School Operating Budget

Approved May 1, 2008

For Fiscal year 2008-09

BACKGROUND

The School Board on May 1, 2008 adopted the initial budget for fiscal year 2008-09. This budget includes Federal, State, County and Local revenues and expenditures supported by these revenues as approved by the School Board. The budget and budget process are summarized in the following. The full budget detail is available through the School Board Office.

As we approach the budget development for fiscal year 2008-2009, an extensive review of the existing budget has been accomplished. This review involved a modified zero based process. Programs, functions, and staffing were reviewed to identify possible areas that exceeded needs and areas that required additional funds. In addition, we looked at areas that should be updated and realigned with current programs and needs. The budget reflects this review and presents the adjustments required to carry forward the current approved programs and functions. This review has shown that Montgomery County Public Schools are using the allocated resources effectively as approved and directed by the School Board. The Superintendent and School Board are committed to efficiently using resources to ensure that a world-class education is provided to serve all students and families of Montgomery County.

BUDGET PLANNING ASSUMPTIONS

A. Resources will be directed to ensure all schools are accredited and meet the Adequate Yearly Progress (AYP) requirements of No Child Left Behind (NCLB).

B. Current pupil teacher ratio targets will be maintained.

1. Grades K-3 ratio of 15 to 1 not to exceed 18 to 1

2. Grades 4 – 8 ratio 20 to 1 not to exceed 24 to 1

3. Grades 9 – 12 ratio 22 to 1

C. Total projected student average daily membership for March 31, 2009 is 9,591 and is the same as the current budget level of 9,591. This reflects that the ADM for the FY 2007-2008 will be less than projected but that moderate growth will continue in student enrollment.

D. State revenue will continue to increase as the State budget is adjusted to maintain the Standards of Quality and to meet the projected increase in student enrollment.

E. Additional County funds will be available based on moderate growth to meet expenditure increases and to assist with the increase in the budget for compensation to bring salaries closer to the State average and to keep Montgomery County Public Schools competitive.

The Budget Process

The budget process is comprised of planning, preparation, adoption, implementation and evaluation. The planning process began in September and October 2007 with meetings with directors, principals, and staff. On November 20, 2007 a public hearing was conducted by the School Board to receive input for the budget planning. The summary of initial budget requests and projected State revenue was presented to the School Board on January 8, 2008. During January several work sessions were scheduled by the School Board to receive information and evaluate requests and recommendations from the administration, staff, and employee groups. On January 22, 2008 the School Board approved a budget for a public hearing on February 5, 2008. The School Board adopted the budget on February 5, 2008 and presented the budget to the Board of Supervisors for funding. During February to April 2008, adjustments were made to the budget based on projected revenue from the General Assembly and the Board of Supervisors. The School Board approved the final budget on May 1, 2008.

Approved Budget Changes

BUDGET APPROVED MAY 1, 2008

SCHOOL BOARD'S ADOPTED BUDGET

DESCRIPTION

FTE

COST

TOTAL

Operating Budget FY 2007-08

1,539.41

89,741,696

Base Budget Adjustments:

Salary Distribution Adjustments

(194,936)

Benefit Distribution Adjustments

(35,885)

Increase for Software Licenses/Service Contracts

19,000

Increase Textbook Budget for State Match

136,960

Increase 4-Year Olds Pre-School State Match

16,991

Increase Budget for Capital Equipment (Match for 50% of Lottery Increase)

79,405

Increase for Cost of Diesel/Gasoline Fuels

131,250

Inflationary Increase for Supplies and Materials @ 2.2%

63,885

Inflationary Increase for Equipment @ 2.2%

32,381

Subtotal Base Budget Adjustments

249,051

COMPENSATION INCREASE:

Division-wide 7.0% COLA plus step - (1% =$701,572 ) (Step = 1.6% @ $1,081,121) Total Increase = 8.6%

6,061,831

Decrease in VRS Contribution

(689,050)

Decrease in GLI Contribution

(87,258)

Increase Health Insurance 10.8%

735,671

Part-time Benefits - 0.5%

350,986

Subtotal Compensation

6,372,180

STAFFING INCREASE:

Add 5 High School Teachers

1.00

57,081

Add 5 Elementary Teachers

2.00

114,162

Add 2 Special Ed Teachers

2.00

114,162

Add 4 Special Ed Instructional Aides

4.00

55,732

Add K-8 Math Specialist

Add ESL Teacher

0.70

39,957

Add Athletic Trainers (teacher positions) for High Schools

1.00

57,081

Add Guidance Lead Position (Divisional support and AHS & EMH)

Convert Lead Teacher CHS to Assist. Principal

17,051

Add Assistant Principal/Lead Teacher (AMS & SMS)

Extend Guidance Admin Assistant to 12-Mos. (AHS, EMH)

Increase Middle/High Nurses to Full Schedule

3.50

111,188

Add Swimming Coach Supplement (AHS)

0.05

1,384

Add Indoor Track Coach Supplement (AHS)

0.02

1,039

Add Assist. Volleyball Coach Supplement (BHS)

0.05

1,384

Add Art & Foreign Lang. Dept. Chair Supplements (AHS, BHS, CHS, EMH)

0.20

6,511

Increase ½ time Clerical Aides to Full Schedule (Elem)

Preschool Aides can no longer be supported with Title I Funds

104,897

Reading Teachers from Title I to School Operating Budget (KES, MBE)

Add Grounds Maintenance Position

Add Custodians

1.00

31,182

Subtotal Staffing Requests

15.52

712,811

SERVICES, SUPPLIES, & EQUIPMENT:

CTE equipment replacement and improvements

60,000

Increase for Professional Development

Increase Budget for Instructional Supervisors Supplies and Services

Increase Gifted Budget for Added Teachers

Benchmark Testing Software & Services

45,000

Budget for Library Reference and Non-fictional Materials

40,000

Budget to Support Employee Wellness Program

Funds for Replacement of School Buses (1 @75,000)

75,000

Funds for Replacement of School Nutrition Capital Equipment

Funds for Replacement of Computer/technology Equipment

50,000

Increase Budget for Custodial & Maintenance Supplies & Equipment

40,000

Subtotal Services, Supplies, & Equipment

310,000

TOTAL BUDGET INCREASE

15.52

7,644,042

PERCENT INCREASE IN BUDGET

8.52%

TOTAL BUDGET WITH PROPOSED CHANGES

1,554.93

97,385,738

PROJECTED REVENUE INCREASE:

State

5,490,592

Federal

368,911

County

1,718,539

Local

66,000

TOTAL PROJECTED STATE & FEDERAL REVENUE

$ 7,644,042

Percent Increase in Revenue

8.52%

Salary Increase = 8.6% (1.6% step +7.0% COLA)

EXPENDITURE SUMMARY BY CATEGORY

BUDGET

APPROVED

$ Change

PERCENT

DESCRIPTION

FY 2006-07

FY 2007-08

FY 2008-09

CHANGE

INSTRUCTION

66,876,757

69,632,799

75,526,810

5,894,011

8.46%

ADMIN, ATTEND & HEALTH

3,441,210

3,531,291

3,868,194

336,903

9.54%

TRANSPORTATION

3,939,113

4,024,646

4,617,848

593,202

14.74%

OPERATIONS & MAINTENANCE

12,126,558

12,517,087

13,332,982

815,895

6.52%

NON-INSTRUCTION

34,710

35,873

39,904

4,031

11.24%

TOTAL

$ 86,418,348

$ 89,741,696

$ 97,385,738

$ 7,644,042

8.52%

PROJECTED REVENUE

Description

BUDGET FY 2006-07

BUDGET FY 2007-08

APPROVED FY 2008-09

$ Change

% Change

State Sales Tax

11,081,273

10,519,008

10,453,439

$ (65,569)

-0.62%

State Funds

39,281,338

41,480,055

47,036,216

$ 5,556,161

13.39%

Federal Funds

3,528,020

3,652,999

4,021,910

$ 368,911

10.10%

County Funds Operations

32,026,203

33,612,976

35,331,515

$ 1,718,539

5.11%

Recordation Tax

291,514

186,658

$ -

0.00%

Local Funds

210,000

290,000

356,000

$ 66,000

22.76%

Total Projected Revenue

$ 86,418,348

$ 89,741,696

$ 97,385,738

$ 7,644,042

8.52%