Proposed Budget Fiscal Year 2016

Transcription

1 Proposed Budget Fiscal Year 2016 Presented By: David S. Cline Associate Superintendent for Finance and Support Services February 23, 2015

2 Revised Budget Process and School Board Motion Board of County Supervisors (BOCS) budget guidance reduced funding for FY 2016 by $11 million; almost 50% less than promised in the adopted Five-Year Plan and a loss of $113 million within the Approved Five-Year Plan School Board adopted specific budget guidance for submission of the Proposed Budget by the Superintendent: Incorporate BOCS revenue reduction in baseline budget submission (Proposed Budget will not be balanced): Include funding for an additional grade of class size reduction Include a step increase for employees Provide the School Board with a list of educational programs which are not mandated by state/federal law Provide the School Board with a list of critical unmet needs 2

3 PWC FY Revenue Guidance Impact of Change in County Revenue Guidance: Fiscal Year Reduction Cumulative Cut $11,251,577 -$11,251, $11,055,997 -$22,307, $10,846,890 -$33,193, $11,945,843 -$45,099,507 Not included in Approved Five Year Plan Reductions on top of reduced revenue from previously Approved Five Year Plans Approved Five Year Plan balanced per School Board guidance 3

4 Budget Process and Virginia Law Virginia Code : Superintendent required to develop a Proposed Budget which meets the needs of the School Division School Board reviews, revises, approves, and submits a budget to the County which meets the needs of the School Division Board of County Supervisors (BOCS) is responsible for funding the School Division upon request of the School Board: BOCS is responsible for setting tax rates BOCS does not have line item authority and may only budget by lump-sum appropriation or broad state category 4

5 Operating Fund & Debt Service Fund Fiscal Year 2016 FY 2015 FY 2016 Change Percent County $488,819,640 $500,857,874 $12,038, % State $451,229,463 $460,302,431 $9,072, % Federal $31,052,492 $37,492,999 $6,440, % Other $7,756,346 $14,299,976 $6,543, % Beginning Balance $18,493,208 $18,011,314 ($481,894) -2.6% Total $997,351,149 $1,030,964,594 $33,613, % 5

6 Funding Issues County Revenue Reductions Reductions from Approved Five-Year Plan include $11 million - FY 2016 and total $113 million State Held Harmless for FY 2015 & 2016 Cuts No restoration of previous year reductions State Funding for 1.5% Pay Raise Virginia Retirement System (VRS) Adjustments Federal Changes in Grants Other Beginning Balance 6

7 Growth in Student Membership Past Five Years All Students Special Education 12.5% 10.7% English Lang Learners 0.1% Free/Reduced Lunch 26.4% 0.0% 15.0% 30.0% 45.0% 7

8 Enrollment Trends 100,000 98,000 96,000 94,000 92,000 90,000 88,000 86,000 84,000 82,000 80,000 78,000 97,520 95,615 93,460 91,557 93,057 89,458 91,496 90,064 87,108 88,777 87,500 85,055 86,209 85, FY 2015 Projected FY 2016 Projected 8

9 Impact of 2,000 Additional Students Space annual CIP costs of $71.4 million 98% of an Elementary School - $28.0 million (approximately 40 trailers) 45% of a Middle School - $18.4 million (approximately 26 trailers) 25% of a High School - $25 million (approximately 25 trailers) Staffing 86 ES teachers or 121 HS teachers (if all at one school) School administrative - Principals, Assistant Principals Support staff custodial, clerical, security Instructional supplies, materials, equipment, textbooks Non-instructional supplies, equipment Transportation of 1400 students 20 buses - $2.1 million 20 drivers 1.2 mechanics/support staff Operating costs (fuel); bus maintenance Central Support Student Learning, Professional Learning, Special Education, Student Services, Accountability, Human Resources, Financial Services, Facilities Services, Risk Management & Security, Information Technology, 2,000 students = $21,058,000 in additional Operating Costs = $7,140,000 in additional Debt Service Costs 9

10 FY 2015 Cost per Pupil Comparison 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 10

11 Cost per Pupil Change Over Time Adjusted for Inflation 11,000 10,500 10,000 9,500 9,000 8,500 8,000 7,500 10,776 10,845 10,429 10,383 10,378 10,163 10,365 9,852 10,158 9,374 9,745 9,624 9,577 9,444 8,939 9,031 9,184 8,490 8,825 8,304 8,309 8,390 8,434 Unadjusted Adjusted Source Washington Boards of Education FY 2016 estimated 11

12 FY 2016 Proposed Budget FY 2015 Approved Budget (Operating & Debt Service) $997,351,149 Expenditure Changes for FY 2016 Baseline Adjustments $21,135,499 Baseline Adjustments $6,931,820 Inflation Adjustment for Supplies, Materials, Services (1.6%) $507,895 Increase Substitute Pay Rates by 2% $102,206 Increase Supplemental Pay Rates by 2% $92,752 FY 2015 Scheduled Replacement of Buses & Vehicles -$8,239,898 FY 2016 Scheduled Replacement of Buses & Vehicles $16,520,325 Adjustments in Grants & Self-Supporting Programs $5,220,399 12

13 Expenditure Changes for FY 2016 FY 2016 Proposed Budget Compensation $14,630,323 Step Increase (average 2.9%) $18,038,205 Pay Plan Adjustment (1% PPA) $0 Pay Plan Adjustment (1% required VRS) $6,435,196 School Board Pay Raise $102,337 Slippage/Salary Vacancy Factors -$8,200,000 VRS Rate Adjustment & Employee 1% Share -$6,147,143 Group Life Insurance (GLI) Rate -$89,105 Health Insurance Rate Increase (7.8% Increase) $4,490,833 13

14 Expenditure Changes for FY 2016 FY 2016 Proposed Budget New Students & Schools $10,991,358 Funding for New Students (Funding for 392, but +1,191) $4,106,716 Startup Costs for Devlin Rd ES -$419,000 Fixed Allocation for Devlin Rd ES $762,217 Startup Costs for Ferlazzo Site School $425,000 Startup Costs for 12 th High School & Aquatics Center $1,988,497 Thomas Jefferson HS - Facilities Renovation Cost Share $31,110 Net Change in Debt Service Costs $4,096,818 School Repairs & Renewals $2,369,000 Repair and Renewal Projects (Net Change) (Scenario D) $1,869,000 CIP Technology Improvement Projects $500,000 14

15 FY 2016 Proposed Budget Expenditure Changes for FY 2016 New Resources $4,836,089 Class Size Reduction Plan (9th Grade Math) (11.0 FTE) $933,416 English Language Learners Translation Services (2.0 FTE) $177,698 School Improvement Program (1.0 FTE) $166,100 VA Federal Preschool Initiative $2,212,236 Adjust Nurse Ratio for New School (0.6 FTE) $53,512 Director of K-12 Activities and Athletics (1.0 FTE) $181,862 Increased Insurance Costs (Workers Compensation, Liability) $500,000 Information Technology Contracts Shortfall $350,000 VA elearning Initiative (Freedom/Gar-Field/Stonewall/Potomac) $64,080 High School Classroom Assessment Student Learning Training $5,000 High School AP Insight Program for AP Biology $20,000 Special Education - Psychologist (1.0 FTE) $85,620 Summer School Support for English Language Learners $50,715 Start-up Funding for Employee Evaluation Information System $25,357 Partial Funding for Replacement Equipment KLC Meeting Rooms $10,493 15

16 FY 2016 Proposed Budget Expenditure Changes for FY 2016 Reductions -$2,816,616 End of Payments for Student Information System -$625,000 TIPA Grant Savings from Local Contribution -$1,191,314 Vehicle Fuels Projected Savings for Price Decrease -$1,000,302 FY 2016 Projected Expenditures $1,048,496,802 FY 2016 Projected Revenues (Operating & Debt Service) $1,030,964,594 Estimated FY 2016 Surplus/Deficit -$17,532,208 16

17 Capital Improvements Program (CIP) FY 2016 Highlights FY 2016 Proposed Budget includes funding to support the sale of bonds for the construction of new schools: Ferlazzo Site School / IHS / Porter Traditional Conversion 12 th High School / IHS Rippon MS Addition / IHS Maintenance Facility / IHS-PACE East Kilby ES Replacement (Phase 1) Renewals & Repairs Phase 2 Funding: Henderson ES, King ES, Lake Ridge ES, Loch Lomond ES, Springwoods ES HVAC upgrades/repairs, roof repairs/replacements, kitchen upgrades, Title IX Technology Improvements Plan 17

18 Five-Year CIP Summary FY New Students 6,849 New School Facilities 7 Elementary Schools 3 Middle Schools 0 High Schools 2 Replacement Schools (Kilby ES, PACE East) 2 Support Facilities (Facilities, Transportation) 2 Schools with Additions 8 Additional Capacity 9,194 Construction of New Facilities $491,860,000 Renewal & Repair Projects $212,623,000 Portable Classrooms

19 Annual Debt Service (Debt Payment on School Bonds The Mortgage ) Debt Service in Millions $100.0 $95.0 $90.0 $85.0 $80.0 $ % annual growth rate $82.1 $77.2 $74.7 $86.7 $92.1 $97.2 $70.0 $ Debt Service 19

20 Health Insurance Annual Rate Increases 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 9.20% 8.00% 7.70% 6.10% 4.00% 0.00% 4.50% 5.00% 6.50% 9.80% 9.00% 6.85% 10.00% 2.90% 0.00% 9.80% 8.80% 9.00% 7.80% 8.00% 5.00% 4.00% PWCS National Calendar Year PWCS Proposed 20

21 Programs Not Required by State and Federal Law Are not discretionary, but reflect programs which support the School Board s Strategic Plan Superintendent supports all of these Strategic Programs; list of programs not required by State and Federal law has been developed at direction of School Board - examples: Full Day Kindergarten Specialty Schools & Specialty Transportation Costs Middle & High School Sports ES Strings Program Building Maintenance Paying for AP/IB/PSAT Tests Deferral of Capital Improvements Projects (CIP) 21

22 Critical Unmet Needs Approval of a budget and Five-Year Plan each year does not mean everything is OK/funded School Board has directed development of a list of Critical Unmet Needs in the current budget including: 200 Trailers being utilized daily Overcrowded classrooms (Class Size) Maintenance Infrastructure under-funded Technology Infrastructure under-funded No funding to replace student classroom technology Supplies/Materials/Equipment 22

23 Critical Unmet Needs FY 2007 was the last budget year in which PWCS school funding was somewhat comparable to surrounding jurisdictions. Listed below are projected costs to fund selected class size and school programs at the FY 2007 ratios: High Schools $12.9 million Middle Schools $11.6 million Elementary Schools $6.6 million Economically Disadvantaged $12.2 million ESOL/ELL $1.7 million Gifted $2.4 million Special Education Services $3.3 million Total Instructional Programs: $50.7 million 23

24 Issues/Thoughts Zero Base Budgeting Implemented Reviews of two central offices found limited program savings, but confirmed need for additional staff Pool canceling the pool will not save the budget $8.5 million project costs $358,791 in debt service in FY % of project cost has been expended; over 50% committed; daily progress - structural steel going up You Get What You Pay For» BOCS presents that the overall level of taxes in PWC is approximately 30% less than comparable jurisdictions in Northern Virginia» Does this mean that the instructional performance of School Division can be 30% less? 24

25 In Summary The School Board develops the budget within the funding amounts provided by the County and State This budget attempts to meet needs for programs and services essential to a quality education We are not meeting the need to reduce class sizes, to provide enough additional permanent building space, provide competitive salaries/benefits, or restore previous cuts Impact on student performance will always be in hindsight As one of the Nation s 100 Best Communities for Young People, we remain committed to Providing A World-Class Education and doing what is best for the almost 87,500 children we expect to educate and serve. PWCS return on investment has been recognized as the highest in Northern Virginia and among the best in the Commonwealth 25

26 FY 2016 Budget Timeline 02/23/2015 Public Meeting on Budget at Kelly Leadership Center 02/28/2015 Joint School Board and Board of County Supervisors (BOCS) Budget Meeting 03/04/2015 Budget Work Session (after regular SB Meeting) 03/11/2015 Budget Work Session Mark-Up 03/18/2015 Public Hearing, School Board approves Budget/CIP 04/07/2015 School Board Budget Presentation to PWC Board of County Supervisors (BOCS) 04/30/2015 Final Date for BOCS Budget Approval 26

27 Proposed Budget Fiscal Year 2016 Presented By: David S. Cline Associate Superintendent for Finance and Support Services February 23, 2015