2. Factors Impacting the Budget FY2013-2014 Revenue Shortfalls Salary/VRS 1% Implementation Salary Increase 1% No Furlough Days Health Insurance Rate Increase

3. Local appropriation o City of Richmond State support o SOQ Programs o Sales Tax o Lottery Funded Programs Other o Tuition & fees Federal support o Impact Aid o Air Force o Army Reserve *Excludes federally restricted funds such as Title I & IDEA The two major funding sources for the general operating budget are the City of Richmond and the Virginia Department of Education. Revenue Sources for the Budget FY2013-2014

4. NET REVENUE CHANGES BY CATEGORY One-Time Funding:- $ 6,829,300 Net State Revenue Gain:4,148,658 Net Other Revenue Loss:-822,400 Net Federal Revenue Gain: 55,500 Net Revenue Change - $ 3,447,542 Net Revenue Changes FY2013-2014

5. What it pays for: Instruction Admin, Attendance & Health Pupil Transportation Operations, Maintenance & Facilities Fund Transfers What it does not pay for: Construction/Capital Projects School Nutrition Services State Operated Programs Federal Programs (Title I, IDEA) Other Pass-Through Programs (Maggie Walker, MSiC) The pie chart shown below represents functional spending for the general operating budget as defined by the Virginia Department of Education. Expenditures for the Budget FY2013-2014 *Data based on VDOE Chart of Accounts; not based on Standards of Quality (SOQ) Funding Methodology

6. NET EXPENDITURE CHANGES BY CATEGORY 1% Salary Increase with 1% VRS Offset$ 450,000 1% Raise (all employees-includes McDonnells SOQ Proposal) 1,800,000 Reinstate Furlough Days (5)3,387,200 Health Care (estimated 10% increase) 2,500,000 EpiPens18,000 Athletic Trainers 10,000 Net Expenditure Change $ 8,165,200 Net Expenditure Changes FY2013-2014

7. Revenue Decreases$ 3,447,542 Expenditure Increases$ 8,165,200 FY2014 Funding Gap $11,612,742 Projected Budget Summary FY2013-14

8. Proposed Budget Changes FY2013-14

9. Proposed Budget Changes FY2013-14