1. Update on School Efficiency Review Program June 7, 2007 Office of the Secretary of Finance Department of Planning and Budget

2. 2 Contents Past, Current and Future Reviews Savings Identified and Implementation of Recommendations Cost Sharing by Divisions

3. 3 24 Completed Reviews Division Final Report DateDivision Final Report Date New Kent County1/6/04York County3/24/06 Roanoke County4/22/04City of Winchester3/24/06 City of Richmond8/23/04Isle of Wight County6/6/06 Stafford County1/11/05Culpeper County6/12/06 Portsmouth4/4/05Clarke County6/15/06 Surry County4/12/05Louisa County6/20/06 Spotsylvania County4/28/05Bath County6/22/06 Williamsburg / James City County6/23/05City of Petersburg1/10/07 Campbell County 10/28/05Alleghany County2/28/07 Smyth County3/16/06City of Covington City2/28/07 Lancaster County3/17/06Montgomery County5/15/07 Dinwiddie County 3/23/06Roanoke City5/21/07

4. 4 Current Reviews DivisionEnrollment* City of Alexandria10,530 Prince William County64,323 Prince Edward County2,661 Mecklenburg County4,813 Note: Enrollment data is from March 31, 2005 Average Daily Attendance data from DOE

5. 5 Recommended Annual Savings DivisionSavingsDivisionSavings Alleghany* $712,663 Petersburg $3,885,197 Bath$461,366Portsmouth$2,123,821 Campbell$350,199Richmond City$2,139,047 Clarke($60,440)Roanoke County$294,816 Covington* $573,651 Smyth$45,026 Culpeper$352,154Spotsylvania$3,949,407 Dinwiddie$1,604,706Stafford$3,000,000 Isle of Wight($432,490)Surry$327,638 Lancaster$18,928Williamsburg / James City County($195,890) Louisa$686,286Winchester$134,103 Montgomery$734,511York$325,538 New Kent$238,800 Total$21,269,037

6. 6 Results Summary Program-identified savings: $21.9 million in annually recurring savings identified in twenty-four reviews -- more money that is now available to be used in the classroom without increasing state support. Three divisions with a net annual cost of $628,000. Net annual savings: $21.2 million.

7. 7 Are the Divisions Implementing Recommendations? This data represents the most current update from each division. School DivisionTotal Percent Implementing*Implemented Implemented by Substitute In Process Will Implement Later Considered and Abandoned Alleghany 80TBD Bath7884.62%23538111 Campbell14562.76%3017442925 Clarke9461.70%46111260 Covington 99TBD Culpeper9470.21%23241280 Dinwiddie11090.91%4105919 Isle of Wight9775.26%471016 7 Lancaster5662.50%6227161 Louisa7788.31%2614127 New Kent2386.96%144203

8. 8 Are the Divisions Implementing Recommendations? This data represents the most current update from each division. School DivisionTotal Percent Implementing*Implemented Implemented by Substitute In Process Will Implement Later Considered and Abandoned Petersburg 90TBD Portsmouth3070.00%132663 Richmond City2777.78%172224 Roanoke County1675.00%92113 Smyth8779.31%2404510 Spotsylvania6989.86%3902352 Stafford6291.94%4021532 Surry6091.67%2802732 Williamsburg - James City County8172.84%31102839 Winchester11060.91%44223356 York8275.61%26136145 Relevant Totals**139872.39%5276348519299 Grand Totals166760.71%5276348519299

9. 9 Cost Sharing by Divisions Budget language and legislative action have increased the local share of payment for this program. Divisions participating are now required to pay 25 percent of the cost of the study, 25 percent of internal direct costs to be reimbursed, plus an additional 25 percent of each if certain implementation targets are not met. All divisions who owe a cost share of their studies have been notified of the amount due and the date due. Local financial obligation has resulted in some localities seeking more local control of the process, protocols, and selection of consultants.

10. 10 Cost Sharing by Divisions DivisionCost of Study25% of StudyDPB OverheadInvoice Total Amounts Received to Date Alleghany*$61,500.00$15,375.00$1,217.86$16,592.86 Covington*$61,500.00$15,375.00$1,217.86$16,592.86 Montgomery$104,875.00$26,218.75$2,155.73$28,374.00$0.00 Alexandria$118,565.00$29,641.25$1,684.30$31,325.55$0.00 Prince William$94,718.00$23,679.50$1296.06$24,975.56$0.00 Mecklenburg$98,950.00$24,737.50$1429.17$26,166.67$0.00 Roanoke City$108,397.00$27,099.25$1506.82$28,606.07$0.00 Totals$648,505.00$162,126.25$10,507.81$172,634.06$33,185.72

11. 11 Recent Events Eight school divisions have volunteered for reviews in FY08. Reviews will be conducted on a first come, first served basis as the budget allows. All reports are available on DOE’s website at http://www.pen.k12.va.us/VDOE/efficiencyreview.html