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.

4 thoughts on “2017-18 Budget Development

  1. Christine Layton Reply

    What’s supposed to be the “take away” message from the graphic? I’m a professional evaluation researcher. I’ve seen countless numbers of graphs, pie charts, etc. I know how they’re supposed to work. No idea what the point of the pie chart (above) is supposed to be. This website is trying to inform the public about very important issues. PLEASE assure that the information presented is understandable!

  2. Mary E Paugh Fleming Reply

    You know, there is something I do not understand. Years ago we got the lottery that was suppose to support roads and education. The only thing I saw that it was used for was a new stadium. Then we got gambling which part of the profits was to suppose to support education. Where is that money going? It is the Finance Department of Baltimore City Schools and our state which is suppose to disperse these funds to education. We hear profits received by the Lottery and Gambling. But I don’t hear where the money goes. Some kids go to schools that are deplorable. They do not have air conditioning in the summer forcing the schools, even the ones that have air conditioning, to close. There is violence in our schools and Baltimore is supposed to be a number one city for tourism. Our schools are tainting the image of our city. Come on government, do what you were suppose to do in the first place and we wouldn’t have any budget shortfalls. The promise of the profits from these two programs should have went to schools, but that was just a catch to get people to vote for Lottery and Gambling.

  3. B'More Thoughtful Reply

    21st Century buildings: Find new revenue source (local bag tax, State marijuana tax, integrate into new Kirwan funding formula), and/or develop statewide plan for capital planning and grant disbursement to schools relative to county wealth. For the next TIF or pilot project, which does benefit the City economically, negotiate school capital funding specifically into the deal.

    Revenue: Kirwan Commission needs to provide the fix here via the State Aid funding formula.

    Transportation: Renegotiate contracts; discontinue use of taxi rides. Piggyback on shared fleet contracts w/ other districts or municipalities.

    Increasing benefits: Increase cost share for employee healthcare premiums. Discontinue cadillac/high option health plans; phase in standard option plans. Require phased-in pension contribution for all employees.

    Increasing salaries: Decrease workforce slightly through attrition and small school merging. Discontinue or reevaluate pathways model. Renegotiate with unions.

    Few vacancies: Revise budget planning model to reflect this structural gap; plan for actual vacancy savings vs. historical.

    Other: Leverage private funding for green school incentives to save on energy costs. Merge small schools to save on costs of under utilization. Renegotiate big contracts to find savings. Outsource where there are savings and better service.

  4. Anonymous Reply

    I’m struggling to understand this graphic. How is this calculated and what does it mean? Is this anticipated budget that was set in prior years, and now with the expected revenue, this is how the cuts will shake out? There are also asterisks that don’t correlate with any chart. The chart also states FY16 to FY18, is that accurate?

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