FY 2018 Proposed Budget Approach VA Code 22.1-92 it is the duty of the division superintendent to estimate the amount of money deemed to be needed during the next fiscal year for the support of the public schools Budget proposal includes only basic needs of the school system with a sustained focus on the Strategic Plan FCPS anticipated continued challenges between basic needs and limited revenue Engaging with the community and county and state elected officials Conducting ongoing reviews of programs and services with a focus on long-term sustainability, including retirement and health benefits Advocating for continuous support from the state and county 4
FY 2018 Proposed Budget Overview $2.8 billion School Operating Fund 4.9% increase over FY 2017 Approved Budget Strategic Plan Priorities Employee Compensation Classroom Resources Required Cost Drivers Enrollment Retirement Health Instruction totals 86% of FCPS Budget 5
Expenditures
Employee Compensation ($ in millions) Step Increases for All Eligible Employees $44.0 Teacher Salary Scale Implementation $33.2 Market scale adjustment included Will require four years to fully implement Nonteacher Scales Implementation $14.9 Market scale adjustment included Scales are for Classroom Instructional Support School-Based Administrators Unified Scales Includes Psychologists, Social Workers, Clerical, Custodial, Technicians, etc. 7
Teacher Salary Scale Implementation Recommend multiyear implementation to close the gap with the projected market average Market average will continue shifting based on the salary increases provided by the surrounding school districts $33.2 million investment recommended in FY 2018 New scale will be fully implemented in FY 2021 with this recommended investment annually 8
Impact of Teacher Salary Investment in FY 2018 9
Classroom and Operational Resources ($ in millions) Support for Preschool $0.5 Textbooks New Investment* $2.7 Assessment Tool (Universal Screener) $2.4 Operational Resources $3.7 *Total cost of the social studies textbook adoption is $7.8 million. The remaining $5.1 million is funded through the textbook reserve. 10
Required Cost Drivers ($ in millions) Enrollment $10.0 Virginia Retirement System $25.5 ERFC (local retirement) Rate Increase $11.4 Benefit Modifications (4.7) Net Increase $6.7 Fairfax County Employee s Retirement System $4.3 Health Insurance Rates $4.7 New Pharmacy Contract Mitigated Rate Increases 11
Enrollment and Student Demographics 1,932 student increase over FY 2017 Approved 133.8 school-based positions necessary based on school staffing formulas $10.0 million cost of enrollment growth and changes in student demographics ($ in millions) General education and advanced academics $11.8 English for Speakers of Other Languages (4.6) Special Education Services 2.1 Psychologists/Social Workers/Substitutes 0.7 Total $10.0 12
Revenue
FY 2018 Revenue Revenue Changes Compared to FY 2017 Approved ($ in millions) County Transfer $108.2 State Aid $14.4 Sales Tax $6.6 City of Fairfax $1.3 Other Revenue $0.8 Budgeted ($6.1) Beginning Balance County and State funding provide nearly 95% of FCPS funding 14
Virginia Governor s Budget Proposal Governor released proposed budget on December 16 $3.3 million more than FCPS projected Eliminates 2.0 percent Compensation Supplement originally included in the state s biennial budget for FY 2018 Provides one-time 1.5 percent bonus effective December 1, 2017 No proposed changes to the accelerated employer contribution rates for VRS General Assembly debates Governor s proposal Jan/Feb State budget is finalized in March FCPS will recommend adjustments to state revenue when the FY 2018 Approved Budget is adopted by the School Board in May 15
Revenue from Fairfax County The FY 2018 Proposed Budget includes a requested increase of 5.7%, or $108.2 million FCPS is requesting a majority of its funding, 72.2%, from local funds as a transfer from Fairfax County 16
State Budget Impact FCPS requested increase in county funding may be impacted by increases in state funding or reductions in required VRS expenditures ($ in millions) FY 2018 Proposed Budget Requested $108.2 Increase in County Funding of 5.7% Revenue Impact from Governor s Budget (3.3) Net Savings to FCPS if the State were to (21.5) Return to the Original VRS Schedule Potentially Lowers Transfer Need to 4.4% $83.3 Does not add due to rounding 17
In Summary
FY 2018 Proposed Budget Summary Budget proposal funds only FCPS basic needs Employee Compensation Classroom Resources Expenditures are also increasing to address requirements for maintaining current programs and services Enrollment growth and student demographic changes Retirement and health increases Additional funding from the county and state is needed to support our basic requirements and to continue our multiyear investment in our employees 19
Significant Reductions Made in Prior Years Since 2008, FCPS has taken significant budget reductions totaling over one-half billion dollars Nearly 2,200 positions eliminated Class size increased 3 times for an increase of 1.5 to 2.0 students per teacher depending on school level Central and school support significantly reduced Programs eliminated, reduced, or redesigned 20
Significant Reductions Made in Prior Years FCPS has fallen behind other school districts, in part due to compensation actions taken to help address budget shortfalls No salary increases in FY 2010 and FY 2011 Contract length reductions No step increases in FY 2010, 2011, 2013, and 2014 Salary increases delayed in FY 2014 and FY 2015 Partial market scale adjustment of 0.62% in FY 2016 21
Budget Process is Ongoing Planning for contingencies is already underway in the event that there is a shortfall in the requested revenue Superintendent has reconvened the Budget Task Force Discussions with the Leadership Team are ongoing School Board will hold public hearings and continue discussions throughout the upcoming months 22
Comparison with Surrounding School Systems FCPS ranks in the middle of surrounding districts for cost per pupil 23
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Budget Calendar FY 2018 Budget Calendar* January 12, 2017 Superintendent releases FY 2018 Proposed Budget January 19 Budget Task Force recommendations submitted to Superintendent January 23 School Board conducts budget work session January 30 School Board holds public hearings on budget (January 31 and February 1 if needed) February 2 School Board conducts budget work session February 9 School Board adopts FY 2018 Advertised Budget February 14 Fairfax County Executive releases FY 2018 Advertised Budget Plan February 28 County Board of Supervisors (BOS) advertises tax rate March 13 School Board conducts budget work session April 4 School Board presents budget to County BOS April 4 6 County BOS holds public hearings on budget April 24 School Board conducts budget work session April 25 County BOS FY 2018 Budget mark up determine budget package and tax rate May 1 School Board conducts budget work session May 2 County BOS approved the FY 2018 Adopted County Budget, tax rate resolution, and transfer amount to schools May 11 School Board FY 2018 Approved Budget presented for new business May 16 School Board holds public hearings on budget (May 17 if needed) May 18 School Board conducts budget work session May 25 School Board adopts FY 2018 Approved Budget July 1 FY 2018 begins *Dates tentative 25
Be Involved in the Budget Process Attend School Board meetings, watch meetings streamed via FCPS website, or view archived videos of past meetings To speak at a School Board meeting, call 571-423-1075 or visit: https://www.fcps.edu/school-board/citizen-participation To speak at a Board of Supervisors public hearing, call 703-324-3151 or visit: https://www.fairfaxcounty.gov/bosclerk/speaker_bos.htm For the latest budget information and budget explainer video visit: www.fcps.edu/budget 26