1. MGT Efficiency Review Report Response Process Information that may inform budget development processes

2. Introduction In the fall 2008, our school division contracted with the Virginia Department of Planning and Budget (DPB) to have an efficiency review conducted. MGT of America, Inc. (the consulting group who assisted in the development of our current Strategic Plan) was hired by the DPB to examine all operational areas in the division—division administration, human resources, finance, purchasing, educational service delivery costs, special education, facilities, transportation, technology management, and food service. This process was undertaken to identify best practices as well as opportunities for increased efficiency. As stewards of public funds, it is important that we fully use our available resources and ensure as much funding as possible goes to instruction. The cost to the school division for the review is $30,000, which reflects 25% of the total cost. In exchange for the state subsidy of $90,000, the DPB requires that a school division implement a minimum of 50% of the recommendations in the final report. If the school division chooses not to implement the recommendations, they will be charged an additional 25% of the cost. The details concerning what constitutes adequate implementation are agreed upon between the school division and the DPB. There is a two-year time frame for implementation.

3. Budget Development Process Date Response to Efficiency Review Report Presentation and approval of proposed budget calendar and public comment October 2, 2008 Distribution of budget materials to principals and budget holders October 13 2008 Budget meetings completed with budget holdersOctober 31, 2008 Introduction of Superintendent’s budget and processNovember 6, 2008 Principals introductionNovember 17, 2008 Coordinators introductionNovember 17, 2008 PTO Presidents lunchNovember 24, 2008 Budget update and public commentDecember 4, 2008 Town Hall MeetingDecember 9, 2008 Principals MeetingDecember 10, 2008 Budget Review CommitteeDecember 18, 2008 Budget update and public commentDecember 18, 2008 Budget update and public comment Public release of MGT efficiency review recommendations January 8, 2009 School Board receives the report 2009-2010 Budget Process & Response to MGT Report

4. Budget Development Process Date Response to Efficiency Review Report January 9, 2009 Principals review report summary and provide preliminary feedback. January 9 &12, 2009 Principals meet with school staff for report review and feedback Budget Review Committee meets to discuss MGT recommendations January 13, 2009Budget Review Committee discusses the report Budget Work SessionJanuary 15, 2009 Budget Review Committee finalizes report to the Superintendent January 21, 2009 PTO Council Coffee to discuss the efficiency review report Finalize budget priorities and public commentJanuary 22, 2009 Budget Work Session –School Board and Superintendent set budget priorities January 24, 2009 February 2, 2009TACC discusses staff feedback on report Presentation of Superintendent’s proposed budget and public hearing February 5, 2009 ONGOING THROUGH JANUARY 2011 and BEYOND… School Board and Superintendent discuss report and provide direction to staff regarding implementation of recommendations. Superintendent and staff discuss implications of implementing recommendations, seek parents/community input as appropriate, develop implementation plans including associated costs, and provide periodic updates to the School Board and community. Update of Superintendent’s 2009-2010 budget and public comment February 19, 2009 School Board approval of Superintendent’s 2009- 2010 budget February 26, 2009 Presentation of approved budget to City CouncilMarch 2, 2009 City Council approval of 2009-2010 budgetApril 14, 2009 2009-2010 Budget Process & Response to MGT Report