Budget Presentation March 27, PDF Free Download

Budget Presentation 2017-2018 March 27, 2017

School Board Members Kathe Maneval, Chairman Shelly Laurenzo, Vice Chairman William Foster Rick Wheeler Diana Williams Jeffrey Cassell, Ed.D. Superintendent Vermell Grant Assistant Superintendent Central Office Administrators Bill Staton Director of Finance Sue Wright Director of Instruction Ryan Barber, Ed.D. Director of Student Services Jody Lohr Director of Technology Vonda Hutchinson Coordinator of Employee Benefits/School Nutrition

BUDGET DEVELOPMENT CALENDAR for FY 2017-18 November Budget instructions forwarded to budget managers December Identify preliminary needs and priorities Budget managers submit budget requests Review Governor s State budget projections Revenue projections developed for local and federal funds January Preliminary budget information presented to School Board February February 14, 2017 - School Board Meeting Superintendent Budget Presentation @ City Chambers February 21, 2017 - Budget Work Session & Public Hearing @ Kate Collins Middle School March March 14, 2017 - Regular School Board Meeting - Review budget amendments adopted by General Assembly March 21, 2017 - School Board formally adopts budget March 27, 2017 - Superintendent s Budget Presentation to City Council as per code, School Board must forward budget to City by 4 th Monday in March May - June City Council adopts budget Contracts are created and distributed to employees

Budget Development Date Version Revenue Expenditure Difference January 1, 2017 Budget Based on Governor's Proposal - First Draft 36,096,764 36,720,709 (623,945) January 5, 2017 Budget Based on Governor's Proposal - Second Draft 36,170,234 36,558,573 (388,339) January 19, 2017 Budget Based on Governor's Proposal - Third Draft 36,170,234 36,543,473 (373,239) February 14, 2017 Budget Presentation to School Board 36,170,234 36,326,688 (156,454) February 28, 2017 Budget Based on General Assembly Budget 36,201,051 36,326,688 (125,637) March 2, 2017 Budget Includes 1% Raise for All Employees 36,201,051 36,589,457 (388,406) March 14, 2017 Budget Approved by School Board for Presentation 36,201,051 36,590,698 (389,647) March 27, 2017 Budget Presentation to City Council 36,201,051 36,590,698 (389,647)

Shenandoah Valley Regional Program Waynesboro Public Schools (WPS) joined the Shenandoah Regional Program (SVRP) at the beginning of the 2016-2017 school year. This regional program serves eight school divisions providing special education services for students with intensive support needs and who are expensive to serve. Participation in this program increases the availability of special education services for WPS students and additional resources, including specialized professional development, for staff. WPS receives additional state funding for participating in this regional program, as well as a reimbursement of personnel expenses directly from the SVRP. Participation in this program is budget neutral (revenue matches expenditures). SVRP 2017-18 Budget WPS 2017-2018 Budget Percent of Total Budget Line State Funds 557,653 18,630,242 3.00% Other Funds Reimbursement from SVRP 305,265 815,137 37.44% Total Revenue 862,918 Non-Salary Purchased Services Total Expenses 862,918 862,918 3,007,036 29.70%

Federal Revenues come from four sources State Local Other

State Revenue Increase $1,101,690 Shenandoah Valley Regional Program $557,653 VRS Retirement $116,288 Supplemental Lottery Per Pupil Allocation $433,630 Federal Revenue Increase $25,739 Primarily Title VI-B $25,511 Other Revenue Increase $303,598 Increased revenue due to Shenandoah Valley Regional Program reimbursement. Local Revenue Increase $147,853 Increased revenue based on Revenue Sharing Agreement.

Revenue Budget 2016-17 Adopted Budget 2017-18 Budget Increase/ Decrease Percent Increase Percent Funded State 17,528,552 18,630,242 1,101,690 6.29% 51.46% Federal 2,410,919 2,436,658 25,739 1.07% 6.74% Other 511,539 815,137 303,598 59.35% 2.25% Local Funds 14,171,161 14,319,014 147,853 1.04% 39.55% Total 34,622,171 36,201,051 1,578,880 4.56% 100.00%

FY 2018 Operating Revenue State 51.46% Other 2.25% Federal 6.73% Local 39.55%

Student Demographics Student populations have direct and indirect impacts on expenditures for a variety of programs.

Average Daily Membership March 31 Enrollment FY12 FY13 FY14 FY15 FY16 FY17 FY18 3089 3051 3001 3073 3041 3060* 3040* 3200 3100 3000 2900 2800 2700 2600 * Budgeted Enrollment 2500 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Source: VDOE Annual Supts. Report, Table 1 Membership

Free and Reduced Meal Percentages FY12 FY13 FY14 FY15 FY16 FY17 56.83% 58.21% 57.46% 57.70% 58.97% 57.21% 60.00% 55.00% 50.00% 45.00% 40.00% FY12 FY13 FY14 FY15 FY16 FY17 Source: VDOE Master Schedule Record Collection

English Language Learners (ELL) FY12 FY13 FY14 FY15 FY16 FY17 142 162 170 176 186 190 200 175 150 125 100 75 50 FY12 FY13 FY14 FY15 FY16 FY17 Source: VDOE Master Schedule Record Collection

Special Education Population FY12 FY13 FY14 FY15 FY16 FY17 300 279 257 268 304 321 350 300 250 200 150 100 FY12 FY13 FY14 FY15 FY16 FY17 Source: VDOE Annual Supts. Report, Table 1 Membership

Mission Statement Waynesboro Public Schools is committed to a quality education that includes a strong academic program designed to meet student needs; comprehensive programs which prepare and encourage students to be productive citizens; quality learning environments and school facilities; a diverse, highly trained staff committed to working effectively with youth; and strong partnerships with parents and the community. Student Services Staff Development Instruction Student Achievement Budget Technology Capital Improvements

The Impact of Poverty on Education Economically Disadvantaged students account for 57% of Waynesboro Public School students. Research has demonstrated that living in poverty has a wide range of negative effects on the physical and mental health of children. Poorer children and teens are a greater risk for negative outcomes such as poor academic achievement, school dropout, abuse and neglect, behavioral and socioemotional problems, physical health problems, and developmental delays. The impact of poverty on the school division can be summarized in three categories: Poverty and Academic Achievement Poverty and Psychosocial Outcomes Poverty and Physical Health

Poverty and Academic Achievement Waynesboro Public Schools Comparison of the All Student Category and The Economically Disadvantaged Student Category 2015 2016 SOL Test Results

Poverty Rate and Psychosocial Outcomes Waynesboro Public Schools Student Services Statistics 2016-2017 (August March) Increase in the number of special education students and the number of referrals for evaluation Significant increase in the number of intensive support needs special education students Students with Special Education Individual Education Plans 339 Special Education Referrals 245 Students with 504 Plans 35 504 Plan Referrals 123 Alarming increase in the number and severity of mental health issues, especially at the elementary level. Increased number of students involved with the juvenile court system, including spending time in juvenile detention facilities and then returning to public schools. School social worker and part-time visiting teacher have made over 300 home visits. Each school has an attendance team which meets weekly to address attendance issues, meet with families, and develop attendance plans.

Poverty and Physical Health Waynesboro Public Schools Student Health Statistics 2016-2017 (August February) School Clinic Visits Students Taking Daily Medication Students Taking As Needed Medication WHS 5,595 9 35 KCMS 7,441 29 109 WP 10,874 33 78 WW 6,509 12 28 BG 3,637 14 35 WEN 3,133 6 32 WHC 2,150 3 35 TOTALS 39,339 106 352 These numbers include children with chronic health conditions who require multiple clinic visits daily. These numbers do not include children with asthma who have inhalers. Some students with medication take medication multiple times each day.

The Impact of Poverty on Education Students living in poverty require substantially more resources in order to be successful in school. Their basic needs of food, health care, housing, and safety and security must be met before they are able to successfully participate in the instructional activities and academic opportunities available to them. The responsibility for meeting these basic needs falls to the school division on an increasing basis.

Expenditures $ Non-Salary Salary Benefits

Expenditure Non-Salary Increase $1,130,371 This increase is primarily due to participation in the Shenandoah Valley Regional Program, increased costs of other regional programs, and increased costs of purchased services for maintenance. Regional program costs are paid as non-salary expenditures (purchased services and joint operations) even though the majority of the costs are for salary and benefits in these programs. Other school divisions serve as the fiscal agent for these programs so when their costs increase for employee compensation (raises) or benefits (VRS or health insurance premiums), this increase is passed onto Waynesboro Public Schools as a non-salary expenditure.

Expenditure: Non-Salary Revenue Compared to Inflation National Rate of Inflation 2009-2017: 15.00% Revenue Source 2009-2010 2016-2017 Increase State 15,764,154 17,528,552 11.19% Local 12,379,606 14,171,161 14.47% Since the 2009-2010 school year, state funding for public education has lagged behind the rate of inflation. The City of Waynesboro maintained funding consistent with the cost of inflation over those years. The contribution of the locality does not offset the lack of state funds when considering the rate of inflation. More dramatically, the changing demographics of the student population require more resources in terms of programs, personnel, and interventions in order to meet student needs and promote their academic success. Adequately providing these resources will require increased funding to continue and expand these services.

Expenditure Salary Increase $436,564 This increase is due largely to the inclusion of a 1% raise for all employees. Some costs are associated with personnel added during the current school year in order to meet staffing requirements and student needs.

Expenditure: Salary Teacher Shortage Nation Between 2009 and 2014, enrollment in teacher preparation programs declined nationally by 35%. State Loudon County and the City of Arlington have enough vacancies to hire all education graduates from the State of Virginia this year. Locally EMU graduated 30 students from their education program last year; this year they will graduate 9 students. Bridgewater College has eliminated their special education teacher preparation program based on lack of enrollment. The Shenandoah Valley Regional job fair for educators is sponsored by eight school divisions, including Waynesboro. Ten years ago this event attracted over 500 candidates. This year there 195 candidates registered.

Expenditure: Salary Teacher Salary Comparisons of Surrounding Divisions SCHOOL DISTRICT Entry w/ Bachelors SCHOOL DISTRICT 5 Years Experience SCHOOL DISTRICT 10 Years Experience SCHOOL DISTRICT 15 Years Experience SCHOOL DISTRICT 20 Years Experience SCHOOL DISTRICT 25 Years Experience SCHOOL DISTRICT 30 Years Experience Albemarle County 45,400 Albemarle County 47,700 Albemarle County 50,000 Albemarle County 53,803 Albemarle County 57,605 Albemarle County 62,476 Albemarle County 67,340 Nelson County 45,176 Nelson County 45,176 Nelson County 47,277 Nelson County 49,378 Harrisonburg City 51,913 Harrisonburg City 55,401 Harrisonburg City 63,161 Harrisonburg City 43,023 Harrisonburg City 44,948 Harrisonburg City 46,357 Harrisonburg City 48,694 Nelson County 51,479 Lexington City 53,818 Lexington City 61,793 Rockingham County 42,100 Rockingham County 43,600 Staunton City 45,062 Staunton City 47,126 Lexington City 49,958 Nelson County 53,581 Waynesboro City 57,813 Staunton City 41,200 Staunton City 43,088 Augusta County 44,384 Waynesboro City 46,870 Staunton City 49,286 Staunton City 51,544 Nelson County 57,783 Page County 40,465 Augusta County 42,230 Waynesboro City 44,265 Augusta County 46,648 Augusta County 49,027 Augusta County 51,527 Augusta County 55,125 Augusta County 40,180 Waynesboro City 41,657 Rockingham County 44,100 Lexington City 46,375 Waynesboro City 48,105 Page County 51,492 Page County 55,118 Waynesboro City 40,100 Page County 41,275 Lexington City 43,048 Rockingham County 45,400 Rockbridge 48,052 Rockbridge 51,194 Rockbridge 54,335 Rockbridge 38,910 Rockbridge 40,148 Page County 42,884 Rockbridge 44,911 Rockingham County 47,442 Waynesboro City 51,172 Rockingham County 54,223 Lexington City 38,348 Lexington City 39,958 Rockbridge 41,770 Page County 44,810 Page County 47,301 Rockingham County 50,667 Staunton City 53,905

Expenditure: Salary History of Teacher Raises in Surrounding Divisions School Division 2013-14 2014-15 2015-16 2016-17 2017-18 Five Year Total Staunton City 3.0% 3.0% 3.0% 3.0% 3.00% 15.0% Augusta County 4.0% 3.4% 1.5% 3.0% 2.00% 13.9% Waynesboro City 3.0% 0.0% 1.5% 2.2% 1.00% 7.7%

Cumulative Increases in Inflation and Workers Earnings FY05-FY17 50% 45% 40% 35% 30% 25% Workers' Earnings Overall Inflation WPS Teacher Base Pay 43% 31% 35% 20% 15% 10% 5% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2016. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2016; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2016 (April to April).

Expenditure Benefits Increase $400,982 This increase is primarily due to an increase in the VRS retirement rate. Waynesboro Public Schools has anticipated and budgeted for a 3% increase in health insurance premiums. This increase for health insurance premiums is offset by a decreased number of employees participating in the health insurance program.

Expenditure: Benefits Employer Share for Health Insurance per Tier 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00 Employee Minor Children Spouse Family Waynesboro Schools Staunton City and Schools Waynesboro City Augusta County Schools Additional subsidy for all plans above the employee only plan: Waynesboro Schools Waynesboro City Staunton City and Schools Augusta County Schools Employee 570.00 550.00 524.00 623.00 Minor 135.00 109.00 202.00 157.50 Children 247.00 345.00 403.00 308.00 Spouse 284.00 343.00 383.00 346.00 Family 499.00 648.00 756.00 562.50

Cumulative Increases in Health Insurance Premiums 180% 170% 160% National Health Insurance Premiums National Workers' Contribution to Premiums 140% 141% 120% 100% 80% 60% 40% 20% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2016. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2016; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2016 (April to April).

Cumulative Increases in Health Insurance Premiums FY05-FY17 250% 200% National Health Insurance Premiums National Workers' Contribution to Premiums WPS Health Insurance Total Premium WPS Employee Contibution to Premium 170% 200% 150% 141% 100% 101% 50% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2016. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2016; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2016 (April to April).

Cumulative Increases in Health Insurance Premiums, Inflation, and Workers Earnings, FY05-FY17 250% 200% 150% National Health Insurance Premiums WPS Health Insurance Total Premium National Workers' Contribution to Premiums WPS Employee Contibution to Premium Workers' Earnings WPS Teacher Base Pay 200% 170% 141% 100% 101% 50% 43% 35% 31% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2016. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2016; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2016 (April to April).

Expenditure Budget 2016-17 Adopted Budget 2017-18 Budget Increase/ Decrease Percent Increase Percent Funded Salary 20,468,183 20,904,747 436,564 2.13% 57.13% Benefits 8,043,777 8,444,759 400,982 4.98% 23.08% Non-Salary 6,110,821 7,241,192 1,130,371 18.50% 19.79% Total 34,622,781 36,590,698 1,967,917 5.68% 100%

Proposed Operating Expenditure FY 2018 Non-Salary 19.79% Benefits 23.08% Salary 57.13% Salary Benefits Non-Salary

Current Budget 2016-2017 Adopted Budget 2017-2018 Proposed Budget Increase / Decrease % Change Total % REVENUES ADM Based on 3,040 State - Governor's Biennial Budget 17,528,552 18,630,242 1,101,690 6.29% 51.46% Federal Funds 2,410,919 2,436,658 25,739 1.07% 6.74% Other Funds 511,539 815,137 303,598 59.35% 2.25% Local City Appropriation 14,171,161 14,319,014 147,853 1.04% 39.55% Total Operating Budget Revenues 34,622,171 36,201,051 1,578,880 4.56% 100.00% EXPENDITURES Salaries 20,468,183 20,904,747 436,564 2.13% 57.13% Benefits 8,043,777 8,444,759 400,982 4.98% 23.08% Non-Salary 6,110,821 7,241,192 1,130,371 18.50% 19.79% Total Operating Budget Expenditures 34,622,781 36,590,698 1,967,917 5.68% 100.00% Grand Total Revenues 34,622,171 36,201,051 1,578,880 4.56% Grand Total Expenditures 34,622,781 36,590,698 1,967,917 5.68% Over Budget 389,647

Budget Summary Categorical Expenditures Benefit costs are driving the budget at the expense of employees salaries and the operational needs of the school division. Funds that need to be utilized for employees salaries are being diverted to employee benefits. Benefit costs are outside the control of the school division with the exception of health insurance concerns. Salaries Benefits Non Salary FY12 63.00% 20.00% 17.00% FY13 59.76% 23.59% 16.95% FY14 62.11% 21.81% 16.08% FY15 60.54% 23.67% 15.79% FY16 59.55% 24.19% 16.26% FY17 60.27% 23.64% 16.09% FY18* 59.66% 24.27% 16.07% *FY18 percentages excludes costs of regional programs. Regional programs are paid as non-salary expenditures (purchased services and joint operations) even though the majority of the cost are for salary and benefits at these programs.

Summary Additional funding is needed to operate a quality school division that: Provides necessary resources and appropriate programs to serve all students Maintains, expands, and improves programs that serve at-risk students Regains a competitive position in recruiting and retention of professional staff Offers competitive salaries and benefit packages.

Thank you for your continued support of Waynesboro Public Schools.

Budget Presentation March 27, 2017