Budget ProjectionFY2013-2014

Dr. Yvonne W. Brandon, Superintendent

P. Andy Hawkins, COOFinance & Operations

Lynn Bragga, DirectorBudget & Financial Reporting

Presented January 22, 2013

Task Force Recommendations4/18/2012

Task Force Plan

School Board Adopted

Plan

Reduction Board

FTE's

  04.18.12 06.04.12 06.04.12 Comments

Revenue Changes

City Increased Appropriation $5,686,000

State Increased Appropriation $1,868,900

Salary & VRS Changes

1% Salary Increase with 1% VRS Off-Set -$371,000

3% Salary Increase with 3% VRS Off-Set -$1,022,5003% Salary with 3% VRS off-set implemented

Furlough Days

3-day Furlough$2,400,00

0

5-day Furlough $3,387,200 5-day furlough implemented

Task Force Recommendations4/18/2012

Task Force Plan

School Board Adopted Plan

Reduction Board

FTE's

  04.18.12 06.04.12 06.04.12 Comments

Personnel

Class Size Increases (grades K-3) $0 $1,900,000 38

Class Size Increases (grades 4-12) $1,100,000 $1,100,000 22

Instructional Aides** $801,419 $0

Administrative $500,000 $550,000 7Contract Lengths (Assistant Principal, Guidance & Librarian) $639,158 $0

Reduction in Force - no teachers $1,211,559 $2,050,000 71

Benefit Adjustments

Health Insurance $2,400,000 $0Changes previously implemented

Health Insurance (retirees) $2,720,700 $810,000 Reduced by 30%

Dental (employee share) $900,000 $1,200,000 Eliminated

VRS (non-professional rate confirmation) $0 $618,900** This recommendation was from The Robert Bobb Group; the Task Force recommended it be funded, as did the Mayor and City Council.

Task Force Recommendations4/18/2012

Task Force Plan

School Board Adopted

Plan

Reduction Board

FTE's

  04.18.12 06.04.12 06.04.12 Comments

Other Changes

Summer School (General Fund) $892,500 $892,500

New Supt. Rec. - Eliminate Desktop Printers $340,000 $300,000

Food Service Revenues - indirect cost $894,000 $894,000

Exceptional Education - staff reorganization $75,000 $110,600 1

Exceptional Education - efficiencies $240,000 $300,000 6

Rebid Contracts for Support Providers $120,000 $0 Speech contract re-bid

Medicaid - increase direct service claims $1,500,000 $1,500,000Medicaid is now presented in the general fund

Cell Tower Leases $320,000 $0 In process

Modular Buildings - Eliminate Leases $75,000 $0 In process

Eliminate Bonuses $1,569,000 $1,569,000

Renegotiate contract and vendor discounts $500,000 $0 In process

P-Card Electronic Payments Initiative $0 $140,000

Task Force Recommendations4/18/2012

Task Force Plan

School Board Adopted

Plan

Reduction Board

FTE's  04.18.12 06.04.12 06.04.12 Comments

Managed Competition/Outsourcing

Plant Operations $3,225,000 $0

Student Transportation $755,000 $0

Security Services $965,000 $0

Workers Comp $50,000 $0  Cost avoidance if function is outsourced

$23,822,336 $23,854,600

145

Proposed in FY2014 budget per task force recommendation

Factors Impacting the Budget FY2013-2014

•Revenue Shortfalls

•Salary/VRS 1% Implementation

•Salary Increase 1%

•No Furlough Days

•Health Insurance Rate Increase

*Projected

Revenue Changes

FY2012Fund Bal.=$6M;Anthem=$4.9M;Stimulus=$5.5M

FY2013Fund Bal.=$8.2M;City=$5.6M

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014* 200,000,000

210,000,000

220,000,000

230,000,000

240,000,000

250,000,000

260,000,000

270,000,000

269,594,142

259,927,938

241,802,614 249,057,316

249,991,204 246,543,662

FY14 funding reflects a $23M or 8.6% decline since

FY2009.

Local appropriationo City of Richmond

State supporto SOQ Programso Sales Taxo Lottery Funded Programs

Other o Tuition & fees

Federal support o Impact Aido Air Forceo Army Reserve

*Excludes federally restricted fundssuch as Title I & IDEA

The two major funding sources for the general operating budget are the City of Richmond and the Virginia Department of

Education.

Revenue Sources for the BudgetFY2013-2014

Fund Balance1,400,000

0.5%

City Ap-propria-

tion12944372

452.5%

State Sales Tax24295383

9.9%

State Revenue89690455

36.4%

Other Revenue1004100

0.4%

Federal Revenue710000

0.3%

Revenue Source FY2013 FY2014

$ Chang

e

% Chan

ge

Fund Balance

$8,229,300

$1,400,000

- $6,829

,300

- 83.0%

City 129,443,724

129,443,724

0 0.0%

Sales Tax 23,761,811

24,295,383

533,572

2.2%

State 84,575,369

88,190,455

3,615,086

4.3%

State - Medicaid

1,500,000

1,500,000

0 0.0%

Other 1,826,500

1,004,100

-822,40

0

- 45.0%

Federal 654,500 710,000 55,500 8.5%

Total $249,991,204

$246,543,662

- $3,447

,542

- 1.4%

Projected Revenue VarianceFY2013-2014

NET REVENUE CHANGES BY CATEGORY

One-Time Funding: - $ 6,829,300

Net State Revenue Gain: 4,148,658

Net Other Revenue Loss: -822,400

Net Federal Revenue Gain: 55,500

Net Revenue Change - $ 3,447,542

Net Revenue ChangesFY2013-2014

What it pays for: Instruction Admin, Attendance & Health Pupil Transportation Operations, Maintenance &

Facilities Fund Transfers

What it does not pay for: Construction/Capital Projects School Nutrition Services State Operated Programs Federal Programs (Title I, IDEA) Other Pass-Through Programs

(Maggie Walker, MSiC)The pie chart shown below represents functional

spending for the general operating budget as defined by the Virginia Department of

Education.

Expenditures for the BudgetFY2013-2014

*Data based on VDOE Chart of Accounts; not based on

Standards of Quality (SOQ) Funding Methodology

Instruction77.5%

Admin, and Attendance &

Health5.4%

Pupil Transporta-

tion3.8%

Ops, Maint & Facilities10.4%

Debt & Fund Transfers

2.9%

Expenditures FY2013 FY2014 $/#

Change

% Chang

e

Salaries & Wages

$144,057,872

$150,066,586

$ 6,008,7

14

4.2%

Employee Benefits

62,421,931

64,448,469

2,026,538

3.2%

Non-Personnel

43,511,401

43,641,349

129,448

0.3%

Total $249,99

1,204

$258,156,404

$ 8,165,2

00

3.3%

FTE’s 3,088.8 3,088.8 0.0 0.0%

Note: 83.1% of resources are directed

toward salaries & benefits

Projected Expenditure VarianceFY2013-2014

Salaries & Wages150066586

58.1%

Employee Benefits64448469

25.0%

Other Expenditures43641349

16.9%

NET EXPENDITURE CHANGES BY CATEGORY

1% Salary Increase with 1% VRS Offset$

450,0001% Raise (all employees-includes McDonnell’s SOQ Proposal) 1,800,000

Reinstate Furlough Days (5) 3,387,200

Health Care (estimated 10% increase) 2,500,000

EpiPens 18,000

Athletic Trainers

10,000

Net Expenditure Change

$ 8,165,20

0

Net Expenditure ChangesFY2013-2014

Expenditure Changes

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

-$20.0

-$15.0

-$10.0

-$5.0

$0.0

$5.0

$10.0

-2.6

-10.1

-18.1

-4.4

0.9

8.2

In M

illion

s

Revenue Decreases$ 3,447,542

Expenditure Increases$ 8,165,200

FY2014 Funding Gap $11,612,742

Projected Budget SummaryFY2013-14

Proposed Budget ReductionsFY2013-14

Amount FTEInsurance

Short-Term Disability – 100% 300,000 Long-Term Disability – 100% 700,000District Insurance Policy 300,000Retiree Health Care – apply retiree-only rate 500,000  

Total Insurance 1,800,000 -

Outsourcing/Managed Competition

Facilities Services 3,000,000 224.0

Security Services 600,000 67.0

Transportation Services 500,000 212.0

Total Outsourcing /Managed Competition 4,100,000

503.0

Proposed Budget ReductionsFY2013-14

Amount FTESOQ Staffing Ratios

K-3 Teachers – Ratio 17:1-22:1 550,000 10.0

4-5 Teachers – Ratio 24:1 220,000 4.0

Middle Teachers – Ratio 21:1 550,000 10.0

High-Comprehensive Teachers – Ratio 21:1 275,000

5.0

High-Specialty Teachers – Ratio 19:1 825,000 15.0

Instructional Assistants – Regular Education 508,200

21.0

Clerical 202,500 4.5

Total SOQ Staffing Ratios 3,130,700 69.5

Summer Hill Closure 274,700 4.0

Proposed Budget ReductionsFY2013-14

Amount FTENon-SOQ Programs

Salaries & Benefits 558,311 9.0Minds in Motion-eliminate 47,025Virginia Heroes-eliminate 9,500Communities in Schools-5% Reduction 14,000Employee Tuition Reimbursement-8% Reduction 11,800 Extended Day-8%Reduction 57,000 Twilight-8% Reduction 9,600  Total Non-SOQ Programs 707,236 9.0

Departments & Support Services - 8% ReductionSalaries & Benefits 1,237,166 18.5 Other Expenditures 362,940  Total Department & Support Services 1,600,106 18.5

Total Proposed Reductions 11,612,742 604.0

FTE Changes

*Projected – does not include proposed budget reductions**Superintendent’s Proposed Budget Reductions

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014* FY2014**

2,000.0

2,250.0

2,500.0

2,750.0

3,000.0

3,250.0

3,500.03,384.0 3,394.0

3,309.93,215.9 3,229.7

3,088.8 3,088.8

2,484.8

Nu

mb

er

of

FT

E's

Governor’s Budget released December 18, 2012 2013 Legislative Session began January 9, 2013 (short session) Superintendent’s Proposed Budget presented January 22, 2013

Budget work sessions January 28 & 31, 2013 Public Hearing February 4, 2013

Budget work sessions February 4, 7 & 12, 2013 2013 Legislative Session adjourns February 23, 2013 School Board Budget approved February 19, 2013

Approved budget submitted to Mayor’s office February 22, 2013

Mayor’s budget presented to City Council March 6, 2013 City Council’s budget adopted on/before May 31, 2013

School Board Budget adopted June 3, 2013

Proposed Budget CalendarFY2013-2014

Dates & times for work sessions pending approval

Dates need to be approved

at the formal

meeting.