1. Roanoke County Public Schools 2019-2020 Budget
Budget Work Session
Compensation, Benefits, Revenue Update
February 28, 2019
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

2. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Agenda
Investment In Our People
Compensation
Benefits
Health Insurance Scenario
Health Insurance Comparison
Health Insurance
Dental Insurance
Consideration of Full-Time Health Benefits for Part-Time Employees
Revenue Updates
General Assembly Revenue
Draft Revenue
Draft Revenue Per Pupil
Next Steps
Questions and Comments
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

3. Investment In Our People
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

4. Investment in Our People
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

5. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

6. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
2017
June 2016 Compensation Study implemented
2018
1-Step increase
2019
1-Step increase
1% Teacher scale shift
1% Stipend for employees at the top of the scale
Athletic supplements updated
Academic supplements updated
Substitute rates updated
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

7. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
2020 Final General Assembly Compensation Supplement
3% Compensation Supplement effective 7/1/19
2% Compensation Supplement effective 9/1/19
Funded SOQ instructional and support positions
What this means for RCPS
7/1/18 average raise 2.37%
7/1/19 required raise 2.63%
Total biennium raise 5.00%
Quick Math:
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

8. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
It’s Compensation Study Time Again!
Ensure internal equity
Ensure market comparability
Review hard-to-fill & other positions
Administrative Assistants
Bus Drivers
Custodians
Instructional Assistants
Nutrition workers
Tradesmen
Implement Adjustments for 2021 Budget
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

9. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

10. Health Insurance Scenario
Why Fund Salary Increases over Health Insurance?
Let’s Take a Look at an Example
Provides more lifetime savings to employee.
Salaries affect all employees, whereas health insurance benefits only affect those that choose it.
Employer philosophy that employees participate in their own health care costs.
Scenario
11-Year Teacher with BA in 2019
Employee-only HRA in ($61.10/month)
Works until retirement at 55
Lives until 85
1-step compensation increase
2.5% health trend increase
Option 1 – Annual changes
Option 2 – Biennial changes
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

11. Health Insurance Scenario
Employee savings from a steady annual compensation increase is higher than a steady insurance premium increase.
Employee receives a higher VRS monthly payout, which is based on the highest 3 or 5 years of salary.
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

12. Health Insurance Comparison
2019 Health Premiums of our Neighbors – Employee-Only
The Rate is the Monthly Premium Paid by the Employee
The HRA or HSA is an additional Employer Provided Benefit
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

13. Health Insurance Comparison
2019 Health Premiums of our Neighbors – Employee-Only
The Rate is the Monthly Premium Paid by the Employee
The HRA or HSA is an additional Employer Provided Benefit
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

14. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Health Insurance
2020 Health Insurance RFP
Joint RFP With County and Jails
Anthem will continue
Consideration of additional plan options
$512,301 Employer Increase
$169,341 Employee Increase
2020 Rate Analysis
2.4% base premium increase
10% base premium increase for non-wellness
HRA still $500/$1000
EEWP Retirees & Part-Time Employee Benefit of $2,500
Employee share of the premium does not change from last year
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

15. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Health Insurance
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

16. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Dental Insurance
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

17. Consideration of Full-Time Health Benefits for Part-Time Employees
Assumptions
All eligible part-time employees would choose single health care coverage and participate in wellness.
Other elections would cost RCPS between $ and $4, more per employee annually.
Other Unknown Costs
Insurance claims would go up.
Utilization of the health clinic may exceed current capacity.
Employees currently Medicare- eligible and receiving a lower rate through an exchange could pay more for insurance.
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

18. Consideration of Full-Time Health Benefits for Part-Time Employees
When bus-drivers working less than 30- hours a week changed to part-time status, additional salary was provided to allow them to purchase their own health insurance.
Part-time employees currently get $2,500 applied towards their health insurance.
As such, part-time bus drivers are currently on scale 12, while full-time bus drivers and lot attendants are on scale 7.
If part-time employees will be provided benefits, consideration of moving full- time bus drivers and lot attendants to scale 12 for an additional cost of $124,585.
Another topic for the compensation study.
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

19. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

20. General Assembly Revenue
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

21. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Draft Revenue
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

22. Draft Revenue Per Pupil
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

23. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Next Steps
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

24. 2019-2020 Budget Work Session - Compensation, Benefits, Revenue Update
Remaining Timeline
January
1/10 Work Session
Enrollment, Governor’s Budget, Requests
1/24 Work Session
Replacement Funds: CIP, CMP, Bus, & Technology
Position Review
February
General Assembly Crossover
2/14 Work Session
Other Funds Review
2/23 General Assembly Adjourns (tentative)
2/28 Work Session
Compensation, Benefits (Medical RFP)
March
3/12 Work Session
Revenue Update
3/14 Work session
Superintendent’s Proposed Budget
3/28 ADOPT BUDGET
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update

25. Questions and Comments
2/28/19
Budget Work Session - Compensation, Benefits, Revenue Update