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Meeting Date:
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Category:
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Type:
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Subject:
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FY 2025 Combined Funds and FY 2025-2034 Capital Improvement Program Budget Work Session #1 |
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ACPS 2025 Strategic Plan Goal:
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Goal 4: Strategic Resource Allocation ACPS will strategically provide differentiated resources and supports to schools and departments.
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Funding Source or Fiscal Impact (where applicable):
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File Attachment:
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Agenda Item Summary:
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On Thursday, May 2, 2024, the Superintendent will submit her Adjusted Combined Funds and CIP Budgets which must factor in any changes since the School Board approved the budget on February 22, 2024. Revenue and Expenditure adjustments, to the Combined Funds (Operating, Grants & Special Projects, and School Nutrition
Services) and adjustments to the Capital Improvement Program (CIP) budget, since the budgets were approved are enumerated below:
Combined Funds Budget (Operating Fund, Grants and Special Projects Fund, and School Nutrition Services Fund)
Operating Fund:
On Wednesday, May 1, the Alexandria City Council unanimously adopted a Fiscal Year (FY) 2025 General Fund Operating Budget. This included the appropriation to ACPS totaling $273.03M, a $14.3M increase over FY 2024.
Along with other adjustments, the Superintendent proposes to add a 1.5% Market Rate Adjustment (MRA) for all eligible ACPS staff, across the Combined Funds, for FY 2025. The resulting impact to compensation is approximately $4 million. On average the year over year salary increase for staff will be 6.6%.
ACPS will also recognize approximately $400,000 of additional Virginia Preschool Initiative (VPI) revenue due to a projected increase in funding from the Commonwealth of Virginia. The additional revenue, to the Grants and Special Projects Fund, allows for a reduced contribution to support the program from the Operating Fund.
Additionally, based on more recent estimates from ACPS’ health insurance carriers (specifically Kaiser and United Healthcare), ACPS is positioned to see savings of $984,000 from the Approved Budget.
The above-mentioned adjustments to the Operating Fund will be offset by the following items:
● $232K - 2.0 FTEs Advanced Academic Services (itinerant teachers)
● $125K - 1.0 Program Coordinator dedicated to marginalized students
● $100K - Marginalized Student Achievement Program
● $200K - Impact of FY 2024 position reclassifications
● $263K - Communities in Schools funding
● $464K - 4.0 FTEs Teachers at ACHS
● ($400K) - Virginia Preschool Initiative transfer reduction
● ($984K) - Healthcare cost reduction
The result of the Proposed Superintendent’s Adjustments remains a balanced FY 2025 Operating Fund’s budget.
Grants and Special Projects Fund:
Based on the Superintendent’s proposal to add a 1.5% Market Rate Adjustment (MRA) for all eligible ACPS staff, across the Combined Funds, for FY 2025, the Grants & Special Projects Fund will absorb the impact of approximately $187,500.
ACPS will also recognize approximately $400,000 of additional Virginia Preschool Initiative (VPI) revenue due to a projected increase in funding from the Commonwealth of Virginia.
Due to the recognition of reduced health insurance renewal rates, the resulting benefits adjustments to Grants and Special Projects Fund is approximately $56,200 in employee benefits.
The above-mentioned adjustments to the Grants and Special Projects Fund will be offset by the requisite amount of non-compensation account increases for each affected grant and/or special project.
The result of the adjustments will not affect the FY 2025 Total Grants and Special Projects Fund Budget.
School Nutrition Services Fund:
Based on the Superintendent proposal to add a 1.5% Market Rate Adjustment (MRA) for all eligible ACPS staff, across the Combined Funds, for FY 2025, the School Nutrition Services Fund will absorb the impact of approximately $75,000 due to the compensation increase.
Due to the recognition of reduced health insurance renewal rates, the resulting benefits adjustments to School Nutrition Services is approximately $49,900 in employee benefits.
The above-mentioned adjustments to School Nutrition Services will be offset by the requisite amount of non-compensation increases, specifically to Capital Outlay.
The result of the adjustments will not affect the FY 2025 Total School Nutrition Services Budget.
The Proposed Superintendent |
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Background:
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FY 2025 Combined Funds Budget
ACPS submitted a total City appropriation request of $279,571,300 for FY 2025, an increase of 8.1% from FY 2024. The City of Alexandria, which is the largest revenue source to ACPS, adopted its budget on May 1, 2024 which includes the appropriation to ACPS of $273,034,300, approximately $6 million less than the School Board requested.
Final state revenue is still being decided at the state level. However, our current budget projects this revenue based on currently available information. Upon finalization of the state’s budget, depending on the scope of any changes, ACPS staff will determine the next appropriate stage to reflect such changes.
FY 2025-2034 Capital Improvement Program
The City of Alexandria’s Approved Budget resulted in a $548,400 reduction from the School Board approved FY 2025-2034 CIP Budget.
The total adjusted FY 2025 CIP budget is now $107,608,600 which matches the City Council Approved CIP Budget. |
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Recommendation
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The Superintendent recommends that the School Board review the Superintendent’s adjustments to the Alexandria City Public Schools Combined Funds Budget and Capital Improvement Program Budget, as submitted. |
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Approvals:
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Recommended By: |
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Signed By: |
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Dr. Melanie Kay-Wyatt - Superintendent |
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