Charlottesville City Council/School Board Budget Work Session January 28, 2021 at 5:00 p.m. Zoom Virtual Meeting Agenda ● Call to Order ● FY2022 School Operating Budget Presentation ○ Dr. Rosa Atkins, Division Superintendent, and Kim Powell, Assistant Superintendent for Finance and Operations, will present information on the FY2022 Operating Budget for Charlottesville City Schools. ● Public Comment FY 2021 – 2022 Budget Development Joint School Board & City Council, Thursday, January 28, 2021 Agenda • Priorities • Revenue Outlook • Budget Requests • Summary & Next Steps Current Budget Alignment to Equity & The Strategic Plan Safe and Supportive Schools, $12,444,768 Academic Excellence, 14% $64,042,423 Growing Relationships Diverse, Inclusive, 72% and Rigorous Learning Experiences Supported / Supportive Staff Organizational Supports, $12,405,897 14% Current FY 2021 Budget Priorities for FY22 Budget Development  Recruit and retain highly qualified teachers and staff Lens of Equity  Maintain the continuity of high quality instructional programs Recruit & Retain  Apply a lens of equity in all funding Maintain Instructional Programs considerations to provide educational opportunities for all students Revenue Outlook Revenue by Funding Sources Current FY 2021 Budget Overall Enrollment Outlook • Current Fall Enrollment Down 258 Students from End of Last School Year • Recommend Using State Enrollment Projection for FY 2022 Budget (Average Daily Membership) • Approximately Equal to FY 2018 End of Year Enrollment • Estimates Increase of ~168 Students Over Current (~65% Recovery) State Revenue Highlight’s from the Governor’s Proposed Budget • 2 percent Bonus for SOQ – funded instructional and support personnel effective 7/1/2021 • “No Loss” Funding in ADM for FY 2021 and 2022 Estimate $32,781 Increase in State Revenue for FY 2022 Source: Auditor of Public Accounts, Local Government – Comparative Reports, 2019 Comparative Report of Local Government Cities Revenue Slow to Recover from the Last Recession James J. Regimbal, Jr., Fiscal Analytics LTD, presentation on 1/11/2021 to VASS/VASBO Winter Conference City Revenue The City is experiencing revenue shortfalls and uncertainty. Any increase in property tax revenues is expected to be off‐set by losses in meals & lodging taxes. Recommendation: Leverage CARES funding to maintain valued programs & address pressing student needs in a way that also allows time for the City to recover & stabilize revenues Federal Revenue CARES funds received August 2020 1,187,466.32 FY 2021 Uses: Family Engagement & Student Support Mentoring (25,000.00) Transportation (120,000.00) Supplies (200,000.00) Total for Carry‐Forward to FY 2022 842,466.32 CARES II funds 4,481,992.77 Net CARES I & II Funding 5,324,459.09 Budget Changes & Requests Priorities for FY22 Budget Development  Recruit and retain highly qualified teachers and staff Lens of Equity  Maintain the continuity of high quality instructional programs Recruit & Retain  Apply a lens of equity in all funding Maintain Instructional Programs considerations to provide educational opportunities for all students FY 2020‐2021 Budget Changes for FY 2022 from FY 2021 Budget Strategic Plan SALARY ACTIONS AMOUNT OS7 Teachers one step plus .75% - average increase 2% 760,507 OS7 Support Staff one step plus 1% - average increase 2% 128,416 OS7 Administrative Staff one step plus .75% - average increase 2% 218,158 AE-3, OS-7 Nurse Pay Scale: Alignment with Regional Market 177,537 OS-7, SS-5,6 Head Custodian Pay Scale: Adjustment 49,963 Total Salary Actions 1,334,581 NON-DISCRETIONARY CONTRACTS Insurance: General Liability/Property 10,000 Insurance: Workers Compensation 10,000 Add After City Contract: Pupil Transportation 140,265 Saturday 1/16 City Contract: Maintenance 226,404 School Board 386,669 Budget Work Total Non-Discretionary Session Changes for FY 2022 from FY 2021 Budget SCHOOL-BASED PROGRAM SUPPORTS& IMPROVEMENTS AE-1, AE-3, SS-4 Internet Access for Students: Remote Learning 91,200 AE-1, AE-3, SS-4 Zoom: Remote Learning Instruction Tool 25,000 AE-1, AE-3, SS-4 Remind: Communication Tool Platform 13,772 AE-1, AE-3, OS-10 Newsela: Literacy Content Platform Grades 7-12 17,900 AE-3, OS-9, SS-4,5,6 Social Workers: PreK - 4 & LMA 542,399 6.5 AE-3, OS7 Instructional Assistants: 2nd Grade 234,528 6.0 AE-3, OS-7, 8, SS-4 Assistant Principal: CHS 106,663 1.0 AE-1, AE-3, OS-7 Reading Specialist: Greenbrier 83,446 1.0 AE-3, SS-4 Teacher: STAR(Structured Teaching Autism Resource) Buford & Walker 166,892 2.0 AE-2, AE-3 Math Specialist: CHS 83,446 1.0 AE-1, AE-3 Teacher: Fine Arts Buford 83,446 1.0 AE-1, AE-3, OS-7 Teacher: Virginia State University Students Training to be Teachers and Reaching Success CHS 35,889 0.5 AE-3, OS-7, 8, SS-4 Literacy Specialist: LMA 35,889 0.5 AE-3, OS-7,8, SS-4 Lead Teacher Stipend: Grade Levels K - 6 57,000 38.0 AE-3, OS-7,8, SS-4 Lead Teacher Stipends: PreK 9,000 6.0 AE-3, OS-7,8, SS-4 Lead Teacher Stipends: ESL 7,500 5.0 AE-3, OS-7,8, SS-4 Lead Teacher Stipends: Special Education 10,500 7.0 Add After AE-3, OS-7, 8 Math Specialist: Additional 10 Contract Days 31,000 7.0 Saturday 1/16 AE-3, OS-7, 8 Reading Specialist: Additional 10 Contract Days 39,544 7.0 School Board AE-1, AE-3 Content Squads: Stipend 56,000 40.0 Budget Work AE-3, OS7 Substitute: Teacher Honorarium 25,000 Session AE-1, AE-3, SS-4 Books: K-12 Bookrooms 60,000 AE-1, AE-3 Materials & Supplies: K-12 Science 6,000 AE-1, AE-3, SS-4 Musicial Instruments: Maintenance & Repair 20,000 SS-5, 6 Athletic Trainer Services: Contract Increase 12,105 Total School-Based Program Supports & Improvements 1,854,119 Changes for FY 2022 from FY 2021 Budget SCHOOL OPERATIONS COVID Mitigation: Supplies 100,000 Total School Operations 100,000 REDUCTIONS FTEReductions Based on Enrollment: Professional Staff (333,785) (4.0) FTEReductions Based on Enrollment: Support Staff (39,089) (1.0) Total Reductions (372,874) GENERAL FUND TOTAL NET EXPENSES 3,302,495 REVENUES State 32,781 CARESI & II 3,269,714 City (Estimated Request) (0) GENERAL FUND TOTAL NET REVENUES 3,302,495 Federal Revenue Net CARES I & II Funding 5,324,459.09 FY 2021‐2022 Proposed Uses: General Fund (3,169,714.00) COVID Supplies (100,000.00) Total for Carry‐Forward to FY 2023 2,054,745.09 Summary & Next Steps Charlottesville City Blue Ribbon Commission on Sustainable Schools Funding 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. The size of the gap will depend on how the city economy fares, how property assessments change, what happens to school costs and whether the state and federal governments step forward to re‐assume a greater share of school costs. There will be inflation and other factors that will continue to drive school costs higher in the coming years even if no new major programs or facilities are added. Reference: City of Charlottesville – Report of The Blue Ribbon Commission on Sustainable School Funding January 22, 2014 Page 10 City Support for Schools City additional appropriation for Schools from FY 2015 to FY 2020 ranged between $1.5 to $3.8 million (average annual increase $2.3 million) City funding is the foundation & key for CCS programming & services. COVID‐19 has had significant and far reaching impacts on CCS Students emotionally, academically and economically. Staff have been working harder than ever to address student needs in the midst of ever changing challenges. CAUTION: The proposed budget leverages one‐time/non‐recurring CARES funds to address the most pressing needs and allows time for City revenues to cover. It will be essential for the City to start providing additional allocations starting in FY 2023 to off‐set these proposed uses of CARES funds or future cuts to services will be required. Any additional appropriation from the City for FY 2022 would start the process of reducing dependency on one‐time (non‐recurring) funds. Upcoming School Board Budget Dates • February 4th Superintendent’s Proposed Budget & Public Hearing • February 9th Budget Work Session • February 18th School Board Approval of Proposed Budget • March 1st School Present Budget to City Council Appendix Expenses by Category Current FY 2021 Budget Key Budget Factors Revenue – LCI Expenditures – Lens of Equity Recruit & Retain Maintain No Changes in these Key Factors for FY 2022 Instructional Programs Enrollment Outlook Elementary Class Sizes Burnley-Moran Elementary Max 24 Clark Elementary Max 19 Max 24 K 1 2 3 4 Total/Avg. Max 19 K 1 2 3 4 Total Projected Membership 63 60 53 69 64 309 Projected Membership 58 48 55 44 47 252 50%+ SPED 0 1 2 0 1 4 50%+ SPED 0 1 0 0 2 3 Projected Regular Membership 63 59 51 69 63 305 Projected Regular Membership 58 47 55 44 45 249 Projected Teachers 3 3 3 4 3 16 Projected Teachers 4 3 3 3 3 16 Projected IA's 3 3 1 7 Projected IA's 4 3.5 1.5 0.5 0.5 10 Budgeted Class Size 21 20 17 17 21 19.18 Budgeted Class Size 15 16 18 15 15 15.63 11/24/20 Enrollment 48 44 70 65 60 287 11/24/20 Enrollment 44 54 42 45 50 235 50%+ SPED 1 2 0 1 0 4 50%+ SPED 1 0 0 2 0 3 Regular Membership 47 42 70 64 60 283 Regular Membership 43 54 42 43 50 232 General Fund Teachers (excl. SEAL) 3 3 4 4 3 17 General Fund Teachers (excl. SEAL) 3 4 3 3 3 16 Title II-A Teachers Title II-A Teachers Total Current Teachers 3 3 4 4 3 17 Total Current Teachers 3 4 3 3 3 16 Total Curent IA's 3 3 1 7 Total Curent IA's 3 4.5 1.5 0.5 0.5 10 Actual Average Class Size 16 14 18 16 20 16.63 Actual Average Class Size 14 14 14 14 17 14.57 Greenbrier Elementary Max 24 Jackson-Via Elementary Max 21 Max 24 K 1 2 3 4 Total Max 21 K 1 2 3 4 Total Projected Membership 60 61 70 62 67 320 Projected Membership 59 64 52 63 51 289 50%+ SPED 0 0 0 1 1 2 50%+ SPED 1 5 4 4 3 17 Projected Regular Membership 60 61 70 61 66 318 Projected Regular Membership 58 59 48 59 48 272 Projected Teachers 3 3 4 3 3 16 Projected Teachers 3 3 3 3 3 15 Projected IA's 3 3 1 2 2 11 Projected IA's 3 3 2 8 Budgeted Class Size 20 20 18 20 22 20.03 Budgeted Class Size 19 20 16 20 16 18.13 11/24/20 Enrollment 48 62 59 62 59 290 11/24/20 Enrollment 60 49 62 49 60 280 50%+ SPED 0 0 1 1 1 3 50%+ SPED 5 4 4 3 2 18 Regular Membership 48 62 58 61 58 287 Regular Membership 55 45 58 46 58 262 General Fund Teachers (excl. SEAL) 3 4 4 3 3 17 General Fund Teachers (excl. SEAL) 3 3 3 3 3 15 Title II-A Teachers Title II-A Teachers Total Current Teachers 3 4 4 3 3 17 Total Current Teachers 3 3 3 3 3 15 Total Curent IA's 3 4 1 2 2 12 Total Curent IA's 3 3 2 8 Actual Average Class Size 16 16 15 20 19 17.13 Actual Average Class Size 18 15 19 15 19 17.47 Elementary Class Sizes (continued) Johnson Elementary Max 22 Venable Elementary Max 24 Max 22 K 1 2 3 4 Total Max 24 K 1 2 3 4 Total Projected Membership 59 59 58 55 59 290 Projected Membership 64 62 52 55 62 295 50%+ SPED 1 0 0 0 0 1 50%+ SPED 2 2 Projected Regular Membership 58 59 58 55 59 289 Projected Regular Membership 62 62 52 55 62 293 Projected Teachers 3 3 3 3 3 15 Projected Teachers 3 3 3 3 3 15 Projected IA's 3 4 2 9 Projected IA's 3 3 1 7 Budgeted Class Size 19 20 19 18 20 19.27 Budgeted Class Size 21 21 17 18 21 19.67 11/24/20 Enrollment 50 52 55 56 58 271 11/24/20 Enrollment 50 43 51 61 42 247 50%+ SPED 0 0 0 0 0 ‐ 50%+ SPED 1 0 0 0 0 1 Regular Membership 50 52 55 56 58 271 Regular Membership 49 43 51 61 42 246 General Fund Teachers (excl. SEAL) 3 3 4 3 3 16 General Fund Teachers (excl. SEAL) 3 3 3 4 3 16 Title II-A Teachers ‐ Title II-A Teachers Total Current Teachers 3 3 4 3 3 16 Total Current Teachers 3 3 3 4 3 16 Total Curent IA's 3 3 1 7 Total Curent IA's 3 3 1 7 Actual Average Class Size 17 17 14 19 19 17.15 Actual Average Class Size 16 14 17 15 14 15.38 Teacher Summary K-4 K 1 2 3 4 Total Projected 19 18 19 19 18 93 Current 18 20 21 20 18 97 IA Summary K-4 K 1 2 3 4 Total Projected 19 19.5 8.5 2.5 2.5 52 Current 18 20.5 7.5 2.5 2.5 51 5th – 12th Enrollment Outlook Fall 2020 21‐22 Actual Projection Change 4th 329 Walker 5th 323 309 (14) 6th 288 322 34 611 631 20 Buford 7th 324 286 (38) 8th 256 324 68 580 610 30 CHS 9th 311 327 16 10th 310 306 (4) 11th 259 281 22 12th 225 277 52 1,105 1191 86 No staff reductions recommended Current Budget & Key Metrics ACTUAL ACTUAL ACTUAL BUDGET Total Budget - All Funds 2017-18 2018-19 2019-20 2020-21 City 51,330,604 53,998,202 57,834,624 58,709,623 Local/Other 3,457,707 2,906,221 2,568,162 3,887,738 State 20,821,352 19,473,908 20,220,610 21,014,925 Federal 4,915,579 4,974,385 4,546,005 5,280,802 TOTAL 80,525,242 81,352,716 85,169,401 88,893,088 City % change over prior year 4.05% 5.20% 7.10% 1.51% State % change over prior year 5.27% -6.47% 3.83% 3.93% Federal % change over prior year -3.93% 1.20% -8.61% 16.16% Total % change over prior year 3.71% 1.03% 4.69% 4.37% Average % change in CPI per DOL 2.40% 1.80% City + Local % of budget 68.04% 69.95% 70.92% 70.42% State % of budget 25.86% 23.94% 23.74% 23.64% Federal % of budget 6.10% 6.11% 5.34% 5.94% Enrollment 4,527 4,559 4,542 4,259 Local Composite Index 0.6590 0.6772 0.6772 0.6886 Per Pupil Spending** 17,079 17,532 Local K-12 Operations Funding Grew Much Faster Than State Operations Funding from FY 2009-19 Per Pupil K-12 Funding $14,000 $901 $12,000 $729 $10,000 $5,388 6% growth $8,000 $5,082 $6,000 $4,000 $6,642 $5,504 21% growth $2,000 $0 2009 2019 Local State Federal Source: DOE Superintendents Annual Reports http://www.doe.virginia.gov/statistics_reports/supts_annual_report/index.shtml James J. Regimbal, Jr., Fiscal Analytics LTD, presentation on 1/11/2021 to VASS/VASBO Winter Conference State Revenue: FY18 to FY21 State Funding Change FY18 20,821,352 FY19 19,473,908 (1,347,444) FY20 20,220,610 746,702 FY21 Budget 21,014,925 794,315 193,573 Net Increase in State Funding FY18 to FY21 Significant State Revenue Drivers: Enrollment (ADM) & Local Composite Index of Ability to Pay (LCI) 2% Raise for Teachers & Staff • Keeps with budget priority – Recruit and retain highly qualified teachers and staff • Follows the Governor’s Proposed Budget – 2% bonus for SOQ instructional and support staff • Shortage of Qualified Teachers – The Pandemic crisis has magnified the teacher shortage issue both in terms of the number of staff and the need to provide greater flexibility in terms of what teachers can and cannot teach. • Virginia’s National income ranking of 12th (JLARC). Virginia’s Average Teacher Salary of $55,212 is ranked 32nd in the Nation; if moved to a National ranking of 12th, average salary would be $66,552 (NEA). State‐Funding for Teacher Salary Increases Lags Inflation (2% Salary Increases in FY 21 and FY 22 Unallotted) State Salary State-Funded Increase Salary % Compound Compound Fiscal Year Increase Growth CPI Growth 2009 0.0% 0.0% 1.4% 2010 2.0% 2.0% 2.4% 2011 0.0% 2.0% 4.5% 2012 0.0% 2.0% 7.5% 2013 0.0% 2.0% 9.3% 2014 2.0% 4.0% 11.1% 2015 0.0% 4.0% 11.8% 2016 1.5% 5.6% 12.6% 2017 0.0% 5.6% 14.8% 2018 2.0% 7.7% 17.3% 2019 0.0% 7.7% 19.8% 2020 5.0% 13.1% 22.4% 2021 0.0% 13.1% 24.6% 2022 0.0% 13.1% 27.3% James J. Regimbal, Jr., Fiscal Analytics LTD, presentation on 1/11/2021 to VASS/VASBO Winter Conference Virginia Instructional Pay Increases Have Slowed Considerably Since 2009 Average Salary - All Instructional Positions * $70,000 $61,611 $60,000 $58,677 $53,581 $50,000 $42,788 $40,000 $30,000 $20,000 $10,000 $0 2002 2009 2018 2020 est. Source: Superintendent’s Annual Report. *All instructional positions include classroom teachers, guidance counselors, librarians, principals, and assistant principals. James J. Regimbal, Jr., Fiscal Analytics LTD, presentation on 1/11/2021 to VASS/VASBO Winter Conference Head Custodian Pay Scale All head custodians benefit from this proposal. Average increase for current head custodians on their currently occupied steps is $5,054. Current differential between regular & Proposal more appropriately head custodian is $608 at step 0 and recognizes the additional only increases to $2,378 at step 28, then Head Custodian responsibilities jumps up to a differential of $7,519 regardless of step only at step 29. Cost for Proposed Scale Adjustments $49,963