Attachment #3-Summary Presentation

ATTACHMENT 3
FY2016 Budget Development:
Budget Assumptions & Staffing Formulas
Presentation to Board of Trustees
Nicole Conley, Chief Financial Officer
Michael Houser, Chief Human Capital Officer
December 1, 2014
AUSTIN
Independent School District

ATTACHMENT 3
2
Overview: Actions by the Board
• Approval of Budget Assumptions:
▫
Considered best practice in long-range budget
planning and forecasting to ensure that financial
assumptions are transparent and agreed upon by
governing officials
• Approval of Staffing Formula:
▫
Decisions on staffing allocations need to be finalized
earlier so that campuses can know what staffing will
be in place in order to build student course offerings
for the upcoming year
Austin Independent School District

ATTACHMENT 3
AUSTIN Independent School District
3
FY2016
Budget
Development:
Budget
Assumptions
Austin Independent School District

FY2016 Budget Assumptions Highlights
• The budget assumptions are used to develop the
revenue and expenditure estimates for the preliminary
budget
• Currently assumes SB1 revenue per WADA compressed
rate $5,835 for FY2015 and $5,710 for FY2016
▫ Future legislative action could change in FY2016 and
FY2017
• Assumes decrease in student enrollment. Demographer
projections will be finalized in January and reevaluated
• Assumes 5.56% increase in property taxes
▫
▫
ATTACHMENT 3
Statutorily bound to use certified appraisal amounts which are
typically conservative.
Projected values will change based on certified values
provided by the Chief Appraiser in April (preliminary) and
late July (final)
4
Austin Independent School District

FY2016 Budget Assumptions (continued)
• Assumes current tax rate will decrease to $1.202 unless otherwise
directed (M&O $1.079, I&S $0.123)
• Alternative scenarios can be presented separately if/as the Board
contemplates a possible Tax Ratification Election (TRE) in June
2015/2016 or November 2015/2016
Tax Rate FY2014 FY2015 FY2016
Total Tax Rate per $100 of Taxable
Value
$1.242 $1.222 $1.202
M&O Tax Rate (Operations) $1.079 $1.079 $1.079
I&S Tax Rate (Debt Service) $0.163 $0.143 $0.123
ATTACHMENT 3
5
• 99% collection rate based on three-year average
• Assumes current program for local and historic exemptions
▫
Estimates will be revised if the Board takes action to modify or eliminate the
historic exemption program based on the actions taken by the city
Austin Independent School District

ATTACHMENT 3
6
FY2016 Budget Assumptions (continued)
• Funding increases for mandatory services or
other identified strategic initiatives will be
presented separately
Austin Independent School District

ATTACHMENT 3
FY2016 Budget Assumptions:
Projected Additional Revenue from TRE
7
Scenario
Tax
Rate
Local
Revenue
Generated
(Above
Status
quo)
Net
Revenue
Retained
(Above
Status
quo)
Estimated
Average
Taxpayer
Impact
(Annual
Increase)
Estimated
Median
Taxpayer
Impact
(Annual
Increase
Four-cent increase 1.1190 $29.8M $13.3M $126 $102
Five-cent increase 1.1290 $37.3M $16.6M $157 $127
Six-cent increase 1.1390 $44.8M $20.0M $188 $153
Seven-cent increase 1.1490 $52.2M $23.3M $220 $178
Eight-cent increase 1.1590 $59.7M $26.6M $251 $204
Nine-cent increase
(maximum) 1.1700 $67.9M $30.5M $286 $232
*Based on certified values from TCAD. These numbers are subject to change when TCAD releases the preliminary values in May 2015
Austin Independent School District

ATTACHMENT 3
8
FY2016 Budget Assumptions: Compensation
• Assumes continuation of:
▫ one-time 3% salary adjustment authorized in
FY2013 (pensionable)-$14.5 million
▫ one-time 2% salary adjustment authorized in
FY2015 (pensionable) - $10.8 million, from:
• one-time 1.5% salary adjustment authorized in
FY2014,
• and the additional 0.5% salary adjustment
authorized in FY2015 (total of 2% pensionable)
Austin Independent School District

ATTACHMENT 3
AUSTIN Independent School District
9
FY2016
Budget
Development:
Staffing
Formulas
Austin Independent School District

ATTACHMENT 3
10
FY2016 Proposed Staffing Formulas
• A staffing/budget focus group and principals
met with Chief Human Capital Officer to
review staffing formulas
• Recommended changes:
▫
▫
▫
Provide additional relief for counselors at large
elementary schools
Anticipated staffing adjustment for full-time
Parent Support Specialists
Continue with all other allocations as
identified for SY2014-15
Austin Independent School District

ATTACHMENT 3
AUSTIN Independent School District
11
FY2016
Budget
Development:
Next Steps
Austin Independent School District

Continuous Budget Planning
ATTACHMENT 3
• Finalize analysis of “baseline” costs i.e., health,
premiums, insurance, energy rates, etc.
• Refine revenue estimates and assumptions
based on the most recent data
• Budget Review Team (BRT) will review options
to address budget deficit
• Consider possibility of Budget survey to be
distributed to stakeholders in early 2015
12
Austin Independent School District

Continuous Budget Planning (cont.)
ATTACHMENT 3
• Vet and review new budgetary increases and
potential reallocations and/or budget
reductions
• Assess all known “budget pressures” for
FY2016, including compensation options
• Refine multi-year financial plan and
assumptions and provide Board with continual
updates
13
Austin Independent School District