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.

3/31 ADM Fiscal Year * Projected/Budgeted

2002 1953 1890 1757 1812 1736 1697 1671 1676 1586 1565 1538 1560 1574 1528 1515 1500 1450 1550 1650 1750 1850 1950 2050 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020*

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.

0.3407 0.3555 0.3925 0.5482 0.5109 0.5103 0.4838 0.4910 0.4746 0.0000 0.1000 0.2000 0.3000 0.4000 0.5000 0.6000 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 Budget Total Basic Aid All Divisions % Basic Aid

• f Total State

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

• ver the decade

53.72%

• 3.34%

The State’s budget has increased by 53.72%

• ver the past decade.

Basic Aid to Schools has decreased 3.34%

• ver 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

• n 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
• f 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

• f 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

*Budgeted **As published in the Virginia Education Association Salary Survey. Estimated for FY 20 by adding 3% (per the ACPS website) 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)

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.

• 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.

Years of Experience Salary Ranking Rank Increase $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

Major Topics:

Student Social/Emotional Support Services

Guidance Counselor Social Worker School Psychologist

School Social Worker

• Home Liaison
• Case Management
• Emotional Behavior
• Direct Services
• Behavior Contracts
• Student Progress

School Psychologist

• Screening
• Behavioral Assessment
• Evaluation
• Consultation

Guidance Counselor

• Student Advocacy
• Orientation
• Records/Scheduling
• Student Support

Student Support Services

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

Included in this budget…

Special Funding Sources/Transfers:

Increase in County Revenue - Bus Replacement (Capital Lease Option) $ (1,811) Decrease in County Revenue (Internal Financing Savings) $ (8,803) Transfer in from Capital Improvement Fund - Painting & Rekeying $ 67,800 Total Requests for Special Funding Sources $57,186

Included in this budget, cont…

Expenditure Increases Pay Increases (% Varies by Position Grouping) $417,189 Allow for price increases for Testing Services $2,925 Add’l Health Insurance Contribution of $10/pay period for all eligible employees $65,760 Increase ACPS Share of Regional Alt Ed Program $4,022 1 New Nat’l Board Certified Teacher Supplement $2,013 Adjust Dual Enroll. for # of Seniors & CTE (Juniors) $2,850 Subtotal Add’l Needs for Compensation Increases: $482,949 Add 1 Social Worker $60,264 Add 1 Guidance Counselor (SOQ Ratios) $60,264 Increase Nat’l Board Teacher Stipend by $300 $1,510

Included in this budget, cont…

Expenditure Increases, cont. Contract/Employee Paperwork Mgt. Software $6,000 Increase SpEd Transportation by Contractor $7,190 Replace Exterior Lights with LED (Phase 1) $8,000 Utilities (Heating Fuel, Electricity, Water) $23,000 Microsoft License Renewal $4,677 Educational Partners International VISA Program $12,500 Allow for increased paper cost $700 MANDT Training for Behavioral Support Aides $2,454 Stipends for 3 After-School Fitness Instructors $4,844 Swipe K-12 Student Attendance Software $2,500

Included in this budget, cont…

Expenditure Increases, cont. Allow for 5% Increase in Insurance Premium $4,500 Instructional Contractual Services - price increases & no longer covered in grants $14,222 Total of Add’l Needs (excluding compensation) $266,598 Telecommunications (end of eRate on Phones) $2,532 Tech Infrastructure (After eRate reimbursement of 85%.

Total upgrade value = $100,400)

$15,060 Technology Lease, 27 Boards (reinstate lease cycle-skipped FY15) $28,074 Technology Lease, Potential Savings from Internal Financing ($3,503)

Included in this budget, cont…

Expenditure Decreases (Repurposing Existing Funds): Release Attrition Savings ($243,011) Executive Admin Convention & Dues Reductions ($1,690) Reduce Retiree Health Insurance based on projected retirees ($5,495) Unemployment Rate Decrease (.76% to .37%) ($9,130) Total Available for ADM Reduction & to Repurpose ($259,326)

Expenditures - Special Funding Sources

Expenditures - Special Funding Sources: Increased cost of Bus Replacement (Capital Lease Option) $ (1,811) Savings from using internal financing $ (8,803) Painting & Rekeying $ 67,800 Total Proposed Expenditures - Special Funding Sources $57,186

Budget Summary

• Total of Revenue Increases

$139,218

• Total Compensation Increases

$482,949

• Total of Other Exp. Increases $266,598
• Total of Operating Exp. Decreases ($259,326)
• Additional Operational Funding

from Northampton County $351,003

• Bus Lease Decrease

($10,614).

• Total Add’l Funding Requested

$340,389

Sources of Funding for Additional Budgetary Needs

37% 35% 1% 27% County Contribution State Revenue Other Misc Revenue Redirection of Existing Funding

Bus Lease Funding Adjustment

Bus Replacement Appropriation Summary FY 19 Funding FY 20 Funding FY 15 Lease

• FY 17 Lease

FY 17 Lease FY 18 Lease FY 18 Lease FY 19 Internal Financing FY 19 Internal Financing FY 20 Internal Financing (4 repayments) (4 repayments)

RECONCILIATION OF COUNTY BUS LEASE FUNDING REDUCTION Actual Cost of Capital Leases, FY 19 $ 187,604 Actual Cost of CIP Repayment Transfers (Internal Financing), FY 19 $ 71,079 Total Bus Financing Payments, FY 19 $ 258,683 Less Capital Lease ending in FY 19 $ (61,260) FY 20 Payment Adj. - Divide Bal of FY19 Purchase over 4 remaining years $ (11,154) Plus Anticipated New FY 20 Payment (Capital Lease @ 5% for 5 Years) $ 70,543 Annual Savings from Internally Financing FY 20 Purchase $ (8,803) Bus Replacement Funding Needed for FY 19 $ 248,009 Recurring Bus Replacement Funding Provided in FY 19 $ 258,623 Decrease to Bus Replacement Funding per Budget Request $ (10,614)

Northampton County has historically provided funding for the scheduled replacement

• f aging buses, based on the goal of having a 15 year replacement cycle.

Operating Fund Balance Update

Sick Leave Payout Fund Balance Historically, NCPS employees were paid for accumulated sick leave upon retirement. At the end of 2009, the School Board voted to discontinue this benefit, but 'grandfathered' the benefit for employees who had been with NCPS for at least 10 years and had not less than 90 days of sick

• leave. Payouts to this group are now capped at 110 days, to be paid at the employees' rate of pay on June 30, 2009.

Contributions (Payouts) Running Balance Fund Balance Reserved from FY09 Carryforward Funds $203,000 Transfer from FY11 Surplus (CIP Fund) $127,633 $330,633 FY 2012 Usage for Leave Payouts $0 $330,633 FY 2013 Contributions $0 $330,633 FY 15 Contribution $59,921 $390,554 Potential Future Payouts - FY2019 through FY2029

• 341,048

$49,506

The balance of funds that exceeds the potential future liability ($49,506) can be repurposed.

CIP Funding

• For the past several years, Northampton County

has included language in the Budget Resolution to allow any funds remaining at year-end to be transferred into the Capital Improvement (Fund 395) to be used for funding projects in the adopted School’s Capital Improvement Fund.

• The School Board is thankful for this opportunity

to create a fund that has been extremely helpful in meeting both emergency and non-emergency capital needs and is requesting to continue this practice.

Budget Next Steps

• Once a final budget has been signed by

Governor Northam and VDOE releases another Calculation Tool, School Staff will notify County Staff of the change in anticipated State Revenue and any operational ramifications.

In conclusion…

• Thank you for your continued support and for

partnering with us to make Northampton County a place where we can all be proud to live and work.

Questions?