Update on 2014-15 Finances &
2015-2016 Budget Process
February 9, 2015
1
BCC Email
Legislative/Economic Update
 Governor’s spending plan
 Significant revenue growth with competing demands
 School funding lawsuit
 Oil prices - Texas likely to grow at slower pace than USA.
 2015-16 – need to budget conservatively
 BCC call for funding improvements: We are always in
this mode.
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Budget and Financial Update
Property Value by Year
8.5% Local
Value
Growth
Billions
$B
$35.0
$30.8
$30.0
$28.3
$24.4
$23.9
$22.9
$23.3 $23.4
$25.0
$26.1
$20.5
$20.0
$18.6
$17.0
$14.3
$15.0
$10.0
$6.9
$8.3
$7.6 $7.8
$9.3
$10.5
$11.8
$15.5
$12.9
$5.0
$0.0
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015E
Source: FBISD Finance & Appraisal District
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FBISD Property Value 2014-15
Total Tax Year 2014 CPTD Value $28.3 Billion
Industrial, 4.9%
Utilities & Other,
3.2%
Commercial,
13.9%
Residential,
78.0%
Source: Texas Comptroller of Public Accounts
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State Revenue Estimate-Early Thoughts
New Comptroller Hegar presented initial revenue estimate on
January 12
 The estimate can be modified at any time
General revenue above current biennium spending levels of
about $18 billion
Increased property value provides effective new revenue
Estimated price of crude oil ($58.44/BBL - Brent) may influence
revisions—average in BRE of $64.50 & $69.27 in 2016 & 2017
© 2015 Moak Casey and Associates
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State Revenue Estimate
 Sales Tax biennial growth 8.9%
 2014-15 biennium growth estimated at 12.1%
 Other Major Tax Revenue
 Natural gas tax down:
-8%
 Oil tax down:
-14.3%
 Motor vehicle sales up:
+14.6%
 Franchise tax down:
-1.6%
 Property Values (Combs projection)
 8.64% for 2014
 5.71% for 2015
 5.30% for 2016
© 2015 Moak Casey and Associates
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Rainy Day Fund
 Economic Stabilization Fund (Rainy Day Fund)
 Allocation may be superseded by 2/3 vote in each house
 Estimated balance of $8.5 billion ending the current
biennium
 Projected $11 billion balance at end of 2017, after
transfers to transportation
© 2015 Moak Casey and Associates
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State Revenue Sources
2014-15 Biennium
Severance Taxes
4.6%
Franchise Tax
4.5%
Motor Vehicle Sales
and Rental Taxes
3.9%
Motor Fuel
3.1%
Other
Taxes
5.1%
Federal Funds
35.5%
Other Receipts
16.0%
Interest and Investments
1.0%
Sales Taxes
26.2%
Source: LBB & FBISD Finance
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State Appropriations – All Funds
Public Safety/Criminal
Justice
5.8%
The Judiciary
.4%
Natural Resources
3.4%
Regulatory
.6%
Business & Econ Dvlp /
Transportation
13.1%
The Legislature
.2%
Agencies of Education
37.0%
General Provisions
.2%
General Government
2.4%
Health and Human Services
36.9%
Source: LBB & FBISD Finance
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Reaction to Proposed State Budgets
Appropriations for schools would have declined from current
biennium due to property value growth
Not a good position when arguing the state’s case in Supreme
Court
Continues state’s reliance on property tax to fuel the education
funding structure
Significant formula improvement without increased state cost is
a re-run of 2013, just cheaper
Still quite a bit of room under the spending limit, and lots of
money available
© 2015 Moak Casey and Associates
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Factors that influence State Revenue
 Enrollment
 Average Daily Attendance (ADA)
 Special Services / Weights (WADA)
 Property Values
 Free and Reduced Percentages





Prior Year Comptroller Values
Central Appraisal Dist. Values
ARB – Appraisal Review Board
Collection Rate
Frozen Values
 Special Education population
 Career & Technology teacher utilization
Source: FBISD Finance
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Budget and Financial Update
Average Student Enrollment
72,317
Projected
(0.19% diff)
75,000
73,082
73,000
72,183
70,857
71,000
69,000
67,780
68,507
69,066 68,710 68,964 69,588
66,792
67,000
65,927
65,000
62,657
63,000
61,000
61,011
59,000
57,000
55,000
2004
2006
2008
2010
Source: FBISD Finance & District Demographer Earliest Estimates/Least Likely Scenario
2012
2014
2016E
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Budget and Financial Update
General Fund Revenue Sources
Projected
60%
55.3%
54.4%
50%
43.2%
54.1%
52.7%
44.4%
45.7%
44.6%
Local
40%
State
30%
Federal
20%
10%
1.6%
1.2%
1.5%
1.3%
0%
2011-12
Source: FBISD Finance
2012-13
2013-14
2014-15
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Budget and Financial Update
Timing of Budget Development
• Essential Campus & Non-Campus Staffing Requests
Phase 1 • February
• Other Staffing Changes Based on Staffing Guidelines
Phase 2 • March
• Compensation & Other Requests Based on Session
Phase 3 • May/June
Source: FBISD Finance
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Budget and Financial Update
2015-16 Initial Position Request Summary
Classification
FTEs
Salary
Elementary 46
12
$638,432
Career and Technical Education
32
$2,024,000
Departments
10
$740,102
Non-General Funded Positions
11
$924,279
Total Position Requests
64
$4,326,813
Source: FBISD Finance
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Budget Committees
Collaborative Budget Process
 Budget & Compensation Committee
Nominated delegates
Participation from all campuses and departments
Document ideas and set priorities
 Principals & Directors
 Teacher Forum
 Benefits Committee
Source: FBISD Finance
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Critical Dates
February 16
Consider Approval of Critical Staffing Recommendations
Regular Board Meeting
March 23
Review of Compensation and Additional Staffing Changes
Board Workshop
March 30
Consider Approval of Additional Staffing Recommendations
Regular Board Meeting
April 13
Board Workshop
Source: FBISD Finance
Budget and Legislative Update; Review Contract
Recommendations; Initial Discussion on Non-staffing
Enhancements; Debt Service Update
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Critical Dates
April 20
Consider Approval of Contract Recommendations (Renewals, Non-
Regular Board Meeting
Renewals, Terminations)
May 11
Discussion of Additional Staffing, Compensation, Non-Staffing
Enhancements; Action to Call Meeting for the Purpose of
Discussing the Proposed Tax Rate and Adoption of the 2015/2016
Budget
Board Workshop
May 18
Regular Board Meeting
Consider Approval of Additional Staffing, Compensation, NonStaffing Enhancements; Review Proposed Budget
June 1
Board Workshop
June 15
Regular Board Meeting
Source: FBISD Finance
Public Hearing on Budget and Proposed Tax Rate
Budget Adoption
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Do we need this slide???
Questions???
State Funding Elements
Total Cost of Tier I
Less: Local Fund Assignment
State Share of Tier I
Tier II and Other Programs
TRS on behalf
Total 2013-14 State Allocation
Source: FBISD Finance
Projected
2013-14 Budget
$449,710,824
($240,390,472)
$209,320,352
$12,848,237
$22,100,000
$244,268,589
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