norfolk public schools · k-3 primary class size reduction program changes: • incentive funds to...

Norfolk Public Schools

Rhonda R. IngramExecutive Director of Budget & FinanceSchool Board Work Session – January 8, 2020

Preliminary Budget Planning OverviewFiscal Year 2020-2021

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Topics for Discussion

•Fiscal Year 2019-2020 All Funds

•FY 2019-2020 Operating Funds•Revenue Sources•Expenditures by Major Categories

•K-12 Enrollment Trends

•The Governor’s Budget

•The City’s Revenue Sharing Formula2

Topics for Discussion

•The Budget Process•Where we are in the process•Next Steps

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Fiscal Year 2019-2020 All Funds

$336,161,810

$40,000,000

$20,000,000 $4,000,000

FY 2019-2020 Summary of Appropriation$400,161,810

Operating Funds Grants and Special ProgramsSchool Nutrition Program Capital Improvement Projects

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Fiscal Year 2019-2020 Operating Fund Revenue

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Revenue Source% of

Budget

State 197,478,663$ 58.7%City 129,823,854 38.6%Federal 5,653,293 1.7%Other Local & Miscellaneous 3,206,000 1.0%Total Operating Fund Revenue 336,161,810$ 100.0%Note: Based on projected March ADM of 27,234

Fiscal Year 2019-2020 Operating Expenditures

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Major Category Budget % of Budget

Instructional Support 250,445,722$ 74.5%Admin, Attendance & Health 19,762,840 5.9%Pupil Transportation 14,044,327 4.2%Operations & Maintenance 37,231,501 11.1%Facilities 5,279,670 1.6%Technology 9,397,750 2.8%Total 336,161,810$ 100.0%Note: Totals may not add due to rounding

Fiscal Year 2019-2020 Operating Expenditures

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Expenditure Category Budget % of Budget

Wages and Salaries 204,380,499$ 60.8%Employee Benefits 82,345,148 24.5%Total Compensation 286,725,647 85.3%Non-Personnel 49,436,163 14.7%Total 336,161,810$ 100.0%

K-12 Enrollment TrendsFY 2009 – FY 2020

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Source: Virginia Department of Education and NPS Department of Assessment, Research and Accountability

Governor Northam’s Introduced 2020-2022 Biennial Budget

• Governor Northam presented his 2020-2022 biennial budget on Tuesday, December 17, 2019 before a joint session of the Senate Finance, House Appropriations, and House Finance committees.

• The Governor’s Introduced 2020-2022 Biennial Budget covers:• Fiscal Year 2021 (July 1, 2020 – June 30, 2021)• Fiscal Year 2022 (July 1, 2021 – June 30, 2022)

• The introduced budget bill containing Governor Northam’s budget recommendations is House Bill 30/Senate Bill 30.

• The 2020 General Assembly session is scheduled to convene on January 8, 2020.

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Governor Northam’s Introduced 2020-2022 Biennial Budget Continued

• Key Recommendations Impacting Public Education:

• Technical Updates to existing Direct Aid Programs (SOQ, Incentive, Categorical and Lottery-funded accounts for salary, prevailing support costs, enrollment projections, and other technical updates and various proposed policy changes.)

• Recomputed Composite Indices for the 2020-2022 biennium

• Updated Sales Tax and Lottery revenue estimates dedicated to public education

• Revisions to the employer rates for fringe benefits paid to VRS

• State share of funding a 3.0% Compensation Supplement for funded SOQ instructional and support positions effective July 1, 2021 (fiscal year 2022)

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Governor Northam’s Introduced 2020-2022 Biennial Budget Continued

• Key Recommendations Impacting Public Education Cont.

• Additional state funding:• for Virginia Preschool Initiative and early childhood education in

FY 2021 and 2022;

• for school counselors in FY 2021 and 2022;

• to support students who are educationally at-risk in FY 2021 and 2022

• to support English Language Learners in FY 2021 and 2022;

• to help eliminate the reduced price breakfast and lunch category in FY 2021 and 2022; and

• for a new “Games of Skill” per-pupil funding allocation

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Governor’s Budget Impact on NPS for FY 2021

• Composite Index Update• From .2958 to .3059

• Sales Tax Projection• Computed by Department of Taxation• Includes both the 1% portion and the 1/8% portion (based on

school-age population)• Increase in sales tax projection reduces Basic Aid payments

• VRS Retirement Rate Changes for state funding• Employer contribution increases from 15.68% to 16.62%• Retiree Health Credit increases from 1.20% to 1.21%

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Governor’s Budget Impact on NPS for FY 2021 Continued

• Compensation Increase• None in FY 2021

• Increase Funding in the SOQ for School Counselors

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Current FY 2020

Proposed FY 2021

Proposed FY 2022

Elementary 455-to-1 375-to-1 250-to-1Middle 370-to-1 325-to-1 250-to-1High 325-to-1 300-to-1 250-to-1

Student to School Counselor Staffing Ratios


• Increase Staffing Ratios for English as a Second Language• From 17 per 1,000 students to 20 per 1,000 students

• Provide Additional Funding for At-Risk Add-on• Increases the Basic Aid per pupil add-on range from a maximum of

16% to 23% in FY 2021• A portion of the increase in funding is offset by a corresponding

decrease in the Supplemental Lottery Per Pupil Amount

• Decrease Funding for the Supplemental Lottery • Decreases the per pupil amount from $366.01 to $314.62• The decrease is to partially fund the increase in At-Risk Add-on

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• Games of Skills Per Pupil Amount

• Proposed new funding account contingent upon the passage of legislation by the 2020 General Assembly

• Permitted to spend funds on both recurring and non-recurring expenditures

• No local match required

• Proposed state funding at $71.29 per pupil

• VDOE is authorized to reduce payments proportionately to account for shortfalls in Games of Skill revenue

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• Funding Actions Related to the Virginia Preschool Initiative:

• Assumes a non-participation rate of 20% which decreases overall state funding but does not change the division-level allocation of student slots or projected entitlement amounts;

• Projected full-time preschool slots increases from 1,248 to 1,312;

• Increases the per pupil amount from $6,326 to $6,959;

• Increases the per pupil amount for the Virginia Preschool Initiative Plus (VPI+) program from $6,326 to $6,959;

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• Funding Actions Related to the Virginia Preschool Initiative Continued:

• Mixed-Delivery Add-on Grant provides funding for a new pre-kindergarten initiative to incentivize mixed-delivery services through private providers:

• Grant will be $2,500 per child• Localities who wish to participate must apply in their May 15th

applications and indicate number of slots• Pilot Program to Serve At-Risk Three-Year Olds provides funding

via a competitive grant that serves at-risk three-year olds who are Virginia residents and unserved by Head Start:

• School divisions must apply for grant as part of the May 15th VPI application

• Grants awarded will be equivalent to the funded per pupil amount for VPI

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• Funding Actions Related to the Virginia Preschool Initiative Continued: (Unknown impact to NPS at this time)

• Additional Funding for Children on VPI Waitlist – VDOE to establish guidelines

• Expansion of Public-Private Delivery of Preschool Programs to support public-private delivery of pre-kindergarten services for at least 1,000 at-risk three-and four-year olds each year – VDOE will establish measurable academic standards for student achievement and success so that students will be ready to enter kindergarten

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• Funding Actions Related to the Virginia Preschool Initiative Continued: (Unknown impact to NPS at this time)

• Increase VPI Class Sizes – to facilitate the use of allocated slots• For VPI classrooms that exceed the benchmarks set by the Board of

Education, classrooms may be staffed:• At one teacher per ten students or less, or• At one teacher and one full-time teacher’s aide per 20 students or less, with a

maximum class size of 20 students

• Language Directing Rebenchmarking of the VPI Per Pupil Amount• VDOE required to develop a plan to biennially rebenchmark the funded

per pupil amount for the VPI program• Effective with the introduced 2022-2024 biennial budget to the 2022

General Assembly

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• K-3 Primary Class Size Reduction Program Changes:

• Incentive funds to reduce class sizes in kindergarten through grade three (K-3) below SOQ staffing requirements of 24-to-1based on at-risk students as determined by the number of free lunch students. Schools with a free lunch percentage less than 30% are not eligible for this funding.

• 29 of our 33 Elementary Schools are eligible for funding

• School Changes:• Acad for Disc @ Lakewood no longer qualifies (from 22 to 24)• Ocean View max class size increased from 22 to 23• Bay View max class size decreased from 24 to 23• Lake Taylor School max class size 20

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• K-3 Primary Class Size Reduction Program Changes Cont.:

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Number of Schools

3-Yr Avg Free Lunch % (NPS*)

Required School Pupil Tchr Ratio

Individual Max Class Size

Funded Per Pupil Amount

4 < 30% < 30% < 30% -$ 3 30% and < 40% 19 24 684 4 > 40% and < 55% 18 23 880 6 > 55% and < 61% 17 22 1,109 4 > 61% and < 70% 16 21 1,363 3 > 70% and < 80% 15 20 1,657 9 > 80% thru 100% 14 19 2,001

33 Total Schools* These are NPS' 3-year average (October 2016, 2017 and 2018) of free lunch eligibility used in Governor's Budget.


• Revenue Impact• Contingent upon projected March 31st ADM• Contingent upon action of the 2020 General Assembly• Increase in Local Composite Index equals reduction in state

funding

• Expenditure Impact – Additional costs associated with:• Change in employer rates for contributions to VRS• Change in SOQ school counselor staffing• Change in staffing due to enrollment projections • Support for students who are educationally at-risk• Support for English Language Learners• Changes in VPI

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Next Steps in State’s Budget Cycle

• 2020 General Assembly Session convenes January 8, 2020

• Senate Finance Committee Budget

• House Appropriations Budget

• 2020 General Assembly’s Final Budget

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City Revenue Sharing Formula

• In May 2018, City Council passed a resolution adopting a policy to govern the allocation of local revenue to NPS to be implemented with the FY 2020 budget – the Local Revenue Allocation Policy.

•NPS to receive a fixed 29.55% share of certain non-dedicated local tax revenue

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City Revenue Sharing Formula Continued

•Policy also establishes processes to:• Give NPS estimates of funding for the upcoming

fiscal year in September, February and March• Communicate and address revenue shortfalls• Provide true-up for excess revenue over estimate• For NPS to request re-appropriation of reversion

funds• For NPS to request increases in local contribution• Revise the Local Revenue Allocation Policy

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City Revenue Sharing Formula Impact on NPS for FY 2021 Budget

• Initial Estimate (received in November 2019) of the City’s Local Contribution to Norfolk Public Schools in accordance with the Local Revenue Allocation Policy adopted May 22, 2018 is an increase over FY 2020 of:

$2.0 Million

Note: This amount does not include funds for Construction, Technology, and Infrastructure (CTI).

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Fiscal Year 2020-2021 Preliminary Budget Where are we in the Process?

•Data Gathering• Re-basing the current FY 2019-2020 Budget• Departmental Requests• School Board Priorities• Superintendent’s Priorities• Held first Public Hearing for citizens’ input• Enrollment Projections• Estimated Health Insurance premium increase• Governor’s Proposed Biennial Budget• House & Senate Proposed Amendments to Governor’s

Budget

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Fiscal Year 2020-2021 Preliminary BudgetNext Steps

• January 2020 – NPS Leadership Team budget discussions

•February 2020 – Superintendent’s Proposed Budget presented to School Board

•March 2020• School Board Budget Work Sessions • Public Hearing – March 4th

• Approval of School Board’s Proposed Budget

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Fiscal Year 2020-2021 Preliminary Budget Next Steps

•April 1, 2020 – School Board’s Proposed Budget submitted to City Council

•May 2020• City Council appropriates funding for the School

Board’s Fiscal Year 2020-2021 Budget• School Board adoption of School Board’s FY 2020-

2021 Budget

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Norfolk Public SchoolsPreliminary Budget Planning Overview

Fiscal Year 2020-2021

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