BUDGET WOES CONTINUE

You may have already heard that the school system ended up with more money from the state than was expected.  A collective sigh of relief –   perhaps there won’t be as many cuts to programs?  It is important to know the full story, however, because – while this is good news - it comes with a significant string attached. 

A quick recap: the FCPS school board released its advertised budget in February (a summary is here.). This budget requested an increase in funding (over the current fiscal year’s budget) from the county Board of Supervisors (BOS) in the amount of $81.9 million.  It was felt this increase was necessary in order to help pay for additional students who have entered and will enter the system, as well as to help preserve important programs (elementary music, full day K, freshman sports), to retain important administrators in our schools (assistant principals, psychologists, social workers, among others), to avoid further increases to class sizes, etc. 

The county released their own advertised budget a few weeks later, and the County Executive proposed     actually reducing the transfer to the schools by $16M, effectively creating a nearly $100M gap between the FCPS request and his proposed allocation.  Then all eyes turned to the state to see what VA legislators would do. 

The VA General Assembly concluded its legislative session in mid-March.  Three actions have affected school funding by the state: As was hoped, legislators approved “unfreezing” the Local Composite Index (LCI). This means FCPS will   receive approximately $61.8 million more in funding than in the current fiscal year.  

However, legislators also cut overall state funding for K-12 education, which added up to about $60.7 million LESS for FCPS.  (So those two actions are, essentially, a “wash.”) The General Assembly also made two changes regarding school systems’ required contributions to the VA Retirement System (VRS). FCPS (and all VA school systems) get a 4th quarter “holiday” – they don’t have to pay into VRS in the fourth quarter at all, and the rate was decreased for all VRS contributions for the next two years. Instead of paying in at 13%, the rate was decreased to 8.9%. However, starting in 2013, all school systems will be required to begin a 10-year repayment plan (with interest) to make up for this temporary reduction.  Estimates are that the FCPS budget will take a $55-70M “hit” when that happens in 2013. 

For the short term: these actions combined provided FCPS with approximately $140M more than anticipated from the state for FY2011. 

Given this situation, Dr. Dale then modified his request to the BOS, requesting a “flat transfer” (the same funding as FY2010) rather than the $81.9M increase.   However, the BOS has recently voted on their budget and they concurred with the County Executive’s proposal – the school budget will be decreased by $16.3M.  The $140M “bonus” from the state will thus be divided – $48M will be set aside in anticipation of the future VRS obligation, $16.3M will make up what the BOS took away, and the school board will continue to deliberate on spending priorities over the next few weeks in order to best define how to allocate the remaining money. 

Although the current indication is that certain programs and other items are preserved in this budget cycle, it is important to understand three things: 

(1) that FY2012 is not looking any better – and most school board members agree that our teachers will need a raise (estimated at $50M for a 3% increase), and

(2) that FY2013 is looking horrendous. That is the first year FCPS will need to begin repaying VRS for the holiday and the rate decrease; also,

(3) that a number of other cuts and increased fees (such as AP/IB test fees [$75/test], and fees for VHSL sports participation [$100/sport]) are included in the current proposal.  

Significant changes have also been made that affect our feeder elementary schools.  Those who would like to express how this budget affects your family should be in contact with their school board representatives now.  You may also sign up to speak (starting April 30) at the May 11 and 12 public hearings by going to the School Board website or by calling the School Board Office at 571-423-1075 during normal business hours [8 a.m. - 4:30 p.m.].  The date of final vote on the school budget is May 20. 

For more information, please visit http://www.fcps.edu/news/fy2011/bottomline042310.html.

 FY 2011 Budget Planning Calendar*

• April 6-8 County Board of Supervisors (BOS) holds public hearings on budget.
• April 7 School Board presents budget to County BOS.
• April 26 County BOS approves transfer to schools.
• April 29 School Board conducts budget work session.
• May 6 School Board FY 2011 Approved Budget presented for new business.
• May 10 School Board conducts budget work session.
• May 11 & 12 School Board holds public hearings.
• May 13 School Board conducts budget work session.
• May 20 School Board adopts FY 2011 Approved Budget.
• July 1 FY 2011 begins.

*All dates tentative and subject to change.