FY 2019 Proposed Budget Manassas Park City Schools

Transcription

1 FY 2019 Proposed Budget Manassas Park City Schools 1 Park Center Court Suite A, Manassas Park, VA

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3 Office of the Superintendent One Park Center Court, Suite A Manassas Park, VA Dear Members of the Manassas Park City School Board: It is with great pleasure that I present the FY19 Superintendent s Proposed Budget, the eighth such budget since my tenure began in As you will note, the following document aligns with our new Strategic Plan, and addresses the four division priorities including the Board s priority of increasing teacher compensation. The FY19 budget allows the school division to continue its outstanding efforts to provide an education that meets the demands of an extremely diverse population. MPCS students come from 35 countries around the world speaking 28 different languages. Our demographics are as follows: 62% Hispanic, 17% White, 10% African-American, 6% Asian and 5% Other. Nearly half of our student body receives either daily or monitorstatus EL services, placing our percentage at the top in Virginia. Manassas Park City Schools is proud of its minority-majority status, where equality, equity and social justice are promoted and valued. At our work session on November 6, 2017, the Board unanimously agreed that compensation, particularly salary adjustments for teachers, was to be the number one priority for the FY19 budget. I am happy to share the budget provides a salary adjustment for all employees of Manassas Park City Schools. For classified staff, the average increase is 2.03%, and for instructional staff, the average increase is 2.97%. I am pleased the starting salary for teachers tops $48,000, an increase of over $1500 from last year. I know the Board has expressed a desire to be competitive with surrounding jurisdictions, and I am confident the proposed amount will be well-received by our teachers, community and prospective candidates. At a special School Board meeting on February 5, 2018, the Board directed the Central Office administration to create two salary grades for teachers- one for probationary teachers and one for teachers on continuing contract status. Moreover, the Board directed staff to add a loyalty adjustment for those dedicated employees who have given many years of service to the organization. I am pleased to report both these directives have been addressed in the FY19 budget. The continuing contract grade provides a higher midpoint for teachers who have achieved continuing contract status meaning more dollars for them, and the loyalty adjustment has the potential to accumulate $15,000 or more for those dedicated employees who continue to remain with the organization for service years 11 to 30. This budget includes support for the addition of eleven growth positions to accommodate an increase in student enrollment and programmatic needs. Four of these growth positions (two teachers and two aides) are earmarked for an expansion of our VPI program at Cougar Elementary School, the first time this has been proposed since the Pre-K building opened in The formalization of a division Capital Improvement Plan this year has led to the inclusion of several noteworthy items featured in this budget: 1) the replacement of an aging fire panel at the high school and updating outdoor lighting on the secondary campus will improve the safety features in and around our schools, 2) the purchase of two buses will ensure the division keeps pace with an industry-standard replacement cycle. While the average age of the bus fleet is significantly better than just after the recession, the division is working hard to ensure that most, if not all, buses are replaced after 15 years on the road, and 3) the EPA mandated phase out of R-22, a refrigerant used in air conditioners, will force the modification or replacement of most of the air conditioning units throughout the division. The Maintenance Department has already begun the shift as existing units fail. However, meeting the phase out deadline of 2020 means the division must change the focus to the replacement of working units.

4 In 2014, we launched MPCS Connects!, a 1:1 digital learning initiative that provides a laptop or tablet for each student in grades 3-12 and expanded technology resources for younger grades. This blended learning model enhances both teaching and learning, and I am so thrilled the proposed budget, using allocated dollars from our VPSA grant, supports the 1:1 model for the entire second grade. I know teachers and staff are very excited for the arrival of MPCS Connects! at Cougar next year. I look forward to our deliberations and continued collaboration over the next two months as we finalize an adopted budget for ratification on April 23, 2018, and as always, on behalf of the 451 employees of Manassas Park City Schools, we thank you for your ongoing support of our school division. Sincerely, C. Bruce McDade Superintendent

5 3 School Board Rachel Kirkland Chair Carlos Vargas Vice Chair Hong Xu Member Alana Mensing Member Deborah L. McIntyre-Yurkocih Member

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7 5 Manassas Park City Schools Administration Dr. Bruce McDade Superintendent Eric Neff Deputy Superintendent Dr. Jeff Jackson Associate Superintendent for Teaching and Learning Krista Kelly Director of Financial Services Jennifer Braswell-Geller Director of Special Programs Jon Mamon Director of Accountability and Assessments Matt McCormack Director of Information Technology Michelle Noyes Director of Human Resources Patricia Hurley-Ritenour Director of Transportation Paul Simpson Director of Maintenance

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9 7 Manassas Park City Schools Overview City Overview and Outlook The City of Manassas Park is behind its peers (Northern Virginia Cities and Prince William County Towns) when it comes to revenues generated from Economic Development sources (see adjacent charts). The fact that the City is much closer to its peers in terms of Business License Revenue but far behind in terms of Meals and Sales Taxes indicates that the City s Light Industrial Park is healthy and that the City should focus on retail and restaurant developments to diversify and grow our economy. With this in mind, the City is focusing on developing our Downtown into either a commercial shopping center or mixed-use Town Center. While the City is working with the owner of City Center and the new Park Tower development to enable retail and restaurant attraction to these developments, it is also prioritizing the development of Phase 3 of City Center in the land where City Hall is currently located. The hope is to draw a retail anchor to this land that will then spur further business investments to the Downtown. Unless the City is successful in its Downtown development strategy, the economy of Manassas Park will continue to be the weakest in the area. This weak economy will not permit the revenues needed to fund City operations, including our Schools, to desired and needed levels. In the previous years, the development of 1-2 Bedroom Apartments has resulted in increased commercial real estate property revenues to the City. However, no further apartment developments are in the pipeline. The City will continue to explore options as part of Downtown development. Governance The City of Manassas Park, affectionately referred to as the Park, is governed by a mayor and six council members who are elected at large. The Governing Body appoints the five-member School Board who each serve staggered three-year terms. The School Board, in turn, appoints the Superintendent of Schools to a four-year term. As a fiscally dependent entity, the School Board is required by state law to maintain financial statements in accordance with generally accepted accounting principles and to abide by those laws and policies that determine fiscal accountability.

10 8 Students and Schools Surrounded by some of the largest school divisions in the Commonwealth of Virginia, Manassas Park City Schools (MPCS) seem small by comparison. The division s 3,700+ students are served in four schools: Cougar Elementary School (CES) Pre-K 2 Manassas Park Elementary (MPES) 3-5 Manassas Park Middle School (MPMS) 6-8 Manassas Park High School 8-12 However, the two and a half square miles that comprise Manassas Park provide great diversity with over 40 languages spoken in the homes of our students Actual and Projected Enrollment FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 CES MPE MS HS #REF! Expectations of Excellence Over the last 12 years the enrollment has increased by 50% and the composition has changed dramatically. Manassas Park City Schools is now a minority-majority with a Hispanic enrollment of approximately 60%. Projections indicate that enrollment will continue to increase slightly over the next 3-5 years due to the imbalance between small graduating classes compared to larger Kindergarten classes. While overall enrollment is expected to flatten, there are no good models to project how the school make-up, including the nearly 60% with Free and Reduced Meal Eligibility (FRME), will change over time. The staff exemplifies the division motto of Expectations of Excellence. This begins with the Expectations of Excellence Ceremony at the high school; an academic pep rally that recognizes student accomplishments on the Standards of Learning Tests (SOLs) during the prior year and sets the tone for the upcoming school year. At the end of the ceremony the freshman class processes out to the Bell of Knowledge to ring the bell as a symbol of their commitment to their education. This process is repeated by the seniors at graduation after they walk through a gauntlet of proud teachers and staff to recognize their accomplishment.

11 9 The bell symbol has been incorporated into the division logo and was even adopted by the Manassas Park Education Foundation. The foundation has adopted the name BELL, which stands for Businesses Empowering Lifelong Learners. The mission of this organization is to provide support and additional resources for the students and staff of Manassas Park City Schools.

12 10 Achievements All schools within Manassas Park City Schools were accredited in MPCS is the only division in the Commonwealth with a student population where more than 40% are English Learners and more than 50% are Economically Disadvantaged that can make this claim. The Manassas Park High School overall four-year on-time graduation rate in 2017 was no less than 88% for any ethnic group with an overall average of 91%. The graduating class of 2017 were awarded approximately $800,00 in scholarships. Combined Math and Reading SAT scores continue to improve increasing 78 points in the last two years. The division s commitment to ensure all students are college or career ready is evidenced in the 40% increase in students earning one or more CTE credential in 2017 over This is five times the increase seen across the state. MPCS is working hard to close the achievement gap for EL and Economically Disadvantaged students with improvements equal to or greater than 10% for both groups between 2015 and 2017 in Reading and Math. Over the past four years, the MPCS Connects! Initiative has put digital learning tools in the hands of all students in grades 3 through 12. The division is excited about the continuing 1-to-1 rollout for second grade in FY19. MPCS was nationally recognized by Extreme Networks for dedication in delivering a digitally personalized learning environment. MPCS is completing the fourth year in a partnership with the Capital Area Food Bank. The partnership distributes over 50,000 pounds of food to families during the school year. Staff members from all four schools, administration and the City of Manassas Park come together at Manassas Park High School to volunteer their time or organize and distribute food to families. Located in the Manassas Park Community Center, the Mason and Partners Clinic (MAP) is a partnership between MPCS, George Mason University, and surrounding health care provides to serve the medical needs of the uninsured. The Early Identification Program (EIP), in partnership with George Mason University, promotes higher education to potential first-generation college students. In May of 2017, a record number of 10 seniors graduated from the program, of which they have been a part since the 7 th grade.

13 11 Performance Highlights Standards of Learning Elementary School Passing Rates, Grade 3, 4, & 5 English Reading History/Social Studies 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% % Math Science 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% %

14 12 Middle School Passing Rates, Grades 6, 7, & 8 English Reading History/Social Studies 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Math Science 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

15 13 High School EOC Passing Rates, Grades 9, 10, 11, & 12 English Reading History/Social Studies 120% 100% 100% 80% 80% 60% 40% 20% 0% % 40% 20% 0% % Math 100% Science 80% 80% 60% 60% 40% 40% 20% 20% 0% % Writing Passing Rates, Grades 5, 8, & % Writing 80% 60% 40% 20% 0%

16 14 Combined Score Math & Reading Test Year SAT Performance Combined Math and Reading SAT scores have increased over the last three years On-Time Graduation The Virginia On-Time Graduation Rate expresses the percentage of students in a cohort who earned a Board of Education approved diploma within four years of entering high school for the first time. Percentages are based on longitudinal student-level data and account for student mobility and retention and promotion patterns. On-time graduation rate is 91% Among graduates o 48% received an advanced diploma o 75% plan to attend a 2- or 4- year college MPCS On-Time Graduation Rate Graduates % % % % % % Class of (graduation cohort Year)

17 15 Strategic Plan Vision Expectations of Excellence Mission To cultivate and inspire our diverse school community to achieve academic excellence and make positive connections to the global society. Goals Prepare students to be life ready Cultivate committed professionals that are invested in the overall excellence of the school division and the students served Provide effective and efficient support for student safety and success

18 16 Budget Process Budget Calendar The Superintendent met with senior administration weekly beginning in September to review budget priorities and budget development tasks, but are not included on this calendar. October 2, 2017 October 9 November 6 November 7 December 4 December 11 December 18 January 10, 2018 January 18 January 20 February 5 February 26 TBD March 19 April 9 April 23 Budget Development School Board Meeting: Budget Update Capital Improvement Plan Superintendent s Listening Tour (Manassas Park High School) School Board Meeting: Budget Priorities Superintendent s Listening Tour (Cougar Elementary) School Board Meeting: Budget Update Staffing Ratios Superintendent s Listening Tour (Manassas Park Community Center) Governor releases proposed budget School Board Meeting: Budget Review Revenue Streams System opened for Budget Holder entry of FY19 non-personnel requests Budget holder entries due School Board Retreat with City Governing Body: Budget Overview School Board Work Session: Approval of Budget Inputs Teacher salary scale structure Raise methodology Enrollment Staffing Ratios School Board Meeting: Superintendent s Budget Presentation Amendments to the Biennial Budget Adopted in the 2018 General Assembly School Board Meeting: Public Hearing on FY19 Budget School Board Work Session: Approval of Budget Inputs Medical premiums Salary scales Stipend positions School Board Meeting: FY19 Budget Adoption Each fiscal year, staff throughout Manassas Park City Schools work to develop cost estimates of the total expenditures required to operate the school division. This work considers relevant statutory guidance, the Division Strategic Plan, and the budget priorities set by the School Board and administration. The final product,

19 17 the MPCS Annual Budget, is compiled by central office staff, reviewed by the Executive Leadership Team, presented to the public, and ultimately adopted by the School Board. Budget Priorities Budget priorities are established early by the School Board and Executive Leadership Team. These priorities are based on the Strategic Plan and help to guide decisions during the budget process. Four budget priorities controlled the budget process for FY Provide a salary increase for all staff 2. Ensure appropriate staffing 3. Provide adequate funding for maintenance of capital resources. 4. Allocate sufficient material resources Revenue Forecasting Local Revenue Local revenues include funds paid directly to the school division by individuals or groups. Several categories of local revenue exist. Locally generated revenues are based on a three- to five-year trend when more accurate means are unavailable. Fees Each year the School Board adopts a schedule detailed in policy XXX for such items as technology fees, PE uniforms, and facility rentals. Details of fees for FY19 can be found in the Supplemental Information section. Grants and Donations The school division receives a local grant to support a division-wide mentor program and donations processed by BELL, the Manassas Park education foundation, in support of specific school or division initiatives. For many reasons the divisions budgets little or no donation revenue and records these items as supplements throughout the year. Rebates and Refunds MPCS earns a rebate on its utilization of a Purchasing Card (P-card), for e-rate eligible technology purchase, and certain School Nutrition food purchases. The division also receives reimbursements from Prince William County Schools for expenditures made as part of the Head Start or Regional Special Education programs. These revenues are reversed at year-end to show true divisions costs and earned revenues. However, since the City s Appropriation to the School s is based on the budget, these amounts must be included as if the revenues were earned. Meal Charges Although over 60% of division students are eligible for Free or Reduced Meals, the School Nutrition organization receives revenue for full-priced student and staff meals. In FY18 local revenue is projected to decrease from $2.2 million to just under $2 million due primarily to a reduction in Special Education Regional Tuition as mandated by the state. City Transfer This budget assumes that the City transfer will be unchanged from the FY18 School Board Adopted Budget. Combined City and School Debt Service will peak during 2019 increasing approximately $732,000 from FY18. Traditionally, this assumption is updated as the City works through the budget process and provides information on available funding levels. State Revenue The Financial Services Department uses the Direct Aid Calculation Templates provided by the VDEO to establish the majority of the budgeted revenue. The increases for FY19 are primarily the result of increased enrollment growth. Commonwealth revenues in the Superintendent s Proposed Budget was based on the Governor s proposed biennial budget as proposed on December 18, Superintendent s memos or award notifications are used to establish other minor funding streams provided by the Commonwealth.

20 18 The chart below identifies the two broad sources of revenue received from the state: sales tax and Basic Aid for Education. Growth in state revenue is primarily the result of increasing student enrollment in Manassas Park City Schools. State Revenue Millions $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 FY15 (Actual) FY16 (Actual) FY17 (Acatual) FY18 (Budget) FY19 (Budget) Basic Aid Sales Tax For the last four years, the division received additional VPSA funds through the e-backpack program designed to provide students with tablets or laptops. The intention of the program was to lighten student s backpacks by replacing multiple heavy textbooks with a singular, and much lighter, device. The loss to the division is just under $300 thousand. In FY16, MPCS began applying for Medicaid reimbursement for administrative services for qualifying special education services. The FY18 budget included increased revenue based on the assumption that MPCS would begin billing for directly provided medical services. However, implementation of this process has taken longer than expected and this $75,000 revenue stream has been removed from the FY19 budget. MPCS anticipates receiving additional state revenue from this program in future years. Federal Reimbursements Estimates of federal revenues are developed with the Associate Superintendent for Teaching and Learning based on historic trends and the last briefings from the federal and state governments. MPCS practice is to estimate conservatively and this budget includes a $65,000 reduction in federal funds for operations. However, federal revenue to support the School Nutrition Program is expected to increase slightly. Expenditure Forecasting Zero-Based Budgeting Zero-based budgeting requires the budget holder to justify all requested expenditures for the next fiscal year. The starting point for this type of budgeting is zero and each grade level, subject area, department, and school must develop a statement of needs based on the best information available at the time. Budget holders should routinely ask themselves, To what extent does this request support the mission and vision of the division. Requests should be developed based on projected changes in student membership, related student needs, embracing technology, increasing operational efficiencies, and collaboration with stakeholders.

21 19 The nature of this process forces the budget holder to attempt to anticipate student and staff needs for the coming school year. In some cases, this means requesting funds exceeding the budget for the current school year. However, resources are limited and additional spending in one area may require reduction in spending in another. For this reason, it is in the best interest of the budget holder to develop contingency plans in conjunction with the budget request. Departments and school-based budget holders are responsible for developing expenditure budgets for all nonpersonnel line items. Principals must ensure all staff are cognizant of the division and school goals and how they are individually and collectively accountable for achieving the goals. Budget holders should solicit input from their stakeholders before developing a budget strategy. The data collection process begins with the lowest level budget holder involving all staff entering expenditure information in KeyNet, the online employee portal for Keystone. Requests are summarized by school and reviewed by the Principal and Bookkeeper for accuracy and appropriateness before review by the Executive Leadership Team. Contract Services Changes in 61 accounts averaging $1,100 each account for the $67,000 increase from the FY18 Budget. The largest of these relate to changes in repair agreements for IT services, an increase in Hearing & Vision services due to changes in the structure of the Regional Special Education Program, and additional amounts budgeted for audit services associated with completion of audit reports. Other Charges Utility costs increase year-over-year and the $24,000 increase in these expenditures are based on increasing trends for electricity and heating fuel. This is offset slightly by a reduction in projected fees for Internet. The FY18 amount was uncertain due to a pending change in contract structure with the Internet provider and turned out to be slightly high. Materials and Supplies FY19 budget expenditures in this category have the largest change of any of the non-personnel based costs at $452,000. The three largest contributors to this amount are as follows: A $99,00 increase in Instructional materials. Similar to Contract Services, this change come modifications in 71 different accounts that average $1,400 each. The largest concentrated growth is related to instructional materials for English Learners, a department that has not seen a significant influx in teacher our student resources in several years. Rising costs and the need for additional software licenses accounts for another $130,000 with over half of the expenditures related to products necessary to support division operations. The largest instruction related software increase relates to a package for progress tracking of EL students that is intended to assist teachers and administrators in monitoring student progress and adjusting interventions as needed to ensure student success. The cost of food purchases in the School Nutrition budget accounts for another $130,800. Tuition for Joint Operations Two years ago the VDOE notified all existing regional special education programs that the state funding model would be changing to allow for the expansion of the program to other school divisions. As a result, MPCS has eliminated two categories of disabilities primarily served within the division from the regional roster. In addition, no newly enrolled or newly identified students have been added to the roster. These changes resulted in a $307,000 reduction in this expenditure category. Capital Outlay Requests for capital replacement items increase 37%. Several large projects have been proposed as part of the Capital Plan. The $200,000 for R-22 refrigerant replacement was first proposed in the FY18 budget, but implementation was staggered, and major renovations are still needed, so this

22 20 item is truly cost neutral to the FY19 budget. The $100,000 line item for outdoor LED lighting nearly replaces the track resurfacing project line item in the FY18 budget. Smaller increases in total bus purchases, replacement copiers, and the replacement of an aging fire panel round out the increase in Capital Outlay. Other Uses of Funds During the recession, MPCS entered into capital lease-purchase arrangements in order to purchase new or replacement buses. Since the division has not used these financial instruments for the last two years, the total lease payments are dropping as various obligations are satisfied. Staffing Estimates and Employee Cost Projections Preliminary staffing levels are determined centrally based on approved staffing ratios and projected enrollment. Once established, these staffing levels are shared with department managers and building administration. Department managers and building administration may request additional positions by submitting a staffing request form. Unlike larger surrounding jurisdictions, all salary and benefit projections are developed centrally by the Financial Services Department using the Employee Cost Project Model (ECP) within Keystone, the division s Enterprise Resource Planning (ERP) software. Another difference is that MPCS basis staffing cost estimates are on actual, individual salaries and benefits rather than a division average. MPCS is afforded this level of specificity due to the small size of the division with roughly 460 full-time employees To better analyze various changes, the projections are developed in phases using an iterative process. Baseline (ECP P2) This model establishes baselines of all current employees at a full year contract at current contract rates. This process revises amounts for employees who started late and have a prorated contract. It also adjusts for any changes in the calendar for individual positions, or calendar groups. In FY 16, MPCS initiated a balanced calendar which significantly shifted the school year start date, without an equivalent shift in the last day of school. This added days to several contract types, particularly for nonexempt staff such as bus drivers, nurse, and food service workers. The baseline model uses the new, short contract length as the baseline. This change resulted in a reduction of $760,000 from the FY18 Budget. Benefit Adjustments (ECP P3) Estimated or known changes in benefit rates are included in this phase. Revisions are made as each benefit rate is finalized. The FY19 rates for VRS retirement contributions for professional staff decreased from 16.32% to 15.64%. This significant decrease resulted in a savings for the division of $142,000. However, changes in medical premiums and the required modification to the employer share increased medical expenditures by $62,500. Salary Adjustment (ECP P4) Multiple scenarios are typically estimated and evaluated offline before being entered into Keystone for final calculation. This year s assumptions included: Creation of two salary scale: Classified and Instructional. The latter scale includes grades for Instructional assistants, Teachers, Librarians, Guidance Counselors, Instructional Technology Resource Teachers (ITRT), Instructional Technology Specialist (ITS), Assistant Principals, and Principals Establishing two pay grades within the teacher grade: Probationary and Continuing Shifting the Classified scale by over 6% and the Teacher grade by 3.4% to improve starting salaries across the division Implementation of a 2.3% increase on the midpoint for all staff on grades having starting salaries less than $30,000 Implementation of a 2.0% increase on the midpoint for all remaining grades.

23 21 Addition of a loyalty raise component for employees who will begin year 11+ with MPCS during the school year. Projected expenditure increases of $826,000 were related to these salary changes and the associated increase in benefits. Resignations and Retirements (ECP P5 & 6) Staff retirements provide an inherent cost savings for the division, since even the hiring of a seasoned employee is unlikely to equal the salary and benefit obligations associated with the retiring employee. Unlike retirements, resignations, especially of newer staff, does not necessarily result in savings. This portion of the model removes salary and benefit amounts for known resignations and retirements and includes average salary and benefit assumptions based on the position. Amounts are also reduced for any planned vacancies. As the budget process moves from the Superintendent s Proposed Budget to the School Board s Adopted Budget, more information is known about planned departures and these figures are periodically updated. The FY19 Superintendent s Proposed Budget includes $21,000 in savings related to these staffing modifications. This adjustment was based on one known retirement and three confirmed resignations. Growth Positions (ECP P7) On average a new teacher costs the division approximately $85,000 per year. This amount may vary somewhat depending one the experience of the ultimate hire, their level of advanced degree, if any, and the medical plan chosen. MPCS uses historic hiring data to estimate the typical salary and benefit amounts for a given position in this portion of the model. Costs for growth positions and salary increases typically produce the greatest year-over-year expenditure increase in any budget year. For the FY19 Superintendent s Proposed Budget, the projected increase for growth positions is $691,600. Growth positions contained within the Superintendent s proposed Budget are as follows: 2.0 Teacher VPI (Pre-K) 2.0 Instructional Assistant VPI (Pre-K) 1.0 Teacher Special Education (CES) 1.0 Teacher PE (CES) 1.0 Instructional Assistant (MPES) 1.0 Teacher CTE (MS) 1.0 Teacher PE (MS/HS) 1.0 Teacher Social Studies (HS) 1.0 Nurse Assistant (HS) 11.0 Total Growth Positions Using this process, the division can easily determine the overall expenditure change associated with premium differences, raises, growth positions, and resignations and/or retirements. Careful modification of existing employees also makes the ultimate contract generation process much more efficient.

24 22 Financial Summary All Funds Summary Manassas Park City Schools budget includes five different funds: Operating Most of the expenditures required to operate the division are contained in the Operations Fund. In general, if the expenditure is not related to one of the other funds, then it belongs in Operations. Federal Grants All revenues and expenditures related to the following Federal Grants are recorded in this fund. Food Services School Nutrition is run as an enterprise operation and is fully self-sufficient. This fund records all revenues and expenditures related to the preparation and serving of school breakfast and lunch, as well as any catering of special functions. Capital Projects Capital expenditures are those used to purchase individual items costing $5,000 or more with a useful life of more than one year. The division budgets most of its major technology purchases here. The main source of revenue for this fund is VPSA funding from the Commonwealth and fund balance. For this reason, the expenditures in this fund are strictly controlled. Medical Trust Prior to School Year the division provided a supplement to retirees for the cost of their medical insurance. The amount of the supplement was dependent on the number of years of service with the division and required that the employee remain on the MPCS medical insurance policy. This fund manages the payment of the medical premiums and receipt of any funds paid by the employee for full coverage. These funds are appropriated quarterly by the City Governing Body. At the end of the year, balances remaining in the School Operating Fund are transferred to the Medical Trust Fund and/or Capital Fund to cover future obligations for retiree medical premiums or capital projects. FY2019 Proposed Budget by Fund School Nutrition $2,028, % Capital $823, % Federal $1,203, % Medical Trust $34, % School Operating $40,265, %

25 23 All Funds Expenditure Summary FY2018 Adopted FY2019 Proposed FY19 Over(Under) FY18 Percent Change School Operating $ 39,312,643 $ 40,181,176 $ 868, % Federal 1,313,596 1,287,917 (25,679) -2.0% Medical Trust 45,228 34,478 (10,750) -23.8% Capital 776, ,254 46, % School Nutrition 1,880,482 2,028, , % Total All Funds $ 43,328,307 $ 44,355,469 $ 1,027, % All Funds Statement of Budgeted Revenues and Expenditures FY2018 Adopted FY2019 Proposed FY19 Over(Under) FY18 Percent Change REVENUES Local $ 2,177,510 $ 1,998,144 $ (179,366) -8.2% City Transfer 12,305,000 12,300,000 (5,000) 0.0% State 25,894,090 26,839, , % Federal 2,729,279 2,703,378 (25,901) -0.9% Total Revenue $ 43,105,879 $ 43,840,684 $ 734, % EXPENDITURES Salaries $ 25,221,934 $ 25,919,575 $ 697, % Benefits 8,969,797 8,959,583 (10,215) -0.1% Contracted Services 2,527,287 2,594,090 66, % Other Charges 1,292,723 1,316,716 23, % Materials and Supplies 2,857,175 3,309, , % Regional Tuition 1,714,000 1,407,000 (307,000) -17.9% Capital Outlay 451, , , % Other Uses of Funds 293, ,980 (56,459) -19.2% Total Expenditures $ 43,328,307 $ 44,355,469 $ 1,027, % Revenues Over(Under) Expenditures $ (222,428) $ (514,785) $ (292,356) OTHER FINANCING SOURCES(USES) Transfers In(Out) $ $ $ Capital Lease Proceeds Total Other Financing $ $ $ Increase(Decrease) in Fund Balance $ (222,428) $ (514,785) $ (292,356) FUND BALANCE Beginning Balance $ 1,878,958 $ 2,370,854 $ 1,215,490 Ending Balance $ 1,656,529 $ 1,856,070 $ 923,134

26 24 Revenue Summary School Operating Fund The School Operating Fund received most of its support form the Commonwealth of Virginia. The largest portion of which relates to the Standards of Quality and Sate Sales Tax. The remainder of the revenue comes from reimbursements for joint operations with other school divisions and local fees and charges. Federal Fund All revenues received in this fund are derived from federal grant programs. Medical Trust Fund The medical trust fund receives no revenue per se. The fund acts as a pass through for amounts collected by VRS from retirees for their medical premium coverage. Due to the structure of this arrangement, the amounts are counted as contra-expenditures and are not recorded as revenues. Local funding is provided in the form of transfers of budget savings at the end of a given year. Capital Fund Since major technology purchases related to the state s VPSA program are recorded here, the associated revenues are also recorded here. The City of Manassas Park has provided $150,000 in revenue for the past two years earmarked for the purchase of new buses. All other funding is provided in the form of transfers of budget savings at the end of a given year. School Nutrition The School Nutrition Fund is a self-supporting fund. Primary sources of revenue are Federal, receipts from the sale of breakfast and lunch to students and staff. Minimal amounts are received from the state or other sources. All Funds Revenue Summary Local 1,998,144 5% Commonwealth 26,839,163 60% FY19 Proposed Revenue by Source City Transfer 12,300,000 28% Beginning Balance 553,732 1% Federal 2,703,378 6% FY2018 Adopted FY2019 Proposed FY19 Over(Under) FY18 Percent Change School Operating $ 39,371,881 $ 40,265,716 $ 893, % Federal 1,268,279 1,203,378 (64,901) -5.1% Medical Trust 31,308 34,478 3, % Capital 776, ,254 46, % School Nutrition 2,021,919 2,067,591 45, % Total All Funds $ 43,469,744 $ 44,394,416 $ 924, %

27 25 Expenditure Summary Salaries Salaries include all amounts for all current and projected positions whether exempt or non-exempt (hourly). Estimates for substitutes, stipends, as well as, additional hours and overtime for hourly staff are also included. Tuition Reimbursement and National Board Certification supplements are also included in salaries. Benefits Fringe benefits are budgeted in the same cost center as the salaries with which they are associated. Included are costs for FICA, VRS retirement, Group Life Insurance, Retiree Health Care Credit, Medical Premiums, Disability, Unemployment, and Worker s Compensation. Contracted Services All expenditures for services acquired or purchased from sources outside the school system. Purchase of services must be on a fee basis or fixed time contract basis. Other Charges Expenditures that support the uses of facilities such as utilities, communications, insurance, rentals, and travel. Materials and Supplies. Expenditures for all instructional materials, office supplies, textbooks, and other operating supplies which are consumed or materially altered when used. Tuition Payments Payments to Prince William Count for participation in the Northern Virginia Regional Special Education Program. Capital Outlay Purchases of additional or replacement assets having an individual item value greater than $5,000 and useful life exceeding one year. Other Uses of Funds Amounts paid in principle and interest on capitalized lease payments. Other Uses of Funds 1% Capital Purchases 1% Tuition Payments 3% Materials & Supplies 8% Benefits 20% Other Charges 3% Contract Services 6% Salaries 58% Object Amount Salaries $ 25,919,575 Benefits 8,959,583 Contract Services 2,594,090 Other Charges 1,316,716 Materials & Supplies 3,309,239 Tuition Payments 1,407,000 Capital Purchases 619,286 Other Uses of Funds 229,980 Total $ 44,355,469

28 26 Operating Fund Summary Commonwealth 66% City Transfer 30% Local 4% City Transfer The amount transferred from the City s General Fund to support School operations. Commonwealth Revenues from the state primarily comprised of Sales Tax and amounts to support the Standards of Quality. Local Reimbursements from Prince William County Schools for the Regional Special Education and Head Start programs. These amounts are shown in full during the budget process, but are reversed against expenditures for year-end reporting Transportation 5% Attendance & Health 1% Administration 5% Technology 1% Instructional Technology 5% Maintenance 8% Instruction 75% Attendance and Health costs are school based costs for nursing and psychologist services. Instruction reflects all costs associated with the classroom Instruction function as defined by the VDOE. Instructional Technology relates to the direct instruction in the use of technology or to technology expenditures to deliver instruction, while Technology reports all division-wide technology support costs. Administration captures the costs for division wide services such as insurance and copier leases along with the costs of support functions like Finance and Human Resources. Transportation includes all costs for bus purchase, maintenance, and operation. This includes salaries of drivers, aides, and administrative support. Maintenance, while primarily comprised of costs to repair and maintain school facilities does include the cost for division-wide grounds maintenance and administrative support.

29 27 Benchmark Data Cost Per Pupil Cost per pupil information provides a measure of resource allocation based on student population. It is a useful tool for analyzing our expenditures over time and for comparing our expenditures to those of other school systems. Manassas Park City Schools uses the Washington Area Boards of Education (WABE) methodology to calculate cost per pupil presented in the budget. The WABE calculation includes all students, including PreK students, the School Operating Fund, entitlement grants, police services costs and the Major Maintenance/Minor Construction portion of the Capital Projects Fund. It excludes only the self-funded portion of the summer school and Adult Education program costs in the School Operating Fund. The chart below presents the cost per pupil as reported in the FY 2014 through FY 2018 budgets. MPCS Cost per Pupil FY12 FY19 (WABE Method) 11,500 Cost per Pupil 11,000 10,500 10,000 9,500 9,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

30 28 Average Class Size FY18 Average Class Size per WABE Publication

31 29 Select Comparative Wages and Salaries FY18 Minimum Wages and Salaries for Select Positions (FY18 WABE Publication) Bus Drivers Instructional Aide Teacher (BA) Teacher (MA) Alexandria $17.77 $16.26 $47,242 $54,188 Arlington $19.55 $16.23 $48,228 $53,173 Fairfax $18.82 $15.55 $48,012 $53,707 Falls Church $18.95 $15.71 $49,600 $55,020 Loudoun $19.32 $15.89 $49,674 $55,444 Manassas $18.63 $16.10 $46,078 $51,578 Prince William $16.67 $15.26 $47,724 $53,353 Manassas Park $17.61 $15.21 $46,470 $52,470 FY19 MPCS $18.73 $16.99 $48,060 $54,060