School Board’sAdvertised Budget

Fiscal Year 2018Ryan Sawyers

Chairman, PWC School BoardPresented to Prince William Board of County Supervisors

March 28, 2017

OVERVIEW• Maintains current programs despite a substantial growth in enrollment -

2,420 additional students; an increase of 2.75% for a total of 90,636• Provides step increase costing 2.8%• Funds required state increases for the Virginia Retirement System (VRS)• Maintains class-size reduction efforts• Maintains Capital Improvement Program (CIP) including planned

construction and renewal of schools • Funds required technology improvements for Student Information

Management System (SMS) and equipment for bandwidth enhancement

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This Budget Focuses on InstructionInstruction, 78%

Facilities Management, 7.80%

Central Support, 7.40%

Transportation, 5.80%

General Reserves, 1.00%

3

Operating Fund & Debt Service Fund Advertised Fiscal Year 2018

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FY 2017 FY 2018 Change PercentCounty $528,409,617 $552,205,462 $23,795,845 4.5% State $485,666,947 $511,379,197 $25,712,250 5.3% Federal $37,530,438 $42,196,319 $4,665,881 12.4%Other $14,776,390 $15,030,620 $254,230 1.7%Beginning Balance $12,681,949 $23,013,491 $10,331,542 81.5%Total $1,079,065,341 $1,143,825,089 $64,759,748 6.0%

By Fund:Debt Service $88,351,647 $101,045,974 $12,694,327 14.4%Operating $990,713,694 $1,042,779,115 $52,065,421 5.3%

Funding Notes

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• County Revenue– Maintains FY 2017-2021 Five-Year Revenue Plan– Additional County Funding Includes

– Cooperative Class-Size Reduction Effort – Debt Service for 13th High School

• State – Additional Lottery Funds– Funding for Accelerated Virginia Retirement System (VRS) Increase– Does Not Provide Restoration of Major Cuts from “Great Recession”

• Federal – Changes in Grants/Programs• Beginning Balance

FY 2017 Cost per Pupil Comparison

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6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

FY 2017 Washington Area Boards of Education (WABE) comparative data

Cost per Pupil Change Over Time(Adjusted and Unadjusted for Inflation)

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$9,374

$10,378

$10,429$10,776

$10,383

$9,577

$9,852$10,163

$10,158$10,365

$10,724

$11,230

$8,939 $9,081

$9,775 $9,460

$9,810

$9,299

$8,315 $8,380

$8,520

$8,380$8,538$8,740

$9,037

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

Unadjusted Adjusted

County Funding

• Since 2007, PWC median income has risen faster than any county in Northern Virginia

• PWC taxes are approximately 30% less than our neighbors in Northern Virginia

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Growth in Student MembershipPast Five Years

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0.0% 15.0% 30.0% 45.0%

All Students

Special Education

English Lang Learners

Free/Reduced Lunch

8.9%

14.3%

3.3%

18.0%

PWCS Annual Percentage Change in Enrollment

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2.5%

3.4%

1.5%1.6%

3.1%

2.3%

3.0%

2.7%2.8%

3.9%

4.9%

4.2%

4.8% 4.7%

3.2%

3.6%

2.8%

1.4%

4.1%

3.2% 3.2%

2.3%

1.8%

1.4%1.2%

1.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Enrollment Trends

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86,209

87,253

88,920

90,636

92,282

93,790

95,320

0

0.2

0.4

0.6

0.8

1

1.2

84,000

86,000

88,000

90,000

92,000

94,000

96,000

2014 2015 2016 2017 2018 2019 2020

Actual Enrollment Projected Enrollment % Change

1.63%

1.63%

1.82%

1.93%

1.91%

1.21%

Impact of 1,000 Additional Students

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• Space – annual CIP costs of $36 million– 49% of an Elementary School - $14.7 million (approximately 20 trailers)– 23% of a Middle School - $12 million (approximately 14 trailers)– 12% of a High School - $15 million (approximately 20 trailers)

• Staffing– 43 ES teachers or 60 HS teachers (if all at one school)– School administrative - Principals, Assistant Principals– Support staff – custodial, clerical, security– Instructional supplies, materials, equipment, textbooks– Non-instructional supplies, equipment

• Transportation of 700 students– 10 buses - $1.1 million– 10 drivers– 0.6 mechanics/support staff– Operating costs: fuel, bus maintenance

• Central Support– Student Learning, Professional Learning, Special Education, Student Services, Accountability,

Human Resources, Financial Services, Facilities Services, Risk Management & Security, Information Technology, …

FY 2018 Advertised Budget

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FY 2017 Approved Budget (Operating & Debt Service) $1,079,065,341

Expenditure Changes for FY 2018Baseline Adjustments $8,454,542

Baseline Adjustments, Elimination of One-Time Costs $2,624,417Restore Holdback Allocation Reserve $2,159,206Inflation (1.0%) on Supplies, Materials, Equipment $0Adjustments in Grants & Self-Supporting Programs $3,670,919

Compensation $19,955,754Step Increase (2.8% cost increase) $20,362,205Reclassifications $125,542Slippage in Compensation -$10,741,615Virginia Retirement System (VRS) Required Rate Increase $9,522,325Health Insurance Rate Adjustment (1% Increase) $687,297

FY 2018 Advertised Budget

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Expenditure Changes for FY 2018

New Students & Schools $39,425,929Funding for New Students (2,420) 2.75% increase $26,384,397Remove Startup Costs – Covington-Harper ES -$438,000Add Fixed Allocation – Covington-Harper ES $754,095Thomas Jefferson HS – Facilities Renovation Cost Share (Year 4 of 4) $31,110Debt Service Net Adjustment $12,694,327

School Repairs & Renewals $500,000Technology Improvement Projects (TIP) Increase $500,000

FY 2018 Advertised Budget

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Expenditure Changes for FY 2018

New Resources $9,357,840Nursing Coordinator (0.5 FTE) $65,047Graduation Academy Summer Program $43,644Substance Abuse Prevention Specialist to Full Time (0.2 FTE) $20,911Additional School Nurses (4.0 FTE) $333,152Teacher – Autism Program (1.0 FTE) $103,016Student School Records Translation Services $202,912Achievement Gap Staffing for At-Risk Schools (4.0 FTE) $363,924Colgan HS Performing Arts Teacher (0.5 FTE) $44,679Osbourn Park HS Pre-Governor’s School Additional Program Funding $22,000Divisionwide Student Activities Director (0.6 FTE) $108,555Special Education Program Review (One Time) $150,000Student Information Management System (SMS) Replacement (One Time) $6,400,000Equipment to Support Increase in Network Bandwidth (One Time) $1,500,000

FY 2018 Advertised Budget

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Expenditure Changes for FY 2018

Reductions -$12,934,317Reduce Transfer to Divisionwide Aquatics Center -$100,000Reduce Additional Buses for Enrollment Growth by Eight -$870,512Energy Savings -$665,805Debt Finance Portion of Renewal CIP Projects -$11,298,000

FY 2018 Projected Expenditures $1,143,825,089FY 2018 Projected Revenues (Operating & Debt Service) $1,143,825,089Estimated FY 2018 Surplus/Deficit $0

Capital Improvements Program (CIP)Upcoming New Schools / Additions - Highlights• Fall 2018

- New Alternative (Non-Traditional) School- Pattie ES – 10-classroom addition - Lake Ridge MS – 13-classroom addition (13 Rooms)

• Fall 2019- PW Parkway Elementary- Antietam, Lake Ridge, and Springwoods Elementary Schools – 13-classroom

additions- Leesylvania Elementary – 4-classroom addition- Minnieville Elementary – 10-classroom addition (new)- Stonewall MS – 17-classroom addition- Western Bus Transportation Facility

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Capital Improvements ProgramChanges / Highlights• Site Acquisition Funds for 15th High School added (2019)• Elementary School – Occoquan/Woodbridge Area added (2023)• Elementary School – Stonewall Area added (2024)• 15th High School (TBD) added (2025)• Delayed beyond scope of 10 year CIP:

- Elementary School – Vint Hill Road (2024)- Elementary 6-Room Addition – Haymarket Area (2025)

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Capital Improvements ProgramFY18 Highlights

• Renewals (Phase 2)- Antietam Elementary- McAuliffe Elementary- Mullen Elementary- Westridge Elementary- Lake Ridge Middle School- Saunders Middle School

• Renewals (Phase 1)- River Oaks Elementary

• Roof Replacement- Beville Middle

• Partial Roof Replacements- Minnieville Elementary- Sudley Elementary- Lynn Middle- Woodbine Special

• HVAC upgrades/repairs, kitchen upgrades, asphalt improvements, Title IX, energy improvements

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CIP - Technology Improvements Plan• Upgrades / Replacements

- Network infrastructure including equipment for Bandwidth upgrade

- New Student Information System (end-of-system-life requirement)- VoIP (Voice-over-Internet-Protocol) school telephone upgrades- LAN/WLAN systems, to include wireless in trailers- Data center / school servers, back-up systems, storage, disaster

recovery- Computer replacement cycle- Existing computer systems maintenance / upgrades / replacements

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Portable Classrooms

245229

238 232 224 223204 202 199 200

215 211

Total Portable ClassroomsBy Fiscal Year

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Proposed Capital Improvements Program Five-Year Summary - Fiscal Years 2018-22

• Projected Growth in Students 8,496• New School Facilities 6

‒ New Elementary Schools 3‒ New Middle Schools 1‒ New High Schools 1‒ Replacements – New Alternative Education School 1

• School Additions (Classrooms) 93‒ Elementary School Additions (6 Schools) 63‒ Middle School Additions (2 Schools) 30

• Support Facilities 3‒ Western Transportation Center‒ New Dominion – Special Needs Transportation‒ Eastern Area Intake/ELL (Ann Ludwig)

• New School Facilities $354,303,000• Classroom Additions $ 96,364,000• Site Acquisition $ 29,000,000• Renewals $255,771,000

• Current Student Capacity 87,032• Proposed Capacity to be Constructed 8,431• Existing Portable Classrooms 211

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School Land Needs - Planned

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Year to Open

Year to Acquire School Property Status

Estimated Funds

Required Funding Source

2019 2017 PW Parkway ES Purchase Price Negotiated with Owner

$7,900,000 BOCS

2021 2018 ES (Cherry Hill Area) Site Needed $5,000,000 2022 2019 ES (Yorkshire Area) Site Needed $5,000,000

2017-18 14th High School (2,557 capacity) Site Needed $14,000,000 Bond

2019 ES (Occoquan/Woodbridge Area) Site Needed $6,000,000 2020 ES (Stonewall Area) Site Needed $6,000,000

Proffered-Avendale $0 Otherwise Site Needed $7,200,000

2025 2019-20 15th High School (2,557 capacity) Site Needed $15,000,000 Bond

2026 2022 MS (TBD) Site Needed $7,500,000

2023

20242019 MS West (Linton Hall Area)

Five-Year Plan FY 2018 – 2022

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FY 2018 FY 2019 FY 2020 FY 2021 FY 2022ExpendituresCurrent Programs 1,080.5 1,092.6 1,119.6 1,145.3 1,168.8New Students 23.4 36.5 49.9 64.7 85.1Repairs & Renewals 30.2 43.8 44.8 66.2 69.3New Schools 9.7 10.2 6.3 6.1 8.7Total Expenditures 1,143.8 1,183.1 1,220.6 1,282.3 1,331.9RevenuesState/Federal/Other 591.6 610.7 625.9 665.0 637.9County Transfer 552.2 572.4 594.7 617.3 694.0Total Revenue 1,143.8 1,183.1 1,220.6 1,282.3 1,331.9Surplus/(Deficit) 0.0 0.0 0.0 0.0 0.0

The balanced Five-Year Plan is an indication of the School Board’s commitment to fiscal responsibility only. The annual budgets continue to have significant additional needs.

Annual Debt ServiceDebt Payment on School Bonds – “The Mortgage”

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

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Debt as a Percentage of Operations

6.30%

6.80%

7.30%

7.80%

8.30%

8.80%

9.30%

9.80%

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Staffing Study -Central Office Understaffed by 82 Positions

• The School Board engaged the firm of Alvarez & Marsal to conduct a study of the relative staffing levels of the School Division central office compared to school divisions in the metro area to address perceptions of “overstaffing”

• Based upon an analysis of staff per 10,000 students, the central office is actually understaffed by 82 positions

• Eight offices have lower, or significantly lower, staffing levels including Student Learning, Human Resources, Financial Services, Special Education, Student Services, English Learners, Information Technology, and Benefits

• Five offices have comparable staffing levels, including School Food and Nutrition Services, Alternative Education, Communications, Professional Learning, and Accountability

• Three offices – Facilities Services, Risk Management, and Transportation, had slightly higher levels of staffing, but analysis found them to have additional duties and responsibilities that were not comparable in the peer districts

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Segal Waters - Salary Study• Compensation Study Results:

- Teacher salaries are below market at entry and middle of the ranges- Staff salaries are generally competitive, but are below market at entry for many jobs- Job descriptions are out of date and do not reflect the roles, responsibilities, and skill

sets required to provide a World Class Education• Recommendations:

- Improve teacher salary lanes to better reflect market, to better recruit, and to retain high-quality educators

- Enhance tuition reimbursement program to develop the next generation of teachers - Implement incentives to attract and reward employees with special skills or hard-to-

fill roles- Modernize the classification structure and job descriptions - Ensure internal equity among positions based on comparable worth and career path

opportunities

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Budget and Appropriation• The School Board requests a budget and appropriation by “Lump

Sum” as in prior years in the amount of $1,676,695,551• School Division will continue to budget and operate at the Fund level

in cooperation with the County. This is a more detailed level of accounting and control than is required by state law, but which facilitates the operation and management of the budget and accounting systems for both entities

• The BOCS has not indicated a change in process, nor has the BOCS requested the potential impact of a change in budget and appropriation

methodology on the School Division

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Budget by Fund TotalsOperating Fund $1,042,779,115Debt Service Fund $101,045,974Construction Fund $316,772,454Food Services Fund $51,285,609Distribution Center Fund $5,000,000Facilities Use Fund $1,402,130Self-Insurance Fund $5,367,639Health Insurance Fund $99,157,018Regional School Fund $51,308,693Governor's School @ Innovation Park $968,357Aquatics Center $978,562School Age Child Care Program $630,000Total All Funds $1,676,695,551

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Financial Achievements

• Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for 18 years Certificate of Achievement for Excellence in Financial

Reporting for the past 14 years

• Association of School Business Officials (ASBO) Meritorious Budget Award for past 21 years Certificate of Excellence in Financial Reporting for the

past 15 years

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Celebrating Success

• All 11 high schools are in the Washington Post’s top 10 percent of high schools nationwide

• Osbourn Park, Battlefield, Patriot, and Hylton High Schools recognized among the best of 21,000 nationwide, earning Silver Medals from U.S. News and World Report

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Celebrating Success• The 2015 on-time graduation rate for PWCS grads is

91.8%, compared to 81% nationwide• The percentage of PWCS students earning Advanced

Placement, International Baccalaureate, or Cambridge qualifying scores far exceeds the national average

• Parkside MS has the nation’s first Cambridge International professional development site

…the School Division is “consistently doing more with less in the most stellar and successful fashion.” Loree Williams, School Board

Member, Woodbridge District

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Celebrating Success

• Since 2005-06, students taking the SAT rose by 38% and ACT test participation by 59%

• In 2015-16, 28% of high school students (grades 9-12) were enrolled in at least one advanced course (AP, IB, Cambridge)

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Celebrating SuccessEnglish Learners

• 26.2% of this years’ PWCS students are English learners• The on-time graduation rate of PWCS English learners exceeds

the state by nearly 10% and surpassed all other Northern Virginia school divisions

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Celebrating Success• 26,145 – College credit hours earned by PWCS students in

2016 by scoring three or higher on AP exams• $38 million – Scholarship money earned by the PWCS class of

2016, up $7 million over 2015• Over five years, students earned more than $179.3 million in

scholarships

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In Summary

37

• The School Board develops the budget within the funding amounts provided by the County and State

• This budget attempts to meet needs for programs and services essential to a quality education

• We are not meeting the need to reduce class sizes, alleviate overcrowding, provide enough additional permanent building space, provide competitive salaries/benefits, or restore previous cuts

• Impact on student performance will always be in hindsight

“We are giving our students a great start. What we invest in their journey may help determine how far many can go.”

Steven L. WaltsSuperintendent of Schools

School Board’sAdvertised Budget

Fiscal Year 2018Ryan Sawyers

Chairman, PWC School BoardPresented to Prince William Board of County Supervisors

March 28, 2017

School Board FY 2018 Supplemental Budget

Ryan SawyersChairman, PWC School Board

Presented to Prince William Board of County SupervisorsMarch 28, 2017

Supplemental Budget Request

• The School Board directed the Superintendent to develop and present supplemental budget needs in addition to the regular Proposed Budget, which is based upon the Revenue Sharing Agreement. This request focuses on specific FY 2018 needs, as well as providing a context for the longer term. The needs are divided in to four basic areas:

I. Class-Size Reduction; Expedited Five-Year PlanII. Elimination of TrailersIII. Closing the Achievement GapIV. Compliance/Additional Budget Priorities

40

Class-Size ReductionExpedited Five-Year Plan

Numerical goals and recommendations for appropriate class-sizes at the different grade levels… and special education caseloads…

• Not a “pie-in-the-sky” wish list• Would restore class size and teacher caseloads to 2007 levels• Would not restore many school and central office reductions• Would not restore pay scales and benefits

41

Class-Size Increases After 2007Numerical goals and recommendations for appropriate class-sizes at the different grade levels…

• FY 2007 last “regular” budget before the great recession• FY 2008 Prince William County had significant revenue reductions• PWCS forced to cut administration, support staff, instructional

support, and the Capital Improvements Program (CIP)• Class sizes and teacher caseloads were increased as one of many

reductions to overcome budget shortfalls

42

I. Expedited Five-Year PlanRestoration of Funding to FY 2007 Levels

43

Restoration: FY 2018 Total Need Total FTE

Economically Disadvantaged/At-Risk (K-5) $1,011,754 $9,105,784 101.21 Economically Disadvantaged/At-Risk (6-12) $667,498 $2,669,992 29.72 Specific Learning Disability (K-12) $531,443 $2,125,770 23.54 Emotional Disabilities Program $267,453 $267,453 2.97 English Language Learners $755,721 $755,721 8.39 Regular Elementary School (Grade 4) $203,020 $812,081 8.99 Regular Elementary School (Grade 5) $203,020 $812,081 8.99

Continued on next slide

I. Expedited Five-Year Plan (continued)Restoration of Funding to FY 2007 Levels

44

Restoration: FY 2018 Total Need Total FTERegular Middle School (Grades 6-8) $878,049 $7,902,443 91.82 Speech & Language Impaired $23,004 $23,004 0.23 Visually Handicapped $16,948 $16,948 0.19 Hearing Impaired $117,040 $117,040 1.30 Regular High School (Grades 9-12) $1,024,727 $9,222,539 107.16 Diagnosticians $172,134 $172,134 2.00 Occupational Therapy $261,944 $261,944 2.91

Continued on next slide

I. Expedited Five-Year Plan (continued)Restoration of Funding to FY 2007 Levels

45

Restoration: FY 2018 Total Need Total FTEPhysical Therapy $68,747 $68,747 0.76 Adapted Physical Education $244,308 $244,308 2.71 Gifted Education (Grades K-5) $0 $957,384 10.63 Gifted Education (Grades 6-8) $0 $754,856 8.37 Gifted Education (Grades 9-12) $0 $1,199,384 13.33

TOTAL: $6,446,810 $37,489,613 425.22

I. Expedited Five-Year Plan; SpaceRestoration of Funding to FY 2007 Levels

46

Space Impact of Class Size Reductions FY 2018 Number Total NeedSite Acquisition (ES) 1 $8,000,000Site Acquisition (MS) 1 $8,000,000Site Acquisition (HS) 1 $16,000,000New Elementary Schools 2 $60,000,000New Middle Schools 1 $59,904,000New High Schools 1 $125,486,000TOTAL: $0 $277,390,000

See FY 2018 Proposed

CIP for E

xisting Plans

II. Elimination of Portable Classrooms

47

FY 2018 Number TotalAdditional Site Acquisition (2 ES, 1 HS) 3 $23,200,000Elementary Schools 2 $73,680,000Elementary School Addition 1 $8,000,000Middle Schools (Maintain CIP) 0 $0Middle School Additions 3 $43,800,000High School (HS) 1 $140,263,000High School Addition (removed) 0 $0TOTAL: $0 $288,943,000

See FY 2018 Proposed

CIP for E

xisting Plans

III. Closing The Achievement Gap

48

Description FTE Support FY 2018 TotalDirector of School Improvement 1.0 $7,500 $158,782Instructional Coaches (Additional) 13.0 $65,000 $1,293,643Teachers – Specific Learning Disability 36.5 $0 $3,038,250TOTAL: 50.5 $72,500 $4,490,675

Note: Items included in this category are in addition to those in Category I for the Expedited Five-Year Plan. That Plan includes significant funding in areas that support the closing of the achievement gap.

IV. Needs/Additional Budget Priorities

49

Description FTE Support FY 2018 TotalIncrease Network Bandwidth (Service Fees) 0.0 $720,000 $720,000Applicant Tracking, Evaluation, Records System 1.0 $416,315 $551,210Records Retention System 0.0 $433,500 $433,500Storm Sewer Environmental Standards Reqts 1.0 $50,000 $143,869Website Accessibility Support 1.0 $25,000 $117,524School Board Office & Support Staff 8.0 TBD $800,000*TOTAL: 11.0 $1,644,815 $2,766,103

* This cost estimate has been requested by multiple School Board members and is being prepared at their request for the School Board's consideration.

Note: The budget development process for the FY 2018 Proposed Budget identified 121 items and $267.8 million in Critical Unmet Needs

School Board FY 2018Supplemental Budget

Ryan SawyersChairman, PWC School Board

Presented to Prince William Board of County SupervisorsMarch 28, 2017