Agenda Item
Meeting Date: 5/16/2017 - 7:00 PM
Category: ITEMS OF BUSINESS
Type: Info
Subject: 1. Public Hearing on the Superintendent's Proposed 2017-2018 Budget
Strategic Plan Compatibility Statement:
Goal 1
Academic Achievement
Goal 2
Student, Family and Community Engagement
Goal 3
Effective and Efficient Operations
Policy: Admin Policy 3.01 - Annual Operating Budget
Attachments: Attachment (0) 2017-2018 Superintendent's Proposed Budget Transmittal Letter
Attachment (i) Table of Contents
Attachment (1) Budget-In-Brief
Attachment (1A) Budget-in-Brief (Spanish)
Attachment (2) Organizational Section
Attachment (3) Financial Section
Attachment (3A) Schools
Attachment (3B) Central Services
Attachment (3C) Line Items
Attachment (4) Informational Section
File Attachment:
Attachment (0) 2017–18 Superintendent's Proposed Budget Transmittal Letter.pdf
Attachment (i) Table of Contents.pdf
Attachment (1) Budget-In-Brief.pdf
Attachment (1A) Budget-In-Brief Spanish Version.pdf
Attachment (2) Organizational Section.pdf
Attachment (3) Financial Section.pdf
Attachment (3A) Schools.pdf
Attachment (3B) Central Services.pdf
Attachment (3C) Line Items.pdf
Attachment (4) Informational Section.pdf
Background: The District’s financial planning and budget development is a year-round process which is kicked off in August and continues through the following June for the next fiscal year. The process is guided by the MPS Strategic Plan and the Board of School Directors’ and Superintendent’s unwavering focus on students and schools at the core of our spending.

The budget documents and the spending plans herein have been developed by hundreds of stakeholders: community members, business partners, MPS families, grant coordinators, school and district staff, etc. Their insights over the budget-development time period, coupled with significant internal deliberation and debate on the most prudent investment of resources, result in a budget aligned to our Strategic Plan and the District’s priorities.

Taxpayers deserve to have input into and to know how we are spending tax dollars in support of students and schools. It is incumbent upon the District to spend those dollars responsibly, which means that we must be deliberate and organized in doing so. Accessing stakeholders’ feedback and aligning budget to strategy ensures that we are responsive, prioritized, and refined in our approach to spending.

MPS takes its mission seriously; however, we are constrained in its execution. Current revenues do not keep pace with the cost of the resources that our students deserve. It is more important than ever for us to prioritize our spending toward the outcomes which we have collectively identified as critical, using the voices of our stakeholders and our strategic road map to determine where and how we spend public dollars in service of students.
Fiscal Impact Statement: The proposed budget for July 1, 2017, through June 30, 2018, is balanced. A balanced budget is one in which authorized expenditures for the School Operations Fund match the projected revenues. Specific financial strategies and plans to support the Board of School Directors’ goals and objectives are described in the attachments to this item.

The proposed 2017-18 budget reflects an overall reduction in spending of $21.0 million, or 1.8%, from the 2016-2017 budget. The reduction reflects the fact that the 2016-17 budget included borrowing in the Construction Fund which is not included in the proposed budget for 2017-18. Projected revenues in the general operations budget are virtually unchanged at a 0.3% increase over 2016-17.

Stable revenues are not enough to sustain the District’s operations as they are today--modest inflationary pressures require growing revenues. The District also faces more significant inflationary pressure in medical costs and other employee benefits. Planning for 2017-18 has required careful reductions and reorganizational efforts to effectively support the Strategic Plan while maintaining the fiscal health of the District.

The total proposed budget--which includes grant funding and funding for Milwaukee Recreation---is $1,176,129,642, down from $1,197,098,961 in 2016-2017.
Implementation and Assessment Plan During the month of May, the Milwaukee Board of School Directors will hold hearings to discuss and review the proposed budget. The Board will take public testimony from stakeholders and hear from the Administration on the proposed budget. The Board is scheduled to adopt the Superintendent's proposed 2017-18 budget at its regular monthly meeting on May 25, 2017.
Recommendation:
Approvals:
Recommended By:
Signed By:
Shannon Gordon - Senior Director
Signed By:
Dr. Darienne Driver - Superintendent