Proposed School Budget Overview and Revenue Impact Analysis

FY2019-2020 Superintendent s Proposed Budget Dr. Kevin Newman Superintendent February 12, 2019

FY 2018-2019 Proposed Budget Presentation Overview State and Local Funding History and Student Per Pupil Costs Division Student Enrollment & Demographic Trends FY 2019-2020 Proposed Budget Upcoming Budget Meetings 2

State Revenue is Slightly Rising FY2019 State Revenue Increase 1.82% FY2020 State Revenue Increase 2.26% 3 Source: Governor s FY19-FY20 Budget

Revenue Impact Additional State Revenue 1,191,485 $ Compensation Increase to Fulfill State Requirement 1,397,810 $ Difference $ (206,325) Source: Governor s FY19-FY20 Budget 4 MCPS Step Increase for teachers & support staff and 2% of mid-point for administration.

2018 Session Introduced Budget State Per Pupil K-12 Direct Aid (All Funds) Nominal and Inflation-Adjusted (CPI $2005) $6,000 State Funding continues to lag behind inflation (36%) and does not meet true needs. $5,665 $5,616 $5,459 $5,274 $5,271 $5,075 $5,028 $5,000 $4,966 $4,868 $5,000 $4,862 $4,804 $4,692 $4,562 $4,546 $4,513 $4,481 $4,404 $4,382 $4,215 $4,238 $4,204 $4,168 $4,134 $4,084 $4,057 $4,048 $3,958 $3,942 $3,896 $4,000 $3,810 $3,000 $2,000 $1,000 5 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

City Per Pupil Funding - Inflation Adjusted City Funding is 33.2% below the rate of inflation since 2006. $7,893 $7,804 $8,000 $7,804 $7,804 $7,459 $7,617 $7,366 $7,239 $7,357 $7,000 $7,080 $7,135 $6,870 $6,990 $6,265 $6,776 $6,667 $6,691 $5,858 $6,384 $6,443 $6,232 $6,125 $6,048 $6,139 $6,000 $5,936 $5,977 $5,885 $5,930 $5,590 $5,000 $4,000 $3,000 $2,000 $1,000 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* City Per Pupil Inflation Adjusted 6

MCPS Per Student Funding School Year Ending June 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* Percent Difference FY06 to FY19 City State Per Pupil $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Sales Tax Per Pupil $ 1,064 $ 1,072 $ $ $ $ $ $ $ $ $ $ $ 1,050 $ 1,103 $ Federal Per Pupil $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total Per Pupil 11,301 $ 12,636 $ 12,749 $ 13,041 $ 11,970 $ 11,706 $ 11,972 $ 12,519 $ 12,729 $ 13,301 $ 13,036 $ 13,154 $ 13,126 $ 13,483 $ 13,955 $ Inflation Adjusted 11,301 $ 11,623 $ 12,069 $ 12,026 $ 12,223 $ 12,609 $ 12,870 $ 13,059 $ 13,271 $ 13,286 $ 13,454 $ 13,741 $ 14,076 $ 14,076 $ Per Pupil $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6,265 6,870 7,893 7,080 6,232 5,885 5,936 5,977 6,139 6,384 6,125 6,048 5,930 5,590 5,858 3,556 4,171 3,243 4,321 3,770 4,037 4,234 4,850 4,910 5,178 5,188 5,316 5,498 5,960 6,114 989 491 531 541 679 1,137 933 942 752 719 751 735 804 761 883 880 961 831 851 860 940 961 988 988 986 937 -6.50% 71.93% 11.53% 79.23% 23.48% 24.56% 7 Source: VDOE Annual School Reports FY19 & FY20 data is projected

MCPS Per Pupil Funding By Source Per Pupil Funding By Source $16,000 Total Per Pupil Funding relatively flat 2015 2019. $13,483 $13,955 $14,000 $12,749 $13,301 $13,126 $13,154 $12,000 $11,301 $10,000 $8,000 $7,893 $6,114 $6,384 $6,265 $6,000 $5,858 $5,188 $4,321 $4,000 $3,556 $2,000 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* City Per Pupil State Per Pupil Sales Tax Per Pupil Federal Per Pupil Total Per Pupil 8 FY19 & FY20 data is projected Source: VDOE Annual School Reports

MCPS Enrollment Trend Elementary Intermediate Middle High Percent Change -0.98% 1.21% 1.36% 3.55% 3.38% -1.99% 1.63% 2.42% 1.05% 4.54% 1.42% -1.54% September 30 (Grades PK-4) (Grades 5-6) (Grades 7-8) (Grades9-12) 2018 3,177 2017 3,262 2016 3,258 2015 3,284 2014 3,072 2013 2,976 2012 3,057 2011 3,022 2010 2,913 2009 2,783 2008 2,679 2007 2,653 2006 2,731 % Change 2006 - 2018 16.33% Division 1,190 1,212 1,176 1,110 1,056 1,040 1,058 1,015 1,011 1,057 984 922 987 1,142 1,096 1,052 1,022 1,014 991 999 1,032 1,010 992 986 949 954 2,186 2,201 2,192 2,159 2,173 2,069 2,106 2,035 2,002 2,032 1,917 1,950 1,903 7,695 7,771 7,678 7,575 7,315 7,076 7,220 7,104 6,936 6,864 6,566 6,474 6,575 20.57% 19.71% 14.87% 17.03% 9

Budget Pressures Free & Reduced Lunch Percentage 70.00% 66.00% 58.85% 60.00% 46.92% 50.00% 40.00% High percentage of Economically Disadvantaged & ELL students requires additional supports to achieve the same results as other homogenous school divisions. 30.00% 23.46% 20.00% 10.00% 0.00% 2005/20062006/20072007/20082008/20092009/20102010/20112011/20122012/20132013/20142014/20152015/2016 2016/17 2017/18 Dec 2018 Economically Disadvantaged Special Education English Language Learners (ELL) 66% 12% 49% 10 Source: VDOE Statistical Reports

Summary Per Pupil Funding Economically Disadvantaged students make-up 2/3 of the student population.Ell Per Pupil Funding By Source $16,000 70% MCPS has the highest percentage of ELL students in the State. $13,955 $14,000 $13,301 $13,483 60% $13,126 $13,036 $13,154 $12,749 $12,000 $11,301 50% $10,000 40% $8,000 $7,893 $6,384 $6,114 30% $6,265 $6,000 $5,858 20% $5,178 $4,000 $3,556 $3,243 10% $2,000 $- 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* Sales Tax Per Pupil Federal Per Pupil Total Per Pupil City Per Pupil State Per Pupil Poverty ELL 11 ELL = English Language Learners

Community Priority Budget Issues Respondents were asked to indicate their support for changing the service levels for services that are provided using general tax revenues. Education and police services were the two services that received the highest number of responses indicating support for an increase in services. Corrections and libraries received the lowest number of responses supporting an increase in services. Corrections and community appearance received the highest number of responses indicating that there should be no change in service. Libraries and Development services received the highest percentage of responses indicating a support for reductions. Source: City of Manassas 2018 Community Survey: Findings Report 12

Community Investment Priority Overall Priorities for the City by Major Category. This analysis reviewed the importance of and satisfaction with major categories of City services. This analysis was conducted to help set the overall priorities for the City. Based on the results of this analysis, the major services that are recommended as the top priorities for investment over the next two years in order to raise the City s overall satisfaction rating are listed below: Flow of traffic and ease of getting around the City Quality of public education Quality of economic development Source: City of Manassas 2018 Community Survey: Findings Report 13

Duty of the Superintendent Section 22.1-92 Code of Virginia It shall be the duty of each division superintendent to prepare, with the approval of the school board, and submit to the governing body or bodies appropriating funds for the school division, by the date specified in 15.2-2503, the estimate of the amount of money deemed to be needed during the next fiscal year for the support of the public schools of the school division. The estimate shall set up the amount of money deemed to be needed for each major classification prescribed by the Board of Education and such other headings or items as may be necessary. 14

FY 2019-2020 Proposed Budget School Operating Fund Amount Description Explanation Requests are submitted by departments/schools. $110,332,822 School / Dept Request Requests were reviewed with Principals, Executive Team and Superintendent to determine the true needs of the division. Superintendent/Executive Team Determination of Need $108,295,910 Superintendent & Executive Team review all requests and determine program priority within projected funding. Superintendent Request Based on Projected Funding $104,363,420 Based on School Board approved adjustment & final approved funding. School Board Approved/Adopted TBD 15

FY2019-2020 Budget Proposal What s in the Budget? Compensation increase for employees on their respective scales meets Governor s Proposal Projected Health Insurance Rate Increase Contribution to dedicated New Dean School fund balance Instructional/support staffing changes to meet evolving student needs Unfunded State Mandates Classroom Instructional Technology Inflationary impacts of goods and services 16

FY2019-2020 Budget Proposal Unfunded Needs Cost of Living Adjustment Full Funding of Dean School Projected Debt Gifted &Talented Program Enhancement Part-Time Employee Health Insurance Contribution Additional English Language Learners (ELL) Teachers Computer Lab Teachers Technology Software Requests Change from 5 Tier Bus Routing to 4 Tiers 17

Five Year 2019/20 Capital Improvement Plan 5 Year Capital Improvement Plan Revised FY 2019 FY 2020 FY2021 FY2022 FY2023 FY2024 Total Project Funding Sources City Transfer - Pay As You Go Funds Transferred to/from CIP Fund Balance Transfer to Debt Fund - Dean School Bonds $3,000,000 (606,000) $ (1,500,000) $ $ $894,000 $3,000,000 $ $ $ $3,000,000 $3,000,000 557,000 $ $ 60,847,085 $ $64,404,085 $3,000,000 49,000 $ $ 2,141,000 $ $5,190,000 $3,000,000 $ $ $ $3,000,000 $3,000,000 $ $ $ $3,000,000 $18,000,000 $ (1,500,000) $ 62,988,085 $ $79,488,085 - - - - - - - - - - - - - Total Project Expenditures Division Wide Division Wide Technology Upgrades Division Wide School Bus Replacements Division Wide School Bus Additions Division Wide Classroom Trailers Division Wide - Restroom Refurbishment Central Office Central Office Architectural & Engineering Central Office Replacement Osbourn Cooling Tower & Chiller Replacement Hallway Flooring Replacement Restroom Refurbishment Osbourn - Parking Lot Improvements Metz Metz - Classroom Flooring Replacement Mayfield Roof Replacement Dean New Dean School Baldwin Haydon Parking Lot Round Round - Phased BAS/HVAC Replacement Weems Weems- Parking Lot Seal Coat & Crack Repair Partial Maintenance Roof Interior Paint Total MCPS Projects $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 894,000 $ 894,000 175,000 599,000 120,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,200,000 $ 2,200,000 $ $ $ $ $ $3,000,000 800,000 175,000 500,000 125,000 1,057,000 $ 250,000 $ 486,000 $ 121,000 $ 200,000 $ $ 500,000 $ 500,000 $ $ $ $ 950,000 $ $200,000 $500,000 $ 250,000 $ $ 4,240,000 $ $ 4,240,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $5,190,000 1,175,000 $ $200,000 $500,000 125,000 $ 250,000 $ 100,000 $ 1,594,000 $ $ 1,594,000 $ 44,000 $ $ $ 44,000 $ $ $ 825,000 $ $200,000 $500,000 125,000 $ $ $ $ $ $ 1,800,000 $ 1,000,000 $ 500,000 $ 50,000 $ 250,000 $ 275,000 $ 275,000 $ $ $ $ $ $ 100,000 $ 100,000 $ $ $ $ $ $ $ 3,000,000 $ 5,701,000 $ 1,200,000 $ 3,085,000 $ 616,000 $ 700,000 $ 100,000 $ 6,334,000 $ 500,000 $ 5,834,000 $ 1,844,000 $ 1,000,000 $ 500,000 $ 94,000 $ 250,000 $ 275,000 $ 275,000 $ 2,000,000 $ 2,000,000 $ 60,847,085 $ 60,847,085 $ $ 100,000 $ 100,000 $ 2,200,000 $ 2,200,000 $ 187,000 $ 40,000 $ 84,000 $ 63,000 $ 79,488,085 $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ $ $ $ 2,000,000 $ 2,000,000 $ 60,847,085 $ 60,847,085 $ $ $ $ $ $ $ $ $ $ 64,404,085 $ - - - - - - $ $ $ $ $ $ $ $ $ 187,000 $ 40,000 $ 84,000 $ 63,000 $ 3,000,000 $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18

Revenue Assumptions Total All Funds 58,889,475 $ 54,349,350 $ 6,754,872 $ 1,356,650 $ $ 1,500,000 $ 122,850,347 $ CIP Funds 3,000,000 $ $ $ $ $ Debt Service 6,273,514 $ $ $ $ $ 1,500,000 $ 7,773,514 $ Operating Fund 49,615,961 $ 54,349,350 $ 6,754,872 $ 1,356,650 $ $ $ 112,076,833 $ Revenue City State Federal Other Local Bonds Transfer From FY19 CIP - - - - - - - - - - - Total 3,000,000 $ 19

Revenue Assumptions Operating Fund 49,615,961 $ 54,349,350 $ 6,754,872 $ 1,356,650 $ $ $ 112,076,833 $ Food Service Federal Grant School Operating Fund Fund - $ 110,891 $ 2,960,100 $ 3,794,772 $ 847,650 $ - $ - $ 3,918,641 $ 3,794,772 $ Revenue Fund 49,615,961 54,238,459 City State Federal Other Local Bonds Transfer From FY19 CIP $ $ $ $ $ $ 104,363,420 $ - 509,000 - - - - Total 20

FY 2019-2020 School Operating Fund Summary by Location SUMMARY BY LOCATION AMOUNT 82,946,291 4,413,509 5,396,654 4,210,375 2,826,982 1,489,581 1,410,966 1,168,099 1,032,793 318,169 -849,999 PCT. 79.5% 4.2% 5.2% 4.0% 2.7% 1.4% 1.4% 1.1% 1.0% 0.3% -0.8% 100.0% School Base Costs Information Technology Services Student Achievement Transportation Facilities and Maintenance Health & Student Services Human Resources Financial & Purchasing Services Board & Superintendent Services Communications & Public Relations Non-Department TOTAL 104,363,420 21

Operating Fund Expenditures Capital Outlay 211,289 .20% Contingency 350,000 .34% 2019-2020 Total Operating Fund Budget $104,363,420 Materials and Supplies 4,870,427 4.67% Salaries and Wages 62,834,091 60.21% 83.27% Personnel and Benefits Other Charges* 2,842,137 2.72% Fringe Benefits 24,062,749 23.06% Purchased Services 9,192,727 8.8% * Includes utilities, communications, and other misc. costs 22

Public Budget Meetings After Superintendent Proposed Budget School Board Budget Work Sessions: Date February 19 Budget Work Session, 7:00PM March 19 Budget Work Session, 6:00PM April 3 Budget Work Session, 5:30PM Public Hearing on the Proposed Budget March 12 7 p.m., City Hall School Board Approves Budget March 26, 2019 7 p.m., City Hall School Board Presents Approved Budget to Manassas City Council April 3, 2019 - 5:30 p.m., Public Works Conference Room Central Office Board Room Central Office Board Room Public Works Conference Room Location 23

FY2019-2020 Superintendent s Proposed Budget Dr. Kevin Newman Superintendent February 12, 2019