1

Values and Stewardship for a Stronger Tomorrow

Budget WorksessionMarch 25, 2010

Budget Process at a Glance

OCT MAR APR MAY JUN

Joint Board Compensation

Meetings

DEC JAN FEB MAR APR MAY

SB BudgetWorksession

BOS directs budget to be based upon equalized tax rate

PreliminaryRevenue

Discussions

NOV

OutgoingGovernor’s

BudgetPresented

School Board’sProposed Budget

InitialComposite

Index Information Composite

Index Information

Changed

CurrentGovernor’s

BudgetPresented

BOS Advertises74.2

Tax Rate

ConferenceRevenues

are Released

CompositeIndex

InformationChanged

BOS SetsLocal

Transfer

Final StateRevenues

School BoardAdopts Final

Budget

BudgetAppropriated

Superintendent’sBudget Development

and Proposal

3

Revenues

Revenues at a Glance

RevenueType MAR APR MAY JUNDEC JAN FEB MAR APR MAYNOV

BOS Sets Planning at 77.2

Local Transfer

State Revenues

*All revenues shown compared to Adopted FY09/10*All revenues shown compared to Adopted FY09/10

-$1.1M

-$0.36M

Gov. Kaine’sProposed

BOS Redirects Planning to 74.2

-$4.0M

-$8.8M

Gov. McDonnell’s

Proposed

BOS SetsHighest RateBefore Final

State Revenuesare Available

BOS AdoptsFinal Rate

-?M

-$2.4M(-7.6M Recurring

+$5.2M CIShort-Term)

Conferee’sProposed

State AdoptsFinal Rate

-?M

5

Revenue Comparison

Adopted 09/10 to Conference 10/11

-$6.1M (inclusive of one-time funding)

6

Biennium Composite Index Hold Harmless Funding

• FY 2010/11 – $5.2M Total– $2.6M Recommend Treatment as Recurring– $2.6M Recommend Treatment as One-time

• FY 2011/12 – $2.6M Two Year Recurring

7

Avoiding Funding Cliffs

One-Time Revenues

8

Expenses

6is not just a number.

million

10

How Do We Get From Adopted 09/10 to School Board's Requested 10/11

$147.18

$148.27

$151.22

$145.22

$143.00

$144.00

$145.00

$146.00

$147.00

$148.00

$149.00

$150.00

$151.00

$152.00

$148.98

Adopted 09/10 Base 10/11

(October Payroll)

Growth

(Page A-38)

Compensationand Benefits

(+2.95M)

Reductions

(-6.00M)

School Board'sRequested

(in m

illio

ns)

(Sal. Savings -1.8M) (+1.10M)

(Page A-38) (Pages A39 to A42)

(Page C-1)

11

Reductions/Revenues Included in the School Board’s Budget

12

How Do We Get From Adopted 09/10 to Conference Changes

$147.18$148.27

$151.22

$145.22

$138.00

$140.00

$142.00

$144.00

$146.00

$148.00

$150.00

$152.00

$154.00

$148.98

Adopted 09/10 Base 10/11

(October Payroll)

Growth

(Page A-38)

Compensationand Benefits

(+2.95M)

Reductions

(-6.00M)

School Board'sRequested

(in m

illio

ns)

(Sal. Savings -1.8M) (+1.10M)

(Page A-38) (Pages A39 to A42)

(Page C-1)

$140.71

RecurringConference

Changes(-4.51M)

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Expense Adjustments• FY 2010/12 Biennium

– Assumes Recurring VRS Rate of 10.76% - $4,513,311

• FY 2010/11 – One Time VRS Savings Based on 9.53% Rate - $849,017– Recommends $849,017 in One-Time Purchases in

FY 2010/11, in FY 2011/12 these funds Return to VRS Rate

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Recurring Expenses Recurring Expenses $140.71M$140.71M

Recurring RevenuesRecurring Revenues$140.25$140.25

Recurring Funding Gap - $0.46M

After $6M in Reductions

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Strategic Positioning

16

Superintendent’s RecommendationsRecurring Expenses

• Restore Two Elementary Principals$233,288

• Eliminate Family Support Workers-$190,000

Net Expense Increase $43,288

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Recurring Expenses (based on Conference Changes) $140,713,486

Recurring Overall Revenue (based upon biennial state funding) ($140,249,469)___________________________________________________

Restore 2.00 FTE Principals $233,288Eliminate Family Support Workers ($190,000)____________________________________________________Funding Gap (Recurring) $507,305

Superintendent’s RecommendationsRecurring Expenses

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One-Time FundingOne Time VRS Savings

(diff b/w 10.76% rate less 9.53% rate) $849,017

One Time CI Funding

(50% of FY 2010/11 CI Funding) $2,614,164

_______________________________________________

Total One Time Funds Available $3,463,181

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Superintendent’s RecommendationsOne-Time Funds

Technology $1,000,000Bus Replacement $1,750,000Electronic Payroll for T-Port $60,000Learning Resources $340,0004 FTE Emergency Staff $264,284Total One-Time $3,414,284

Remaining One-Time Board Reserve $48,897

FY 2010/11 Recurring Board Reserve $75,000

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Budget to Budget Adjustments

21

Further Board Considerations

Funding Gap $507,305(Including Principal Funding)Restore Class Size $1,113,957(16.86 FTE)Restore ALCP $345,755