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Arlington Public Schools

FY 2015 Proposed Budget Development

Dr. Patrick K. MurphyDecember 11, 2013

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Arlington County funds almost 80% of APS’ budget

Overall revenue picture for APS reflects the county’s revenue picture

APS Revenue Outlook

State10.9%

County Transfer 79.5%

Local Fees3.4%

Federal2.3%

Carry Forward3.9%

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Federal Funding◦ Steady decrease over past 4 years

Almost $4.4 million or 26% since FY 2011

State Aid◦ New biennial budget◦ VRS contribution rate increase◦ Additional state mandates

FY 2015 Revenue Pressures

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Employee Compensation◦ VRS contribution rate will increase by nearly 25% or

$7.5 million

◦ An additional $1.0 million for increased health care costs

$11.2 million to fund enrollment growth

Before funding compensation or additional instructional time, APS must first cover these additional costs of $19.7 million.

APS Expenditure Assumptions

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APS – Enrollment Growth

P-4 P-3 P-2 P-1 K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th E-1 E-2 E-3 E-40

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2261 2221 22742174 2139 2182

1935 19621830

17051598 1592

1486 1501 1487 1451 1408 13791436 1418

1308

Class Size by Grade (2013-14)

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APS – Enrollment Growth Projections

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

0

5000

10000

15000

20000

25000

30000

35000

Total K-12 and PreK-12 Enrollment (September 30th), 1961-2023

K-12 EnrollmentPreK-12 Enrollment

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Growing Enrollment◦ 26% increase since FY 2008◦ 3.6% increase projected for FY15

837 additional students

Capacity Issues◦ Elementary at 105.6% and climbing◦ Overall projected at 102.8% for FY15◦ As new building space comes on board, additional

operational costs are incurred

APS – Impact of Enrollment Growth

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Cost of Enrollment◦ School staffing◦ Instructional materials and technology◦ Relocatables◦ Average annual cost past 4 years = $9.5 million◦ Projected cost for FY15 = $11.2 million

APS – Expenditures Required for Additional Students

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Increased instructional time◦ Eliminate early release Wednesdays

VRS contribution rate increase◦ Almost 24% increase in rate requiring additional

$7.5 million

Remain competitive and able to attract and retain high quality staff

APS – Expenditure Pressures

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Compensation◦ Examine options to reduce the cost of benefits

Program adjustments and/or changes in service delivery models

Consider selected increases in class size

Options to close the FY 2015 Budget Gap

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Set aside funding from FY 2013 closeout to carry forward to FY 2015 to fund one-time costs

Request additional funding

Options to close the FY 2015 Budget Gap, continued

APS – Next Steps February 27

Superintendent’s Proposed FY 2015 Budget

March 20 Public Hearing on the Superintendent’s Proposed FY 2015 Budget

April 3 School Board’s Proposed FY 2015 Budget

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April 24 Public Hearing on the School Board’s Proposed FY 2015 Budget

May 8 School Board’s Adopted FY 2015 Budget

For a complete calendar, go to: www.apsva.us/budget

APS – Next Steps

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Arlington Public Schools

FY 2015 Proposed Budget Development

Dr. Patrick K. MurphyDecember 11, 2013