School District of Philadelphia Proposed Budget Fiscal Year 2009-10

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerSchool District of PhiladelphiaProposed BudgetFiscal Year 2009-10(July 1 2009 – June 30 2010)Budget Update for theSchool Reform CommissionMay 20, 2009

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerProposed FY2009-10 School District BudgetRevenues

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsSDP FY2009-10 Projected Sources of RevenuePAMichael J. Masch, Chief Business OfficerSchool District Revenue SourcesThe School District of Philadelphia projects it will receive $3,181 million inLocal, State and Federal Revenues in FY2009-10, an increase of 11.5% overFY2008-09, the current fiscal year.FederalRecurringFederalStimulusTotal: $3,181MOtherFY2008-09 FY2009-10 % of FY09-10Local Tax/City Grant $ 820 $ 810 25%Local Non-Tax $ 54 $ 59 2%PA $ 1,525 $ 1,646 52%Federal Recurring $ 366 $ 369 12%Federal Stimulus $ 209 7%Other $ 109 $ 88 3%LocalNon-TaxLocal Tax/City Grant

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerPROJECTED INCREASES (DECREASES) IN REVENUEFY2009-10 BUDGET COMPARED TO FY2008-09 ESTIMATEIf not for projected increases in Federal Stimulus funding going to PA and SDP,the School District would be projecting ZERO revenue growth in FY2009-10.Federal Stimulus - Direct to SDP1Title I Stimulus $81.22IDEA Special Education Stimulus $23.43Title II(D) Ed Tech Stimulus $2.04Stimulus Directly to SDP $106.6Federal Stimulus - Through Penna. (based on Governor's Proposed FY10 PA Bgt)5PA Basic Ed Subsidy (funded w Stimulus - SFSF) $120.66State Fiscal Stabilization Fund $102.07Requires PA General Assembly Approval $222.6Other Projected PA Revenue Changes (based on Governor's Proposed FY10 PA Bgt)8PA Charter School Reimbursement $13.89Other Projected PA Funding Changes ($14.0)10 Other Projected PA Funding Changes - Net ($0.2)Other Projected Revenue Changes11 Sale of Property and Other Financing Sources ($22.6)12 Local Tax/City Funding - Projected Changes ($9.6)13 Other Projected Grant Funding ($1.1)14 Local Non-Tax Funding - Projected Changes $4.615 Other Projected Federal Funding Changes $6.516 Other Projected Local/Federal Revenue Changes ($22.2)17Total Projected Increased Funding to SDP - FY2009-10 $306.818 Local Tax Revenue Shortfall Due to Recession FY09/FY10 ($116.0)

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerPROJECTED INCREASES (DECREASES) IN REVENUEFY2009-10 BUDGET COMPARED TO FY2008-09 ESTIMATEIf not for projected increases in Federal Stimulus funding going to PA and SDP,the School District would be projecting ZERO revenue growth in FY2009-10.$222.60$106.60Stimulus Directly toSDPEducation Stimulusto PA - Requires PAGeneral AssemblyApproval($0.20)Other Projected PAFunding Changes -Net($22.20)Other ProjectedLocal/FederalRevenue Changes

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerLocal Revenues FY1999-00 to FY 2009-10Local Tax Revenues grew by anaverage of 2.1% annuallyfrom FY1999-00 to FY2001-02.Local Tax Revenues grew by anaverage of 4.3% annually fromFY2001-02 to FY2008-09.Due to the recession, no growth isprojected in FY08-09 or FY09-10.$21$25$35$21$35$35$35$47$66$35 $35$63 $53 $58$37 $38$39$44$37$15$60$557 $573 $581$634$658$688$710 $719$778 $782 $772FY1999-00 FY2000-01 FY2001-02 FY2002-03 FY2003-04 FY2004-05 FY2005-06 FY2006-07 FY2007-08 FY2008-09 FY2009-10Local Tax City Grant Local Non Tax

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerState Revenues FY1999-00 to FY 2009-10Total State Revenues grew by anaverage of 4% annuallyfrom FY1999-00 to FY2001-02.$154$14From FY2001-02 until FY2009-10total State Revenues grew by anaverage of 8% annually.$37$43$236 $240 $253$37$322$36$343$82$372$107$392$135$405$148$423$153$485$571$642 $659 $674 $699 $716 $739 $754$816 $860 $888$1,005FY1999-00 FY2000-01 FY2001-02 FY2002-03 FY2003-04 FY2004-05 FY2005-06 FY2006-07 FY2007-08 FY2008-09 FY2009-10BES Other State Operating Total State Categorical

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerFederal Revenues FY1999-00 to FY 2009-10Total Federal Revenues have grown by 5.4% annually fromFY1999-00 to FY2009-10, not including Stimulus Funds.$209$218$242 $249$288$357 $362 $352$331 $329$366 $369FY1999-00 FY2000-01 FY2001-02 FY2002-03 FY2003-04 FY2004-05 FY2005-06 FY2006-07 FY2007-08 FY2008-09 FY2009-10Federal CategoricalFederal Stimulus

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerProposed FY2009-10 School District BudgetExpenditures

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsHow does the SDP spend itsmoney?The District’s Budget Supports SchoolsMichael J. Masch, Chief Business OfficerFY2009-10 Total ObligationsTotal:$3,186MDistrict OperatedSchools, $2,490AdministrativeSupport Operations,$216District Funded,Non-DistrictOperated Schools,$480

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerMajor SDP Expenditure IncreasesFY2009-10 over FY2008-091 Imagine 2014 Strategic Plan -Phase One - Recurring Costs2 Annualization of FY2008-09 Wage Increases/Automatic "Step" Increases in Employee Pay3 Employee Benefits - Projected 2009-10 Increases(Medical, dental, pharmacy, optical, pension, workers comp, socialsecurity, termination pay, wage continuation, etc.)$126.0$31.4$26.64 Temporary Borrowing to Maintain District Cashflow $22.65 Educational Technology - Additional Investments $14.46 Debt Service - Mandated FY2009-10 Increase $13.87 Charter Schools -Increase in Per Student Payments; Additional of 6 NewSchools, Planned Enrollment Increases at ExistingSchools (less: Closure of Two Non-Renewed Schools)8 Title I Stimulus - Mandated Set-Aside -Nonpublic Schools (11% of Title 1)9 Title I Stimulus - Mandated Set-Aside -School Improvement (10% of Title 1) -Tutoring, Transportation, Professional Development,etc.10 Specialized Services/Special Education -Projected 2009-10 Increases$10.5$8.9$8.1$6.511 Increased Funding Compared to FY2008-09 - ContinuingGrants12 Upgrade/Replacement - District HR System -Prior to Expiration of Licenses for Current System13 Upgrade/Replacement - District Finance System -Prior to Expiration of Licenses for Current System14 Students in Institutional Placement -Projected 2009-10 Increases$6.0$5.0$5.0$4.815 Utilities - Projected 2009-10 Increases $4.216 Title I Stimulus - Mandated Set-Aside -Professional Development - Enhanced Recruitment -Highly Qualified Teachers (5% of Title 1)17 Records Management - One Time Investment toUpgrade Student and Employee Records Systems18 Facilities Maintenance - One Time Investment to InstallWork Order and Preventive Maintenance Systems$4.1$3.0$3.019 Food Service Subsidy - Absorbtion of Projected Deficit $1.520 Procurement - One Time Investment to UpgradePurchasing and Contract Management System$1.521 Increased Resources for Federal Grants Compliance $1.422 Losses and Judgments - Projected Increase $0.7Total Major Expenditure Increases: $309M

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerProposed FY2009-10 School District BudgetWho Worksfor theSchool District?

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerWho works for the School District?The District has a workforce of approximately 24,000 employees. Over 11,000 are teachers (46%)and another approximately 1,900 (8%) provide support for teachers in the classroom.The proposedFY2009-10School Districtbudget calls forthe hiring ofadditionalteachers toreduce maximumclass sizes in allK-3 classroomsand additionalcounselors toreduce student:counselor ratiosand improvestudents’ ability toplan successfullyfor college andcareers.School District of Philadelphia FY10 WorkforceFull TimeEquivalent(FTE)Percent ofTotalWorkforceRank Position TypeTeachers, K-12 Regular Ed 9,147 38%Teachers, K-12 Special Ed 1,713 7%Teachers, Early Childhood 260 1%1 Sub-Total -- Teachers 11,121 46%2 Noontimes Aides 1,616 7%3 Supportive Services Assistants 1,287 5%4 Cleaners 1,068 4%5 Classroom Assistants 604 3%6 Counselors & Related Positions 557 2%7 Secretaries 546 2%8 Bus Drivers 510 2%9 Principals/Assistant Principals 484 2%10 Food Service Workers 457 2%11 Bus Attendants 450 2%12 School Police Officers 433 2%13 Building Engineers 427 2%14 Nurses 299 1%TOTAL 19,858 83%ALL OTHER 4,118 17%DISTRICT TOTAL 23,976 100%16

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerIncrease in Budgeted Positions -Proposed FY2009-10 Budget over FY2008-09 EstimateTeachersProp. FY10PositionIncreasesElementary 303Secondary 185Special Ed 78Early Childhood 4Instrumental Music 6Total Increase in Teachers 576Increase to reduce class sizes 376Other increases 200Total Increase in Teachers 576Counselors and Related Staff 449Parent + Community Support 53Dropout Prevention + Recovery 19Total Increase - Specific Position Types 1,097Other Adjustments - Net - All Other 18Total Proposed Increase in FTEs 1,115

School District of PhiladelphiaDr. Arlene C. Ackerman, Superintendent of SchoolsMichael J. Masch, Chief Business OfficerSchool District of PhiladelphiaProposed BudgetFiscal Year 2009-10(July 1 2009 – June 30 2010)Budget Update for theSchool Reform CommissionMay 20, 2009