FY 2018 2018 Sc Scho hool B Boar ard A d Appr pproved B d - PowerPoint PPT Presentation

FY 2018 2018 Sc Scho hool B Boar ard A d Appr pproved B d Budg dget February 28, 2017 1

Bu Budget Pl 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

Vi Virg rginia Bu Budget Proc Process State Code Section: 22.1-92. 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 §15.2-2503, 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

SCP SCPS Re S Reve venue ue So Sour urces State CIP Local (Loans & Bonds) SCPS Schools Activity Grants Funds (SAF) 4

St State Fun Fundin ding 5

Stan Standards o of Quali uality ( (SO SOQ) Law aw 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 §§ 22.1-253.13:1 through 22.1- 253.13:10, 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

SO SOQ Q Fun Fundin ding – Loca Local E Effor ffort  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

State D Direct ct A Aid d Budget Ca Categor ories  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

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

Deter Determining S SOQ OQ Costs osts 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

FY 17 FY 17 & 18 18 State State B Budge udget H t High ighlights • 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, 2016. • 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

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Divisions & Spotsylvania Sep, Oct) of higher contracted pay before the County Government did not rescind on State rescinded its share of salary increase, as a funding local share of their staff increase result of unexpected decreased revenues 12

Sta tate te Budg dget Hi et Highl hlights ts ( (Con ont. t.) • 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

Sta tate te Reven Revenue e Tren ends ds (All F Funds) State Funds Sales Tax $160 134,461,102 $140 132,444,422 127,339,225 126,064,037 121,068,337 120,619,534 $120 Millions $100 $80 $60 $40 $20 $- FY13 FY14 FY15 FY16 FY17 FY18 Adopted Adopted Adopted Adopted Adopted Approved 14

Local al Fun Fundin ing 15

Co Code o of Virg irgin inia ia • 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 §§ 22.1-253.13:1 through 22.1- 253.13:10 16

Loc Local F Fun unding Contrib ontributi tion E Expec ecta tati tion on ( (Example ples) s) 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

FY1 FY13-FY17 Loc Local R Revenue T Tre rend (L (Less O One ne-Time F Fun unds ds) $124.0 $121.7 $121.4 $122.0 $120.0 $118.0 $116.4 $116.4 $116.0 $114.8 $114.8 $114.0 1.4% 4.2% .0% .0% .0% .2% $112.0 $110.0 FY13 FY14 FY15 FY16 FY17 FY18 (RECM) Over 5 year period average 1% annual increase or $1.4 M 18

Coun unty G Gen eneral F Fun und (GF) Ap Apportionme ment I Increase C Comp mparison 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% 19 From FY 13 through FY18 County General Fund Budgeted increase $35,936,873.

Sch Sch chool chool ool vs. Coun ool vs. Coun County % County % ty % of ty % of of of Coun County County Coun ty Genera ty Genera ral F ral F Fun Fun und und 52.2% FY18 47.8% 51.0% FY17 49.0% 51.1% FY16 48.9% 49.9% FY15 50.1% 49.2% FY14 50.8% 48.5% FY13 51.5% 45.0% 46.0% 47.0% 48.0% 49.0% 50.0% 51.0% 52.0% 53.0% County Schools 20

Sc Scho hool’s Share Share o of County G GF Assuming FY FY13 Alloc ocati tion of of 51.5 .5% vs. . Actu ctual (L (Less O One ne-time Fun unds ds) $131,181,849 FY18 121,661,635 $127,445,075 FY17 $121,375,315 $122,561,614 FY16 $116,432,747 $119,770,618 FY15 $116,415,339 $116,435,114 FY14 $114,830,339 $114,830,339 FY13 $114,830,339 General Fund Transfer Actual General Fund to Schools Assuming FY13 % Transfer to Schools 21 N L i f d

Gran rant Fun Fundin ding 22

Gran rant Fun Fundin ding -$15.6 .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

SA SAF Fun F Fundin ing 24