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Budget Basics

Budget Basics. Preparing for the 2011 NC General Assembly Session. Situation Analysis. NC budget shortfall of $2-$3.7 billion for the 2011-12 fiscal year. Cause: end of federal stabilization funds; end of some state taxes; end of nonrecurring cuts. Economic recovery continues to be slow.

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Budget Basics

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  1. Budget Basics Preparing for the 2011 NC General Assembly Session

  2. Situation Analysis • NC budget shortfall of $2-$3.7 billion for the 2011-12 fiscal year. • Cause: end of federal stabilization funds; end of some state taxes; end of nonrecurring cuts. • Economic recovery continues to be slow.

  3. Situation Analysis • Public school budgets have been cut for three consecutive years. • Yet, with approximately 37 percent of the state’s overall budget tied up in public schools, it’s tough to reach spending cut targets without impact to public schools.

  4. Basic Facts • State funds total approximately $7.2 billion of public school funding or about 65 percent of the money schools spend to operateeach year. • Local funds = 25 percent;Federal funds = 10 percent.

  5. Funding Sources 84% of state funds go towards personnel costs (positions). Local funds go towards operating costs and capital outlay (maintenance employees, fuel, hospitalization, facilities, furniture, etc. – not intended to fund teaching positions). Federal funds are very restricted to specific purposes – Title 1, EC, Grants.

  6. Trend over Time

  7. How NC Ranks North Carolina ranks 45th inthe nation in per-pupil spending.

  8. Common Questions • Why are schools always on the chopping block?NC’s Public School Fund is the largest chunk of the state budget’s General Fund.

  9. Common Questions • What about the lottery funds –won’t they help?Lottery funds do help – but they make up only about 3.9 percent of the budget. And, they’re designated for specific purposes –K-3 teachers, More at Four, school construction and scholarships. PCS received $2,245,677 used for construction

  10. Common Questions • Can’t we just cut administration and leave teachers alone?Eliminating all administration (NCDPI, central office staff, principals/assistant principals) would total $478 million –less than half of the possible $1 billionin targeted cuts. In addition, none of the workload has been eliminated.

  11. Common Questions • Why not cut out testing? Wouldn’t that save a lot of money?Cutting out all testing would save about$11 million - far short of our needed cuts. Also, NC is required to do some testing under federal and state laws.

  12. Common Questions What about Education Jobs Bill Money? 1.2 million will be helpful but will not close our budget shortfall.

  13. Common Questions • Won’t the federal Race to the Top funds help solve our budget problem?Race to the Top is providing nearly $400 million over four years to North Carolina - but the funds are targeted for specific purposes and not for general use. Funds are a one-time allocation.

  14. Race to the Top Pender County Schools Race to the Top allocation is $669,000 spread over the next four years. Earmarked for technology infrastructure, professional development, and implementation of the new common core standards.

  15. Where We Are Just as NC schools are showing significant progress, our budget shortfall presents a significant gap.

  16. State Budget Impact on PCS – 5% Cut 24 Teacher Positions (out of 385/excludes math and science) 5 Instructional Support Positions (media and counselors) 1.5 Assistant Principal Positions 2 CTE Teacher Positions 43 Teacher Assistant Positions 1 Director Position Central Office (8%) No funded allotment for office support, custodians, and substitute teachers (2.1 million)

  17. State Budget Impact on PCS – 10% Cut 29 Teacher Positions (out of 385/excludes math and science) 5 Instructional Support Positions (media and counselors) 2 Assistant Principal Positions 3 CTE Teacher Positions 67 Teacher Assistant Positions 1 Director Position Central Office (8%) No allotment for office support, custodians, and substitute teachers (2.1 million)

  18. Allotment Comparisons 2008/09 - 2011/12 2008-09 $39,118,603 2009-10 $38,922,026 2010-11 $36,855,178 2011-12 (5% cut) *$30,456,291 2011-12 (10% cut) *$29,151,003 *Includes LEA Adjustment of $1,390,634

  19. Enrollment Comparisons 2008 – 09 8194 2009 – 10 8112 2010 – 11 8241 2011 – 12 ?

  20. Governor’s Budget Represents an 8.57% reduction for public schools Transfers additional costs to local (county) government so in reality represents a higher cut. County governments would take on the cost of school buses, worker’s comp and tort claims. Lottery funds to schools cut by 30%

  21. Governor’s Budget Continuation Adjustments – does not account for growth Recommended Adjustments: Central Office reduced 10% Instructional Support reduced 5% Non-instructional Support reduced 15% Transportation reduced 13.4% Dept. of Public Instruction reduced 10.2% More at Four reduced 5% ADM Adjustment 1.4 million for PCS

  22. Other Challenges Will we be able to keep Low Wealth funding? How will we pay office support, custodians, and substitutes with no funding? Additional costs to local government? Will we lose employee supplements and no-pay athletics? Rising costs in fuel and employee benefits.

  23. Senate Bill 8 Eliminates cap on charter schools. All funds going through an LEA current expense fund must be shared with charter schools including fund balance.

  24. DPI Budget Information http://www.ncpublicschools.org/budget/financial/

  25. Contact Legislators! Carolyn.Justice@ncleg.net Bill.Rabon@ncleg.net

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