2. School Board Approved Budget: FY 2012-13 Submitted to Board of Supervisors for Approval Rockingham County Public Schools March 28, 2012 Slide 2

3. 2012-2013 RCPS Budget Timeline Oct, 2011Budget process begun Jan 10, 2012Public hearing at CRES Jan 23, 2012Board reviewed all expenditure requests Feb 13, 2012Board reviewed Governors budget Feb 27, 2012Governor, Senate & House budgets Mar 12, 2012Budget Priorities Discussed Mar 21, 2012Superintendents Recommended Budget Mar 26, 2012 Public Hearing at DLC Mar 28, 2012Board Approved Budget Slide 3

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6. Expenditure Highlights Rate Increases Set by State$3,624,000 o VRS (unfunded retirement) o Group Life o Retiree Health Care Credit Employee Portion of Group Life$447,537 o May be Being picked up by RCPS o Contingent upon final state revenue Slide 6

7. Expenditure Highlights (continued) VRS 5 for 5 Shift (Plan 1 Employees) $578,930 o From VRS line to salary line o Increased expense to RCPS VRS Hold Harmless (Plan 1 Employees) $485,260 o Increased employee FICA on 5% adjustment in salary Slide 7

8. Expenditure Highlights (continued) Health Insurance*$900,000 $650,000 o October 1 annual renewal o Anticipated 5% Anthem Renewal increase o We will commit our efforts to keep any increases to a minimum; employer and employee expected to experience an increased cost next year *Change from March 21, 2012 request Slide 8

9. Expenditure Highlights (continued) Instructional Needs$241,000 o SPED Tuition for Regional Program Textbooks (Fund 203)*$600,000 o (Consumables K-12, 3rd Grade Math)$550,000 * Change from March 21, 2012 request Slide 9

10. Expenditure Highlights (continued) New Personnel* o School Resource Officer$46,000 o Contingent upon final state budget o Elem/Middle/High FTEs due$354,000 to changes in course offerings and enrollment shifts Total* $400,000 $0 *Change from March 21, 2012 request Slide 10

11. Expenditure Highlights (continued) 1.5% Average Raise* o School Board may elect to fix certain job categories in need of additional compensation Total Cost*$1,215,000 $0 *Change from March 21, 2012 request Slide 11

12. Expenditure Reductions Supplemental Retirement Program$200,000 Transportation$50,000 Maintenance$50,000 Food Service$96,000 o Transfer of Funding Source for Food Service Expense Technology (2 positions - attrition)$100,000 Additional Reductions TBD$140,000 TOTAL$636,000 Slide 12

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15. Revenue Highlights – State Based on House Version No General Assembly Approved Budget Overall State Funding Down$153,459 Contributing Factors: o Decreased ADM (11,350 -> 11,203) o Increased Composite Index (34.89 -> 36.75) Slide 15

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17. Revenue Highlights - Federal Title II Part A Decrease$168,000 Title II Part D Eliminated$12,500 Federal Jobs Bill Revenue$2,526,000 Slide 17

18. Revenue Highlights - Local FY 2013 Allocation Request*$52,551,609 o Operating Fund$50,686,609 Increase for operating fund*$7,328,679 $5,463,679 Textbook Fund – 203 Request*$600,000 $550,000 Overall Request*$7,928,679 $6,013,679 *Change from March 21, 2012 request Slide 18

19. The Good News in this Proposed Budget Provides the 5% adjustment upfront allowing employees to pay the required 5% VRS (Plan 1 employees) Increases the employee's contracted salary 5%, a future investment (Plan 1 employees) Ensures the employee is "held harmless" with no costs assumed by the employee for the VRS adjustment (Group Life to be determined) Provides a 1.5% "average" salary increase for most contracted employees Keeps support for instruction and the classroom a priority Slide 19

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24. Rockingham County Public Schools-- Where Excellence is Commonplace Slide 24