west sideregionaldeputysuptmikenewmanasd finance1 28-11
DESCRIPTION
Depty Supt. Mike NewsTRANSCRIPT
Navigating Budget ChallengesNow and In the FutureMike Newman – Deputy SuperintendentAuburn School DistrictJanuary 28, 2011
Agenda
Background on Budgets 2009-2011 Fiscal Crisis 2011-2013 Fiscal Crisis II
Current Issues Things to Think About
Communications Tax Rates Consistent Message What if your Wrong?
Tools
Budget Drivers
General Fund Budget Student Enrollment Legal Requirements Current Programs Negotiated Agreements District Priorities
Other Funds Capital Project Debt Service Transportation Vehicle Associated Student Body
Budget Challenges
What do we value? Who determines what we value? When will we know revenues? Legal Requirements Strategic Plans Student Achievement Costs of Doing Business 3 -Year Projections
Budget Challenges
Who needs to know and when Superintendent School Board Administrators Staff Community Media Legislators
Communicating Budget Issues Fundamental Concerns
Jobs Supplies and Materials Student Achievement Implementation of District and School
Goals Learning Environments - Facilities
Other Concerns Political Associations
2009-2011 Fiscal Crisis
Superintendent’s Worst Nightmare
Reduction in Force Determination of
Actions Needed Timelines Communication
Plan ▪ Board prior to Public
Meeting▪ Administrators▪ Association
Leadership▪ Employees▪ Community Meetings
Auburn School District’s Action
Resolution 1107 – Reduction in Force Phase I – RIF Notifications Program Priorities Budget
Phase IIA Phase IIB Phase IIC
Begin Recall of Teachers
2011-2013 Fiscal Crisis II
Auburn School District 2010-11 Mid-Year Reductions
What does the Budget Freeze mean?
Why The Budget Freeze Now?
2010-11 State Budget Mid -Year Reduction $1.1 Billion Dollar Shortfall in State
Revenue
Impacts on Auburn School District Total estimated impact is $5.6 Million
Reduction for the CURRENT SCHOOL YEAR
What Caused this Situation
State and National Economic Crisis
What Caused this Situation
State and National Economic Crisis Loss of State Revenue
State Funding largely based on Sales Tax
What Caused this Situation
State and National Economic Crisis Loss of State Revenue
State Funding largely based on Sales Tax Conservative Spending Unemployment Fear
How are we addressing this in the Auburn School District?
Pieces to the Puzzle
Use of $4.4 Million of Reserve
Pieces to the Puzzle
Use of $4.4 Million of Reserve
Spending Freeze
Pieces to the Puzzle
Use of $4.4 Million of Reserve
Spending Freeze
Hiring Freeze
Cut Spending $1.25 Million
Pieces to the Puzzle
Use of $4.4 Million of Reserve
Spending Freeze
Hiring Freeze
Goal of the Spending Freeze is a $1.25 Million reduction of Expenditures
Future Legislative Impacts 2011-12 Budget Impacts
Decisions still to be determined
Know there will be reductions in Revenue Loss of $2.5 million ARRA monies from Feds
Additional work will be needed as the Puzzle Pieces are provided (taken away)
Tools for Budget Communications
Dashboards
Program Account DescriptionRev Budget Current Year-to-Date Encumb Balance FY %
LAP 55-- -- ---- --- ---- ---- 40,155 2648 11,783 0 28,372 29.34%
Title I 51-- -- ---- --- ---- ---- 30,130 3640 12,602 0 17,528 41.83%
Title II 52-- -- ---- --- ---- ---- 24,426 3870 4,870 0 19,556 19.94%
Teachers 0100 27 ---- --- ---- ---- 210,145 25591 55,423 0 154,722 26.37%
Special Ed 21-- -- ---- --- ---- ---- 38,454 6211 14,673 0 23,781 38.16%
Fed Stim Title 11-- -- ---- --- ---- ---- 19,367 325 325 0 19,042 1.68%
CTE Teachers 31-- -- ---- --- ---- ---- 21,500 1249 6,267 0 15,233 29.15%
ALTA Teacher Leadership 0104-- ---- --- ---- ---- 45,000 0 10,550 0 34,450 23.44%
Fed Stim Sped 14-- -- ---- --- ---- ---- 120 60 420 0 (300) 350.00%
IDEA Sped 24-- -- ---- --- ---- ---- 425 300 905 0 (480) 212.94%
Spec Projects 58-- -- ---- --- ---- ---- 3,061 0 180 0 2,881 5.88%
Fed ELL 64-- -- ---- --- ---- ---- 10,315 550 1,285 0 9,030 12.46%
High Cap 74-- -- ---- --- ---- ---- 3000 420 960 0 2,040 32.00%
CPPW Grant 7918 -- ---- --- ---- ---- 11,880 0 4,150 0 7,730 34.93%
Athletics and Activities 0100 28 ---- --- ---- ---- 0 276 444 0 (444) #DIV/0!
Counselors 0100 24 ---- --- ---- ---- 0 0 130 0 (130) #DIV/0!
Librarians 0100 22 ---- --- ---- ---- 1000 380 2,191 0 (1,191) 219.10%
Other Grants 79-- -- ---- --- ---- ---- 1,905 480 480 0 1,425 25.20%
Total 460,883 46,000 127,638 0 333,245 27.69%
December Report
0 50,000 100,000 150,000 200,000 250,000
LAP
Title I
Title II
Teachers
Special Ed
Fed Stim Title
CTE Teachers
ALTA Teacher Leadership
LAP Title I Title II Teachers Special EdFed Stim
Title CTE TeachersALTA
Teacher Leadership
Expended 11,783 12,602 4,870 55,423 14,673 325 6,267 10,550
Budget 40,155 30,130 24,426 210,145 38,454 19,367 21,500 45,000
Instructional Substitutes
0 2000 4000 6000 8000 10000 12000 14000
Fed Stim Sped
IDEA Sped
Spec Projects
Fed ELL
High Cap
CPPW Grant
Athletics and Activities
Counselors
Librarians
Other Grants
Fed Stim Sped IDEA Sped Spec Projects Fed ELL High Cap CPPW GrantAthletics and
Activities Counselors Librarians Other Grants
Expended 420 905 180 1,285 960 4,150 444 130 2,191 480
Budget 120 425 3,061 10,315 3000 11,880 0 0 1000 1,905
Instructional Substitutes for Programs less than $12,000 Budgeted Costs
2009-10 2010-11 2010-11 Change Change
Actuals First Budget Updated Budget Budget 2009-10
Teaching Activities - Teaching activities, instructional materials and all $82,861,957 $89,570,421 $88,957,209 ($613,212) $6,095,252
extracurricular activities (e.g. coaching and activity advising) 62.54% 62.60% 62.17%
Teaching Support - Library services, guidance and counseling, pupil management $12,709,997 $12,861,753 $13,037,001 $175,248 $327,004
and safety, psychology, speech and language services, health services and 9.59% 8.99% 9.11%
payments to other districts for services for students
Building Administration-Cost of managing and coordinating a school $8,410,147 $8,542,760 $8,497,710 ($45,050) $87,563
6.35% 5.97% 5.94%
Building Operations - Operation and maintenance of facilities, grounds, utilities $11,958,194 $13,798,361 $14,028,415 $230,054 $2,070,221
and insurance of buildings. 9.03% 9.64% 9.80%
Central Supervision - District wide administration (e.g. curriculum, special education $5,093,844 $5,536,577 $5,960,592 $424,015 $866,748
career and technical education, personnel, business operations, public information 3.84% 3.87% 4.17%
and legal services)
Transportation - The cost of operation and maintenance of buses (e.g. drivers, $5,438,003 $6,191,654 $6,073,671 ($117,983) $635,668
mechanics, fuel, parts and insurance) 4.10% 4.33% 4.24%
Food Services - Food, supplies, personnel and operational costs of the $4,763,731 $5,155,065 $5,089,548 ($65,517) $325,817
Food Services program that provides breakfast and lunch to students. 3.60% 3.60% 3.56%
Other Support Services - Costs of data processing, printing, warehouse $1,263,922 $1,432,199 $1,444,644 $12,445 $180,722
and distribution and public activities. 0.95% 1.00% 1.01%
Totals $132,375,225 $143,088,790 $143,088,790 $0 $10,713,565
2009-10 2010-11 2010-11 Change Change
Actuals First Budget Updated Budget Budget 2009-10
Beginning Fund Balance $8,711,223 $9,370,089 $10,908,255 $1,538,166 $2,197,032(1) (2) (3)
Revenues Local Taxes $25,105,694 $27,520,857 $27,520,857 $0 $2,415,163
Local Non-Tax $3,738,965 $5,246,303 $3,746,364 ($1,499,939) $7,399
State Funds General Purpose $72,606,755 $74,323,382 $73,790,292 ($533,090) $1,183,537
State Funds Special Purpose $14,887,088 $15,225,204 $15,189,011 ($36,193) $301,923
Federal Funds General Purpose $138,243 $139,849 $138,206 ($1,643) ($37)
Federal Funds Special Purpose $17,283,763 $14,475,375 $16,740,825 $2,265,450 ($542,938)
Revenues from Other Districts $874,690 $978,103 $883,018 ($95,085) $8,328
Revenues from Other Agencies $57,875 $102,500 $3,000 ($99,500) ($54,875)
Other Financing Sources $3,755 $0 $0 $0 ($3,755)
Total $134,696,828 $138,011,573 $138,011,573 $0 $3,314,745
Total Resources $143,408,051 $147,381,662 $148,919,828 $1,538,166 $5,511,777
Expenditures Regular Instruction $73,329,916 $79,130,063 $76,871,712 ($2,258,351) $3,541,796
Federal Stimulus $5,056,677 $2,395,082 $4,269,503 $1,874,421 ($787,174)
Special Education $13,821,513 $14,281,831 $14,871,913 $590,082 $1,050,400
Career and Technical Education $5,561,182 $6,464,719 $6,468,625 $3,906 $907,443
Compensatory Education $7,495,509 $7,950,948 $7,983,494 $32,546 $487,985
Other Instructional Programs $537,891 $2,570,035 $2,218,585 ($351,450) $1,680,694
Community Services $802,148 $879,493 $975,780 $96,287 $173,632
Support Services $25,894,960 $29,416,619 $29,429,178 $12,559 $3,534,218
Total $132,499,796 $143,088,790 $143,088,790 $0 $10,588,994
Ending Fund Balance $10,908,255 $4,292,872 $5,831,038 $1,538,166 ($5,077,217)
Actual Budgeted Budgeted
Percent of Fund Balance to Total Resources 7.61% 2.91% 3.92%
Notes: (1) Beginning Fund Balance from Actual Ending Fund Balance from 2008-09(2) Projected Fund Balance - Estimated in the spring based on expenditure trends(3) Beginning Fund Balance from Actual Ending Fund Balance from 2009-10
2009-10 2010-11 2010-11 Change Change
Actuals First Budget Updated Budget Budget 2009-10
Students FTE 13,807.47 13,780.00 13,700.00 (80.00) (107.47)
Certificated Staff 890.33 882.54 887.84 5.30 (2.49)
Classified Staff 540.96 531.92 537.95 6.03 (3.01)
Total Staff 1431.29 1414.46 1425.79 11.33 (5.50)
First Budget First Budget First Budget First Budget First Budget First Budget Updated
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2010-11Terminology: $7,122,174 $5,201,267 $4,799,544 $5,957,002 $8,646,678 $9,370,089 $10,908,255
Projected Fund Balance is the estimate $102,368,445 $111,546,783 $122,356,840 $133,200,978 $134,349,968 $138,011,573 $138,011,573
in the spring of the dollars that w ill be $109,490,619 $116,748,050 $127,156,384 $139,157,980 $142,996,646 $147,381,662 $148,919,828
available for the next f iscal year. $107,540,979 $115,450,408 $125,181,971 $136,092,758 $139,178,100 $143,088,790 $143,088,790
$1,949,640 $1,297,642 $1,974,413 $3,065,222 $3,818,546 $4,292,872 $5,831,038
Budgeted Fund Balance is the Actual Actual Actual Actual Actual Actual
amount designated in the First Budget. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
$7,000,819 $5,192,713 $4,793,492 $7,202,333 $8,711,223 $10,908,255
Actual Fund Balance is the amount of $104,086,604 $113,643,010 $124,143,930 $133,884,115 $134,696,828
money at the end of the f iscal year. $111,087,424 $118,840,633 $128,937,422 $141,086,448 $143,408,051
These funds include the budgeted fund $105,894,711 $114,047,141 $121,735,089 $132,375,225 $132,499,796
balance and the under spend. $5,192,713 $4,793,492 $7,202,333 $8,711,223 $10,908,255
4.67% 4.03% 5.59% 6.17% 7.61%Fund Balance Percent of
Total Resources
Total Resources
Projected Expenditures
Budgeted Fund Balance
Enrollment and Staffing
Fund Balance History
Actual Fund Balance
General Fund Expenditures
First Budget F-195Projected Beginning Fund
Projected Revenues
Actual Expenditures
Actual F-196Beginning Fund Balance
Actual Revenues
Total Resources
Base Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year
Assumptions 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Assessed Valuation $7,229,709 $8,144,054 $9,213,142 $9,978,246 $10,034,296 $10,034,296 $10,335,325 $10,645,384 $11,064,236 $11,396,163
( /$1,000)
Assessed Valuation 4.67% 12.65% 13.13% 8.30% 0.56% 0.00% 3.00% 3.00% 3.93% 3.00%
% of change (actual) (actual) (actual) (actual) (projected) (projected) (projected) (projected) (projected) (projected)Includes Pierce County AV
Educational Program Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year
& Operations (M & O) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Levy Amount $19,100,000 $20,759,650 $22,100,204 $24,325,407 $27,100,000 $28,900,000 $30,900,000 $31,827,000 $33,000,000 $34,100,000
Proj Tax Rate $2.76 $2.78 $2.78 $2.54 $2.70 $2.88 $2.99 $2.99 $2.98 $2.99(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)
Actual Tax Rate $2.64 $2.55 $2.40 $2.44
(actual) (actual) (actual) (actual)
Technology Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year
Levy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Levy Amount $950,000 $1,900,000 $2,500,000 $2,750,000 $2,000,000 $1,900,000 $0 $0 $0 $0
Proj Tax Rate $0.14 $0.27 $0.34 $0.37 $0.20 $0.19 $0.00 $0.00 $0.00 $0.00
(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)
Actual Tax Rate $0.13 $0.23 $0.27 $0.28
(actual) (actual) (actual) (actual)
Capital Improvements Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year
Levy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Levy Amount $1,340,000 $0 $0 $0 $12,000,000 $10,000,000 $11,700,000 $3,900,000 $4,400,000 $4,400,000
Proj Tax Rate $0.19 $0.00 $0.00 $0.00 $1.20 $1.00 $1.14 $0.37 $0.40 $0.39
(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)
Actual Tax Rate $0.19 $0.00 $0.00 $0.00
(actual) bus levy (actual) (actual) (actual)
Debt Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year
Service 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Current Debt Service $17,352,457 $17,407,000 $16,630,675 $16,651,719 $8,313,075 $8,634,069 $8,280,894 $8,498,481 $8,726,000 $8,957,000
Proj Tax Rate $2.27 $2.32 $2.26 $1.67 $0.83 $0.86 $0.80 $0.80 $0.79 $0.79
(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)
Actual Tax Rate $2.40 $2.14 $1.81 $1.66
(actual) (actual) (actual) (actual)
Combined Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year
Rates 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Combined Levy Amt. $38,742,457 $40,066,650 $41,230,879 $43,727,126 $49,413,075 $49,434,069 $50,880,894 $44,225,481 $46,126,000 $47,457,000
Proj Tax Rate $5.36 $5.37 $5.38 $4.58 $4.93 $4.93 $4.93 $4.15 $4.17 $4.16
(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)
Actual Tax Rate $5.36 $4.92 $4.48 $4.38
(actual) (actual) (actual) (actual)
COMBINED LEVY AND BOND AMOUNTS AND PROJECTED TAX RATES 2010-2015
Web Sites
OSPI Web Site – Finance and iGrants School Apportionment and Financial
Serviceshttp://www.k12.wa.us/SAFS/default.asp
WASA – TWIO (This week in Olympia) Other district’s web sites Develop District Information for Web
Site
Staff
Select People for Various Groups Administrators Principals Trusted Community Members Teachers Association Presidents
Another Wrinkle
Legislation and Other Groups 2261 - Prototypical School Funding 6696 – Accountability and School
Improvement▪ CORE 24 (College and Career Readiness)▪ Early Learning
Stand for Children League of Education Voters CCER (Community Center for Education
Results)
Question and Answer