School Board Approved Budget: FY Submitted to Board of Supervisors for Approval Rockingham County Public Schools March 28, 2012 Slide 2

RCPS Budget Timeline Oct, 2011Budget process begun Jan 10, 2012Public hearing at CRES Jan 23, 2012Board reviewed all expenditure requests Feb 13, 2012Board reviewed Governors budget Feb 27, 2012Governor, Senate & House budgets Mar 12, 2012Budget Priorities Discussed Mar 21, 2012Superintendents Recommended Budget Mar 26, 2012 Public Hearing at DLC Mar 28, 2012Board Approved Budget Slide 3

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Expenditure Highlights Rate Increases Set by State$3,624,000 o VRS (unfunded retirement) o Group Life o Retiree Health Care Credit Employee Portion of Group Life$447,537 o May be Being picked up by RCPS o Contingent upon final state revenue Slide 6

Expenditure Highlights (continued) VRS 5 for 5 Shift (Plan 1 Employees) $578,930 o From VRS line to salary line o Increased expense to RCPS VRS Hold Harmless (Plan 1 Employees) $485,260 o Increased employee FICA on 5% adjustment in salary Slide 7

Expenditure Highlights (continued) Health Insurance*$900,000 $650,000 o October 1 annual renewal o Anticipated 5% Anthem Renewal increase o We will commit our efforts to keep any increases to a minimum; employer and employee expected to experience an increased cost next year *Change from March 21, 2012 request Slide 8

Expenditure Highlights (continued) Instructional Needs$241,000 o SPED Tuition for Regional Program Textbooks (Fund 203)*$600,000 o (Consumables K-12, 3rd Grade Math)$550,000 * Change from March 21, 2012 request Slide 9

Expenditure Highlights (continued) New Personnel* o School Resource Officer$46,000 o Contingent upon final state budget o Elem/Middle/High FTEs due$354,000 to changes in course offerings and enrollment shifts Total* $400,000 $0 *Change from March 21, 2012 request Slide 10

Expenditure Highlights (continued) 1.5% Average Raise* o School Board may elect to fix certain job categories in need of additional compensation Total Cost*$1,215,000 $0 *Change from March 21, 2012 request Slide 11

Expenditure Reductions Supplemental Retirement Program$200,000 Transportation$50,000 Maintenance$50,000 Food Service$96,000 o Transfer of Funding Source for Food Service Expense Technology (2 positions - attrition)$100,000 Additional Reductions TBD$140,000 TOTAL$636,000 Slide 12

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Revenue Highlights – State Based on House Version No General Assembly Approved Budget Overall State Funding Down$153,459 Contributing Factors: o Decreased ADM (11,350 -> 11,203) o Increased Composite Index ( > 36.75) Slide 15

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Revenue Highlights - Federal Title II Part A Decrease$168,000 Title II Part D Eliminated$12,500 Federal Jobs Bill Revenue$2,526,000 Slide 17

Revenue Highlights - Local FY 2013 Allocation Request*$52,551,609 o Operating Fund$50,686,609 Increase for operating fund*$7,328,679 $5,463,679 Textbook Fund – 203 Request*$600,000 $550,000 Overall Request*$7,928,679 $6,013,679 *Change from March 21, 2012 request Slide 18

The Good News in this Proposed Budget Provides the 5% adjustment upfront allowing employees to pay the required 5% VRS (Plan 1 employees) Increases the employee's contracted salary 5%, a future investment (Plan 1 employees) Ensures the employee is "held harmless" with no costs assumed by the employee for the VRS adjustment (Group Life to be determined) Provides a 1.5% "average" salary increase for most contracted employees Keeps support for instruction and the classroom a priority Slide 19

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Rockingham County Public Schools-- Where Excellence is Commonplace Slide 24