2. 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

4. 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

5. MUNIS Reporting

6. 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

7. 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.

8. FY18 Projected Revenue

9. Funding Gap
~$5.9M

10. 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

11. Total Rewards Compensation Benefits Work Life Recognition
Professional Development

12. Total Investment in Employee Example

13. 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

14. 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.

15. 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

16. 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.

17. Compensation Plan: Drivers*
Bus Driver Pay Band A01
First year drivers
Bus Driver 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.

18. 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.

19. Health Insurance – Project 5% Increase

20. 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%

21. 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

22. 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

23. 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

25. 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