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TRANSCRIPT
Maximizing our resources; transcending the new normal through our people
FY 2018 Superintendent’s Proposed Budget January 30, 2017
Together, we prepare our students for their future.
13th largest school division in Virginia
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Together, we prepare our students for their future.
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Together, we prepare our students for their future.
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“Leadership does not begin with a vision. It begins with getting people to confront the
brutal facts and to act on the implications…
…One of the primary ways to de-motivate people is by ignoring the brutal facts of
reality.”
―Jim Collins (Good to Great)
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Persistent Challenges
We have never actually recovered from The Great Recession. State funding as % of general revenue went from 35 – 29%. Local Funding as % of general revenue went from 55 - 49%
State/Basic Aid Funding for Public Schools is primarily based on student enrollment and average daily membership. SCPS enrollment trend continues to be flat or slightly declining, meaning less funding from the state
The past two Local Composite Index adjustments for SCPS have trended upward, meaning less funding from the state
Mandatory cost increases in Health Insurance and VRS are significantly outpacing any increases in state or local funding
There is a growing shortage of qualified and desired candidates for employment in the public education field as noted at both the state and national level. SCPS is competing for human resources within a shrinking pool
Despite the mild decline in overall enrollment, the increased number of students in poverty, with disabilities, and who are English Learners must be effectively and equitably addressed amidst diminishing resources
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Revenue & Funding Trends
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
Estimated FY 2018
Superintendent Budget GAP
($6.6M)
($8.2M)
($1.9M)
($2.7M)
($12.6M)
($6.5M)
School Board Budget GAP
$0
($3.2M)
($1.9M)
($1.3M)
($12.6M)
TBD
Beginning Budget Deficits/Gap
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Source FY 2014 Actual
FY 2015 Actual
FY 2016 Actual
FY 2017 Adopted
FY 2018 Recommended
Total/ Average
for period
State $31,580 0.03%
$4,226,309 3.48%
$494,922 0.39%
$6,379,178 5.06%
$2,017,248 1.52%
$13,149,237 2.10%
Federal ($3,689,270) (21.61%)
$800,328 5.98%
$67,510 0.48%
$612,534 4.3%
$727,078 4.89%
$1,481,819 (1.19%)
Local $1,173,634 1.0%
$638,564 0.54%
$379,629 0.32%
$4,405,027 3.7%*
($2,100,000) (1.7%)
$4,496,854 0.77%
5 Year Revenue Variances
9 * For Local Funds, the FY 2016 adopted budget compared to the FY 2017 adopted budget increased by $7,042,568 or 6%.
FY 2008 vs. FY 2017 Adopted Budgeted Revenues
126
,276
,535
7,9
29,4
70
117
,890
,992
1,8
48,3
90
58,
139,
163
129,
944,
685
9,73
6,03
3
122,
345,
837
5,00
1,55
8
23,4
58,6
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-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
SALES TAX & STATE FUNDS FEDERAL FUNDS CITY-COUNTY FUNDS OTHER FUNDS LOANS, BONDS, ETC (CIP)
FY08
FY17
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$100 $105 $110 $115 $120 $125 $130 $135 $140
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Projected
Mill
ions
State Local
$100
$105
$110
$115
$120
$125
$130
$135
$140
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Projected
State $135,211,197 $122,617,532 $106,403,555 $111,480,669 $120,619,534 $121,068,337 $126,064,037 $127,339,225 $132,444,422 $134,461,670 Local $119,956,934 $113,830,339 $113,830,340 $114,830,340 $115,312,329 $115,580,339 $116,415,339 $116,432,747 $123,475,315 $121,375,315
Mill
ions
Local & State Fund Trends (Adopted Budget)
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“The state is significantly underfunding state-mandated locally-administered programs,
particularly the largest -- K-12 education. The introduced K-12 budget for FY 2017 is no higher in nominal dollars than 2009 and is almost $600 per
pupil less in inflation-adjusted terms.”
Jim Regimbal, Founder of Fiscal Analytics
State Per Pupil Funding FY 2015
Per Pupil Funding
State Average $11,523
Spotsylvania $10,149
Variance to State Average ($1,374)
Virginia Per Pupil Funding Comparison
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FY 2015 Cost Per Pupil Ranking
Total # of school divisions in Virginia 132
Spotsylvania Rank 85th
Percentage of Districts Below Spotsylvania *SCPS also has the 5th lowest cost per pupil among the 15 largest school divisions in the state
35.6%
Cost Per Pupil
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0.31
0.32
0.33
0.34
0.35
0.36
0.37
2000-02 2002-04 2004-06 2006-08 2008-10 2010-12 2012-14 2014-16 2016-18
0.36
92
0.35
48
0.35
73
0.34
55 0.
3695
0.35
93
0.33
26 0.
3555
0.36
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Note: When the LCI Increases, the division’s State funding is reduced & local funds should increase
Local Composite Index (LCI) Historical Trends
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Student Enrollment Trend (Pre-K- 12)
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23,
811
24,
186
24,
390
24,
197
24,
216
23,
868
23,
775
23,
725
23,
773
23,
817
23,
678
23,
592
23,
539
23,
610
23,
834
24,
005
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
2005 - 2006
2006 - 2007
2007 - 2008
2008 - 2009
2009 - 2010
2010 - 2011
2011 - 2012
2012 - 2013
2013 - 2014
2014 - 2015
2015 - 2016
2016 - 2017
2017 - 2018
2018 - 2019
2019 - 2020
2020 - 2021
Oct
ober
1 E
nrol
lmen
t
Actual ADM March 31
21,000 21,500 22,000 22,500 23,000 23,500
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17*
2017-18**
23,265
23,264
23,290
23,315
23,094
22,846
22,834
*FY 2017 Estimated ADM **FY 2018 Budgeted ADM 17
Students with Disabilities Trend Data
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2,623 2,683 2,756 2,834 2,881
2.3% 2.7% 2.8% 1.7%
FY 2013 FY2014 FY 2015 FY 2016 FY 2017
Student Enrollment Statistics – Dec 1 Count
Total Number of English Learners (Els)
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Full -Time Equivalent Positions (FTE)
FY08 FTE FY17 FTEAdoptedBudget
Adopted Budget
INSTRUCTION/TECHNOLOGY 2,475 2,385 (90) TRANSPORTATION 410 431 21 ADMINISTRATION 46 44 (2) ATTENDANCE / HEALTH 57 55 (2) MAINTENANCE/CIP 197 137 (60) FOOD SERVICE 112 55 (57) Grand Total 3,297 3,107 (190)
ChangeDepartment
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FY09 FY17 Decline
Teacher FTE 1,892.355 1,760.83 (131.525)
Enrollment 24,197 23,592 (605)
% of Teacher FTE of Enrollment
7.82% 7.46% (0.36%)
Ratio 12.8:1 13.4:1 0.6:1
Teacher FTE versus Enrollment
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Highlighted Investments
FY 2018 Operating Fund ( Less CIP & Debt Service) 87.9% Personnel VS. 12.1% Non-Personnel
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$145.6 58.6%
$72.9 29.3%
$30.1 12.1%
Wages Benefits Non-Comp
Total $248.6 Million
Elementary Pupil/Teacher Ratio
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Secondary Pupil/Teacher Ratio
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Fiscal Year Salary Adjustments 2009 2.5% COLA
2010 & 2011 None 2012 1% COLA & $600 Prorata Bonus 2013 .8 % (EE below director level)
0% (EE director & above) Plus 5% VRS pay raise offset
2014 $900 Prorata Bonus 2015 Step & 1% COLA 2016 3% COLA 2017 2% COLA
2018 Proposed 2% COLA
Salary Increase Trend
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FY 2018 Proposed Investments
Description Related Cost
2% Cost of Living Adjustment (COLA) $3,482,935
Mandatory cost increases in health insurance (10% employer and 5% employee)
$2,918,755
Mandatory cost increase VRS (11%) $2,277,599
Increases in debt service in accordance with the proposed projects in the 2018-2022 CIP
$286,314
Reinstatement of hourly cafeteria aides at the elementary level as a Pilot Program (Food Service Fund)
$188,000
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High School Athletic Participation Rates
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FY 2018 Proposed Budget Highlights
Description Related Cost Pilot Academic and Athletic Activity Bus Program $227,325
Restoration of Academic and Athletic Stipends by 5%
$55,892
Daily and hourly rate increase in substitute rates of $5
$116,364
Lower the athletic fee from $75 to $60 $51,492 Expansion of the REACH SPED program (funded by CIP funds)
$135,000
Across the board non-compensation reductions ($1,815,273)
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Revenues & Expenditures All Funds
FY 18 Budget by Revenue Source
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State & Sales Tax Funds
$134.5 42.2%
Federal Funds $15.6 4.9%
City-County Funds
$121.4 38.1%
Other Funds $13.2 4.2%
Revenue Gap $6.5 2.0%
Loans & Bonds $27.3 8.6%
Total $318.4M
Variance due to rounding
FY 18 Budget by Category
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Instruction $194.3 61.0%
Administration $5.0 1.6%
Attendance & Health $5.5 1.7%
Transportation $21.0 6.6%
Capital Projects $27.4 8.6%
Maintenance $21.9 6.9%
Technology $8.3 2.6%
Debt Service $25.6 8.0%
Food Service $9.4 3.0%
Total $318.4M
Variance due to rounding
Revenues & Expenditures All Funds (Less CIP)
FY 18 Budget by Revenue Source (Less CIP)
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State & Sales Tax Funds
$134.5 46.2%
Federal Funds $15.6 5.4%
City-County Funds
$121.4 41.7%
Other Funds $13.2 4.5%
Revenue Gap $6.5 2.2%
Total $291.1M
Variance due to rounding
FY 18 Budget by Category (Less CIP)
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Instruction $194.3 66.8%
Administration $5.0 1.7%
Attendance/ Health $5.5 1.9%
Transportation $21.0 7.2%
Maintenance $21.9 7.5%
Technology $8.3 2.9%
Debt Service $25.6 8.8%
Food Service $9.4 3.2%
Total $291.1M
Variance due to rounding
Description FY18
Proposed Budget
Instruction $194.3M Administration $5.0M Attendance & Health $5.5M Transportation/Fleet Services $21.0M Maintenance Services $21.9M School Food Services $9.4M Educational Technology $8.3M Debt Service $25.6M
Grand Total $291.1M
FY 2018 proposed budget less CIP total $291.1M, which represents a $7.6M, or 2.7%, increase over the FY 2017 Adopted Budget.
FY 2018 Proposed Budget by Category (Less CIP)
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Variance due to rounding
Revenue & Expenditures Operating Fund Only (Less CIP)
Differences due to rounding
Operating Fund Revenues (Less CIP)
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SourceFY 17
Adopted Budget
FY 18 Proposed
Budget
$Variance
%Change
State Total 129,944,685$ 131,977,899$ 2,033,214$ 1.6%
Federal Funds 9,736,033$ 10,380,711$ 644,678$ 6.6%
City-County Funds* 122,345,837$ 120,216,944$ (2,128,893)$ (1.7%)
Other Funds 5,001,558$ 5,096,101$ 94,543$ 1.9%
Revenue Gap -$ 6,475,083$ 6,475,083$ 100.0%
Total Funds 267,028,113$ 274,146,738$ 7,118,625$ 2.7%
* The remaining $1,158,371 is allocated to Governor’s School and Adult Education
Differences due to rounding
Operating Fund Revenues (Less CIP)
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State Total $132.0
48%
Federal Funds $10.4 3.8%
City-County Funds
$120.2 44%
Other Funds $5.1 1.9%
Revenue Gap $6.5 2.4%
Total $274.1M
Differences due to rounding
FY 2018 Operating Fund – Expenditures By Category (Less CIP)
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Instruction $190.5 69.5%
Administration $5.0 1.8%
Attendance/ Health $5.5 2.0%
Transportation $18.2 6.6%
Maintenance $21.1 7.7%
Technology $8.2 3.0%
Debt Service $25.6 9.4%
Total $274.1M
Differences due to rounding 41
Object DescriptionFY 17
Adopted Budget
FY 18 Proposed
Budget
$Variance
%Change
Salaries/Wages 143,736,865$ 145,553,773$ 1,816,908$ 1.3%
Employee Benefits 67,005,772$ 72,890,085$ 5,884,313$ 8.8%
Purchase Services 13,391,897$ 13,402,593$ 10,696$ 0.1%
Other Charges 10,007,604$ 9,405,403$ (602,201)$ (6.0%)
Materials & Supplies 7,492,694$ 7,309,182$ (183,512)$ (2.4%)
Debt Service/Capital Outlay
25,393,281$ 25,585,702$ 192,421$ 0.8%
Total 267,028,113$ 274,146,738$ 7,118,625$ 2.7%
Operating Fund – Expenditures By Object (Less CIP)
Budget Efficiencies & Investments
How Has the Division Balanced Prior Year Budgets 2013 – 2017?
New State/ Local Funds
Deferred CIP
Purchases
Bond Refinancing by County
Central Office
Restructuring
Use of Health
Reserve
Early Retirement Program
Across the Board
Non-comp Cuts
Lapse Personnel
Dollars
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Outsourcing Food Services
Outsourcing Custodial Services
Joint Fleet Maintenance Operation
Joint Health Insurance Contract
Use of Interest Earned Versus Borrowing
Refinancing CIP Debt with Assistance of County
LED Lighting
Renovations/Expansions Versus New Construction
10 Year Cost Containment Implementations
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Preliminary Budget Gap
Budget Amount
Preliminary Revenues $267,671,655
Projected Expenditures $274,146,738
Preliminary Budget Gap ($6,475,083)
FY 2018 Operating Budget Fund Gap (Less CIP)
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Budget Gap
Description Revenue Gap 2% COLA Increase (2,349,942)$ Health Insurance Increase (2,515,893) VRS Increase (1,385,501) Lower Athletic Fee from $75 to $60 (51,492)
Increase Substitute rates by $5 per day (116,364)
Restore Stipends by 5% (55,892)
Total (6,475,083)$
Preliminary Budget Gap
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Maximizing Investments
The Stockdale Paradox
Retain faith that you will prevail in the end, regardless of the difficulties.
Confront the most brutal facts of your current reality, whatever they might be.
AND at the same time
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“Focus on Quality first and everything else will follow.”
Edwards Deming
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Leaders that go from good to great start not with “where” but with “who”. … first the people, then the direction.
Jim Collins
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Despite concerning funding trends and continued budget uncertainty, we can and should remain
confident regarding the future. SCPS staff, students, community and leaders continue to exemplify our
mission, propelling us forward as evidenced by continuous improvement efforts and results.
In this new normal of annual fiscal uncertainty and
annual budget shortfalls, we should remain steadfast in our commitment to valuing, honoring, celebrating and
rewarding the ever-challenging work of people delivering the services
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How does our school division maximize already strained resources in an attempt to
transcend fiscal challenges?
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Mission Together, we prepare our students for their future.
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Living the Mission
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Living the Mission
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VISION SCPS is a leading school division
that inspires and empowers all
students to become creative
thinkers, problem solvers
and effective communicators.
Our Students • 52% Male, 48% Female • 58% White, 18% Black, 15% Hispanic, 2% Asian, 7% Other • 12% receiving Special Education
services • 38% receiving Free/Reduced Price
Meals • 11% in Gifted Education services • 5.5% are English Learners • 62 Languages spoken
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Personalized Learning Centers
STEM/Engineering
Humanities
Fine and Performing Arts
STEM/Agriculture
Career and Technical Expansion
Virtual School
AP Capstone/IB
Business
Governor’s School
JROTC VISION SCPS is a leading school division
that inspires and empowers all students to
become creative thinkers,
problem solvers and effective
communicators.
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SCPS Core Values Student-Centered Leadership Accountability Cultural Proficiency Excellence Effective Communication Teamwork Citizenship
Our Staff • 1346 Administrators and Support
Staff • 1761 Teachers • 55% of Teaching Staff holds
Advanced Degrees • Average years of Teaching
Experience is 13 • 46 National Board Certified
Teachers • 71% of Staff resides within
Spotsylvania County
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Teaching & Learning Prepare all students to be college and career ready.
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Teaching & Learning Prepare all students to be college and career ready.
Evidence of Continuous Improvement 5% rise in On-Time Graduation Rate
since 2012
7% rise in Math Performance and 5% rise in Reading Performance since 2014
3% rise in Science and 2% rise in
Social Studies performance since 2014
2-11% rise in Reading and Math Performance, closing achievement gaps among minority, ECD, Hispanic, and SWD
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Teaching & Learning Prepare all students to be college and career ready.
Evidence of Continuous Improvement 9% rise in Reading Performance and
8% rise in Math Performance at the Elementary School Level since 2014
8% rise at Middle School Level and 5% rise at High School Level in Math Performance since 2014
Improving Trends in Advanced Placement, SAT, ACT, and CTE participation and performance
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Community Engagement &
Partnerships Goal
Family, students, staff and the entire
community actively engage to seek
resources and to develop opportunities
that meet future educational challenges and workforce needs.
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SCPS Partners In Education
427 Partners In Education
Community Engagement & Partnerships
Goal
Family, students, staff and the entire
community actively engage to seek
resources and to develop opportunities
that meet future educational challenges and workforce needs.
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Organizational Climate &
School Safety Goal
The learning and working
environment is safe, caring, healthy and
values diversity.
Evidence of Continuous Improvement PBIS training and effective
implementation
Structural enhancements to building entrances
Enhanced visitor protocols
Decline in disciplinary incidents, suspension rates
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Setting/Keeping Pace
CTE Completers
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CTE Industry Certifications
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CTE Graduation Rates Compared to the State
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Accreditation Status for Largest 15 Virginia School Divisions
State of Virginia 1490/1828 schools 82%
Arlington 32/32 schools 100%
Hanover 23/23 schools 100%
Stafford 30/30 schools 100%
Loudon 84/87 schools 97%
Virginia Beach 77/82 schools 94%
Fairfax 183/194 schools 94%
Chesterfield 57/61 schools 93%
Spotsylvania 26/29 schools 90%
Prince William 79/90 schools 88%
Chesapeake 34/45 schools 76%
Henrico 48/67 schools 72%
Hampton 17/29 schools 59%
Newport News 20/38 schools 53%
Norfolk 23/45 schools 51%
Richmond City 17/45 schools 38% 76
Spotsylvania County Public Schools STRATEGIC PLANNING GOALS
CORE VALUES
MISSION STATEMENT: Together, we prepare our students for their future.
Community Engagement and Partnerships
Cultural Proficiency Excellence
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Next Steps
Increased Local Revenues and/or State Revenues
Lower VRS Rate Increase
Refinance Debt Modernize Health Plans
Non-Comp Budget
Reductions
Reduce/Cut Comp Proposed
FTE Budget Reductions
Lower Health Insurance Rate
Increase
Budget Gap Closing Options
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Critical FY18 Budget Dates
Date and Time Budget Meeting/Topic
Wed, Feb 1 (6:30 p.m.) School Board Budget Work Session
Tues, Feb 7 (7:00 p.m.) School Board Budget Work Session and Budget Public Hearing
Mon, Feb 13 (6:30 p.m.) School Board Approves – FY18 Operating Budget and 2018-2022 CIP
Tues, Feb 14 (4:30 p.m.) County Administrator Presents Recommended Budget to BOS
Tues, Feb 28 (6:00 p.m.) School Board Presents FY18 Budget to BOS
Tues, March 7 (6:00 p.m.) Joint Budget Work Session
Tues, March 14 (4:30 p.m.) Board of Supervisors (BOS) Approves Advertised Tax Rate
Tues, March 28 (6:30 p.m.) BOS Public Budget Hearing at Courtland High School
Tues, April 11 (4:30 p.m.) BOS Adopts FY18 Budget and Current Year Tax Rates
Wed, April 12 (6:30 p.m.) School Board Budget Work Session
Mon, May 1 (6:30 p.m.) School Board Adopts – FY18 Operating Budget and 2018-2022 CIP
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