1. FY 2015 Proposed Budget Development 1 Dr. Patrick K. Murphy December 11, 2013

2.  Arlington County funds almost 80% of APS’ budget  Overall revenue picture for APS reflects the county’s revenue picture 2

3.  Federal Funding ◦ Steady decrease over past 4 years  Almost $4.4 million or 26% since FY 2011  State Aid ◦ New biennial budget ◦ VRS contribution rate increase ◦ Additional state mandates 3

4.  Employee Compensation ◦ VRS contribution rate will increase by nearly 25% or $7.5 million ◦ An additional $1.0 million for increased health care costs  $11.2 million to fund enrollment growth Before funding compensation or additional instructional time, APS must first cover these additional costs of $19.7 million. 4

5. 5 Class Size by Grade (2013-14)

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7.  Growing Enrollment ◦ 26% increase since FY 2008 ◦ 3.6% increase projected for FY15  837 additional students  Capacity Issues ◦ Elementary at 105.6% and climbing ◦ Overall projected at 102.8% for FY15 ◦ As new building space comes on board, additional operational costs are incurred 7

8.  Cost of Enrollment ◦ School staffing ◦ Instructional materials and technology ◦ Relocatables ◦ Average annual cost past 4 years = $9.5 million ◦ Projected cost for FY15 = $11.2 million 8

9.  Increased instructional time ◦ Eliminate early release Wednesdays  VRS contribution rate increase ◦ Almost 24% increase in rate requiring additional $7.5 million  Remain competitive and able to attract and retain high quality staff 9

10.  Compensation ◦ Examine options to reduce the cost of benefits  Program adjustments and/or changes in service delivery models  Consider selected increases in class size 10

11.  Set aside funding from FY 2013 closeout to carry forward to FY 2015 to fund one-time costs  Request additional funding 11

12.  February 27 Superintendent’s Proposed FY 2015 Budget  March 20 Public Hearing on the Superintendent’s Proposed FY 2015 Budget  April 3 School Board’s Proposed FY 2015 Budget

13.  April 24 Public Hearing on the School Board’s Proposed FY 2015 Budget  May 8 School Board’s Adopted FY 2015 Budget For a complete calendar, go to: www.apsva.us/budget www.apsva.us/budget 13

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15. FY 2015 Proposed Budget Development 15 Dr. Patrick K. Murphy December 11, 2013