THE SCHOOL DISTRICT OF PHILADELPHIA BOARD OF EDUCATION PUBLIC HEARING MEETING AGENDA APRIL 20, 2023; 3:00 PM Call to Order - Reginald L. Streater, Esq., President Roll Call - Lynn Rauch, General Counsel Presentations - Budget Updates, Michael Herbstman, Chief Financial Officer • Fiscal Year 2024 Operating Budget Presentation Registered Speakers • Speaker: Topic: General Speakers List Adjourned
Board of Education Meeting Date: 4/20/2023 ATTACHMENTS: Description Type Fiscal Year 2024 Operating Budget Presentation Supporting Document
1 Tony B. Watlington, Sr. Ed.D. Superintendent Mike Herbstman Chief Financial Officer Fiscal Year 2024 Operating Budget Board of Education Budget Hearing April 20, 2023
2 The Fiscal Year 2024 Budget will focus on three priority areas: Strengthening School Safety ○ Invest in physical, social/ emotional, and environmental safety at schools. ○ Invest in additional staff resources in high-needs schools. Guardrail #1 Partnering with Parents and Community ○ Invest in family and staff resources to increase attendance and reduce dropouts. ○ Invest in a two-way communication system and customer service training. Guardrail #1 and Guardrail #3 Goals #1-#5 Accelerating Academic Achievement ○ Invest in research-based, standards aligned core curricula and high impact tutoring. ○ Invest in increased and equitable CTE and Dual Enrollment opportunities. Guardrail #4 Goal #1, Goal #2, Goal #3 2 Superintendent Fiscal Year 2024 Budget Summary
3 Fiscal Year 2024 Budgeted Revenue and Expenditures (Operating Fund and Federal Recovery Funds) Revenues ($ in Thousands) FY 2023 Projected FY 2024 Projected % Change Local Revenue $1,824,182 $1,863,389 2.1% State Revenue $1,981,548 $2,073,797 4.7% Federal Revenue $16,403 $16,246 (1.0%) Federal Recovery Funds $420,812 $528,400 25.6% Other Financing Sources $13,309 $15,069 13.2% Total Revenues & Other Financing Sources $4,256,253 $4,496,901 5.7% Expenditures ($ in Thousands) FY 2023 Revised Adopted FY 2024 Projected % Change District-Operated Schools $2,241,925 $2,412,203 7.6% Non-District Operated Schools $1,286,205 $1,502,886 19.0% Administration, Debt Service, Undistributed Budget Adjustments and Net Transfers $538,618 $532,391 (1.1%) Total Expenses and Other Financing Sources $4,040,815 $4,444,671 10.0% Note on Non-District Operated School Change ● Rate Setting: Greater than 90% of this FY 2024 increase is driven by changes
in District expenditures between FY 2022 and FY 2023 (as Charter School rates are based on expenditures one year in arrears). ● Federal Recovery Grants: In FY 2023 (compared to FY 2022) the District spent more in federal COVID-19 grants (not included in Charter rate formula) and less in operating funds (included in Charter rate formulas). ● Other Key Factors: Overall District expenditures increased in FY 2023 due to expense associated with negotiated labor contracts, inflation and other areas. 3
4 FY 2024 School Budgets All documents are now available at: www.philasd.org/budget/
5 Partial Hold-Harmless for Declining-Enrollment Schools ● District allocated $6.1 million to help stabilize 25 schools with significant formulaic general operating fund reductions from the prior school year. ● This capped year-over-year general operating reductions at $400,000 for schools projected to lose significant enrollment. ● Principals had considerable discretion over the use of these funds (in alignment with the regular school budget process). $6.1 Million Investment in School Stabilization
6 The Future of the School District A Call to Advocacy Unfair and Inadequate State Funding System ● On February 7, 2023, Commonwealth Court President Judge Cohn Jubelirer ruled that the current system does not adequately or equitably fund schools. ● Judge Cohn Jubelirer called on the Legislature and Executive Branch to appropriately address the issue. ● According to The Education Law Center - PA and the Public Interest Law Center fair funding would require an additional $4,976 per Philadelphia student. 6Source: May 1, 2021, Expert Testimony to the Commonwealth Court from Dr. Matthew Kelly, Professor at Penn State’s College of Education.
7 Operating Budget Documents and Process Budget Detail Reports ● FY 2024 Consolidated Budget Book: Outlines the full revenue and expenditure budget for all funds and delineates budgeted personnel and non-personnel costs for each department. ● FY 2024 School Budget Book: Provides the full position and budget detail at each individual district-managed school. ● Understanding the District’s Budget: Outlines key elements of the budget for the public. Budget Timeline All documents are now available at: www.philasd.org/budget/
Board of Education Meeting Date: 4/20/2023 ATTACHMENTS: Description Type General Speakers List Supporting Document
THE SCHOOL DISTRICT OF PHILADELPHIA BOARD OF EDUCATION BUDGET HEARING SPEAKERS LIST APRIL 20, 2023 Registered Speakers 1. Karel Kilimnik, APPS Topic: Budget 2. Ruqayyah Rashad, Community Member Topic: Yondr as a Certified Vendor in SDP 3. Lisa Haver, APPS Topic: Budget Priorities 4. Claire Wan, Community Member Topic: Tax Abatement Impact on School Budget 5. Krstin Luebbert, District Staff Member Topic: Budget Priorities 6. Mama Gail Clouden, Community Member Topic: Community Engagement 7. Constance Jones, Parent/Guardian Topic: Autism Awareness Protest 8. Kirstin Britt, Community Member Topic: Reopening of Indoor Pools 9. Dawn Chavous, Community Member Topic: Black Led Charter Schools 10. Ngozi Onyenaka, Community Member Topic: Yondr Being Approved as a District Vendor 11. Leah Clouden, Community Member Topic: Community Engagement