2011-12 PRELIMINARY BUDGETCentral Kitsap School District

June 22, 2011

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Agenda

• Background Facts

• Summary of 2011-12 General Fund Budget

• Loss of Federal Heavy Impact Update

• Projected 2012-13 General Fund Budget

• Other Funds

• Way Ahead

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BA

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CTSBackground Facts

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•State tools to build budget delivered June 15

•Numbers are still being refined

•2011-12 move to new state allocation model

•Alternative Learning Experience (ALE) and changes to Running Start have unknown impacts

•Current year cash flow provides difficult projection of Ending Fund Balance

SUMMARY OF GENERAL FUND 2011-12 BUDGET

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PRELIM

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S2011-12 Preliminary Budget Recommendations

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• Limit operating adjustments to maintain current programs except as noted below.

• Review each opening (classified, certified and administrative) to align staffing with projected enrollment. Limit additional hiring until the actual enrollment numbers are confirmed in August and September.

• Reduce the General Fund budget $3,205,808 by making the changes outlined on the following Slide 8: 2011-12 Preliminary Budget Recommendation

• Maintain as much of the Federal Contingency Reserve as possible following the current loss of Heavy Impact Funding.

• Continue all efforts to resume eligibility for federal Heavy Impact Aid funding.

• Continue the pursuit of Energy Conservation grants and upgrades.

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General Fund Reductions

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DESCRIPTION FTEESTIMATE SAVINGS IMPACT

Community Schools Secretary (reduced 2010-11) 0.5 $22,500 Slows work, leave coverage challenge

Energy Savings (Conservation and Reduced Computers) $96,000 None due to energy efficiency

Employee Access (not printing earnings statements) $4,000 Employees print own statementsReduced Computer Fees (software, licensing) $31,800 Working toward district ratios

Reduce Payroll Position 0.5 $22,000

Lowered level of service – retirement assistance will be handled by Department

of Retirement System

Maintenance Secretary (reduced 2010-11), Other Maintenance Reductions 0.3 $19,000

Includes printer energy savingsReduction in FTE

Curriculum / Alternative Reductions 1.6 $128,000Reduce Curriculum 1.1 FTE, Alternative

programs 0.5 FTEReduced Staff Development – DIS $8,508 Reduced days and opportunities for training

Total $331,808

Updated 6-3-11

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Targeted Area Reductions

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Former I-728 and K-4 Staffing Ratio 2010-11 Approx Expenditures

PreliminaryReductions for

2011-12K-6 Class Size (I-728) $1,800,000 Interventions $500,000 Diversity $80,000 Summer Academy Intervention $155,000 ($17,000)All Day Kindergarten $750,000 Eastside/Westside Mentoring $50,000 ($7,000)Extended Ed Trans/Culm. Projects $36,000 ($4,000)Building Targeted Assistance $132,000 ($132,000)

K-4 Enhanced Staffing Ratio $1,105,000 ($1,105,000)

TOTAL $4,608,000 ($1,265,000

State Provided $6,700,000 to District in 2007-08. No funding ($0) provided in 2011-12

2011-12 PRELIM

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N2011-12 Preliminary Budget Recommendation

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Reductions Final BudgetSpecial Ed (Safety Net, Medicaid)

Suspend I-728Eliminate K-4 Enhanced Staffing Ratio

Reduce Alternative Learning Experience 15%Eliminate Stimulus Funding

SUBTOTAL ($2,048,507)

Reduce Salary Allocations for Certificated, Classified, & Administrator Staff ($1,100,000)

TOTAL BUDGET SHORTFALL ($3,148,507)RECOMMENDED SOLUTIONS

Staff Salary Adjustments due to State Reductions $1,100,000Staffing Adjustments due to Enrollment $509,000

General Fund Reductions $203,808Targeted Reductions $1,265,000

Staffing Adjustments (Curriculum, Alternative Programs) $128,000TOTAL POSSIBLE SOLUTIONS $3,205,808

REVISED BUDGET SHORTFALL $57,301

Continued funding provided for:Gifted National Board Certified Bonus, Local Effort Assistance (LEA) or Levy Equalization

IMPLICATIONS OF LOSS OF FEDERAL HEAVY IMPACT AID

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LIFICATIO

NUpdate: Heavy Impact Aid Qualification

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Continued Efforts with Department of Education

Cooperative and ResponsiveFinal Determination…

OptionsAppeal “Final Determination”Legislative AmendmentReauthorizationResume Eligibility

Loss of Heavy Impact Funds

LOSS

OF

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2010-11 AN

D2011-12

Loss of Heavy Impact Funds 2010-11 and 2011-12

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$ Received in Millions General Fund

CapitalProjects

Total

Regular Impact Aid

Heavy Impact Aid

Heavy Impact Aid

All Impact Aid

2009-10 4.4 4.1 3.0 11.5

2010-11 4.2 0 0 4.2

2011-12 4.2 0 0 4.2

Budget Planned For In $ Millions

2009-10 4.4 4.1 2.5 11.0

2010-11 4.2 4.3 2.5-3.5 11.0-12.0

2011-12 4.2 4.3 2.5-3.5 11.0-12.0

Total Loss of Almost $8 million April 2010 and Another Potential $8 million April 2011:

General Fund and Capital Projects

TIM

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S”Timeline for Receiving Heavy Impact Dollars:

“Qualification Options”

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Dept of Ed Review Agreement

Legislative Amendment Passes

Reauthorization of ESEA (newlanguage)

Resume Eligibility Under Current Regulations

2010-11 X X

2011-12 X X

2012-13 X X Action Completed

2013-14 X X

2014-15 X X X

2015-16 X X X

“X” = remain qualified

Estimated 2010-11 Ending Fund Balance

Projected Ending Fund Balance 10-11 $ 11,500,000

Less HI Revenue $ (4,400,000)

Revised Ending Fund Balance 10-11 $ 7,100,000

Estimated 2011-12 Beginning Fund Balance

Inventory & Insurance $ 871,450

Carryover Balances $ 1,779,740

3% Reserve $ 3,239,481

Federal Contingency Reserve $ 1,333,710

Estimated Beginning Fund Balance 11-12 $ 7,224,381

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Loss of Federal Heavy Impact Aid and Change to Federal Contingency Reserve

EstimatedHeavy Impact With 2011

and 2012 PaymentFund Balance

2011-12

Estimated Heavy Impact Without 2011 or 2012

Payment

$ 1,779,740 Estimated Carryover Balances $ 1,779,740

$ 871,450 Inventory & Insurance $ 871,450

$ 3,239, 481 3% Reserve $ 3,239,481$ 1,333,710 Federal Contingency Reserve $ 1,333,710

$ 7,224,381 Beginning Fund Balance 11-12 $ 7,224,381

$ 116,182,714 Revenues $ 107,982,714

$(113,604,840) Expenditures $(113,604,840)

$1,850,000 Estimated Funds Not Expended $ 1,850,000

$ 11,652,255 Projected Ending Fund Balance 11-12 $ 3,452,255

$ 2,150,000 Carryover Balances $ 425,977

$ 1,021,450 Inventory & Insurance $ 621,450

$ 3,485,481 3% Reserve $ 3,218,141

$ 4,400,323 Federal Contingency Reserve $ -

$ 595,001 Fund Balance Over (Under) Recommendation $ (813,313)14

Fund Balance: Heavy Impact Aid Comparisons

Postpone Filling 1.0 Maintenance Technician $65,000

Move 0.5 Business FTE to Capital Projects $25,000

Suspend 20% Intervention Budget $100,000

Grants and other working reductions $208,000

Explore Additional Reduced Curriculum FTE $88,000

Suspend Cafeteria Table Replacement $30,000

Suspend Professional Development $50,000

Title II and Grants Excepted

Suspend or Reduce COE Support in GF $25,000

Suspend/Reduce Curriculum Materials $40,000

Limit and or Reduce NERCS $40,000

Suspend Intervention support for

Summer Academy 2012 $138,000

Total $812,000

Beginning “Considerations”: Potential Additional Reductions

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Other Considerations

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• Limit and or Restrict Spending

• Limit Posting of Vacant Positions

• Maintain 3% Reserve

• Identify Reductions for 2012-13 to Offset Loss of Heavy Impact

•Review Monthly and Revise Estimates Following End of Year Report in November

•Potential Budget Revision During the Year

PRO

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Projected 2012-13 Budget

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Carryforward from 2011-12 $ (3,772,126)2012-13 Basic Ed Enrollment Revenue Decrease $ (524,187)2012-13 Special Ed Enrollment Revenue Decrease $ (61,216)LEA Decrease $ (190,000)

Levy Increase $ 862,285 Staffing Adjustment for Enrollment

Operating Adjustments:Utilities $ (90,000)

S&B Rollup $ (75,000)Elections/Strategic Planning $ (15,000)

Insurance $ (35,000)State and Federal Reductions

Title I Stimulus Funds $ (188,000)Other State Reductions???

SUBTOTAL $ (4,088,244)

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Targeted Area Reductions Possible 2012-13

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Former I-728 and K-4 Staffing Ratio

2011-12 Approx

Expenditures

AdditionalReductions Considered

Possible 2012-13

ReductionsK-6 Class Size (I-728) $1,800,000 ($1,800,000)Interventions $500,000 ($100,000) ($400,000)Diversity $80,000 ($80,000)Summer Academy

Intervention $138,000 ($138,000)All Day Kindergarten $750,000 ($750,000)Eastside/Westside Mentoring $43,000 ($43,000)Extended Ed Trans/Culm.

Projects $32,000($32,000)

Building Targeted Assistance $0

K-4 Enhanced Staffing Ratio $0

TOTAL $3,343,000 ($238,000) ($3,105,000)

State Provided $6,700,000 to District in 2007-08. No funding ($0) provided in 2011-12

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Possible Budget Solutions 2012-13

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Possible 2012-13 Reductions (with current projections)

Enrollment Decline Reductions $ 269,250

Targeted Reductions $ 3,343,000

Title I Reductions $ 188,000

General Fund Reductions $ 300,000

Total $ 4,100,250

SUMMARY OF 2011-12 REMAINING FUNDS

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Capital Projects Fund

Capital Projects Fund: For the purchase of land, the construction and equipping of new facilities, major facility renovations, system repairs and corrections, and implementation of technology systems.

2009-10* 2010-11 2011-12

Beginning $10,061,641 $11,546,858 $11,000,031

Revenues $4,918,148 $3,457,209 $6,105,480

Transfers $0 $2,400,000 $188,642

Expenditures ($2,953,271) ($8,952,918) ($10,466,748)

Ending $12,026,518 $8,451,149 $6,827,405

* Actual

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Transportation Vehicle Fund and Debt Service Fund

Transportation Vehicle Fund : For the purchase and repair of equipment approved for pupil transportation.

2009-10* 2010-11 2011-12

Beginning $399,962 $201,680 $137,980

Revenues $788,006 $411,623 $577,297

Expenditures ($979,741) ($612,000) ($710,000)

Ending $208,227 $1,303 $5,277

* Actual 22

Debt Service Fund: Covers the principal and interest payments on outstanding bonds.

2009-10* 2010-11 2011-12

Beginning $6,512,284 $5,574,633 $2,084,432

Revenues $9,823,159 $6,359,542 $1,550,645

Expenditures ($10,695,480) ($9,896,313) ($3,106,281)

Ending $5,639,963 $2,037,862 $528,796

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Associated Student Body Fund

Associated Student Body Fund: For all student activities’ funds, such as clubs, student government, and some athletic programs.

2009-10* 2010-11 2011-12

Beginning $1,080,633 $742,934 $885,933

Revenues $1,490,748 $2,385,596 $2,337,728

Expenditures ($1,459,164) ($2,383,839) ($2,256,633)

Ending $1,112,217 $744,691 $967,028

* Actual

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NEXT

STEPSWay Ahead

• Continue budget review, revisions and edits July 2010

• Forward Preliminary Budget to OESD for review July 11th

and comment

• Updated Preliminary Budget and Formal Budget August 10th

Adoption Hearing

• Approval of 2011-2012 Budget August 24th

• File final budget with OESD September 2nd

• Review and Finalize 2012-2013 Budget September 2011Development Strategy

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