Fiscal Year 2020-2021 Superintendent’s Recommended Budget

March 4, 2020

FY 2021 Budget Development Process

FY 2021 School Board Priorities● Maximize Every Child’s Learning

○ Academies of Hampton ○ Student Achievement○ Reducing Class Sizes

● Attract, Develop, and Retain Exceptional Staff○ Competitive compensation for teachers and support staff○ Teacher Retention

● Create Safe and Nurturing Schools○ Facilities and Capital Improvements○ Ongoing emphasis on school safety measures

Hampton City Schools Budget Structure

FY 2020-2021 Superintendent’s Recommended Budget

$591,031

Athletics (Fund 94)

Athletics (Fund 94)

Changes to Athletics (Fund 94)● Concessions moved from Reimbursable Projects (Fund 60) to Athletics (Fund

94)

● Additional funding from School Operating Fund (Fund 50)○ Athletic Insurance - $32K increase○ New Middle School Volleyball Program - $40K

$172,176

Rental Income (Fund 65)

Rental Income (Fund 65)

$22,581,111

Reimbursable Projects (Fund 60)

Reimbursable Projects (Fund 60)

Changes to Reimbursable Projects (Fund 60)● Budget proposal is based on continued funding of current grant programs and

projected carryforward funds at the end of June 30, 2020● The following annual programs have been moved to other funds for budget

accounting purposes only:○ Concessions moved to Athletics Fund○ Academic Year Governor’s School moved to School Operating Fund○ Individualized Student Alternative Educational Plan moved to School Operating Fund○ Mentor Teacher Program moved to School Operating Fund○ Cardiopulmonary Resuscitation (CPR) Program moved to School Operating Fund

$12,264,069

Food and Nutrition Services (Fund 51)

Food and Nutrition Services (Fund 51)

Community Eligibility Provision (CEP) Program● United States Department of Agriculture

(USDA) program○ Offers free meals to schools reimbursed by

the Federal Government at either a Free rate or a Paid rate

● State Food and Nutrition Services Office new state database ○ Positive impact to Identified Student

Percentage (ISP %)● Current Participation: 14 sites● Recommend Expansion for FY 2021

○ Phoebus High○ Forrest Elementary○ Alternative Learning Center

● Participation for FY 2021: 17 sites

A.W.E. BASSETTE ELEM (since SY 2015-2016)ABERDEEN ELEM (since SY 2015-2016)BENJAMIN SYMS MIDDLE (since SY 2015-2016)BOOKER ELEM (since SY 2017-2018)C. ALTON LINDSAY MIDDLE (since SY 2015-2016)CAPTAIN JOHN SMITH ELEM (since SY 2016-2017)CESAR TARRANT MIDDLE (since SY 2017-2018)DOWNTOWN HAMPTON CDC SITE III (since SY 2017-2018)HUNTER B. ANDREWS (since SY 2015-2016)JANE H. BRYAN ELEM (since SY 2015-2016)JOHN B. CARY ELEM (since SY 2015-2016)JOHN TYLER ELEM (since SY 2015-2016)LUTHER W. MACHEN ELEM (since SY 2015-2016)MOTON EARLY CHILDHOOD CENTER (since SY 2017-2018)PHOEBUS HIGH (recommend SY 2020-2021)FORREST ELEM (recommend SY 2020-2021)ALTERNATIVE LEARNING CENTER (recommend SY 2020-2021)

Average cost of a HCS breakfast is $1.10

Recommendation is a $0.10 increase to school breakfast price for FY 2021 (FY 2020 price is $1.00)

FY 2021 school lunch prices: no increase is proposed

FY 2021 School Breakfast Price

Food and Nutrition Services (Fund 51) Expenditures

● Payroll ○ 2% compensation increase ○ In addition to the 2% compensation increase:

■ $1.83 per hour increase for cafeteria staff ■ $2.00 per hour increase for cafeteria managers■ $1.00 per hour increase for secretaries■ $1.00 per hour increase for maintenance staff

○ Eliminate 14 vacant positions● Non-payroll

○ Projected increase in food cost ($111,000)

School Operating Fund (Fund 50) At-A-Glance

$226,446,634● HCS 2% compensation increase - $2.9 million● Health insurance HCS contribution increase - $1.3 million● Virginia Retirement Systems (VRS) HCS contribution increase - $0.5 million● HCS market adjustments contribution increase - $3.3 million

School Operating Fund (Fund 50)

State Funds and State Sales Tax● Local Composite Index (LCI) increase from 0.2741 to 0.2743● March 31 Average Daily Membership (ADM) increase from 18,455 to 19,030

● $143.6 million in total ($13.6 million increase from FY 2020)○ $97 million in Standards of Quality programs ($12.7 million increase from FY 2020)○ $23.1 million in State sales tax ($0.5 million increase from FY 2020)○ $14 million in Lottery funded programs ($1.0 million increase from FY 2020)○ $9.5 million in State Incentive and categorical programs ($0.6 million decrease from FY 2020)

Local Funds● The city of Hampton provides funding to the school division based on the

following formula:○ 61.83% of all residential related taxes (real estate, personal property, and utility taxes)

● $76.9 million in estimated local revenue○ Includes $380,000 in one-time funding for the Academies of Hampton○ Additional $1.3 million in local funding compared to FY 2020

Federal and Other/Miscellaneous RevenueFederal revenue: $0.8 million

○ Federal Impact Aid - $0.5 million■ Federal assistance for loss revenue

from tax-exempt federal property■ Based on annual counts of

federally-connected students○ Junior Reserve Officer Training Corps

(JROTC) - $0.3 million■ Required to pay minimum

instructor’s pay as determined by military branch

■ Reimbursement for a portion of military instructor’s pay

Other/Miscellaneous revenue: $5.0 million

○ $2.0 million HCS Pharmacy Center○ $0.2 million HCS Print Shop○ $1.0 million Medicaid Reimbursement○ $0.5 million Cell Towers○ $1.0 million Indirect Costs (from Fund 60

and Fund 51)○ $0.3 million Public Sale of Surplus Goods

School Operating Fund (Fund 50) Expenditures

Health Insurance(Attract, Develop, and Retain Exceptional Staff)

● Based on medical trends and claims data, a 5.3% increase in healthcare costs is projected

● Recommend HCS absorbs the 5.3% increase ($1.3 million)● Recommend no increase to employee premium (total cost was $173,000)

Virginia Retirement System and other pension changes

(Attract, Develop, and Retain Exceptional Staff)

● Employer rates for Virginia Retirement System (VRS) will change for FY 2021 with a total projected increase of $555,000

● Hampton Employee Retirement System (HERS) contribution increase of $60,000

Compensation Increase(Attract, Develop, and Retain Exceptional Staff)

● The proposed budget includes a 2% salary increase for full and part-time employees* ($2.9 million)

*Excludes flat rate, temporary positions, as well as some part-time teaching positions

Teacher Salary Scale Adjustments(Attract, Develop, and Retain Exceptional Staff)

● $1.4 million investment in the teacher salary scale (in addition to 2% compensation increase) by adding $500 to steps 1-14 and $1,000 to steps 15-29

● $3.0 million investment in the teacher salary scale since FY 2017

Support Staff Salary Adjustments(Attract, Develop, and Retain Exceptional Staff)

● Bus Drivers and Bus Attendants – additional $2 per hour ($644,000)○ $1.04 is for minimum wage adjustment for Bus Attendants

● Additional $1.50 per hour ($183,000)○ School Technology Specialists, School Maintenance Staff, and Auto Mechanics

● Additional $1 per hour ($657,000)○ Instructional Assistants, Secretaries, and School Security Officers

● Instructional coaches and administrators (e.g., principals, assistant principals, and senior leadership) – ($354,000)

● Minimum wage adjustments Phase 1 - $10 per hour ($37,000) ○ Cafeteria Monitors, Couriers, Finisher, Health Clerk, Inventory Control Clerk, Processing Clerk

II, Library Technician, Messenger, Transportation Shop Attendant, and Warehouse Delivery Technician

Reclassifications and Supplements(Attract, Develop, and Retain Exceptional Staff)

● Increase the summer school teacher hourly rate from $25 to $30 ($78,000)● Extend contract days for the following ($165,000)

○ High School Band Directors and School Finance Officers ● Increase daily hours for Office Assistants from 3 to 5 hours ($138,000)● Reclassify select positions from part-time to full-time (impacts 2 positions - $103,000)● Adjust compensation for select positions based on changes in job responsibilities

(impacts 5 positions - $21,000 )● Increase middle school counselor director stipend increase from $683 to $820 ($1,000)● Add volleyball middle school coach stipend ($9,000)● Restore 50% of the 25% reduction (12% increase) to coaching and instructional

supplements ($135,000)

Virginia Preschool Initiative (VPI)(Maximize Every Child’s Learning)

● Budgeted slots for FY 2021 increase from 534 to 635

● Add 5 Teachers and 5 Instructional Assistants (max class size will remain at 18) -$586,000

● New curriculum and classroom observations required by VDOE-$103,000

● State funding for students on waiting lists - $115,000

Position Changes (Maximize Every Child’s Learning)

● Teachers (23.12)● Instructional Assistants (17)● School Counselors (4)● School Social Workers (2)● School Psychologist (1)● Library Technician (1)● Cafeteria Monitors (20)● Other support positions (5)● Total net change: 73.12 ($3.2 million)

○ 37.12 positions are related to positions added in FY 2020 to address increased student enrollment/student needs and no longer outsourcing cafeteria monitors

Non-Personnel Changes● Instructional supplies ($268,000)● Virginia e-Learning backpack program ($308,000)● Contracted medical services for students with disabilities ($546,000)● Substitute teacher costs ($294,000)● Academies of Hampton budget

○ Removed $500,000 of one-time General Assembly funds○ Added $166,000 in additional funding (e.g., transformation of learning spaces and equipment)

■ $30,000 from the increase in city funding for one time AOH needs (FY 2020 $350,000 vs FY 2021 $380,000)

■ $136,000 from internally repurposed funds ○ Added $360,000 as contingency for Extended Learning Program

HCS Continued Investments for FY 2021

Next Steps● Release of the General Assembly budget● Public Hearings on the Proposed Budget at Jones Magnet Middle School

○ Location: Jones Magnet Middle School○ Date: March 11, 2020 and March 18, 2020○ Time: 6:30 p.m.

● School Board’s scheduled vote on FY 2021 Proposed Budget○ March 25, 2020

Special ThanksDivision Leadership Team

FinanceHuman Resources

Food and Nutrition ServicesAthletics

Department Heads Principals

Secretaries/Administrative Assistants