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PRESENTATION TO BOARD OF SUPERVISORS

MARCH 7 T H , 2012

FY 2013 School Board Proposed Budget

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Where the Money Comes From

FY 2013 Amount ($ in millions)

Carryover $10.0County transfer $536.5County VRS reserve $10.0State revenue $242.2Federal funds $14.1Other funds $6.9 Total $819.7

County Transfer Request = $536.5 million

65.5%County

Transfer

29.6%State

Revenue

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Where the Money Goes

Pupil Transportation

Administration

Attendance & Health

Instruction 78.5%

TechnologyOperations & Maintenance

Facilities

FY 2013 Amount ($ in millions)

Instruction $643.9Administration $16.7Attendance & Health $10.3Pupil Transportation $53.9Facilities $2.8Operation & Maintenance $71.1Technology $21.1 Total $819.7

Note: Expenditure categoriesdefined by Virginia Board of Education

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Budget and Enrollment Growth

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

$390

.2

$461

.2

$529

.3

$605

.6

$690

.6

$745

.6

$735

.6

$710

.3

$745

.9

$819

.7

40,

751

44,

014

47,

361

50,

478

54,

047

57,

009

60,

096

63,

220

65,

668

68,

170

Budget and enrollment growth will not necessarily be consistent due to inflation, salary enhancements, and increases beyond the control of the school division such as VRS in any given year.

VirginiaRetirement System (VRS) increase

$ in millions

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012 FY

20

13*

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FY 2013 Expenditure Increases

VRS$34.4 million

Enrollment Growth

$23.4 million

Compensa-tion

$13.8 million

Other$0.6 million

46.6% due to increased VRS contributions set at State level

31.7% due to increased staffing for growth in student enrollment of 2,50218.7% due to increased employee costs and targeted salary increases.2.2% due to increased staffing and operational expenses for two new schools.

0.8% due to increased costs of other operational expenses across all departments.

New Schools$1.6 million

Breakdown of $73.8 million budget increase

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Cost Per Pupil (CPP)

FY12 CPP Comparison Division FY12

Arlington $18,047

Alexandria $17,618

Fairfax $12,820

Loudoun $11,014

Prince William $9,852

Source: FY 2012 Washington Area Boards of Education (WABE) Guide

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$9,604

$10,266 $11,379

$12,023 $12,751 $12,780

$11,997

$10,833 $11,014

$11,752

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012 FY

20

13*

Ten-Year History of LCPS CPP

By WABE definition, the Cost Per Pupil does not include adult education, self-funded summer school, health services, selected earmarked grants, and the portion of the CIP funded by cash.

* Proposed

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Budgeting Values

Provide high quality public education

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Provide High Quality Education

95.3% of seniors last year graduated on-time.

All high schools ranked among best in Washington Post Challenge Index—five among the top in the nation.

10 middle schools ranked “Schools to Watch”—more than any other school district in the nation.

One of 388 school divisions nationwide honored with “AP Achievement List” by the College Board— one of only 3 in Virginia.

7 schools received 2012 Governors Award for Educational Excellence.

38 schools awarded Energy Star designation for energy efficiency.

Sports teams won 6 state championships last year.

Budgeting Values

Provide high quality public education

Remain sensitive to economic environment

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Sensitivity to Economic Environment

Comparative History of Budget Reductions(in $ millions)

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FiscalYear

2009

2010

2011

2012

2013

Superintendent

Proposed

$801.4

$757.7

$764.7

$757.2

$831.7

School Board

Proposed

($7.1)

($10.5)

no change

no change

($12.0) plus $1.7 in

reinstated

income

FinalAppropriatio

n

($48.7)

($14.6)

($54.4)

($11.3)

?

Despite modest signs of economic

recovery, the School Board has made strategic

reductions to the Superintendent’s proposed budget

in FY 2013 to reflect the

continued need for cost containment.

Sensitivity to Economic Environment10

* Revenue Increases

School Board Reductionsto FY 2013 Superintendent’s Proposed Operating Budget

Amount($ in millions)

$2.8 $0.3 $1.3 $2.6$1.8$0.8$2.4$1.7

$13.7

FTEs

20.0 35.0

13.041.0

109.0

Area of Reduction

SalariesSystem-wide staff developmentFull Day Kindergarten (phase 1)FLES program scale-backSystem-wide non-salary fundingClassroom-based New PositionsAdministrative/Support New PositionsReinstatement of AP and athletic fees*Net Reduction to County Transfer

Reductions have been targeted to

minimize impact on classroom-based

instruction, maximize

competitiveness,and reduce long-term liabilities.

Budgeting Values

Provide high quality public education

Remain sensitive to economic environment

Maintain class sizes

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Maintain Class Sizes

Source: FY 2012 WABE Guide

Only Prince William County has a lower CPP than Loudoun

County. Dramatically larger

secondary class sizes helps to explain how.

Class sizes have increased twice in Loudoun County in the last four years. The School Board

wants to avoid further increasing

class sizes.

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Division

Alexandria

Arlington

Fairfax

Loudoun

Prince William

Elementary

18.1

20.3

21.5

23.3 (#5)

22.5

Middle

19.9

20.6

24.4

23.1 (#3)

28.3

High

21.7

19.9

25.1

24.3 (#3)

28.8

FY 2012 Average Class Sizes

Budgeting Values

Provide high quality public education

Remain sensitive to economic environment

Maintain class sizes

Focus staffing increases in the school and classroom

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Focus Staffing Increases in School & Classroom

Source: FY 2012 WABE Guide

The proposed FY 2013 Operating

Budget deliberately reduces the number of non-school based staffing in Loudoun County by an entire percentage point. This should enable

Loudoun to lead the region in school-based staffing at

93.6%

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Division

Alexandria

Arlington

Fairfax

Loudoun

Prince William

School-Based

91.6%

90.4%

93.0%

92.6% (#2)

89.6%

Non-School Based

8.4%

9.6%

7.0%

7.4%

10.4%

Comparison of FY 2012 Staffing Focus

Budgeting Values

Provide high quality public education

Remain sensitive to economic environment

Maintain class sizes

Focus staffing increases in the school and classroom

Provide competitive compensation

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Prince William

Loudoun

Fairfax

Arlington

Alexandria

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

Provide Competitive Compensation

$72,635

$59,367

$61,304 (#4)

Comparison of FY 2012 Teacher Salaries

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Source: FY 2012 WABE Guide

$63,980

$71,239

$43,715 (#3)

$43,633

$43,910

$44,440

$43,612

$99,081 (#3)

$99,064

$101,298

$93,015

$99,433

Provide Competitive Compensation

*School Board proposed, all other Superintendent proposed

The proposed FY 2013 Operating Budget focuses pay increases

disproportionately at the lower end of the pay scales and caps increases at the top of each pay scale at FY 2012 levels. This is to help compress our pay scale by increasing pay at the

lower levels while restricting upper level growth. 95% of all employees,

however, would still get a pay increase – most either $1,750 or 0.50$/hour.

This year’s pay increase will represent only the second one for LCPS

employees since FY 2009 and is needed to keep Loudoun competitive with most surrounding jurisdictions,

particularly Fairfax County.

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Division Salary Increase

Alexandria* up 1.2%

Arlington up 2.0%

Fairfax* up 4.7%

Loudoun* up zero to 4.0%

Prince William zero.

Comparison of Proposed FY 2013 Salary Increases

Budgeting Values

Provide high quality public education

Remain sensitive to economic environment

Maintain class sizes

Focus staffing increases in the school and classroom

Provide competitive compensation

Support opening of new schools

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Support Opening of New Schools

The proposed FY 2013 budget includes 39 new positions to support the opening of Frederick Douglass ES and John Champe HS in fall 2012 and to prepare for the opening of ES-16 and ES-22 in fall 2013.

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New School Positions

PrincipalsAssistant PrincipalsGuidance StaffTechnology StaffLibrariansCustodiansAthletic StaffNursing StaffClerical/Support Staff

Total New School Positions:

New FTEs

2.0 2.0 4.0 4.0 3.0 16.0 1.0 2.0 5.0

39.0

These new school positions represent a reduction of 13 FTEs

from the number requested by the Superintendent, primarily to

account for smaller initial student populations at these new schools. Rather these additional

positions can be added with future growth in student enrollment as needed.

Maintain Existing Facilities

Capital Asset Preservation Program (CAPP)

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System Component ReplacementFY

2013FY

2014FY

2015FY

2016FY

2017FY

2018Electrical $555,ooo $135,000 - $225,000 $335,000 $435,000Heating, Ventilation and Air Conditioning $175,000 $255,000 $195,000 $135,000 $180,000 $135,000

Plumbing $205,000 $960,000 $150,000 $80,000 $50,000 $100,000

Resurfacing $750,000 $1,022,000 $900,000 $380,000 $497,000 $550,000

Roofing $1,280,000 $2,380,000 $4,050,000 $4,300,000 $1,550,000 $1,350,000

Structural Repairs $210,000 $375,000 $620,000 $375,000 $380,000 $260,000

Windows - $450,000 $200,000 $450,000 $300,000 -

Fiscal Year Totals $3,175,000 $5,577,000 $6,115,000 $5,945,000 $3,292,000 $2,830,000

Extending the useful life of Loudoun’s school facilities

CAPP funding in the amount of $3,175,000 in FY 2013 will help catch-up on delayed maintenance and repairs on school facilities over the past few years.

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Provide for Future School Facilities

Comparison of Student Growth ProjectionsFY 2012-16 and FY 2013-18 CIPs

FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 50,000

60,000

70,000

80,000

90,000

66,266 69,323

72,395 75,011

77,437 79,724

81,966

65,688 68,170

70,652 72,396 73,789 75,191 76,143

Updated enrollment

projections this year indicate

5,823 fewer new students byFY 2018.

As a result, Loudoun will require fewer

school facilities to accommodate

anticipated student growth for

the next several years.

FY 2012-16 CIP FY 2013-18 CIP

FY 2013-18 Capital Improvement Program (CIP)

• Construction of 3 New Elementary Schools (ES-21, ES-23 and ES-28)

• Construction of 2 New Middle Schools (MS-7 and MS-9)

• Construction of 3 New High Schools (HS-6, HS-8 and HS-11)

• Construction of Monroe Advanced Technology Academy (MATA)

• Conversion of Monroe to the Alternative High School

• Additions to Mercer MS and Freedom HS

• Renovation to Loudoun Valley HS

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The six-year School Board adopted CIP includes:

13 projects totaling $685.5 million over 6 years($234.1 million less than the FY 12-16 School Board adopted CIP)

Where do we go from here?

Realize the tremendous asset that Loudoun’s public school system is to its community and its future.

Focus on providing affordable, high-quality schools for Loudoun’s children.

Balance the needs of a variety of constituencies in the budget process.

Steward public funds wisely through constant analysis, review, dialog and collaboration throughout the year.

Recognize that this is just the beginning of a four-year relationship.

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