3rd quarter DESE tuition projection was reviewed.  Biggest obstacle for PVPA is the above foundation funding (ABF) - schools in red show a drop in ABF.  Change in tuition from the 1st to 3rd quarter is -$320,317.  Fortunately the Finance Committee exercises a conservative approach and the change compared to budgeted tuition is $120,712.  PVPA is still on track to meet the language of the CBA that guarantees staff a retroactive pay increase in June.

The P&L Budget Overview for the 3rd quarter was reviewed:

Revenue Areas of note/concern:

• Auxiliary Revenue - bus contracts may not be a high as currently reported and will be determined by collection activities.
• Fundraising - overall contributions down, no activities planned.
• Miscellaneous Revenue - not typical,  received funds from a payroll error.

Expense Areas of note/concern:

• Education Other - seems low at only 26.7% of budget spent. What is the cause?
• Technology - Will not use all of budgeted funds a grant monies were used to purchase Chromebooks for students.
• Board of Trustees Expense - awaiting reimbursement for legal expenses, should be closer to budget at end of year.
• Auxiliary Expenses - 58.2% of budget spent.  Transportation and food service - invoices forthcoming from bus company and no charge for food this year.

How do we determine the tuition budget for FY24?  Committee discussed continuing a conservative approach given the unknown adjustments to above foundation funding that may continue into FY24 due to ESSER funding (FY24 is the last  year of the ESSER III funds).  If sending districts use ESSER funds to supplant rather than supplement their school budgets it has a negative effect on above foundation for charter schools.  

The last two years the tuition budget has been set at +4% of the current year 3rd quarter tuition as projected by DESE rather than projections from the legislature on the upcoming state budget.  So far, the Governor's budget and the House Ways and Means budget include the 1/7 funding for the Student Opportunity Act.  Management is recommending a 4.5% increase over the 3rd quarter tuition projected by DESE.  $6,836,702 + 4.5% increase = $7,144,354.

Recruitment efforts for the 2023-2024 school year have brought the PVPA wait list back to pre-COVID levels.  PVPA will enroll 72 seventh graders - all offers are currently out to prospective families and there are 56 students still on the wait list.  At this time last year there was no wait list for the seventh grade and we held three supplemental lotteries to keep enrollment near 400.  At this point there may be a need to a supplemental lottery for the tenth and eleventh grade.  PVPA's good media coverage is partially attributable to the increase in applicants -  Valley Advocates Best of the Valley and students from Pop R&B playing at the Shea Theater opening for Haley Reinhart.  Alot of good things happening!

The Committee acknowledged the difficulty in determining the tuition budget when the numbers continually change.  Through the COVID years the 4% increase on the prior years tuition has been successfully conservative and kept the financial health of the school strong.