Agenda - 04-28-2015 - 1 and 2 - Laserfiche WebLink

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Chapel Hill — Carrboro City Schools 2015 -16 Operating Budget Message The district has begun the 2015 -16 budget cycle in a more fiscally stable position than we were a year ago. We are thankful for the Board of Orange County Commissioners continued support of public education in Orange County. Because of their willingness to increase County revenues, the district was able to avoid a $2.2 million budget reduction for this school year. The continued reduction of State funding for public schools continues to be a major concern. At this time, we have the usual uncertainty about the State budget. A shortfall in State revenue has been projected for this year which could negatively impact State budget allocations for next year. We do not expect, at this time, that the State will impose any budget reductions prior to June 30. Last week we received the State projected student enrollment for 2015 -16 which is 150 students less than was projected for this year. With the lower than projected student enrollment for this year and the adjustment to the lower number for next year, we will receive a base budget adjustment from the State. Our Local revenues will also be affected by the lower enrollment projections. Over the past several years we have had a significant loss of state revenue. It is likely that we will continue to see these reductions, We know that Drivers Education has already been targeted to be cut next fiscal year and some teacher assistant funding is currently non - recurring. We anticipate losing a percentage of our E -Rate telecommunications reimbursements over the next few years until it is phased out. Virtual Charter Schools are expected to further erode State funding to public schools and we will have to share a portion of Local funds. The district has continued the usual budget development process for 2015 -16. We asked principals and administrators to identify budget needs to support the district's long range plan and focus on instructional excellence as well as other critical needs areas. Because of the generous support from the County Commissioners for this fiscal year, we realize that our budget request for next year must be tightly aligned with the State and Federal mandates, and the district Strategic Plan. The attached budget recommendation is a very conservative budget request. State mandates and funding needs to maintain current services represent the majority of the budget request. The expansion requests represent additional funding needed to accomplish Strategic Plan initiatives. We have identified and recommend that the Board accept a budget reduction of $230,476 at this time. Our requests and reductions are described in greater detail below. Local Revenues and Expenditure Changes and Recommendations The State has estimated that our enrollment will decrease by 150 students next year. At the current per pupil expenditure level, the projected decrease in revenue would be $536,650. An 1 -1