So…what did we accomplish in the FY17 budget? Provided minimum 2% across the board salary increases Improved teacher pay scale with starting pay at $42,238 Aligned health care benefits with market in shared effort with local government Adopted market-based compensation model for maintenance and technology staff, establishing market entry as initial goal Implemented elementary class size standards, reducing class size Implemented new financial management system

So…what is different about FY18 budget development? Non-compensation budget built in MUNIS Reviewed 3-year adopted/actual with every fund manager Implemented new budget codes, effectively implementing zero- based budget Established new budget code baselines

MUNIS Reporting

School Board Budget Goals: Baseline Direct resources to support staffing and training to assist students in meeting basic Virginia standards and requirements  Support C5W work and training for staff Fund 5 Diagnosticians Continue targeting professional development and compensation for critical need areas Continue implementation of the School Board approved staffing plan as it relates to class size reduction Fund VRS mandated increase Provide 1% increase to all employees not subject to teacher contract adjustment Establish paraprofessional, bus driver, and nurse compensation models based on market-driven data to enhance pay scales Continue to support market median compensation model for teachers

Recommended 2017-18 FY17 Adopted Budget $269,152,658 FY18 Recommended Budget $282,239,030 Increase $ 13,086,372 The 4.86% increase uses the Governor’s proposed budget; assumes 5% increase in health care covered by division; uses a projected increase in average daily membership (ADM) of 701 students; assumes a 2% increase in local revenue; and requires $5,884,348 in additional revenue. The County obligation for school debt service is projected to decrease.

FY18 Projected Revenue

Funding Gap ~$5.9M

Proposed FTE Increase: 68 Position Number Teachers 35.50 (includes 11.5 added after FY17 adoption) Paraprofessionals 17 (includes 2.0 added after FY17 adoption) Educational Diagnosticians 5 Counselors 2.5 ABA Therapist 1 Family Service - VPI Math Specialists 2 Computer Technician Trainer (CTT) Head Start Custodians (2) Accountability Specialist 1 (added after FY 17 adoption) World Language/Culture Facilitator VRS Specialist Demographics Planner ERP Systems Analyst

Total Rewards Compensation Benefits Work Life Recognition Professional Development

Total Investment in Employee Example

Compensation and Benefits Highlights Area Amount Maintain additional ~1% for teachers $1,101,454 Extend 1% increase to all employees $626,236 Enhance scale $1,100,000 Fund VRS rate increase $2,514,802 Offset projected health insurance increase $985,412 Establish merit pool $61,088 Provide bonuses TBD

Bus Driver Turnover The focus for Bus Drivers is the 1 year turnover rate. We have experienced a turnover rate of about 25% over the last few years. Of those who left, about half left the first year. It is one of the highest turnover rates among employee groups, even though we have other employee groups that are farther out-of-market than bus drivers and monitors. This chart shows the last 2 years (through October of this year) of turnover by years of service.

Comparison Data: Bus Driver School District Starting Mid High *Albemarle $12.80* $16.83 $20.88 Chesapeake $14.28 $17.82 $22.82 Chesterfield $15.65 $21.18 $26.72 Fauquier $13.89 $17.58 $21.26 Hanover $14.70 $21.41 $28.11 Henrico $14.69 $19.46 $26.41 Loudoun $14.07 $18.61 $26.58 Prince William $15.46 $23.09 $34.44 Spotsylvania $17.85 $25.47 $29.05 Average $14.82 $20.16 $26.25 *Stafford $13.69* $19.83 $29.00 We used our comparison school divisions (which also matches those used by Stafford County Government for comparison). Stafford ranks among the lowest and below the average in hourly starting rates – even after factoring in cost-of-living adjustments. Note: Rates adjusted to include index for cost of living

Stafford Pay Band Hourly Rates Bus Driver Data   Current Pay Scale Start Mid Max Drivers $13.69 $19.83 $29.00 Stafford Pay Band Hourly Rates Bus Driver Market Data   Min Mid Max  Start High A008 $12.13 $14.86 $20.02 A009 $13.33 $16.33 $22.00 A01 $14.65 $17.95 $24.17 $14.82 $20.16 $26.25 A02 $16.11 $19.75 $26.58 A03 $17.39 $21.71 $28.67 A04 $19.10 $23.90 $29.61 Here you can see the proposals for bus drivers. Please note, this model does not lower anyone’s current hourly rate. The bands are a start and individuals may fall anywhere within the band. In other words, you will have an hourly rate that may or may not show up on the band, but you will be progressing along a particular band.

Compensation Plan: Drivers* Bus Driver 1 Pay Band A01 First year drivers Bus Driver 2 Pay Band A02 One year satisfactory service Defensive Driver Training Behavior Management Training Lead Bus Driver/Trainers Pay Band A03 *Maintain support for attendance bonuses In looking at a compensation plan for Transportation, we also looked into “tiers” to recognize differences in a first year and other drivers as well as differentiating pay for lead drivers and trainers.

Transportation Employees in Current Proposal Total Employees Below Minimum Bus Drivers 178 115 Bus Monitors 43 41 Based on the October 1st payroll, approximately 65% of the drivers and 95% of the monitors would automatically receive an increase to bring them up to the market. This is in addition to the COLA. All others would receive, at a minimum, the COLA.

Health Insurance – Project 5% Increase

2016 Climate Survey Results (n=2,576) Leadership: 2015 2016 Difference Treats me with respect. 81% 86% +5% Is effective. 65% 75% +10% Facilitates communication effectively. 60% 68% +8% Is effective in helping us reach our mission and vision. 66% 72% +6%

Professional Development and Growth Continued support for New Teacher Institute Continued support for course/conference reimbursement Funding for year 2 of the Teaching and Learning Summit Funding for realignment of the Office of Learning and Organizational Development

Additional Expenditure Considerations Replacement Cycles Technology – On schedule to maintain current inventory Transportation – 15 buses included Staffing Differentiation Additional elementary clerical funds based on enrollment Additional 5 diagnosticians Redirection of Savings Budgeted salary attrition/lapse - $1M Operational savings of $850k Contingency Unfunded contingency - $1M New funded contingency - $500k

Capital Improvement (Infrastructure) Needs Exceed $6M: Fund $2M with Current Year Savings Description Estimated Cost Fire alarm repair - RES $154,000 Upgrade fire alarm panel – AGWMS/GES $245,000 Replace wheel chair lifts – AGWMS/GES $35,000 Repair track - CFHS $700,000 Repair roof (kitchen) - HOES $110,000 Design repairs – GMC, HES, NSHS, PRES, WES $250,000 Upgrade 911 duress system – all schools $150,000 Repair roof - GMC $370,000

What’s Next? January 21 Budget Books Distributed January 24 School Board Work Session 5:00 p.m. January 24 Public Budget Hearing 7:00 p.m. February 11 School Board Work Session 9:30 a.m. February 14 School Board Work Session 5:00 p.m. February 28 School Board Consideration and Approval of the FY18 Budgets