BPS External Funds Hearing Overview-May 4, 2015

FY16 Budget Recommendation
External Funds
DRAFT
City Council Budget Hearing
May 4, 2015
1
External Funds
FY16 External Funds

External funds are both a cause and a solution to our structural
imbalance

Reductions grant funding put pressure on the general fund where
the reduction in funding would harm an essential program or
service

The food services program has required a subsidy from the
general fund for many years, where in most districts, the program
operates within the funds generated from federal reimbursement

Private funding (through the Boston Educational Development
Fund or “BEDF”) and partnerships provide additional resources
2
External Funds
FY16 External Funds

FY16 grant funding projections total $119.7M, which represents a
decrease of $15.1M or 11.2% over the FY15 external funds total of
$134.8M.

Decreases are largely due to historical downward trends in big
entitlement grants like Title I, II, III, IDEA, and Perkins.

Decreases are also due to the end of the Investing in
Innovation (I3) grant and the loss of the Title I carry forward
from FY14 used in FY15.

Food Services is making adjustments to reduce costs to within
expected revenue

We are expecting an increase in resources through BEDF in FY16

We are leveraging 3 times the funding paid to partners in services
provided to BPS students by those partners
3
External Funds
Agenda
1. Grant Funding
2. Food and Nutrition Services
3. Boston Educational Development Foundation
(BEDF)
4. Partnerships
4
Grants
$328k
$32k
$71k
$21M
$25k
$21M
$23M
$22M
$124M
$123M
$111M
$94M
5
Grants
Grant Funding Changes
Grant Source
Funding
Change: 20132014
Funding
Change: 20142015
Projected
Change: 20152016
Federal
-0.50%
-10%
-15%
State
0.40%
10%
-3%
Other
-90%
121%
-65%
6
Grants
FY16 Projected Grant Fund Losses
Grant
Reduction
Comments
Title I carry-forward
-$9M
Grant ends
Title I
-$3.2M
Continued 10% loss
Investing in
Innovation (I3)
-$1M
Grant ends
Title II
-$288K
Assume 5% loss
IDEA
-$544K
Continued 3% loss
Title III
-$196K
Assume same FY14 9% loss
Perkins
-$118K
Assume same FY15 9% loss
Other
-$800k
Reduction across other
grants
Total
-$15.1M
7
Grants
Title I Changes/Impacts
External: Anticipated change due to ESEA reauthorization:
Title I funding is up for reauthorization this year and is currently moving to the
Senate floor. The amendment seeks to change the Title I funding formula
and the result of this would be a dilution of these scarce federal funds
starting in FY17; and the inability of the district and individual schools to
provide programs of sufficient size and scope to produce results.
Internal: Change in how Poverty is calculated:
For the 2013-2014 school year, Massachusetts began participating in the
Community Eligibility Option (CEO), which allows schools to provide meal
service to all students at no charge, regardless of economic status. As a
result, household applications that have generally been used to determine
eligibility for free and reduced lunch prices are no longer being collected.
This change meant that for FY16 BPS needed a new method for calculating
poverty for allocating both Title I and WSF dollars.
8
Grants
FY15 Title I Carry Forward
Title I and Title II-A grants are able to access a multi-year feature to extend the life of
the grants into the next fiscal year. Funds from Year 1 can be shifted into year 2 and
spent on Title eligible activities.
BPS takes advantage of this availability by using carry forward dollars to leverage
turnaround efforts with our most critical activities. This is a one-time source of revenue
based on an evaluation of the use of funding in the current year and a determination
that funds could be best utilized by targeting specific activities in year 2.
We evaluate our programs and activities every year and shift funding to achieve
district goals and priorities.
Grant
Reduction
Title I carry-forward
$8,886,682
Comments
-$2,787,419
Extended time at Level 3 and 4 schools
-$4,267,637
Strategic partners (ie City Year, BELL)
-$1,400,000
Acceleration Academies
-$431,626
Unplanned liabilities
9
External Funds
Agenda
1. Grant Funding
2. Food and Nutrition Services
3. Boston Educational Development Foundation
(BEDF)
4. Partnerships
10
Food Services
Statement of Revenue and Expenses
•
•
FY10
FY11
FY12
FY13
FY14
*FY15
Total Expenses
$27 M
$28 M
$31 M
$33 M
$36 M
$38 M
Revenues
$26 M
$26 M
$29 M
$29 M
$34 M
$36 M
Net Profit (loss)
- $1.4M
- $2.0M
- $1.7M
- $4.1M
- $1.7M
-$2.0M
As of end of March, 2015
Only includes the main grants which are the part of NSLP (National school lunch program which
include lunch & breakfast)
Food Services
Finance Overview
Budget FY15 Projected
Grant
Total
Type of Grant
Source of Funding
School Lunch
$36 M
Reimbursement
Funded from Federal & State
Reimbursement based off of meals served
Summer Food Program
$1.2 M
Reimbursement
Funded from Federal & State
Reimbursement based off of meals served
Fresh Fruit &
Vegetable Program
$800 K
Competitive
Agreement between USDA and Food &
Nutrition Services to source more foods
locally
Summer Meals
Expansion
$66 K
Competitive
State Funded
Summer Start Up
$20 K
Competitive
State Funded
FNS Grants
$38.3 M
FY15 Staffing
Total Staff = 528
• Central Office Staff = 33 School Based Staff = 495
• Diversity: 42% Black, 37% Hispanic, 18% White, 1% other
FY15 Reimbursement rates
Breakfast - $2.03 Lunch - $3.12
Food Services
Adjustments for FY16 Budget
 The Budget for FNS for FY16 is $38 M with a reduction of $4M
in expenses from the FY16 baseline
 Increase use of USDA Food (commodities)~ $1M
 Realign staffing model by ensuring equitable and efficient
allocation of food service workers across all sites and a total
re-organization of the FNS central office ~$2.1M
 Align offerings to decrease food waste, and to improve
operations while providing quality, healthy menu choices
that kids like ~ $300K
 Administrative efficiencies and reduction in non food costs
~$600K
13
External Funds
Agenda
1. Grant Funding
2. Food and Nutrition Services
3. Boston Educational Development Foundation
(BEDF)
4. Partnerships
14
BEDF
Recent Organization Improvement and Reforms
Operations
• Passed 2% Indirect Policy to balance operational budget
• Reduced Accounts Payable and Accounts Receivable processing time
to a 5-7 business day turnaround time
• Implemented new payment forms and payroll procedures
Governance
• Revised bylaws to transition Board of Directors to a controlling
majority of non-BPS employees
• Recruited new Board of Directors
• Purchased Board of Directors Insurance
Administrative
• Hired a permanent Director of Finance and Administration and
appointed Acting Executive Director
• Created employee benefits package and BEDF conditions of
employment
• Purchased General Liability Insurance
Marketing &
Communications
• Created new BEDF Logo
• Developed and launched new BEDF website and marketing
materials
• Created and distributed quarterly BEDF Bulletin Newsletter
15
BEDF
BEDF Income Statements FY2014-FY2016
Private External Funds- BEDF (as of 03/31/15)
Source/ FY
2014
2015 YTD
2015 EOY
2016 (budge t)
(Es tim ate )
REVENUE
Contributions and s upport $6,630,706
Governm ent contracts
$175,838
and awards
United Way
Other reim burs em ents
and charges for
s ervices
Facilities us e revenues
Inves tm ent incom e
Indirect rate charge
Total
$2,485,341
$120,184
$33,734
-
$7,039,220
$8,500,000
$9,300,000
$380,780
$395,000
$385,000
180,000
$187,000
$60,000
$1,300,000
$2,000,000
$1,200,000
$35,256
144,345
-
-
$45,000
$65,000
$165,000
$190,000
$9,445,803
$8,979,601
$10,592,000
$12,000,000
$9,340,156
$8,443,576
$10,500,000
$11,500,000
$233,563
$167,616
$212,000
$478,850
$9,573,719
$8,611,192
$10,712,000
$11,978,850
-$127,916
$368,409
-$120,000
$21,150
16
EXPENSES
Program Services
Support s ervices
Total
Surplus (deficit)
External Funds
Agenda
1. Grant Funding
2. Food and Nutrition Services
3. Boston Educational Development Foundation
(BEDF)
4. Partnerships
17
Partnerships
Partner Organizations Leverage BPS
Investment at 3:1 Ratio
$30,000,000
$27,901,702
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$9,751,280
$5,000,000
$0
District
Contibution
Partner
Contribution
$169,000
$441,000
Network
Contribution
School
Contributions
18
Partnerships
Partner’s Collective Impact & Return on Investment
School Quality Domain
Outcome
Metric(s)
Student Performance
Increase academic
growth in ELA and/or
math

Increase Student
Engagement
Family, Community and
Culture
Indicator
ELA and Math median Student
Growth Percentile &
Academic Performance Levels

MCAS

PARCC

DIBELS

Student answers to questions
about engagement

BPS Student Climate Survey
School attendance

Average daily attendance records

Program Attendance and
Retention


Program attendance/retention
records
Family, Community and
Culture
Increase Student
Initiative

Student answers to questions
about initiative

BPS Student Climate Survey
Family, Community and
Culture
Improve relationships
with peers

Student answers to questions
about relationships with peers

BPS Student Climate Survey
Family, Community and
Culture
Improve school
climate

Student, teacher, and parent
questions about school
climate

BPS Student, Parent, and Teacher
Climate Survey
Student Access and
Opportunities
Increase Access to
High Program Quality

Student enrollment in
programs

Partnership Registration Portal
APT program quality score


Assessment of Program Practices
(APT)
19