––-– School Board Adopted FiscalINTRODUCTORY Year 2018 Budget Adopted - May 1, 2017 SECTION Published - June 29, 2017 SCPS FY 2018 School Board Adopted Budget 1 Fredericksburg, Virginia 22407 www.spotsylvania.k12.va.us Executive Summary Table of Contents Organizational Acknowledgments ................................................................................................................................... 4 Transmittal Letter .................................................................................................................................... 5 School Board ........................................................................................................................................... 7 Superintendent’s Cabinet Team ............................................................................................................. 8 Budget Awards ........................................................................................................................................ 9 FY 2018 School Board Adopted Budget Layout ................................................................................... 11 Strategic Management Components .................................................................................................... 12 Management Structure.......................................................................................................................... 15 Organizational Chart ............................................................................................................................. 15 Budget Process and Timeline ............................................................................................................... 16 Budget Calendar ................................................................................................................................... 18 Financial Policies and Practices ........................................................................................................... 19 Financial Budget Overview ................................................................................................................................... 22 Revenue Highlights – All Funds ............................................................................................................ 26 Major Budget Changes in Expenditures for All Funds .......................................................................... 28 Expenditure Highlights for All Funds ..................................................................................................... 30 FY 2018 Expenditure Summary Reports by Generic Objects for All Funds ......................................... 31 Expenditure Highlights by Generic Objects .......................................................................................... 32 Retiree Health Insurance ...................................................................................................................... 34 FY 2018 Expenditure Summary Report by Object for All Funds .......................................................... 36 Allocation of Positions ........................................................................................................................... 40 Fund Statement Summary – All Funds ................................................................................................. 43 Combined Fund Statements ................................................................................................................. 44 Fund 1 – Commonwealth Governor’s School (CGS) .................................................................... 45 Fund 2 – Rappahannock Regional Juvenile Detention Center (RRJDC) ..................................... 48 Fund 3 – Food Service (FS) ......................................................................................................... 50 Fund 4 – Regional Adult Education .............................................................................................. 52 Fund 7 – Fleet Service .................................................................................................................. 54 Fund 5 – Operating Fund .............................................................................................................. 56 Debt Service Costs ....................................................................................................................... 89 Supplemental Student Support Services ..................................................................................................................... 91 Student Enrollment Trends and Forecast ............................................................................................. 96 Student Demographics.......................................................................................................................... 98 Three Year Budget Forecast ................................................................................................................. 99 Rates for Substitutes/Hourly Employees ............................................................................................ 101 Stipends .............................................................................................................................................. 102 Athletic Fee ......................................................................................................................................... 105 Local Tax Base and Trend Information ............................................................................................... 106 SCPS FY 2018 School Board Adopted Budget 2 Executive Summary ORGANIZATIONAL SECTION SCPS FY 2018 School Board Adopted Budget 3 Executive Summary Organizational Acknowledgements The Finance Department would like to thank Spotsylvania County Public Schools (SCPS) staff members for their assistance throughout the year in developing, formulating and executing the annual operating and capital budgets. The success of our budget processes are a culmination of various budgeting, tracking, analysis and reporting requirements that are made more effective by the collaboration that exist between schools and departments. It is through these joint efforts that SCPS is able to maximize our resources and provide opportunities that ultimately impact our schools, classrooms and operations, affecting each one of our students. Budget Team LaShahn Gaines, CPA, CPM, MS, VSBO Chief Financial Officer Marcia Stevens, MBA, CPA Director of Budget and Payroll Philip Trayer, MS Director of Finance Bridgette Smith-Hurd, MBA, VSBO Senior Financial Analyst Leah Underwood Program Analyst Doreen Flint Accounting Technician Melissa Webster Administrative Assistant SCPS FY 2018 School Board Adopted Budget 4 EXECUTIVE SUMMARY Organizational February 28, 2017 Mr. David Ross, Chair Spotsylvania County Board of Supervisors P.O. Box 99 Spotsylvania, Virginia 22553 Dear Mr. Ross: The FY 2018 School Board’s Adopted Budget reflects a needs-based budget that preserves current investments for all students, protects employees, and partially restores budgetary items previously eliminated during the most recent recession. The major budget highlights of the FY 2018 School Board Budget include: • Managing mandatory cost increases in the VRS rate (11%), and medical and vision health insurance (5.3% employer and 5% employee); • Modernization of health plan offerings. Employee’s choice of medical only, dental only, or both; • Dental coverage premium split 75%/25% between employer and employee, respectively; • Key Care 200 employee premiums have been adjusted to bring plan in balance with the same employer contribution for all plans; • Maintaining competitiveness in attracting and retaining highly skilled, dedicated and essential employees, by increasing compensation through 2% Cost of Living Adjustment (COLA); • Increase Substitute rates by $5 per day; • Reinstatement of hourly cafeteria aides at the elementary level, as a Pilot Program (funded from Food Service Funds); • Pilot Academic and Athletic Activity Bus Program for Post Oak Middle School and Spotsylvania High School communities; • Restore Academic and Athletic Stipends by 5%; • REACH SPED program facility renovation at Massaponax High School (funded by CIP funds); • Lower Athletic Fee from $75 to $50; • Increases in debt service in accordance with the projects in the 2018-2022 CIP; • 5% Increase for parts markup for the Joint Fleet Service Program; • Across the board non-compensation reductions; • Due to budget revenue shortfall, reduced positions to balance the budget; and • Due to the budget revenue shortfall, use of Health Insurance reserve funds to balance the budget. The first investment category includes mandatory and compliance increases. The significant increase of 11.3% in the Virginia Retirement System’s professional rate for the division’s teachers along with the increase in health insurance costs are major budget drivers for the coming year. The School Board realized savings of $850,000 by renegotiating prescription drug costs and increasing the stop-loss self-funded health insurance deductible for a projected savings of $450,000. In relation to the increasing health insurance costs, the School Board also decided to share the dental premium with the employee at a rate of 25% employee and 75% employer for an estimated savings of $400,000. The employee medical premium will increase by 5% as well. The Affordable Care Act (ACA) requires the division to provide affordable health care or