FY2019-2020 Superintendent’s Proposed

Budget

Dr. Kevin Newman

Superintendent

February 12, 2019

2

FY 2018-2019 Proposed Budget Presentation Overview

• State and Local Funding History and Student Per Pupil Costs

• Division Student Enrollment & Demographic Trends

• FY 2019-2020 Proposed Budget

• Upcoming Budget Meetings

3

State Revenue is Slightly Rising

Source: Governor’s FY19-FY20 Budget

FY2019 State Revenue Increase 1.82%

FY2020 State Revenue Increase 2.26%

4

Revenue Impact

Source: Governor’s FY19-FY20 Budget

MCPS Step Increase for teachers & support staff and 2% of mid-point for administration.

1,191,485$

1,397,810$

(206,325)$

Additional State Revenue

Difference

Compensation Increase to Fulfill

State Requirement

5

2018 Session Introduced Budget State Per PupilK-12 Direct Aid (All Funds)Nominal and Inflation-Adjusted (CPI $2005)$6,000

$5,616 $5,665

$5,000

$4,000

$3,000

$2,000

$1,000

$0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$5,459

$5,274 $5,271

$5,000 $5,028 $5,075

$4,868$4,966

$4,804 $4,862

$4,692$4,562

$4,382

$4,215

$4,481 $4,513 $4,546$4,404

$4,204 $4,238$4,084

$4,168$4,048 $4,057

$4,134

$3,896 $3,958 $3,942$3,810

State Funding continues to lag behind inflation (36%) and does not

meet true needs.

6

City Per Pupil Funding - Inflation Adjusted

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020*

$6,265

$6

,87

0

$7

,89

3

$7

,08

0

$6

,23

2

$5

,88

5

$5

,93

6

$5

,97

7

$6

,13

9

$6

,38

4

$6

,12

5

$6

,04

8

$5

,93

0

$5

,59

0

$5,858

$6

,44

3

$6

,69

1

$6

,66

7

$6

,77

6

$6

,99

0

$7

,13

5

$7

,23

9

$7

,35

7

$7

,36

6

$7

,45

9

$7

,61

7

$7

,80

4

$7

,80

4

$7,804

City Per Pupil Inflation Adjusted

City Funding is 33.2% below the rate of inflation since 2006.

7FY19 & FY20 data is projected

MCPS Per Student Funding

Source: VDOE Annual School Reports

School Year City State Sales Tax Federal Total Inflation

Ending June Per Pupil Per Pupil Per Pupil Per Pupil Per Pupil Adjusted

2006 6,265$ 3,556$ 989$ 491$ 11,301$ 11,301$

2007 6,870$ 4,171$ 1,064$ 531$ 12,636$ 11,623$

2008 7,893$ 3,243$ 1,072$ 541$ 12,749$ 12,069$

2009 7,080$ 4,321$ 961$ 679$ 13,041$ 12,026$

2010 6,232$ 3,770$ 831$ 1,137$ 11,970$ 12,223$

2011 5,885$ 4,037$ 851$ 933$ 11,706$ 12,609$

2012 5,936$ 4,234$ 860$ 942$ 11,972$ 12,870$

2013 5,977$ 4,850$ 940$ 752$ 12,519$ 13,059$

2014 6,139$ 4,910$ 961$ 719$ 12,729$ 13,271$

2015 6,384$ 5,178$ 988$ 751$ 13,301$ 13,286$

2016 6,125$ 5,188$ 988$ 735$ 13,036$ 13,454$

2017 6,048$ 5,316$ 986$ 804$ 13,154$ 13,741$

2018 5,930$ 5,498$ 937$ 761$ 13,126$ 14,076$

2019* 5,590$ 5,960$ 1,050$ 883$ 13,483$ 14,076$

2020* 5,858$ 6,114$ 1,103$ 880$ 13,955$

Percent Difference

FY06 to FY19 -6.50% 71.93% 11.53% 79.23% 23.48% 24.56%

8FY19 & FY20 data is projected

MCPS Per Pupil Funding By Source

Source: VDOE Annual School Reports

$6,265

$7,893 $6,384

$5,858

$3,556 $4,321 $5,188

$6,114

$11,301

$12,749 $13,301

$13,154 $13,126

$13,483 $13,955

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020*

Per Pupil Funding By Source

City Per Pupil State Per Pupil Sales Tax Per Pupil Federal Per Pupil Total Per Pupil

Total Per Pupil Funding relatively flat 2015 – 2019.

9

MCPS Enrollment Trend

Elementary Intermediate Middle High Percent

September 30 (Grades PK-4) (Grades 5-6) (Grades 7-8) (Grades9-12) Division Change

2018 3,177 1,190 1,142 2,186 7,695 -0.98%

2017 3,262 1,212 1,096 2,201 7,771 1.21%

2016 3,258 1,176 1,052 2,192 7,678 1.36%

2015 3,284 1,110 1,022 2,159 7,575 3.55%

2014 3,072 1,056 1,014 2,173 7,315 3.38%

2013 2,976 1,040 991 2,069 7,076 -1.99%

2012 3,057 1,058 999 2,106 7,220 1.63%

2011 3,022 1,015 1,032 2,035 7,104 2.42%

2010 2,913 1,011 1,010 2,002 6,936 1.05%

2009 2,783 1,057 992 2,032 6,864 4.54%

2008 2,679 984 986 1,917 6,566 1.42%

2007 2,653 922 949 1,950 6,474 -1.54%

2006 2,731 987 954 1,903 6,575

% Change

2006 - 2018 16.33% 20.57% 19.71% 14.87% 17.03%

Budget Pressures

10

Economically Disadvantaged 66%

Special Education 12%English Language Learners (ELL) 49%

Source: VDOE Statistical Reports

23.46%

46.92%

58.85% 66.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2005/20062006/20072007/20082008/20092009/20102010/20112011/20122012/20132013/20142014/20152015/2016 2016/17 2017/18 Dec 2018

Free & Reduced Lunch Percentage

High percentage of Economically Disadvantaged & ELL students requires additional supports to achieve the same results as other homogenous school divisions.

Summary – Per Pupil Funding

11ELL = English Language Learners

$11,301

$12,749 $13,301

$13,036 $13,154 $13,126 $13,483 $13,955

$6,265

$7,893 $6,384

$5,858

$3,556 $3,243

$5,178

$6,114

0%

10%

20%

30%

40%

50%

60%

70%

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*

Per Pupil Funding By Source

Sales Tax Per Pupil Federal Per Pupil Total Per Pupil City Per Pupil State Per Pupil Poverty ELL

Economically Disadvantaged students make-up 2/3 of the student population.Ell

2020*

MCPS has the highest percentage of ELL students in the State.

12

Community PriorityBudget Issues

Respondents were asked to indicate their support for changing the service levels for services that are provided using general tax revenues. Education and police services were the two services that received the highest number of responses indicating support for an increase in services. Corrections and libraries received the lowest number of responses supporting an increase in services. Corrections and community appearance received the highest number of responses indicating that there should be no change in service. Libraries and Development services received the highest percentage of responses indicating a support for reductions.

Source: City of Manassas 2018 Community Survey: Findings Report

13

Community Investment Priority• Overall Priorities for the City by Major Category. This analysis

reviewed the importance of and satisfaction with major categories of City services. This analysis was conducted to help set the overall priorities for the City. Based on the results of this analysis, the major services that are recommended as the top priorities for investment over the next two years in order to raise the City’s overall satisfaction rating are listed below:

• Flow of traffic and ease of getting around the City

• Quality of public education

• Quality of economic development

Source: City of Manassas 2018 Community Survey: Findings Report

Section 22.1-92 Code of Virginia

It shall be the duty of each division superintendent to prepare, with the approval of the school board, and submit to the governing body or bodies appropriating funds for the school division, by the date specified in § 15.2-2503, the estimate of the amount of money deemed to be needed during the next fiscal year for the support of the public schools of the school division. The estimate shall set up the amount of money deemed to be needed for each major classification prescribed by the Board of Education and such other headings or items as may be necessary.

14

Duty of the Superintendent

15

FY 2019-2020 Proposed Budget

Description ExplanationSchool Operating

Fund Amount

School / Dept RequestRequests are submitted by departments/schools. $110,332,822

Superintendent/Executive Team Determination of Need

Requests were reviewed with Principals, Executive Team and Superintendent to determine the true needs of the division.

$108,295,910

Superintendent Request Based on Projected Funding

Superintendent & Executive Team review all requests and determine program priority within projected funding.

$104,363,420

School Board Approved/Adopted

Based on School Board approved adjustment & final approved funding.

TBD

FY2019-2020 Budget Proposal

What’s in the Budget?

• Compensation increase for employees on their respective scales – meets Governor’s Proposal

• Projected Health Insurance Rate Increase

• Contribution to dedicated New Dean School fund balance

• Instructional/support staffing changes to meet evolving student needs

• Unfunded State Mandates

• Classroom Instructional Technology

• Inflationary impacts of goods and services16

FY2019-2020 Budget Proposal

Unfunded Needs

• Cost of Living Adjustment

• Full Funding of Dean School Projected Debt

• Gifted &Talented Program Enhancement

• Part-Time Employee Health Insurance Contribution

• Additional English Language Learners (ELL) Teachers

• Computer Lab Teachers

• Technology Software Requests

• Change from 5 Tier Bus Routing to 4 Tiers 17

18

Five Year 2019/20 Capital Improvement PlanRevised

FY 2019 FY 2020 FY2021 FY2022 FY2023 FY2024 Total Project

Funding Sources

City Transfer - Pay As You Go $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $18,000,000

Funds Transferred to/from CIP Fund Balance (606,000)$ -$ 557,000$ 49,000$ -$ -$ -$

Transfer to Debt Fund - Dean School (1,500,000)$ -$ -$ -$ -$ -$ (1,500,000)$

Bonds -$ -$ 60,847,085$ 2,141,000$ -$ -$ 62,988,085$

Total $894,000 $3,000,000 $64,404,085 $5,190,000 $3,000,000 $3,000,000 $79,488,085

Project Expenditures

Division Wide 894,000$ 800,000$ 1,057,000$ 950,000$ 1,175,000$ 825,000$ 5,701,000$

Division Wide Technology Upgrades 175,000$ 175,000$ 250,000$ $200,000 $200,000 $200,000 1,200,000$

Division Wide School Bus Replacements 599,000$ 500,000$ 486,000$ $500,000 $500,000 $500,000 3,085,000$

Division Wide School Bus Additions 120,000$ 125,000$ 121,000$ -$ 125,000$ 125,000$ 616,000$

Division Wide Classroom Trailers -$ -$ 200,000$ 250,000$ 250,000$ -$ 700,000$

Division Wide - Restroom Refurbishment -$ -$ -$ -$ 100,000$ -$ 100,000$

Central Office -$ -$ 500,000$ 4,240,000$ 1,594,000$ -$ 6,334,000$

Central Office Architectural & Engineering -$ -$ 500,000$ -$ -$ -$ 500,000$

Central Office Replacement -$ -$ -$ 4,240,000$ 1,594,000$ -$ 5,834,000$

Osbourn -$ -$ -$ -$ 44,000$ 1,800,000$ 1,844,000$

Cooling Tower & Chiller Replacement -$ -$ -$ -$ -$ 1,000,000$ 1,000,000$

Hallway Flooring Replacement -$ -$ -$ -$ 500,000$ 500,000$

Restroom Refurbishment -$ -$ -$ -$ 44,000$ 50,000$ 94,000$

Osbourn - Parking Lot Improvements -$ -$ -$ -$ -$ 250,000$ 250,000$

Metz -$ -$ -$ -$ -$ 275,000$ 275,000$

Metz - Classroom Flooring Replacement -$ -$ -$ -$ 275,000$ 275,000$

Mayfield -$ -$ 2,000,000$ -$ -$ -$ 2,000,000$

Roof Replacement -$ -$ 2,000,000$ -$ -$ -$ 2,000,000$

Dean -$ -$ 60,847,085$ -$ -$ -$ 60,847,085$

New Dean School -$ -$ 60,847,085$ -$ -$ -$ 60,847,085$

Baldwin -$ -$ -$ -$ -$ -$ -$

Haydon -$ -$ -$ -$ -$ 100,000$ 100,000$

Parking Lot -$ -$ -$ -$ -$ 100,000$ 100,000$

Round -$ 2,200,000$ -$ -$ -$ -$ 2,200,000$

Round - Phased BAS/HVAC Replacement -$ 2,200,000$ -$ -$ -$ -$ 2,200,000$

Weems -$ -$ -$ -$ 187,000$ -$ 187,000$

Weems- Parking Lot Seal Coat & Crack Repair -$ -$ -$ -$ 40,000$ -$ 40,000$

Partial Maintenance Roof -$ -$ -$ -$ 84,000$ -$ 84,000$

Interior Paint -$ -$ -$ -$ 63,000$ -$ 63,000$

Total MCPS Projects 894,000$ $3,000,000 64,404,085$ $5,190,000 3,000,000$ 3,000,000$ 79,488,085$

5 Year Capital Improvement Plan

19

Revenue AssumptionsTotal CIP Debt Operating

Revenue All Funds Funds Service Fund

City 58,889,475$ 3,000,000$ 6,273,514$ 49,615,961$

State 54,349,350$ -$ -$ 54,349,350$

Federal 6,754,872$ -$ -$ 6,754,872$

Other Local 1,356,650$ -$ -$ 1,356,650$

Bonds -$ -$ -$ -$

Transfer From FY19 CIP 1,500,000$ 1,500,000$ -$

Total 122,850,347$ 3,000,000$ 7,773,514$ 112,076,833$

20

Revenue AssumptionsOperating Food Service Federal Grant School Operating

Revenue Fund Fund Fund Fund

City 49,615,961$ -$ 49,615,961$

State 54,349,350$ 110,891$ 54,238,459$

Federal 6,754,872$ 2,960,100$ 3,794,772$ -$

Other Local 1,356,650$ 847,650$ 509,000$

Bonds -$ -$ -$

Transfer From FY19 CIP -$ -$ -$

Total 112,076,833$ 3,918,641$ 3,794,772$ 104,363,420$

21

FY 2019-2020 School Operating Fund Summary by Location

SUMMARY BY LOCATION AMOUNT PCT.

School Base Costs 82,946,291 79.5%

Information Technology Services 4,413,509 4.2%

Student Achievement 5,396,654 5.2%

Transportation 4,210,375 4.0%

Facilities and Maintenance 2,826,982 2.7%

Health & Student Services 1,489,581 1.4%

Human Resources 1,410,966 1.4%

Financial & Purchasing Services 1,168,099 1.1%

Board & Superintendent Services 1,032,793 1.0%

Communications & Public Relations 318,169 0.3%

Non-Department -849,999 -0.8%

TOTAL 104,363,420 100.0%

Operating Fund Expenditures

22

Salaries and Wages

62,834,091 60.21%

Fringe Benefits24,062,749

23.06%

Purchased Services9,192,727

8.8%

Other Charges*2,842,137

2.72%

Materials and Supplies4,870,427

4.67%

Capital Outlay211,289

.20%

Contingency350,000

.34%

2019-2020Total Operating Fund Budget

$104,363,420

* Includes utilities, communications, and other misc. costs

83.27%Personnel and Benefits

School Board Budget Work Sessions:

Date Location

February 19 Budget Work Session, 7:00PM Central Office Board Room

March 19 Budget Work Session, 6:00PM Central Office Board Room

April 3 Budget Work Session, 5:30PM Public Works Conference Room

Public Hearing on the Proposed Budget

March 12 – 7 p.m., City Hall

School Board Approves Budget

March 26, 2019 – 7 p.m., City Hall

School Board Presents Approved Budget to Manassas City Council

April 3, 2019 - 5:30 p.m., Public Works Conference Room

23

Public Budget Meetings After Superintendent Proposed Budget

FY2019-2020 Superintendent’s Proposed

Budget

Dr. Kevin Newman

Superintendent

February 12, 2019