PURPOSE OF PRESENTATION:  Staff seeks approval of the FY 2018 Operating Budget.

BACKGROUND/SUMMARY: The Board of Education (BOE) Operating Budget, totaling $578,515,531 is comprised of the Unrestricted Budget of $511,431,485 and the Restricted Budget of $67,084,046. This Board item includes three attachments: (A) the Sources of Funds for the Operating Budget, (B) the Operating Budget Appropriations by Maryland State Department of Education (MSDE) Categories and (C) the FY 2018 Detailed List of Expenditure Adjustments.

The FY 2018 Operating Budget reflects $10.0 million above Maintenance of Effort (MOE) funding from the Frederick County Government (FCG). The County Council approved its operating budget and associated appropriation to the Board of Education on May 16, 2017.

The unrestricted revenues also include a net increase of approximately $7.5 million from the state government. The state funding includes increases due to overall enrollment as well as Limited English Proficiency enrollment.

The FY 2018 unrestricted expenditures of $511,431,485 are $24.5 million more than the approved FY 2017 unrestricted expenditures. This increase is attributable mainly to the staffing increases due to projected enrollment and the salary resource pool which allows for the second year of the teacher salary scale transition and the proportionate change to the other employee salary scales.  The chart below outlines the major adjustments in unrestricted expenditures:

The Restricted portion of the operating budget decreased $1,870,240 from FY 2017. The

changes to the restricted projects are noted below:

The first two attachments, the Sources of Funds and MSDE Expenditure Categories, are the documents

that require BOE approval. The third attachment is the detailed working file for which the Board has been

working from throughout the budget cycle. 

PRESENTER(S) & TITLE(S): Leslie Pellegrino, Chief Financial Officer

SUBMITTED BY:  Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION:  Staff seeks approval of the Fiscal Year 2018 Capital Budget.

BACKGROUND/SUMMARY:  The Frederick County Council has approved the County’s Capital Budget for FY 2018.  The budget includes construction funds for Sugarloaf and Butterfly Ridge Elementary Schools, as well as funding for the design of the Urbana Elementary School replacement and the Rock Creek School replacement projects and the feasibility study for the addition/renovation of Waverley Elementary School.  Funding is also included for fifteen (15) systemic renovation projects. 

The Capital Budget is recommended at a total of $87,260,605. This is comprised of state and local funding, as well as state funds from the Qualified Zone Academy Bond.  The projects listed in the attached budget summary are part of the comprehensive six-year plan that is updated annually.

PRESENTER(S) & TITLE(S):  

Heather Jo Clabaugh, Budget Officer

SUBMITTED BY: 

Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION: Staff seeks approval of the Fiscal Year 2018 Food and Nutrition Services Operating Budget

BACKGROUND/SUMMARY: The proposed FY 2018 Food and Nutrition Services Operating Budget is $12,378,215. The revenues are $779,636 more than the FY 2017 budgeted revenues of $11,598,579. This proposed budget includes a $.10 increase for the price of a paid school lunch. Changes from the budgeted FY 2017 revenues include an estimated 2.5% increase in federal reimbursements.

The recommended expenditures are $12,378,215, which is $779,636 more than the budgeted expenditures for FY 2017 of $11,598,579. Changes from the budgeted FY 2017 expenditures include an increase for the salary resource pool, an increase for purchased food, and an increase in equipment.

The Food and Nutrition Services Fund’s current fund balance is approximately $2.4 million.

PRESENTER(S) & TITLE(S):

Heather Clabaugh, Budget Officer

SUBMITTED BY: 

Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION:  Staff seeks approval of the Fiscal Year 2018 Self-Insurance Operating Budget.

BACKGROUND/SUMMARY:  The proposed FY 2018 Self-Insurance Operating Budget is $103,005,163. The budget is $5,965,388 or 6.1% over the approved FY 2017 budget. The proposed budget includes no premium increases.

The recommended expenditures are $103,005,163, which is $5,965,388 more than the budgeted expenditures for FY 2017 of $97,039,775. Increased expenses of $1,637,875 represents a one-time contribution to OPEB for $1,000,000 and a one-time contribution to the Unrestricted Operating Budget of $637,875 to cover the insurance costs for an estimated 150 new retirees. Other expense increases include $1.2M to cover the insurance cost for new employees, $.7M for mandated plan design changes, and $1M for non-mandated plan design enhancements and additional budgeted funds allocated to the wellness program.  To balance the FY 2018 Self-Insurance Fund budget, $2.2M of the fund balance reserve will be utilized.

PRESENTER(S) & TITLE(S):

Heather Clabaugh, Budget Officer

SUBMITTED BY: 

Leslie Pellegrino, Chief Financial Officer

In accordance with Maryland’s Open Meetings Act, General Provisions Article § 3-305(b), (9), the Board will meet in Closed Session at 9:40 a.m. in Conference Room 1A to consider matters that relates to negotiations with the Frederick County Administrative and Supervisory Association (FCASA) and the Frederick Association of School Support Employees (FASSE).