1. 1

2. FY 2012 At a Glance
• $2.2 billion operating budget
– Increase of 3.6% from FY 2011 approved
• 177,416 projected e o e t
, 6 p ojected enrollment
– Increase of 2,120 students, or 1.2 percent, over
FY 2011 approved
– More than 1 in 4 students eligible for free and
reduced-price meals
• 11th largest school system in the U S
U.S.
• 196 schools and centers
2

3. Achievement Makes News
• All FCPS high schools made Newsweek’s list
Newsweek s
of “Top High Schools in the U.S.”
• Thomas Jefferson High School ranked top in
the nation by U.S. News and World Report
• FCPS students continued to post SAT ACT
SAT,
scores above state and national averages
• FCPS and 52 FCPS schools honored by
State Board of Education in 2010
3

4. Achievement Makes News
• 36 FCPS schools received Governor’s Award
Governor s
for Educational Excellence
• 189 FCPS students named National Merit
Scholarship Semifinalists in 2011
• FCPS students increased pass rates on
Virginia Mathematics SOLs, entire division
made AYP in 2010
• FCPS’ dropout rate decreased from 1.5 to
1.4 percent in 2009
p
4

5. Achievement
• Standards of Learning (
g (SOL) p
) pass rates were
93 percent in English; 92 percent in
Mathematics
• Advanced Placement: Comparison of SAT Scores
School Year 2009-2010
– 32,230 AP exams taken
Falls Church City 1795
– 70 percent of AP tests earned Fairfax County
F i f C 1664
a score of 3 or higher Arlington County 1657
Loudoun County 1597
• International Baccalaureate: Prince William County 1508
Manassas City 1491
– 6,472 IB exams taken Alexandria City 1442
Prince George's County 1306
– 73 percent earned a score of
4 or higher
g US Average 1509
Virginia A
Vi i i Average 1521
– 293 IB diplomas earned Source: 2011 WABE Guide
in 2010
5

6. Achievement
• Targeting resources to further student
achievement and continue closing the
achievement gap:
– Needs-based staffing at all levels
– English for Speakers of Other Language services
g p g g
– Priority Schools Initiative
– Additional resources for Student Achievement
Goal projects
6

7. Prior Year Reductions
• FY 2011 fees, reductions and cost
,
avoidances of $203.4 million and 207.3
positions including:
– AP/IB testing and athletic fees; elimination of most summer
school programs; contract length reductions; further custodial
and central support reductions; elimination of tuition
reimbursement and National Board Certified Teacher stipends;
Pimmit Alternative High School closed; employee pay frozen
• FY 2010 reductions and cost avoidances of
$171.5 million and 788.1 positions including:
– Class size increase of 0.5 students per teacher; clerical,
custodial, and AP reductions in schools; central support
reductions; reductions to Guidance and Career Services, HS
Academies,
Academies Library Media Special Education and Adapted
Media,
Physical Education; employee pay frozen
7

8. Prior Year Reductions
• FY 2009 reductions and cost avoidances of
$95.9 million and 423.3 positions including:
– Class size increase of 0.5 students per teacher; central
support reductions; Preschool IA reductions and increase of
one Itinerant Service; elimination of Time-out Rooms; and the
redesign of summer school
• In total from FY 2009 to 2011, more than
$465 million in reductions and cost
avoidances,
avoidances including the elimination of
over 1,400 positions, and over $4 million in
increased revenue from fees
8

9. Divisionwide Priorities
Reasonable Interpretations of School Board
p
Budget/Program Review Criteria
A. Ensure safe and secure environment 10
B. Provide resources for students not meeting academic expectations 10
C.
C Foster relationships with community--parent liaisons
community parent 10
D. Ensure quality academic programs (Goal 1)
1. Core disciplines (Goal 1.1) 10
2. Fine arts (Goal 1.3) 9
3. Practical arts (Goal 1.3) 8
4. Two languages (Goal 1.2) 6
5. Technology (Goal 1.5) 4
6. Countries and cultures of the world (Goal 1.4) 4
E. Maintain support for effective classroom teaching and learning 9
F. Emphasize K-3 (Early investment) 9
G. Maintain competitive salary/benefits 9
H. Ensure program and operational efficiency and effectiveness 5
I. Support lifelong learning (
pp g g (athletics, extracurricular)
, ) 4
J. Minimize negative impact on families (fees) 4
K. Foster relationships with community--community use 3
9

10. Revenue by Source
Where it comes from…*
FY 2012 Proposed Operating Revenue
($ in millions)
CITY OF FAIRFAX
BEGINNING BALANCE Payment to FCPS to
$53.8 provide educational
FEDERAL AID
Includes Impact Aid,
Aid 2.4% y
services to the city's
IDEA, Jobs Fund, and 3,022 students
E-rate funding $35.4
$63.2 1.6%
2.8%
OTHER
SALES TAX Includes fees, out-of-
One and 1/8 cent of the
county tuition and
tuition,
state sales tax is building rental fees
designated for $19.4
education 0.9%
$148.6
6.5%
STATE AID
Primarily SOQ funding COUNTY TRANSFER
$293.5 Real estate and
12.9% personal property taxes
are the main source of
county revenue
$1,659.1
73.0%
10

11. Revenue Highlights
g g
(Change from FY 2011 Approved Budget)
($ in millions)
• County Transfer $48.8
• State $
$8.8
• Federal ($4.7)
– One-time Education Jobs Fund
– ARRA stimulus ends in FY 2011
– Additional loss of $8.2 million Title I
ARRA included in the grants fund
• Foundation Support $0.5
• Student Fees Continue
11

12. County Transfer
• Request increase of $
q $48.8 million, or 3.0
,
percent, over the FY 2011 level
• The state’s funding formula causes FCPS to
rely more h
l heavily on l
il local f d
l funds
Other Virginia
FCPS School Divisions' Average
State State
Aid Sales Aid
12.9% Tax 41.5% Sales
6.5% Tax
8.3%
Federal
Aid
2.8%
Local
Funds Local
73.0% Other Federal
Funds Aid
4.8% 43.3% 6.9%
12

13. Expenditures by Category
Where it goes…
g
FY 2012 Proposed Operating Expenditures
($ in millions)
TRANSPORTATION
Includes bus driver salaries
salaries,
replacement buses, and
bus operations and
maintenance
$123.4
5.5%
FACILITIES
MANAGEMENT
INSTRUCTION Includes costs related to the
Includes costs operation and maintenance
associated with of school buildings and
providing instructional equipment
programs $94.2
$94 2
$1,918.1 GENERAL SUPPORT 4.2%
85.4% Includes costs associated
with support services for
finance, human resources,
information technology,
purchasing, and L d hi
h i d Leadership
Team
$110.4
4.9%
13

14. Expenditure Highlights
p g g
(Change from FY 2011 Approved Budget)
($ Millions) (Positions)
• Membership Growth $17.8 258.4
– Projected growth of 2,120 students
• Market Scale Adjustment $35.8 0.0
• Step Increments $40.2 0.0
• Salary Lapse ($28.4) 0.0
• Retirement $27.1 0.0
• Health and Life $11.1 0.0
• O
Online SOL Testing
e SO est g $8
$8.1 47.8
8
14

15. Expenditure Highlights
p g g
(Change from FY 2011 Approved Budget)
Budget Savings ($ Millions) (Positions)
• Funding for OPEB ($5.0) (0.0)
• One Time Initiatives
One-Time ($3.9) (17.5)
($3 9) (17 5)
– Previously funded by IDEA ARRA
• Transportation ($2.6)
($2 6) (0.0)
(0 0)
• Energy Management ($2.2) (0.0)
• SASI Replacement ($0.6)
($0 6) (0.0)
(0 0)
• Contract Length ($0.4) (0.0)
Realignment
15

16. Strategic Governance
FCPS' Core Beliefs
We believe in our Children
We believe in our Teachers
We believe in our Public Education System
y
We believe in our Community
Our beliefs drive our budget
g
16

17. We Believe in Our Children
In FY 2012, FCPS will maintain class size
17

18. Resources Focused on Schools
FY 2012 Positions FY 2012 Funding
($ in millions)
Support Support
Programs g
Programs
1,235.5
1 235 5 $328.0
Instructional 5.5% 14.6%
Instructional
Programs Programs
21,203.9 $1,918.1
94.5% 85.4%
85 4%
85.4% funding and 94.5% positions from
the School Operating Fund for instruction
in FY 2012
18

19. We Believe in Our Children
(Changes from FY 2011 Approved Budget)
• Online SOL Testing
– State-mandated; will cost FCPS $8.1 million
• HS Needs-Based Staffing
– Fully implementing for FY 2012
– $1 0 million in increased funding plus $1 0 million
$1.0 $1.0
reallocated from Student Accountability
• Student Achievement Goal Projects
j
19

20. We Believe in Our Teachers
FCPS must
continue to attract
and retain world-
class teachers
20

21. We Believe in Our Teachers
Starting Teacher Salaries
g
$45,000 $44,880
$44,789
$44,600
$44,389
$44 389
$44,200
$44,000
$ ,
$43,800
$43,400
$43,000
$
2009 2010 2011 2012 w/MSA
After two years of decreasing beginning teacher salaries,
FCPS must provide salary increases to continue to attract and
m st pro ide salar contin e
retain world-class teachers
21

22. Career Compensation
Starting Teacher Salaries
FY 2011
Division
Prince George's $44,799
Fairfax $44,000
Teacher Salaries
Arlington
A li t $43,910
$43 910
Step 9, Masters Degree
Falls Church City $43,720
FY 2011
Prince William $42,863 Division
Alexandria City $42,671
Manassas City $42,585
$42 585 Arlington $66,848
$66 848
Loudoun $42,539 Alexandria City $64,596 Maximum Teacher Salaries
Prince George's $63,020 FY 2011
Falls Church City $62,388 Division
Fairfax $57,524
Arlington $101,298
$101 298
Prince William $57,309
Prince William $97,723
Manassas City $56,585
Falls Church City $97,440
Loudoun $53,818 Loudoun $96,195
Alexandria City $94,868
Manassas City $93,615
$
Fairfax $92,094
Source: FY 2011 WABE Guide Prince George's $91,752
Montgomery County Public Schools declined to participate in the FY 2011 WABE Guide 22

23. We Believe in Our Teachers
(Changes from the FY 2011 Approved Budget)
• Market Scale Adjustment
– 2.0 percent
– Salaries have been frozen for two previous years
• Step Increase
• Retirement
• Health and Life
• Employee Recognition
23

24. We Believe In Our Public
Education S t
Ed ti System
Efficiency
Efficienc is seen b comparing FCPS with
by ith
neighboring school systems; effectiveness is
demonstrated through high student achievement
24

25. Trends in Student
Enrollment
E ll t
FCPS Membership Growth
For
F FY 2012, i
2012 increased d
student enrollment will cost
177,416
175,296
$17.8 million and require
173,573 258.4 positions
p
168,384
164,295 164,843 Student Membership Trends 45,170
FY 2007 Approved FY 2012 Proposed
Number of Students
32,540
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
23,653
23 653 24,591 23,543
23 543
Approved Approved Approved Approved Approved Proposed 21,813
One in four FCPS students
will be eligible for Free or
Reduced Price Meals—a
federal benchmark of poverty Special Education English f or Speakers Students Eligible for
Unduplicated Student of Other Languages Free or Reduced-Price
Count Meals 25

26. FCPS Projection Accuracy
Average Membership Projection Variance
FY 2007 to FY 2010
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%
Fairfax
Loudoun
Falls Ch
F ll Church
h
Prince George's
Arlington
Prince William
Manassas City
Alexandria
26
Source: Data compiled from FY 2007-2011 WABE Guides

27. We Believe in Our Public
Education System
(Changes from the FY 2011 Approved Budget)
• Membership Growth
– For FY 2012 Proposed:
• 2 120 additional students
2,120
• 258.4 positions required for growth
• $17.8 million cost of student g
$ growth
– Since FY 2007 Approved Budget:
• 13 121 additional students
13,121
• 1,462.9 positions required for growth
• $93.4 million cost of student growth
27

28. We Believe In Our
Community
C it
Just as schools depend on the community, the
community depends on schools to provide an
outstanding return for their investment
28

29. Critical Relationships
p
“Education is Fairfax County’s highest
priority. We will continue the investment
needed to protect and enhance this primary
community asset. Our children are our
g
greatest resource. Because of our excellent
schools, businesses are eager to locate here
and our children are able to find good jobs. A
well-educated constituency i b t able t put
ll d t d tit is best bl to t
back into their community.”
Fairfax C B d f Supervisors’ P i iti
F i f Co. Board of S i ’ Priorities
www.fairfaxcounty.gov/government/board/priorities
29

30. Strong Partnerships
(Changes from the FY 2011 Approved Budget)
• Additional revenue from The Foundation
for Fairfax County Public Schools
– The Fairfax County Business Community:
• 350+ business and community partnerships
provide volunteer and financial support annually
• 77,000+ volunteers donate over 1 million hours
of their time and expertise to FCPS each y
p year
30

31. Community Value
FY 2011 WABE Cost Per Pupil
$20,000
$18,000 $17,322 $16,983 $16,729
$16,000
$14,000
$12,597
$12,000 $11,611 $11,351 $10,833
$10,000 $9,577
$8,000
$6,000
$4,000
$2,000
$2 000
$0
Source: FY 2011 WABE Guide
Montgomery County Public Schools declined to participate in the FY 2011 WABE Guide 31

32. Community Value
Percent of Nonschool-Based Management
to Total Authorized Positions
3.0% 2.7%
2.5%
2 5%
1.9% 1.8% 1.8%
2.0% 1.6%
1.3% 1.3%
1.5%
1.0%
1 0% 0.8%
0 8%
0.5%
0.0%
Source: FY 2011 WABE Guide
32

33. Summary
• Employee compensation is a high p
p y p g priority
y
for FY 2012
– 2% market scale adjustment and step
increases are included
– Rate increases for both retirement and health
are required
q
– Prior to any state adjustments to the VRS
rate, FCPS anticipates having $75 million in
the VRS reserve
• Membership growth and demographic
changes continue and require significant
g q g
resources
33

34. Key Dates
FY 2012 Budget Calendar
January 6, 2011 Superintendent releases FY 2012 Proposed Budget
January 24, 25* School Board holds public hearings on budget (*26th if needed)
February 3 School Board adopts FY 2012 Advertised Budget
February 22 Fairfax County Executive releases FY 2012 Advertised Budget Plan
March 8 County Board of Supervisors (BOS) advertises tax rate
March 29-31 County BOS holds public hearings on budget
April 26 County BOS approves the FY 2012 Adopted County Budget, tax rate, and transfer amount
May 12 School Board FY 2012 Approved Budget presented for new business
May 17, 18* School Board holds public hearings on budget (*19th if needed)
May 26 School Board adopts FY 2012 Approved Budget
July 1 FY 2012 begins
34

35. State Update
p
(Governor’s Introduced Amendments to the 2010-2012 Biennial Budget)
• State Revenue
– State Aid including sales tax is likely to increase, in part
based on membership and proposed increase in VRS
rate and sales tax is also likely to increase based on
current state estimates
• VRS Expenditures
– The governor proposed increasing the rate by 2% to
address VRS’ solvency
VRS
Employer Share Employee Share
• FY 2011 Approved Budget 3.93% 5.0%
• FY 2012 Proposed Budget 5.16% 5.0%
• FY 2012 Governor’s Proposed Rate 7.16% 5.0%
Impact of more than $20 million above FCPS’ proposed budget
• The impact of the state’s budget decisions will be
state s
incorporated after the state budget is adopted
35

36. Become Involved
• Access budget documents and budget
g g
news online at www.fcps.edu
• Attend public meetings of the School
Board
B d or watch on R d A l 21
t h Red Apple
• Speak at a School Board public hearing
(www.fcps.edu/schlbd/requestspeak.htm
(www fcps edu/schlbd/requestspeak htm
or 571-423-1075)
• Speak at a Board of Supervisors public
hearing
(www.fairfaxcounty.gov/bosclerk/speaker
_bos.htm or 703 324 3151)
bos htm 703-324-3151)
36