FISCAL YEAR 2017-2018 OPERATING BUDGET OVERVIEW

As Proposed to the Board of Education March 14, 2017

AT A GLANCE:
Total proposed operating budget: $902.8 million
Request for an additional $59.5 million over the current fiscal year (represents a 7.1% increase)
to invest in five areas of focus:
Raising the Bar for All Students
Creating Opportunities After High School
Serving the Diverse Needs of Students
Investing in Excellent People
Reinventing Middle Schools
$493 million allocated directly to schools based on student-based budgeting formulas
171.4 additional part-time and full-time positions across the district

HIGHLIGHTS OF BUDGET REQUEST INCREASE

$23 million cost of living and step pay increase for all employees
3% cost of living adjustment to all salary schedules
Step pay increase for eligible employees
Total cost offset by $9.1 million in anticipated savings from normal staff vacancy and turnover
$4.2 million to cover the increased cost of benefits
$18.7 million increase to cover growth in charter school enrollment (1,932 additional students)
One new charter school and expansions of other schools from previously approved
charter agreements
Total cost offset by $7.1 million in savings from reduced student enrollment in district-managed
schools (1,082 fewer students)
$30.3 million in expanded programs and services
Including $12 million for additional staff

HIGHLIGHTS OF ADDITIONAL POSITIONS

100.4 additional school-based staff, including:
English Learner (EL) Teachers to address state-required student-teacher ratios
Advanced Academics Resource Teachers (AART formerly Encore Teachers):
Each elementary and middle school must budget for at least a half-time position for instruction
of gifted and talented students
Literacy Teacher Development Specialists (LTDS): Each school must budget for at least
one full-time position for coaching literacy instruction
Other certificated and support positions
19.5 additional itinerate staff (staff who serve more than one school) including Psychologists,
Speech Pathologists and Instructional Technology Specialists
47.5 additional central staff, including HR, IT, Communications and other various departments

12%

WHERE THE MONEY GOES:

33% 55%

SCHOOL BUDGETS DEPARTMENT BUDGETS CHARTER SCHOOLS

$493 MILLION $298.3 MILLION $111.5 MILLION
STUDENT-BASED BUDGETING

AT A GLANCE:
Student-based budgeting (SBB) increases the equity of funding across schools by allocating dollars
to schools based on the needs of the students they serve.
Through SBB, principals control more than half of the districts operating budget, over $490 million.
Changes this year:
Schools will receive additional funding for students who are economically disadvantaged.
Schools will have to budget for specific roles not previously required, including a full-time Literacy

OVERVIEW
The district is in its third year of full implementation of student-based budgeting (SBB). This is a budgeting
method that moves much of the decision-making power to principals. Each school receives a base funding
amount of $4,425 per student and a higher rate of funding for students who need additional support.

Principals use this budget flexibility to make decisions about staff, supplies and school programs. Department
budgets at the district level cover the cost of essential services like food, transportation, utilities, building
maintenance, district office support such as IT services and more. These services are provided to the schools
centrally and are not be part of individual school budgets.

The funding formula for 2017-2018:

ELEMENTARY MIDDLE HIGH

BASE FUNDING $4,425
GRADE LEVEL* 10% 5%
PRIOR ACADEMIC PERFORMANCE 10% 10% 5%
(POVERTY AS A PROXY ELEMENTARY SCHOOL**)

ENGLISH LANGUAGE LEARNERS 21%

POVERTY 5%
SPECIAL EDUCATION 50% - 725% (depending on individual student needs)

*Students in elementary and middle schools are funded at high rates because lower student-teacher ratios are required by state law.
**There is no prior performance of incoming students to elementary schools so students are instead funded according to economically disadvantaged
status, which closely correlates to academic performance.

CHANGES FOR FY 2017-2018:

A focus group of principals and district leaders are consulted each year to make changes to the SBB model. The
decisions are based on principal feedback and the strategic direction of the district. Changes this year include:
More funding to address the needs of economically-disadvantaged students: Added a 5% poverty weight
for all grade levels, in addition to the prior academic performance weight previously in place.
Continuing incremental movement toward true equitable resource distribution: Increased both the
gains cap and the loss limit, which will be phased out entirely over time.
Principals must provide evidence of parent involvement in the budget development process when
submitting their budget.
Staff requirements:
Schools must budget for one full-time Literacy Teacher Development Specialist.
Elementary and middle schools must budget for at least a part-time Advanced Academic
Resource Teacher.
All schools must budget for one School Finance and Payroll Records Administrator,
which is an upgraded replacement for bookkeeper positions.
All schools must budget at least one art, one music, and one P.E. teacher.
RAISING THE BAR FOR ALL STUDENTS (1 of 2)

AT A GLANCE:
Resources to improve literacy instruction and expand remediation supports
Enhancing formative assessment tools to better guide differentiated instruction
Expanded services for gifted and talented students, including access to honors courses
Total New Investment: $6.2 million

WHY THESE INVESTMENTS?

TRANSITION TEAM FINDING:

FORMATIVE ASSESSMENTS ARE NOT WELL
ALIGNED TO STATE STANDARDS AND ARE
PERCEIVED TO BE OF LOW QUALITY

ONLY 34% ONLY 41%

OF 3RD GRADE OF 8TH GRADE
STUDENTS ARE STUDENTS ARE
PROFICIENT IN PROFICIENT IN 100 DAY REPORT FINDING:
ENGLISH LANGUAGE ENGLISH LANGUAGE ENSURE OUR NON-MAGNET SCHOOLS ARE
ARTS (ELA) ARTS (ELA) OFFERING RIGOR TO ALL STUDENTS

WHAT ARE WE INVESTING IN?

Resources for Literacy Instruction: $4.1 million
Instructional Coaches: $1.65 million
All schools will have a full-time Literacy Teacher Development Specialist (LTDS) to model and coach
effective literacy instruction and help teachers analyze student data related to literacy achievement.
Expansion of Reading Recovery Program: $870,800
Hiring an additional 11 Reading Recovery Teachers who help struggling readers quickly gain the skills
they need to be successful through a short-term intervention in one-to-one settings and small groups.
Classroom Libraries: $278,700
Elementary schools with ELA scores in the bottom 10% of the district (20 schools total) will receive
resources to create classroom libraries to increase student access to a variety of books.
Professional Development: $635,800
All pre-K through 4th grade teachers who provide reading instruction will participate in three days of
professional development during the summer. The majority of the cost will be covered by the federal
pre-K expansion grant, which allows for expenditures related to improving the early education
continuum. LTDS and administrators from schools with ELA scores in the bottom 10% of the district
will participate in a Train the Trainer program with Scholastic during the summer.
Curriculum Redesign: $548,000
MNPS will partner with the Institute for Learning to create new scope and sequence documents that
align to state standards to give more guidance to principals and teachers on what needs to be taught and
at what level of understanding. The partnership will also give teachers greater support in developing
effective lesson plans by providing them with access to complex texts and model teaching units. This
is based on a recommendation from the Transition Team.
RAISING THE BAR FOR ALL STUDENTS (2 of 2)

Assessment Tools: $1.2 million

Assessment item bank: $250,000
A new item bank is being procured to provide educators a larger selection of high-quality and validated
assessment items aligned to new Tennessee academic standards. Teachers will be able to use these items
in constructing classroom and common formative assessments. This item bank will also be used to
develop district benchmark assessments aligned to the districts scope and sequence.
NWEA MAP-R and MAP-M: $356,500
Northwest Evaluation Associations Measures of Academic Progress (MAP) assessments will allow
educators to track academic progress over the course of the school year in Reading and Math in grades
2-8. This is an adaptive assessment tool that helps educators identify specific skills and concepts that
each student is ready to learn and in the future will indicate if a student is on track for success on
end-of-year state assessments.
Performance Matters: $482,000
Performance Matters provides a state-of-the-art assessment and reporting platform in which educators
can utilize the new assessment item bank to create, administer and score student assessments. District
benchmark assessments as well as classroom formative assessments will be administered through
this platform.
Benchmark assessment developer: $75,000
The developer is responsible for utilizing the new assessment item bank to develop three district
benchmark assessments in each of the tested subject areas and grade levels that are valid, reliable and
aligned to state academic standards and the districts scope and sequence. These benchmarks will
provide consistent and comparable measures across schools regarding student mastery of state
standards taught each nine-week grading period.

Gifted and Talented Services: $858,000

Advanced Academics Resource Teachers (AART): $858,000
Each elementary and middle school must budget for at least a half-time position for instruction of gifted
and talented students. These positions were formerly known as Encore Teachers. AARTs will provide
direct instruction to students, coach and plan with classroom teachers on teaching high-ability
students, nurture talent and work to identify and screen gifted and talented students.
CREATING OPPORTUNITIES FOR AFTER HIGH SCHOOL

AT A GLANCE:
Free access to college credit-bearing tests
Free access to industry certification tests and dual credit exams
Postsecondary planning and preparation
Total Investment: $1.69 million

WHY THESE INVESTMENTS?

MNPS 8TH GRADERS REACHING COLLEGE

READINESS BENCHMARKS ON 2015-16 ACTS
EXPLORE ASSESSMENT

27.9% OF 49% 22% 18% 25% 56% OF STUDENTS

GRADUATING GO ONTO POST-
SENIORS SCORED SECONDARY
A 21 OR ABOVE ON ENGLISH MATH READING SCIENCE EDUCATION
THE ACT IN 2015-16 (AS OF 2014-15)

WHAT ARE WE INVESTING IN?

Free access to college credit-bearing tests: $518,100
All high school students who are eligible to take Advanced Placement (AP), Cambridge and International
Baccalaureate (IB) exams will be able to do so at no cost to them, ensuring financial limitations do not
prevent students from receiving college credits from these courses.
Free access to industry certification tests and dual credit courses: $542,000
High school students in the Academies of Nashville who are eligible to take industry certification or
dual credit exams will be able to do so at no cost to them, ensuring financial limitations do not prevent
students from having access to college and career opportunities. Similarly, Academies of Nashville
students who participate in dual enrollment courses will be able to do so at no cost if the states Dual
Enrollment Grant and HOPE Scholarship do not cover the full costs.
Postsecondary planning tool for counselors and students: $500,000
The district will partner with Naviance to provide an online platform for middle and high school
counselors to help students identify college and career interests and plan their academic pathway
according to their goals. The technology system also provides students with the ability to request
official transcripts electronically to simplify the college application process.
ACT Aspire: $130,000
With the state no longer providing ACT predictive assessments, the district will invest in ACT Aspire to
help 9TH and 10TH grade students anticipate whether they are on track to score at least a 21 on the ACT
in the 11TH grade.
SERVING THE DIVERSE NEEDS OF STUDENTS (1 of 2)

AT A GLANCE:
Further expansion of services for English Learners (EL) and families with
Non-English Language Backgrounds (NELB)
Expansion of social / emotional learning and supports for students
Further expansion of wrap-around services model Community Achieves
Investment in special education services
Expansion of nursing care for students
Development of Equity Framework
Total Investment: $8.76 million

WHY THESE INVESTMENTS?

MNPS GAINS

58,336 MNPS HAS

MORE THAN

1,000 INSTRUCTIONAL DAYS LOST DUE

TO OUT OF SCHOOL SUSPENSION
10,658
NEW EL STUDENTS STUDENTS WITH
IN 2015-16
EACH YEAR INDIVIDUALIZED EDUCATION
PLANS (IEPS)

WHAT ARE WE INVESTING IN?

English Learners: $4.7 million
Continued growth in the districts EL population brings the need to further expand the scope and depth
of EL services. The district will add 31 EL Teacher positions to address state-required student-teacher
ratios and seven new positions focused on providing professional development for all EL teachers.
The district also expand services that help new EL students adjust and engage EL families with:
more afterschool tutoring with the addition of six new tutors,
expanded summer school programming for EL students,
and more interpretation and translation services by adding 19 new interpreters/translators.
Social / Emotional Learning (SEL): $1.3 million
Strategic new investments and realignment of existing functions will create greater support for
culturally responsive teaching, restorative practices, trauma informed care and integration of social
and emotional learning into the classroom. The district will invest in two SEL Instructional Coaches,
expand access to psychological services, reduce student-counselor ratios, and add two social workers
and a two social work coordinators.
Special Education: $947,000
Paraprofessionals will receive a pay upgrade and improved training with the goal of increasing
the pipeline for special education teachers. The district will also add three new speech-
language pathologists.
SERVING THE DIVERSE NEEDS OF STUDENTS (2 of 2)

Community Achieves: $336,000

This proven model for community schools to provide wrap-around services to students, families
and the community will be expanded to four new school sites.
Student Health Services: $916,600
Increasing the number of school nurses providing health services to students.
Diversity and Equity: $563,700
Strategic new investments and realignment of existing functions will support the development of an
Equity Framework to ensure all learners have the resources and supports needed to be successful in
every classroom in every school.
INVESTING IN EXCELLENT PEOPLE (1 of 2)

AT A GLANCE:
Cost of living adjustment and step pay increase for all employees
Increased pay for substitute teachers to be competitive in the marketplace
Capacity of Human Resources (HR) to support staff recruitment and retention
Compensation study to examine the need for future pay adjustments to remain competitive
Leadership development pipeline
Total Investment: $26.5 million

WHY THESE INVESTMENTS?

HR HIRES
APPROXIMATELY
96 3RD
1,400 CLASSROOMS WERE VACANT
AT THE START OF THE
IN SUBSTITUTE PAY AMONG
MIDDLE TENNESSEE
SCHOOL DISTRICTS WITH A
NEW EMPLOYEES
SCHOOL YEAR SUBSTITUTE FILL
EACH YEAR
RATE OF 65.6%

WHAT ARE WE INVESTING IN?

Pay increase for all employees: $23 million
All salary schedules will be increased by 3% as a cost of living adjustment and all eligible employees will
receive a step pay increase. The total cost is offset by $9.1 million in anticipated savings from normal
staff vacancy and turnover for a net investment in employee compensation of $13.9 million.
Substitute pay increase: Budget neutral
Pay rates for substitute teachers are being increased to be competitive with school districts in
surrounding counties as well as other regional employment opportunities. The change is budget
neutral due to current and projected substitute fill rates.
Upgrading bookkeeper positions: $1.8 million
The role of school bookkeepers will be upgraded and renamed School Finance and Payroll Records
Administrator. Bookkeepers will be required to reapply for their positions. The role of bookkeepers
vary from school to school. The goal is to create district-wide consistency and greater support for
budget accountability within schools.
Leadership Development: $202,000
The Principal Residency Pipeline has been developed in a joint effort between MNPS, Vanderbilt
Peabody, the Ayers Institute for Leadership Development at Lipscomb University and the Tennessee
Department of Education. It is a three-year comprehensive development program to provide a pipeline
of principals to staff our schools in the future.
INVESTING IN EXCELLENT PEOPLE (2 of 2)

Employee Engagement Survey: $226,000

As a continuation of the leadership teams work to improve district culture, the districts current
relationship with Gallup will be expanded to include their employee engagement survey tool.
Support staff tuition: $325,000
In order to build a stronger pipeline of special education teachers, the district will offer tuition assistance
for paraprofessionals and other support employees who want to receive a bachelors degree in education.
Compensation study: $250,000
Based on recommendations from the Transition Team Report, the Council of Great City Schools
audit of the districts HR department, as well as employee union organizations, the district will conduct a
compensation study to examine long-term recommendations to ensure employee pay is competitive in
both teaching and non-teaching positions.
Expansion of HR capacity: $679,700
Human Resources will add eight new positions to increase the districts capacity to address employee
recruitment and retention and improve customer service to district employees.
REINVENTING OUR MIDDLE SCHOOLS

AT A GLANCE:
First phase of a three-year transition for all middle schools to adopt the STEAM instructional model
(Science, Technology, Engineering, Arts, Math)
Investments in technology for students and staff
Creates more extended learning opportunities and extracurricular activities after school
Supports national accreditation and certification for every middle school
Supports supplementary materials and teacher training to increase rigor in middle schools,
specifically for Honors English courses
Total Investment: $5 million

WHY?

PREPARING STUDENTS FOR THE NEW ECONOMY

STEM CAREERS ARE GROWING FASTER NATIONAL RESEARCH SHOWS

THAN THE AVERAGE OF ALL OTHER STUDENTS FROM SPECIALIZED STEM
OCCUPATIONS AND PAY MORE THAN SCHOOLS ARE TWICE AS LIKELY
DOUBLE THE NATIONAL MEDIAN TO MAJOR IN STEM DISCIPLINES
WAGE OF $35,080 IN COLLEGE.

WHAT?
STEAM Curriculum and Materials: $4 million
The redesign of all middle schools with STEAM instruction will take place over three years, starting
with the schools that already have a STEM component. This will involve intensive professional
development for teachers and administrators to implement STEAM, which requires inquiry-based,
hands-on instruction.
Learning Technology Specialists: $670,500
The district is adding nine itinerate Learning Technology Specialists to support increased technology
for students and staff as part of the middle school transformation. These specialists will support the
deployment of more technology for student instruction, such as laptop carts, as the district moves
toward a 1:2 device-student ratio in middle schools. The middle school redesign will also include
robust computer science curriculum on topics such as coding and web design.
Honors English: $55,000
Curriculum to create Honors English courses in middle schools.
Makerspaces: $167,000
Funding to support the creation of a makerspace in middle schools as part of their transition to STEAM.