Superintendent s Proposed Budget Fiscal Year 2012

Transcription

1 Superintendent s Proposed Budget Fiscal Year 2012 Presented By: David S. Cline Associate Superintendent for Finance and Support Services Prepared By: John M. Wallingford Director of Financial Services February 2, 2011

2 General Overview Economy leveling, beginning of stability? County Assessments increasing Foreclosure rate moderating Commercial vs. residential rates issue State Sales tax projections increasing Moderate increase in State revenues Second year of budget biennium; minimal funding changes; no biennial shortfall National economy slowly coming out of recession International events may impact economy 2

3 Major Budget Factors Increased revenues 2,762 additional students for a total of 81,070 Continued growth in costs for ESOL program, special education, and economically disadvantaged students Desire to remain competitive in employee compensation (Salary & Benefits) Seek to preserve instructional programs Maintain capital infrastructure Major maintenance and school renewal program Opening Patriot High School, T. Clay Wood ES and Linton Hall Rd ES Constructing middle school at Silver Lake and PACE West replacement Technology maintenance/enhancement needed Seek to preserve jobs, programs, and services in order to maximize instruction to our students 3

4 Funding Shortfall Students Increase as Funding is Flat ,723 72,654 73,321 76,656 Revenue 81,070 79,115 79,000 74,000 Millions ,285 65,721 Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Proposed Budget Budget to maintain programs 69,000 64,000 59,000 54,

5 Student Membership Trends Past Five Years All Students Special Education 11.9% 15.9% ESOL 36.5% Free/Reduced Lunch 43.1% 0.0% 15.0% 30.0% 45.0% 5

6 Sources of Revenue County Transfer 44.6% Beginning Balance 3.3% Federal Aid 3.8% State Aid 39.8% Sales Tax 8.1% Other 0.4% PWCS and PWC operate under a revenue sharing agreement whereby the School Division gets 56.75% of general county revenue 6

7 Operating Fund & Debt Service Revenue Fiscal Year 2012 FY 2011 FY 2012 Change Percent County $405,475,629 $422,128,224 $16,652, % State $353,354, ,034,423 $28,680, % Federal $47,861,797 $30,124,205 -$17,737, % Other $4,198,226 $4,010,676 -$187, % Beginning Balance $7,538,348 $26,016,125 $18,477, % Total $818,428,399 $864,313,653 $45,885, % 7

8 Impact of 1,000 Additional Students Space One Elementary School - $24 million Or approximately 40 trailers Staffing 40 ES teachers or 50 HS teachers School administrative 1 Principal, 1.66 Assistant Principal Support staff custodial, clerical, security Instructional supplies, materials, equipment, textbooks Non-instructional supplies, equipment Transportation of 700 students 10 buses - $1 million 10 drivers 0.6 mechanics Operating costs (fuel); bus maintenance Central Support Student Learning & Professional Development, Special Education, Student Services, Accountability, Human Resources, Financial Services, Facilities Services, Risk Management, Information Technology 8

9 Cost per Pupil Change Over Time Dollars not indexed for inflation 11,000 10,500 10,378 10,429 10,776 10,383 10,000 9,500 9,374 9,577 9,828 9,000 8,939 8,500 8,

10 Comparison of Cost Per Pupil Fiscal Year ,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000-10

11 Budget Approach Economic conditions dictate caution and concern for long-term solutions versus shortterm fix FY 2012 is improved but, PWCS may take three to ten years to recover Effectively FY 2012 maintains a status quo budget Minimize program reductions Maintain our World-Class workforce Schools and departments will be able to carry over one percent of their Approved budget to FY

12 Expenditures By Category Salaries & Benefits 79.5% Supplies & Materials 11.1% Utilities 4.1% Grants 3.8% Reserves 1.5% 12

13 The Budget Focuses on Instruction Instruction 83.0% Facilities Management 3.4% Central Support 6.1% General Reserves 1.5% Transportation 6.0% 13

14 FY 2012 Proposed Budget FY 2011 Approved Budget (Operating & Debt Service) $818,428,399 Expenditure Changes for FY 2012 Baseline Adjustments -$6,092,082 Baseline Adjustments & Elimination of One-time Costs -$4,199,018 Inflation for Supplies, Materials, Services $0 Replacement Buses & Trucks (53 Buses & 13 Trucks) $4,307,851 Replacement Trucks (18 Previously Deferred) $585,486 Special Education Funding Adjustments $1,856,283 Reductions to Federal Grants for End of Stimulus Funds -$10,268,205 Teacher Incentive Performance Award (TIPA) Grant $2,077,265 Adjustments in Grants & Self-Supporting Programs -$451,744 Compensation $13,174,441 Salary Step and Scale Adjustment $0 Employee Bonus of 1 Percent $4,979,313 Slippage in Compensation -$8,200,000 Group Life Insurance (GLI) Rate (-0.05%) -$213,924 Virginia Retirement System (VRS) Rate (+3.23%) $13,622,657 Health Insurance Rate Increase (+6.85%) $2,986,395 14

15 FY 2012 Proposed Budget Expenditure Changes for FY 2012 New Students & Schools $39,828,496 Funding for New Students (+2,762) $25,030,024 Fixed Allocations for New Schools (1 HS, 2 ES) $3,069,058 Startup Costs for New School (1 MS) $665,000 Buses Patriot HS Specialty Programs; HS Double Busing $1,680,000 Net Change in Debt Service Costs $9,384,414 School Repairs & Renewals $6,020,000 Repair and Renewal Projects $1,520,000 CIP Technology Projects $4,500,000 15

16 FY 2012 Proposed Budget Expenditure Changes for FY 2012 New Resources $2,026,118 Governor s Innovation Park (STEM) $175,736 Student Information System Upgrade Staffing $204,779 Increase Funding for Testing Account $100,421 Projected Increased Cost for Bus Fuel $1,012,304 Funding for ES Hands On Science Consumables $112,326 TIPA Grant Year 2 Local Match $257,000 Director of ESOL Program $163,552 Reductions -$9,071,719 Transportation Operational Efficiencies -$2,100,000 VRS Change New Employees Pay 5% -$1,147,933 CIP Technology Projects -$4,500,000 CIP Repair & Renewal Projects (To be funded in FY 2011) -$1,323,786 FY 2012 Projected Expenditures $864,313,653 FY 2012 Projected Revenues (Operating & Debt Service) $864,313,653 Estimated FY 2012 Surplus/(Deficit) $0 16

17 Capital Improvement Program (CIP) FY 2012 Highlights FY 2012 Proposed Budget includes funding to support the sale of bonds for the construction of: Middle School at Silver Lake PACE West replacement school Addition Swans Creek Elementary School (6 rooms) Addition Westridge Elementary School (6 rooms) Bus Parking Lot Renewals Pennington Traditional School Proffer Funds Pattie Elementary School 17

18 Five-Year CIP Summary New Students 9,325 New School Facilities 7 Elementary Schools 3 Middle Schools 1 High Schools 1 Replacement Schools 2 Support Facilities (Facilities, Transportation) 2 Schools with Additions 20 Additional Capacity 10,147 Construction of New Facilities $370,957,000 Renewal & Repair Projects $129,989,000 Portable Classrooms

19 Revenue-Expenditure Projections FY FY 2016 ($ in millions) Description FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Current Programs $821.4 $847.5 $873.7 $890.1 $937.0 New Students $24.6 $38.3 $54.0 $69.7 $86.2 Repairs & Renewals $5.1 $16.4 $15.2 $42.3 $28.3 New Schools $13.2 $7.3 $10.3 $11.5 $16.6 Total Expenditures $864.3 $909.5 $953.2 $1,013.6 $1,068.1 Non-County Revenues $442.2 $467.4 $487.2 $522.7 $549.0 County Transfer $422.1 $442.1 $466.0 $490.9 $519.1 Total Revenue $864.3 $909.5 $953.2 $1,013.6 $1,068.1 Surplus/Deficit $0.0 $0.0 $0.0 $0.0 $0.0 19

20 Health Insurance Annual Rate Increases 12.00% 10.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% PWCS National 20

21 FY 2011 Salary & Benefit Costs for a Teacher Position with an Annual Salary of $60,000 89,000 88,000 87,000 86,000 85,000 84,000 83,000 82,000 81,000 80,000 79,000 78,000 $85,398 21

22 Teacher Salary Comparison Average Salary Step 1 FY ,000 46,000 45,000 44,000 43,000 42,000 41,000 40,000 39,000 38,000 37,000 $42,863 22

23 Local Composite Index The adjustment factor for changes in relative wealth

24 FY 2012 Budget Timeline 02/02/2011 Superintendent presents FY 2012 Proposed Budget and CIP to School Board 02/07/2011 Public Meeting on Budget at Kelly Leadership Center 02/16/2011 Budget Work Session (after regular SB Meeting) 03/02/2011 Budget Work Session (after regular SB Meeting) 03/09/2011 Budget Work Session Mark-Up 03/16/2011 Public Hearing, School Board approves Budget 03/22/2011 School Board Budget Presentation to PWC Board of County Supervisors (BOCS) 04/30/2011 Final Date for BOCS Budget Approval 24

25 In Summary Lean and efficient is close to inadequate service Impact on student performance will always be in hindsight Employees The School Division remains committed to maintaining our quality workforce and providing competitive compensation. To the extent possible, if there are position reductions, we will attempt to maximize the number of employees that can be placed within other positions that may be available due to the continued growth of the School Division, to employee turnover, and retirements. Parents, Students, Taxpayers, Public This budget does not restore previous reductions, but maintains the quality/quantity of instruction that students receive. The School Division remains committed to Providing A World-Class Education and doing what is best for the 81,070 children we expect to educate and serve. The School Board must develop a budget within the funding amounts provided by the County and State. Concerns with funding for the School Division should be expressed to members of the Board of County Supervisors and applicable members of the General Assembly. 25

26 And Still World-Class Recognized nationally in a report by the Center for American Progress, which provides an analysis of school divisions throughout the country, portraying the "return on investment," measured by the amount of expenditure per child by school division as a function of education attained. PWCS Achievement Index is the highest in Northern Virginia and among the best in the Commonwealth sixth overall out of the 132 school divisions. Received exemplary rating and Divisionwide accreditation as a quality school system by the Southern Association of Colleges and Schools and Council on Accreditation and School Improvement. Nation s 100 Best Communities for Young People, America s Promise Alliance and ING. Meritorious Budget Award, Association of School Business Officials. Excellence in Financial Reporting, Government Finance Officers Association. All Prince William County High Schools continue to be ranked among the top 6 percent in the United States, per Newsweek magazine and The Washington Post Challenge Index. 26