Update on 2013 14 Finances 2014 2015 Budget

Update on 2013 -14 Finances & 2014 -2015 Budget Process March 17, 2014

2014 -15 BUDGET ASSUMPTIONS Ø 7. 0% Assessed Value Growth Ø Enrollment Growth of 1, 460 Students - 2. 1% Ø TRS Supplement (one-time) $4. 6 M ONGOING REVENUE ASSUMPTIONS Ø 7. 0% Assessed Value Growth Ø Enrollment - PASA “most likely” estimate (1. 8 to 2. 0%) Ø 2. 0% to 3. 0% Growth for Other Income Ø No new State revenue Source: FBISD Finance 2

Annual Growth/(Decline) Net Assessed Property Value 1994 - 2014 15. 0% 13. 0% 11. 0% 9. 0% 7. 0% 5. 0% 3. 0% 1. 0% -3. 0% 19 94 19 96 Source: FBISD Finance 19 98 20 00 20 02 20 04 20 06 20 08 20 1 0 20 1 2 20 14 E 3

Average Student Enrollment 75, 000 72, 317 70, 857 70, 000 67, 780 65, 927 68, 507 69, 588 69, 066 68, 710 68, 964 66, 792 65, 000 62, 657 61, 011 60, 000 59, 217 55, 000 2003 2005 Source: FBISD Finance & District Demographer 2007 2009 2011 2013 2015 E 4

Average Student Enrollment 80, 000 75, 066 75, 000 76, 482 73, 708 72, 317 70, 857 70, 000 68, 507 69, 066 68, 710 68, 964 2010 2011 2012 69, 588 65, 000 60, 000 55, 000 2009 Source: FBISD Finance & District Demographer 2013 2014 2015 2016 2017 2018 5

Revenue by Source: FBISD Finance Preliminary 6

2014 -15 EXPENDITURE ASSUMPTIONS Ø 73 Teachers for Enrollment Growth - $4. 2 M Ø New TRS Supplement (ongoing) - $5. 0 M Ø 3% Increase in Non-Staff Expenses - $2. 0 M Ø No Other Investments Shown at This Time ONGOING EXPENDITURE ASSUMPTIONS Ø 2% Increase in Payroll (combination new teachers and salary increases) Ø 2% Increase in Non-Staff Expenses Ø Administration will Manage with Goal of Balanced Budgets Source: FBISD Finance 7

Expenditures by Object Code Source: FBISD Finance Preliminary 8

Funds Available Source: FBISD Finance Preliminary 9

State Peers ØCypress-Fairbanks ØNorthside ØNorth East ØKaty ØPlano ØConroe ØLewisville ØKlein ØRound Rock State Peers Parameters: 2013 Enrollment = 45, 000 - 109, 000 EDS% = 27. 5% - 53. 5% Fort Bend ISD 2013: Enrollment = 69, 123 EDS% = 38. 6% EDS = Economically Disadvantaged Students 10

FBISD Teacher Turnover 18. 0 17. 0 16. 0 15. 0 16. 0 14. 7 15. 4 15. 3 14. 0 13. 7 14. 0 13. 0 12. 6 12. 0 10. 8 11. 0 11. 3 10. 0 9. 0 8. 0 2004 2005 Source: FBISD Finance 2006 2007 2008 2009 2010 2011 2012 2013 Student/Teacher 11

Teacher Turnover 2013 State Peers 14. 0 13. 5 13. 2 13. 0 12. 5 12. 0 12. 1 11. 9 11. 1 10. 8 11. 0 12. 6 11. 1 Be nd rt d un Fo Ro ck ei n Kl Ro Le w isv ille oe nr Co o an Pl th No r Source: FBISD Finance Ka ty Ea st e sid rth No Cy - Fa ir 10. 0 12

FBISD Teacher Experience Over 20 Years Experience, 15. 8% Beginning, 3. 8% 1 -5 Years Experience, 23. 8% 11 -20 Years Experience, 29. 2% Source: FBISD Finance 6 -10 Years Experience, 27. 4% 13

FBISD Teacher Turnover 21 to 25 years 3% 16 to 20 years 4% 25+ years 4% Teacher Turnover 11 to 15 (years) 12% 6 to 10 years 25% Source: FBISD Finance 0 to 5 years 52% 14

2013 -2014 Teacher Pay 64, 000 62, 000 60, 000 58, 000 56, 000 Katy ISD 54, 000 Lamar CISD 52, 000 Cy-fair ISD 50, 000 Fort Bend ISD 48, 000 46, 000 0 3 6 Source: FBISD Finance & District Websites 9 12 15 18 21 24 15

2013 -14 Compensation Issues Ø Low Teacher Pay Compared to Peers Ø High Teacher Turnover Compared to Peers Ø Equity Issues Not Addressed By TASB Study Ø Stipend Recommendations Not Implemented Source: FBISD Finance 16

2014 -15 Proposed Teacher Pay Scale & General Increase Ø $50, 000 Starting Pay Ø Percentage Increase Ranges from 4. 0% to 8. 6% (5. 8% avg. ) Ø Salary Increase Ranges from $2, 214 to $4, 147 ($3, 018 avg. ) Ø Teacher Salary Leader through Year 14 on Scale Ø Proposed pay increase of 4% of midpoint for non-teaching employees Ø Cost of $14. 1 M for Teachers & $5. 4 M for Others = $19. 5 M Source: FBISD Finance 17

Proposed 2014 -15 FBISD Teacher Pay 64, 000 62, 000 60, 000 58, 000 56, 000 FBISD 2014 -15 54, 000 52, 000 FBISD 2013 -14 50, 000 48, 000 46, 000 0 3 6 Source: FBISD Finance & District Websites 9 12 15 18 21 24 18

2014 -2015 Teacher Pay Scenarios 64, 000 Katy +3% Lamar +3% Cy-Fair also at $50 K +$2 K on scale (4. 7%) 62, 000 60, 000 58, 000 56, 000 Katy ISD 54, 000 Lamar CISD 52, 000 Cy-fair ISD 50, 000 Fort Bend ISD 48, 000 46, 000 0 3 6 Source: FBISD Finance & District Websites 9 12 15 18 21 24 19

2014 -2015 Teacher Pay Scenarios 64, 000 Katy +4% Lamar +4% Cy-Fair also at $50 K +$2 K on scale (4. 7%) 62, 000 60, 000 58, 000 56, 000 Katy ISD 54, 000 Lamar CISD 52, 000 Cy-fair ISD 50, 000 Fort Bend ISD 48, 000 46, 000 0 3 6 Source: FBISD Finance & District Websites 9 12 15 18 21 24 20

2014 -15 Compensation Ø Approve proposed pay plan by April 7 th Ø Address select compensation issues identified by TASB Ø Consider signing bonuses for campus professionals and hard to fill positions Source: FBISD Finance 21

2014 -15 Budget Committees – Top Priorities Ø Math Specialists at All Campuses Ø Salary Increase (including stipends, equity adjustments) Ø Testing Coordinators/Facilitators Ø Tech Support at All Campuses (Instructional & Troubleshoot) Ø Dedicated Instructional Coaches at All Campuses Ø Special Education Support (ARD Facilitators – campus based) Ø Smaller Classes at All Levels Ø Updated Technology – Hardware (all kinds) & support Ø Library Funding (Aides & Books) Ø Incentives for Working in Low Performing Schools Source: FBISD Finance 22

2014 -15 Budget Calendar – Key Upcoming Dates Ø March 31 – Board Budget Workshop Ø Staffing & Compensation Recommendation Ø April 7 – Special Called Board Meeting Ø Action on Staffing & Compensation Recommendation Source: FBISD Finance 23

Fort Bend Independent School District