Budget Fy10-fy11 Underwood 100609

BOARD OF SUPERVISORS COUNTY OF GOOCHLAND OFFICE OF THE COUNTY ADMINISTRATOR

Delivered By Hand October 6, 2009

Dr. Linda Underwood, Superintendent Goochland County Public Schools P.O. Box 169 2938-1 River Road West Goochland, Virginia 23063 RE: FY 2010 and FY2011 Preliminary Funding Estimates and Requested Budget Actions Dear Dr. Underwood: The County has begun the process of preparing for the FY 2011 Budget. As part of this process the County has reviewed all revenue estimates. Admittedly, the figures are preliminary but given the scope of the issue, I felt it important to communicate with you as early as possible. I hope that these estimates will improve, but if we don't plan early, our ability to address. the situation will only become more difficult. I appreciate the opportunity to present this preliminary revenue information to the School th Board on October 13 • The requests below may make more sense to everyone after that presentation. FY2010 Currently we are projecting a revenue shortfall of approximately $2.5 million overall for FY2010. As you may recall that the Board of Supervisors had the foresight to set aside $1.2 million from the fund balance at year end of FY2009 in anticipation of the poor economy and the change to annual reassessments. This leaves us with about $1.3 million to "address" in the current fiscal year. In order to address the projected FY2010 shortfall specific actions will have to be taken to reduce or adjust expenditures for the rest of the fiscal year for both the County and the Schools. For planning purposes at this time, please assume that 50% of this projected shortfall, basically a pro-rata share, will need to be addressed by actions of the School Board. This would mean approximately $650,000 in expenditure reductions/adjustments will need to be identified. I recognize that the Schools have sustained State cuts in the current year as well. We have experienced the same thing. My plan on the County side is to begin to identify actions now. I know we will need to work together on this. While we may not be able to address the full shortfall, we need to have a plan for helping to offset it. I am requesting that

1800 Sandy Hook Road

P. O. Box 10, Goochland, Virginia 23063

(804)556-5800. (804)556-4617 Fax. (804)556-5317 TDD

Email: [email protected]

Dr. Linda Underwood October 6, 2009 Page 2

an action plan from the Schools be provided to me by November 1 so that I may pass it along to the Board of Supervisors. FY2011 The County has also begun reviewing revenues for the upcoming FY2011 budget, I expect that revenues will be reviewed and evaluated several times as we move through the budget process. We are projecting a revenue decrease of approximately $5.4 million when compared to the FY2010 budget. It will be difficult to address a projected shortfall such as this and at the same time preserve current services. Please know that I am working from the assumption of no change occurring in the real estate tax rate or other tax rates at this time. For planning purposes, please assume that the local transfer to schools for FY2011 will be about 15% lower than the FY 2010 level of $19,965,174, which equates to a reduction of about $2,900,000 (rounded) and helps to address a little over 50% of the expected shortfall. The reduction does not apply to the Cafeteria Fund amount or Schools Debt service. We can refine this as we move forward but this will give us a starting point for beginning our budget discussions. There are many ways to look at percentages and proportions as you know, but roughly, schools represent about 55% of the County's overall budget-hence the approach for how to deal with the expected shortfall. The Board of Supervisors remains committed to the importance of good public schools and the impact schools has on the quality of life for our citizens. Past funding and local financial support bears this out. It is the County's hope that the economy will improve for FY 2011, and with it our revenue estimates, but unfortunately we have to realistically plan for decreased revenues. I know that you and I will work closely together to offer solutions to our Boards during these tough economic times. I appreciate the partnership very much. Sincerely,

Rebecca Dickson, County Administrator c: Board of Supervisors Myrtis Quarles, Director of Finance