Frederick County Public Schools. Superintendent s Proposed Budget Fiscal Year 2018

Frederick County Public Schools Superintendent s Proposed Budget Fiscal Year 2018

Superintendent s Budget Message February 7, 2017 School Board, Staff, Students, Parents, and Patrons: Frederick County Public Schools enjoys an outstanding reputation as a school division that is student focused and family friendly. We are striving to build upon that reputation by continuing to focus on our mission of ensuring all students an excellent education. Preparing students to be successful, engaged citizens is our priority each day. Despite the fiscal challenges all levels of government have faced in recent years, Frederick County Public Schools has continued to serve its students and their families well thanks to outstanding support from our community and the tireless efforts of our staff. We have many accomplishments in which we take pride including implementation of fullday kindergarten divisionwide, completing the 1:1 Chromebook initiative in grades 312, strengthening our Career and Technical Education programs, and forming partnerships with others in the community to provide students with real world, handson learning experiences. We ve also continued to invest in our teachers and staff by providing modest salary increases, researchbased professional development, and additional support in the form of instructional coaches. The budget that I ve proposed for FY 2018 seeks to build upon our successes and address the budget priorities established by the School Board. It is important to note that my proposal does not include all of the school division s needs. I, along with the members of the School Board, recognize the fiscal challenges our community continues to face. Therefore, my proposal only seeks to address our most critical needs as well as the increased needs driven by enrollment growth associated with the increased residential development occurring in Frederick County. I invite you to review my proposed budget for FY 2018 and consider the value added to our community by our high quality public education system. Thank you for your continued support. David T. Sovine Superintendent of Schools...to ensure all students an excellent education

Dr. John J. Lamanna, Chairman Member at Large lamannaj@fcpssb.net Mr. Seth T. Thatcher, Vice Chairman Opequon District thatchers@fcpssb.net Mrs. Kali C. Klubertanz Back Creek District klubertanzk@fcpssb.net Mr. Michael A. Lake Gainesboro District lakem@fcpssb.net Mrs. Peggy Clark Redbud District clarkp@fcpssb.net Mr. Jay W. Foreman Shawnee District foremanj@fcpssb.net Mr. Frank E. Wright Stonewall District wrightf@fcpssb.net Dr. David T. Sovine Superintendent sovined@fcpsk12.net School Board Administration Dr. Albert L. Orndorff Assistant Superintendent for Administration orndorfa@fcpsk12.net Dr. James F. Angelo Assistant Superintendent for Instruction angeloj@fcpsk12.net Mrs. Patty D. Camery Executive Director of Finance cameryp@fcpsk12.net Mr. John L. Linaburg Executive Director of Human Resources linaburj@fcpsk12.net Mr. Steve Edwards Coordinator of Policy and Communications edwardss@fcpsk12.net Mrs. Kristen D. Anderson Assistant Director of Finance andersok@fcpsk12.net FY 2018 Budget Development Calendar February 7, 2017 Superintendent s proposed budget and budget work session February 9, 13, and 14, 2017 Budget presentations to staff February 21, 2017 School Board meeting and public hearing on budget February 22, 2017 Joint School Board/Board of Supervisors meeting February 25, 2017 General Assembly adjourns March 7, 2017 School Board meeting and budget work session March 21, 2017 Regular School Board meeting March 22, 2017 Board of Supervisors meeting and budget public hearing April 4, 2017 Regular School Board work session April 12, 2017 Board of Supervisors approval of the FY 2018 budget April 20, 2017 School Board approval of the FY 2018 budget Early to MidMay 2017 Distribution of budget allocations and publish salary scales Late May 2017 Issue contracts and assignment letters July 1, 2017 Fiscal year 2018 begins Budget Framework This publication provides an overview of changes to the school division s programs and activities, which are accounted for in different funds specific to their purpose. The financial charts within this document are often in millions and may not add exactly due to rounding. Total Budget Fiduciary Funds Governmental Funds Proprietary Funds NREP Operating Operating Health Insurance NREP Textbook Debt Service Consolidated Services Private Purpose Funds Construction Capital Projects Textbooks School Nutrition Services Special Grants

It is the mission of the Frederick County Public Schools to ensure all students an excellent education. Organizational planning is guided by the School Board Mission Statement, the Division Comprehensive Plan, the Educational Technology Plan, the Capital Improvement Plan, and the Annual Operating Budget. These planning documents serve as guiding tools for ensuring the students of Frederick County an excellent education. School Board s FY 2018 Budget Priorities FCPS Mission and School Board Budget Priorities Instructional initiatives to address increased accountability and improve student achievement. Compensation packages (salaries, benefits, and professional development) that enable the recruitment and retention of high quality staff. Operational funding to address preservation of assets, replacement school buses, safety and environmental enhancements, and aging infrastructure/systems. Professional development designed to support operational efficiencies and evidencebased instructional practices. Fiscal Year 2018 Budget Proposal at a Glance Enrollment Growth serves an estimated 13,403 students, 286 more students than planned in the prior year s budget. Instructional Staffing requests additional staff in special education, classsize, English language learners, and instructional coaches to improve student achievement. Student Technology Devices provides onetoone devices for student growth and replacements. Compensation provides a division average 2.5% step movement and addresses certain scales based on market comparisons. Infrastructure partially restores replacement cycle funding for technology, facilities, school buses, and support departments. Requests Additional County Funds $5.7 million for daily operations and $3.0 million for capital items. Delays Some Needs and Requests diligently cuts $3.4 million in requests and delays some compensation improvements. All Funds Summary Budget Dollars and FullTime Equivalent (FTEs) Positions FY 2017 Approved Budget FY 2018 Proposed Budget FY18 Increase/(Decrease) $ FTEs $ FTEs $ FTEs Operating $ 153,211,000 1,954.4 $ 162,620,100 1,974.4 $ 9,409,100 20.0 Debt Service $ 16,446,289 $ 16,396,229 $ (50,060) Capital Projects $ 3,000,000 $ 4,228,500 $ 1,228,500 School Nutrition $ 6,669,757 93.7 $ 7,552,580 93.7 $ 882,823 Textbook $ 2,666,452 0.5 $ 3,937,383 0.5 $ 1,270,931 NREP $ 5,396,744 72.4 $ 5,576,899 73.4 $ 180,155 1.0 Consolidated Services $ 3,600,000 14.4 $ 3,600,000 14.4 $ Private Purpose $ 75,000 $ 75,000 $ Special Grants $ $ $ Health Insurance Reserve $ $ $ Construction $ 1.0 $ 1.0 $ Total $ 191,065,242 2,136.4 $ 203,986,691 2,157.4 $ 12,921,449 21.0 Special Grants, Health Insurance Reserve, and Construction fund appropriations will be determined after June 30, 2017.

Operating, Debt Service, and Capital Projects Funds Operating, Debt Service, and Capital Projects funds are affected by the financial support of the local governing body, the Frederick County Board of Supervisors. The budget proposal requests $99.7 million from the Frederick County Board of Supervisors for FY 2018. This request is a $8.7 million increase compared to the FY 2017 funding level of $91.0 million. $ in Millions Operating Debt Service Capital Projects Total Revenues State 75.9 0.1 $ 76.0 Federal 5.0 0.3 $ 5.3 Local 1.0 $ 1.0 County Transfer 80.8 16.0 3.0 $ 99.7 Fund Transfer 0.6 $ 0.6 Beginning Balance 0.7 $ 0.7 Total Revenues $ 162.6 $ 16.4 $ 4.2 $ 183.2 Expenditures Instruction 123.3 $ 123.3 Administration 4.5 $ 4.5 Attendance & Health 2.8 $ 2.8 Pupil Transportation 9.6 1.4 $ 11.0 Facilities, Oper. & Maint. 15.0 2.4 $ 17.4 Technology 6.8 0.5 $ 7.3 Transfers 0.6 0.6 $ 1.2 Debt Payments 15.8 $ 15.8 Total Expenditures $ 162.6 $ 16.4 $ 4.2 $ 183.3 School Operating Fund $162.6 Million Total Fund The School Operating Fund accounts for the largest portion of the daily operational costs of the school division. The chart below illustrates the School Operating Fund proposed $162.6 million budget for fiscal year 2018. The FY 2018 operating expenditure proposal valued at $162.6 million is a 6.1 percent increase compared to the prior year. The expenditure proposal continues existing programs and addresses school board priorities instructional best practices supporting student achievement, infrastructure needs to support 13,403 students, and a salary initiative to retain and attract highly qualified staff. The Revenues bar shows projected available revenues of $156.9 million from all sources. Additional funds of $5.7 million from the Frederick County Board of Supervisors are requested to balance operational needs for the FY 2018 budget. $5.7 Million Operating Funding Shortfall Revenues $156.9 $5.7 Expenses $162.6 $ $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 FY18 Expenditure Proposal State, Federal, Misc., & County Additional County Request

School Operating Fund Expenditure Changes Operating fund expenditures are proposed to increase by $9.4 million to $162.6 million compared to the FY 2017 budget. Baseline Budget Adjustments $3.9 million Baseline adjustments are expected changes in existing personnel and compensation, utilities, fuel, materials, textbooks, and program commitments. These baseline budget adjustments result in an increase of $3.9 million in expenditures primarily due to increases for health insurance, utilities, fuel, and increased payments to Virginia Retirement System (VRS) under Governor McAuliffe s budget proposal. Instructional Priorities $1.1 million To assist with improving student achievement and course offerings, 14 new instructional positions and services are proposed at an estimated cost of $1.1 million. These positions include teachers to address enrollment growth, a technology resource teacher, behavioral specialists, an English language learning teacher, a data specialist, and elementary instructional coaches. Instructional Staffing Comparisons Position Virginia Average* Frederick County* Elementary teachers 75.3 71.2 Secondary teachers 80 83.5 *Teachers per 1,000 students As the table above illustrates, FCPS has less elementary teachers (regular classroom, resource, and special education) per one thousand students than the state average and is slightly higher at the secondary level. Overall, this comparison results in a shortfall of 47 teachers divisionwide. FY 2018 Proposed Expenditure Adjustments Changes from the FY 2017 Approved Operating Budget $ in Millions Baseline Budget Adjustments Retirement rate $ 1.5 Health insurance premiums $ 1.3 Inflation, regional schools, and grants $ 1.1 Instructional Priorities Enrollment growth, course offerings, & special education $ 0.8 Instructional coaches $ 0.3 Operations and Infrastructure Technology equipment replacement and capacity $ 0.1 Facilities maintenance staffing and asset preservation $ 0.2 Student transportation replacement buses $ 0.3 Compensation Salary increase (division average 2.5%) $ 2.9 Targeted, marketable adjustments for selected scales $ 0.9 Total Budget Increase from Prior Year $ 9.4 How does FCPS use its operational funding? FY 2018 Proposed 6% 2% 3% 9% 4% $162.6 Million Numbers may not add correctly due to rounding. 76% Instruction Attendance & Health Administration Pupil Transportation Facilities, Operations & Maintenance Technology Operations and Infrastructure Priorities $0.6 million To support infrastructure and preservation of assets, $0.6 million more is requested for technology, facilities, and transportation. Technology $0.1 million Of the $0.6 million total request, $0.1 million will replace aging audiovisual equipment, projectors, and upgrade internet capacity to support increased internet usage in instruction. Three years ago, FCPS began investing in technology devices for its 1:1 technology initiative for grades two through 12 and group devices for kindergarten and first grade students. FCPS technology assets are valued at just over $7.5 million. A portion of this investment currently includes more than 9,000 Chromebooks and over 200 tablets for student instructional use.

School Operating Fund Expenditure Changes (continued) Facilities Maintenance $0.2 million This budget proposal requests $0.2 million to partially restore preventative and routine buildings and grounds maintenance funds and an additional maintenance technician to support 2.6 million square feet of building space over 24 sites. Onethird of the 24 sites are 40 or more years old. According to Virginia Department of Education data, the state average for maintenance technicians per student is one technician per 467.1 students. FCPS has one technician per 682.1 students. In order to obtain the state average, seven technicians would be needed. This budget requests one technician to begin to address the gap between the FCPS staffing ratio and the state average. Student Transportation $0.3 million This budget proposal requests $0.3 million in additional funds to replace three school buses. Based on the size of FCPS bus fleet of 207 buses, FCPS should have recurring operational funds to replace 13 buses each year. Currently, FCPS has funding for two replacement school buses in the School Operating Fund. The data chart below illustrates the impact of not having funds available to support the regular replacement of school buses. In 2009, 72 school buses were five or less years old compared to 30 today. In 2009, only 35 school buses were 16 or more years old compared to 58 today. Comparison Number of Buses by Age Number of Buses by Year Age group 2009 2017 5 years or less 72 38 6 to 10 years 53 67 11 to 15 years 44 44 16 years or greater 35 58 Average age 9.5 12.0 2009 included operating funds to replace 11 buses 2017 includes operating funds to replace 2 buses Compensation Plan $3.8 million Education is labor intensive; therefore, compensation must be competitive to recruit, retain, and recognize quality staff. This budget proposal requests $3.8 million to address staff salaries. The plan includes $2.9 million (or about 2.5 percent increase divisionwide) recognizing the value of experience on current pay scales. The salary plan also includes $0.9 million to begin improving certain pay scales in order to make them more competitive with comparable jobs in the marketplace. This salary request will not match the marketplace, but progresses to the market benchmark. Salary scales needing improvement include bus drivers, instructional aides, nurses, psychologists, interpreters, specialists, certain instructional administrators, and information technology. $3.8 Million Compensation Plan $0.9 Step Increase Targeted Enhancements $2.9

School Operating Fund Revenues The School Operating Fund is supported by three primary revenue sources: county, state, and federal. FY 2018 revenues are proposed to be $162.6 million, which represents a $9.4 million (6.1 percent) increase over FY 2017. Category School Operating Fund Revenue ($ in Millions) FY 2017 Approved FY 2018 Proposed FY18 $ Increase/ (Decrease) FY18 % of Total Revenue State Sales Tax 14.9 14.6 (0.3) 9.0% State Aid 57.5 61.2 3.7 37.6% Federal Aid 4.7 5.0 0.3 3.1% Tuition, Fees & Other 1.1 1.0 (0.1) 0.6% Subtotal Receipts $ 78.2 $ 81.9 $ 3.7 50.3% County Transfer 75.0 80.8 5.7 49.7% Total School Operating Fund $ 153.2 $ 162.6 $ 9.4 100.0% State Aid and Sales Tax Revenues State aid and sales tax revenues are projected to provide $75.9 million or 46.6 percent of FCPS operating funds. This projection is based on Governor McAuliffe s amendments to the 20162018 state biennial budget providing $3.7 million more state aid and $0.3 million less sales tax funds for FCPS. Additional aid funds are due to an expected student enrollment increase of 286 students, the state s share of the Virginia Retirement System benefit rate increase, and supplemental lottery proceeds. Federal Aid Revenues Federal revenues are restricted for special purposes and programs including special education, improving literacy and math skills for disadvantaged students, improving teacher quality through training and mentoring, and English language learners. Tuition, Fees, and Other Revenues Miscellaneous revenue is projected to be $1.0 million and includes rental revenue for the use of facilities, special fees charged to students such as parking permits, tuition for outofcounty/state students, erate program funds, rebates, and donations to the school division. County 49.7% State Aid (in millions) Student enrollment growth $ 1.4 VRS rate increase $ 0.6 Supplemental lottery per student $ 1.4 Other state aid $ 0.3 Total State Aid Funding Changes $ 3.7 Where does FCPS get its funding for daily operations? FY 2018 Proposed Federal Aid 3.1% State Sales Tax 9.0% $162.6 Million State Aid 37.6% FY18 Increase (Decrease) County Transfer of Funds from Frederick County Board of Supervisors A total of $80.8 million is requested from the Board of Supervisors for the School Operating Fund for FY 2018. This represents a $5.7 million increase over current funding for the operating fund. Tuition, Fees & Other 0.6%

Debt Service Fund $16.4 Million Total Fund The Debt Service Fund pays the principal and interest on loans to finance school construction. County dollars support this fund. Additional construction loans are not planned for FY 2018. A $0.6 million fund transfer to the Capital Projects Fund is planned for FY 2018. Debt Service Fund Revenue and Expenditure Statement ($ in Millions) FY 2015 FY 2016 Approved FY 2017 Proposed FY 2018 BEGINNING BALANCE, JULY 1 $ 0.9 $ 0.3 $ 0.1 $ 0.0 RECEIPTS/TRANSFERS IN: Federal Receipts 0.3 0.3 0.3 0.3 VPSA Credits 0.1 0.1 0.1 County General Fund 14.6 14.6 16.0 16.0 Total Receipts & Transfers $ 14.9 $ 15.0 $ 16.3 $ 16.4 TOTAL FUNDS AVAILABLE $ 15.8 $ 15.3 $ 16.4 $ 16.4 EXPENDITURES: Payment of Principal 9.2 10.1 10.9 10.8 Payment of Interest 4.7 5.0 5.6 5.0 Transfer to Other Funds 1.6 0.6 Total Disbursements $ 15.5 $ 15.2 $ 16.4 $ 16.4 Revenues Over (Under) Expenditures ENDING BALANCE, JUNE 30 $ 0.3 $ 0.1 $ $ Future Debt Service Based on the Capital Improvement Plan (CIP) As the following graph illustrates, current debt service on existing buildings is decreasing. Additional county funds above $16.0 million will be needed beginning in FY 2019 based on the CIP s top three construction priorities: construction of the fourth high school, Armel Elementary School addition, and the 12th elementary school. $25.0 Projected Debt Service Totals FY17 FY27 $20.0 $15.0 $5.2 $8.5 $11.1 $10.9 $10.7 $10.4 $10.1 $9.8 $9.6 $10.0 $5.0 $16.4 $15.8 $14.8 $14.1 $13.2 $12.8 $11.2 $10.0 $8.8 $7.6 $6.8 $0.0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Existing debt service CIP debt service Current County funding level ($16 million)

Capital Projects Fund $4.2 Million Total Fund The Capital Projects Fund provides for major maintenance or replacement projects that are not major construction projects and not supported by the School Operating Fund. The county s proffer program, county general fund monies, school carryforward funds from prior years, and/or shortterm financing through the Virginia Public School Authority are sources of revenue for this fund. This budget proposal requests $3.0 million for infrastructure facilities maintenance on aging buildings and equipment, information technology devices, school buses, and fleet vehicles. Facilities Project Description Cost Justification Playground replacements $ 0.3 Age and condition of playgrounds at Armel and Orchard View Roof replacements $ 0.8 Age over 20 years and leaking conditions at Redbud Run Equipment replacement $ 0.8 Cooling towers, blackflow preventers, and public address systems at various locations Grounds maintenance $ 0.1 Aging condition of tennis courts at James Wood High General maintenance $ 0.3 Accumulated projects (flooring, paving, etc.) due to limited operating funds covering $450 million in building assets, 732 acres of land, and 2.6 million square feet. Other $ 0.2 Painting all elementary schools and secure entrances at middle schools Facilities $ 2.4 Transportation Ten replacement buses $ 1.0 Aging bus fleet due to delayed replacement cycle funds 15 replacement vehicles $ 0.4 Aging service trucks and fleet cars due to delayed replacement cycle Transportation $ 1.4 Information Technology Staff replacement devices $ 0.2 Replacement of 7,940 desktop, laptop, and Chromebook devices based on replacement cycle Student devices $ 0.1 Replacement of 3,199 and addition of 550 new Chromebooks for 1:1 student usage Other equipment $ 0.2 Replacement of wireless access points and projectors Technology $ 0.5 Capital Projects Planned for FY 2018 $ in Millions Total Capital Projects $ 4.2 Numbers may not add due to rounding.

Other Funds Construction Fund The Construction Fund provides for all new facilities and most facility renovations and expansions. Projects are approved through the county s Capital Improvement Plan process and are then approved by the Frederick County Board of Supervisors. Funding for projects is provided primarily through the sale of Virginia Public School Authority bonds. Virginia Literary Fund monies are available under certain circumstances, and county funding may also be used in lieu of incurring debt. The current Capital Improvement Plan lists the following construction projects as top priorities: Construction of the fourth high school Addition and renovation to Armel Elementary School Design and construction of the 12th elementary school School Nutrition Services Fund $7.6 Million Fund Total This special revenue fund provides for all school nutrition services operating and administrative costs. The fund is supported by food sales and is also subsidized by federal and state funds for the school lunch and breakfast programs. Just over 1.5 million meals are projected to be served in FCPS 19 school cafeterias 8,500 meals per day. Thirtythree percent of students are eligible for free/reduced priced meals. Fortyeight percent of students participate in the school lunch program, and fourteen percent of students participate in the breakfast program. A ten cent increase on fullpriced lunches is proposed in this budget to align prices to the federal reimbursement rate. Revenues support salaries and benefits for 93.7 fulltime equivalent staffing positions directly and indirectly serving meals to students. School Nutrition Services Fund Revenue and Expenditure Statement ($ in millions) Approved Proposed FY 2015 FY 2016 FY 2017 FY 2018 BEGINNING BALANCE, JULY 1 $ 1.4 $ 1.6 $ 1.6 $ 2.3 RECEIPTS: Sales, Interest, Rebates 2.4 2.4 2.6 2.7 Federal 2.3 2.5 2.5 2.6 Total Revenue $ 4.7 $ 4.9 $ 5.1 $ 5.3 TOTAL FUNDS AVAILABLE $ 6.1 $ 6.4 $ 6.7 $ 7.6 EXPENDITURES: Salaries and Benefits 2.4 2.4 2.7 2.9 Food 1.8 1.9 2.0 2.0 Services, Supplies, Capital 0.3 0.3 0.4 0.4 Total Disbursements $ 4.5 $ 4.5 $ 5.1 $ 5.3 Revenues Over (Under) Expenditures 0.2 0.4 ENDING BALANCE, JUNE 30 $ 1.6 $ 1.9 $ 1.6 $ 2.3

Other Funds Textbook Fund $3.9 Million Fund Total This special revenue fund provides for the purchase of adopted textbooks to support the curriculum of FCPS. It is funded by state and local funds. Disbursements for textbooks are determined by an adoption schedule set by the Virginia Department of Education. The textbooks planned for adoption in FY 2017 are delayed to FY 2018 and include elementary, middle, and high school social studies and high school science. FY 2015 FY 2016 Approved FY 2017 Estimated FY 2017 Proposed FY 2018 BEGINNING BALANCE, JULY 1 $ 1.4 $ 1.1 $ 1.2 $ 1.7 $ 2.5 RECEIPTS: State Aid 0.8 0.8 0.9 0.9 0.9 Miscellaneous 0.0 0.0 0.0 0.0 0.0 Total Receipts $ 0.8 $ 0.8 $ 0.9 $ 0.9 $ 0.9 TRANSFERS IN: School Operating & Trust Funds $ 0.5 $ 0.5 $ 0.6 $ 0.6 $ 0.6 TOTAL FUNDS AVAILABLE $ 2.7 $ 2.3 $ 2.7 $ 3.2 $ 3.9 EXPENDITURES: Textbook Fund Revenue and Expenditure Statement ($ in millions) Total Disbursements $ 1.6 $ 0.6 $ 2.5 $ 0.7 $ 2.5 ENDING BALANCE, JUNE 30 $ 1.1 $ 1.7 $ 0.2 $ 2.5 $ 1.4 NREP Operating and Textbook Funds $5.6 Million Combined Fund Total The NREP operating and textbook funds are fiduciary funds that provide for the operation of the Northwestern Regional Educational Programs (NREP), jointly operated and supported by Frederick County, Winchester City, and Clarke County schools. The program provides special education services to approximately 250 identified preschool and schoolage students. NREP serves students with emotional disabilities, students with autism, students with severe or profound physical or cognitive impairments, those with multiple disorders, and students with other areas of disability. Billings to the participating localities based on projected student enrollment are the primary revenue sources for the operating fund. Consolidated Services $3.6 Million Fund Total This proprietary, enterprise fund captures building maintenance services for county buildings and the regional library. The fund also provides vehicle maintenance services and fuel to FCPS, Frederick County government, and other agencies vehicles through the division s transportation facility. Funding is provided by billings to the agencies receiving services. Consolidated Services Fund Revenue and Expenditure Statement ($ in millions) FY 2015 FY 2016 Approved FY 2017 Proposed FY 2018 BEGINNING BALANCE, JULY 1 $ 0.3 $ 0.4 $ $ RECEIPTS: Billings for Services 2.9 2.6 3.6 3.6 Other Funds 0.0 0.0 0.0 Total Receipts $ 2.9 $ 2.6 $ 3.6 $ 3.6 Total Funds Available $ 3.2 $ 2.9 $ 3.6 $ 3.6 EXPENDITURES: Salaries and Benefits 0.9 0.9 0.9 1.1 Services, Supplies, and Other Charges 1.9 1.6 2.7 2.5 Total Disbursements $ 2.8 $ 2.5 $ 3.6 $ 3.6 ENDING BALANCE, JUNE 30 $ 0.4 $ 0.4 $ $

Other Funds Health Insurance Reserve Fund This proprietary fund accounts for all activity associated with employee health insurance costs and premiums. Under a selfinsured program, the insured group pays for all medical and dental costs. Premiums are set based on anticipated claims for the upcoming plan year. If claims exceed premium contributions, the fund balance can be used to offset the deficit. Medical and dental plan claims for FY 2018 are anticipated to be about $20.0 million. Health Insurance Reserve Fund Revenue and Expenditure Statement ($ in millions) Expected Projected FY 2015 FY 2016 FY 2017 FY 2018 BEGINNING BALANCE, JULY 1 $ 3.6 $ 3.6 $ 1.9 $ 1.9 RECEIPTS: Interest 0.0 0.0 0.0 Premiums Collected 16.1 16.3 18.8 20.0 Total Revenue $ 16.1 $ 16.4 $ 18.9 $ 20.0 TOTAL FUNDS AVAILABLE $ 19.7 $ 20.0 $ 20.7 $ 21.9 EXPENDITURES: Payment of Medical Claims 14.8 16.8 17.7 18.7 Payment of Dental Claims 1.0 1.1 1.0 1.1 Contracted Activities 0.3 0.3 0.2 0.2 Total Disbursements $ 16.1 $ 18.1 $ 18.9 $ 20.0 Revenues Over (Under) Expenditures 0.0 (1.8) ENDING BALANCE, JUNE 30 $ 3.6 $ 1.9 $ 1.9 $ 1.9 Special Grants This special revenue fund accounts for revenue received from designated sources for specified purposes over a multiple year period of time or serving multiple jurisdictions or agencies. Private Purpose Funds $75,000 Fund Total These fiduciary funds include two funds the School Private Purpose Trust Income Fund and the School Private Purpose Endowed Trust Fund. Funds are provided through private donors and are restricted for special purposes. Scholarships and other initiatives associated with the School Board s mission such as Bright Futures are examples of the types of activities accounted for in these private purpose funds.

Number of Teachers Fiscal Year 2018 Superintendent s Proposed Budget Division Information Division Staffing FCPS division staffing for FY 2018 is proposed to be 2,157.4 fulltime equivalents (FTEs) to serve 13,403 students. Eightyfour percent of 2,157.4 FTEs are schoolbased positions directly serving the needs of students. Another 10 percent of staff are also directly serving students by transporting them to and from school. New Positions Proposed FTE's Classroom teachers 8.0 Elementary instructional coaches 3.0 Behavior specialists 2.0 Technology resource teacher 1.0 Instructional aides 3.0 Language interpreters 2.0 Maintenance technician 1.0 Data specialist 1.0 Total 21.0 Divison Staffing FY 2017 FY 2018 Proposed (all funds) Adjusted Proposed Increase Schoolbased teachers 1,151.2 1,164.2 13.0 Schoolbased instructional assistants 250.4 255.4 5.0 Schoolbased support 390.0 390.0 Pupil Transportation 226.4 226.4 Nonschoolbased 118.4 121.4 3.0 Total Positions 2,136.4 2,157.4 21.0 Teacher Qualifications and Experience Almost 60 percent of FCPS teachers have a master s degree or higher education level. Almost half of FCPS teachers have ten years experience or less. Teachers holding a master s degree receive $4,028 in addition to the base salary. 300 FCPS Teacher Experience & Academic Degree 250 200 150 100 50 0 5 6 10 11 15 16 20 21 25 26 30 31 35 36+ Years Experience Bachelor's Master's Master's Plus

Pupil to Teacher Ratio Fiscal Year 2018 Superintendent s Proposed Budget Student Enrollment and Class Sizes Student enrollment is projected to be 13,403 for FY 2018. As student enrollment increases, class sizes and building capacities are examined to project when more staffing and new schools will be needed. Since 2009, class sizes have grown at the elementary and high school levels but remain within the Standards of Quality and Standards of Accreditation requirements. FCPS Membership Fiscal Grades Grades Grades Year K5 68 912 Total 2006 5,449 3,003 3,771 12,223 2007 5,586 3,022 3,988 12,596 2008 5,739 2,962 4,204 12,905 2009 5,837 2,930 4,146 12,913 2010 5,896 2,950 4,189 13,035 2011 5,956 2,976 4,111 13,043 2012 5,926 3,070 4,033 13,029 2013 5,980 3,110 3,976 13,066 2014 5,968 3,108 3,969 13,045 2015 5,939 3,063 4,090 13,092 2016 5,884 3,029 4,179 13,092 2017 5,934 3,109 4,203 13,246 Membership Projections 2018 6,027 3,177 4,199 13,403 2019 6,007 3,306 4,097 13,410 2020 6,020 3,358 4,098 13,476 2021 6,037 3,399 4,246 13,681 2022 6,112 3,301 4,386 13,798 Cost Per Student 25.0 24.0 23.0 22.0 21.0 20.0 19.0 18.0 Fall Average Class Sizes 2009 2010 2011 2012 2013 2014 2015 2016 Elementary 19.6 20.1 20.1 20.6 20.3 20.4 20.2 20.2 Middle 24.5 24.3 24.4 24.3 23.5 22.5 22.1 22.6 High 20.9 22.5 21.9 22.3 23.7 22.3 23.2 23.0 Based on the most current information (FY 2015) from the Virginia Department of Education, Frederick County Public Schools cost per pupil continues to be less than the state and regional averages. FCPS cost per student is projected to be $11,409 for FY 2016 and $12,020 for FY 2017. State and regional comparisons for those years are not yet available. Under the FY 2018 budget proposal, the FCPS cost per student is projected to be $12,748. Cost Per Pupil Comparison FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017B* FY 2018P** Winchester City 11,369 11,987 12,126 12,587 Clarke County 9,637 10,656 10,556 11,096 Warren County 8,549 9,020 9,649 9,900 Loudoun County 12,429 13,106 12,611 12,915 Shenandoah County 10,741 10,502 9,561 10,137 Fauquier County 11,014 11,746 11,920 12,173 Frederick County 9,970 10,472 10,483 11,009 11,409 12,020 12,748 State Average 10,969 11,527 11,242 11,523 TBD TBD TBD Regional Average 10,530 11,070 10,987 11,402 TBD TBD TBD TBD = to be determined (not yet published by the Virginia Department of Education) * FY 2017B = budgeted **FY 2018P = proposed

NOTICE OF NONDISCRIMINATION In compliance with the Executive Order 11246; Title II of the Education Amendments of 1976; Title VI of the Civil Rights Act of 1972; Title IX Regulation Implementing Education Amendments of 1972; Section 504 of the Rehabilitation Act of 1973; and all other Federal and State laws and school policies and regulations, Frederick County Public Schools does not discriminate on the basis of race, color, national origin, religion, sex, age, political affiliation, disability, or veteran status in the education program and activities, or employment and provides equal access to the Boy Scouts and other designated youth groups. It is the intent of Frederick County Public Schools to comply with both the letter and spirit of the law in making certain that discrimination does not exist in its policies, regulations, and operations. Grievance procedures, for Title IX and Section 504, have been established for students, their parents, and employees who feel discrimination has been shown by the school division. All students attending Frederick County Public Schools may participate in education programs and activities, including but not limited to health and physical education, music, and career and technical education. Educational programs and services will be designed to meet the varying needs of all students and will not discriminate against any individual for reasons of race, color, national origin, sex, religion, age, political affiliation, disability, or veteran status. Questions concerning the application of this nondiscrimination policy may be made to: Title IX Coordinator (Adults) Title IX Coordinator (Students) Section 504 Coordinator John Linaburg Executive Director of Human Resources 1415 Amherst Street Winchester, VA 22601 5406623888 Charles M. Peeling Director of Student Support Services 1415 Amherst Street Winchester VA 22601 5406623888 Michele Sandy Director of Special Instructional Services 1415 Amherst Street Winchester VA 22601 5406623888 1415 Amherst Street Post Office Box 3508 Winchester, Virginia 22604 5406623888 For the most current budget information, visit us at www.frederick.k12.va.us. Budget developments may also be followed at www.twitter.com/fcpsbudget.