strategic planning/ budget process … · enrollment increased by 2,073 fte students vs. 1,523...

STRATEGIC PLANNING/

BUDGET PROCESS

MAY 8, 2017

Work/Study Session Purpose

Information

Discussion

Direction

Decision

2

Strategic Goals3

Session Overview 4

Update on 2016-17 budget picture

Review of potential legislative impacts

Update on 2017-18 strategic planning and budget

process

Review of current budget considerations

Key Questions5

What is the updated 2016-17 budget picture?

What are the potential impacts of legislative

proposals for 2017-18 and beyond?

What process will be used to align budget decisions

with organizational needs and identified strategic

work?

What is the Board’s feedback on current budget

considerations?

Our Mission

Each student will

graduate prepared to

lead a rewarding

responsible life

as a contributing

member of our

community and

greater society

Our Vision

Every Student

Future Ready:

•Prepared for College

•Prepared for the Global Workplace

•Prepared for Personal Success

Update on 2016-17 budget picture8

2016-17 Budget Status

The Board receives monthly Budget Status reports

Staff complete mid-year review in February to

project ending fund balances

9

General Fund

Beginning Fund Balance was higher than budgeted

Enrollment increased by 2,073 FTE students vs. 1,523 budgeted

Revenue and Expenditures lower than budgeted due to planned

contingencies

2016-17 Budget 2016-17 Estimated

Beginning Fund Balance $41.4 $45.2

Revenues $321.0 $318.6

Expenditures $318.4 $314.5

Ending Fund Balance $44.0 $49.3

10

Debt Service Fund

No changes from planned budget

2016-17

Budget

2016-17

Estimated


Revenues $54.0 $54.0


Other Financing Uses $0.0 $0.0


11

Capital Projects Fund

Beginning fund balance higher then planned due to project

work extending beyond August

Expenditures greater than budgeted due to updated bond

project spending

Required budget extension scheduled for June 2

2016-17

Budget

2016-17

Estimated


Revenues $46.6 $49.6

Transfers Out ($15.9) ($15.9)



12

What are the potential impacts of legislative

proposals for 2017-18 and beyond?

2017-18 Budget Planning 13

How School Funding Currently Works in

WA

Federal Dollars State Dollars Local Dollars

EP&O

Levy

Capital

Levy

Bond

Basic Education

• Teacher/staff salaries

• Materials and supplies

• Textbooks

X X X

Enhancements to Basic

Ed

• Athletics, activities

• Local programs (e.g.

New Teacher Support)

• Technology

X X

Buildings and

Classrooms

• New buildings

• Facility-related

upgrades

X State construction assistance available if

local funding is secured

X X

How School Funding is Supposed to

Work in WA

Federal Dollars State Dollars Local Dollars

EP&O

Levy

Capital

Levy

Bond

Basic Education

• Teacher/staff salaries

• Materials and supplies

• Textbooks

X X

Enhancements to Basic Ed

• Athletics, activities

• Local programs (e.g.

New Teacher Support)

• Technology

X X

Buildings and Classrooms

• New buildings

• Facility-related

upgrades

X State construction assistance available if

local funding is secured

X X

2016 - Commitment to the Community

Build schools and provide quality learning environments and experiences for our growing number of students and families while maintaining the 2015 tax rate

2015 rate:

$3.30 for levies and bond

2018 Levies and Bond

Replacement

Educational Programs and

Operations (EP&O) Levy

Replacement

Capital Projects Levy

2nd Phase – Long Term Plan

Bond

• Teacher planning, preparation

and training

• Special Education

• English Language Learners

• Athletics and activities

• Textbooks, insurance, utilities

and maintenance

Facilities

• Building Systems &

Improvements

• School & Program Improvements

• Code, Compliance, Health &

Safety

• Site Improvements, Athletics &

Playfield Upgrades

Technology

• Technology Infrastructure &

Support

• Equipment

• Instructional Software &

Support

• Business & Technology Systems

• Technology Training &

Professional Development

• Addition at Lake Washington

High School

• New LWLC elementary school

• Remodel or replace & enlarge

Kamiakin Middle

• ELC/RLC choice high school


Alcott Elementary

• Special Education learning

spaces

• Program contingency

• Land

Educational Programs & Operations

Levy

The levy lid establishes that districts can collect up

to X% of their total state and federal dollars from

the local community through passage of an EP&O

Levy

LWSD can currently collect up to 28.89% of state

and federal dollars

If the state fully funds Basic Education, then local

districts will not need to collect as many local levy

dollars

State Funding Proposals

SB 5023 HB 1843 SB 5607

• Delays levy cliff by one

year from 2017 to

2018

• Establishes that EP&O

may not be used for

Basic Ed but may be

used for enrichment

beyond the state

provided Basic Ed

funding.

• Requires OSPI to

approve EP&O levy

prior to election.

• Requires to separately

account for amount and

use of levy funds

• Phases down reduction

of 4% levy lid from

28.89% to 24% over

4 years

• Eliminates some

grandfathered dollars

from the state

calculation (“ghost”

money) in 2018

• Delays levy cliff by one year from 2017 to 2018

• Proposes State “Local Effort Levy” at $1.80 /$1,000

AV beginning 2018 to be placed before the voters

November 2017. Some of these funds come back to

the district in state funding.

• Eliminates district local levy in 2019

• Allows districts to collect local levy up to 10%

beginning 2020

• Requires OSPI to approve local district EP&O levy

prior to election

• Requires districts to separately account for amount and

use of local levy beginning in 2018-19

• Significant increase in 2018, decrease in 2019, and

potential increase in 2020

Levy Proposals

Estimated revenue increase (loss) from Levy Proposals (in millions)

2017-18 2018-19 2019-20 2020-21

2018 extension $2.0 ($3.1) ($1.6) $3.4

House $2.0 $6.1 $5.4 ($0.7)

Senate $2.0 ($35.7) ($17.1) $13.9

20

Assumptions:

2018 extension: Assumes COLA plus retirement increase, no other new revenue.

House: Assumes COLA plus retirement increase, plus funding increases for salary

allocation model change and MSOC

Senate: Assumes COLA plus retirement increase, no funding increases for per pupil

allocation or salary model as unable to determine

2018 Levies and Bond

Replacement

Educational Programs and

Operations (EP&O) Levy

Replacement

Capital Projects Levy

2nd Phase – Long Term Plan

Bond

• Teacher planning, preparation

and training

• Special Education

• English Language Learners

• Athletics and activities

• Textbooks, insurance, utilities

and maintenance

Facilities

• Building Systems &

Improvements

• School & Program Improvements

• Code, Compliance, Health &

Safety

• Site Improvements, Athletics &

Playfield Upgrades

Technology

• Technology Infrastructure &

Support

• Equipment

• Instructional Software &

Support

• Business & Technology Systems

• Technology Training &

Professional Development

• Addition at Lake Washington

High School

• New LWLC elementary school


Kamiakin Middle

• ELC/RLC choice high school


Alcott Elementary

• Special Education learning

spaces

• Program contingency

• Land

Budget Planning22

Legislative Proposals

Maintains prototypical funding model

Eliminates state salary schedule

Increases minimum salary for beginning teachers to $45,000 in 19-20

Makes progress toward increasing state responsibility for Basic Education compensation

2.3%, 2.7% COLA

Makes progress toward class size reduction

Implements weighted per pupil model

Eliminates state salary schedule

Increases minimum salary for beginning teachers to $45,500 in 18-19

No information on salary funding

.5% COLA

Makes progress toward class size reduction

23

House Proposal Senate Proposal

Revenue Scenarios based on OSPI Data

24

Non-committed revenue

Over 4-years

House: $88.7

Senate: $73.6

2017-18 2018-19 2019-20 2020-21

House Revenue +

EP&O Levy +22.1 +17.0 +37.9 +11.7

Senate Revenue

+ EP&O Levy+2.0 +23.0 +24.5 +24.1

Revenue Scenarios based on OSPI Data

Factoring in $3.30 local tax rate 25

Non-committed revenue

Over 4-years

House: $86.8/ $21.7 per year

Senate: $73.6/ $18.4 per year

2017-18 2018-19 2019-20 2020-21

House Revenue +

EP&O Levy +22.1 +13.8 +36.0 +14.9

Senate Revenue

+ EP&O Levy+2.0 +23.0 +24.5 +24.1

Potential Revenue Ranges 26

Low: Little to no new non-committed revenue

Mid: $9 – 11 million in new non-committed

revenue

High: $18 – 21 million in new non-committed

revenue

Review of current budget considerations

2017-18 strategic planning and budget process27

Strategic Plan28

Planning, Learning, Implementing, Evaluating

(PLIE) Cycle

Establish Desired

Outcomes using Data to Inform Direction

Step 1

Gauge Readiness to Implement

Step 2

Research and Development

Step 3a

Build Readiness to Implement

Step 3b

Implement

Step 4a

Support, Coach, Assist

Step 4bMonitor and

Collect Effectiveness

Data (quantitative &

qualitative)

Step 5

Refine Approach

Step 6

Assess Effectiveness

toward Meeting Desired

Outcomes

Step 7

Planning &

Learning Phase:

Steps1-3

Implementing Phase:

Steps 4 -6

Evaluating Phase:

Step 7

Source: Journal of National Staff Development Council

29

Supporting Strategic and

Ongoing Work 30

Success

Resources

Time

People

Budget & Strategic Planning

Process and Timeline 31

February March April May June August

• Staff

program

survey

deploys

• Board holds

Extended Study

Session

• Parent program

survey deploys

• District receives

legislative

funding level

and new

mandates

• Strategic

Planning Rep.

Group convenes

• Departments

receive

budget

information

for review

• DLT identifies

budget

addition

requests and

submits to

Business

Office

• SALT reviews

strategic plan and

budget requests

associated with

strategic work

• Board holds Study

Session

• SALT completes

recommendations

• Board holds

Study

Session

• Public

budget

presentation

• Public

feedback

period

begins

• Board

holds

public

hearing

• Board final

budget

approval

Budget Addition Request Process32

Describe request and projected costs

Provide rationale, origin, driving factors

Due to new regulation or conditions?

Outcome/impact if request is approved

Purpose and connection to student success

Alignment with district mission, vision, strategic goals

Impact if request not approved

Other alternatives considered – existing resources, other funding sources

Budget Addition Considerations 33

Can the request be funded from existing resources or other sources? (existing dept. budget, categorical, levy)

Does the request add resources needed to implement federal or state mandates/reforms?

Does the request restore areas that have been cut, or add in areas that have been historically underfunded?

Does the request address a need that is impeding our ability to function well as an organization?

Does the request add resources needed to accomplish specific current strategic initiatives?

Does the request add resources needed to accomplish future strategic goals and objectives or innovations?

Is the request one time or ongoing?

Overarching Budget Interests

Fiscal responsibility and solvency

Healthy organizational culture

Transparency

Balancing the needs of the organization

Efficiency and efficacy in processes

Clarity

Budget Categories

Organizational Capacity Strategic Outcomes Contractual/HandbookResources needed to meet the needs of the organization to function at desired performance levels

Resources needed to achieve desired strategic outcomes

Resources to attract and retain highly qualified staff

Growth, Legal Requirements, Service Levels Strategic Goals & Objectives Compensation and Working Conditions

Examples: Administrator Staffing Certificated Staffing Classified Staffing

o Health roomo Custodians

Quest testing

Examples: Professional Learning Supports

o Professional Learning Coaches Support for New Initiatives

o College and Career Ready Specialists

o Social Workers Support for Curriculum Adoptions

o Elementary Writing

Collective Bargaining Agreementso LWEA (2017)o Trades (2018)o LWESP (2019) o SEIU (2019)o Theater Managers and Workers

(2017)

Professional Handbookso Prof Tech (2018)o DLT (2018)

Budget Categories

Budget Decision Making Process – Part 1 36

• Go to SALT for consideration

DLT Requests*Needs of specific parts of the organization

• Go to superintendent for consideration

SALT Recommendations

*Needs of the entire organization

Budget Decision Making Process – Part 2 37

• Goes to Board for consideration

Superintendent Recommendation

*Legislative mandates *SALT recommendations*Superintendent assessment of needs of the organization

*Board, community priorities

*Short and long-term budget picture

• Goes to public for input

Board Decision

*Superintendent recommendation

*Community input

*Board priorities

Budget Categories

Organizational CapacityResources needed to meet the needs of the organization to function at desired performance levels

Growth, Legal Requirements, Service Levels

Examples: Administrator Staffing Certificated Staffing Classified Staffing

o Health roomo Custodians

Quest Testing Special Education Support

Requests come to superintendent through

the appropriate channel. SALT advises on

overall organizational needs.

Examples:• Administrator Staffing → Admin Model Committee

• Certificated Staffing → Staffing Process

• Health Room Staffing → DLT Budget Add Request

• Quest Testing → DLT Budget Add Request

Budget Categories

Strategic OutcomesResources needed to achieve desired strategic outcomes

Strategic Goals & Objectives

Examples: Professional Learning Supports

o Professional Learning Coaches Support for New Initiatives

o College and Career Ready Specialists

o Social Workers Support for Curriculum Adoptions

o Elementary Writing

Requests come to superintendent and are

processed and prioritized through SALT.

SALT makes recommendations.

Examples:• Professional Learning Coaches → DLT Budget Add

Request

• College and Career Ready Specialists → DLT Budget

Add Request

• Support for Curriculum Adoptions → DLT Budget

Add Request

Budget Categories

Contractual/HandbookResources to attract and retain highly qualified staff

Compensation and Working Conditions

Collective Bargaining Agreementso LWEA (2017)o Trades (2018)o LWESP (2019) o SEIU (2019)o Theater Managers and Workers

(2017)

Professional Handbookso Prof Tech (2018)o DLT (2018)

Decisions are made through the

appropriate bargaining or meet and

confer processes.

Required/Legal/Strategic 41

Vision screening

Highly capable testing

Custodial positions

ALE requirement

New Learning and Transition Center Classroom

Updated Psych/OT/SLP assessments

Dual language immersion planning

7-period day planning

Multi-tiered System of Support (MTSS)

Equity

Organizational Capacity:

Service Level/Growth 42

Human Resources: 3

Facilities: 2

Special Education: 4

Professional Learning: 1

School/Transition: 1

Graduation Support: 1

Organizational Capacity:

Enhance Service Level43

Special Education: 11

Technology Integration: 1

Technology: 1

Kiln for ICS: 1

Summer School Offerings: 1

Strategic Outcomes44

Curriculum: 3

Professional Learning: 1

Intervention: 2

AVID: 2

Technology Integration: 1

Contractual/Handbook45

Collective Bargaining Agreements

LWEA (2017)

Theater Managers and Workers (2017)

Trades (2018)

LWESP (2019)

SEIU (2019)

Professional Handbooks

Prof Tech (2018)

DLT (2018)

strategic planning/ budget process … · enrollment increased by 2,073 fte students vs. 1,523...

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