You are here: Home Finance Budget and Strategic Planning Budget Planning for 2017-18

Budget Planning for 2017-18

It looks like APS will be able to avoid furloughs and layoffs this school year.

 

Budget Timeline

In December 2015, a budget committee was formed to seek a 2-3 year solution to address declining enrollment, streamline expenditures and enhance revenues.

In February 2016, APS’ legislative staff communicated that a significant revenue shortfall would occur at the state level, and discussion was presented of a possible “special legislative session” that would occur after July 1, 2016 to address statewide revenue shortfalls that occurred in Fiscal Year 2016.

This additional action was anticipated to reduce funding, that flows to school districts through the State Equalization Guarantee (SEG) Formula, by at least another 1.2%.

With that assumption, the budget committee identified savings within departmental budgets and re-allocated them in the amount of $7.6M to contingency funds to offset the mid-year SEG reduction that was anticipated by APS Budget & Planning Staff, as well as COO Ruben Hendrickson, as the minimum reduction amount required to meet the outcome of the special session.

On May 18, 2016, the Albuquerque Public Schools Board of Education approved the district’s $1.35 billion budget for the current school year. The district used $5M in cash reserves to balance the budget for the 2016-17 school year.

Special Session Actions

September 2016 - $1.9 million
The NM State Legislature met in special session, and actions taken reduced $9.5 million from the APS operational budget. In addition to the $7.6 million aside (noted above), an additional $1.9 million was required.
In order to meet the reductions:

  • Departments were asked to justify needs for the remainder of the fiscal year and offer up all non-salary balances over and above those justified.
  • The substitute budget was reduced based on current year trends.
  • Top administrators took an unpaid holiday (which saved the district approximately $25,000.)

September 2016 - $3.1 million

In addition, the Legislature cut $3.1 million from the APS Transportation and Instructional Materials funds during the special session.

2017 Regular Legislative Session

January 2017 - $12.5 million 
The state Legislature passed Senate Bill 114 on January 25, 2017 to reduce public school cash balances by $46.1 million; APS share is identified at roughly $12.5 million.

Dealing with the Shortfall

Schools have been asked to refrain from purchasing classroom supplies for the time being, which could result in a $2 million savings. Other Proposals at the time of this publication are currently being considered, please see The Ugly Budget for more info.

2016-2017 Budget Documents

The approved budget for this school year (2016-2017) is $1.3 billion. That includes:

  • $698 million in operational funds
  • $350 million in capital funds
  • $82 million from federal, state & local grants
  • $51 million for food services
  • $19 million for transportation
  • $6 million for instructional materials
  • $134 million for debt service

Operational vs. Other Funds

Operational
Day-to-day expenses – everything from employee salaries and benefits to utilities, supplies and maintenance – are paid for with operational funds, 97 percent of which come from the state.

Capital Funds
Voters approve property taxes to pay for new school construction, renovations, repairs and technology. By law, these funds cannot be used to cover operational costs such as teacher salaries and benefits.

Grants
APS receives federal, state, city and private grants that have specified uses. They may be used for salaries and benefits of employees providing those services. Grants usually have an expiration date.

Food Services
APS Food and Nutrition Services, which provides breakfast and lunch for students, is operated under the federally-funded National School Lunch Act and Child Nutrition Act and the National School Breakfast Act.

Transportation
The state provides funding for buses. APS operates most of those buses and also hires contractors to get students to and from school.

Instructional Materials
Each year, the state provides funding for textbooks and other instructional materials.

2016-2017 Approved Budget
Board Approves 2017-18 Budget
The operating budget is about $679 million of the district's total $1.3 billion budget.
Budget Challenges in 2016-17
Budget Overview
Schools vs. Central Services
Budget 2016-17 images
Budget Realities
Budget Calendar
APS Working Cash
APS fronts cash to pay bills, then files claims for reimbursement.
Budget Images
Working Cash 2016-17
Mid-Year Budget Reduction Options
The Ugly Budget
No matter how we slice it, cuts to public education are going to impact students and staff this year and next.
Budget Q&A
The Ugly Budget Part II
An update on mid-year cuts to the 2016-17 budget.
The Ugly Budget, Part III
We are working on a plan that would cut 4 percent from the 2017-18 budget.
The Ugly Budget Part IV
In an effort to keep the public informed, we are posting regular updates on budget planning for the 2017-18 school year.
Supt. Reedy's Budget Update
The superintendent presented the update at the Board of Education meeting on April 19, 2017.
Budget Myths vs. Facts
A message from the Budget Steering Committee.
Errors and Omissions in Journal Editorial
On Thursday, April 20, the Albuquerque Journal ran an editorial about the APS budget and mid-school sports that we felt needed some correcting.
Jobs Affected by Reorganization and Cutbacks
A message from the APS Steering Committee
FY18 Budget Scenario Planning
Updated April 17, 2017
The Ugly Budget Part V
Clearing up distortions and confusion.
Reduced Contracts for Year-Round Employees
Gifted Education
Reserve Fund/Working Cash
Computer Techs and Staffing Changes
Special Board of Education Work Study
Document Actions