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Combined Budget Doc Fi 1 RICHMOND CITY PUBLIC SCHOOLS FY2015-2016 BUDGET SCHOOL BOARD MEMBERS (Left to Right) Kimberly Gray - 2nd District, Derik Jones - 8th District, Jeffrey Bourne - 3rd District, Donald Coleman, Chairman - 7th District, Shonda Harris-Muhammed - 6th District, Glen Sturtevant - 1st District, Tichi Pinkney Eppes - 9th District, Kristen Larson, Vice-Chair - 4th District & Mamie Taylor - 5th District The School Board is Richmond's local governing educational body and is composed of one Board representative from each of the nine districts. Board members are elected by the citizens to a four-year term of office. The Chairman, Vice Chairman and other officers are elected by the other members of the School Board. Ms. Angela Lewis, Clerk of the Board 301 N. Ninth Street Richmond, Virginia 23219 www.richmond.k12.va.us 2 RICHMOND CITY PUBLIC SCHOOLS FY2015-2016 BUDGET LEADERSHIP TEAM (2014-2015 FISCAL YEAR) DR. DANA T. BEDDEN SUPERINTENDENT ANDREA KANE ASSOCIATE SUPERINTENDENT OF ACADEMIC SERVICES RALPH L. WESTBAY ASSISTANT SUPERINTENDENT OF FINANCIAL SERVICES THOMAS KRANZ ASSISTANT SUPERINTENDENT OF SUPPORT SERVICES CANDICE HUNTER CHIEF OF STAFF DR. MICHELLE BOYD EXECUTIVE DIRECTOR OF EXCEPTIONAL EDUCATION & STUDENT SERVICES D. TIMOTHY BILLUPS EXECUTIVE DIRECTOR OF HUMAN RESOURCES JANICE GARLAND EXECUTIVE DIRECTOR OF SCHOOL IMPROVEMENT DR. ANTHONY LEONARD EXECUTIVE DIRECTOR OF ELEMENTARY SCHOOLS ABE JEFFERS EXECUTIVE DIRECTOR OF SECONDARY SCHOOLS 3 RICHMOND CITY PUBLIC SCHOOLS FY2015‐2016 BUDGET TABLE OF CONTENTS Page Cover 1 School Board Members and Leadership Team 2 Table of Contents 4 INTRODUCTION 6 School Board Chair's Letter 7 Executive Summary 9 Richmond City School Demographics 11 ORGANIZATION 14 Fund Structure/Relationship 15 Budget Process 16 FINANCIAL 17 Budget Highlights ‐ Revenue 18 General Fund Revenue Summary 20 General Fund Revenue Detail 21 Revenue Trends 23 Expenditure Summary 24 Expenditure Changes ‐ FY15 to FY16 Reconciliation 25 Expenditure Trends 27 Expenditures by Object Group 28 Expenditures by Object Category 29 Expenditures by Object Class 30 Expenditures ‐ Summary by State Function Code 31 Expenditures ‐ Summary by Sub‐Function Code 32 Expenditures ‐ Function and Object Class Detail 33 Explanation of Budget Areas 51 Budget Area Summary by Organization 52 Elementary Education ‐ Area 01 56 Secondary Education ‐ Area 02 73 Academic Services ‐ Area 03 89 Exceptional Education / Student Services ‐ Area 04 102 School Board ‐ Area 05 110 Superintendent ‐ Area 06 114 Communications ‐ Area 07 117 Human Resources ‐ Area 08 121 Financial Services ‐ Area 09 124 Support Services ‐ Area 10 129 Information, Communication& Technology ‐ Area 11 136 Charter Schools ‐ Area 12 139 System Wide Expenditures ‐ Area 13 142 General Fund Transfers to Other Funds 145 4 RICHMOND CITY PUBLIC SCHOOLS FY2015‐2016 BUDGET TABLE OF CONTENTS Page NON‐GENERAL FUNDS 146 Non‐General Funds introduction 147 All Funds ‐ Revenue Summary 148 All Funds ‐ Expenditures by Object Group 149 All Funds ‐ Expenditures by State Function 150 Non‐ General Fund ‐ Description by Fund 151 All Funds ‐ Revenue & Expenditure Recap by Fund Including Agency Funds 168 All Funds ‐ Revenue & Expenditure Recap by Fund Excluding Agency & CIP Funds 170 Non‐General Fund Revenue Summary by Fund and Source 172 Non‐General Fund Expenditures by Fund and Object Group 174 CAPITAL IMPROVEMENT PROGRAM 193 CIP Introduction 194 City's Adopted School Maintenance Award 195 City's Adopted High School Athletic Facilities Award 196 AGENCY FUNDS 197 Revenue Summary by Fund 198 Expenditure Summary ‐ Fund Object Group 199 INFORMATION 201 School Directory 202 Budget Development Calendar 204 Staffing Standards Comparison & K‐3 Class Size Considerations 205 School Allocations 209 Average Per Pupil Expenditures for Operations 210 Richmond Public Schools Budget Policy 211 Code of Virginia 213 City of Richmond Ordinance 215 Virginia Department of Education Revenue Entitlements and Budget Variables 219 Richmond Public School Tuition & Fee Schedule 222 Salary Schedules 223 Revenue Descriptions 255 Expenditure Descriptions 257 Glossary of Terms 259 5 Introduction 6 SCHOOL BOARD OF THE CITY OF RICHMOND 301 NORTH NINTH STREET RICHMOND, VA 23219-1927 DONALD L. COLEMAN telephone: (804) 780-7716 fax: (804) 780-8133 CHAIR DISTRICT SEVEN [email protected] June 1, 2015(804) 780-7716 Honorable Michelle Mosby, President City Council 901 East Broad Street Richmond, Virginia 23219 Dear President Mosby, I extend our appreciation, on behalf of the School Board, for the creative and considerable effort the City Council members and staff invested in finding a way to appropriate a significant $9 million dollars toward our FY16 school board budget. The school board and school administration have continued to examine the budget and have implemented cost reduction and revenue enhancing strategies since the submission of our request to you on March 3, 2015. The school board held a work session on 5/26/2015 to consider the options for budget adoption within the final appropriated funding level. Additional information gleaned since the March budget request was submitted has been incorporated which resulted in net additional revenues of $382,301. Enrollment for state revenue calculations was increased by 190 students after receiving the final March 31 average daily membership report which added $872,223 to state SOQ funding. We, also, reduced state revenue of $489,922 for the early reading/math initiative which is no longer an option for FY16. Retirements and a school closing made existing resources available for reallocation to cover a portion of the needs originally submitted. $816,000 was garnered from the closing of Elkhardt into Thompson middle school. Another $390,000 was reallocated from school board and internal audit accounts for a total reallocation of existing resources of $1.2 million. The Board deliberated extensively on finding a way to include the Academic Improvement Plan (AIP) to avoid losing a year of progress in moving the school division forward. That led to an extended discussion of considering the items in green which represented the mandates and maintaining existing service levels. The current FY15 budget had a baseline adjustment of $3.4 million for staff turnover from FY14 to FY15. Advancing the AIP with the professional development days to the funded level means pushing #5 Maintain Current Service Levels, one third of #12 Exceptional Education, and #15 Technology items to the unfunded level. The School Board decided that savings in FY16 can reasonably be expected to be of the same order as FY15, and that additional efficiency or program changes can be found to cover the unfunded portion of $4,488,377. Concern was expressed that reordering stated priorities might engender a lack of trust by Council in the numbers presented by the School Board in the future. The Board asks that the Council understand that needs identified in green as mandates, compliance, or revenue loss presented to the Council by the administration represent a true structural deficit of $4.5 million as presented in the proposed budget which has not changed. What has changed is that we now examine those same priorities through the lens of a final appropriation from Council of $9 million. We believe that the Council concurs with the importance of accelerating implementation of the Academic Improvement Plan. Our intent was to be as creative as City Council in continuing to find ways to make it work within the resources allocated. 7 Yes, we still need to cover the mandates, maintain compliance, and current service levels. Our preference would have been an increased appropriation to cover at least the $4. 5 million more for the Academic Improvement Plan, but fully appreciate the balancing act that City Council performs annually in determining how to address the needs of the entire city. To that end, the school administration has been directed to continue examining all options for reducing expenditures to mitigate the extent of these unfunded items, so that we can begin the critical work encompassed in the AIP. The school administration concurred, albeit cautiously, with the importance of not delaying the implementation of the AIP and expressed a belief that some additional efficiencies can be accomplished and implemented with additional time. Examples of areas being examined are Transportation where overruns are a big share of the maintaining current service levels. Plans are in progress to provide the Board with alternate approaches that could reduce costs there. Secondly, the task of examining secondary school staffing allocations is still in progress which has not been done for several years. Additional savings could be generated there. All areas will continue to be examined for opportunities to reduce cost or increase resources available through existing grants or new sources. We factored in approximately $900,000 in additional fund balance from FY14 that we could request for one time expenditures. The balance we incorporated into the FY16 budget of $1.5 million was a conservative number. There is approximately $1 million in one-time funding items in the adopted budget that those funds could cover should it prove necessary for us to request as we proceed through the fiscal year. We have asked for a monthly monitoring and report to the board on the status of these efforts as we begin the FY2015-16 school year. We pledge to continue to exercise good fiscal stewardship in service to our youth. We greatly appreciated our joint
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