Department of Education Budget Transparency: Overview of the Operating Budget James M. Brese Assistant Superintendent and CFO September, 2010 Total Biennium Operating Budget Reductions B ie n n iu m F Y 2 0 0 9 -1 0 F Y 2 0 1 0 -1 1 T o ta l R e d u c tio n s /R e s tric tio n s B O E A p p ro ve d R e d u ctio n s A ct 1 6 2 /0 9 R e d u ctio n G o ve rn o r's 0 6 /0 1 /0 9 R e strictio n fo r F B 0 9 1 1 A ct 1 6 2 /0 9 P ro viso fo r R e stru ctu rin g S ch o o ls S u p p o rt fo r S tru gglin g N o n -T itle I S ch o o ls R e se rve fo r A d d itio n a l R e strictio n s a n d A n ticip a te d C o st In cre a se s* T a rg e t: T o ta l D O E R e d u c tio n /R e s tric tio n s $ $ $ $ $ (4 0 .0 1 ) (4 3 .0 0 ) (1 2 7 .7 0 ) (1 .1 4 ) (5 .0 0 ) $ $ $ $ $ $ $ (1 0 .0 0 ) $ (2 2 6 .8 5 ) $ (4 0 .0 0 ) (4 3 .0 0 ) (1 4 2 .6 0 ) (1 .1 4 ) (5 .0 0 ) $ (8 0 .0 1 ) $ (8 6 .0 0 ) $ (2 7 0 .3 0 ) $ (2 .2 8 ) $ (1 0 .0 0 ) (1 0 .0 0 ) $ (2 0 .0 0 ) (2 4 1 .7 4 ) $ (4 6 8 .5 9 ) Total Operating Budget Reductions – FY08 vs. FY11 Department of Education FY2010-11 Operating Budget Reductions - Dollars Description School Total Centralized Services for Schools Total Complex Area Total State Offices Total Subtotal Legislative Adjustment [1] Total FY2007-08 Budget $ 968,885,766 $ 319,930,510 $ 22,283,207 $ 83,165,552 $ 1,394,265,035 $ $ 1,394,265,035 % of Total 69% 23% 2% 6% 100% FY2010-11 Budget $ 935,710,363 $ 285,724,932 $ 17,508,358 $ 57,489,799 $ 1,296,433,452 $ (43,000,000) $ 1,253,433,452 % of Total 72% 22% 1% 4% 100% $ $ $ $ $ $ $ Variance (33,175,403) (34,205,578) (4,774,849) (25,675,753) (97,831,583) (43,000,000) (140,831,583) % Reduction -3% -11% -21% -31% -7% 0% -10% •The greatest portion of the DOE’s budgeted dollars is allocated to the schools •The greatest percentage reductions to the DOE’s budget has come from the State and Complex Area Data reflects General Funds only Total Operating Budget Reductions – FY08 vs. FY11 Department of Education FY2010-11 Operating Budget Reductions - FTEs Description School Total Centralized Services for Schools Total Complex Area Total State Offices Total Total FY2007-08 Budget 18,866.40 1,741.50 325.00 791.00 21,723.90 % of % of Total FY2010-11 Budget Total 87% 18,526.78 87% 8% 1,780.50 8% 1% 286.50 1% 4% 599.50 3% 100% 21,193.28 100% Variance (339.62) 39.00 (38.50) (191.50) (530.62) % Reduction -2% 2% -12% -24% -2% •The greatest portion of the DOE’s budgeted positions is allocated to the schools •The greatest percentage reductions in the DOE’s budget has come from the State and Complex Area Data reflects General Funds only Total FY2010-11 Operating Budget After Reductions General Fund Budget $1.3 Billion $285,724,932 , 22% $935,710,363 , 73% $17,508,358 , 1% $57,489,799 , 4% School Total Centralized Services for Schools Total Complex Area Total State Offices Total The State and Complex Area took reductions to preserve instructional services at the school level! Total FY2010-11 Operating Budget After Reductions General Fund FTEs 21,193.28 FTEs 18,526.78 , 88% 1,780.50 , 8% 286.50 , 1% 599.50 , 3% School Total Centralized Services for Schools Total Complex Area Total State Offices Total The State and Complex Area took reductions to preserve instructional services at the school level! What are DOE Centralized Services? Why is this budget not allocated to the schools? The principal can focus on being the educational leader of the school! The DOE as a system can take advantage of standardization and economies of scale! DOE Centralized Services Electricity bills and other utilities Network infrastructure support/development School food services Student transportation Diagnostic services for SPED services qualification Personnel hiring, recruitment, and recordkeeping Workers compensation Unemployment benefits administration Financial accounting and reporting IT development, implementation, operations Litigation support Autism, school based behavioral health Special education provision and recordkeeping DOE Statewide Responsibilities Strategic Planning Student Achievement Standards Development Budget Preparation and Execution Teacher Certification Hawaii State Assessments Policy Development Internal Audit Compliance with US DOE and State Regulations Federal Reporting Requirements Inter-governmental relationship management DOE Budget $1.7 Billion (Does not include $57 Million from the Hurricane Relief Fund) Special Funds, Trust Funds, Interdepartmental Transfers, and Revolving Funds General Funds $1.3 Billion, 76% $92.8 Million, 6% Federal Funds Ceilings $305.7 Million, 18% Budget Summary by All Means of Financing DOE Budget $1.7 Billion (Does not include $57 Million from the Hurricane Relief Fund) No Fringe Benefits are Included. Removed from DOE Budget since FY09-10. Total Amount = $456.3 Million, or $2,641 per student for FY10-11 Salaries $996.7 Million, 60% Non-Salaries $655.2 Million, 40% Budget Summary by Salaries/Non-Salaries DOE Budget $1.7 Billion (Does not include $57 Million from the Hurricane Relief Fund) Weighted Student Formula (WSF) 42% Federal Funds 11% Special Education (SPED) 11% Other Programs 6% Other SPED & Student Support Programs 10% Other Centrally Expended 5% Food Services 6% Student Transportation 3% Facilities (Repairs & Maintenance) 3% Utilities 3% DOE Budget $1.7 Billion (Does not include $57 Million from the Hurricane Relief Fund) Weighted Student Formula (WSF) $702.3 Million Federal Funds $175.8 Million Special Education (SPED) Other Programs $186.0 Million Other SPED & Student Support Programs $97.1 Million $159.5 Million Student Transportation Other Centrally Expended $86.7 Million Food Services $94.5 Million Facilities (Repairs & Utilities Maintenance) $42.8 Million $56.1 Million $51.3 Million Weighted Student Formula (WSF) The Weighted Student Formula (WSF) promotes equity by allocating funds to schools based on individual students’ educational needs. Weighted Characteristics: • Economically Disadvantaged • English Language Learners • Geographic Isolation • School Size/Sliding Scale • Multi-track • K-2 Class Ratios • Transient Students • Neighbor Island Students With 172,806 students enrolled, approximately $4,064 is average budget per student. $702.3 Million of DOE Budget = 42% Budget per student is based on SY 2010-11 Projected Official Enrollment Count Other Programs (Categorical) Separate funding is allocated to ensure that specific programs are established and supported for broadened education. • • • • • • • • • • • • • • Athletics (except Directors—now in WSF) JROTC Hawaiian Language Immersion Program Hawaiian Studies Other Instructional Services Learning Centers Student Activities (Student Conference, Student Council, Awards, Student Exchange) Peer Education Program • Educational Research & Development At Risk Programs • Trust Funds (Grants, Donations, Athletics, Olelo) Summer School • Hawaii Content/Performance Standards, Restructuring Driver Education • Etc… Lost Textbooks School Health Aides After School A Plus ≈ $562 per student $97.1 Million of DOE Budget = 6% Federal Funds Title 1 No Child Left Behind Impact Aid Vocational Education Smaller Grants ≈ $1,017 per student $175.8 Million of DOE Budget = 11% Special Education (SPED) SPED Requirements at Schools • Teachers • Classroom Supplies • Educational Assistants $186.0 Million = 11% of Budget ≈ $1,076 per student Centrally Expended for SPED and Student Support Programs • • • • • • • • • • • Federal Funds Special Olympics $159.5 Million = School Based Behavioral Health 10% of Budget Services for Children with Autism ≈ $923 per student Student Support Services Recruitment and Retention Incentive Educational Assessment/Prescriptive Services Special Education Database Extended School Year Home/Hospital Instruction Etc… Special Education (SPED) • 18,172 special education students projected enrollment in FY 2010-11 • 11% of total student enrollment SPED Requirements at Schools ≈ $10,234 per SPED student Centrally Expended for SPED and Student Support Programs ≈ $8,775 per SPED student $345.4 Million (SPED Combined) = 21% of Budget ≈ $19,010 per SPED student Other Parts of the DOE Budget for Students $547 per per student student ≈≈ $484 Food Services $94.5 Million 6% ≈≈ $242 $297 per per student student Student Transportation $51.3 Million Facilities (Repairs & Maintenance, School Inspection, State Administration, etc.): 3% Utilities $42.8 Million $56.1 Million 3% 3% ≈ $247 per student $242per perstudent student ≈≈$325 All Other Centralized Expenses 5% of DOE Budget - $86.7 Million In addition to supporting student achievement, the remaining 5% of the DOE Budget supports a combination of the schools, the complex areas, and the state level functions. Many of these impact student education directly and all others affect student education indirectly. Per Student 5% Breakdown ≈ $502 per student $ 99 1.0% • Complex Area Administration $107 1.1% • Office of Curriculum, Instruction, and Student Support (Teleschool, Adult Education, Federal Funds for Homeless, National Science Foundation, NAEP, Etc.) $ 98 1.0% • Office of Human Resources (Teacher Improvement Services, Leadership Development, Etc.) $109 1.1% • Office of Information Technology $ 44 0.5% • Office of the Superintendent (Systems Accountability: Testing, Evaluation, Planning, Etc.) $ 24 0.3% • Office of Fiscal Services $ 20 0.2% •All Other (Board of Education, HTSB, and Art in Public Places) Complex Area (ICAA) = $17.1 Million; Remaining State Offices = $69.6 Million Summary WSF 42% Expended by Principals 70% for Students 28% Categorical, SPED, Federal ≈ $6,719 per student Centralized Expenses for Students 25% ≈ $2,339 per student Other Centralized Expenses for Schools 5% ≈ $502 per student 95% of Budget Budget per student is based on SY 2010-11 Projected Official Enrollment Count Summary Budget Breakdown Per Student SY 2010-11: 172,806 Students Projected Weighted Student Formula 42% $4,064 per student Other Student Funding at Schools 52% $4,994 per student All Other Centralized Expenses at 5% $502 per student Affects Schools, Complex Areas, State Offices, etc. 95% of Budget = $9,058 Average Per Student 100% of Budget = $9,559 Average Per Student HSA Results R e a d in g - P e rc e n t P ro fic ie n t 100 100 90 86 80 P er centage 70 60 60 50 58 42 48 45 41 30 30 30 58 72 72 58 47 44 40 67 65 62 44 44 30 20 10 0 2002 2003 2004 2005 2006 A c tual Results 2007 2008 2009 2010 2011 2012 A nnual Measurable Objec tives Under NC LB 2013 2014 HSA Results M a th - P e r c e n t P r o fic ie n t 100 100 90 82 80 P er centage 70 64 60 64 49 50 42 46 38 40 30 20 24 28 23 20 44 46 46 27 28 28 20 10 10 10 10 0 2002 2003 2004 2005 2006 A c tual Results 2007 2008 2009 2010 2011 2012 A nnual Measurable Objec tives Under NC LB 2013 2014 “The Big Picture” State of Hawaii Executive Budget General Funds $4,943,348,231 FY10-11 All Means of Finance $10,241,967,263 DOE Budget EDN100 EDN150 EDN200 EDN300 EDN400 EDN500 EDN100-500 Total DOE % of Exec General Funds All Means of Finance $705,256,507 $955,364,041 306,475,682 353,790,360 22,430,453 25,691,997 42,517,962 42,552,963 171,837,016 245,269,051 4,918,832 29,253,061 $1,253,436,452 $1,651,921,473 25.36% 16.13% Factor in Fixed Costs BUF725 - Debt Service BUF745 - Retirement BUF765 - Health Ins DOE Share of Fixed Cost Total DOE Share of Fixed Cost % of Exec General Funds All Means of Finance $194,855,477 $194,855,477 249,726,061 249,726,061 206,597,259 206,597,259 $651,178,797 $651,178,797 13.17% 6.36% DOE + Fixed Costs General Funds All Means of Finance $1,904,615,249 $2,303,100,270 38.53% 22.49% DOE + Fixed Costs % of Executive Budget The DOE budget (including fixed costs) represents: • 38.53% of the entire state general fund budget • 22.49% of the entire state budget for all means of financing Race to the Top (RTTT) RTTT grants are aimed at rewarding states that have “ambitious yet achievable” plans for implementing compelling and comprehensive education reform Hawaii will receive $75 million, the maximum for a state its size, over a fouryear period Summarized from The StarAdvertiser, 08/25/10 “The money is meant to start reforms, to leverage reforms. This is not intended to replace our general fund budget reductions.” Kathryn Matayoshi, Superintendent Race to the Top (RTTT) Placed in top three! (applicants judged on a 500-point scale by a five-member expert panel) Top 3 Phase II Winners Massachusetts New York Hawaii Only 2 Phase I Winners Tennessee Delaware Summarized from The StarAdvertiser, 08/25/10 Score 471.0 464.8 462.4 Compared to Hawaii 8.6 points 2.4 points Race to the Top (RTTT) The four-year, $75 million grant will help kick-start reforms across Hawaii’s public school system. Here is how it will be spent: $33.2 million Cultivate, reward, and leverage” effective teaching and school leadership by instituting performance-based contracts for teachers and principals tied, in part, to student performance growth. Funds will also go to professional development, bonuses for highly effective teachers, and other initiatives. $18.7 million Turn around the lowest-performing schools by targeting programs in “zones of school innovation,” expanding pre-kindergarten opportunities, and extending classroom time. $9.3 million Boost student achievement and classroom rigor by implementing the national common core standards curriculum, aimed at standardizing what students across the country learn. $7.2 million Improve student performance data collection and use, allowing teachers, parents, schools, and the DOE to quickly see when a student is struggling and track how a student performs from kindergarten through graduation (and through college). $6.5 million Reorganize to improve and streamline how the Department of Education monitors and supports reforms. Summarized from The StarAdvertiser, 08/25/10 Race to the Top (RTTT) Questions about RTTT? For more information, please access the DOE’s website for RTTT http://doe.k12.hi.us/arra/index.htm Questions? CONTACT US: Department of Education Office of Fiscal Services 1390 Miller Street, Room 319 Honolulu, HI 96813 Phone 808-586-3737 Fax 808-586-3445 Email: james_brese@notes.k12.hi.us Visit our website: http://doe.k12.hi.us/