To develop the budget each year, City Schools’ finance staff estimate the revenue the district will receive from the state, city, and federal governments and compare that to anticipated expenses for the coming year.
As of late January 2017, the district is looking at a gap of about $130 million in the 2017-18 (FY18) operating budget. This is a much larger gap than the district has faced in recent years at this stage in budget development. Without new or additional revenue, it will be extremely challenging to close.
With deep cuts made to the district office in past years, layoffs and other cuts cannot avoid affecting schools.
Note: Structural drivers are depicted as 2-year cumulative changes in order to benchmark against the last available year of data on actual expenditures;
*Between FY16 and FY18, we estimate a total revenue decrease of $~45M. When we include fund surplus and the FY16 deferral of 21st Century spending,
this nets to ~$25M decrease in revenue
**In FY16-18, fluctuations in other categories of spending net to $3M decrease in overall spending.