School Board s Advertised Budget Fiscal Year 2017

Transcription

1 School Board s Advertised Budget Fiscal Year 2017 Ryan Sawyers Chairman, PWC School Board Presented to Prince William Board of County Supervisors April 5, 2016

2 Major Budget Factors 1. Costs associated with 963 additional students for a projected total of 88, Being competitive in salaries & benefits 3. Restoring instructional programs 4. Addressing need to find and acquire additional school sites 5. Seeking to maintain capital infrastructure renewals, maintenance, technology 2

3 Operating Fund & Debt Service Fund Advertised Fiscal Year 2017 FY 2016 FY 2017 Change Percent County $509,145,966 $536,565,070 $27,419, % State $460,831,640 $484,758,125 $23,926, % Federal $37,492,999 $37,530,438 $37, % Other $14,299,976 $15,685,212 $1,385, % Beginning Balance $18,011,314 $12,681,949 ($5,329,365) -29.6% Total $1,039,781,895 $1,087,220,794 $47,438, % By Fund: Debt Service $82,061,299 $88,351,647 $6,290, % Operating $957,720,596 $998,869,147 $41,148, % 3

4 Funding Issues County Revenue Maintains FY Five-Year Revenue Plan State Biennial Rebenchmarking updates cost factors Begins restoration of reductions from prior years Cost of Competing (COCA) $5 million Lottery Funds Partial Pay Raise Virginia Retirement System (VRS) Adjustments Federal Changes in Grants Beginning Balance 4

5 FY 2016 Cost per Pupil Comparison 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 5

6 Cost per Pupil Change Over Time (Adjusted for inflation) 11,000 10,600 10,200 9,800 9,400 9,000 8,600 8,200 7,800 10,776 10,724 10,429 10,383 10,378 10,163 10,365 9,810 9,852 10,158 9,374 9,775 9,577 9,460 9,299 9,081 8,939 8,520 8,538 8,740 8,315 8,380 8,380 6

7 County Funding Prince William County (PWC) funds 49.67% of the combined Operating and Debt Service Funds PWC taxes are approximately 30% less than our neighbors in Northern Virginia. 7

8 State Funding The Commonwealth of Virginia funds approximately 44.23% of the combined Operating and Debt Service Funds Since 2009 the General Assembly has made major reductions in biennial funding to school divisions including: Cap Funding for Support Positions -$754M Adjust Health Care Participation Rates -$269M Remove Expenditures for Certain Equipment, Travel -$244M Eliminate Support for School Construction -$122M Eliminate Non-personal Inflation -$109M K-3 Class Size Changes; Enrollment Loss Assistance -$79M Include $0 Values in Linear Weighted Avg. Calculation -$79M Eliminate COCA for NoVA Support Positions -$50M Extend School Bus Replacement Cycle -$19M Total: -$1,725M 8

9 Growth in Student Membership Past Five Years All Students Special Education 10.3% 11.5% English Lang Learners -1.3% Free/Reduced Lunch 22.3% 0.0% 15.0% 30.0% 45.0% 9

10 Enrollment Trends 98,000 97,188 96,000 94,691 96,122 94,000 93,057 94,286 92,000 91,496 92,687 90,000 88,000 87,500 88,777 88,216 90,064 89,381 91,196 86,000 87,253 84,000 82, FY 2015 Projected FY 2016 Projected 10

11 Impact of 1,000 Additional Students Space annual CIP costs of $36 million 49% of an Elementary School - $14.7 million (approximately 20 trailers) 23% of a Middle School - $12 million (approximately 14 trailers) 12% of a High School - $15 million (approximately 20 trailers) Staffing 43 ES teachers or 60 HS teachers (if all at one school) School administrative - Principals, Assistant Principals Support staff custodial, clerical, security Instructional supplies, materials, equipment, textbooks Non-instructional supplies, equipment Transportation of 700 students 10 buses - $1.1 million 10 drivers 0.6 mechanics/support staff Operating costs (fuel); bus maintenance Central Support Student Learning, Professional Learning, Special Education, Student Services, Accountability, Human Resources, Financial Services, Facilities Services, Risk Management & Security, Information Technology, 1,000 students = $10,724,000 in additional Operating Costs = $4,170,000 in additional Debt Service Costs 11

12 Programs Not Required by State and Federal Law Are not discretionary, but reflect programs which support the School Board s Strategic Plan These are list of programs not required by State and Federal law but which are essential to the School Division and accomplishing the Strategic Plan examples include: Full Day Kindergarten Specialty Schools & Specialty Transportation Costs Middle & High School Sports ES Strings Program Building Maintenance Paying for AP/IB/PSAT Tests Deferral of Capital Improvements Projects (CIP) 12

13 Critical Unmet Needs Approval of a budget and Five-Year Plan each year does not mean everything is OK/funded School Board in FY 2016 directed development of a list of Critical Unmet Needs these include: 215 trailers being utilized daily Overcrowded classrooms (Class Size) Need to restore Instructional budget cuts Maintenance Infrastructure under-funded Technology Infrastructure under-funded No funding to replace student classroom technology Supplies/Materials/Equipment 13

14 Critical Unmet Needs The listing of Critical Unmet Needs was reviewed, updated, and critical areas prioritized. The following items were considered most important for consideration in the FY 2017 budget out of a list of 119 (not listed in priority order): Provide support to schools with significant student achievement challenges with instructional coaching services Fred Lynn MS Response to VDOE Class size reduction for elementary schools with economically disadvantaged K-5 students Provide flexible English Learner Program Instruction for Non-Traditional Schools based on Student Need Retention of Records Restoration of Economically Disadvantaged funds to 2007 Level ITS Budgeting for Results Budget Plan (ZBB) - Identified Critical Needs Fund Additional Attendants for VPI Plus Program Provide AP for ES schools under 600 Provide a math coach in each middle school Web-Based Applicant Tracking Employee Evaluation and Records Management System Behavior Specialists FTE 14

15 The Budget Focuses on Instruction Instruction 78.0% Facilities Management 7.8% Central Support 7.4% General Reserves 1.0% Transportation 5.8% 15

16 FY 2017 Advertised Budget FY 2016 Approved Budget (Operating & Debt Service) $1,039,781,895 Expenditure Changes for FY 2017 Baseline Adjustments $730,377 Baseline Adjustments -$1,539,860 Adjustment for Supplies, Materials, Services (2.0%) $1,174,633 Special Education Staffing 3.6 FTE $243,287 County/Schools Class Size Reduction Grant $2,000,000 Adjustments in Grants & Self-Supporting Programs -$1,147,683 Compensation $19,550,561 Step Increase (average 2.8%) $18,562,447 Pay Plan Adjustment for VRS (1% required by State) $6,650,289 Slippage/Salary Vacancy Factors -$8,423,623 Virginia Retirement System (VRS) Rate Adjustments -$1,753,787 State Group Life Insurance (GLI) Rate $641,739 Health Insurance Cost (5.91% Rate Increase) $3,873,496 16

17 FY 2017 Advertised Budget Expenditure Changes for FY 2017 New Students & Schools $14,660,620 Funding for New Students (Funding for 716, but +963) $6,928,589 Startup Costs for Kyle R. Wilson Elementary School (ES) -$434,000 Fixed Allocation for Kyle Wilson ES $737,660 Startup Costs for Potomac Shores ES $434,000 Startup Costs for Colgan High School (HS) & Aquatics Center -$1,888,000 Fixed Allocation for Colgan HS & Aquatics Center $2,560,913 Thomas Jefferson HS - Facilities Renovation Cost Share $31,110 Net Change in Debt Service Costs (Mortgage) $6,290,348 School Repairs & Renewals (Net Change) $500,000 Repair and Renewal Projects (Additional Projects Bond Funded) $0 Technology Improvement Projects (TIP) Increase $500,000 17

18 Expenditure Changes for FY 2017 FY 2017 Advertised Budget New Resources $17,945,702 Restoration of previous cuts: Class Size Reduction: 8 th, 10 th, 11 th, 12 th, Selected Schools $4,771,021 Economically Disadvantaged At-Risk Funding (K-12) $1,072,670 Elementary School Instructional Positions Funding $3,072,184 Special Education (including 12.0 FTE) $1,218,395 Substance Abuse Specialist $76,137 English Language Learners (ELL) Funding (K-12) $114,228 Gifted Education Funding (K-12) $126,010 Insurances (Workers Compensation, Liability) $500,000 Information Technology (from Zero Base Budgeting Process) $1,393,730 SUBTOTAL: $12,344,375 Additions: State K-3 Class Size Reduction Adjustments $802,201 Ombudsman Customer/Constituent Service $163,034 Information Technology - Federal E-Rate Expansion $1,642,000 18

19 FY 2017 Advertised Budget New Resources (Continued Critical Unmet Needs) At-Risk Program Enhancement $1,111,836 Preschool Program (Staff, Transportation, Start up) $277,438 ADA Compliance (includes 0.5 FTE) $300,234 Special Education Program Staffing (includes 10.0 FTE) $782,388 Additional School Nurses (2.5 FTE) $209,695 Career & Technical Education (CTE) $119,668 Gifted Education $119,668 Student Activities Support $53,165 Information Technology Records Retention $20,000 Reductions -$5,948,361 Bus/Vehicle/Utility Fuel Price Reduction -$2,001,279 Additional Adjustment for Slippage in Compensation -$2,197,082 Reduction in Reserves -$1,750,000 FY 2017 Projected Expenditures $1,087,220,794 FY 2017 Projected Revenues (Operating & Debt Service) $1,087,220,794 Estimated FY 2017 Surplus/Deficit $0 19

20 Capital Improvements Program (CIP) New Schools/Additions Highlights (Partial) Fall 2017 Fall 2018 Fall 2019 Kilby ES Replacement Potomac Shores ES ES Additions Belmont, Henderson, Neabsco ES PACE East Replacement/Alternative School Pattie ES Addition includes consolidation of KG-1 from Washington-Reid PW Parkway ES ES Additions Antietam, Lake Ridge, Springwoods 13 th HS delayed one year to fall th HS delayed one year to fall 2023 Numerous adjustments associated with the shifting of the high schools due to funding in 2019 through

21 Capital Improvements Program (CIP) FY 2017 Highlights Renewals & Repairs Phase 1: Antietam ES, McAuliffe ES, Mullen ES, Westridge ES, Lake Ridge MS, Saunders MS Roof repairs/replacements Gar-Field HS, Hylton HS HVAC upgrades/repairs, roof repairs/replacements, kitchen upgrades, asphalt improvements, Title IX Technology Improvements Plan VoIP/LAN/WLAN School Upgrades/Replacements Data Center/School Upgrades/Replacements Network/Infrastructure/Bandwidth Upgrades/Replacements Begin Required Replacement of Student Information System 21

22 Site Acquisition Issues 16 school sites acquired via proffers since 2000 with an estimated value of $63.8 million 8 school sites acquired via purchase since 2000 with an estimated value of $39.3 million Estimated additional site needs for FY 2017 to FY 2026 range from $45.2 to $66.7 million BOCS change in direction to discourage use of proffers for site acquisition is increasing the funding needs for the School Division 22

23 Future School Site Needs Year to Open Year to Acquire Planned School Facility Property Status Estimated Funds Required (Range in millions) N/A Potomac Shores Proffered N/A N/A PACE East Replacement - Multi Space PWCS Owned -Independent Hill N/A 2017 ES East (PW Parkway) Site Needed $2.8-$4.0 N/A Special Needs Transportation New Dominion PWCS Owned N/A 2016 Western Transportation Facility Site Needed $3.2-$ N/A MS Potomac Shores Proffered N/A ES (Cherry Hill Area) Site Needed $3.0-$ th High School Site Needed $10.6-$ ES (Stonewall/Yorkshire Area) Site Needed $3.0-$ th High School Site Needed $11.0-$ N/A ES (Vint Hill Road) Proffered-Avendale N/A 2019 MS West (Linton Hall Area) Proffered-Avendale N/A Otherwise Site Needed $5.7-$ MS (TBD) Site Needed $5.9-$7.5 Total Estimated Cost of Unfunded Sites $ $66.7 Estimated range based on PWC Proffer Guidelines and recent PWCS land acquisitions 23

24 Portable Classrooms Portables

25 Five-Year CIP Summary FY Projected Growth in Students, (FY ) 7,033 New School Facilities 7 New Elementary Schools 3 New Middle Schools 1 New High Schools 1 Replacements - Kilby Elementary, PACE East 2 School Additions (Classrooms) 111 Elementary School Additions (8 Schools) 81 Middle School Additions (2 Schools) 30 High School Additions 0 Support Facilities Renewal (New Dominion) 0 Support Facilities (Transportation Center West) 1 New School Facilities (FY ) $356,123,000 Classroom Additions (FY ) $109,446,880 Renewals (FY ) $255,818,000 Current Student Capacity 89,815 Proposed Capacity to be Constructed 9,373 Existing Portable Classrooms

26 Five-Year Proposed Budget Plan FY 2017 FY 2021 Description FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Student Membership 88,216 89,381 91,196 92,687 94,286 Student Increase 716 1,165 1,815 1,491 1,599 New Schools Open Current Programs $1,033.5 $1,065.4 $1,092.1 $1,105.6 $1,132.4 New Students $5.8 $17.2 $33.7 $46.9 $61.8 Repairs & Renewals $30.9 $31.2 $51.0 $64.4 $80.1 New Schools $9.9 $12.9 $8.7 $15.1 $15.5 Total Expenditures $1,080.1 $1,126.7 $1,185.5 $1,232.0 $1,289.8 Non-County Revenues $543.5 $569.1 $603.4 $624.1 $654.7 County Transfer $536.6 $557.6 $582.1 $607.9 $635.1 Total Revenue $1,080.1 $1,126.7 $1,185.5 $1,232.0 $1,289.8 Surplus/Deficit $0.0 $0.0 $0.0 $0.0 $0.0 Five-Year Plan Balanced In Accordance With School Board Guidance of September 19,

27 Debt as a Percentage of Operations 10.8% 10.0% PWC Principles of Sound Financial Management 10% Limit 9.3% 8.5% 7.8% 7.0% 7.5% 7.4% 7.4% 7.6% 7.7% 7.3% 8.0% 8.5% 8.4% 8.3% 8.4% 8.5% 8.4% 8.8% 9.2% 9.0% 9.2% 9.2% Debt as a % of Operations 27

28 Financial Achievements Government Finance Officers Association (GFOA): Distinguished Budget Presentation Award for past 16 Years Certificate of Achievement for Excellence in Financial Reporting for past 11 Years Association of School Business Officials International (ASBO): Meritorious Budget Award for past 19 Years Certificate of Excellence in Financial Reporting for past 11 Years 28

29 Economic Impact of PWCS Operating Budget Every $1 spent by PWCS and retained in the County economy results in total spending of $1.64 Every job in PWCS is associated with 1.16 jobs in the County Capital Budget Every $1 of capital spending (on non-land services) and retained in the County economy results in total spending of $1.77 Every $1 million of PWCS capital spending is associated with 7.8 County jobs Each recent PWCS graduating class is associated with between $360 million and $399 million of savings in future public crime prevention, public assistance, and public health care expenditures Due to improved PWCS student performance between 2010 and 2014: PWC property values are between $0.6 and $5.7 billion higher than without the improvement PWC annual property tax revenues are between $7.2 and $68 million higher than otherwise Source: Michael L. Walden, Ph.D. Walden Economic Consulting 29

30 In Summary The School Board develops the budget within the funding amounts provided by the County and State This budget attempts to meet needs for programs and services essential to a quality education We are not meeting the need to reduce class sizes, to provide enough additional permanent building space, provide competitive salaries/benefits, or restore previous cuts Impact on student performance will always be in hindsight As one of the Nation s 100 Best Communities for Young People, we remain committed to Providing A World-Class Education and doing what is best for the more than 88,000 children we expect to educate and serve. The School Division s return on investment has been recognized as the highest in Northern Virginia and among the best in the Commonwealth 30

31 School Board s Advertised Budget Fiscal Year 2017 Ryan Sawyers Chairman, PWC School Board Presented to Prince William Board of County Supervisors April 5, 2016