FY 2018 School Board Approved Budget. February 28, 2017

Transcription

1 FY 2018 School Board Approved Budget February 28,

2 Budget Planning A Virginia School Division s budget includes: A description of a school division s educational plans for the upcoming year. It includes an estimate of the money the division will receive (revenues) and the division s plans for spending those funds (expenditures). In Virginia, the state government and local governing bodies control the school division s revenues. Decisions about how the funds are spent, however, rest with the school division subject to federal, state and local constraints. 2

3 Virginia Budget Process State Code Section: It shall be the duty of each Division superintendent to prepare, with the approval of the school board, and submit to the governing body or bodies appropriating funds for the school division, by the date specified in , the estimate of the amount of money deemed to be needed during the next fiscal year for the support of the public schools of the school division. 3

4 SCPS Revenue Sources State CIP (Loans & Bonds) SCPS Local Schools Activity Funds (SAF) Grants 4

5 State Funding 5

6 Standards of Quality (SOQ) Law The Constitution of Virginia (Article VIII, 2) requires the Board of Education to prescribe standards of quality for the public schools of Virginia, subject to revision only by the General Assembly. These standards, found in the Code of Virginia at :1 through :10, are known as the Standards of Quality (SOQ) and encompass the requirements that must be met by all Virginia public schools and school divisions. 6

7 SOQ Funding Local Effort SOQ is established in the Virginia Constitution as the minimum educational program school divisions must provide. SOQ funding requires a contribution by the locality. The mandatory minimum local funding required known as required local effort. Based on the Composite Index. Localities may spend more than their required amount and offer programs and employ staff beyond what is required in the SOQ to meet student needs. 7

8 State Direct Aid Budget Categories State and federal funding for public education is provided to local school divisions through the Direct Aid to Public Education budget in the Appropriation Act. The General Assembly appropriates the funds. DOE administers the funds. Funding is appropriated in six budgetary categories: 1. Standards of Quality (SOQ) 2. Incentive Programs 3. Categorical Programs 4. Lottery Proceeds Fund 5. Supplemental Education Programs 6. Federal Funds 8

9 State Direct Aid Budget Accounts (Examples) SOQ is provided through the following accounts, mostly on a per pupil basis: Sales Tax (1.125% for public education) Basic Aid (incl. health care) Governor School Special Education Adult Education Prevention, Intervention, and Remediation Gifted Education Benefits partially funded for instructional & support positions (VRS, GLI, FICA) English as a Second Language Textbooks Early Reading Intervention SOL Algebra Readiness 9

10 Determining SOQ Costs 1. Base year number of students; 2. Staffing standards for teachers and other instructional positions (partially funded); 3. Benefit rates (partially funded); 4. Standard and prevailing support costs; 5. Inflation factors; 6. Federal revenues deducted from support costs; 7. Amount of sales tax revenue and school division local composite index (LCI) locality s ability to pay. Note: Actual cost is provided to DOE through the Annual School Report (ASR) 10

11 FY 17 & 18 State Budget Highlights The Governor s amended FY 2017 budget removes the state share of funding in fiscal year 2017 and 2018 for the 2% Compensation Supplement that was to be effective December 1, For the FY 2018 State Budget, the Division is projecting a $2M increase to partially fund increases in VRS and salaries. By March 1, 2017 (received today at 5 p.m.), the VDOE budget office will release the final budget numbers. 11

12 FY 2017 Budget Reallocation to Fund the State Share of the 2% COLA FY % COLA Total Cost $3.4 M $2.4M Locally Funded $1M State Share Reduced School and Department Material & Supplies, Contracts & Prof. Development Budget Lines by $1 million. Employees already received 4 months (Jul, Aug, Sep, Oct) of higher contracted pay before the State rescinded its share of salary increase, as a result of unexpected decreased revenues Rationale for moving forward with increase and backfill 91% of School Divisions & Spotsylvania County Government did not rescind on funding local share of their staff increase 12

13 State Budget Highlights (Cont.) The FY 2018 VRS professional rate increased by 11.3%, which equates to $2.3M for Spotsylvania Schools in new revenues. The State is providing $900,000 of the of the $2.3M amount. The proposed state budget increase over FY 2017 is $2M ($1.1M towards pay raise or benefits and $900,000 for the VRS rate increase for the Teacher Group). 13

14 State Revenue Trends (All Funds) State Funds Sales Tax $160 $140 $ ,619, ,068, ,064, ,339, ,444, ,461,102 Millions $100 $80 $60 $40 $20 $- FY13 Adopted FY14 Adopted FY15 Adopted FY16 Adopted FY17 Adopted FY18 Approved 14

15 Local Funding 15

16 Code of Virginia SOQ funding requires a contribution by the locality. The mandatory minimum local funding required known as required local effort based on the Composite Index. Localities may spend more than their required amount and offer programs and employ staff beyond what is required in the SOQ. See Standards :1 through :10 16

17 Local Funding Contribution Expectation (Examples) All of the items below are partially funded by the State, excluding Debt Service, with the expectation of the locality bearing the full fiscal responsibility. Fully funding Debt Service SOQ Staffing and Beyond (Salaries & Benefits) Utilities Operations & Maintenance Internal Control Systems Capital Purchases (CIP Fund) Transportation English as a Second Language (ESL) Special Programs & Centers 17

18 FY13-FY17 Local Revenue Trend (Less One-Time Funds) $124.0 $122.0 $121.4 $121.7 $120.0 $118.0 $116.0 $114.0 $112.0 $110.0 $114.8 $ %.0% $116.4 $ %.0% 4.2%.2% FY13 FY14 FY15 FY16 FY17 FY18 (RECM) Over 5 year period average 1% annual increase or $1.4 M 18

19 County General Fund (GF) Apportionment Increase Comparison FY Schools Share County Share (Less One-time Funds) FY13 $0 $4,283,583 FY14 $0 $3,018,853 FY15 $1,585,000 $4,891,707 FY16 $17,408 $5,402,002 FY17 $4,942,568 $4,539,880 FY18 $286,320 $6,969,552 (REC) Total $6,831,296 or 19% $29,105,577 or 81% From FY 13 through FY18 County General Fund Budgeted increase $35,936,

20 School vs. County % of County General Fund FY % 52.2% FY17 FY16 FY15 FY14 FY % 48.9% 49.9% 50.1% 49.2% 48.5% 51.0% 51.1% 50.8% 51.5% 45.0% 46.0% 47.0% 48.0% 49.0% 50.0% 51.0% 52.0% 53.0% County Schools 20

21 School s Share of County GF Assuming FY13 Allocation of 51.5% vs. Actual (Less One-time Funds) FY18 121,661,635 $131,181,849 FY17 $121,375,315 $127,445,075 FY16 FY15 FY14 FY13 $116,432,747 $116,415,339 $114,830,339 $114,830,339 $122,561,614 $119,770,618 $116,435,114 $114,830,339 General Fund Transfer to Schools Assuming FY13 % N L i f d Actual General Fund Transfer to Schools 21

22 Grant Funding 22

23 Grant Funding -$15.6M Accounts for revenues that are legally restricted for particular purposes Grants are received from federal, state, and private sources, some examples include: Title I Funds for students who are Economically Disadvantaged Title VIB Funds for students with Disabilities (only 12% of these costs are funded by the federal government) Pre-K Funds Head Start and Virginia Preschool Initiative (VPI) These funds are not automatically guaranteed every year Some grants require a local match 23

24 SAF Funding 24

25 School Activity Funding - $5M All funds derived from extracurricular school activities, such as athletic contest, club dues, etc., are classified as school activity funds (internal accounts) The funds must be spent for the purpose for which they were raised Money collected for school-sponsored or school-related activity Used to promote general welfare, education and morale of all students Used to finance co-curricular activities of student body organizations By law, funds can t be comingled with other district or PTO/PTA funds Revenues and expenditures are tracked in the division s Blue Bear system and audited annually 25

26 Allowable SAF Purchases (A Few Examples) Student awards Student field trips Student newspapers, handbooks, agendas Costs associated with Judges, Adjudicators, and Conductors for student events Assemblies and student activity programs Athletic equipment and supplies Athletic referee services Safety needs and equipment P.E. Uniforms 26

27 CIP Funding 27

28 CIP Funding - $27.4M Restricted funds for capital purchases in the areas of: Maintenance Transportation Technology These funds can not be used to fund salaries and benefits Note: Bond ratings are positively impacted by quality schools being in the community 28

29 Major Budget Drivers Mandatory Costs (VRS) Salary Increases Quality Education for All Students which Align with our Strategic Plan Compliance [SPED, Health (ACA) 29

30 Mandated Costs - Virginia Retirement System (VRS) 30

31 Virginia Code Benefits 2. School Employee Retirement Contributions Virginia Retirement System (VRS): a. This item provides funds to each local school board for the state share of the employer's retirement cost incurred by it, on behalf of instructional personnel, for subsequent transfer to the retirement allowance account as provided by Title 51.1, Chapter 1, Code of Virginia. b. Notwithstanding , Code of Virginia, the Commonwealth shall provide payments for only the state share of the Standards of Quality fringe benefit cost of the retiree health care credit. This Item includes payments in both years based on the state share of fringe benefit costs of 55 percent of the employer's cost on funded Standards of Quality instructional positions, distributed based on the composite index of the local ability-to-pay. Health Care paid through Basic Aid is based on state share of SOQ positions: c. Payments for health insurance fringe benefits are included in and distributed through Basic Aid (partially funded). 31

32 VRS Rate Trends (Employee & Employer including Retire Health Credit) 25.0% 20.56% 20.77% 20.0% 15.0% 14.85% 17.77% 17.77% 20.12% 9.53% 10.0% 11.93% 5.0% 0.0% Note: FY18 VRS Rate of 22.55%, which is a $2.3M or 11.3% increase 32

33 VRS Expenditure Trend Mandatory Expense $24,000,000 $19,000,000 Annual VRS Cost $14,000,000 $9,000,000 $4,000,000 $(1,000,000) 2014 Actual Budget 2015 Actual Budget 2016 Actual Budget 2017 Adopted Budget 2018 Approved Budget Retiree Health Credit $- $1,284,097 $1,315,085 $1,430,194 $1,604,006 VRS Hybrid $9,710 $616,147 $1,728,991 $1,750,826 $2,847,756 VRS (Plan 1&2) $16,059,445 $17,689,302 $16,443,160 $17,774,316 $19,066,120 Annual Total $16,069,155 $19,589,546 $19,487,236 $20,955,336 $23,517,882 Teachers Represent the Largest Group for the Professional VRS Group with the Locality Sharing in this Investment 33

34 Compliance Costs - Employee Health Insurance 34

35 Employer Health Rate Increase 25.0% 20.0% 20.3% 15.0% 10.0% 10.7% 7.6% 9.3% 11.8% 5.30% 5.0% 0.0% 3.5% 2.0% 0.0% Note: The FY18 health insurance rate increase quoted from Anthem was originally 13%. The School Board implemented several strategies to lower the increase to 5.3% for the division and 5% for employees. 35

36 Health Insurance Expenditure Trend Annual Health Insurance Cost 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Compliance Expense 2014 Actual 2015 Actual 2016 Actual 2017 Adopted Budget 2018 Approved Budget Retiree Dental Ins $136,356 $129,663 $140,630 $160,799 $120,269 Dental Insurance $1,393,007 $1,391,067 $1,428,513 $1,709,220 $1,365,128 Retiree Prescription $682,176 $814,910 $932,790 $922,919 $1,064,905 Retiree Health Ins $2,875,184 $3,989,475 $3,218,370 $3,690,605 $3,690,605 Hospitalization $25,461,645 $24,192,126 $23,525,563 $28,481,979 $30,234,955 Total $30,548,368 $30,517,241 $29,245,866 $34,965,522 $36,475,862 The school division is required to provide Health insurance according to the current Affordable Care Act (ACA). Robust benefits are paramount in retention and recruitment

37 Maintaining Competitiveness 37

38 FY % COLA Offset Health Premium Increases Displays Value & Appreciation of Employees Employee Retention & Recruitment In Alignment with the State Funding Direction Rationale Behind Providing Increase in Fiscally Challenging Environment 38

39 Salary Trends Fiscal Year 2010 None 2011 None Salary Adjustments % COLA & $600 Prorata Bonus 2013 None Director level and above.8 % - Below the Director level All employees - 5% VRS pay raise offset 2014 $900 Prorata Bonus 2015 Step & 1% COLA % COLA % COLA 2018 (Proposed) 2% COLA 39

40 FY16 Average Teacher Salary (Larger School Divisions) Ranking District Average Salary Enrollment ADM 1 Arlington County $76,942 24,367 2 Alexandria City $74,664 14,392 3 Fairfax County $66, ,292 4 Loudoun County $64,184 75,676 5 Prince William County $60,011 86,769 6 Chesapeake City $56,117 38,971 7 Albemarle County $55,281 13,433 8 Stafford County $54,490 27,474 9 Virginia Beach City $54,375 67, Suffolk City $54,131 13, Spotsylvania County $53,438 23, Hanover County $51,720 17, Portsmouth City $51,310 13, Newport News City $51,153 26, Chesterfield County $50,697 58, Norfolk City $50,081 29, Richmond City $49,858 21, Hampton City $48,964 19, Henrico County $48,850 50, Roanoke County $48,707 14,020 40

41 Free Market System & Wages Wages Assumptions 2% COLA Free Market System dictates wages Quantity 41

42 Teacher Shortage in SCPS & Virginia Wages Impact At W 1, supply is less than demand Supply and demand is not In equilibrium Quantity 42

43 Teacher Shortage Impact on Supply and Demand Curve Wages Impact Teacher shortage causes shift in supply curve Wages must increase to respond to decrease in supply Quantity Source: 43

44 Special Education Compliance 44

45 SPED Funding Trend Totals W/Annual Increase Millions $40 $35 $ $25 $20 $2.5 $1.0 $2.2 $2.5 $1.7 $0.8 $29.3 $31.8 $32.8 $35.0 $37.5 $39.2 $40.0 FY12 Actual FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 Adopted FY18 Approved

46 FY 16 Special Education Disability Category Costs (Examples) Autism $5.2M Speech and Language Impairments $4.8M Intellectually Disabled $4.4M Developmentally Delayed $1.6M 46

47 Where Are We Currently 47

48 Funds Fund 1, 2, 3, 4, & 7 Only FY17 Adopted FY 18 Approved Variance Fund 1 - CGS $2,162,010 $2,153,159 ($8,851) Fund 2 - RRJDC $1,046,409 $1,035,364 ($11,045) Fund 3 - FS $9,776,526 $10,199,132 $422,606 Fund 4 - Adult Ed $775,460 $770,596 ($4,864) Fund 7 - Fleet $2,648,798 $2,760,110 $111,312 TOTAL $16,409,203 $16,918,361 $509,158 48

49 Revenue Overview Operating Fund 5 (Less CIP) Revenue Source FY17 Adopted FY18 Approved Variance State Funds $129,944,685 $131,977,899 $2,033,214 Local Funds* $122,345,837 $120,223,234 ($2,122,603) Federal Funds $9,736,033 $10,380,711 $644,678 Other Funds $5,001,558 $9,814,250 $4,812,692 (Gap) TOTAL $267,028,113 $272,396,094 $5,367,981 *Fund 1 includes $22,603 of Local Funds 49

50 FY18 Revenue Overview Operating Fund 5 (Less CIP) State Funds Local Funds Federal Funds Other Funds $10,380, % $9,814, % $120,223, % $131,977, % 50

51 Expenditures by Budget by Category Operating Fund 5 (Less CIP) Fund 5 (Object) FY17 Adopted FY 18 Approved Variance Instruction $184,227,948 $189,173,769 $4,945,821 Administration $4,959,320 $4,999,960 $40,640 Attendance/ Health $5,336,320 $5,469,483 $133,163 Transportation $17,817,045 $18,000,574 $183,529 Maintenance $21,314,369 $21,039,150 ($275,219) Technology $8,077,529 $8,131,262 $53,733 Debt Service $25,295,582 $25,581,896 $286,314 TOTAL $267,028,113 $272,396,094 $5,367,981 51

52 FY18 Budget by Category Operating Fund 5 (Less CIP) Maintenance $21,039, % Transportation $18,000, % Attendance/Health $5,469, % Administration $4,999, % Technology $8,131, % Debt Service $25,581, % Instruction $189,173, % 52

53 Instruction as % of Operating Budget $300,000,000 Operating Budget (Fund 5 Less CIP) 69.24% Instruction % of Budget 68.91% 68.99% 69.44% 70.00% $250,000, % 68.09% $200,000, % 68.00% $150,000, % $100,000, % 66.00% $50,000, % $0 FY12 Adopted FY13 Adopted FY14 Adopted FY15 Adopted FY16 Adopted FY17 Adopted FY18 Approved 64.00% 53

54 Expenditures by Object Operating Fund 5 (Less CIP) Object FY17 Adopted FY 18 Approved Variance Wages $143,736,865 $145,576,044 $1,839, Benefits $67,005,772 $71,096,290 $4,090, Purchased Services $13,391,897 $13,405,040 $13, Other Charges $10,007,604 $9,405,403 ($602,201) Supplies $7,492,694 $7,327,615 ($165,079) Capital Outlay $129,699 $35,806 ($93,893) Debt Services $25,263,582 $25,549,896 $286,314 TOTAL $267,028,113 $272,396,094 $5,367,981 54

55 Expenditures by Object Operating Fund 5 (Less CIP &Debt Service) Purchased Services $13,405,040 5% Other Charges $9,405,403 4% Supplies $7,327,615 3% Capital Outlay $35,806 0% 1000/ Wages & Benefits $216,672,334 88% Debt Services $25,549,896 9% Total $246.8M 55 55

56 Full-time Equivalents (FTE) vs. Average Daily Membership (ADM) FY08 Adopted Budget FY18 Approved Budget Decline % Decline FTE Total 3,297 3,107 (190) (6.3%) Teacher FTE (Object 1121) Enrollment ADM 1,865 1,763 (102) (5.5%) 24,454 22,834 (1,620) (6.6%) Assuming an average class size of 25 A decline in 1,620 students equates to a reduction of 65 teachers Since FY2008 the division has reduced its numbers of Teacher FTEs (object 1121) by 102 which is an excess of 37 positions No additional teacher alignment adjustments are warranted 56 56

57 Spotsylvania County Public Schools FY15 Per Pupil Spending By Source Source Per Pupil Spending Per Pupil Ranking (out of 132 school divisions) Local $4,350 60th State $5,204 85th Federal $ th Total $10, th For the overall local, state and federal cost per pupil ranking, the school division ranks 85 th. 35.6% of the 132 school divisions are ranked below Spotsylvania County Schools. 57

58 Budget Reduction Efforts 58

59 Budget Reductions or Cost Avoidance Restructuring Central Office Retirement Opportunity Programs Non-compensation Reductions Programs eliminated, modified, redesigned Hiring of Grant Writer Joint Procurements with the County Becoming self funded with our health insurance plan 59

60 Reductions/Allocations /Cost Avoidance Outsourcing Food Service Outsourcing Custodial Services Modernization of Health Plans Increasing the Employee Share of Health Premiums Renegotiation of Contracts Refinancing Debt with Support from County Joint Maintenance previously consolidated, but unconsolidated because the needs of the Schools were not being met in a timely manner 60

61 Central Office FTE Adjustments Fiscal Year FTE Amount FY ($516,832) FY ($234,207) FY ($518,677) FY ($1,029,498) FY ($1,100,515) FY $0 FY $735,415 FY $173,310 FY18 0 $25,312 Total ($2,465,691) Location: Central Office Includes SBO, Maintenance, Transportation, ITTC 61

62 Give me six hours to chop down a tree and I will spend the first four sharpening the axe. Abraham Lincoln 62

63 Strategic Planning 63

64 Strategic Plan Goals Goal 1: Teaching & Learning All students will graduate college and career ready. Goal 2: Community Engagement & Partnerships Family, students, staff and the entire community actively engage to seek resources and to develop opportunities that meet future educational challenges and workforce needs. Goal 3: Organization Climate & School Safety The learning and working environment is safe, caring, healthy and values diversity. 64

65 STRATEGIC PLANNING GOALS Spotsylvania County Public Schools CORE VALUES Community Engagement and Partnerships Cultural Proficiency Excellence MISSION STATEMENT: Together, we prepare our students for their future. 65

66 Board Investments 66

67 SCPS Core Values Student-Centered Leadership Accountability Cultural Proficiency Excellence Effective Communication Teamwork Citizenship Our Staff 1346 Administrators and Support Staff 1761 Teachers 55% of Teaching Staff holds Advanced Degrees Average years of Teaching Experience is National Board Certified Teachers 71% of Staff resides within Spotsylvania County 67

68 Ms. Rosemary Creekmur 2016 VML Individual Risk Management Excellence Award Ms. Sarah Downing Rappahannock 2016 Regional School Librarian of the Year Dedicated & Distinguished Staff Ms. Susan Stover 2016 MWH Spirit Award Nurse of the Year Ms. Carolyn Kleinert Region III Teacher of the Year Mr. Anthony Lann 2016 VAASL CTE Teacher of the Year 68

69 VISION SCPS is a leading school division that inspires and empowers all students to become creative thinkers, problem solvers and effective communicators. Our Students 52% Male, 48% Female 58% White, 18% Black, 15% Hispanic, 2% Asian, 7% Other 12% receiving Special Education services 38% receiving Free/Reduced Price Meals 11% in Gifted Education services 5.5% are English Learners 62 Languages spoken 69

70 Enrollment Trend October 1 Enrollment Enrollment Inc/(Dec) 25, , October 1 Enrollment 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16,000 15, (193) (348) (93) (50) (139) (86) (53) (100) (200) (300) (400) Enrollment Inc/Dec over Prior Year 70

71 Students with Disabilities Trend Data Student Enrollment Statistics Dec 1 Count 2,623 2,683 2,756 2,834 2, % 2.7% 2.8% 1.7% FY 2013 FY2014 FY 2015 FY 2016 FY

72 Total Number of English Learners (ELs) 72

73 Dual Enrollment Student Learning, Career-Readiness & Leadership Opportunities Visual & Performing 73

74 Specialty Center Concept VISION SCPS is a leading school division that inspires and empowers all students to become creative thinkers, problem solvers and effective communicators. Fine and Performing Arts STEM/Agriculture Humanities Career and Technical Expansion STEM/Engineering Virtual School JROTC AP Capstone/IB Governor s School Business 74

75 Student Success and Achievements 75

76 Teaching & Learning Prepare all students to be college and career ready. Evidence of Continuous Improvement 5% rise in On-Time Graduation Rate since % rise in Math Performance and 5% rise in Reading Performance since % rise in Science and 2% rise in Social Studies performance since % rise in Reading and Math Performance, closing achievement gaps among minority, ECD, Hispanic, and SWD 76

77 Teaching & Learning Prepare all students to be college and career ready. Evidence of Continuous Improvement 9% rise in Reading Performance and 8% rise in Math Performance at the Elementary School Level since % rise at Middle School Level and 5% rise at High School Level in Math Performance since 2014 Improving Trends in Advanced Placement, SAT, ACT, and CTE participation and performance 77

78 78

79 79

80 Accreditation Status for Largest 15 Virginia School Divisions State of Virginia 1490/1828 schools 82% Spotsylvania 26/29 schools 90% Arlington 32/32 schools 100% Prince William 79/90 schools 88% Hanover 23/23 schools 100% Chesapeake 34/45 schools 76% Stafford 30/30 schools 100% Henrico 48/67 schools 72% Loudoun 84/87 schools 97% Hampton 17/29 schools 59% Virginia Beach 77/82 schools 94% Newport News 20/38 schools 53% Fairfax 183/194 schools 94% Norfolk 23/45 schools 51% Chesterfield 57/61 schools 93% Richmond City 17/45 schools 38% 80

81 Teaching & Learning Prepare all students to be college and career ready. Evidence of Continuous Improvement Development and implementation of the Teaching and Learning Framework, Curriculum Development process Targeted curriculum and intervention supports in literacy and math Leadership capacity through academies: Ex. LLE, TLA, TCA, LEAD Increasing and enhancing instructional technology access and integration 81

82 SCPS Partners In Education Community Engagement & Partnerships Goal 427 Partners In Education Family, students, staff and the entire community actively engage to seek resources and to develop opportunities that meet future educational challenges and workforce needs. 82

83 Organizational Climate & School Safety Goal The learning and working environment is safe, caring, healthy and values diversity. Evidence of Continuous Improvement PBIS training and effective implementation Structural enhancements to building entrances Enhanced visitor protocols Decline in disciplinary incidents, suspension rates 83

84 2016 Graduates 62% received an Advanced Studies Diploma 80% pursued Higher Education 4.12% joined the military 2,282 received CTE Industry Certifications Total amount of scholarships received $39,673,781 84

85 AdvancEd Summary District that really cares Staff who give extra time Relationships Custodian greeted every student Great place to work Moving best practice to division-wide (operative word systemic ) Seeds of greatness have been sown Superintendent s staff has continuous improvement mindset!bond support by the community Innovative practices with limited funds Continuous improvement and communications mindset Open to change 85

86 Funding Request 86

87 Perfect Storm Lower state funding increases due to lower enrollment Lower state funding due to their revenue forecast Increase in the Employer professional (teacher) VRS rate Increase in Health Insurance rate due to inflation and health claims The past two Local Composite Index adjustments for SCPS have trended upward, meaning less funding from the state Mandatory cost increases in Health Insurance and VRS are significantly outpacing any increases in state or local funding Student demographics with greater needs which warrant additional resources There is a growing shortage of qualified and desired candidates for employment in the public education field 87

88 FY 2018 GAP Closing Measures School Board Budget Cuts Description Cost Savings Superintendent s Budget Gap ($6,475,083) SB Budget Cuts/Adj. $1,722,502 School Board Approved Gap ( ) ($4,752,581) On , the County Administrator s recommended budget included a $268,000 or 0.2% increase in the school division s local transfer 88

89 FY 2018 Budget Request Description Cost Savings 2% COLA (State Portion $1.1M) ($2,162,648) VRS (State Portion $.9M) ($1,385,501) Health Insurance ($1,017,138) Total ($4,565,287) This revised gap reflects a $187,294 State budget increase based on the final numbers received today at 5 p.m. 89

90 Impact of Not Closing Gap Pay Elimination/Modification of COLA Increase Options for School Board Consideration Positions Elimination/Modification of Positions Programs Elimination/Modification of Current Programs Note: The schools division could also be forced to use its health insurance or OPEB reserves to fund recurring expenses and balance the budget. This is not consistent with sound budgeting practices. 90

91 An enlightened citizenry is indispensable for the proper functioning of a republic. Self government is not possible unless the citizens are educated sufficiently to enable them to exercise oversight. It is therefore imperative that the nation see to it that a suitable education be provided for all its citizens. Thomas Jefferson 91

92 Appendix 92

93 Joint Procurements/Shared Services Vendor Description Joint Procurement Anthem Insurance Health/Dental Insurance Yes Evergreen Solutions Compensation Study Yes Revere Gas Propane Yes Anderson Oil Heating Oil Yes James River Petroleum Motor Fuel Yes Eagle Towing Towing Service Yes Cherry Bekaert CAFR Audit Services Yes Bolton Partners GASB 45 Actuarial Services Yes Shared Services SCPS & County Fleet Joint Fleet Maintenance Yes SCPS & County Single Stream Recycling Yes SCPS Safety & Sheriff Risk Management Yes SCPS & Park Recreation Grounds Maintenance Yes 93

94 FY 2018 Approved Budget Investments Description Related Cost 2% Cost of Living Adjustment (COLA) $3,482,935 Mandatory cost increases in health insurance (5.3% employer and 5% employee) $1,137,989 Mandatory cost increase VRS (11%) $2,277,599 Increases in debt service in accordance with the proposed projects in the CIP Reinstatement of hourly cafeteria aides at the elementary level as a Pilot Program (Food Service Fund) $286,314 $188,000 94

95 FY 2018 Approved Budget Investments Description Pilot Academic and Athletic Activity Bus Program ($200,000 operating funds, $27,325 fleet fund) Restoration of Academic and Athletic Stipends by 5% Related Cost $227,325 $55,892 Daily Rate Increase in Substitute Rates of $5 $116,364 Lower the Athletic Fee from $75 to $50 $85,812 Expansion of the REACH SPED program (funded by $135,000 CIP funds) Across the Board Non-compensation Reductions ($1,815,273) 95

96 Critical FY18 Budget Dates Date and Time Budget Meeting/Topic Tues, Feb 28 (6:00 p.m.) School Board Presents FY18 Budget to BOS Tues, March 7 (6:00 p.m.) Joint Budget Work Session Tues, March 14 (4:30 p.m.) Board of Supervisors (BOS) Approves Advertised Tax Rate Tues, March 28 (6:30 p.m.) BOS Public Budget Hearing at Courtland High School Tues, April 11 (4:30 p.m.) BOS Adopts FY18 Budget and Current Year Tax Rates Wed, April 12 (6:30 p.m.) School Board Budget Work Session Mon, May 1 (6:30 p.m.) School Board Adopts FY18 Operating Budget and CIP 96