2019/2020 Budget Overview Ju July ly 16, 2019 T O P I C S Key - - PowerPoint PPT Presentation

2019/2020 Budget Overview Ju July ly 16, 2019

• Key Points
• General Fund
• Capital and Technology and Building Funds
• Local Tax Levies
• Next Steps
• Additional Materials

T O P I C S

ORGANIZATIONAL ALIGNMENT AREAS OF FOCUS We will ill alig lign school and central

• ffice resources to support our

strategic prio ioritie ies.

• Change the budgeting process to focus on

strategic goals and include all funding sources to maximize alignment.

• Determine course of action for implementing

a data dashboard, develop a multi-year, multi-perspective plan for implementation and complete Year 1 of the multi-year plan.

• Conduct at least two program evaluations.

• Focus decisions on strategic goals, not departments
• Include all funds in process to maximize alignment and transparency of restricted funds
• Integrating stakeholder perspectives into decision making especially around trade-offs

that will be necessary

• Incorporate processes and tools that look at the Academic Return-on-Investments (A-

ROI) including the cost and quality of services

• Investment and reallocation decisions need to be strategically coherent and

implementable

• Actively monitor and respond to investment results

Strategic Budget Process

Strategic budgeting process characteristics presented July 2018:

Source: Education Resource Strategies (ERS) Funding: District Budget Development

Executive Summary 4-Year Perspective

$22 $22.4 $22 $22.1 $22 $22.6 $23 $23.7 $30 $30.5 $38 $38.5 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 (Est.)

Ge General Fu Fund Reserves $ Millions

• Enrollment growth has slowed as home prices have risen. Fall 2018 enrollment was

budgeted to be 20,471 full-time equivalent (FTE) students, actual annual average FTE enrollment is 20,491, an increase of 20 students over budget. Budgeted FTE enrollment for 2019/2020 is 20,565, an increase of only 0.3%.

• School Employee Benefit Board (SEBB) will be implemented in January 2020 requiring all

school district employees to receive benefits through the state.

• We anticipate the increase cost for benefits for employees to be $7.2 million in 2019/2020 and up to an

additional $10 million, conservatively in 2020/2021.

• Additional revenue for employee benefits from the state are estimated to be $3.5 million.
• We will no longer have to make payments to the state for retiree benefits resulting in a savings of $1.3

million annually.

• The net impact of SEBB in 2019/2020 is a negative $2.4 million.
• The local enrichment levy will be reduced by $6.4 million during 2019/2020 with the

reduction in local levy limits imposed by the McCleary solution.

Key Points

• Even with this reduction in funding, we want to invest in our strategic priorities at a level that

will move us forward and support students with the greatest needs. To that end, while all schools will continue to implement Multi-Tiered System of Supports (MTSS) and Continuous Cycles of Improvement, we are directing more resources towards our most marginalized or under-served students in our high needs schools.

• We are also directing more services towards meeting social emotional learning and mental

health needs of our students at both the elementary and secondary levels.

• We anticipated our financial challenges of increasing costs and falling revenues by building

general fund reserves over the past 2 years. This budget plans to spend down these funds by $9.1 million leaving $29.4 million in reserves, 7.9% of expenditures, for the start of the 2020/2021 fiscal year.

• Over the next 12 months, we will be analyzing our spending patterns to reduce our overall

spending as well as working with legislators regarding local levies.

Key Points

Additional Strategic Investments

El Elementary Co Cost Add’l K-3 Teachers at High Needs Schools – 16 teachers (Source: Cost Neutral) $2,240,000 Add’l Professional Learning Community (PLC) time and support at high needs schools (Source: Capital and Tech Levy) $560,000 Before School Enrichment and Support at Lake Hills and Sherwood Forest (Source: Title 1 funds) $200,000 Spanish speaking GSAs in dual language classrooms (12) (Source: General Fund) $450,000 Implemented coordinated support for student well-being at Title I schools (including Highland MS) (Source: Title 1 Funds) $1,300,000 Implementing culturally responsible classroom libraries (Source: General Fund and BSF) $200,000 Sec Secondary ry Co Cost Mental Health Action Teams at all secondary schools (Source: General Fund & BSF) $440,000 Secondary Math Support

• Algebra/Geometry Block Support (Bellevue,

Interlake & Sammamish)

• Highland MS Math Interventionist

(Source: ELL/TBP, General Fund) $255,000 Graduation Success

• Interlake HS – re-entry pilot
• RISE Program

(Source: General Fund) $405,000 Di District-wide Co Cost Family Engagement Plan Implementation (Genl Fund) $100,000 Translation Support (Source: ELL/TBP) $80,000 BSD Leadership Development (Source: Genl Fund) $100,000

Additional Increases

Des Descrip iption Co Cost Additional Teaching Staff – General Education, Special Education and English Language Learners $2,800,000 Increase to school budgets – Supplies (MSOCs) & classified staffing $150,000 Classified classroom staff training $250,000 Increase cost of employee benefits $7,200,000 Increase in employee compensation including salary-based benefit costs (retirement, social security, Medicaid/Medicare) $9,835,000 Des Descrip iption Co Cost Special Education – Vision support, PALS, health support $290,000 Athletics, field trips & extracurricular $100,000 Miscellaneous Operating Costs $390,000

Materials, Supplies, and Operating Costs (MSOCs)

• State law requires the following disclosure during the budget hearing process:

2018/1 /19 Bud Budget Amou Amount Total MSOC Allocation $27,353,145 Total MSOC Budget $37,952,367 Net Difference ($10,599,222)

4-Year Outlook

$330.0 $340.0 $350.0 $360.0 $370.0 $380.0 $390.0 $400.0 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023

Ge General Fu Fund – Revenue vs.

• s. Expenditures

Revenue Expenditures

$ Millions

Net: $2.7 Net: ($9.1) Net: ($7.3) Net: ($3.8) Net: $0.6

Capital & Tech Levy Funds ($000’s)

$ 000’s Total Available Funds: $46,530 EOY Fund Balance: $8,905 Salaries & Mgt Support $13,780 Teacher Tech Stipends $3,730 Athletic Fields & Equipment $2,600 Facility Modernizations & Renovations $2,575 Portables $500 Data Center & Projects $1,540 Application Licenses $3,500 Tech Support Infrastructure $1,100 Classroom Technology $2,000 Student Laptops $3,900 Computer-Based Curriculum $1,305 Miscellaneous Programs $1,095 Total $37 $37,625

Capital Building Fund (000’s)

Total Available Funds: $231,630 EOY Fund Balance: $115,451 We will be proposing a Phase IV Construction program to the Board of Directors this fall. If the Board decides to move forward with this next phase of construction, a bond election will be held in February 2020. If the election is successful, we need to ensure we have enough spending capacity in the budget for Phase IV to begin. This budget is built with that assumption.

Bo Bond nd Proj

• jects

$000’s Tillicum MS $243 Newport HS $250 Stevenson Elem. $1,188 Highland MS $36,550 Clyde Hill Elem. $3,405 Puesta del Sol $30,600 Big Picture $4,980 International $180 New Elem #2 $7,370 Tot

• tal Bo

Bond nd Proj

• jects

$84,766 Staff Salary & Benefits $913 Bond Services $400 Other Misc. $100 Tot

• tal Ma

Management $1,413 Contingency $30,000 TOTAL BO BOND FU FUND ND EXPE EXPENDITU TURES $116,179

Local Levies Collecting at Levy Limit

$8 $83,578 $7 $79,496 $1 $102,094 $9 $94,007 $8 $87,058 $6 $66,500 $5 $51,303 $5 $53,000 $5 $54,800 $5 $56,653 $2 $26,000 $3 $37,047 $4 $40,000 $4 $42,000 $4 $44,000 $8 $8,000 $2.79 $2.43 $2.39 $2.26 $2.04 $2.81 $2.80 $2.75 $2.71 $2.58

$0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2018 2019 2020 2021 2022

Debt Serv. Ed & Ops Cap & Tech School Bus Current Exp. Tax Rate

• Elect. Exp. Tax Rate

$ 000’s

Expected Tax Rate in 2018 Voter Pamphlet Current Expected Local Property Tax Rates

Local Levies Collecting Voter Approved

$8 $83,578 $7 $79,496 $1 $102,094 $9 $94,007 $8 $87,058 $6 $66,500 $5 $51,303 $5 $53,000 $6 $63,000 $6 $64,500 $2 $26,000 $3 $37,050 $4 $40,000 $4 $42,000 $4 $44,000 $8 $8,000 $2.79 $2.43 $2.39 $2.36 $2.14 $2.81 $2.80 $2.75 $2.71 $2.58

$0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2018 2019 2020 2021 2022

Debt Serv. Ed & Ops Cap & Tech School Bus Current Exp. Tax Rate

• Elect. Exp. Tax Rate

$ 000’s

Expected Tax Rate in 2018 Voter Pamphlet Expected Local Property Tax Rates Collecting Voter Approved

Local Enrichment Levy

0% 5% 10% 15% 20% 25% 30% $- $50 $100 $150 $200 $250 $300 $350 $400 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020

Enrichment Levy vs. Total General Fund Revenue

Other Revenue Enrichment Levy % Enrichment Levy

Short-term:

• Post budget and respond to inquiries
• Advertise budget hearing
• Hold budget hearing and ask for Board approval on August 29th
• Over the next year:
• Complete program evaluations
• Finalize monitoring mechanisms and timing for 2019/2020 investments
• Develop plan for analyzing spending patterns and improving efficiency
• Work with legislators regarding local levy opportunities

Next Steps

Additional Information

Capital Building Fund with no additional bonding authorization

Bond Projects $000’s Tillicum MS $243 Newport HS $250 Stevenson Elem. $1,188 Highland MS $36,550 Clyde Hill Elem. $3,405 Puesta del Sol $30,600 Big Picture $4,980 International $180 Tot

• tal Bond Projects

$7 $77,3 7,396 96 Staff Salary & Benefits $913 Bond Services $400 Other Misc. $100 Tot

• tal Man

anag agement $1 $1,41 ,413 Contingency $20,000 TOTAL BOND FUN FUND $9 $98,8 8,809 09

We will be proposing a Phase IV Construction program to the Board of Directors this fall. If the Board decides not to move forward with this next phase of construction, we anticipate the capital building fund will spend as follows over the 2019/2020 fiscal year. Total Available Funds: $118,280 EOY Fund Balance: $19,471

4-year General Fund Budget - Revenue

$000’s 2018 2018/2019 2019 2019/2020 2020 2020/2021 2021 2021/2022 2022 2022/2023 Revenues Local Taxes Local Non-Tax $58,120 $27,411 $51,710 $29,673 $52,870 $30,266 $54,201 $30,871 $55,483 $31,489 State – General State – Special $186,826 $47,269 $195,332 $50,246 $199,238 $51,251 $203,224 $52,276 $207,287 $53,322 Federal Other $12,315 $22,738 $13,187 $24,277 $13,187 $25,942 $13,187 $28,241 $13,187 $29,641 Total Revenue $354 $354,680 $364 $364,425 $372 $372,754 $381 $381,999 $390 $390,409

4-year General Fund Budget - Expenditures

$000’s 2018 2018/2019 2019 2019/2020 2020 2020/2021 2021 2021/2022 2022 2022/2023 Expenditures Basic Education $210,367 $218,106 $221,923 $225,252 $226,881 Special Ed Instruction $43,683 $47,914 $48,752 $49,483 $50,225 Career & Technical $8,510 $9,562 $9,729 $9,875 $10,023 Categorical Grants $19,385 $19,907 $20,255 $20,559 $20,867 Early Lrng. Community Serv. $13,456 $15,931 $16,210 $16,453 $16,700 Transportation $9,448 $11,392 Food Services $6,474 $6,993 District-wide Support $40,630 $43,744 $63,217* $64,165* $65,128* Total Exp Expenditures $351 $351,953 $373 $373,549 $380 $380,086 $385 $385,787 $389 $389,824 Bu Budgeted Revenue

• ver/(

/(under) Exp Expenditures $2,7 $2,726 ($9, ($9,124) ($7, ($7,322) ($3, ($3,788) $585 $585

*Includes Transportation and Food Service Expenditures