ALLEGHANY COUNTY PUBLIC SCHOOLS

PRELIMINARY OPERATING BUDGET ANALYSIS BASED UPON GOVERNOR'S STATE REVENUE FOR THE 2018-2020 BIENNIUM  

1/5/2018

SUMMARY OF MAJOR BUDGETARY IMPACTS AND CONSIDERATIONS

1) A new biennium with rebenchmarking of state funding for public education takes effect July 1, 2018.

2) The Local Composite Index (LCI) cap of .2423% (due to the Clifton Forge Reversion Agreement) expires on June 30, 2019 and the LCI increases to .2899%. Estimated impact - ($702,333).

3) The Boy's Home residents will no longer attend Alleghany County Public Schools. Estimated impact - $498,769.

4) The Alleghany Foundation funding for the Virginia Preschool Initiative ends on June 30, 2018. Estimated impact - ($50,000).

5) The Alleghany Foundation funding for the Nurse Program declines in FY2019 and totally ends for FY2020. Estimated impact - ($70,365) in FY2019 and ($140,730) in FY2020.

6) The bond payments for the AHS renovation conclude on June 30, 2018. Estimated impact - $410,000.

STATE REVENUES PER CALC TOOL

2017-2018

2018-2019

Variance To

2019-2020

Variance To

 

 

 

 

 

 

 

 

Budget

Governor

FY18 Bud

Governor

FY18 Bud

Notes

Average Daily Membership

2,080

1,997

(83)

1,947

(133)

Estimate from instruction office on 1/2/18, excludes Boy's Home students

 

Local Composite Index

0.2423

0.2423

0.0000

0.2899

0.0476

 

SOQ Programs:

 

 

 

 

 

 

Basic Aid

$7,294,869

$7,500,380

$205,511

$6,839,739

($455,130)

 

Sales Tax

$2,334,432

$2,432,597

$98,165

$2,486,049

$151,617

 

Textbooks

$173,015

$152,357

($20,658)

$139,210

($33,805)

 

Vocational Education

$277,379

$293,547

$16,168

$268,218

($9,161)

 

Gifted Education

$77,225

$75,656

($1,569)

$69,128

($8,097)

 

Special Education

$920,393

$907,876

($12,517)

$829,539

($90,854)

 

Prevention, Intervention & Remediation

$282,107

$305,652

$23,545

$279,278

($2,829)

 

VRS Retirement

$1,046,475

$1,016,821

($29,654)

$938,761

($107,714)

 

Social Security

$457,045

$461,504

$4,459

$425,830

($31,215)

 

Group Life

$31,520

$31,776

$256

$29,034

($2,486)

 

English as a Second Language

$4,966

$3,568

($1,398)

$3,344

($1,622)

 

Remedial Summer School

$42,516

$45,089

$2,573

$43,349

$833

 

Subtotal - SOQ Programs

$12,941,942

$13,226,823

$284,881

$12,351,479

($590,463)

 

Incentive Programs:

 

 

 

 

 

 

Compensation Supplement

$75,669

$0

($75,669)

$106,963

$31,294

Must give average 2% salary increase over biennium to receive

 

Academic Year Governor's School

$71,280

$94,474

$23,194

$93,955

$22,675

 

At Risk (Split Funded - See Lottery Section Below)

$172,351

$267,041

$94,690

$289,886

$117,535

 

Math/Reading Instructional Specialists

$0

$0

$0

$0

$0

 

Early Reading Specialists Initiative

$0

$0

$0

$0

$0

 

Technology - VPSA

$282,000

$282,000

$0

$232,000

($50,000)

Includes $52,000 for JRGS & JRTC - we are fiscal agent for this funding

 

Subtotal - Incentive Programs

$601,300

$643,515

$42,215

$722,804

$121,504

 

Categorical Programs:

 

 

 

 

 

 

Adult Education

$0

$0

$0

$0

$0

 

Virtual Virginia

$0

$0

$0

$0

$0

 

American Indian Treaty Commitment

$0

$0

$0

$0

$0

 

School Lunch

$11,229

$10,072

($1,157)

$10,072

($1,157)

 

Special Education - Homebound

$19,693

$11,500

($8,193)

$10,832

($8,861)

 

Special Education - State-Operated Programs

$0

$0

$0

$0

$0

 

Special Education - Jails

$0

$0

$0

$0

$0

 

Subtotal - Categorical Programs

$30,922

$21,572

($9,350)

$20,904

($10,018)

 

Lottery Funded Programs:

 

 

 

 

 

 

Regular Foster Care

$156,658

$0

($156,658)

$0

($156,658)

Will no longer receive with departure of Boy's Home students

 

At Risk (Split Funded - See Incentive Section Above)

$49,552

$38,957

($10,595)

$12,295

($37,257)

 

Virginia Preschool Initiative

$250,609

$241,327

($9,282)

$221,817

($28,792)

 

Early Reading Intervention

$49,481

$48,121

($1,360)

$45,098

($4,383)

 

Mentor Teacher Program

$1,685

$1,448

($237)

$1,448

($237)

 

K-3 Primary Class Size Reduction

$312,092

$267,797

($44,295)

$248,732

($63,360)

 

School Breakfast

$3,347

$6,076

$2,729

$5,440

$2,093

 

SOL Algebra Readiness

$32,593

$38,530

$5,937

$36,078

$3,485

 

Project Graduation

$4,506

$6,142

$1,636

$5,758

$1,252

 

Alternative Education

$0

$0

$0

$0

$0

 

ISAEP

$7,859

$7,859

$0

$7,859

$0

 

Special Education - Regional Tuition

$0

$0

$0

$0

$0

 

Career and Technical Education

$42,862

$34,705

($8,157)

$34,705

($8,157)

 

Supplemental Lottery Per Pupil Allocation

$432,018

$420,951

($11,067)

$388,026

($43,992)

 

Subtotal - Lottery Funded Programs

$1,343,262

$1,111,913

($231,349)

$1,007,256

($336,006)

 

 

 

 

 

 

 

STATE TOTAL

$14,917,426

$15,003,823

$86,397

$14,102,443

($814,983)

 

 

 

 

 

 

 

Pass-Through Revenue Adjustment

$379,327

$386,654

$7,327

$365,989

($13,338)

 

 

 

 

 

 

 

STATE TOTAL ADJUSTED

$14,538,099

$14,617,169

$79,070

$13,736,454

($801,645)

 

 

 

 

 

 

 

 

 

OTHER STATE REVENUES

2017-2018

2018-2019

Variance To

2019-2020

Variance To

 

 

 

 

 

 

 

 

Budget

Governor

FY18 Bud

Governor

FY18 Bud

Notes

National Board Certification Bonus

$15,000

$15,000

$0

$15,000

$0

 

Medicaid Reimbursement

$90,000

$90,000

$0

$90,000

$0

 

Subtotal - Other State Revenue

$105,000

$105,000

$0

$105,000

$0

 

 

 

 

 

 

 

OTHER STATE TOTAL ADJUSTED

$105,000

$105,000

$0

$105,000

$0

 

 

 

 

 

 

 

 

FEDERAL REVENUES

2017-2018

2018-2019

Variance To

2019-2020

Variance To

 

 

 

 

 

 

 

 

Budget

Governor

FY18 Bud

Governor

FY18 Bud

Notes

Title I-A - Improving Basic Programs

$516,454

$516,454

$0

$516,454

$0

Reimbursable funding (revenue = expenditures), updated estimate pending

 

Carl D. Perkins Vocational Education

$39,154

$39,154

$0

$39,154

$0

Reimbursable funding (revenue = expenditures), updated estimate pending

 

Title II-A - Improving Teacher Quality

$89,960

$89,960

$0

$89,960

$0

Reimbursable funding (revenue = expenditures), updated estimate pending

 

Title III-A Language Instruction

$454

$454

$0

$454

$0

Reimbursable funding (revenue = expenditures), updated estimate pending

 

E-Rate

$118,000

$116,525

($1,475)

$116,525

($1,475)

September estimate from E-rate Central

 

Forest Reserve

$127,633

$24,792

($102,841)

$24,792

($102,841)

Long-term full funding was not reauthorized by Congress

 

School Food Reimbursement

$567,450

$567,450

$0

$567,450

$0

 

Title VI - Flow Through

$537,830

$537,830

$0

$537,830

$0

Reimbursable funding (revenue = expenditures), updated estimate pending

 

Special Education Preschool

$19,772

$19,772

$0

$19,772

$0

Reimbursable funding (revenue = expenditures), updated estimate pending

 

Salem Regional Adult Education

$9,507

$9,507

$0

$9,507

$0

 

Subtotal - Federal Revenue

$2,026,214

$1,921,898

($104,316)

$1,921,898

($104,316)

 

 

 

 

 

 

 

Pass-Through Revenue Adjustment

$576,957

$576,957

$0

$576,957

$0

 

 

 

 

 

 

 

FEDERAL TOTAL ADJUSTED

$1,449,257

$1,344,941

($104,316)

$1,344,941

($104,316)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCAL REVENUES

2017-2018

2018-2019

Variance To

2019-2020

Variance To

 

 

 

 

 

 

 

 

Budget

Governor

FY18 Bud

Governor

FY18 Bud

Notes

Alleghany County Local Effort

$9,325,060

$9,325,060

$0

$9,325,060

$0

 

Miscellaneous/Other

$556,661

$543,230

($13,431)

$543,230

($13,431)

Miscellaneous refunds and receipts net of interest earnings increase

 

Subtotal - Local Revenue

$9,881,721

$9,868,290

($13,431)

$9,868,290

($13,431)

 

 

 

 

 

 

 

LOCAL TOTAL ADJUSTED

$9,881,721

$9,868,290

($13,431)

$9,868,290

($13,431)

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

2017-2018

2018-2019

Variance To

2019-2020

Variance To

 

 

 

 

 

 

 

 

Budget

Governor

FY18 Bud

Governor

FY18 Bud

Notes

ACPS TOTAL REVENUE ALL SOURCES

$26,930,361

$26,899,011

($31,350)

$25,997,631

($932,730)

 

ACPS TOTAL PASS-THROUGH REVENUE

$956,284

$963,611

$7,327

$942,946

($13,338)

 

ACPS TOTAL ADJUSTED FOR PASS-THROUGHS

$25,974,077

$25,935,400

($38,677)

$25,054,685

($919,392)

 

 

 

 

 

 

 

 

EXPENDITURE INCREASES

 

2018-2019

 

2019-2020

 

 

 

 

 

 

 

 

Estimate

 

Estimate

Notes

Increase electricity utility budget to reflect current trend

($20,000)

 

($20,000)

 

Increase service contract cost for IT department (net of additions and deletions)

($15,560)

 

($15,560)

 

Increase telecommunications contract cost for phone and internet upgrade

($20,000)

 

($20,000)

Rough estimate pending final RFP responses

 

Implementation of electronic records maintenance system

($6,282)

 

($6,282)

 

Increase in worker's compensation rate

($7,000)

 

($7,000)

 

CPI (2.2%) inflation adjustment for insurances (non-health)

($3,759)

 

($3,759)

 

CPI (2.2%) inflation adjustment for purchased services

($3,998)

 

($3,998)

 

CPI (2.2%) inflation adjustment for supplies

($10,642)

 

($10,642)

 

Additional cost (above budgeted payroll) if speech pathologists are contracted out

($35,073)

 

($35,073)

 

Increase allocation for copier lease pending new contract

($10,000)

 

($10,000)

 

Increase in VPI program required local match

($57,849)

 

($67,918)

 

Additional funding required to retain nurse grant program at current staffing

($64,623)

 

($134,788)

 

Step increase with 1% for positions not on a scale and .25% for those at top

($173,810)

 

($347,620)

Must provide 2% average for biennium or forfeit $106,963 state funding

 

Step increase for volunteer activity sponsors

($2,503)

 

($2,503)

 

Additional allocation to health insurance premiums

($100,000)

 

($100,000)

 

Increase technology hardware replacement budget

($15,560)

 

($15,560)

 

Implement signing bonus for hard-to-fill positions

$0

 

$0

 

Pay for teacher license renewal (currently paid by the employee)

($2,000)

 

($2,000)

 

Increase capital equipment replacement budget for the maintenance department

($4,000)

 

($4,000)

 

Increase TTRT contracts to 210 days

($10,526)

 

($10,526)

 

Increase stipends for speech pathologists

$0

 

$0

Captured in additional allocation for contracted speech services

 

Increase teacher assistants from 7.0 to 7.5 hours per day

$0

 

$0

 

Increase substitute teacher pay by 5%

($8,358)

 

($8,358)

 

Convert 10-month MVES custodian to 12-month position

$0

 

$0

 

Provide $500 incentive for resignation/retirement letters by February 1

$0

 

$0

 

Add one TTRT position (total of 5)

$0

 

$0

 

Increase behavior analyst position from 200 days to 210 days

$0

 

$0

 

Provide financial support for a DSLCC career coach (previously grant funded)

$0

 

$0

 

Add one additional assistant principal at CMS

$0

 

$0

 

Provision of supplement for administrative assistant-payroll position

$0

 

$0

 

Provide for administration program support

$0

 

$0

 

Create department chair stipends at CMS (4 total) of $500

$0

 

$0

 

Create team leader stipends at CMS (3 total) of $250

$0

 

$0

 

Add one teacher assistant position at SES

$0

 

$0

 

Add one director of student services position

$0

 

$0

 

Add one second grade teacher at CES

$0

 

$0

 

Make part-time librarian position full-time at CES

$0

 

$0

 

Add one attendance position at CMS

$0

 

$0

 

Increase athletic funding at AHS

$0

 

$0

 

Add two teacher assistant positions at CES

$0

 

$0

 

Create new office assistant position at CES

$0

 

$0

 

                         TOTAL EXPENDITURE IMPACTS

($571,543)

 

 

($825,587)

 

                                ACPS TOTAL PROJECTED BUDGET IMPACT                                                                           ($610,220)

 

 

($1,744,979)

 

 

 

 

 

 

 

 

POTENTIAL DEFICIT OFFSETS

 

2018-2019

 

2019-2020

 

 

 

 

 

 

 

 

Reduction

 

Reduction

Notes

VRS rate reduction effective in FY2019

$76,838

 

$76,838

 

AHS debt service expiration effective the end of FY2018

$410,000

 

$410,000

 

Replacement benefit

$174,030

 

$174,030

 

Reduction of teaching positions due to enrollment loss (2 in FY19, 2 in FY20)

$121,136

 

$242,272

 

Elimination of part-time ESL teaching position at AHS

$0

 

$31,367

 

Cap funding for dual enrollment, ECS, and JRGS at 2018 budget level

$0

 

$0

No financial impact

 

Cap funding for JRTC at 2018 budget level

$0

 

$0

No financial impact

 

Reduce technology hardware expenditures by $50,000 (the same VPSA reduction)

$0

 

$50,000

 

Eliminate the nurse coordinator and secretary positions (serve ACPS & CCPS)

$0

 

$87,477

Net of a $5,000 supplement for a school nurse to serve as coordinator

 

Eliminate school bus purchases

$0

 

$174,806

Year-end surplus, if, any will be used for bus purchases

 

Eliminate teacher assistant positions (2 in FY19, 2 in FY20)

$55,149

 

$110,297

 

County funding back to FY2015 level

$0

 

$250,000

 

Eliminate substitute custodian position at garage

$0

 

$27,595

 

Eliminate supplemental athletic funding to AHS and CMS

$0

 

$13,910

Excludes YMCA pool rental

 

Eliminate 1 assistant principal at AHS and add athletic director position

$0

 

$31,914

 

Eliminate overtime allocation for transportation dispatcher

$3,753

 

$3,753

Position is now classified as exempt

 

Eliminate funding for part-time school psychologist

$5,532

 

$5,532

 

                                                                                                TOTAL BUDGET DEFICIT OFFSETS                                                   $846,438

 

 

$1,689,791

 

                                                                                               SURPLUS/(DEFICIT)                                                                            $236,218

 

 

($55,188)

 

 

 

 

 

 

 

Notes

1)  Expenditure increase items in blue font color are increases deemed to be required and/or necessary.

2)  The projected surplus for FY2019 will be allocated to school bus purchases to soften the future impact of eliminating funding in the operating budget for school buses effective in FY2020.