Charlottesville City Council/School Board Budget Work Session February 2, 2022 at 5:00 p.m. CHS Media Center and Zoom Agenda ● Call to Order - Mayor Snook and School Board Chair Lisa Torres ● Roll Call - Council and School Board Clerks ● FY2023 School Operating Budget Presentation ○ Dr. Royal Gurley, Division Superintendent, and Kim Powell, Chief Operations Officer, will present information on the FY2022 Operating Budget for Charlottesville City Schools. ○ Wyck Knox, Principal-in-Charge and Project Manager for VMDO, will present information on Reconfiguration. ● Public Comment Register in advance for this webinar: https://charlottesvilleschools.zoom.us/webinar/register/WN_DqZaI614RDCglrQYgqlIZg After registering, you will receive a confirmation email containing information about joining the webinar. Charlottesville City Schools • Office of the School Board 1562 Dairy Road • Charlottesville, VA 22903 Telephone (434) 245-2965 • Fax (434) 245-2603 Dear Council Members - In preparation for our joint work session this Wednesday, we are providing this executive summary to assist with understanding the unique challenges and opportunities that Charlottesville and other school divisions now face with federal relief funds. Significant one-time non-recurring federal funds (over $15.7 million) were awarded to CCS last year, and these funds will not be available after September of 2024. Facing many needs for students and much uncertainty regarding City revenues for this year, there was agreement for no increase in local appropriation to schools last year, and instead almost $5 million of the non-recurring federal money was allocated to support the 5% salary increase for staff, purchase Chromebooks for students, support student internet access, re-stock books in schools, purchase COVID mitigation supplies, and add positions to address learning loss & social/emotional needs. It is not typical or sustainable for schools to use non-recurring funds to budget for recurring expenses such as wages and positions. The normal practice is to use one-time funding only for non-recurring expenditures such as equipment and capital projects, so we have some difficult work to do over the next two budget cycles in order to transition the CCS budget back to a healthy balance of recurring funds for recurring expenses, and use of non-recurring funds only for non-recurring expenses. The path forward requires both additional recurring funds for the budget in combination with reducing expenses over time. Attached is some of the information we will be presenting to facilitate the discussion this Wednesday. Key points from the attached materials include: ● We are using a thermometer graphic to help staff and the community understand the non-recurring funds in our current FY 22 operating budget that must be reduced and ultimately eliminated before the funds expire in 2024 ● The budget changes document shows a proposed salary action of 5% for all staff. This rate matches what is in the Governor’s proposed education budget in order to be eligible for the state dollars allocated to Charlottesville for FY 2023 salary actions. ● The change recommendations document, although not yet final, also reflects over $370,000 in cost reductions for contracted services, and an additional $974,262 in staffing reductions. This represents over $1.4 million in reductions to help address the current gap in recurring revenues for school operations. ● The basis for the City request for FY 2023 is the $3,160,549 allocation increase by formula plus the amounts needed to balance the budget lines for the payments CCS makes to the City for transportation services ($567,062), facilities maintenance ($296,459) and stormwater taxes ($15,000). This total of $4,039,070 is reflected on the Budget Changes Recommendations document as of January 15th. ● Given the current assumptions and recommendations for budgeted revenues and expenses for FY 2023, the CCS dependency on non-recurring federal relief funds for school operations would decrease from almost $5 million down to ~$2.2 million. ● As dependency on non-recurring revenues to support school operation is reduced, significant non-recurring federal relief dollars can be redirected to school capital projects, which in turn could yield between $5 to $8 million dollars to support reconfiguration. As you review this information, please feel free to send questions in advance. We look forward to talking with you on Wednesday and working together to determine the best way forward for our students, while eliminating dependency on non-recurring funds and optimizing the CCS federal relief funds for our City. Sincerely, Lisa Larson-Torres, Chair Charlottesville City School Board FY 2023 Budget FEBRUARY 2, 2022 Joint Work Session Who We Are - Enrollment Fall 2021 Enrollment: Pre‐K 215 Elementary (K‐4) 1620 Walker (5‐6) 623 Buford (7‐8) 599 CHS (9‐12) 1231 TOTAL ENROLLMENT 4288 *Source: VDOE School Quality Profile 2020-2021 Who We Are - Demographics Source: VDOE School Quality Profile 2020-2021 COVID 19 and Education Source: Curriculum Associates, i-ready assessment data The Science of Reading Key Priorities and Shifts 1. Tier 1 Foundational skills (NOT word study groupings) 2. Move away from leveling students. Build reading stamina through fluency routines while scaffolding every student to closely read grade level text (PK-2 through read- alouds) 3. Write a lot. Students should write (and talk) in response to reading. Use writing workshop for volume of writing. Remember, skilled effortless reading is the PRODUCT of strong word recognition (decoding) and strong language comprehension. Both sides of the rope are NECESSARY. Mathematics We strive to create an environment where every student is actively engaged in building their own mathematical understanding. There are high expectations for all students to reason, explain, apply, and connect mathematical knowledge through a variety of rigorous learning tasks. Teachers act as facilitators and implement equitable mathematics experiences that allow students to explore, communicate, and represent their ideas in different ways as well as value the ideas and thinking of all learners. OUR PATH FORWARD • We revamped our curriculum to address the framework outlined in Continuing the Journey: Mathematics Learning 2021 and Beyond (July 2021). • The publication presents considerations, questions, and potential solution processes to educators and school leaders to address the challenges highlighted by the COVID-19 pandemic. • We focused on the acceleration of learning and tiered supports for students. Moving Forward Supporting Mental Health • We know that students have experienced, and possibly continue to experience, trauma related to COVID • School Mental Health Professionals in place to support students Embracing English Language Learners • We know that many new ELLs are being enrolled by the IRC (International Rescue Committee) and we are working to support these new learners Acceleration of Learning • We know that COVID impacted learning for all students and widened the achievement gap for disadvantaged students Budget Priorities & The Strategic Plan FY 2023 Budget Priorities Reconfiguration Focus on Student Programs Staff Compensation & Benefits Strategic Plan – 3 Focus Areas Safe and Supportive Schools Academic Excellence Organizational Supports Coronavirus Aid Relief Economic Security (CARES) & Subsequent Funding Spend Down Award Source Description Acronyms Issue Date Deadline Amount Coronavirus Aid Relief Economic Secuity CARES 3/27/2020 9/30/2022 1,187,446 Coronavirus Response and Relief CRRSA / Supplemental Appropriation "CARES II" 12/27/2020 9/30/2023 4,481,993 American Rescue Plan (Act) ‐ Elementary & ARP ESSR III / Secondary School Emergency Relief "CARES III" 3/11/2021 9/30/2024 10,065,919 Total CARES Funding 15,735,358.17 CARES & CRRSA budgeted for Operations in Fiscal Year 2022 - $4,571,634 Prior to requesting reimbursement for CRRSA funds (CARES II) school divisions must have expended and requested all of CARES I allocation (Superintendents’ Memo 090-21, April 9, 2021) Addressing Non-Recurring Funding $5,000,000 Current FY 2022 Adopted Budget is “hot” with recurring expenditures funded using non-recurring (one-time) revenue - $4,571,634 CARES Funds plus allowance of up to $332,952 per $4,000,000 year for increased transportation costs (2 year pilot) $3,000,000 2 Ways to “Cool” (decrease dependency on Non-Recurring Revenues): • Increase revenue from recurring sources • Decrease expenses $2,000,000 Currently, Fiscal Year 2024 (the budget we develop next year) is $1,000,000 the last full year to use the Federal non-recurring relief funds. Revenue Outlook - State Based on the Governor’s Budget Proposal – Estimate $1.7 Million Additional State Revenue for Operations Key areas of State Revenue increases: • At-Risk – Additional support for educationally at-risk students. • Sales Tax – Revise projection based on the November 2021 sales tax forecast. • Grocery Tax Hold Harmless – Reflects the projected net decrease in state payments from the eliminating “grocery” tax. • Re-benchmarking Hold Harmless – Restore funding for certain re-benchmarking data significantly impacted by the pandemic. Revenue Outlook - Local • City budget guidelines allocate 40% of new personal and real property tax revenues to CCS • 40% new personal and real property tax from FY15 – FY21 has ranged from $1.1 - $2.2 million • For FY 22, 40% was equivalent to $746,069 • 40% of new personal and real property tax revenues for FY 23 has been estimated at $3.1 million CCS Budget & City Appropriations The Average Annual Increase in City Appropriation for Schools was $2.3 Million from 2015 to 2020 City of Charlottesville – The Blue Ribbon Commission on Sustainable School Funding Report – January 22, 2014 (page 10) It is difficult to estimate the size of the year-to-year funding gap going forward but it appears to be somewhere between $2-4 million a year. Expenditures Contractual & Non-Discretionary Services are 11% Personnel Expenses (Wages & Benefits) Represent Over 77% of Expenditures Staffing Overview Instructional 83.37% Site‐Based: Custodians,Nutrition & Administration 8.18% Division: Support & Administration 8.45% Salary Actions Budget Change Recommendations for FY 2023 Strategic Plan SALARY & BENEFIT ACTIONS AMOUNT OS 7 Teachers one step plus 3.75% - average increase 5% 2,015,363 OS 7 Support Staff one step plus 4% - average increase 5% 349,804 OS 7 Administrative Staff one step plus 3.75% - average increase 5% 599,013 OS 7 & 8 Benefit: Health Insurance 818,544 OS 7 & 8 Benefit: Employee Assistance Program 1,754 OS 7 Revise Nutrition Manager's Pay Schedule (see Appendix) - Total Salary & Benefit Actions 3,784,478 Total of Average 5% Raise for Everyone is $2,964,180. Budget Change Recommendations for FY 2023 RECURRING & NON-DISCRETIONARY CONTRACTS City Contract: Pupil Transportation 567,062 City Contract: Maintenance 296,459 City of Charlottesville Stormwater Tax 15,000 Contract: CATEC 32,569 Contract: Piedmont Regional Education Program (PREP) (300,000) Workers Compensation Coverage 13,403 Fine Arts: Richmond Ballet (40,000) Software Subscriptions/Support/Maintenance 33,060 Technology Audit (34,900) Total Recurring & Non-Discretionary Contracts 582,653 SCHOOL-BASED PROGRAM SUPPORTS & IMPROVEMENTS AE3, SS4 Teacher: Buford Theatre (.5 FTE) 43,150 0.5 AE2, SS4 Stipends: CHS Theatre Assistant 3,400 OS 7 & 8 Stipends: Pathologist and Psychologist 2,250 Total School-Based Program Supports & Improvements 48,800 Budget Change Recommendations for FY 2023 REDUCTIONS Re-Organization & FTE Adjustments (net) (846,262) (17.0) Content Squads: Stipends (56,000) Books: K-12 Bookrooms (60,000) Internet/Communications (12,000) Total Reductions (974,262) GENERAL FUND TOTAL NET EXPENSES 3,441,669 REVENUES Increase: State 1,786,385 Decrease: CARES II/ARPA (2,383,786) City (Estimated Request) 4,039,070 GENERAL FUND TOTAL NET REVENUES 3,441,669 Formula Allocation Increase 3,160,549 Increases in Payments to the City: Transportation 567,062 Maintenance 296,459 Stormwater Tax 15,000 City Estimated Request 4,039,070 Re-Organization & FTE Adjustments Positions FTE's Amount Notes To be absorbed in current vacancies (10) in Instructional Assistants ‐15 (599,103) combination with normal attrition Combination of reductions and Administrative Support ‐2 (247,159) reassignments Adjustments for projected enrollment (see Elementary Teachers ‐2 (172,600) appendix) ‐ absorbed via normal attrition Secondary Teachers 2 172,600 New Success Academy TOTAL (17) (846,262) The Path Forward: No one loses employment with these budget recommendations Addressing Non-Recurring Funding $5,000,000 Total CARES/ARPA Grant Funds Awarded 15,735,358 $4,000,000 Spent in FY 2021 CARES I (336,749) FY 2022 Adopted Budget (4,571,634) $3,000,000 FY 2023 Recommended Budget (2,187,848) Remaining ARPA Funds for FY 2024 Budget 8,639,127 $2,000,000 $2.2 Million $1,000,000 ARP/ESSER III Funds  Purpose  Help schools return safely to in-person instruction, maximize in-person instructional time, sustain the safe operations of schools, and address the academic, social, emotional, and mental health impacts of the COVID-19 pandemic on students. At least 20 percent must be reserved to measure and address the academic impact of lost instructional time on all students. Interventions to address the academic impact of lost instructional time will respond to the academic, social, emotional, and mental health needs of all students  Application Requires 2 Plans:  Safe return to in-person instruction and continuity of services  CCS COVID-19 mitigation health plan is posted at: https://charlottesvilleschools.org/covid- communications  The plan will be reviewed and revised at least once every six months in accordance with the ARP ESSER Interim Final Rule and any subsequent state or federal guidance to ensure it remains relevant and meets statutory and regulatory requirements  Public comment on the plan will be encouraged at School Board meetings and online  Use of the ARPA ESSER funds  The plan will be shared with stakeholders including students, families, and staff for review and comment via Board meeting and online communication channels ARP/ESSER III Funding Considerations A Scenario: Total CARES/ARP/ESSER 15,735,358 • At least 20 percent (~$2M) must be reserved to measure and FY 21 Actual 336,749 address the academic impact of lost instructional time on all FY 22 Estimated 4,571,634 students. Interventions to address the academic impact of lost FY 23 Proposed 2,187,848 instructional time will respond to the academic, social, Technology Infrastructure/FY 24 1,800,000 emotional, and mental health needs of all students • Use of these funds for “construction” (capital projects) requires Projected Balance Available prior approval from VDOE for non‐recurring expenses 6,839,127 • Period of Performance to spend all these funds is between March 13, 2020 and September 30, 2024 • Expect supply chain, labor shortage and inflation issues to persist How to Support Reconfiguration Upcoming CIP Projects Project Budget Venable Building Envelope 535,000 Completed Summer 2021 LMA Siding Replacement 50,000 Completed Summer 2021 Venable Annex Foundation Repair 150,000 Completed Summer 2021 Greenbrier Modernization 1,250,000 In Design ‐ Summer 2022 Construction Clark Building Envelope 450,000 FY 2022 CHS Roof Replacement 1,320,000 FY 2022 CHS Electrical Panel Replacements 500,000 FY 2022 Subtotal (from 10/26/2021 CIP Committee Meeting) 4,255,000 Johnson Modernization 1,250,000 Summer 2023 Construction Venable Modernization 1,250,000 Summer 2024 Construction TOTAL 6,755,000 More Support for Reconfiguration – CSLFRF HVAC Grant Invoice to CCS HVAC Project Description from CIP Total 50% Schedule Notes 22 individual classroom unit replacments installed at Buford, Clark, Greenbrier, Venable & Walker 173,872 86,936 COMPLETED Summer/Fall 2021 Building Automation System installed at Venable Elementary School 158,062 79,031 COMPLETED Summer/Fall 2021 Building Automation System to be installed at Clark Elementary School 170,000 85,000 2022 (FY23) 7 Make Up Air Units to be installed at Walker Upper Elementary School 780,000 390,000 2022 (FY23) *manually These dollars AC‐1 Outside Air Unit to be installed at Venable adjusted/reduced to Elementary School 185,436 92,718 2023 (FY24) match grant reduce City Cooling Tower to be installed at Venable Elementary dollars for School 150,000 75,000 2023 (FY24) School HVAC 1,617,370 808,685 TOTAL CSLFRF HVAC GRANT FUNDS AVAILABLE 808,685 CIP projects. SUMMARY: CCS Grant Funded HVAC CIP Projects 808,685 ARP/ESSER Grant Fund Other CIP Projects 6,755,000 POTENTIAL LOCAL CIP DOLLARS for RECONFIGURATION 7,563,685 Reconfiguration Projects for the Middle School and Pre-school Campuses:  Address aging facility issues  Reduce student transitions during critical middle years  Provide modern, state-of-the-art facilities to support best practices for early learning and middle school education  Improve safety and reduce carbon footprint “Specifically significant correlations have been found between poor structural, conditional, and aesthetic attributes of school buildings and low student learning and achievement.” Source: Fildaro, M., Vincent, J., Sullivan, K., Starr, J., Fusarelli, L., Ross, E. (2019, May 02). More Information Available at: https://kappanonline.org/how-crumbling-school-facilities-perpetuate-inequality-filardo-vincent-sullivan/ Next Steps