The School Division provided a step for employees and scale shift resulting in an average 3.75% raise.
The pay plan (included in the link above) is based on the agreed-upon budget priorities and reflects key changes:
2.15% scale shift for both teachers and nonteachers.
Increase in long-term, retired teachers, and permanent substitutes from $180 to $200 per day.
Increase in During School Day Tutors, PALs, ISAEP, and Teacher Other instructional rates from $25 per hour to $30 per hour.
A Summer Speech Pathologist Preschool Evaluation stipend for $7,500 per summer.
Along with all the position changes or new positions as listed in the priority requests column of the Department Request Report.
In addition, beginning in 2023-2024, the accrued sick leave payout at retirement was increased to 25% of the employee's daily rate, or a minimum of $50 per day, for up to 250 days. Likewise, the amount paid to beneficiaries of an employee who dies while actively employed would increase from $20 per day to 25% of the employee's daily rate, or a minimum of $50 per day, for up to 250 days. This benefit will continue into the future.
Health insurance claims are 17.8% higher than the prior year, which means insurance costs significantly more than it has in prior years. The School Division added a second level of deductibles and claims this year through a dual option to give the choice to the employee:
Pay lower premiums and retain more of the claims cost or
Pay more in premiums and retain less of the claims costs.
Both options are the same as they have previously been presented and are included in the above link.
Dental insurance rates remained the same as the prior year and are included in the above link.
The Code of Virginia requires annual approval of student fees. Fees are reduced or waived for economically disadvantaged students and students whose families are undergoing economic hardships and are financially unable to pay them. The fees are included in the link above.
The Roanoke County Public School 2025-2034 Capital Improvement Plan (CIP) was presented during the February 1, 2024, Budget Work Session. Funding for 2024-2025 will be included by project in the 2024-2025 Annual Budget. All subsequent years are neither a commitment nor an obligation to the stated project timeline.
The 2024-2025 Annual Budget is the same as presented during the March 19, 2024, Budget Work Session. Pages 3-6 of the Executive Summary detail the department requests for the current budget. They are categorized as priority requests, first add-back, not funded, or funded in the grant or nutrition fund. Page 7 details the budget by functional category (required for the County ordinance) and fund (how the School Division operates). The following pages provide schedules by each fund, along with replacement plans that feed into them.
The fourth work session for the 2024-2025 Annual Budget was on Tuesday, March 19, 2024. We reviewed follow-up and open items from prior work sessions. Below are links to the BoardDocs agenda with materials and the Work Session video:
Health Insurance Rates - We provided the third option for health insurance rates for review. However, it did not result in significant savings for the employee, and the School Board chose the dual option. Please see the PowerPoint or the 3/11/24 Blog for premium details.
Voluntary Retirement Plans - The School Division offers two optional retirement savings investment plans. Empower manages both plans and offers pre-tax or Roth contributions. Here is a quick summary of each:
403(b) School Plan
Distributions at 59 1/2 but have a 10% early withdrawal fee.
Never had a match.
118 participants.
Cost of a $600 match = $67,726.
457(b) County
Distributions at 70 1/2 with no early withdrawal fee.
$120 annual match frozen July 1, 2012.
336 participants.
Cost of a $600 match = $167,168.
Although we could not include the match in the budget presented, it is on the first add-back list.
Athletic Allotment Spending and Funding - We provided a spending and funding analysis for the athletic program. The budget presented includes $124,000. We added $125,000 to the first add-back list.
Replacement Plans - We presented changes to the Fleet Replacement Plan for additional Burton Center for Arts and Technology vans, previously requested. In addition, we presented changes in the out-years for the Technology Replacement Plan to remove state funding that is recognized in the General Fund. This will require additional future General Fund transfers.
Department Requests
The 2024-03-19 Department Request Update2024-03-19 Department Request Update provides a condensed list of the incremental new revenues and incremental new department requests for consideration and discussion. Changes from the prior version are in yellow highlights. These were discussed with the school board.
The third work session for the 2024-2025 Annual Budget was Thursday, March 11, 2024. We reviewed follow-up items for the School Board. Below are links to the BoardDocs agenda with materials and the video:
The School Board asked us to eliminate employee non-resident tuition. This will reduce General Fund revenue by $25,418. Currently, the school in which a non-resident child of an employee is enrolled receives $100 of the non-resident tuition paid by the employee. If tuition is eliminated for employees, the School Board asked that schools be held harmless financially by transferring $100 per non-resident student from the General Fund to the individual school where the student is enrolled.
Health Insurance, Dental Insurance, and Vision Insurance
Health Insurance Reserves are the amount of premiums that have exceeded claims payments in prior years and are held to be used in years when claim payments exceed premiums. We continue to see this balance decline and plan to use part of the reserves to balance the 2024-2025 Annual Budget.
We continued the discussion about the dual option for health insurance rates. The school board inquired about a possible third option with a higher deductible. We will analyze adding a third option at the next work session.
We shared an introduction to Alex. Alex is a decision-making tool that calculates projected healthcare costs based on employee-provided information. It illustrates the total amount an employee could expect to pay for healthcare costs plus premiums under all plans and recommends one based on the employee's criteria. It will be useful to help employees choose between different deductible plans. The school division does not get any of the information entered by the employee.
We also provided scenarios to illustrate how the school division should begin to share the insurance cost increases with employees regularly. For illustration only - if the school division provided an additional 1% scale shift and increased premiums by 3% every year, over the lifetime of the employee, the employee will earn more, retire at a higher compensation level, and earn more from VRS every month. It is important to remember that 1% of an employee's salary is a larger amount than 3% of the insurance premium.
Department Requests
The 2023-03-11 Department Request Update provides a condensed list of the incremental new revenues and incremental new department requests for consideration and discussion. These were discussed with the school board.
The second work session for the 2024-2025 Annual Budget was Thursday, March 7, 2024. We reviewed revenue updates, compensation and benefits, nutrition services, and department requests. Below are links to the BoardDocs agenda with materials and the video:
As reviewed during the first work session, forecasting next year's Average Daily Membership (ADM) is the basis for estimating SOQ state revenue. We used grade-level progression as a data point and updated our analysis to include February enrollment. We continue to recommend 13,375 as a reasonable basis for revenue calculations.
Using this ADM, we calculated revenue for both the House and Senate budget versions from crossover. They were both higher than the Governor's budget. However, due to the policy differences, we recommend using the Governor's Budget at this time.
The County's Revenue Sharing Formula was presented and provided new revenue of approximately $6.9 million (including Comprehensive Services Act Contribution returned to the County). This revenue is subject to change as the County staff continue to fine-tune their estimates.
The proposed 2024-2025 student fee schedule was provided. Changes occurred for PE uniforms, class dues, testing fees, and June 2025 repeat course fees. Fees are reduced or waived for economically disadvantaged students and students whose families are undergoing economic hardships. Families should contact their principal.
Compensation
We presented a 3.75% raise for employees made up of a 1.6% step plus a 2.15% scale shift. The total cost for the salaries, FICA, and Virginia Retirement System benefits is $4.7 million. The House budget included funding to cover part of a 3.375% raise, while the Senate budget included funding to cover part of a 3.00% raise. If revenue estimates increase, we will aim for a higher raise.
Health Insurance, Dental Insurance, and Vision Insurance
The division is self-insured for its health insurance coverage. This means Anthem bills the division for the 80% claim payment. The division limits payments on claims higher than $250,000 through reinsurance. Unfortunately, the claims cost increased by 17.8%, mostly due to an increase in claims between $100,000 and $250,000.
Staff recommended offering a second insurance option, based on the same health insurance plan, but with higher deductibles to offer a lower cost option. With these rates the General Fund will contribute an additional $1.3 million for health insurance, and we will use $1.6 million of reserves. The proposed 2024-2025 health insurance rates are as follows:
There is no proposed change to dental insurance this year.
Vision insurance is being renewed currently and rates are not known.
Nutrition Services
Qualifying schools operate under the Community Eligibility Provision (CEP) as implemented through the Healthy, Hunger-Free Kids Act of 2010. All students attending a CEP school will be provided a nutritious breakfast and lunch meal each day at no cost. Households with students attending these schools will not be required to submit a meal application or to pay a fee for these students to receive meals. Below is a summary of currently qualifying schools and those that may qualify for 2024-2025.
Department Requests
The 2023-03-07 Department Request Update provides a condensed list of the incremental new revenues and incremental new department requests for consideration and discussion. These were discussed with the school board.
The first work session for the 2024-2025 Annual Budget was Thursday, February 1, 2024. We reviewed an introduction to budgeting, the Governor’s budget, CIP, replacement plans, and department requests. Below are links to the BoardDocs agenda with materials and the video:
The budget cycle is a five-step process that results in a financial outline of the school division's educational program. Below is a summary of these steps.
Planning - In October, we adopt a calendar to review budget information as it develops.
Preparation - Between November and March, we estimate new money and devise spending plans. We hold public meetings and publish this blog to inform stakeholders of our progress and direction.
Adoption - In March, the School Board adopts the budget, and subsequently, the County Board of Supervisors adopts an ordinance making the budget a law.
Implementation - In July, we load the budget into the accounting system, and departments begin spending.
Evaluation - After year-end, we publish an Annual Comprehensive Financial Report (ACFR), which provides the results from the year. An independent CPA firm audits the ACFR.
Over the next month, we will prepare the budget. We will estimate money from the state, county, and other sources. Then we balance incoming money with spending priorities developed from request lists.
Governor's Budget
Most revenue of the School Division comes from the state (53% of the current year's budget derives from the state).
Most State revenue is based on the March 31 Average Daily Membership (ADM). So, we have to forecast March 31, 2025, ADM to estimate state revenue. We review many data points, including grade level progression, live birth rates, VDOE estimates, Weldon Cooper estimates, fall enrollment, and current enrollment, before recommending an estimated ADM. Tentatively, staff suggests using 13,375. This is the same budgeted ADM for the current year.
This is the first year of the biennium and the state has revised the Local Composite Index (LCI). The LCI is a formula used to determine the share each local government should support for public education. The division's LCI declined .0008, which means we will receive slightly more funds from the state.
Some initiatives in driving revenues up (▲) or down (▼) are as follows:
▲ Increase in basic aid net of a reduction in sales tax. ▲ One-time 1% bonus for SOQ-funded instructional and support positions 2024-2025 (a 1% raise would qualify for these funds). The Governor included a 2% salary increase beginning July 1, 2025, the 2nd year of the biennium. ▲ A reduction in defined benefit Virginia Retirement System (VRS) rates. ▲ Increase funding for VPI, Early Reading Initiative, and Algebra readiness programs. ▼ ALL In VA funding was one-time funding for 2024. ▼ New requirement to fund VRS hybrid defined contribution match separate from the defined benefit contribution.
The Governor's budget is our starting point, so expect changes when we analyze crossover revenues from the House of Delegates and Senate at the next work session.
Replacement Plans
The replacement schedules forecast future spending. The School Division uses these to calculate annual set-aside amounts to build up to large spending years.
The Textbook Adoption Plan is a 7-year plan to replace textbooks and other electronic resources for the classroom following VDOE guidelines. This plan allows the division to provide current and relevant classroom materials in alignment with the adoption years.
The Fleet Replacement Plan is a 15-year plan to replace school buses and other vehicles on a useful life schedule. This plan will ensure the fleet does not age to a point where the cost to maintain any vehicle exceeds the cost to replace the vehicle.
The Technology Replacement Plan is a 6-year plan to replace technology infrastructure and equipment on a rotating schedule. This plan will help avoid disruptive service outages, keep up with technology changes, and help deter or respond to cybercrime issues.
The Capital Maintenance Plan (CMP) is a 10-year plan for preventative maintenance projects to maintain the condition and longevity of school-owned buildings. This will extend the life of school facilities.
The Capital Improvement Plan (CIP) is a planning tool used to identify funding and allocate resources for large capital needs. Projects on the CIP are typically greater than $500,000 in value and may be funded by cash or by the sale of bonds.
