Northampton County Public Schools Budget Overview Proposed - PowerPoint PPT Presentation

Northampton County Public Schools Budget Overview Proposed 2019-2020 Operating Budget March 26, 2019

Our Mission and Vision • Northampton County Public Schools, in partnership with the entire community, will create a safe and nurturing environment for all students, regardless of gender, ethnicity, socio- economic status, language or disability. NCPS will encourage and empower all students to meet high academic standards, demonstrate responsible citizenship, and graduate with the knowledge, skills and abilities necessary to compete in a global economy.

Our Average Daily Membership The budget has been developed using an estimated ADM of 1500. 2050 2002 1953 1950 1890 1850 1812 3/31 1757 1750 1736 ADM 1697 1676 1650 1671 1586 1574 1565 1560 1550 1515 1500 1538 1528 1450 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* Fiscal Year * Projected/Budgeted

Our Local Composite Index • This is the most significant factor in determining NCPS’ share of State funding. • Formula is based on the following factors from a “base year” (FY2015 for FY19&20): • True Value of Real Property (50%), Adjusted Gross Income (40%), Taxable Retail Sales (10%) • Locality’s population, State’s population, NCPS ADM, and State-wide ADM are also factors. • For the 2019 & 2020 biennium, the LCI decreased by .02% from the previous biennium, representing a shift of funding responsibility from the Locality back to the State. 0.6000 0.5482 0.5109 0.5103 0.4910 0.4746 0.4838 0.5000 0.3925 0.4000 0.3555 0.3407 0.3000 0.2000 0.1000 0.0000 FY 03+04 FY 05+06 FY 07+08 FY 09+10 FY 11+12 FY 13+14 FY 15+16 FY 17+18 FY 19+20

STATE BUDGET INCREASE vs CHANGE IN TOTAL BASIC AID 2008-09 to 2018-19 Fiscal Year State Operating Total Basic % Basic Aid Budget Aid of Total State All Divisions Budget 2008-09 $37,057,207,663 $3,459,313,849 9.34% 2018-19 $56,962,678,129 $3,343,800,247 5.87% % Increase/Decrease 53.72% -3.34% over the decade Basic Aid to Schools The State’s budget has has decreased 3.34% increased by 53.72% over the past decade. over the past decade.

STATEWIDE FUNDING REDUCTIONS SINCE FY 10 • Support Cap 754,000,000 • Construction Grants 55,000,000 • Health Care Contribution 269,000,000 • Eliminate SOQ Funding for Various Expenditures 244,000,000 • Include $0 Values in Calculation 79,000,000 • K-3 Class Size Cut 36,000,000 • Bus Replacement Cycle (12 Yr. to 15 Yr.) 19,000,000 • Inflation Update (some has been restored) 109,000,000 • Cost Of Competing for N. Va. Support Positions 28,000,000 • Increase Federal Deduct Percentage 34,000,000 BIENNIAL TOTAL $1,627,000,000

WHY WERE THE CUTS MADE? COST OF RE-BENCHMARKING Biennium Increase Over Previous Biennium 2006-2008 $1.5 Billion 2008-2010 $1.1 Billion Impact of Reductions on Funding Increases 2010-2012 $139 Million 2012-2014 $312 Million 2014-2016 $350 Million 2016-2018 $387 Million 2018-2020 $437 Million 7

FY 20 Budget Development To Date • Meetings with Administrators to discuss the budgetary process • School-level leadership/faculty meetings with staff to request input • One-on-one meetings with each Building & School level Administrator to discuss requests • Executive-level discussions to prioritize • School Board Work Sessions to develop draft • Public Hearing to inform & solicit input from citizens

Major Topic: Compensation & Benefits

Compensation Priorities • The School Board used the groupings found in the 2018 Compensation Study Report based on Paypoint HR’s External Market Comparison, which are: • Substantially Below Market • Below Market • Near Market • Above Market • Substantially Above Market

Compensation Priorities, cont. Distribution Percentages: • 2.5% for Teachers • 2.25% for positions in the “Substantially Below” and “Below” Market groupings • 2% for positions in the “Near Market” grouping • 1.75% for positions in the “Above” and “Substantially Above” Market groupings • Supplements to Administrators affected by reorganization of duties • Additional $20/month contribution toward the cost of health insurance for all eligible positions.

Compensation Priorities, cont. • Distribution Methodology – The “Midpoint Method” was again used to determine the increase for each Salary Scale and Grade. • Step 16 was determined to be the “midpoint” • The applicable percentage (2.5%, 2.25%, 2%, or 1.75%) was applied to the salary (or hourly rate) on Step 16 of each Scale & Grade to calculate the amount of the midpoint pay increase • All steps on each Scale & Grade will be increased by the flat dollar amount of the midpoint pay increase for that Scale & Grade. – All employees within each Grade will get the same dollar amount of an increase.

Compensation Priorities, cont. Midpoint method example (Teachers w/ Bachelor’s Degree) – 2018-19 Scale Ranges from $37,331 to $60,287 – Midpoint (Step 16) of the B10 scale is $48,172 • 2.5% of $48,172 is $1,175 – All Steps on the Bachelor’s Degree Teacher scale (B10) will increase by $1,175. – The proposed scale for B10 Scale Teachers will then range from $38,506 to $61,462 in FY 20.

Recent Progress Division FY 18 FY 19 FY 20 Northampton $35,523 $37,331 $38,505* Accomack** $37,499 $37,971 $39,111 Variance ($1,976) ($640) ($606) *Budgeted **As published in the Virginia Education Association Salary Survey. Estimated for FY 20 by adding 3% (per the ACPS website)

Compensation Priorities, cont. • Living Wage Adjustments – PaypointHR referenced a study performed by MIT that analyzes various economic factors and determined a living wage, which is an approximate wage needed to meet a family’s basic needs – $10.80 in Northampton County (2016 data) – This budget includes an additional increase of up to 25 cents per hour (including hourly positions) to make progress toward this benchmark. • Peer Group Differentiation & Market Adjustments – Some positions were reclassified due to the level of responsibility and job duties, which resulted in them being separated from their peer group (the group of employees previously paid on the same grade). Other positions were simply underpaid with regard to Market. – This budget includes additional adjustments toward market for Classified positions in the “Substantially Below” and “Below” Market groupings (max $3,000 total increase).

Compensation Supplement Details • When the State announces a “5% pay increase for Teachers” it is important to note that the State does not fund the full cost of that increase. – The State pays their “share” based on the Local Composite Index (currently 52.54%) of only the SOQ-required positions – Northampton County is responsible for funding the locality’s share (currently 47.46%) of the raise for the SOQ-funded positions and 100% of the cost of the increase for other positions that are necessary, but not mandated. • Comp Supplement was originally planned for FY 20 based on a 3% pay increase requirement during FY 19 and FY 20 combined. In FY 19, the average increase granted in NCPS was 3.67%. • FY 20 Budget deliberations resulted in an increase of 2% to the Compensation Supplement, with the final version breaking eligibility for the funding into two components: • 3% Portion: Available for the first 3% given in FY 19 and/or FY 20. • 2% Portion: Available for any additional increases given in FY 20. FY 19 raises in excess of 3% cannot be used to satisfy eligibility for this portion. Localities can get partial funding of the 2% share on a pro rata basis.

Salaries & Benefits • Competitive salaries and benefit packages are critical to recruiting and retaining quality teachers. Years of Salary Ranking Rank Increase Experience 0 $37,331 113 out of 130 5 points 10 $39,512 116 out of 130 5 points 20 $45,564 110 out of 130 4 points 30 $53,724 113 out of 130 4 points • NCPS currently pays $340/month toward the cost of health insurance, or 60%*. • Northampton County’s initial renewal quote from our Insurance Consultant indicates a 12.6% increase. *percentage calculated using the employee-only premium on the plan with the largest enrollment.

Major Topics: Student Social/Emotional Support Services

Student Support Services School Psychologist • Screening • Behavioral Assessment • Evaluation Guidance School • Consultation Counselor Psychologist Guidance Counselor • Student Advocacy Social Worker • Orientation School Social Worker • Records/Scheduling • Home Liaison • Student Support • Case Management • Emotional Behavior • Direct Services • Behavior Contracts • Student Progress Adding the Guidance Counselor and Social Worker positions to assist with addressing student needs will allow Administrators more time to work with new teachers on Instruction.

Included in this budget… Revenues: General Assembly Calc. Tool, 2/24/19 @ 1500 ADM - Compensation Supplement $251,001 General Assembly Calc. Tool, 2/24/19 @ 1500 ADM - Basic Aid & Other State Funding $82,472 Additional Miscellaneous Revenue (Tower Lease, Recycling, etc.) $5,745 Loss of One-Time Funding - Use of Fund Balance in FY 19 to balance budget ($200,000) Increase in Operating Revenues $139,218