School Operating Budget

Adopted February 5, 2008

For Fiscal year 2008-09

BACKGROUND

The School Board on February 5, 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 approved the budget to be presented to the Board of Supervisors for funding. During February to April 2008, adjustments will be made to the budget based on projected revenue from the General Assembly and the Board of Supervisors. The School Board should approve the final budget in May, 2008.

Proposed Budget Changes

BUDGET ADOPTED February 5, 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

188,197

Increase 4-Year Olds Pre-School State Match

25,800

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

108,807

Increase for Cost of Diesel/Gasoline Fuels

56,250

Inflationary Increase for Supplies and Materials @ 2.2%

63,885

Inflationary Increase for Equipment @ 2.2%

32,381

Subtotal Base Budget Adjustments

263,499

COMPENSATION INCREASE:

Division-wide 8.9% - (1% =$711,785 ) (Step = 1.6% @ $1,081,121)

6,334,887

Decrease in VRS Contribution

(432,619)

Add Personal Leave Day

47,100

Decrease in GLI Contribution

(53,324)

Increase Health Insurance 10.8%

735,671

Part-time Benefits - 0.5%

355,893

Subtotal Compensation

6,987,607

STAFFING INCREASE:

Add 5 High School Teachers

5.00

285,405

Add 5 Elementary Teachers

5.00

285,405

Add 2 Special Ed Teachers

2.00

114,162

Add 4 Special Ed Instructional Aides

4.00

55,732

Add K-8 Math Specialist

1.00

57,081

Add ESL Teacher

0.70

39,957

Add Athletic Trainers (teacher positions) for High Schools

2.00

114,162

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

1.00

80,848

Convert Lead Teacher CHS to Asiist. Principal

17,051

Add Assistant Principal/Lead Teacher (AMS & SMS)

1.00

92,893

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

5,612

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)

5.10

76,932

Preschool Aides can no longer be supported with Title I Funds

104,897

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

267,009

Add Grounds Maintenance Position

1.00

31,182

Add Custodians

2.00

62,364

Subtotal Staffing Requests

33.62

1,812,198

SERVICES, SUPPLIES, & EQUIPMENT:

CTE equipment replacement and improvements

120,000

Increase for Professional Development

25,000

Increase Budget for Instructional Supervisors Supplies and Services

10,000

Increase Gifted Budget for Added Teachers

8,000

Benchmark Testing Software & Services

90,000

Budget for Library Reference and Non-fictional Materials

40,000

Budget to Support Employee Wellness Program

7,000

Funds for Replacement of School Buses (4 @75,000)

300,000

Funds for Replacement of School Nutrition Capital Equipment

150,000

Funds for Replacement of Computer/technology Equipment

466,840

Increase Budget for Custodial & Maintenance Supplies & Equipment

80,000

Subtotal Services, Supplies, & Equipment

1,296,840

TOTAL BUDGET INCREASE

33.62

10,360,144

PERCENT INCREASE IN BUDGET

11.54%

TOTAL BUDGET WITH PROPOSED CHANGES

1,573.03

100,101,840

PROJECTED REVENUE INCREASE:

State

5,786,624

Federal

368,911

Local

66,000

TOTAL PROJECTED STATE & FEDERAL REVENUE

$ 6,221,535

COUNTY BUDGET REQUEST

4,138,609

Percent Increase County General Funds

12.31%

Salary Increase = 8.9% (1.6% step +7.3% COLA)

EXPENDITURE SUMMARY BY CATEGORY

BUDGET

PROPOSED

$ Change

PERCENT

DESCRIPTION

FY 2006-07

FY 2007-08

FY 2008-09

CHANGE

INSTRUCTION

66,876,757

69,632,799

77,459,015

7,826,216

11.24%

ADMIN, ATTEND & HEALTH

3,441,210

3,531,291

3,891,473

360,182

10.20%

TRANSPORTATION

3,939,113

4,024,646

4,726,983

702,337

17.45%

OPERATIONS & MAINTENANCE

12,126,558

12,517,087

13,984,328

1,467,241

11.72%

NON-INSTRUCTION

34,710

35,873

40,041

4,168

11.62%

TOTAL

$ 86,418,348

$ 89,741,696

$100,101,840

$ 10,360,144

11.54%

PROJECTED REVENUE

Description

BUDGET FY 2006-07

BUDGET FY 2007-08

PROPOSED FY 2008-09

$ Change

% Change

State Sales Tax

11,081,273

10,519,008

10,676,508

$ 157,500

1.50%

State Funds

39,281,338

41,480,055

47,109,179

$ 5,629,124

13.57%

Federal Funds

3,528,020

3,652,999

4,021,910

$ 368,911

10.10%

County Funds Operations

32,026,203

33,612,976

37,751,585

$ 4,138,609

12.31%

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

$100,101,840

$ 10,360,144

11.54%