Budget Summary August 22, 2013

Transcription

1 Budget Summary August 22,

2 Introduction This document summarizes Tumwater School District s budget for the school year (September 1, 2013 through August 31, 2014). A public hearing on the budget will be held at 7:30 p.m., on Thursday, August 8, 2013 at the District Administrative Office at 621 Linwood Ave. SW, Tumwater. The budget will be adopted by the Tumwater School Board on August 22, Questions and comments about this budget can be directed to: Donna Morey Director of Finance Phone: (360) donna.morey@tumwater.k12.wa.us The budget is prepared in compliance with state laws and the instructions of the state Office of Superintendent of Public Instruction. The budget is organized in separate funds, each with its own purpose, sources of revenue, and fund balance. These funds are: General Fund* for regular operating costs of the district Debt Service Fund for repayment of long-term debt Capital Projects Fund* for building construction and remodeling Transportation Vehicle Fund for purchase of school buses Associated Student Body Fund for student activities School district expenditures for each fund cannot exceed the amount approved in the budget unless amended by the school board after public notice and hearing. * Separate accounts and fund balances are maintained for New Market Skills Center and Tumwater West Detention Center, which are regional facilities managed by Tumwater School District. 1

3 Fund Summary Budget General Debt Capital Transp. Fund ASB Service Projects Vehicle Beginning Fund Balance $4,969,770 $363,404 $7,154,474 $1,993,000 $150,000 Revenues 64,537,431 1,662,195 10,283,919 25,716, ,000 Transfer In 300,000 Expenditures (Appropriation) 64,967,701 1,714,979 10,183,694 5,283, ,000 Transfer Out 300,000 Revenues Over (Under) Exp. (430,270) (52,784) (199,775) 20,732,700 (143,000) Ending Fund Balance $4,539,500 $310,620 $6,954,699 $22,725,700 $7,000 Ending Fund Balance Detail Nonspendable 400,000 Restricted 10, ,620 22,552,700 Committed to Skills Center 431,802 Committed to Min Fund Bal 2,245,840 Committed to Tumwater West Committed State Forest 45,575 Assigned to MS Reconfiguration 800,000 Assigned to Turf Replacement 60,000 Assigned to Fund Purposes 6,909, ,000 7,000 Unassigned 591,453 Total Fund Balance 4,539, ,620 6,954,698 22,725,700 7,000 2

4 Budget Highlights General Fund Revenues Improve After four years of budget cuts, funding improves in the school year. The Supreme Court ruling in the McCleary lawsuit required the legislature to increase funding to meet the state s paramount duty for funding public schools. The Legislature provided about one billion dollars of additional funding statewide in the biennial (two-year) budget adopted on June 30 th. For Tumwater School District the increases included: About $1.0 million for materials supplies and operating costs (MSOC), an increase of $ per full-time equivalent (FTE) student; Almost $0.5 million additional for pupil transportation, which is currently under-funded by about $1.0 million; About $300,000 for struggling students through the Learning Assistance Program (LAP); and About $180,000 more in the state levy equalization formula designed to help property poor school districts. These state funding increases combined with almost $0.5 million levy revenue approved by voters provide flexible funding to continue gains in student learning and meet pressing demands. Tumwater School District does not benefit from increased state funding for all-day kindergarten and K-3 class size reduction, which is reserved for the highest poverty schools in the state. Federal funding cuts known as sequestration reduced some federal grants but the losses were offset by increased Title I funding due to updated poverty information from the 2010 census. Spending Priorities The additional revenue comes none too soon, as the district confronts large unfunded demands: The state has approved a new nationally recognized Common Core curriculum and new student assessment system called Smarter Balance that must be implemented by the school year. This change will require review and realignment of curriculum in core subjects and retraining teachers in the new curriculum and assessment system. In 2010 the Legislature approved a major overhaul in the way teachers and principals are evaluated. The Teacher and Principal Evaluation Pilot (TPEP) has been underway in Tumwater in the current year and will expand to all teachers and principals by the school year. Teacher evaluations rely on new instructional frameworks that define teaching practices that will be assessed in evaluations. The new high stakes evaluations can lead to termination for low scoring teachers. Phasing in TPEP requires professional development for teachers and increased workload for principals performing evaluations. 3

5 Budget Highlights General Fund (continued) 4 Pressing Demands (continued) The state has informed the district that our program for highly capable students does not meet state standards. To comply, the district is creating a magnet program for highly capable students significantly increasing program costs at district expense. After four years without pay increases and rapidly growing health care costs the district is challenged to remain competitive for attracting and retaining high quality staff. Most collective bargaining agreements are still open for the coming year and there is a large pent up demand for better compensation and benefits. Student shootings at Sandy Hook Elementary in Connecticut, and school violence elsewhere make school safety a new priority. The district is looking at ways to make our schools safer and to provide support for students with emotional needs. The district s growing cultural diversity is requiring new support for parents and students for whom English is a second language. The district must translate many documents and provide interpreters for parents who need this support. The district enters the third year of a five year strategic plan that sets goals and requires action on many fronts, from improving instruction to reducing childhood obesity and promoting healthy eating habits. Each of these pressing demands requires resources not directly funded from state and federal sources. The revenue improvements described above help, but do not meet all needs. Salary and Benefit Impacts Two years ago, the state cut salary allocations by 1.9% for teachers and classified staff and 3.0% for administrators. These cuts are restored in the coming year, but, cost of living increases are not funded. The state health benefit allocation remains unchanged while medical premiums increase by about 16% for most employees. The state provides funding to increase employer payments to retirement systems, but only for state funded staff. The district will absorb the addition pension cost for federally and locally funded staff. Fund Balance The district begins the year with a fund balance of about $5.0 million dollars; the equivalent of about one month s operating costs. Much of this is legally restricted or set aside for designated purposes. Board policy requires a minimum unrestricted fund balance of 4% or about $2.2 million. After considering the restricted amounts the district expects to begin the school year with about $1.0 million above the 4% minimum fund balance. The Draft budget would spend down about $430,000 of that amount.

6 Enrollment Trends The chart below shows Tumwater School District s student enrollment trends excluding New Market Skills Center, Tumwater West, and Running Start. District enrollment has been relatively flat for the past seven years in range between 5,600 and 5,800 full-time equivalent (FTE) students. The budget assumes a increase of about 15 FTE students above the current year s actual enrollment. During this time New Market Skills Center enrollment has grown and declined. 5,900 Enrollment Trends - TSD Only 5,800 5,700 5,600 5,500 Actual Budgeted 5,400 5, * TSD Budgeted 5,751 5,791 5,702 5,669 5,640 5,720 5,610 5,690 TSD Actual 5,748 5,722 5,697 5,703 5,748 5, Skills Center Running Start Total 6,336 6,382 6,435 6,518 6,513 6,415 6,394 6,394 5

7 General Fund Budget Compared to * $ Change Pct Chg Revenues/Other Financial Sources Local Taxes $12,727,405 $13,261,284 $533, % Local Support Nontax 2,132,347 2,088,597 (43,750) -2.1% State General Purpose 34,346,584 36,850,130 2,503, % State Special Purpose 7,015,019 8,074,233 1,059, % Federal 4,222,883 3,991,965 (230,918) -5.5% Other 322, ,222 (50,933) -15.8% Total Revenues $60,766,393 $64,537,431 $3,771, % Expenditures Certificated Salaries $26,931,892 $28,437,928 $1,506, % Classified Salaries 10,162,425 10,607, , % Employee Benefits 12,550,778 14,004,293 1,453, % Supplies and Materials 3,753,439 3,887, , % Purchased Services 7,361,009 7,694, , % Travel 117, ,466 27, % Capital Outlay 144, ,681 44, % Total Expenditures 61,021,951 64,967,701 3,945, % Transfers Out 95,000 0 (95,000) Other Financial Uses 316,380 0 (316,380) Exp., Transfers & Uses $61,433,331 $64,967,701 $3,534, % Revenues Minus Exp. ($666,938) ($430,270) $236,668 * From budget. 6

8 General Fund Revenue Compared to Difference % Chg Local $14,859,752 $15,349,881 $490, % Property Tax* 12,727,405 13,261, , % Non-Tax 2,132,347 2,088,597 (43,750) -2.1% State 41,361,603 44,924,363 3,562, % General Purpose 34,346,584 36,850,130 2,503, % Special Purpose 7,015,019 8,074,233 1,059, % Federal 4,222,883 3,991,965 (230,918) -5.5% On-Going Programs 4,222,883 3,991,965 (230,918) -5.5% Stimulus Other Revenues 322, ,222 (50,933) -15.8% Agencies & Assoc. 289, ,222 (50,933) -17.6% Other Sources 33,000 33, % Trans from Cap Proj Total $60,766,393 $64,537,431 $3,771, % * From original budget. 7

9 General Fund Revenues by Source Chart State $44,924,363 Federal $3,991, % Misc. $271, % 70.0% 20.6% Local Levy $13,261, % Local Nontax $2,088,597 Total Revenues: $64,537,431 8

10 General Fund Expenditures by Object Compared to * Difference % Chg Certificated Salaries $26,931,912 $28,437,928 $1,506, % Classsified Salaries 10,162,428 10,607, , % Employee Benefits 12,550,778 14,004,293 1,453, % Supplies & Materials 3,753,416 3,887, , % Purchased Services 7,361,009 7,694, , % Travel 117, ,466 27, % Capital Outlay 144, ,681 44, % Total $61,021,951 $64,967,701 $3,945, % * From original budget. Excludes $95,000 transfer to Capital Projects and $316,380 budgeted payment to another school district. 9

11 General Fund Budget by Object - Chart Supplies & Instructional Materials $3,887,722 Purchased Services $7,694, % 11.8% Travel (0.2%) $145,466 Capital Outlay (0.3%) $189, % Salaries & Benefits $53,050,049 Total Expenditures: $64,967,701 10

12 General Fund Budget Expenditures by Activity Amount Percent Prior %* Teaching & Teaching Support 45,831, % 70.3% Principal's Office 4,441, % 6.9% Other Support Activities 10,697, % 16.5% Food Service 1,767, % 2.8% Pupil Transportation 2,486, % 3.6% Insurance 571, % 0.8% Utilities 1,646, % 2.7% Building & Grounds 3,632, % 5.8% Non-Instructional Info Systems 393, % 0.6% Other Public Activities 200, % 0.3% Central Administration 3,997, % 6.2% Board of Directors 184, % 0.2% Superintendent's Office 516, % 0.8% Public Information 60, % 0.1% Business Office 651, % 1.0% Human Resources Office 517, % 0.8% Supervision of Instruction 1,401, % 2.3% Supervision of Operations 665, % 1.1% Total** 64,967, % 100.0% * Percent of total expenditures in Budget. 11

13 General Fund Budget by Activity Chart Other Support Activities $10,697,512 Central Administration $3,997, % 16.5% Principal's Office $4,441, % 70.5% Teaching & Teaching Suppport $45,831,570 Total Expenditures: $64,967,701 12

14 General Fund by Program Tumwater Schools Only (Excluding Skills Center and Tumwater West) Revenue Expenditures Difference Basic Education Programs 01 Basic Education* $44,207,188 $35,111, Alt Learnng Experience 350, , Career & Technical Ed 1,788,877 1,616, Tum West Indirects 17, Summer School 2,750 16, Districtwide Support 196,300 7,843,396 Subtotal 46,562,115 44,886,052 1,676,063 Other Categorical Programs 21 State Special Education 5,117,869 6,048,121 (930,252) 02 State Birth to Three Prog 248, , , Federal Special Education 1,128,946 1,099,029 29, Federal Career & Tech Ed 19,106 19, Title I Disadvantaged 863, ,467 12, Title II Prof Devel 476, ,438 11, Learning Assistance 939, ,968 22, Special & Pilot Prog 215, , Federal English Language 15,131 14, Bilingual 93, ,351 (45,250) 71 Traffic Safety Education 110, , Highly Capable 63, ,833 (168,009) 79 Other Instructional Prog 54,336 54, Non-To-From Transportation 31,000 29,012 1, Food Service 1,890,625 1,898,059 (7,434) 99 Pupil Transportation 1,950,000 3,010,694 (1,060,694) Total Tumwater Schools* 59,779,809 60,129,794 ($349,985) * All local levy and levy equalization revenue is included in Basic Education revenue in this display. 13

15 General Fund Budget by Program All Schools Revenue Expenditures Difference Total Tumwater Schools $59,779,809 $60,129,794 ($349,985) New Market Skills Center Loc 650 Skills Center Basic $3,326,423 $3,326,423 0 Loc 653 New Market High School 355, ,452 0 Loc 655 Summer School Program 660, , ,342,622 4,342,622 0 Tumwater West Detention Center 56 State Institutions 370,000 $437,803 (67,803) 51 Title I Neg & Delinquent 45,000 57,482 (12,482) 415, ,285 (80,285) Total All Schools * $64,537,431 $64,967,701 ($430,270) 14

16 General Fund Budget Balance Sheet Estimates Estimated Beginning Fund Balance $4,969,770 Restricted for Imprest and Change Funds 10,405 Restricted for Carryover of Revenues 40,000 Nonspendable - Inventory & Prepaid Items 400,000 Reserved for New Market Skills Center 431,802 Committed to Minimum Fund Balance (4%) 2,245,840 Reserved for Tumw ater West Detenton Center - Assigned to Seventh Elem/Middle School Trans 800,000 Assigned to Turf Replacement 60,000 Unassigned Fund Balance 981,723 Revenues & Financing Sources 64,537,431 Expenditures 64,967,701 Revenues Over (Under) Expenditures (430,270) Budgeted Ending Fund Balance 4,539,500 Restricted for Imprest and Change Funds 10,405 Restricted for Carryover of Revenues - Nonspendable - Inventory & Prepaid Items 400,000 Reserved for New Market Skills Center 431,802 Committed to Minimum Fund Balance (4%) 2,245,840 Assigned to Seventh Elem/Middle School Trans 800,000 Assigned to Turf Replacement 60,000 Unassigned Fund Balance 591,453 Note: The beginning fund balance assumes Tumwater School District (excluding New Market Skills Center and Tumwater West) will spend down the available fund balance above 4% by $300,000 in the school year. 15

17 Budget Highlights Other Funds Capital Projects Fund It has been more than ten years since the voters approved bonds for capital projects. Building systems are failing requiring expensive repairs and district technology is rapidly aging. The Capital Budget assumes passage of a bond levy in Money provided would be put to work immediately to: Begin updating the district s aging computers and technology infrastructure; Plan for replacement of Peter G. Schmidt and Littlerock elementary schools; Plan expansion of Tumwater and Bush middle schools to accommodate 6 th grade students; Take care of school safety and security needs; Provide matching money for grants funding improvements to save energy; and Pursue longer term plans acquiring portables for acquiring building sites for future growth. Debt Service Fund The district s debt repayment schedule was designed to spread property taxes uniformly in future years with a relatively stable tax rate. Although dramatic changes in property assessed values have caused the tax rate to fluctuate, the underlying debt service tax collections have been stable with modest increases. The Debt Service levy will increase three percent in 2014 from $10,000,000 to $10,300,000. In December 2012 the district made the last payment on school buses purchased with State Forest revenues. State Forest revenues are available to transfer to cover Capital Project and technology needs, but have declined to historic lows in the current year due to slow timber harvests. Transportation Vehicle Fund The Legislature delayed payment of state school bus depreciation from the beginning to the end of the In the school. As a result, the district has delayed purchase of school buses until August. Due to uncertainty about the delivery date of new buses, the district is re-budgeting $150,000 to cover orders that may be delivered in the school year. State bus depreciation funding is expected to remain strong at around $375,000 or enough for at least three new school buses. Associated Student Body Fund Associated Student Body (ASB) budgets are similar to prior years. High schools make up the majority of the ASB budget. Elementary schools participate in varying degrees and East Olympia Elementary functions without an ASB budget. ASB money must be used for the cultural, athletic, and recreational needs of students. 16

18 Capital Projects Fund Compared to * $ Change Pct Chg Beginning Fund Bal $2,614,000 $1,993,000 (621,000) -24% Revenues/Other Fin. Sources Local Impact Fees 716, ,000 (216,000) -30% Investment Earnings 25,000 25, % Rental & Leases 22,000 22, % State Assistance 0 19,000 19,000 NA New Market State 110, ,000 40,000 36% Bond Anticipation Note 0 25,000,000 25,000,000 NA Transfer from Debt Serv 300, , % Transfer from Gen Fund 95,000 0 (95,000) -100% Total Rev/Sources $1,268,000 $26,016,000 $24,748, % Expenditures Buildings 1,394,500 3,651,300 2,256, % Sites 25, , , % Equipment 186, ,000 (51,500) -28% Energy 400, ,000 Bond-Related & Other 15, ,000 85, % Total Expenditures $2,021,000 $5,283,300 $3,262, % Transfer to General Fund 0 0 $0 NA Ending Fund Balance $1,861,000 $22,725,700 $20,864, % * From original budget. 17

19 Project Capital Projects Fund Projects Amount Technology 1,201,300 New Site Acquisition 770,000 Mechanical Upgrades 515,000 Energy Grant Projects 502,000 Portables 445,000 Elementary School Replacement 300,000 School Security Systems 265,000 Capital Projects Dept. Operations 250,000 New Market Skills Center Projects 230,000 Fire Alarm & Fire Sprinklers 140,000 Building Improvements & ADA 120,000 Fire Alarm & Fire Sprinklers 110,000 Middle School Remodel 100,000 Bond Costs 100,000 Study & Survey 50,000 Playground Equipment 50,000 Parking Lot Improvements 50,000 All Other 85,000 TOTAL EXPENDITURES $5,283,300 18

20 Debt Service Budget Compared to Difference Beginning Fund Balance $6,893,867 $7,154, ,607 Reserve for Nonvoted Debt 320, ,575 (94,830) Revenues/Other Fin. Sources Local Taxes $9,837,781 $10,111, ,138 Investment Earnings 72,628 52,000 (20,628) State Forest Revenue 180, ,000 (60,000) Total Revenues $10,090,409 $10,283, ,510 Expenditures Voted Debt Bond Principal $3,426,748 $8,380,000 4,953,252 Bond Interest 6,202,674 1,703,694 (4,498,980) Bond Fees & Misc. 100, ,000 - Nonvoted Debt Bond Principal 94,832 0 (94,832) Bond Interest 1,702 0 (1,702) Total Expenditures $9,825,956 $10,183, ,738 Transfer to Capital Projects $300,000 $300,000 - Ending Fund Balance 6,858,320 6,954,699 96,379 Reserve for Nonvoted Debt 43,871 45,575 1,704 $$$$$$$$ 19

21 Detail of Outstanding Bonds 20

22 Transportation Vehicle Fund Compared to * $ Change Pct Chg Beginning Fund Balance $39,000 $150,000 $111, % Revenues/Other Fin. Sources State Depreciation 325, ,000 50,000 15% Interest Earnings 1,000 1, % Sale of Equipment 1,000 1,000 0 NA Total Revenues $327,000 $377,000 $50,000 15% Expenditures Bus Purchases 365, , ,000 42% Total Expenditures $365,000 $520,000 $155,000 42% Ending Fund Balance $1,000 $7,000 6,000 NA From original budget. 21

23 Associated Student Body Fund Compared to * $ Change Beginning Fund Balance $355,031 $363,404 $8,373 Revenues General Student Body 707, ,280 (12,920) Athletics 409, ,560 7,105 Classes 164, ,400 25,570 Clubs 328, ,555 (3,415) Private Moneys 28,600 35,400 6,800 Total Revenues 1,639,055 1,662,195 $23,140 Expenditures General Student Body 675, ,505 (28,169) Athletics 477, ,754 25,414 Classes 171, ,662 17,270 Clubs 335, ,153 1,639 Private Moneys 28,555 38,905 10,350 Total Expenditures 1,688,475 1,714,979 $26,504 Ending Fund Balance $305,611 $310,620 5,009 * From original budget. 22

24 ASB Revenue Budget by Location TMS MTS NMSC BLE THE PGS SO Black Hills HS BMS Tumwater High School Secondary Schools Revenue Elementary Schools Revenue Tumwater High School $714,350 MT Simmons 15,400 Black Hills High School 488,050 PG Schmidt 111,500 Secondary Options 100 Black Lake 86,000 New Market Skills Center 12,900 Tumwater Hill 4,900 Tumwater Middle School 107,350 Littlerock 22,400 Bush Middle School 99,245 East Olympia - Total $1,662,195 23