1. Budget Planning FY11 Joint Meeting School Board and Board of Supervisors January 18, 2010 7:30 pm

2. Assumptions State revenue projections will be based upon the 2010 – 2012 biennial budget as introduced by Governor Kaine on Friday, December 18, 2009.(HB/SB 30). The student average daily membership (ADM) is projected to be 1800.

3. Proposed Funding Changes Deferral of the new composite indices for the 2010 – 2012 biennium until fiscal year 2012 Increases in the employer rates for fringe benefit contributions paid to the Virginia Retirement System (VRS) Adjustment/increase in the funded health care premium Transfer of FY11 State Fiscal Stabilization Fund from localities to state to be used as a portion of Basic Aid in fiscal year FY11

4. FY 11 Projected State Revenue Sales Tax

5. FY 11 Local Required Revenue

6. Standards of Quality (SOQ) Funding is based on minimum requirements. For example: We currently maintain a kindergarten class size of less than 20 students per class. Minimum state requirements allow a 24:1 average with no class being larger than 29:1. A full-time teacher’s aide is required in each class that exceeds 24 students.

7. Budgeted Revenue Source History Budgets FY02 – FY10 Excluding Federal Stimulus Funds

8. Projected Change in Composite Index FY12 Current composite index:.4878 Revised composite index:.5205 Figures based on VDOE Projections FY 2011FY2012 State Share$8,076,295$7,693,639 Local Share$5,878,024$6,238,346

9. Declining Fiscal Resources The anticipated decline in state funding is approximately $1,050,000 in FY11.

10. Local Impact Greatest impact in reductions: ◦ Basic Aid ($249,554) ◦ Sales Tax (86,980) ◦ Textbooks (39,617) ◦ Special Ed (SOQ) (36,878) ◦ Technology (154,000) ◦ School Construction (35,599) ◦ Federal Stimulus (550,805)

11. Local Impact Greatest impact in increases: ◦ Local Match for Textbooks $ 66,336 ◦ Local Match for Facilities $ 45,702 ◦ Increased VRS Rates & $219,619 Funded Health Care Premium  Total Benefit Increase 1.88% required by state  Estimate based on FY10 salaries and health insurance participation rates

12. Total Local Impact In order to maintain our current level of programs and services and to meet the requirements for local matches and pay the required increases in benefits, the school division would need approximately $ 1,210,156 to balance the budget.

13. Major Proposed Reductions Employee costs: ($400,000) Technology: ($126,000) Materials, supplies, equipment, & services: ($100,000) Facilities: ($147,000)

14. Unaddressed Needs Bus Replacement Employee Salaries and Benefits Summer School New Technologies Renovations and Facility Improvements

15. Recap Reduction of 12 employee positions, reductions in extracurricular trips, cuts in technology, materials, supplies, and facilities. Required revenue: ◦ State $7,937,578($567,917) ◦ Federal$ 849,585 $15,264 ◦ Local $8,495,218* $269,375  * Includes debt service  * Actual operating -- $7,763,851