School Board s Advertised Budget Fiscal Year 2014

Transcription

1 School Board s Advertised Budget Fiscal Year 2014 Milton C. Johns Chairman At-Large Presented to Prince William Board of County Supervisors April 2, 2013

2 Major Budget Factors 1. Costs associated with 2,089 additional students for a projected total of 85, Virginia reduction of State Cost Of Competing Adjustment (COCA) ($8.3 million cut; $3.1 million restored) 3. Remaining competitive in Salaries & Benefits 4. Seek to maintain instructional programs 5. Seek to maintain capital infrastructure construction, maintenance, technology 2

3 Operating Fund & Debt Service Fund Fiscal Year 2014 FY 2013 FY 2014 Change Percent County $447,303,355 $472,904,217 $25,600, % State $423,641,780 $431,883,386 $8,241, % Federal $29,422,922 31,764,486 $2,341, % Other $4,448,568 $5,276,432 $827, % Beginning Balance $32,106,588 $21,043,153 ($11,063,435) -34.5% Total $936,923,213 $962,871,674 $25,948, % 3

4 Growth in Student Membership Past Five Years All Students Special Education 16.7% 15.6% ESOL 1.5% Free/Reduced Lunch 36.8% 0.0% 15.0% 30.0% 45.0% 4

5 Expecting 2,000 More Students Space on average, every 22 students require either a permanent or portable classroom (trailer) $65.5 million in new construction or 91 trailers Staffing From 86 to 121 additional teachers Support staff, supplies, materials, equipment Transportation 20 buses/drivers to transport 1,400 students Support instructional, administrative, operational Additional Costs for 2,000 students Approximately $20.3 million in Operating Costs Approximately $6.56 million in Debt Service Costs Budget requires $26.9 million in additional revenue just to address the cost of new students 5

6 Cost per Pupil and Enrollment Change Revenue is not keeping Pace with Enrollment Inflation Adjusted Enrollment: Average annual growth rate of 3.0% Funding: Average annual growth rate of -0.69% FY 2005 Actual FY 2006 Actual FY 2007 Actual FY 2008 Actual 108 FY 2009 Actual FY 2010 Actual FY 2011 Actual FY 2012 Actual FY 2013 Actual FY 2014 Projected Enrollment Funding Source: Washington Boards of Education (WABE) reports 6

7 Capital Improvements Program (CIP) FY 2014 Highlights FY 2014 Proposed Budget includes funding to support the sale of bonds for the construction of new schools: Nokesville K-8 School Elementary School on Haymarket Road Additions at River Oaks ES, Featherstone ES, and Parkside MS Commence construction of the mid-county 12 th high school Renewals & Repairs Dumfries Elementary School HVAC repairs, Roof repairs/replacements Technology Improvements Plan 7

8 Five-Year CIP Summary FY New Students 11,242 New School Facilities 11 Elementary Schools 6 Middle Schools 1 High Schools 1 Replacement Schools (K-8, Kilby, PACE East) 3 Support Facilities (Facilities, Transportation) 2 Schools with Additions 8 Additional Capacity 10,924 Construction of New Facilities $500,912,000 Renewal & Repair Projects $194,415,000 Portable Classrooms 202 8

9 Annual Debt Service (Debt payment on Construction of Schools - Millions) Millions % annual growth rate $108.6 $ $ $ $71.0 $74.8 $78.1 $ Debt Service 9

10 Debt as a Percentage of Operations 10.8% 10.1% PWC Principles of Sound Financial Management 10% Limit 10.7% 9.3% 8.6% 7.8% 7.8% 8.4% 8.6% 9.4% 7.1% 6.3% 6.9% 6.8% 7.1% Debt as a % of Operations 10

11 Portable Classrooms Portables FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY

12 Operating Fund Fiscal Year 2014 FY 2013 FY 2014 Change Percent County $377,306,470 $399,004,459 $21,697, % State $423,641,780 $431,883,386 $8,241, % Federal $29,422,922 31,764,486 $2,341, % Other $3,448,568 $4,276,432 $827, % Beginning Balance $32,106,588 $21,043,153 ($11,063,435) -34.5% Total $865,926,328 $887,971,916 $22,045, % 12

13 Sources of Operating Fund Revenue Beginning Balance 2.5% State Aid 40.1% County Transfer 44.8% Federal Aid 3.6% Other 0.5% Sales Tax 8.5% PWCS and PWC operate under a revenue sharing agreement whereby the School Division gets 56.75% of general county revenue 13

14 Expenditures By Category Salaries & Benefits 82.5% Supplies & Materials 4.6% Utilities 6.1% Capital 1.6% Reserves 5.2% 14

15 The Budget Focuses on Instruction Instruction 77.5% Facilities Management 9.1% Central Support 6.1% General Reserves 1.1% Transportation 6.2% 15

16 PWCS Operating Fund Budget Percentage Funded by County and State 51.0% 50.0% 49.0% 48.0% 47.0% 46.0% 45.0% 44.0% 43.0% 50.1% 46.3% 47.8% 47.8% 48.5% 47.3% 46.7% 47.0% 45.9% 44.2% 46.5% 45.8% 47.8% 49.0% 48.6% 44.8% 44.3% 43.8% County State 16

17 FY 2013 Cost per Pupil Comparison 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 Source: Washington Boards of Education (WABE) reports 17

18 Cost per Pupil Change Over Time Adjusted for Inflation 10,800 10,300 9,800 9,300 8,800 8,300 7,800 9,374 8,939 10,378 9,031 10,429 9,745 9,444 9,624 10,776 10,383 9,184 9,577 8,304 8,309 10,163 9,852 8,399 10,334 8, Unadjusted Adjusted Source: Washington Boards of Education (WABE) reports 18

19 PWC Continues to Have the Lowest Tax Bill in Northern Virginia 19

20 FY 2014 Advertised Budget FY 2013 Approved Budget (Operating & Debt Service) $936,923,213 Expenditure Changes for FY 2014 Baseline Adjustments $4,929,934 Baseline Adjustments -$254,492 Inflation Adjustment for Supplies, Materials, Services $0 Annual Update for Age of Replacement Equipment $88,430 Net Cost Scheduled Replacement of Buses & Vehicles $1,569,033 Increase Revenue Rescission (Budget Capacity) $587,895 Adjustments in Grants & Self-Supporting Programs $2,939,068 Compensation $6,623,328 Step Increase $0 Pay Plan Adjustment (1% required VRS; 2% PPA) $18,257,382 Slippage in Compensation -$8,200,000 VRS Savings Offset for New Employees Paying 5% -$1,006,904 VRS Rate Adjustment for Employee 1% Share Increase -$4,958,957 Health Insurance Rate Increase (5% Overall) $2,531,807 20

21 FY 2014 Advertised Budget Expenditure Changes for FY 2014 New Students & Schools $19,905,774 Funding for New Students (+2,089) $15,431,901 Startup Costs for Haymarket ES $341,000 Startup Costs for Nokesville K-8 School $230,000 Net Change in Debt Service Costs $3,902,873 School Repairs & Renewals $4,055,000 Repair and Renewal Projects (Net Change) -$445,000 CIP Technology Improvement Projects $4,500,000 21

22 FY 2014 Advertised Budget Expenditure Changes for FY 2014 New Resources $1,178,299 Student Information System Upgrade - Staffing Plan $116,741 TIPA Grant Year 4 Required Local Match $310,661 Bus Fuel $223,249 EpiPens Replacement Program $25,760 Specialty Program Expansion/Adjustment $50,000 Add l ITRT (1.0 FTE) for State Staffing Compliance $81,480 Sinking Fund for 800 MHz Radio Replacement $300,000 Add l Tuition Reimbursement Funding $47,225 Additional Funding for Robotics Program $23,183 22

23 FY 2014 Advertised Budget Expenditure Changes for FY 2014 Reductions -$10,743,874 CIP Technology Improvement Projects (TIP) -$4,500,000 Sinking Fund for 800 MHz Radio Replacement -$300,000 Energy Management Program Savings -$1,000,000 Utility Program Reductions -$484,481 Divisionwide Reduction Plan -$4,459,393 FY 2014 Projected Expenditures $962,871,674 FY 2014 Projected Revenues (Operating & Debt Service) $962,871,674 Estimated FY 2014 Surplus/(Deficit) $0 23

24 Sequestration Potential Impacts Grant Impact (5.6% reduction) Impact (8.2% reduction) Title VI-B $772,507 1,131,172 Title I 391, ,714 Head Start 175, ,541 Title III 101, ,823 Title II 71, ,226 Carl Perkins 43,651 63,917 Other Federal 222, ,296 Debt Service (8.7%) 129, ,263 Total $1,908,074 2,733,952 24

25 Five-Year Plan Advertised Budget ($ million) $1,200 $0.0 $0.0 $0.0 $0.0 $0.0 $1,000 $800 $600 $400 Revenue Expense $200 $0 FY 2014 FY 2015 FY 2016 FY 2017 FY

26 Commitment to Security 800 MHz radio system replacement ($2.8 M) Video Cameras Facilities Access Visitor Control Systems (Raptor) Restricted School Entranceways Internal Door Locks External Card Swipe Local Government Cooperation School Resource Officers Enhanced Presence Ongoing Staff Training and Exercises Ongoing Security Assessment Safe Schools Advisory Council 26

27 Budget Cuts FY Prince William County Public Schools (PWCS) has continued to make budget reductions. As we have discussed, the reductions have been necessary, not just because of the economy and limitations in revenue, but because of the budgetary pressures caused by the continued growth in enrollment and the attendant need to hire teachers and build classrooms. Since FY 2008 PWCS has achieved budget reductions and reduced costs by over $220.9 million 27

28 Enrollment Cost and Revenue Increases FY ($ Million) $131 Millions $140 $120 $100 $80 $60 $24 $44 Cost of Additional Students Additional County Transfer Additional State Revenue $40 $20 $0 Operating Fund 28

29 Sample of Budget Cuts FY Economically disadvantaged students Reduction of staffing ratios Middle school High school General teachers ESOL Kindergarten Teacher Assistants Transportation Facilities (including 7/14 renewal program) Central Office Technology improvements Reserves Capital projects deferral Supplemental retirement (403b) $9.2 million $4.3 million $5.3 million $10.3 million $5.9 million $2.4 million $8.7 million $3.1 million $21.2 million $6.8 million $5.8 million $20.8 million $6.0 million 29

30 Budget by Fund Totals Operating $887,971,916 Debt Service $74,899,758 Construction $209,620,417 Food Services $42,866,062 Warehouse $5,500,000 Facilities Use $1,388,658 Self-Insurance $4,531,035 Health Insurance $79,482,633 Regional Special Education $40,793,831 Governor s Innovation Park $777,000 School Age Child Care Program $630,000 Total All Funds $1,348,461,310 30

31 Celebrating Success Named One of the Nation's 100 Best Communities for Young People Three Years in a Row

32 Financial Achievement Government Finance Officers Association (GFOA): Distinguished Budget Presentation Award for past 14 Years Certificate of Achievement for Excellence in Financial Reporting for past 9 Years Association of School Business Officials International (ASBO): Meritorious Budget Award for past 17 Years Certificate of Excellence in Financial Reporting for past 9 Years 32

33 In Summary Lean and efficient is closer to inadequate service Not meeting the needs of employees for raises in 5 Year Plan Not meeting the need to reduce class sizes Not meeting the need to provide additional permanent space for the projected student enrollment in the next five years Impact on student performance will always be in hindsight Parents, Students, Taxpayers, Employees, Public This budget does not restore previous reductions. The School Board must develop a budget within the funding amounts provided by the County and State The School Division remains committed to Providing A World-Class Education and doing what is best for the 85,926 children we expect to educate and serve. 33

34 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 Divisionwide accreditation as a quality school system by the Southern Association of Colleges and Schools and Council on Accreditation and School Improvement. All Prince William County High Schools continue to be ranked among the top eight percent in the United States, per Newsweek magazine and The Washington Post Challenge Index. 34

35 School Board s Advertised Budget Fiscal Year 2014 Milton C. Johns Chairman At-Large Presented to: Prince William Board of County Supervisors April 2, 2013