1. Dr. Yvonne W. Brandon, Superintendent Superintendent P. Andy Hawkins, COO Finance & Operations Lynn Bragga, Director Budget & Financial Reporting Presented January 22, 2013

2. Task Force Recommendations 4/18/2012

3. Task Force Recommendations 4/18/2012 ** This recommendation was from The Robert Bobb Group; the Task Force recommended it be funded, as did the Mayor and City Council.

4. Task Force Recommendations 4/18/2012

5. Task Force Recommendations 4/18/2012 Proposed in FY2014 budget per task force recommendation

6. Factors Impacting the Budget FY2013-2014 Revenue Shortfalls Salary/VRS 1% Implementation Salary Increase 1% No Furlough Days Health Insurance Rate Increase

7. *Projected Revenue Changes FY2012 Fund Bal.=$6M; Anthem=$4.9M; Stimulus=$5.5M FY2013 Fund Bal.=$8.2M; City=$5.6M FY14 funding reflects a $23M or 8.6% decline since FY2009.

8.  Local appropriation o City of Richmond  State support o SOQ Programs o Sales Tax o Lottery Funded Programs  Other o Tuition & fees  Federal support o Impact Aid o Air Force o Army Reserve *Excludes federally restricted funds such as Title I & IDEA The two major funding sources for the general operating budget are the City of Richmond and the Virginia Department of Education. Revenue Sources for the Budget FY2013-2014

9. Revenue SourceFY2013FY2014$ Change% Change Fund Balance$8,229,300$1,400,000- $6,829,300- 83.0% City129,443,724 00.0% Sales Tax23,761,81124,295,383533,5722.2% State84,575,36988,190,4553,615,0864.3% State - Medicaid1,500,000 00.0% Other1,826,5001,004,100 -822,400- 45.0% Federal654,500710,00055,5008.5% Total$249,991,204$246,543,662- $3,447,542- 1.4% Projected Revenue Variance FY2013-2014

10. NET REVENUE CHANGES BY CATEGORY One-Time Funding:- $ 6,829,300 Net State Revenue Gain:4,148,658 Net Other Revenue Loss:-822,400 Net Federal Revenue Gain: 55,500 Net Revenue Change - $ 3,447,542 Net Revenue Changes FY2013-2014

11. What it pays for:  Instruction  Admin, Attendance & Health  Pupil Transportation  Operations, Maintenance & Facilities  Fund Transfers What it does not pay for:  Construction/Capital Projects  School Nutrition Services  State Operated Programs  Federal Programs (Title I, IDEA)  Other Pass-Through Programs (Maggie Walker, MSiC) The pie chart shown below represents functional spending for the general operating budget as defined by the Virginia Department of Education. Expenditures for the Budget FY2013-2014 *Data based on VDOE Chart of Accounts; not based on Standards of Quality (SOQ) Funding Methodology

12. ExpendituresFY2013FY2014$/# Change% Change Salaries & Wages$144,057,872$150,066,586$ 6,008,7144.2% Employee Benefits62,421,93164,448,4692,026,5383.2% Non-Personnel43,511,40143,641,349 129,4480.3% Total $249,991,204$258,156,404$ 8,165,2003.3% FTE’s3,088.8 0.00.0% Note: 83.1% of resources are directed toward salaries & benefits Projected Expenditure Variance FY2013-2014

13. NET EXPENDITURE CHANGES BY CATEGORY 1% Salary Increase with 1% VRS Offset$ 450,000 1% Raise (all employees-includes McDonnell’s SOQ Proposal) 1,800,000 Reinstate Furlough Days (5)3,387,200 Health Care (estimated 10% increase) 2,500,000 EpiPens18,000 Athletic Trainers 10,000 Net Expenditure Change $ 8,165,200 Net Expenditure Changes FY2013-2014

14. Expenditure Changes In Millions

15.  Revenue Decreases$ 3,447,542  Expenditure Increases$ 8,165,200  FY2014 Funding Gap $11,612,742 Projected Budget Summary FY2013-14

16. Proposed Budget Reductions FY2013-14

17. Proposed Budget Reductions FY2013-14

18. Proposed Budget Reductions FY2013-14

19. FTE Changes *Projected – does not include proposed budget reductions **Superintendent’s Proposed Budget Reductions

20.  Governor’s Budget released December 18, 2012  2013 Legislative Session began January 9, 2013 (short session)  Superintendent’s Proposed Budget presented January 22, 2013  Budget work sessions January 28 & 31, 2013  Public Hearing February 4, 2013  Budget work sessions February 4, 7 & 12, 2013  2013 Legislative Session adjourns February 23, 2013  School Board Budget approved February 19, 2013  Approved budget submitted to Mayor’s office February 22, 2013  Mayor’s budget presented to City Council March 6, 2013  City Council’s budget adopted on/before May 31, 2013  School Board Budget adopted June 3, 2013 Proposed Budget Calendar FY2013-2014 Dates & times for work sessions pending approval Dates need to be approved at the formal meeting.