Agenda

• Summary of potential gap • Review expenditure increases in the FY 2018 Proposed

Budget• Gather the School Board’s input on addressing the potential

gap

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Summary of Potential Gap

• Based on the County’s November forecast and the Governor’s budget proposal, FCPS would face a gap of $65.0 million

• If the VRS rate acceleration was eliminated, the projected gap would decrease to $43.5 million

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Scenario A Scenario B

FCPS' Advertised Transfer Request 108.2$                108.2$               2% Transfer in County Forecast 39.9                     39.9                    

Potential Gap After Various Scenarios for County Funding 68.3$                 68.3$                Potential Revenue from Governor's Proposed Budget 3.3$                    3.3$                   

VRS Acceleration Eliminated ‐                       21.5                    

Gap After Potential Changes in Both County and State Funding 65.0$                  43.5$                 

Planning for Any Potential Gaps Between Revenue Requestedand Final Revenue Received from the State and County

FY 2018 Budget ($ in millions)

Planning for Addressing the Potential Gap

• The projected gap could be addressed through:• Increase in revenue from the County and/or state• Increases in fees charged by FCPS• Decreases in expenditures – budget reductions and/or

eliminating strategic plan investments included in the FY 2018 Proposed Budget

• Input and engagement on options for addressing the gap• Budget Task Force input• Ongoing discussions with the Leadership Team• Upcoming public hearings • Continued School Board and County Board of Supervisors

joint work sessions4

Review: FY 2018 Proposed Budget Overview

• $2.8 billion School Operating Fund • 4.9% increase over FY 2017 Approved Budget

• Strategic Plan Priorities• Employee Compensation• Classroom Resources

• Required Cost Drivers • Enrollment• Retirement• Health

5Instruction totals 86% of FCPS’ Budget

Review: Employee Compensation Increases

($ in millions)

• Step Increases for All Eligible Employees $44.0• Teacher Salary Scale Implementation $33.2

• Market scale adjustment built in• Will require four years to fully implement

• Nonteacher Salary Scales Implementation $14.9• Market scale adjustment included• Scales are for

• Classroom Instructional Support• School-Based Administrators• Unified Scales

• Includes Psychologists, Social Workers, Clerical, Custodial, Technicians, etc.

6

Review: Classroom and Operational Resources

($ in millions)

• Support for Preschool $0.5• Needed to maintain current classrooms

• Textbooks – New Investment* $2.7• Assessment Tool (Universal Screener) $2.4• Operational Resources $3.7

• Turf Field Replacement $1.0• For student safety

• School Construction Support $2.0• Based on CIP approved projects

• Contractual Increases $0.7

*Total cost of the social studies textbook adoption is $7.8 million.The remaining $5.1 million is funded through the textbook reserve.

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Review: Required Cost Drivers

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($ in millions)

• Enrollment $10.0• Virginia Retirement System $25.5• ERFC (local retirement)

• Rate Increase $11.4• Benefit Modifications (4.7)• Net Increase $6.7

• Fairfax County Employee’s Retirement System $4.3• Health Insurance Rates $4.7

• New Pharmacy Contract Mitigated Rate Increases

Discuss: Priority of Compensation

($ in millions)

• Step for Eligible Employees $44.0

• Teacher Salary Scale Implementation $33.2

• MSA built-in (1% value is $14.2 million)

• Nonteacher Salary Scale Implementation $14.9

• Includes impact of MSA (1% cost is $7.9 million)

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Obtain Board Input on Potential Reductions/Fees

• Need to determine the Board’s level of consensus for possible fees and reductions to allow staff to begin planning for next school year

• Decision date criteria shared at the December work session:

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Budget Reduction CriteriaOptimal Decision 

Date

Impacts student course selection January/February

Impacts school placement January/February

Impacts other school divisions and county programs January/February

Impacts school staffing or employee contract lengths January/February

Impacts after school programs and transportation May

Impacts nonpersonnel allocations May

List of Potential Fees/Reductions

• Begins with the FY 2017 Budget Task Force list of recommendations provided at the October work session

• Added:• New recommendations and input from this year’s Budget

Task Force• Program budget information• Strategic Plan goal• Critical timeframe for decisions

• To help with planning, the value of potential reductions/fees by critical month are as follows:• January $55 million• February $64 million• May $182 million

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Direction to Begin Planning for Reductions

• For each item with a January critical date, the Board will be asked to prioritize the possible fee or reduction into one of three categories:

• Consider Reducing (green dot)• Reduce with Reservation (yellow dot)• Do Not Reduce (red dot)

• Board members will place dots indicating their prioritization below each item on the chart

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Outcome of Board Input on Potential Reductions/Fees

• The dots are not a final budget vote. They are an indication of the School Board’s consensus for staff to start planning to implement the fee or reduction that the School Board could adopt as part of the budget approval process

• For items that received a total of seven or more green “Consider Reducing” dots and yellow “Reduce with Reservations” dots, staff will begin planning for implementing the potential reduction/fee for next school year

• Time for School Board to provide input with dots• Review School Board input• Discussion will continue next month with the potential

fees/reductions that have upcoming critical dates

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Budget Calendar

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January 12, 2017 Superintendent releases FY 2018 Proposed BudgetJanuary 19 Budget Task Force recommendations submitted to SuperintendentJanuary 23 School Board conducts budget work session January 30 School Board holds public hearings on budget (January 31 and February 1 if needed)February 2 School Board conducts budget work sessionFebruary 9 School Board adopts FY 2018 Advertised BudgetFebruary 14 Fairfax County Executive releases FY 2018 Advertised Budget PlanFebruary 21 Joint Board of Supervisors and School Board MeetingFebruary 28 County Board of Supervisors (BOS) advertises tax rateMarch 13 School Board conducts budget work  sessionApril 4 School Board presents budget to County BOSApril 4‐6 County BOS holds public hearings on budgetApril 24 School Board conducts budget work sessionApril 25 County BOS FY 2018 Budget mark‐up ‐ determine budget package and tax rateMay 1 School Board conducts budget work sessionMay 2 County BOS approved the FY 2018 Adopted County Budget, tax rate resolution, and transfer amount to schoolsMay 11 School Board FY 2018 Approved Budget presented for new businessMay 16 School Board holds public hearings on budget (May 17 if needed)May 18 School Board conducts budget work sessionMay 25 School Board adopts FY 2018 Approved BudgetJuly 1 FY 2018 begins*Dates  tentative

FY 2018 Budget Calendar*