Department of Education Budget Blues: An Overview of the Budget Process and Funding

1
Department of EducationBudget BluesAn Overview
of the Budget Process and Funding

• James M. Brese
• Assistant Superintendent and CFO
• November 11, 2009

2
Background
Simplified Budget Overview(Begins summer of
current year, ends June/July of the following
year)
DOE and Public Input (Summer)
Board of Education (Fall)
Governor (Winter)
Legislature (Spring)
Final Budget (Summer)
Governor (Late Spring)
3
Two Types of Budgets

• Operating Budget
• Salaries
• Professional Services and Training
• Inventories
• Supplies and Equipment
• Computer Systems

• Capital Improvement Program (CIP) Budget
• New Schools
• Classroom Buildings
• Building Improvements

4
Capital Improvement Program (CIP) Budget
Prioritization Matrix

• Classroom space is becoming a critical factor in
  supporting growing communities as well as an
  influx of special education and behavioral health
  professionals at the school level.
• Prioritization Process

CIP Budget Appropriated in Act 162/09 239.9
Million
Health and Safety
Classroom Capacity
Program Needs
Support Facility Projects
State / District Improvements
5
Operating Budget ProcessSchool Level

• School budget process must be
• Open
• Democratic
• Collaborative
• (HSTA contract, Memorandum of Understanding)
• Principal prepares school academic/financial plan
• School community council reviews the plan
• Complex Area Superintendent approves the plan
• (Act 221, amending Act 51, Session Laws of Hawaii
  2004
• Section 302A-1124, Hawaii Revised Statutes)

6
School Budget Process Diagram

• School Budget Process
• Open
• Democratic
• Collaborative

Complex Area Superintendent
Principal, Vice Principals
School Community Council
Department Heads, Grade Level Chairs
Faculty, Staff
Community
Parents
Students
7
Total Biennium Operating Budget Reductions
8
Total Biennium Operating Budget Reductions
Data reflects General Funds onlydollars and FTEs
9
Total Biennium Operating Budget Reductions
Information reflects previous BOE decisions
regarding 40.0 Million reduction prior to July
9, 2009 BOE decisions to further reduce the
budget according to the Governors and
Legislatures reductions.
10
Total Biennium Operating Budget Reductions
Information reflects previous BOE decisions
regarding 40.0 Million reduction prior to July
9, 2009 BOE decisions to further reduce the
budget according to the Governors and
Legislatures reductions.
11
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

12
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

13
DOE Budget 1.7 Billion
Assumes 104 Million labor cost reduction is
allocated to all programs
Special Funds, Trust Funds, Interdepartmental
Transfers, and Revolving Funds 89.0 Million, 5
General Funds 1.3 Billion, 74
Federal Funds Ceilings 370.3 Million, 21
Budget Summary by All Means of Financing
14
DOE Budget 1.7 Billion
Assumes 104 Million labor cost reduction is
allocated to all programs
No Fringe Benefits are Included. Removed from
DOE Budget for FY 2009-10. Total Amount 450.0
Million, or 2,600 per student
Salaries 1.169 Billion, 68
Non-Salaries 558.6 Million, 32
Budget Summary by Salaries/Non-Salaries
15
DOE Budget 1.7 Billion
Assumes 104 Million labor cost reduction is
allocated to all programs
Weighted Student Formula (WSF) 36
Federal Funds 15
Special Education (SPED) 12
Other Programs 6
Other SPED Student Support Programs 11
Food Services 5
Student Transportation 3
Other Centrally Expended 6
Facilities (Repairs Maintenance) 3
Utilities 3
16
DOE Budget 1.7 Billion
Assumes 104 Million labor cost reduction is
allocated to all programs
Weighted Student Formula (WSF) 629.7 Million
Federal Funds 252.6 Million
Special Education (SPED) 204.1 Million
Other Programs 107.0 Million
Other SPED Student Support Programs 191.1
Million
Food Services 93.5 Million
Student Transportation 48.8 Million
Facilities (Repairs Maintenance) 47.2 Million
Other Centrally Expended 96.8 Million
Utilities 53.3 Million
17
Weighted Student Formula
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 172,957 students enrolled, approximately
3,641 is averaged per student.
629.7 Million of DOE Budget 36
Expenditures per student are based on SY 2009-10
Official Enrollment Count
18
Other Programs
Separate funding is allocated to ensure that
specific programs are established and supported
for broadened education.

• Athletics (except Directorsnow 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
• Trust Funds (Grants, Donations, Athletics, Olelo)
• Hawaii Content/Performance Standards,
  Restructuring, Curriculum Improvements
• Etc

• At Risk Programs
• Space Education
• Environmental Education
• Summer School
• Driver Education
• Lost Textbooks
• School Health Aides
• A

618 per student
106.9 Million of DOE Budget 6
19
Federal Funds
Title 1 No Child Left Behind Impact
Aid Vocational Education Smaller Grants
1,481 per student
256.2 Million of DOE Budget 15
20
Special Education (SPED)
SPED Requirements at Schools

• Teachers
• Classroom Supplies
• Educational Assistants

Centrally Expended for SPED and Student Support
Programs

• Comprehensive System of Professional Development
• Home/Hospital Instruction
• Early Learning System

• Federal Funds
• Special Olympics
• School Based Behavioral Health
• Services for Children with Autism
• Student Support Services
• Recruitment and Retention Incentive
• Edu. Assessment/Prescriptive Services
• Special Education Database
• Extended School Year
• Etc

21
Special Education (SPED)

• 19,283 special education students enrolled in FY
  2009-10
• 11 of total student enrollment

SPED Requirements at Schools
10,585 per SPED student
Centrally Expended for SPED and Student Support
Programs
9,913 per SPED student
395.3 Million (SPED Combined) 23 of Budget
20,498 per SPED student
22

Other Parts of the DOE Budget
540 per student
484 per student
242 per student
Food Services 93.5 Million 5
282 per student
Student Transportation 48.8 Million 3
Facilities (Repairs Maintenance,
School Inspection, State Administration,
etc.) 57.2 Million 3
Utilities 53.3 Million 3
242 per student
273 per student
308 per student
23
All Other Centralized Expenses
6 of DOE Budget - 96.8 Million
In addition to supporting student achievement,
the remaining 6 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.
560 per student
Per Student
6 Breakdown

• Complex Area Administration
• Office of Curriculum, Instruction, and Student
  Support (Teleschool, Adult Education, Federal
  Funds for Homeless, National Science Foundation,
  NAEP, Etc.)
• Office of Human Resources (Teacher Improvement
  Services, Leadership Development, Etc.)
• Office of Information Technology
• Office of the Superintendent (Systems
  Accountability Testing, Evaluation, Planning,
  Etc.)
• Office of Fiscal Services
• All Other (Board of Education, HTSB, and Art in
  Public Places)

1.1 1.2 1.2 1.2 0.5 0.3 0.2
111 115 122 118 48 25 21
24
Summary
WSF
36
Expended by Principals for Students 69 6,920
per student
Categorical, SPED, Federal
33
Centralized Expenses for Students 25 2,509
per student
94 of Budget
Other Centralized Expenses for Schools 6 560
per student
Expenditures per student are based on SY 2009-10
Official Enrollment Count
25
SummaryBudget Breakdown Per Student
FY 2009-10 172,957 Students Enrolled
Weighted Student Formula 36 3,641 per student
94 of Budget 9,430 Average Per Student
Other Student Funding at Schools 58 5,789
per student
100 of Budget 9,989 Average Per Student
All Other Centralized Expenses at 6 560 per
student Affects Schools, Complex Areas, State
Offices, etc.
26
HSA Results
23 Percentage Points Increase!
27
HSA Results
24 Percentage Points Increase!
28
Questions?
Mahalo for your time!
CONTACT US Department of Education Office of
Fiscal Services 1390 Miller Street, Room
319Honolulu, HI 96813Phone [phone]Fax
808-586-3445 Email james_brese_at_notes.k12.hi.us
Visit our website http//doe.k12.hi.us/