In my experiences as a superintendent, I have come to believe that where a district puts its money, speaks volumes about what it values—this is why I take the budgeting process so seriously. I spend a great deal of time getting very hands-on and really knowing where we are going to spend our tax dollars.
Today, the Atlanta Board of Education approved the tentative FY16 General Fund budget for Atlanta Public Schools, and I thought I would update you. With our budget, we are positioning the district for a new direction— a new direction to increase instructional quality and efficiency to assure successful achievement of our vision and mission.
I want to assure you that we are taking deliberate steps to make certain that not only do we have a balanced budget, but a strategic and more efficient one that drives us to higher student outcomes. Quality budgeting means that the Board members, administrative leadership and I take the appropriate time and steps to work through the finances … even spending our weekends to do it.
The district faces considerable challenges as we restore the organizational integrity of Atlanta Public Schools, employ best practices and position our school district structurally, strategically and financially for the future.
As we embark on the FY16 budget process – in preparation for a new operating model – we find ourselves in a position where we are facing demands for mandatory expenditures that exceed the increase in available resources.
For a quick summary, the Board is working with a planned FY16 General Fund budget of $682.8 million, a little more than a $25 million increase over this year’s fiscal budget of $657.6 million. But, as we begin the process, we have about $31 million in additional required increases for special education, pension funding and teacher retirement contributions as well as increased enrollment in our APS charter schools and a decline in other APS schools.
Last fall, the Board approved parameters for the FY16 budget that directed us to focus on such areas as achieving equitable distribution of resources, funding pension obligations and prioritizing special education and achievement in math and literacy. In addition, as we transition to the new operating model, we have committed to pushing more discretionary money to the school level to increase flexibility and engagement.
As a result, we are forced to make tough decisions in the coming weeks as we tighten our budgets and make strategic investments.
To that end, we are examining ways to achieve a balanced budget while making the necessary decisions to ensure that Board priorities are supported.
As tight as the FY16 budget will be, I am hopeful that we can find additional dollars to push more and more of our available dollars closer to the classroom and to our students.
We have already reduced central administration overhead with a plan that cuts Central Office positions by nearly 10 percent and redirects approximately $5 million to flexible spending at the school-level. And, we will continue to look for opportunities to find efficiencies at all levels in the organization to further reduce overhead costs for the school district.
Furthermore, we will examine other reductions as necessary with the assumption that we do not, at this time, have additional revenues. However, the budget approval process is an evolving one, and constraints may change as we progress and as the Board considers options such as changing the millage rate, using the district’s fund balance and other financial resources due to us, and exploring new creative solutions for long standing challenges such as the pension.
In preparation for FY16, we also have found ways to maximize resources in other budgets.
For example, the Board and I responded directly to the community’s considerable feedback when we reviewed SPLOST dollars and reprioritized $39 million to immediately address ineffective heating and air conditioning systems in schools.
We have been taking advantage of extended carryover federal dollars from Race to the Top and Title I that will serve as down payments for programs and initiatives during FY16, thanks to the insightful feedback of the principal advisory committee and help from the Georgia State Department of Education.
We created a new Office of Partnerships and Development to leverage our business community and philanthropic relationships to explore creative ways to bring in new revenue sources.
As the budget process moves forward, we will do our part to keep the public up-to-date. I invite you to stay informed through budget community meetings or by following budget developments on the APS budget website.
For me, after almost one school year, I am starting to feel the build-up of great things for our district. We are laying the groundwork that we need to improve quality and increase efficiency. Now we need the support of the Board and the community to right size the district and prepare for the new direction.