County Board
County Board FY 2013 Budget Guidance
>>Attachment 1: County Board Guidance Regarding Schools’ Budget Planning & Revenue Sharing
GOALS:
The County Board directs the County Manager to prepare a FY 2013 budget that reflects current economic conditions, while honoring the County’s vision and legacy. Specifically, the FY 2013 budget must, at a minimum, fund services that protect the health and safety of our residents, continue our investments in affordable housing and environmental sustainability, adequately support the public schools, and ensure a safety net for those in need.
The County Manager is directed to use the following principles in developing her proposed FY 2013 budget.
PRINCIPLES:
- Provide a balanced budget that limits FY 2013 ongoing County expenditures (excluding schools transfer) to the FY 2012 adopted level plus 1.0% (Consumer Price Index (Urban) is 3.5%).
- Allow for expenditures greater than noted above in the following situations:
- To meet explicit commitments previously made by the County Board for the operation of new facilities (i.e., Mary Marshall Assisted Living Facility, Long Bridge Park Phase 1, Penrose Square, Court Square East);
- To include an appropriate level of contingent funding for unanticipated expenditures;
- Where proposed expenditure is to be fully offset by fee revenue.
- Maintain the County/School revenue sharing allocation (53.9% County / 46.1% Schools) adopted by the County Board in FY 2012 and outlined in the County Board guidance to the Manager in Attachment 1.
- Ensure that the budget provides for long-term financial sustainability.
- Preserve the County’s high grade bond ratings.
- Fully fund all debt, lease and other contractual commitments including those “subject to appropriation” in the base budget.
- Eliminate duplication and inefficiencies.
- Provide the County Board with either FY2013 or multi-year strategic options and/or recommendations in the following areas:
- Compensation - Options should ensure the County sustains a competitive compensation package and may address salary, health care, retirement and other forms of compensation. Staff will provide a comparative analysis of compensation in the region, standardized and coordinated among the localities to the greatest degree possible, upon which these options will be based
- Pay-as-you-go capital – Options should incorporate into the FY 2013 budget, as appropriate, recommendations in response to the CIP Working Group.
- Libraries – Options should bring to bear Libraries’ recent work on strategic future needs while building on past County Board actions to restore library services/hours reduced in the recent economic downturn.
- Housing – Options should be based on a comprehensive analysis of the full range of current County housing programs (as outlined in the County’s Consolidated Plan) and offer funding alternatives to meet growing needs identified in adopted County goals and pending County planning efforts.
Attachment 1
County Board Guidance Regarding Schools’ Budget Planning & Revenue Sharing
November 20, 2011
The County Board has long recognized the essential role that a high quality public education system plays in a diverse, inclusive, world class urban community. The value of the collaborative relationship that the County and Schools have developed over the years, cooperating on facilities and land use, technology, transportation, and many other areas has improved the entire community.
The County Board has demonstrated its commitment to Arlington Public Schools (“Schools”) through strong financial support. Over the last ten years the School transfer has grown from annual funding of $213 million in FY 2002 to $380 million in FY 2012. Over this period, per pupil spending has increased from $11,018 to $18,115 based on the Washington Area Board of Education methodology which has resulted in per pupil spending that is consistently among the highest in the Washington Metropolitan Area. In addition, the County Board has demonstrated its further commitment to Schools by approving and funding a significant capital improvement program and bond referenda, including the rebuilding of three high schools.
The County Board recognizes the current enrollment increases and related capacity problems confronting Schools and is committed to assisting in a manner that meets the community’s needs.
Recognizing one of the primary benefits of revenue-sharing is to provide both County and Schools with a predictable method of fiscal planning, with both organizations participating in the highs and the lows of economic swings, the County Board reaffirms its commitment to Arlington Public Schools by adopting the following principles. The County Manager is directed to use these principles in developing her proposed FY 2013 budget:
- For budget planning purposes, local tax revenues will be shared at the percentage share established at budget adoption of the prior fiscal year. For FY 2013 budget preparation, the percentage share to be allocated to Schools is 46.1%. Based on current projections, this will result in additional ongoing funding to Schools ranging from $9 to $10 million above the FY 2012 transfer level.
- The County Board will consider additional needs identified as part of each organization’s budget and those needs will be weighed and discussed during the public budget process.
- Tax rate changes, including one-time revenue in the current fiscal year, may be allocated specifically for either County or Schools purposes, reflecting a balancing of County and Schools needs during the public budget process.
- Consistent with current practice, at close-out, both County and Schools will retain expenditure savings and will share in revenue shortfalls or gains, according to the percentage share of local tax revenue established for that fiscal year.
