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Meeting Date:
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5/8/2020 - 12:00 PM
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Category:
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Discussion Topics
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Type:
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Info
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Subject:
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FY 2021 Combined Funds and FY 2021-2030 Capital Improvement Program (CIP) Budget Work Session
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ACPS 2025 Strategic Plan Goal:
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Goal 6: Effective and Efficient Operations
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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 Friday, May 8, 2020, the Superintendent will submit his Adjusted Combined Funds and CIP Budgets which must factor in any changes since the School Board approved the budget on February 20, 2020.
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Background:
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In the current FY 2020 Budget year, financial activities and all ACPS operations have been greatly impacted by the nation’s reaction to the COVID-19 pandemic which, as of mid-March, has closed all schools and has forced student instruction as well as most administrative functions to be performed from home. Similarly, the FY 2021 Operating Budget is expected to see significant changes as a result of the pandemic. The resulting economic impacts manifest in anticipated reductions in all sources of revenue to ACPS.
The largest revenue reduction ACPS will experience is the reduction to the City appropriation. The City appropriation was unanimously adopted by the City Council on April 29, 2020. The adopted appropriation reduced the operating transfer to the Alexandria City Public Schools by $7.4 million, an amount equivalent to previously proposed pay increases for ACPS staff. The Financial Services Department is, likewise, anticipating a reduction to State revenue as well. Staff is currently projecting a $4.0 million reduction, largely contingent upon the Commonwealth of Virginia revenue projections and the resulting impact to public school divisions. Staff also expects to experience reductions in Local revenue, largely dependent upon fees and activities associated with the use of ACPS facilities.
To present a balanced budget to the School Board, the Superintendent, in collaboration with the Senior Leadership Team and principals has presented offsetting expenditure reductions to account for the anticipated revenue reductions. Primarily a result of the reduction to the City appropriation, the Operating Budget seeks to largely eliminate compensation increases to ACPS staff in FY 2021. The adjusted budget also proposes to reduce the number of new positions in FY 2021 and similarly limit the hiring of employees by instituting a hiring freeze for non-classroom positions. A 5% across the board reduction to all non-personnel expenditure types is expected to result in a $1.7 million savings, while a reduced estimate to the increased Health Benefit costs will also result in expenditures savings. All together, these expenditure reductions present a balanced budget while maintaining the integrity to adhere to the School Board’s Budget Priorities and also seeks to retain and protect the positions of the current valued staff of ACPS.
Adjustments to the Grants & Special Projects Fund, as a result of Coronavirus Aid, Relief, and Economic Security (CARES) A
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Recommendation:
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The Superintendent recommends that the School Board approve the Superintendent’s adjustments to the Alexandria City Public Schools Combined Funds Budget and CIP as submitted.
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Approvals:
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Recommended By:
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Signed By:
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Dr. Gregory C. Hutchings, Jr. - Superintendent
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