Insight into the FY 2024 Annual Budget and FY 2024-2033 Capital Improvement Program

On Oct. 6, 2022, the Alexandria City School Board adopted budget priorities for the fiscal year (FY) 2024 combined funds and FY 2024 - FY 2033 Capital Improvement Program (CIP). To provide staff with insight into the budget process, the Department of Financial Services has provided some information and key dates for ACPS staff.

Five-Year Fiscal Forecast Highlights

The FY 2024 - FY 2028 operating fund fiscal forecast reflects the financial challenges that the division will face in the coming years. Over the previous decade, student enrollment and expenditures have increased at a far quicker pace than the corresponding revenue has grown. Alexandria City Public Schools (ACPS) has conducted an analysis which shows that this trend will continue into the future. This will require a combination of revenue increases and expenditure reductions to balance the anticipated budget gap.

For FY 2024, the projected budget deficit is $12.05 million. Each year, as expenditures continue to surpass revenues, the estimated budget gap will continue to expand. By FY 2028, the annual funding deficit is projected to be $37.83 million.

This fiscal forecast begins with the FY 2023 final operating fund budget. This budget was balanced with a total fund balance of $9.32 million with $3.77 million transferred to support the CIP. Beginning with FY 2024, adjustments were made to reflect the anticipated revenue and expenditure assumptions. These assumptions are based on historical data and analysis of the operating impacts of the CIP.

ACPS FY 2024 Annual Budget Process Key Dates

• Oct. 3-4, 2022: FY 2024 budget development process begins with the schools and departments developing their requested budget.
• Oct. 17, 2022: Community Budget Forum.
• Oct. 18, 2022: City Council and School Board Joint Work Session on FY 2024-33 CIP Budget.
• Nov. 10, 2022: Presentation of the Superintendent’s Proposed FY 2024-33 CIP Budget.
• Nov. 14, 2022: School Board Work Session on CIP and Combined Funds (CF) Employee Compensation.
• Nov. 28, 2022:  Second School Board Work Session on CIP.
• Dec. 15, 2022: Adoption of FY 2024-33 CIP Budget.
• Jan. 5, 2023: FY 2024 presentation of the Superintendent’s proposed CF budget.
• Jan. 12, 2023: School Board Work Session on CF.
• Jan. 19, 2023: Public Hearing on FY 2024 CF Budget and Second School Board Work Session on CF.
• Feb. 16, 2023: Adoption of the FY 2024 approved budget.
• May 4, 2023: Superintendent’s Adjusted Proposed Budget on FY 2024 CF and FY 2024-33 CIP Budgets.
• May 18, 2023: Public Hearing on the FY 2024 CF Budget and FY 2024-33 CIP Budgets.
• June 1, 2023: Adoption of the FY 2024 final budget.

Capital Improvement Plan (CIP) Development Highlights

The CIP addresses ACPS’ building construction, expansion and refurbishment needs across the entire division. ACPS incorporates current enrollment information, program requirements, city population data, planning and zoning assessments, along with principal and department needs to develop the CIP. In addition, staff uses inspection and maintenance data, School Board strategic plans and facility condition assessments to determine capital needs. The adoption of the CIP is an annual commitment to a series of projects with estimated costs based on past projects, current market conditions and priorities.

The CIP is compiled from August through October and presented to the School Board for public consideration in November 2022. During the School Board’s involvement, additions, deletions or modifications to projects may occur. After the School Board approves the ACPS CIP, it is submitted to the City Council for consideration and approval. The City Council has until May to approve the City capital budget, including the consideration of the appropriate financing necessary to support the requested projects.

While the program serves as a long-range plan, it is reviewed and revised annually based on current planning circumstances. Priorities may change due to facilities assessments, enrollment fluctuations, the economic environment, new laws and regulations, population shifts or the strategic planning process.