Rules For Budget Hearing

1. Rules For Budget Hearing • The hearing is a forum to permit the public to be informed of the details of the spending plans of the Hinds County School District and is not a press conference. • The Media is invited to cover the meeting as it would any other public meeting. • Please take this opportunity to sign the comment list if you wish to make comments or ask questions. • Comments and questions will be restricted to budget related issues. • Speakers will be limited to three (3) minutes for making comments or asking questions This presentation and support handouts are intended to provide summary financial and general statistical data about the various funds of the Hinds County Public School District. These funds are supported by Mississippi Adequate Education Program (MAEP) funds, local Ad Valorem tax collections, federal grant funds and funds generated locally within the school district. 1

2. Public Hearing on Proposed Budget Fiscal Year 2015-2016 June 11, 2015

3. Hinds County School District 3

4. Hinds County School DistrictBoard of Trustees • Superintendent • Delesicia Martin, Ed. D. 4

5. VisionStatement The Hinds County School District envisions its schools as learning environments that… PROVIDE the safest possible learning environment; TEACH so that every student masters the fundamentals; CHALLENGE students to reach their potential; ENSURE a broad range of experiences for students; BUILD a strong partnership between school, home & community; PREPARE students to live productive lives as informed, responsible citizens. 5

6. Impact of Hinds County School District The success of Hinds County School District … Serves approximately 47,450 citizens; Fosters higher property values; Directly employs approximately 770 people - Largest employer in rural county & 15th largest employer in Hinds County; Pays on average $2.5 M in monthly payroll; $1.8 M to vendors Provides education for Bolton, Edwards, Raymond, Terry, Byram, Utica and surrounding communities; 6

7. Fiscal Year Budget • Section 37-61-9, Mississippi Code Annotated (1972), requires the school district, to prepare a budget of anticipated revenues and expenditures on or before August 15th for the coming fiscal year. • The district’s educational plan expressed in dollars and used to measure and monitor revenues and expenditures. • Annual budgets are essential for sound financial management. • The budget may change or may be amended as the instructional needs of our students change. • All information provided during this presentation is based on source information available at this time. 7

8. Simplified Budget Development Process • Determine Board’s budget guiding principles • Use strategic plan to guide identification of budget priorities • Include other stakeholders in budgeting process • Identify inclusion/deduction recommendations • Determine Board & Superintendent’s action regarding recommendations • Present final proposed budget to Public • Board adopts budget 8

9. Guiding Principles • Identify budget priorities for instruction, support activities, etc. • Maintain parity among all schools • Actively pursue cost cutting measures and identify budget reducing options • Build in appropriate budget safeguards • Be Conservative and Realistic! 9

10. Enrollment (ADA vs ADM) Historic by School

11. Enrollment (ADA vs ADM)Historic District

12. Budget Highlights • Personnel • Annual Step and Scale increases for all certified staff (+$1,355,000) - $464,000 MAEP • Annual Step increases for support staff (+1.5-2%/$273,000)) • Annual Step increases for Administrative Staff (+$180,000) • Retiree savings related to lower replacement salaries (-$210,720) 14

13. Budget Highlights • Operations • 14TH Year of Contracted Transportation Services Contract; (2.5%) • Service agreements of provision of substitute teachers, food service staff (+2.5%) • Cleaning staff will remain at prior year rates (+2.5%) • Increase in Property, General and Liability Insurance (-20%) 15

14. Budget Highlights • Instructional • Maintain our current academic and instructional programming • AmeriCorps Tutors (10) –GRE, GRI, BEMS, RES ($60,000) • Replacement and New Band Instruments ($80,000) • Audio Visual Equipment for new Career and Technical Center Program ($30,000) 16

15. Proposed Budget Highlights • Capital Projects (estimate $7,000,000) • Phase 1 • Tracks – RHS & THS • Phase 2 • Softball/Soccer Field House – RHS • Softball/Baseball/ Soccer Field House – THS • Visitor Public Toilets & Concession – RHS • Visitor Public Toilets & Concession – THS • Bleacher Replacements • Phase 3 • Upgrade of practice football fields at Utica, Bolton Edwards, and Byram • Phase 4 • Construct new playgrounds • Modify classroom at CMS/RFA to Biology Lab Space • Installation of emergency generators 17

16. Proposed Budget Highlights • Technology • Replacement/Upgrade of Computer Hardware – (+$150,000) • Project Computer Access (Phase 3) – (+$178,000) • Intercom system for Hinds Career Technical Center(+40,000) • Smart Board purchases ($100,000) • Debt Service • Debt Service payments ($6,263,451) 18

17. Allocations To Schools • Funds are allocated to schools based on a per student and /or per teacher basis. • Principal is responsible for managing their individual school budget (site based management). • Funds may be transferred between certain accounts to accommodate needs. 19

18. Allocations To Schools 20

20. Budget Projection Summary Combined budget of all funds • Notes: • Fund Balance at July 1, 2015 is an estimate until FY 2015 General Ledger is closed. • Fund Balance Used is a projection based on expected revenues and expenditures. 22

21. MAEP ALLOCATION (LAST 12 YEARS) }+$1,763,976 Under funded amount FY09 to FY 2016 =$20,317,282.00

22. Revenue Projection By Source 24

23. Expenditures By Function 25

24. Expenditures By Function 26

25. Expenditures By Object 27

26. Debt Service Due FY 2015

27. Ad Valorem • Local Revenue Request 29

29. Ad Valorem Tax Millage 32

30. Example Calculation How much Ad Valorem Tax would a single family home valued at $100,000 generate in the Hinds County School District, at the school taxes of 68.02 mills? Thus, in this example, the ad valorem tax bill is $680.02.

31. Tax Bill Implications by True Value 49

32. Notice of Tax Increase • Advertisement of Notice of Tax Increase is required by Mississippi Code Section 27-39-207 • Advertisement as run indicates that the district’s proposed request may cause an increase in the ad valorem millage rate. 35

33. Proposed Ad Valorem Tax Request • The District requests a specific dollar amount of support and does not set millage. The information about millage is provided only as clarification of the district’s estimated affect on taxes. • The ad valorem tax effort discussed and advertised is the District’s estimate based on available information. • Forces outside the District come together to determine what the final millage rate will be. • The final millage rate will be higher or lower based on final assessed valuation and homestead exemption. 36

34. Proposed Ad Valorem Tax Request • Request that the Hinds County Board of Supervisors levy a millage rate that will generate total proposed ad valorem tax revenues of $25,418,454. • Represents $1,088,345 increase over last year due to lack of MAEP full funding and partially offset by anticipated new property growth. • Authority to request additional funds is granted in MS Law 37-57-104(3) and is not subject to 4% or 7 % tax increase limitations. • Proposal is based on the 2014 Assessed Valuations.

35. Next steps in budget process Modifications or corrections related to the public hearing will be reviewed and incorporated into Budget. Conduct individual budget review meetings with Principals. Board will approve final budget at June 18, 2015 special board meeting. Resolution will be sent to the Hinds County Board of Supervisors requesting final request amount.

36. Questions or Comments? 39