June 23, 2011

Recommended Budget
Fiscal Year July 1, 2011 June 30, 2012 June 3, June 24, 2010 2010 January 21, 2010

Houston Independent School District

June 23, 2011

June 23, 2011

2011-2012 ISSUES
Anticipated reduction of state funding
Methodology of distribution of reduction

Potential Loss of state grants

Pre-K Early Start Grant DATE Teacher Incentive Fund Student Success Initiative

Potential Reduction or loss of federal grants

Reduced Title Funds Reduced IDEA, Part B Special Education Loss of Stimulus Funding
2

June 23, 2011

Revenue Assumptions

Local Roll $103.97 B (.32% decrease from prior year original budget)

Enrollment 202,000

Average Daily Attendance 182,244

Comptrollers Property Tax Value (CPTD) $105.209 B

Local Tax Rate remains the same as 2010-2011 at $1.1567 total

June 23, 2011

Local Tax Roll

To al
$120 $100

ed Value 2002 2012

$108.9 $109.6 $96.8 $77.9 $83.4 $104.7 $103.9

$80 $60 $40 $20 $0

$65.2

$73.7 $68.6 $70.9

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Note: 2001-2010 are HCAD Certified, 2011 is HCAD Certified Estimated

June 23, 2011

Local Taxes vs State Formula Fun ing

100 0%
0 0% 0 0%
3 %
%

2%
%

0 %

3%

0 0%
0 0% 0 0% 0 0% 30 0%
2 % 20 % 1

1%

3 3%

2 %

3%

1 %

31 %

33 % %
%1 %

% 2 2%

21 %
12 %

20 0%
10 0% 0 0%

2001 2002 2003 200 200 200

200 200
Local

200 2010 2011 2012

State

Note: 2000-2011 Are Actual Revenues; 2011-2012 are Projected Revenues 2009-2010 and 2010-2011 include State Fiscal Stabilization Funds (SFSF) for comparison purposes.

June 23, 2011

Total Tax Rate (M&O an I&S)

M&O Tax Rates 2005 2006 Ta Ra e 2006 2007 Ta Ra e 2007 2008 Ta Ra e 2008 2009 Ta Ra e 2009 2010 Ta Ra e 2010 2011 Ta Ra e 2011 2012 Ta Ra e

Ma ntenance Debt & Ope at ons Se ce

Total

$1 4500 $0 1700 $1 6200 $1 3257 $0 1500 $1 4757 $1 0067 $0 1500 $1 1567 $1 0067 $0 1500 $1 1567 $1 0067 $0 1500 $1 1567 $1 0067 $0 1500 $1 1567 $1 0067 $0 1500 $1 1567
6 6

June 23, 2011

FY 2011 ADOPTED HARRIS COUNTY DISTRICT TAX RATES (2010 TAX YEAR)

Katy Humble Galena Park Huffman Spring Crosby Shel on Cy-Fair Klein Average* Deer Park Spring Branch North Forest Tomball Clear Creek Pasa ena Alief La Porte Goose Creek Al ine Channelview Houston

1 2

00

1 20000 1 13 00 1 1 1 0000 0000 0000

1 30000 1 30000 1 10000 13 13 13 2 00 00

1 3 0000 1 3 0000 1 3 0000 1 3 0000 1 3 0000 1 32 000 1 302130 1 300 12 3 11 0 00 1 20 1 0 1 0

1 00

June 23, 2011

HARRIS COUNTY DISTRICTS WITH OPTIONAL HOMESTEAD EXEMPTIONS

Jurisdiction / Taxing Unit

Homestead Percent

CYPRESS-FAIRBANKS ISD DEER PARK ISD GALENA PARK ISD HOUSTON ISD LA PORTE ISD SHELDON ISD SPRING BRANCH ISD STAFFORD MSD GOOSE CREEK ISD PASADENA ISD CLEAR CREEK ISD

20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 5%
8 8

June 23, 2011

Basis of State Revenue Calculations

2011-2012 HB 1 proposes a 6 percent reduction to all districts of target revenue 2012-2013 HB 1 proposes a hybrid model which will reduce the hold harmless funding districts receive Subsequent years, if not changed in the next legislative session, will continue to reduce the hold harmless funding until all districts are on a straight formula funding model

June 23, 2011

Gene a

un

evenues
2010-2011 O na u et 1 , 00,000 20, , 2 2010-2011 June juste u et 1 ,22 , 0 2011-2012 ject n 23, 00,000 30, 00,000 0, 3,3

evenue ae f n s

u ce

ansfe s f m t e fun s cee s- eases- t e axes, cu ent ea axes, e nquent axes, ena t an ea s nte est

30, 00,000 2, 00,000 1 , 00,000 1 ,000,000 1,3 3,1 , , 1 2

,000 1, ,

,000,000 1 ,000,000 1, 00,000 ,000 3, 00,000 0,000 3,000,000 3,000,000 1 , 2 ,0 0 , 3 ,1 300,000 ,000,000 , 1, 0,000 1 1,

1 ,000,000 1 ,000,000 1,300,000 ,000 1,000 1, 00,000 0,000 ,2 0,000 2, 00,000 , 3 ,0

evenue n eu f taxes nsu ance ut n nte est ea n n s enta f fac t es ec ve

,322 1,12 ,000 10, ,2 , 1

sce ane us evenues evenue t e ve nments

2, 00,000 , 3 ,0 ,2 , 3 ,000 1,000,000 , , , ,2 ,0 1 , 1 1, 1,

e ca ta state evenues un at n sc Ot e state evenues n e af f e e a ta evenue am

,201,03 300,000 1,000,000 , 23,000 2,122, 2,122,

evenue sca ta zat n un ( fun n )

,3 0,

us tate ta

, 2 ,30 1, 0 ,20 ,0

evenue nc u n

1, 32,1 2, 0

10

June 23, 2011

2011 2012 inancial nalysis

eneral un

2011 2012 200 2010

1,

,122,

1, 13,3 0, 1 30,000,000 1, 3,3 0, 1

, 2 ,30 11,201,2 3 3 ,102,1 103,12 , 1 1,3 ,1 2 3 ,23 ,3

21,

,0
11

June 23, 2011

2010-2011 General Fun Appropriation Increases

INCR A I H Capital Federal Stimulus Funding - Govenor Stabilization Funds Texas Connections Academy 2010-2011 Enrollm nt Increase TOTAL INCR ASES WITH OFFSETTIN OTHER INCREASES Health Ins rance Unem loyment Ins rance TIRZ 7,287,419 3,874,320 2,521,156 1,750,000 1,707,000 1,350,000 918,789 726,502 671,000 455,000 429,477 384,533 329,000 289,603 274,205 225,000 69,180 40,000 23,302,184 REVENUE $ FF ING R NU 9,000,000 57,826,307 1,800,000 11,201,293 79,827,600

Literacy Initiative
Legal Fees Project Grad AP/IB/SAT Tests Liability Ins rance Bus Contract (Trans ortation)

Tejas Lee-TPRI Pre-K and Kindergarten Assessment

Gas (Utilities) Duk e Tip Bus Contract (School Portion) Workers' Com ensation Automobile Insurance Internal Charter Audits Medicare Audit Fees TOTAL OTHER INCREASES TOTAL INCREASES $

12
103,129,784

June 23, 2011

2010-2011 General Fun Appropriation Decreases

DECREASES TO APPROPRIATIONS S F t C tr str t ASPI E S n- ehalf f inimum TRS Above State asoline AEP Elementary CEP S hool Closures Transfers to other funds Property Insurance Appraisal istict Fees High School Stanford Testing istricwide - Travel Armored car contract Bond Crime Insurance TOTAL E EA ES TO APPROPRIATIONS ( , atching AEP Re-or anization S rv St PUA t t f Eff rt s s s t ( ( ( ( , , , , ( , ( , ( , ( , ( , ( , ( , ( ( ( ( ( ( ( ( ( , , , , , , , , , , , , , , , , , , , , , ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Unique PUA S

(3,000,000)

Small S hool Subsidy

(510,179)

13

June 23, 2011

School Resources
Weighted Student Allocations
2010 2011 S l r us e n

2010 2011 o l le en r S chools 3, 3, 10 3,

2010 2011 S l r us e n 2 2 2

2010 2011 o l 3,2 3,2 2 3,2

le S chools h S chools

Total Reduction for PUA

$58,443,000

Title I Regular Funding

Title Funds 2010-2011 Tier I Schools $ Tier II Schools $

210 per student 175 per student

Title III, Part A

All Schools

45 per student

14

June 23, 2011

Recommended Budget Reductions Central Office Budget Reductions General Fund Reduction of ($17,972,312) General Fund Positions: 221 Grant Fund Positions: 56

15

June 23, 2011

General Fun Staffing FY2000 versus FY 2011

General Fund Staffing by Assignment

2000 16,973 2,017 2,168 21,158 2011 16,095 1,610 1,985 19,690 Difference (878) (407) (183) (1,468) Percentage -5.17% -20.18% -8.44% -6.94%

School Staff Central Office Operations

16

June 23, 2011

2012-2013 SB1811 Conference Committee Report

je e Origin ixe ju n re en e ixe r xtern rojecte n re n re u ortfall $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ e e ene u n ntract e enue ($1 12 , 1, 33 11,03 , 0 3,11 , 1,000,000 1 ,000,000 , 03,03

r 2 ixe juste

t ncrease rojection

e uctions/Recommen ations entral Office Re uctions istrict-wide Reductions chool Reduction nique chools mall chool u sidy RE rogram igh chool tanford esting enefits - ositions Reductions roject rad ejas ee/ PRI iteracy Initiative Internal harter udits P/IB/ A ests u e ip chool losures Bus Initiative with IPP and E Excess Appropriations or ( hortfall)

1 , 2,312 22, ,33 , 3,000 2,3 , 1 4, 3 , 4, 20,000 459, 95 2,000,000 (1,350,000 (455,000 (1, 50,000 (225,000 (91 , 9) (3 4,533) 631,611 (1,000,000)

17
(40,168, 36)

June 23, 2011

Title I, Part A
opose Title 1 u get afte e ui e inc eases an eco en e unfun e p og a just ents eco en ati ns ,021, 2 , 2,000 , 3, 2 , 32, 0 1 , 00,000 113,032, 0

i inal oa pp ove Title I Fun ing fo 20112012 Sou ces of Fun ing lanning Entitle ent a yove Fun s lanning u get se of Fun s: ant e ui e Supple ental Education Se vice ovide s ofessional evelop ent Indi ect osts ivate School and othe iscellaneous a ent Engage ent the Initiatives a pus llocations eogra s er School Su Twilight Schools eneral dministration EX nline ourse Fee S T Testing /I Exams ampus nline aviance ouston rban ebate League Scholastic Scheduling Solutions Total Title I Funding

1 , 02,1 ,3 1,0 2, ,0 1,1 3, 2 , 32, 21,3 11,

3 0 0 3

0 ,3 02,1 23 ,3 3 , 12 3 , 1 ,

,110, , 00 1, 5 ,33 00,000 01, 0 3 , 5 100,000 , 3, 2

It is recommended that items in yellow be moved to the eneral u nd should the district receive reduced entitlement.

                 

,3 , 0 ,1 0,000 2,1 0,000 1,1 2, 00 50 ,2 103,1 , 32

1 , 0 , 1 , 3,2 0 2, 0, 1,1 , 2 , 3 33, 03,331 21,3 , 0 1 ,000,000 1,23 , 00 2,1 0,000 1,1 2, 00 50 ,2 1, 5 ,33 00,000 01, 0 3 , 5 100,000 113,032, 0

              

                               
3, 10, 32 , 3 ,000 103,1 , 32

                  

                                                                              

    

            

'

&

"

!  % $    # 

18

June 23, 2011

Title II, Part A (Professional Development)

J o r es of n in Plannin ntitlement arr over n s Plannin et se of n s amp s ase Allo ations Private Non Profit eneral A ministration i n n on ses Tea for Ameri a Professional Development i l Q alifie Tea ers an taff Tea er Development/ ore ontent Tea er Development/spe ial pop lations ea ers ip Development In ire t osts Total Title II n in 1 , , , 1 , 19, 1 , 1 , , ,11 1,1 , , , 1 1 , , 1,1 ( , ( , ( , ( , , ) ) 11, 9,9 , 1 , 1 ,1 ,

, ) , 1 )

, 1 )

9 , 9 ,11 1,1 , , 1 ,91 ,

19, 1 , 1

( ,

, ,

1 ,1

, ,

19

June 23, 2011

Title III, Part A Limited English Proficiency (LEP)

As Presented So rce of nding: Planning B dget , 2,0 2

Adj stment ( 2 , )

e ised , ,0

eneral Allocations: am s Allocations Pri ate on-Profit eneral Administration istrict Initiati ies: ality Biling al ESL Programs e comer S ort Transitional S ort ro o t Pre ention of ELL St dents

2, 22, $ $ , 00 $ $ 2, , 2 $

$ $ $

2, 22, , 00 2, , 2

$ 200,000 $ ,000 $ , 0 $ 0 ,0 $ ,022, $ ,

$ ( $ ( 0 $ ( $ ( $ ( 2

, ) , ) , ) , 0 ) , )

$ $ $ $ $

, 22 , 2 , 2 20 , , , ,0

Total Title III Allocations

2,0 2 $ ( 2 ,

) $

20

June 23, 2011

Total Budgets for Other Governmental Funds

2010 dopted Budget 20 , 1 ,2 3 1,01 , 211,1 , 0 1 2011 Re ommended Budget 21 ,0 2 , ,0 , 0 3, 0

Fund ebt ervi e pe ial Revenue apital roje ts Total penditures

hange 0 1 31 2 01 0

2 1,

0, 21,

, 0 ,

21

June 23, 2011

Total Budgets for Internal Service Funds

Fund ealt Insurance Fund or ers' o ensation Fund

2011 do ted Budget 13 , , 0

2012

eco ended Budget 123,202, 0 1 ,001,03 ,32 ,

ange 11 1

1 , 22, , , , ,

t letic Fund S ecial ducation S ared Services lternative rint S o I Total Internal Service 1 ertification Fund Fund

, 3 , ,1 3, 2, 3, 30 1 , , 2

21 1 3 2 11

1, 1 ,203 , 0 , 0 , ,0 , 3

22

June 23, 2011

Total Budgets for Enterprise Funds

Fund edicaid Food ervices Business evelop ent $

2011 dopted Budget 22,326,648 111,834, 96 10,710,778 144,872,222

2012

eco ended Budget 31,913,61 116, 47,242 10,990,361

ange 42.94% 4.39% 2.61% 10.20%

Total Enterprise Funds

1 9,651,218

23

June 23, 2011

Budget Implications beyond 2012

Declining State Revenues Cost of Federal Health Care Proposal Operational Fixed Cost Increases Salary Increases Instructional Programs

24