Budget Overview

Jackson ZimmermannExecutive Director – Fiscal Services

2

Your Budget Book

Section COperational

Expenses

Section DSelf-Sustaining

Expenses

Section EBudget Data

Analysis

Section FSupporting Documents

Section BRevenue Analysis

Section AOverview

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Revenue Sources (in Millions)

Local105.5568.55%

Federal2.94

1.91%

State43.32

28.13%

Fund Balance2.17

1.41%

Total Revenues: $153,972,043

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RevenuesFY 2012-2013

School Board’s Adopted

FY 2013-2014Superintendent’s

Requested $ Change % Change

Local-Schools $1,592,574 $2,052,531 $459,957 28.88%

State $42,950,045 $43,319,323 $369,278 0.86%

Federal $2,935,218 $2,935,218 $0 0.00%

Local Transfers $100,106,298 $102,618,995 $2,512,697 2.51%

Use of Fund Balance $2,790,771 $2,170,976 ($619,795) -22.21%

CIP and Other Transfers $875,000 $875,000 $0 0.00%

Totals $151,249,906 $153,972,043 $2,722,137 1.80%

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Use of Fund Balance

Current Fund Balance (Unaudited) $7,932,654

Budgeted in FY 12-13 $2,790,771

Anticipated Transfer to CIP (FY 12/13) $2,300,000

Proposed Use in FY 13-14 $2,170,976Projected Available Fund Balance FY 13-14 $670,907

Fund Balance Percentage of FY 13-14(As a % of Current Anticipated Revenues) 0.44%

Where do we Invest Our Resources

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Superintendent's 2013/2014 Proposed BudgetBy Type of Expense

CAPITAL7969990.51%OPERATIONAL

1985871012.78%

PERSONNEL131309625

84.47%

TRANSFERS3479355

2.24%

Total Expenses: $155,444,689

Drivers of the Superintendent’s Funding Request

• Student Enrollment• Free/Reduced Lunch Students• Maintenance of Effort• Market Competitiveness

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

11,500

12,000

12,500

13,000

13,500

14,000

Actual Projected

Student EnrollmentEnrollment is projected to increase by 6.52% (846 students)

over the next 5 years.

2008-09 2009-10 2010-11 2011-12 2012-13 2013-142,000

2,500

3,000

3,500

4,000

Budgeted F/R Students

Free/Reduced Lunch Student Trends

Free/Reduced trends are based upon a three year weighted average to temper major fluctuations

Maintenance of Effort (Page A-19)

$3,198,210

World at Work estimates a 2.5% compensation increase.Based upon staff recommendations, the Joint Boards adopted a 1% – 2% market adjustment.

Classified 2% pay for performance increase Address position discrepancies identified

as below defined market

Teacher

Meet competitive market with scale Maintain anchor point on scale at 0, 10, 20

and 30 years of experience Meet requirements for one-time state

funding

Compensation: Market Recommendations

0 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years Maximum$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

$75,000

$80,000

$85,000

$90,000Teacher Salary Market Comparison 2012-2013

Top Quartile Range BreadthAlbemarle

Experience

Ann

ual S

alar

y

New Teacher 10 Years 20 Years 30 Years0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%

4.33%

1.30%

2.57%

1.30%

Percent Increase at Anchor Points (Inclusive of Step)

Compensation: Teacher Increases

Each full-time participating employee will receive: 2012-13 2013-14

Health Insurance Contribution $6,745 $7,217

Dental Insurance Contribution $301 $322

Health Benefits Summary

2008 - 2009

2009 - 2010

2010 - 2011

2011 - 2012

2012 - 2013

2013 - 2014 $6,000

$6,200

$6,400

$6,600

$6,800

$7,000

$7,200

$7,400

$7,600

$7,800

$6,645

$7,045

$7,609 $7,609

$6,745

$7,217

County Portion of Health Costs over Six Years

5% Employee

Share

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

16.46%

15.47%14.89%

9.53%

12.21%

12.77% 12.77%

0.1777 0.1777

VRS Rates Over Time

Changes in Budgeting Practices

•Lapse Account•Realigning Budgets

Budget to Budget

Current

Staff

RetirementsResignation

sTermination

s

New Staff

Savings

Within Budget Year

Current Staff

Retirements

Resignations

Terminations

Time Betwe

en Hires

Savings Due

to Time

Savings Due

Change in

Experience Levels

Compensation Lapse Cycles

Risk

Expectations

Lapse

Balancing Risk and Expectations Through Lapse

Fiscal Year Percent Savings in Salaries and Benefits

2010-2011 1.13%

2011-2012 2.30%

Proposed Lapse Increase 2013-2014 ($1.5M Increase) 1.16%

Balancing Risk and Expectations Through Lapse

Budgeting Focus:Reduce the variance between actual and budgeted amounts where it made sense.

Outcome:The number of departments and schools that had a variance of greater than 20% was reduced by 60%

Realigning Budgets

Fund Actual 12 Adopted 13 Variance Sups 14 Variance

W. Albemarle 569,607 407,439 -28.47% 569,914 0.05%

Federal Pgms. 925,507 1,654,534 78.77% 995,410 7.55%

• Accomplished by:• Transferring Money from Departments into Schools • Budgeting Anticipated Carryover to Schools• Budgeted Anticipated Donations

Realigning Budgets

Questions