SC HO O L BO ARD'S PRO PO SED BUDG ET SCHOOL BOARD & C O UNT - PowerPoint PPT Presentation

A PRIL 1 2 , 2 0 1 9 SC HO O L BO ARD'S PRO PO SED BUDG ET SCHOOL BOARD & C O UNT Y BO ARD JO I NT WO RK SE SSI O N

Overview  Thank You  Collaboration  Current Budget Challenges  Building the Budget  Maintain Our Tradition of Excellence 2

Thank You

Applaud County’s Focus on Economic Development 4

LT1 Strong Historic Support for Past Budgets $700 $662.5 $640.1 $613.6 $581.9 $600 $557.4 $539.4 $523.0 $500 in millions $400 $300 $200 $100 $0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 County Transfer State Federal Local Budget Savings 5

Niche: Best Place to Live in America 6

Collaboration

APS/Arlington County Collaboration Working Collaboration • Buck property • ART Bus Pilot • School Nurses • Fenwick Building • School Resource Officers (SROs) • Fields and Recreation Spaces • Joint Leadership Meetings • Crossing Guards • Joint Retreats • Joint Work Sessions Advisory Groups • Joint Aquatics Committee • Joint Facilities Advisory Committee (JFAC) • Arlington Partnership for Children, Youth and Families (APCYF) • Career Center Working Group (CCWG) • Advisory/Joint Committee on Transportation Choices (ACTC/JCTC) BLPC/PFRCs • Reed • Hamm • Heights • Fleet • 8 Ed Center

Results of Our Joint Successes Arlington County  Close-in, good transportation options, strong job mkt, well- managed gov’t, variety of attractive neighborhoods, diverse housing options, commercial and retail variety, low tax rate, affluent community, low crime rate Arlington Public Schools  Great schools: low class sizes, high instructional quality  high success metrics, options, opportunities, high per-child spending, strong community support for school funding (only 20% have school-age children) 9

Current Budget Challenges

Recipe for Student Success Our high-quality, top-ranked, desirable school system is a function of:  Low class sizes  High-quality, dedicated instructional staff  Robust student supports such as o Math and Reading coaches o Gifted and special education services o Mental health services o Choices and Opportunities 11

Projected to reach 34,201 PreK-12 Students in September 2028 Total Enrollment from Fall 2000 to 2028 Enrollment 10,000 15,000 20,000 25,000 30,000 35,000 40,000 5,000 0 2000 18,882 2001 19,097 2002 19,140 2003 19,120 2017 broke record for most APS students ever! Actual 2004 18,744 2005 18,411 2006 18,451 2007 18,684 2008 19,534 2009 20,233 growth in 11 years 2010 21,241 47% enrollment 2011 21,841 2012 22,613 2013 23,316 2014 24,529 2015 25,238 2016 26,152 2017 26,941 2018 27,436 2019 28,495 2020 29,262 growth in 21 years 83% enrollment 2021 30,018 2022 30,769 Projected 2023 31,394 2024 32,111 2025 32,628 2026 33,126 2027 33,639 2028 34,201 12

Enrollment and Cost Per Pupil 28,495 29,000 27,436 26,941 27,000 26,152 25,238 24,529 25,000 23,316 22,613 23,000 $23,747 21,841 $23,281 $22,869 21,241 $22,325 $21,859 21,000 20,233 $21,587 $21,561 $21,217 19,534 $20,910 $20,486 $19,935 $19,858 19,000 $19,538 $19,340 $19,348 $19,040 $18,957 $18,674 $18,678 $18,616 $18,569 $18,047 17,000 $17,322 15,000 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Enrollment Cost per Pupil FY 2009 Cost per Pupil Adjusted for Inflation 13 Note: Cost Per Pupil is based on a fully‐funded budget, including an additional $6.8 million in revenue.

Tightened the Belt Last Year  Reductions or Fee Increases of $11.4 million o Increased user fees o Changes in Planning Factors o Partially postponed growth initiatives o Eliminated benefits o Central Office reductions o Funded MC/MM with one-time funds 14

Budget Journey  Started planning this budget last spring  Initial deficit was $42.8 million  Team of senior leaders and principals worked side by side to find reductions  Significant balancing act o Relied on Strategic Plan to guide decisions o Needed reductions but did not want to undercut instruction o Looked for items beyond SOQ’s  Superintendent’s Proposed Budget reflected this work  Shortfall pared down to $19.0 million before reductions 15

Result: Budget Reduced $11.3 million  Started with $42.8 million deficit o Diligently worked to scrub the numbers  Shortfall reduced to $19.0 million  Superintendent’s Proposed included $10.1 million in cuts o Resulted in gap of $8.9 million  Spring revenue and enrollment update resulted in saving of $1.6 million o New gap of $7.3 million  School Board Proposed budget includes additional reductions $1.2 million New Gap in School Board Proposed Budget: $6.8 million 16

Fully‐Funded Budget Amount ($ in millions) Total Expenditures $669.3 Total Revenue * $662.5 ($6.8) Additional Revenue Needed * Based on County Manager’s proposed budget 17

Building the Budget

FY 2020 Expenditures Amount Positions ($ in millions) Opening of New Schools/Programs $10.33 72.40 Enrollment Growth $7.05 68.00 Compensation $12.90 Continuing Growth Initiatives* $4.06 27.65 Investments to Support Growth $0.83 7.00 Total $35.17 175.05 Expecting 1,000 Additional Students in September 2019 * Initiatives begun in the FY17 and FY18 budgets. 19

Compensation Increase  Strategic Plan Goal: Engaged Workforce o Want to retain our high-quality staff  National teacher shortage o Insulated at first, but now affecting APS  Surrounding jurisdictions have caught up to and surpassed APS 20

Strategic Use of Reserves* Earmarked in FY19- Used in Supt's Projected Reserve Current Balance 28 CIP Proposed Budget Balance Capital $22.0 ($34.8) ($12.9) VRS $2.5 $2.5 Debt Service $1.0 ($0.3) $0.7 Future Budget Years $16.1 ($4.6) $11.5 Compensation $6.5 ($6.5) $0.0 Separation Pay $2.0 $2.0 Health Care $1.0 $1.0 Total $51.0 ($34.8) ($11.4) $4.8 *Reserves are one‐time funds. 21

Reductions to Close Gap Amount Positions Reductions included in Supt’s Proposed ($ in millions) Increase class size (postponed for one year in FY 2019) ($2.10) (22.20) Use one-time funds for Minor Construction/Major Maintenance (5.28) (MC/MM) Benefits changes (0.56) Technology lease payments savings (1.50) Alignment of Library media assistants contracts (Year 2 of 2) (0.12) Department of Teaching and Learning efficiencies (0.57) (1.00) Total ($10.12) (23.20) May not total due to rounding 22

Reductions to Close Gap Amount Positions ($ in millions) Additional Reductions in SB Proposed ($1.18) (8.50) Central office reductions Evaluation staff/funds; transportation staff; training staff; service awards; HR staff; substitutes Schools reductions FLES; MS Pathways Program; parking fees 23

Investments in APS’s Future Investments directly aligned with Strategic Plan  Core Values: Equity and Inclusivity o Accelerating diversity efforts  Strategic Plan Goal: Strong, Mutually Supportive Partnerships o Advancing the growth of strategic partnerships and expand internship and externship opportunities for students  Strategic Plan Goal: Operational Excellence o Investing in ways to become more efficient 24

School Board Proposed Budget Amount Gap Description in $M In $M Superintendent’s Proposed Budget $671.6 $8.9 Spring Update – revenue & enrollment ($1.8) Updated Superintendent’s Proposed Budget $669.8 $7.3 School Board Reductions ($1.2) School Board Additions $0.7 School Board Proposed Budget $669.3 $6.8 May not total due to rounding 25

Maintain Our Tradition of Excellence

Fully‐Funded Budget Amount ($ in millions) Total Expenditures $669.3 Total Revenue * $662.5 ($6.8) Additional Revenue Needed * Based on County Manager’s proposed budget 27

Key Takeaways  $11.3 million in budget reductions already incorporated  Preserve excellent programs and services  Invest in quality employees  Strong partnership between County and Schools is essential 28

Niche: Best Place to Live in America 29