVISION A 2 PART TRAINING PROCESS 1) GENERAL IN PERSON GROUP SESSIONS AND 2) IN PERSON 1 ON 1 TRAINING WITH YOUR BUDGET LIAISON. SBB SUBMITTED TO OSL. DEADLINE FOR LEVEL 2 DETAILED BUDGET ENTRY APPROVED BY CABINET. SBB APPROVAL MEETINGS. CABINET AND CFO MEETINGS ON LEVEL 2 BUDGET. FINAL STATE BUDGET RELEASED AND STATE AID TOTALS ADOPTED. ROLL TO LEVEL 3 - CFO & CABINET REVIEW/REVISIONS TO L2 SUBMISSIONS. LEVEL 3 REVENUE BUDGET UPDATED FOR FINAL STATE BUDGET. RECONCILE SBB AND MUNIS FTE'S. CALCULATE SUPER. HOLDBACK AND INPUT INTO MUNIS NYBE. ROLL TO LEVEL 4 - ALL FINAL DEFICIT CLOSING MEASURES. THE LEVEL 4 BUDGET IS THE SUPERINTENDENTS RECOMMENDATION TO THE BOARD. SUPERINTENDENTS REVIEW OF BUDGET AT CABINET SUBMISSION OF BALANCED BUDGET (IN DRAFT FORM) AND 4 YEAR PLAN TO CITY FOR INCLUSION IN CITY BUDGET. TENTATIVE DATE TO PRESENT THE BUDGET TO COMMON COUNCIL BOARD MEETING TO VOTE ON PROPOSED 24-25 LEVEL 4 BUDGET ROLL TO LEVEL 5 - ALLOCATIONS AND SBB RECONCILIATIONS ARE MADE AFTER BOARD APPROVAL AND BEFORE APPROVED BUDGET IS POSTED TO MUNIS ACCOUNTING SYSTEM. THIS IS THE ORIGINAL BUDGET POSTED IN MUNIS. 1/26/2024 1/26/2024 1/29/2024 1/29/2024 TBD - 2/5/24- 2/15/24 3/11/2024 3/15/2024 3/19/24 - 3/27/24 TBD 3/25/24 - 3/28/24 TBD 3/28/24 3/29/2024 3/29/24 - 4/12/24 4/26/2024 TBD 5/1/2024 5/6/2024 5/15/2024 5/20/2024 - 5/31/24 5
The 24 The 24- -25 Governor s Budget Proposal 25 Governor s Budget Proposal 24-25 STATE AID REVENUES EXECUTIVE BUDGET 1/17/24 707,050,520 8,259,493 5,981,261 26,628,122 57,943,083 101,128,443 23-24 STATE AID REVENUES 1-17-2024 CHANGE IN STATE AID 24-25 VS 23-24 22-23 ACTUAL STATE AID 2023-2024 BUDGET DESCRIPTION % Change Foundation Aid. Charter School Transitional Aid PUBLIC HIGH COST (STAC) - EXCESS COST PRIVATE HIGH COST (STAC) TRANSPORTATION AID BUILDING AID SPECIAL SERVICES AID COMPRISED OF COMPUTER ADMIN AID ($1,941,968), CAREER ED AID ($6,429,850) AND ACADEMIC IMPROVEMENT AID ($4,656,750) TEXTBOOK AID SOFTWARE AID HARDWARE & TECHNOLOGY AID LIBRARY MATERIALS AID Chapter One Advance Charter School - Supplemental Aid Bullet Aid - Health Services - 619,626,315 10,122,063 5,445,340 23,813,762 42,090,098 116,800,172 688,802,175 9,627,321 26,896,776 51,525,051 110,949,217 688,224,835 9,573,656 3,443,833 23,993,137 46,757,580 110,801,549 18,825,685 (1,314,163) 2,537,428 2,634,985 11,185,503 (9,673,106) 2.74% -13.73% 73.68% 10.98% 23.92% -8.73% 967,883 13,671,053 2,494,498 637,250 885,343 264,215 1,800,000 10,021,000 1,450,000 12,883,816 2,450,461 1,800,000 10,000,000 1,200,000 13,028,568 2,446,675 627,243 845,095 261,700 1,800,000 10,322,000 1,200,000 13,268,555 2,456,053 623,138 837,550 259,988 1,800,000 10,000,000 1,200,000 24,110,335 239,987 9,378 (4,105) (7,545) (1,712) 1.84% 0.38% -0.65% -0.89% -0.65% 0.00% -3.12% 0.00% 628,591 844,910 262,263 - (322,000) - - TOTAL STATE AID 849,121,109 918,838,464 913,325,871 937,436,206 2.64% 6
The Level 1 Budget and 4 Year Plan The Level 1 Budget and 4 Year Plan - - Worst Case Scenario Worst Case Scenario We have known about the ARP/ESSER financial cliff for 3 years. Failure to decrease expenditures and reduce the total budgeted FTE count will lead to unsustainable budget deficits and a dramatic decrease in Fund Balance within 24 months. IF WE DON T CUT $90 MILLION ARP/ESSER Total Revenue Total expenditures Surplus (Deficit) Total General Fund balance Level 1 Budget - 24-25 1,079.40 1,180.60 22-23 (ACTUAL) 23-24 (proj Q224) 25-26 26-27 1,009.10 958.20 50.90 375.50 1,065.00 1,078.50 (13.50) 362.00 1,093.00 1,223.00 (130.00) 130.80 1,106.00 1,234.40 (128.40) 2.40 (101.20) 260.80 CAPITAL TRANSFERS NOT IN 4 YEAR PLAN (DAVINCI/BUFF STATE, COMMISSARY, FOSDICK FIELD - LAND, ALL HIGH EXTRA) - (1.50) (10.00) (15.00) - REVISED PROJECTED FUND BALANCE 375.50 360.50 249.30 104.30 (24.10) We keep showing this projection to emphasize what happens if we do nothing. We have options available and a specific plan developed to avoid this from occurring. All of us must approach the 24-25 Budget Process with a new mind set incorporating the economic realities and lower enrollments impacting all school districts. 7
Level 1 Budget Level 1 Budget Worst Case Scenario Worst Case Scenario The Level 1 budget projection is a critical benchmark during the Annual Budget Process. It shows the financial impact of taking no action toward the ARP/ESSER financial cliff (in regards to the DC24 FTE s) or our enrollment decreases. The Level 1 budget projection shows a deficit of $101 million and a reduction in General Fund Reserves from $360 million to $249 million. It would jeopardize our ability to fund the previously approved Capital Projects. It is a worse case scenario based upon: The Governor s proposed State Aid. All current General Fund budgeted staff with contract, step and longevity increases. All current DC24 funded staff with contract, step and longevity increases. No cuts in vacancies, no projection for retirement savings and the approval of all unbudgeted requests during the SBB process. Increased benefits based upon the increased cost of services and the added 314 FTE s from DC24. A $15 million increase in Charter Tuitions based upon a new formula for calculating SPED tuitions. Our responsibility during the budget process is to reduce the Level 1 deficit. We have a plan outlined below. 8
Total Enrollment and FTE Counts Total Enrollment and FTE Counts 9
Total Actual FTE Count Increases Total Actual FTE Count Increases 10
The Plan to Reduce the Level 1 Deficit and Avoid Layoffs The Plan to Reduce the Level 1 Deficit and Avoid Layoffs We have to cut approximately 300 BUDGETED FTE s from the Level 1 budget. Our plan to do this and avoid layoffs is outlined below. A hiring freeze (except for essential positions and only with the Superintendent s approval) was implemented four weeks ago for the current year. Job Postings are currently being revised and/or eliminated. Large scale recruitment events will not occur. Cut Vacancies. The Superintendent has directed Finance and HR to analyze current vacancies in the General and Grant Funds to consider cutting them from the budgets to enable the ARP/ESSER funded staff (when possible) to replace these positions in the 24-25 budget. The 2024-25 SBB process began last week. It will be data driven. 24-25 seat projections call for 34 less classrooms in PreK-8. There will not be a funding column for ARP/ESSER in the SBB Books. No unbudgeted requests will be approved at this time. The affordability of the BTF contract was based upon a financial projection that included cutting 160 vacant teacher positions and reducing teacher OT/Extra Activity expenditures by 50%. Over the past three years retirements have averaged over 300 staff members for all bargaining units. Last year there were 303 retirements. We must utilize these retirements (not hire replacements) to mitigate any potential layoffs. 11
Summary Remarks Summary Remarks All of us must approach the 24-25 Budget Process with a new mind set incorporating the economic realities of the ARP/ESSER financial cliff and lower enrollments impacting all school districts. Our budget decisions must be data driven. The Level 1 Budget shows a deficit of $101.5 million prior to cutting vacant positions or projecting a lower staff count from not hiring for retirements. There is much work to do during the Budget Process to lower the Level 1 deficit to acceptable levels. From a financial planning and cash flow perspective there will no longer be substantial vacancy savings to rely upon for budgetary savings. We have to manage better with the resources provided within the budget. There is no room for unbudgeted requests in the coming year. We have been preparing for this time, and though it will not be without challenges, together we will work smart and collectively to ensure that the improvements that we have seen in our student outcomes over the last several years will continue. 12
Buffalo Board of Education Buffalo Board of Education Dr. Tonja M. Williams, Superintendent of Schools Hon. Sharon M. Belton-Cottman, President and Ferry District Board Member Hon. Dr. Kathy Evans - Brown, Vice-President of Executive Affairs and East District Board Member Hon. Lawrence L. Scott, Vice-President of Student Achievement and Board Member-at-Large Hon. Terrance L. Heard, Board Member-at-Large Hon. Cindi M. McEachon, North District Board Member Hon. Jennifer L. Mecozzi, West District Board Member Hon. Dr. Ann R. Rivera, Board Member-at-Large Hon. Theresa Schuta, Park District Board Member Hon. Paulette Woods, Central District Board Member Ms. Daijha Mims, Student Representative 13
