MCPS BUDGET 2016-2017 Special MCPS Board Meeting: January 26, 2016

MCPS BUDGET 2016-2017 Introduction

Presenters Introduction Dr. John Staten Finance and Purchasing Dr. John Staten Technology Mr. Harvey Goodwin Transportation Ms. Rebecca Mummau Facilities Mr. Dan Berenato School Nutrition Mr. Michael Marcenelle Fiscal Overview Ms. Katie Miano

• FINANCE • PURCHASING • TECHNOLOGY • FACILITIES • TRANSPORTATION • SCHOOL NUTRITION

MCPS BUDGET 2016-2017 Operations

Six Year Plan Goals

Leadership, Operations, and Communications Goal: MCPS will maintain and enhance effective leadership, operations, and communication practices. Safety and Wellness Goal: MCPS will sustain a nurturing environment that ensures the physical and emotional well-being of all individuals within the learning community.

MCPS BUDGET 2016-2017 Operations pg. 102

• The facilities department manages the planning, design, construction, maintenance, cleaning, and operation of all MCPS controlled school buildings.

• The finance and purchasing department manages all business transactions.

• The technology department provides services and tools to every school and building to support integrated technology in the classroom and a stable network to use those resources.

• County school buses safely travel more than 8,300 miles each day, providing transportation for approximately 7,000 students across the county.

• Provide healthy and nutritious meals to our students.

• Together, these departments fully support the education of students throughout Montgomery County, ensuring that their learning environment.

Operations

Significant Accomplishments

• Successfully oversaw the construction and remodeling of five schools in the past six years.

• Integrated with Montgomery County on the MUNIS system. • Increased Professional Development through conferences. • Cost avoidance through effective contract negotiations. • Award of Excellence for Website Category: 15-16 Budget

Planning Information.

MCPS BUDGET 2016-2017 Finance & Purchasing pg. 106

• Manages the development of the division’s operational budget • Ensure the proper procurement for all purchases • Supervise the financial operation of all schools and operations • Ensures the timely payment of the division bills • Conduct oversight through audits • Oversee the contract bidding process to ensure we get the best pricing • Manage the general liability insurance for the district • Oversee warehouse operations • Oversee the disposition of surplus property • Manage all fixed assets

Six Year Plan:

Areas of Focus and Success

Leadership, Operations, and Communications • Continued use of the MCPS Website for community input • Professional development through conference attendance • Revamped the budget book • Saved approximately 2.4 million through effective

contract negotiations (2012 - 2015) • Streamlined processes to ensure effective checks and

balances to expedite payment of the bills

Challenges & Requests

Program Enhancements and Targeted Restorations

Restore Warehouse Worker $36,753

Administrative Assistant for Operations & Finance $46,688

MCPS BUDGET 2016-2017

Technology pg. 108

• Computer Maintenance • Networks • Security Systems • AV Equipment • Telecommunications

Six Year Plan:

Areas of Focus and Success

Leadership, Operations, and Communications • Bandwidth increased by 60% • Wi-Fi to saturation at SMS; CMS; BMS & MC • Single Sign on Initiative • SharpSchool • Data Synchronization • State Reporting • IP Telephony

Six Year Plan:

Areas of Focus and Success Cont’d

Safety & Wellness • State Security Grant • Security Cameras • Visitor Management System

Challenges & Requests

Program Enhancements and Targeted Restorations

Bandwidth Increase $84,000

Technology Life Cycle Replacement Plan $104,400

Software additions for Recruitment and Security

$87,114

Records Application for HR. $35,000

MCPS BUDGET 2016-2017 Transportation pg. 110

• Our drivers drove 1.5 million safe miles in 2014/15 90 Daily Routes transporting over 7,000 students: ∘ 75 Regular Ed. Routes ∘ 13 Special Ed. Routes ∘ 1 Governors School Route ∘ 1 for Homeless Children & Youth out of district

Vocational and other programs during day Extra-curricular, academic & sports trips Summer School

Leadership, Operations, and Communications

• Provide systematic, formal & job specific professional development for employees

• Maintain and enhance communications with all stakeholders & provide opportunities for input

• Regularly evaluate procedures and practices and implement improvements when necessary

• Strive to retain highly qualified employees • Have long range planning goals that will enhance

the overall operations of the department

Six Year Plan:

Areas of Focus and Success

Safety and Wellness • Recruit and retain the highest caliber drivers and aides • Passion for the needs of children • Experienced and skillful drivers • Training in bullying detection and prevention,

discipline skills, and “The Peaceful Bus” • Video Surveillance systems

Six Year Plan:

Areas of Focus and Success

Transportation Operations

Staff • Full-Time Staff ∘ Office & Garage staff ∘ Part-Time Staff ∘ Drivers, Aides, & Substitute/Trip Drivers

Buses and Non-Bus Vehicle Fleet

• Bus Routes & Activity Routes • School Bus Maintenance • Fleet Vehicles, including trailers, mowers, snow

blowers, weed eaters

Challenges

Driver Retention and Recruitment Aging Buses

• Life Cycle of 15 years • 82% of MCPS buses have an expired warranty

2

6 6

10

7

18

15

16

14

4

9

4

8

7

-

2

4

6

8

10

12

14

16

18

20

Number of Years before Bus Due for Replacement Based on Age

Bus Purchases by Year

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Mie

age

Model Year

Bus Mileage based on Model Year

Linear ()

Challenges

Driver Retention and Recruitment Aging Buses

• Life Cycle of 15 years • 82% of MCPS buses have an expired warranty

Aging Vehicle Fleet • 55% of vehicles are older than 10 years

41 Vehicles over 10 Years Old

Driver Retention and Recruitment Aging Buses

• Life Cycle of 15 years • 82% of MCPS buses have an expired warranty

Aging Vehicle Fleet • 55% of vehicles are older than 10 years

Changes in Legislation • Foster Children

Challenges

Request

Program Enhancements and Targeted Restorations

Purchase Four Buses to Continue to Restore Bus Replacement Cycle

$350,000

MCPS BUDGET 2016-2017 Facilities & Planning Department pg.104

• Facilities Planning Design Construction Maintenance Repair Cleaning Operation Inspection • ~2.25 million square feet of buildings • ~519 acres • Supporting all 2,800 staff and 9,500 students and

community use

People Involved • Custodians – 100 • Maintenance trades shops people – 24 • Grounds people - 5 + 2 seasonal FTEs • Operations, program, contract management and administrative personnel - 9 • Contracted Support fire alarm and suppression systems elevators building HVAC controls environmental tests and remediation bleacher & gym equipment inspection surveying, engineering, architecture structural and roof inspections aerial lifts and bucket lift inspection planning studies

emergency generators a/c chillers trash removal pest control construction contractors electronics recycling grease trap cleaning enrollment projections

• Teaming with all MCPS support departments, school staffs and boosters, building officials, fire marshals, planning and engineering officials from the State, County, and Towns of Christiansburg and Blacksburg

Significant Accomplishments

• CIP Project – New Auburn Middle School • Capital Maintenance and Roof Projects – CHS, FBE, CPS,

BEL, SMS, EMHS, MBE, GLE, KES • Christiansburg Area Projects Feasibility Study • Safe Routes to School Projects – HAE, MBE • Montgomery Central establishment • Closure and turnover or demolition of numerous former

school facilities

Six Year Plan Goals we support

• Student Achievement • Leadership, Operations, and Communication Proactive long range planning Capital Improvements Program Capital Maintenance Projects List Feasibility Study

• Safety and Wellness Security Improvements Safe routes to school projects Custodial, maintenance and repair program

Challenges

• Technological complexity and profusion of new systems

• Maintaining Equity of older facilities with newer facilities

• Inflation of utility rates, materials, supplies, and maintenance services

Challenges

• Inflation Example item 14/15 15/16 trash can liners – 60x16x22 200/box $15.72/box $16.80/box liquid hand soap, 800mil refill $1.61 each $1.74 each Ice melt, 50 lb bag $5.09 each $5.38 each

The next year’s average cost was 9.22 cents per KWh, +4.2% Source: U.S. Energy Information Administration

Challenges

• Inflation Example item 14/15 15/16 trash can liners – 60x16x22 200/box $15.72/box $16.80/box liquid hand soap, 800mil refill $1.61 each $1.74 each Ice melt, 50 lb bag $5.09 each $5.38 each

• Larger, more technically sophisticated facilities portfolio now 2.25 million sf, with “smart building” controls e.g. Suppression and alarm systems AHS, AMS, BHS

Request

Program Enhancements and Targeted Restorations Maintenance of Effort for Necessary Infrastructures

Inflation for Utilities at 3%

$98,344

Restore Budget for Supplies and Materials $375,000

SCHOOL NUTRITION pgs. 118-120

1. Federal Programs Administered 2. Staffing Information 3. Financial Data 4. Goals 5. Challenges 6. Fiscal Overview 7. Summary

SCHOOL NUTRITION 1. Federal Programs Administered

• National School Lunch Program (NSLP) & School Breakfast Program (SBP) Meals Served Per Day ∘ 6,000 Lunches ∘ 1,500 Breakfasts

• Demographics – Free & Reduced Eligibilities 30.01% Free – Meal Eligible 6.2% Reduced Price – Meal Eligible

• Production and Service Sites 19 Schools 1 Alternative Education Facility

SCHOOL NUTRITION

63.79% Full Price

30.01% Free

6.20% Reduced-Price

SY 2015-16 Meal Eligibility Percentages

SCHOOL NUTRITION 2. Staffing

• SNP Central Office Support Staff Administrative Assistant Inventory Specialist Dietitian Manager of Operations Supervisor

• SNP In-School Staff • 21 Managers • 76 Production Staff • 15 Substitutes

SCHOOL NUTRITION 3. Financial Data

$2,242,698 Federal Funding

$2,727,281 Local Funding

$56,000 State Funding

SY 2016-17 Estimated Revenue

$256,559 Non-Food

SY 2016-17 Estimated Expenditures

$2,032,521 Food Supplies

$2,046,522 Salary & Wages

$693,690 Benefits

3. Financial Data SCHOOL NUTRITION

SCHOOL NUTRITION 4. Goals: Sustain and expand community partnerships that support division programs.

• After School Enrichment Programs • New River Community Action, Inc. Head Start Programs • Virginia Preschool Initiative (VPI) • Montgomery County Jail • Montgomery County Detention Center

Goals: Safety and Wellness • Employment of 2 Registered Dietitians • Implementation of the “Healthy Hunger-free Kids Act of 2010” • Implementation of the USDA “Smart Snacks in School” regulations • State Certification of HHFKA school lunch and breakfast menus

SCHOOL NUTRITION 5. Challenges

• Maintaining a Balanced Budget • Eligibility & Meal Participation

31.66%

31.40%

31.20%

30.01%

7.02%

6.35%

6.66%

6.20%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

2012-13

2013-14

2014-15

2015-16

Free & Reduced-Price Meal Trends

ReducedFree

2012-13 2013-14* 2014-15 2015-16Free 210316 176374 195210 177425Reduced 45168 35555 35086 31317Full-Priced 218890 177567 161820 141979

0

50000

100000

150000

200000

250000

Meal Participation by Year (August – December)

Free

Reduced

Full-Priced

*SY 2013-14 September - December

SCHOOL NUTRITION 5. Challenges

• Maintaining a Balanced Budget • Eligibility & Meal Participation • Alternative Income Sources (a la Carte) • Increase Employee Benefits Costs

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2012-13 2013-14 2014-15 2015-16 2016-17

Labor & Benefits by Year

Labor & Benefits

REVENUE BUDGET OVERVIEW

FY 2016-2017

Where have we been? Where are we now?

Revenue by Category for the Current Year and 10 Years Prior

Projected Revenue for FY 2016-2017 Budget How much? From Where?

Projected State Revenue $53,287,896

Federal Revenue

$4,635,404

County Revenue $44,436,833

Other Revenue

$796,268

Total Revenue $103,156,401

Projected Revenue from Superintendent's Proposed Budget

Projected State Revenue $53,287,896

(Total Increase - $2,307,277)

Standards of Quality

Funds Increase

$2,214,593

Incentive Based Funds

Increase $20,509

Categorical Funds

Increase $49,958

Lottery Funds

Increase $22,217

Projected Revenue from Governor’s Proposed Budget The Governor’s Proposed budget was released on December 17, 2015. The following are the highlights from his budget.

Incentive Revenue in the Governor’s Proposed Budget

Restore Math Teacher at BHS $66,700

Incentive Funds Received from the State for a SOQ Funded Position

$(39,000)

Savings if Position Removed from Proposed Budget

$27,700

Example: How incentive funds affect the budget.

Projected Federal Revenue $4,635,404 (Increase of $414,654)

Other (Local) Revenue

Expenditures

Revenues

County Revenue

Upcoming Meetings

• School Board Meeting February 2, 2016 (Approval of Initial Budget Request to Submit to BOS)

• Special Meeting April 21, 2016 (Budget Workshop – Adopt for Public Meeting)

• Special Meeting April 26, 2016 (Public Hearing)

• School Board Meeting May 3, 2016 (Approve Final Budget for FY 2016-17)