Introductory Section I

Transcription

1 Introductory Section I ANNUAL BUDGET SECTIONS INTRODUCTORY SECTION ORGANIZATIONAL SECTION FINANCIAL SECTION INFORMATIONAL SECTION This Introductory Section introduces readers to the document as a whole and highlights some of the important information contained in the budget. Users may rely on this section to give an overview; a snapshot of what can be found in the rest of the document. For that reason, we have provided summary information including data, graphs and narrative of the entire report. A liftable version of this section is provided in the preceding pocket and is meant to be utilized as a quick reference by readers. Introductory Section 1

2 1. A Message from the Superintendent The Annual Budget Report provides excellent information about the Olathe Public Schools and our priorities for student achievement. This document contains key historical information as well as outlining the budget development process. The most important factor is the alignment of resources with the Board of Education s vision, strategic directions and ever higher learning expectations. The District has experienced many financial and budgeting challenges the last few years that look to continue into the near future. With reduced revenue from the state, the Olathe Public Schools has made cuts in many areas in order to provide a balanced budget. Olathe continues to be a rapidly growing school district with over 30,000 students. As the second largest district in Kansas, our challenge and opportunity is to meet the increasingly diverse learning needs of all. We are proud in Olathe that the investment of tax dollars in our schools is a wise investment as evidenced by the academic results of our students. Our average ACT score of 23.8 is well above the state and national averages. Our graduation rate is 91.8 percent and our student enrollment in advanced placement classes is high. John Allison, Superintendent achievement and enhanced salaries for our teachers and support staff, while providing a responsible mill levy. We work very hard to provide an excellent education for our students. It takes community and parent support to make that happen. The public should be aware that the Board of Education and district leadership will do its very best to wisely and responsibly invest in this community s children and their future. Within the last few years, parent surveys indicate that 87 percent of respondents believe that the District gives good value for the tax dollars invested. In addition to these external indicators, the budget developed meets the higher expectations for student 2 Introductory Section

3 DISTRICT OVERVIEW II. Executive Summary The following document represents the Olathe Public Schools Approved Budget for the fiscal year. The development, review and consideration of all State Budgeted funds were completed with a detailed review of revenue and expenditure items within the context of the District s mission, goals and financial commitments. Information on each of the fund budgets is provided in this budget document. Throughout this document the reader will find photos of children at work and play. This is not to trivialize the seriousness of the financial document, but to symbolize the true value of a budget a financial reflection of the mission of an organization. The District s Vision is: Students prepared for their future. It is the District s responsibility to publish and disseminate budget information to the Board of Education and local community. Staff and departments provided input for program requests to assist with the development of the budget since early February. We welcome the opportunity to present and discuss operational plans and related financial impact with all interested parties. Interaction among interested groups consistently leads to operational and educational improvements which translates to increased opportunities for the students of Olathe Public Schools. The public is welcome to provide input during the budget development process through regular scheduled public meetings held in June, July and August. This budget document is the primary vehicle to present the financial plan and the results of past operations of the District. The information included in this document is structured to meet the requirements of the Meritorious Budget Award (MBA) of the Association of School Business Officials International (ASBO). The Meritorious Budget Award is the highest form of recognition in budgeting for school entities. Its attainment represents a significant accomplishment by a school entity and its management. The award is made after comprehensive review by a panel of independent budget professionals. Using extensive criteria, the reviewers not only evaluate the effectiveness of the budget in meeting the MBA program criteria, but provide commentary and feedback to the submitting entity as a basis to improve the presentation of the district s financial and operations plan. Olathe Public Schools has the second largest K-12 student enrollment in the state of Kansas. The District covers 74.6 square miles in Johnson County and provides educational services across four cities: Olathe, Overland Park, Lenexa and Shawnee. For the school year students will enter our 35 elementary schools, 9 middle schools and 5 high schools. In addition to the school buildings, 21 support facilities exist to provide operational and educational services. Our 2,600 - plus teachers and administrators and over 2,000 classified staff help create the positive learning environment for over 30,000 students. The pupil/teacher ratios for the grade levels are elementary 20.2:1, middle 22.0:1 and high school core classes 25.5:1. The average student scores exceed both the state and national ACT and SAT averages. 89% of our graduating seniors pursue a postsecondary education and were offered more than $51.5 million in scholarships in Over $11.5 million in grants were awarded the District in the past year. Introductory Section 3

4 STRATEGIC DIRECTIONS III. District Mission, Vision, Beliefs and Core Values Improve Student Achievement The Olathe Public Schools will increase achievement for all students through learning based on a comprehensive, challenging instructional program, focused on individual needs and grounded in research. The mission of Olathe Public Schools is to create a partnership of students, parents, teachers, staff and the community to provide a safe environment where all students acquire skills, knowledge, abilities and behaviors necessary to be productive citizens in an ever-changing world. Below, Olathe s Vision statement is followed by the District s Mission, Purpose, Beliefs, Core Values and Goals for Students. These statements, developed with extensive staff and community input, reflect the longterm expectations for the school District. Staff and community input also developed the Guiding Principles for Staff, Board, Students, Parents and Patrons. These statements become a covenant between the organization and those it serves. Recruit, Develop, Retain a Quality Staff The Olathe Public Schools will actively recruit, develop and retain a highly competent, caring and student-focused staff throughout the organization. Our Vision... Students prepared for their future! Our Mission - A partnership of Students, Parents, Staff and the Community How We Do Business - We demonstrate in action and words... Engage and Involve All District Stakeholders The Olathe Public Schools will pro-actively inform and engage all district stakeholders (staff, students and community) to support and ensure student success. Use Resources Responsibly The Olathe Public Schools will implement effective and efficient financial, and operational procedures to enhance its educational program. Approved by BOE in the Spring of 2011 To provide a safe environment where all students acquire skills, knowledge, abilities and behaviors necessary to be productive citizens in an ever-changing world. Our Purpose Student learning Our Beliefs All children can learn Together we achieve more Our Core Values Data-driven continuous improvement Life-long learning Our Goals for Students Apply academic skills Communicate effectively Think critically and creatively to solve problems Use and apply technology Maintain and enhance physical and emotional health Demonstrate respect and work cooperatively with others Demonstrate self management and practical life skills Contribute as responsible and productive citizens Staff/Board Guiding Principles Children first Respect for all Teamwork Excellence and quality Commitment to individual needs Student Guiding Principles Honesty Respect Responsibility Trustworthiness Parent/Patron Guiding Principles Positive role models Effective communicators Respect for all Advocates for education Active involvement 4 Introductory Section

5 III. District Mission, Vision, Beliefs and Core Values Strategic Direction Improve Student Achievement The Olathe Public Schools will increase achievement for all students through learning based on a comprehensive, challenging instructional program, focused on individual needs and grounded in research. Priority Goal for Action Plans SA 1: Refine and develop challenging curriculum and program offerings. SA1.1 Align district curriculum with College and Career Ready Standards. SA1.2 Prepare and implement Board of Education-adopted curriculum. SA 2: Implement targeted effective instructional strategies for all students, including the use of technology for learning. SA 3: Increase use of strategies/programs which meet individual learner needs. SA3.1 Implement the MTSS (Multi-tiered System of Supports) system (reading, math, behavior). SA3.2 Implement specific interventions for challenged learners. SA3.3 Implement strategies to increase student independence of learners with special needs. SA3.4: Increase awareness of the needs of students living in poverty and implement effective strategies to support these needs. SA 4: Increase student college and career readiness by providing rigorous learning experiences. SA4.1 Increase enrollment and success in college level classes (College Now, Pre-AP/ AP). SA4.2 Review, recalibrate, and refine current 21st Century programs. SA4.3 Develop 21st Century programs for Olathe West High School (green technology, public safety). SA 5: Increase student success with college and post-secondary. SA5.1 Prepare students for college admittance exams, esp. the ACT. SA5.2 Obtain methods to track the success of students after their high school experience. SA 6: Implement strategies to ensure a positive and safe learning environment to maximize student learning. SA5.1 Implement positive building, classroom, and individual student behavior strategies. SA5.2 Implement practices which enhance the safety of the learning environment. SA 7: Increase student engagement through athletics and activities, including under-represented students. SA 8: Plan for the implementation of the new state accreditation and school improvement process. Let s put our minds together and see what life we can make for our children. -Thathanjka Iyotake (Sitting Bull) Recruit, Retain and Develop a Quality Staff The Olathe Public Schools will actively recruit, develop, and retain a highly competent, caring, and student-focused staff throughout the organization. QS 1: Analyze current and alternative methods for recruiting quality staff (criteria and process). QS 2: Direct available resources to enhance staff retention. QS 3: Maintain a positive staff working environment. QS3.1 Continue to create a positive working climate. QS3.2 Continue to ensure a safe working environment. QS 4: Design, implement, and evaluate various types of professional learning opportunities to enhance student learning (teachers, administrators, instructional support staff). QS 5: Provide development opportunities for staff that enhances work performance (classified and licensed/certified staff) QS 6: Provide supports for new employees (educators, administrators, classified) to meet or exceed district expectations. QS 7: Develop staff capacity through succession activities to ensure continuity of leadership. QS 8: Evaluate, modify and implement staff performance appraisal systems across the organization. Engage and Involve All Stakeholders The Olathe Public Schools will pro-actively inform and engage all district stakeholders (staff, students and community) to support and ensure student success STK 1: Engage business and community partners to enrich student educational experiences. STK 1.1 Implement the Adopt-a-School partnership program at all schools. STK 2: Analyze stakeholder data, disseminating results and implementing changes. STK 3: Implement effective communications. STK3.1 Implement effective communication for internal staff. STK 3.2 Implement effective communication for parents/guardians. STK 3.3 Implement effective communication for the community and outside stakeholders. STK 4: Identify and promote key legislation to support quality public education. Be Responsible and Accountable for Available Resources The Olathe Public Schools will implement effective and efficient financial and operational procedures to enhance the educational program. RES 1: Exercise high degree of fiscal responsibility in administration of budgets. RES 1.1 Provide for minimum fund balances that support positive cash flow. RES 1.2 Improve fiscal reporting. RES 1.3 Maintain/improve district bond ratings. RES 2: Update and prioritize short-and long-term facility needs. RES 2.1 Plan and prioritize for current facility improvements and new construction through a CIP (Capital Improvement Plan) process. RES 2.2 Plan for new construction. RES 3: Update and prioritize short-and long-term sustainable technology needs. RES 4: Implement updated software management systems. RES 5: Conserve our natural resources through energy management and recycling efforts RES 6: Define system processes across district functions for clarity of implementation and succession. Introductory Section 5

6 IV. Budget Development Process and Goals The budget process can be disaggregated conceptually into a five-step process that includes: planning, preparation, adoption, implementation and evaluation. The process is driven by two objectives. The first is to provide every child in the District with the best possible educational opportunities. The second is to maximize the use of available resources. Within this framework, the Board attempts to balance the educational needs of students and the resources available to the District from local, state and federal sources. The product, the District s annual budget detailing the revenues and expenditures to support educational programs and services, is a delicate balance of policy choices. Budget Planning The planning process for next year budgets begins following the adoption of the current year budgets. The first steps are the review of the budget calendar and goals. The calendar includes all of the important activities in the budgeting process including the projected dates on which important decisions are scheduled to be made. Once adopted, the calendar represents the guideline for the preparation and adoption of the financial plan of the District. Budget Preparations The preparation of the budgets is a two-fold process of analyzing projected revenues and anticipated expenditures. Both processes occur simultaneously during the planning stages. Analyzing projected revenues includes combining projected enrollment trends, current education finance formulas and new statute variations under discussion in the Legislature. This process usually entails setting up numerous scenarios as the Legislature moves towards approval of their final education finance package. Anticipating expenditures begins with the process of collecting information of current and proposed programs throughout the District from cost center managers. In reviewing current programs, attention is given to the merits of continuing the program in the manner it has traditionally existed. Since salaries and benefits constitute approximately 86% of all operating expenditures, special emphasis is given to employee assignments and re-assignments to provide necessary services. When program requests have been received and entered, the process of working with cost center managers to balance needs with the District mission and revenue considerations begins. Once a balance has been reached, preliminary budgets may be created. Budget Adoption, Implementation and Evaluation The preliminary budgets of the district for the next year are presented at a Board meeting in June or early July. In June and July, the Board considers the budgets and provides opportunity for public input and comment on the financial plan to fund the District s educational programs and services. Final adoption of the budgets occurs in August. The implementation of the approved financial plan is discussed in the Organizational Section of the budget, in Section IX, Budget Administration and Management. The final step in the budget process is the evaluation of the financial plan. The results of the operations for the fiscal year are set forth annually in the District s annual budget. 6 Introductory Section

7 V. Budget Adoption, Implementation and Evaluation The Strategic Directives of the Olathe Public Schools include the following financial directive: Be Responsible and Accountable for Available Resources The Olathe Public Schools will implement effective and efficient financial and operational procedures to enhance the education program. To assist in achieving this directive, staff has developed the following budget goals to guide their decision making in the development of the budget: 6. Identify strategies to achieve a 6% capital outlay fund reserve, 10% contingency fund reserve and 60 days operating/dependent funds group cash reserve. 7. Identify and research all potential, new revenue sources, while remaining sensitive to levy. 8. Identify and prioritize opportunities to improve operational efficiency, while remaining a legally compliant organization. 1. Continue a commitment to prudent financial planning, balancing the learning and safety needs of all students, maintaining programs and facilities, while remaining sensitive to levy. 2. Recognizing the current uncertainty of school funding, ensure the budget process includes both short and long term solutions. 9. Remain committed to our strategic plan; however, identify expenditure reductions through a thorough and reasoned review of the budget, reducing funding to strategies, programs and functions which have not produced desired results while investing in promising ideas. 10. Strive to provide a competitive compensation package to staff. 3. Protect direct funding to support the classroom. 4. Protect basic educational service levels by containing the costs of programs mandated but underfunded by the State and Federal government. While the above goals will be staff s focus for the budget, some goals are ongoing and will require multiple years to achieve. 5. Recommend a balanced operating budget. Introductory Section 7

8 VI. Capital Expenditure Process and Goals Process During the fall of each year Capital Improvement Plan (CIP) walk-thrus of each facility are conducted. The requests are gathered, cost projected, categorized and prioritized. During the summer Budget Development process the Board is provided with summarized lists of categorized Capital Outlay requests. After the approval process, completion of approved projects is dependent on actual implementation costs, time and availability of funds. It is important to realize additional projects and emergency issues may arise throughout the school year and necessitate re-prioritization. By the nature of the expenditures from this fund, very few projects have on-going operational costs associated with them. Capital Expenditure Process and Goals Prior to Winter Break 1. Conduct Capital Improvement Plan Walk-Thrus Identify Capital Expenditure Needs 2. Internal Review and Prioritization of Requests Clarify and Categorize all Requests 3. Budget Reviews by Board of Education Provide Summarized lists by Categories 4. Recommend Capital Expenditure Projects 5. Adopt Capital Expenditure Projects January - March May - June Mid July Early August 8 Introductory Section

9 VI. Capital Expenditure Process and Goals Goals Capital Improvements 1. Provide for adequate space in an instructionally appropriate environment for all students in all schools across the District Re-purpose space related to unique curricular programming for Special Education, Bilingual Education, after school programs, etc. Remodel wet areas when necessary 2. Provide a safe and aesthetically pleasing environment for all students and staff with appropriate attention to federal mandates Maintain bathrooms, auditoriums, gymnasiums and other general use commons areas Maintain carpet, tile, wall painting and other interior coverings 3. Provide safe, multipurpose and aesthetically pleasing outdoor facilities for extra-curricular activities Add and maintain green space, athletic fields, tracks, etc. Maintenance 1. Provide for normal upkeep and promote preventative maintenance on all District facilities Maintain roofs, parking lots and sidewalks of all District facilities Maintain tennis courts, tracks and grounds at all District facilities. Provide appropriate vehicles to meet service requirements 2. Maintain/upgrade/rotate vehicles for maintenance crews, food service deliveries, grounds and general travel use Regulatory Mandates 1. Provide a safe and aesthetically pleasing environment for all students and staff with appropriate attention to federal mandates Remodel/repair to meet ADA, in-door air and asbestos requirements Equipment and Furnishings 1. Provide appropriate classroom equipment to assist in meeting curricular objectives Provide for adequate monitors, projectors, science lab equipment, appliances, musical instruments, etc. Technology 1. Provide updated electronics and computer technology to maintain District databases, District WAN and remote LAN s to accommodate growth and demand Provide appropriate technology computers, scanners, printers, CAD systems 2. Provide updated appropriate communications mediums Maintain telephone key systems, voice mail systems, facsimile operations, etc. Maintain emergency preparedness and building level radios Acquisition of Land and Facilities 1. Provide a safe, aesthetically pleasing and program-appropriate environment for all students and staff Purchase land and facilities for future District schools and operations Introductory Section 9

10 VII. Budget Development Process and Goals Cash Balance/Reserve Goals Cash Balance/Reserves in District funds exist and are required/necessary to meet the following Objectives: Objective 1: To provide adequate cash flow for the operations of the District with respect to the highs and lows of the revenue received and timing of expenditures. Objective 2: For contingencies related to: a. Unforeseen expenditures (e.g. extraordinary energy cost increases, enrollment growth, inflation, etc.) b. Unanticipated shortfalls in funding from statutory sources (e.g. past reductions in BASE Aid, loss of Economic Development Grant, LOB renewal, etc.) To analyze the impact of cash balance/ reserves, all funds are separated into four groups: Operating/Dependent, Restricted/ Independent, Capital Outlay and Contingency Reserve. Operating/Dependent Funds These funds represent the Operating funds: General, Supplemental General and all State identified Special Revenue funds that receive the majority of their revenue through Operating fund transfers. While the Special Revenue funds in this group do have some fund specific revenue, it accounts for a small percentage of the total fund revenue. Goal: to meet Objective 1, the year-end aggregate cash balance/reserves in these funds should be 60 days or 2 months of operating Dependent fund expenditures for the year. Restricted/Independent Funds These funds represent all the other funds accounted for on the Treasurer s Report and associated with the State Budgeting process. While some of these funds may receive transfers from the Operating funds, they historically have received a small percentage of revenue in this manner and receive almost 100% of the necessary funding through user fees, separate levy authority and/or from other state/federal agencies. Most significant, the cash balance/reserves in these funds are not available for cash flow support of the Operating/Dependent funds or other uses in support of the overall operations of the District - unless the purpose is directly related to the specific fund; thus, Restricted funds. Capital Outlay Fund While this fund has similarities with each of the other two categories, it should be treated with its own analysis. While it can receive transfers from the Operating funds, its main source of revenue is from the local Capital Outlay Levy. The Board has full authority over setting this levy. Based on the total level of control the Board has for this fund s revenue and expenditures, the amount of cash balance/reserves necessary for unanticipated capital expenditures is solely a function the level of risk the Board chooses to take on. Goal: to meet Objective 2, maintain year-end cash balance/reserves in the Capital Outlay fund at a level equivalent to 6% of the general fixed assets of the District. 10 Introductory Section

11 VII. Budget Development Process and Goals Contingency Reserve Fund By State statute, this fund may be used for any operating expenditures not initially budgeted for by the Board when the budgets were approved. Goal: to meet Objective 2, maintain year-end cash balance/reserves in the Contingency Reserve fund up to the maximum level allowed by the state. That level is currently set at 10%. Budget Calendar January - February 1. Review Budget Development Goals and Process January - March 2. Preliminary Budget Development Tasks Analyze Current and Prior Year Expenditures Identify Considerations from Board Identify Department and Program Objectives Identify Potential Expenditure Reductions Identify Potential New Revenue Sources April 3. Legislative Considerations and Overview Budget Development July - August 4. Budget Reviews by Board of Education New State Finance Legislation Implications Bond and Interest Fund Status Capital Outlay Fund Status Discussion of all Mill Levy Funds Review Status of All Fund Reserves June 28, Approve Year-End Transfers July 12, Attend State Budget Workshop August 3, Preliminary Budget to Board of Education 8. Public Comment and Questions Portion of Board Meeting 9. Approve Budgets for Publication and Set Date for Public Hearing on Budgets August 12, Publication of Notice of Hearing for Public Hearing August 24, Public Hearing on Budgets 12. Adopt Budgets By August 25, Certification and Filing of Budgets with County Clerk and Kansas State Department of Education Introductory Section 11

12 VII. Budget Development Process and Goals Budget Considerations for In developing a new budget, there are significant issues and considerations that impact the final product. These issues are relevant towards helping the District attain stated goals and objectives. The following outlines those issues impacting this budget: Area for Consideration Trends/Assumptions 1. Student Enrollment: Our information predicts an enrollment increase of 438 students. 2. State Funding Levels: a. BASE Aid: will increase from $3,852 to $4,006 per pupil. b. Correlation Factor: stays the same at 3.504%. c. Bilingual Education: this weighting will be the higher of contact hours at 39.5% or head count at 18.5%. Olathe is currently using the latter option. d. At-Risk: this weighting will increase from 45.6% to 48.4%. e. High At-Risk: this weighting is determined based on the maximum calculation at district level compared to building level. f. Special Education: the reimbursement will increase from $27,750 per teacher FTE, to $28,250. g. Career and Technical Education: this weighting is based on contact hours at 50%. h. Transportation: this weighting will be the higher of state aid or state aid. i. Bond & Interest State Aid: aid will decrease from 29.0% to 27.0% for bond authority granted prior to July 1, 2015 and from 8.0% to 3.0% for bond authority granted after July 1, j. Supplemental General State Aid: aid will decrease from the level of 42.53% to 38.44% for Fixed Costs Adjustments a. Utilities: Electricity is the largest utility expense for Olathe Public Schools, accounting for approximately 82% of the utility budget. The District is served by two electrical companies KCP&L (44 accounts) and Westar (23 accounts). Through energy efficient upgrades and staff efforts to conserve electricity, the District s annual electrical usage has been trending downward. However, in the usage increased with the construction of Olathe West to 41,900,000 kilowatt hours. Even with reduced usage, the electrical budget continues to increase due to rising electrical rates. Hence, the budget is increasing 6.1% over the actual expenditures. The District belongs to an energy consortium that purchases natural gas on the open market from ntherm, then pays the local gas company, Atmos Energy, to transport the gas. Natural gas accounted for 6.0% of the utility budget in fiscal year This percentage reflects the low per unit cost the District is able to purchase natural gas. Based on a new contract with a new natural gas supplier and continued decline in natural gas prices, the District is budgeting a 5% decrease over Introductory Section

13 VII. Budget Development Process and Goals Water and sanitary sewer make up the remaining 12.0% of utility costs. Olathe Public Schools receives water from two water companies, City of Olathe and WaterOne. For next year, it is anticipated that Olathe will raise rates by 5.0%. No changes are anticipated for WaterOne. Due to these rate increases and expected water usage to establish grass at Middle School #10, the District is budgeting a 12% increase over actual expenses. b. Insurance: For , the District renewed the Property and the Crime Insurance policies with Travelers Insurance as well as the Casualty (Liability) Insurance with Genesis Insurance. The District maintains a $100,000 retention for the Property Insurance. Casualty Insurance retention remains at $250,000 to include claim expenses (primarily legal) within the retention and the coverage limits. This will enhance the District s ability to better facilitate financial control and management of claims and accurately reflect a positive method of financial risk to the District. d. Transportation: For the school year there will be a 3.5% increase in route costs per the terms of the transportation contract between the Olathe Public Schools and First Student. It is anticipated there will be a slight increase in the number of regular and special education routes due to an increase in enrollment, the opening of Olathe West and bus ridership. 4. Personnel Resources In the Olathe District, 86% of our operating expenditures are designated for personnel costs. The comparative chart shows the administrative and certified staffing patterns across the District from to the current school year. Due to the opening of our new high school, Olathe West, and other special programs, there was an increase of the overall staff FTE of nearly 100 certified staff. Personnel Resources Superintendent Assistant Superintendents, CFO/COO Administrative Assistants Principals Asst Principals Directors/Supervisors Special Ed Directors/Supervisors of Health Directors/Supervisors Career/Tech Ed Instructional Coordinators/Supervisors All Other Directors/Supervisors Curriculum Specialists Practical Arts/Career/Tech Ed Teachers Special Ed Teachers Pre-Kindergarten Teachers Kindergarten Teachers All Other Teachers Library Media Specialists School Counselors School Psychologists Nurses Speech Pathologists Audiologists School Social Workers Reading Specialists/Teachers Other (Alt. Ed., Homebound, e-academy Teachers) Totals 2, , c. Health Insurance Premium Rates: As of January 2018, rates will increase 7.9%. An increase in the Board of Education health plan contributions, will minimize the effect of this increase to employees. Introductory Section 13

14 In the pages that follow, the reader is provided with additional, detailed analysis and discussion regarding the budget and beyond, for each individual fund. These individual budgets are influenced by trends, events and initiatives as well as financial and demographic changes specific to that fund. Obviously, some of these influence all funds across the District. Among them are enrollment growth, state funding (BASE) and Bond Olathe Public Schools is a District of growth having increased in size every consecutive year since its consolidation in With increasing enrollment comes increasing pressure for additional revenue to provide adequate learning spaces and experiences. The lack of revenue has been a significant challenge in recent years. Our district, along with all the districts in Kansas, have essentially been frozen at funding levels under a state-wide Block Grant. This frozen funding comes on the heels of decreases in funding dating back to As a result of this decline in funding, class sizes have increased and per student allocations have been reduced each year to balance budgets. On July 1, 2017, a new funding formula went into effect for Kansas school districts, replacing the Block Grant. While providing much needed additional funding, this new formula produces less per pupil funding than our district had prior to the funding declines that began in VIII. Budget Schedules Actual Actual Olathe Public Schools Annual Budget All District Funds Expenditures by Function and Object Actual Actual Proposed Budget Revenues Local Motor/w Vehicles Taxes 8,755,021 9,407,385 9,484,361 9,426,489 9,648,319 9,832,458 9,665,535 9,681,509 Tuition 295, , , , , , , ,609 Fees 1,967,070 2,000,547 2,100,118 2,128,477 2,095,000 2,140,350 2,186,780 2,234,319 Meal Sales 6,890,313 6,414,670 6,629,024 6,703,924 7,771,545 7,888,118 8,006,440 8,126,537 Contributions and Donations 631, , , , , , , ,585 Other 15,248,869 1,931,650 21,349,356 46,305,384 33,795,950 33,854,074 33,901,954 33,944,608 Reimbursements 5,539,585 4,969,758 5,856,021 6,325,139 4,013,256 4,093,521 4,175,392 4,258,899 Revenue From Other Funds 981, ,037 1,339,102 1,502,221 1,120,204 1,120,204 1,120,204 1,120,204 County Ad Valorem Tax 104,831,272 73,309,420 76,285,122 84,119,653 89,118,460 91,913,710 91,177,129 91,941,356 State General State Aid 120,871, ,206, ,352, ,684, ,202, ,336, ,424, ,028,143 Supplemental State Aid 20,292,156 27,920,506 27,920,506 27,270,578 24,648,037 25,140,998 25,643,818 26,156,694 Special Education Aid 24,799,594 25,504,119 26,392,649 26,628,245 29,115,775 29,694,837 30,286,815 30,894,201 KPERS State Aid ,910,354 15,546, Capital Outlay State Aid 0 0 2,144, Federal Medicaid/Grants/Title Programs 13,500,453 12,183,192 11,296,456 11,685,559 12,829,829 12,836,480 12,848,324 12,843,958 Child Nutrition Aid 4,751,088 5,053,024 5,425,216 5,633,276 5,397,928 5,397,928 5,397,928 5,397,928 Federal Tax Credits 2,857,253 2,891,327 2,837,371 2,775,310 2,894,103 2,607,606 1,905,802 1,239,859 Other , TOTAL REVENUES 332,213, ,639, ,399, ,346, ,792, ,999, ,911, ,028,409 Expenditures Instructional Services Employee Salaries & Benefits 154,722, ,700, ,558, ,551, ,156, ,647, ,908, ,249,812 Insurance 193,348 26, , , , , , ,707 Professional & Technical Services 702, , , , , , , ,913 Other Purchased Services 3,023,691 2,835,161 3,212,076 3,856,552 3,884,392 3,887,637 3,888,223 3,887,999 Supplies & Materials 3,627,012 4,088,790 4,293,510 4,623,713 5,926,872 5,870,307 5,924,788 5,940,266 Textbook & Instructional Resources 2,329,335 1,854,209 1,622,771 1,793,042 1,855,121 1,892,223 1,930,068 1,968,669 Equipment 2,004,493 9,195,778 4,658,931 2,960,694 8,733,595 5,451,371 5,701,930 6,629,229 Other 8,176 7,442 10,738 13,647 14,700 14,921 15,144 15,371 Support Services- Students Employee Salaries & Benefits 18,478,267 19,819,455 20,475,368 21,183,188 21,738,825 22,160,806 22,591,039 23,029,628 Professional & Technical Services 214, , , , , , , ,257 Other Purchased Services 103, ,952 48,709 48,674 62,920 64,831 66,818 68,880 Supplies & Materials 65,996 76, , , , , , ,622 Equipment 58,570 29,113 41,276 29,724 41,000 41,000 41,000 41,000 Other 0 0 2,058 4,612 6,800 6,800 6,800 6,800 Support Services- Instruction Employee Salaries & Benefits 8,945,306 9,278,108 8,874,448 8,895,708 8,926,859 9,109,828 9,296,685 9,487,519 Professional & Technical Services 239, , , , , , , ,752 Other Purchased Services 122,282 63,250 82,643 69,151 86,210 86,384 86,487 87,628 Supplies & Materials 966, ,331 1,084,413 1,132,483 1,300,580 1,323,247 1,329,488 1,345,381 Equipment 11,226 18,500 22, ,297 3,008,500 1,043,980 1,385,276 1,812,585 Other Projected Projected Projected Introductory Section

15 VIII. Budget Schedules Actual Actual All District Funds Expenditures by Function and Object Actual Actual Proposed Budget Expenditures (continued) Support Services- General Administration Employee Salaries & Benefits 978,605 1,031,071 1,485,894 1,547,798 1,551,500 1,582,490 1,614,100 1,646,342 Insurance 245, , , , , , , ,551 Professional & Technical Services 18, , ,740 73,786 57,000 57,000 57,000 57,000 Other Purchased Services 47,549 52,830 69, ,431 70,950 70,950 70,950 70,950 Supplies & Materials 80,104 85,036 85,909 82,080 73,850 73,850 73,850 73,850 Equipment 7,606 1, , Other 26,045 23,805 25,044 53,552 56,000 56,000 56,000 56,000 Support Services- School Administration Employee Salaries & Benefits 14,688,599 15,213,413 17,014,830 17,857,486 17,879,083 18,238,610 18,605,493 18,979,888 Professional & Technical Services 13,407 16,638 15,520 16,598 17,425 17,914 18,188 18,558 Other Purchased Services 158, , , ,168 7,205 7,807 7,718 7,595 Supplies & Materials 5,862 5,792 6,138 7,055 10,050 10,125 10,204 10,286 Equipment 1,975 2,700 1,204 3,351 2,850 2,850 2,850 2,850 Central Services Employee Salaries & Benefits 5,826,742 5,484,096 6,058,676 6,482,300 6,522,124 6,651,018 6,782,491 6,916,592 Insurance 89, , , , , , , ,000 Contracted Services-Copiers 849, ,770 1,000,486 1,061,235 2,200,000 1,420,574 1,560,603 1,727,059 Professional & Technical Services 1,485, ,774 1,619,705 1,739,473 1,949,900 1,950,020 1,950,142 1,950,267 Other Purchased Services 15,390 62,503 44,985 15,858 83,900 83,900 83,900 83,900 Supplies & Materials 116,982 87,866 90,288 85, , , , ,993 Equipment 1,096,191 4,374 45,235 40,916 37,900 37,900 37,900 37,900 Other 56,075 73,344 15,376 18,904 46,500 46,500 46,500 46,500 Operations & Maintenance Services Employee Salaries & Benefits 12,114,732 12,023,642 11,461,445 11,172,069 18,121,738 18,302,574 17,487,016 16,375,147 Insurance 605, , , , , , , ,724 Repairs & Contracted Services 851,062 1,700,279 1,685,197 1,776,860 3,480,000 2,321,183 2,529,250 2,777,318 Professional & Technical Services 1,867,541 1,701,350 2,599,812 3,585,764 4,024,547 4,024,547 2,524,547 2,524,547 Other Purchased Services 782, , , ,489 22,050 22,530 23,024 23,534 Supplies & Materials 1,854,039 1,437,705 1,234,941 1,152,380 1,743,072 1,635,916 1,646,469 1,675,236 Utilities 6,414,151 6,323,925 6,365,373 6,716,422 7,071,510 7,076,747 7,083,437 6,591,591 Transportation Fuel 11,509 11,442 8,356 7,106 10,000 10,100 10,201 10,303 Other 1,230 1,151 1,158 1,044 2,000 2,000 2,000 2,000 Equipment 270, , , ,878 1,576, ,825 1,003,649 1,122,313 Transportation Services Employee Salaries & Benefits 47,160 50,978 52,027 85,112 85,400 87,108 88,850 90,627 Transportation Services 9,145,497 10,216,370 11,628,848 12,022,139 13,789,056 13,971,627 14,167,403 14,368,713 Other Purchased Services 354 5, ,900 4,974 5,048 5,124 Supplies & Materials 1,702 1, ,735 2,500 2,500 2,500 2,500 Transportation Fuel 1,139, , , ,369 1,030,800 1,051,412 1,066,316 1,081,457 Food Services Employee Salaries & Benefits 5,281,807 5,309,777 5,436,085 5,535,679 5,681,500 5,848,195 6,019,891 6,196,738 Professional & Technical Services 129, , , , , , , ,945 Other Purchased Services 101,011 77, , , , , , ,744 Supplies & Materials 6,079,695 6,179,678 6,227,973 6,319,164 6,590,000 6,787,700 6,991,331 7,201,071 Equipment 510, , , , , , , ,827 Site Improvements Benefit District Charges 935, , , ,010 1,420, , ,965 1,023,046 Purchased Property Services 5,019 4,188 9,959 75,867 44,956 43,594 54,805 47,785 Facilities and Construction Services Site Acquisitions 650, , , ,731 1,011,000 1,011,000 1,011,000 1,011,000 Projected Projected Projected While the adequacy of funding is under review by the Kansas Supreme Court and we remain hopeful for additional income in the future, future budgets have been conservatively prepared assuming no additional funding ordered by the Supreme Court. In , one of the District s key focuses will be completion of projects promised as part of Bond 2016 that was passed by voters in June, This $156 million worth of projects includes a tenth middle school, thirtysixth elementary and renovations of all buildings. These projects are critical to providing positive learning spaces for students to excel. In addition, work will culminate on the renovation of Millcreek Campus and construction of the District s 10th middle school. Note: All District Funds do not include the Flow-Through Funds (KPERS, Extraordinary Growth, Cost of Living and Agency) or Construction Funds. Facility Improvement Repairs & Contracted Services 1,868,051 1,302,641 2,394,981 1,287,246 3,500,000 2,394,076 2,393,774 2,762,617 Bond & Interest Payments Bond Principal Payments 27,830,000 28,182,945 29,707,945 30,447,944 29,932,944 28,407,944 29,002,942 30,397,945 Bond Interest Payments 18,298,093 21,991,140 20,898,349 21,833,097 23,119,466 21,884,978 25,246,101 21,602,927 Other Bond Costs 366, ,956 91, ,992 1,750, , , ,000 TOTAL EXPENDITURES 318,788, ,838, ,888, ,266, ,816, ,420, ,451, ,235,880 Beginning Fund Balance 74,209,115 87,633,735 87,435,075 99,035, ,781, ,007, ,836,632 99,546,105 Excess of Revenues over Expenditures 13,424,619 (198,661) 27,510,823 32,080,077 (11,024,181) 1,579,176 (7,540,528) (10,207,471) Transfer to Operating Fund(s) (203,661) (195,282) (28,127,561) Transfer to KPERS 0 0 (15,910,354) (15,546,581) Transfer from Capital Outlay ,747, Transfer from General Fund(s) 203, ,282 28,127,561 (4,534,456) 250, , , ,000 ENDING FUND BALANCE 87,633,735 87,435,074 99,035, ,781, ,007, ,836,633 99,546,104 89,588,634 Introductory Section 15

16 VIII. Budget Schedules Operating/ Dependent All District Fund Types Summary Approved Budgets Expenditures by Function and Object All District Funds Restricted/ Independent Capital Improvement & Debt Service Revenues Local Motor/Recreational Vehicles Taxes 4,060,916 44,369 5,543,034 9,648,319 Tuition 190,000 65, ,000 Fees 0 2,095, ,095,000 Meal Sales 0 7,771, ,771,545 Contributions and Donations 0 886, ,718 Other 765,950 32,435, ,000 33,795,950 Revenue From Other Funds 0 1,120, ,120,204 Reimbursements 4,013, ,013,256 County Ad Valorem Tax 37,380, ,059 51,408,133 89,118,460 State General State Aid 163,215, ,215,834 State Aid ,500 16,833,217 16,986,717 Supplemental State Aid 24,648, ,648,037 Special Education Aid 29,094, ,094,775 KPERS State Aid 21,000 21,000 Capital Outlay State Aid 0 0 TOTALS Federal Expenditures Medicaid/Grants 7,043, ,043,258 Grants/Title Programs 0 5,786, ,786,571 Child Nutrition Aid 0 5,397, ,397,928 Federal Tax Credits 0 0 2,894,103 2,894,103 Federal Other TOTAL REVENUES 270,433,294 56,085,894 77,273, ,792,675 Instructional Services Employee Salaries & Benefits $163,946,959 $36,209,382 0 $200,156,341 Insurance 0 271, ,800 Professional & Technical Services 321,717 42, ,549 Other Purchased Services 3,868, , ,371,507 Supplies & Materials 5,169, , ,446,490 Textbooks & Instructional Resources 0 1,855, ,855,121 Equipment 715, ,000,000 11,715,611 Other 14, ,700 Support Services- Students Employee Salaries & Benefits 21,730,510 8, ,738,825 Professional & Technical Services 313,880 6, ,930 Other Purchased Services 26,380 91, ,765 Supplies & Materials 140,869 2, ,869 Equipment 47, ,800 Support Services- Instruction Employee Salaries & Benefits 8,761, , ,926,859 Professional & Technical Services 315, , ,793 Other Purchased Services 75,050 26, ,473 Supplies & Materials 976, , ,285,317 Equipment 8, ,500 Support Services- General Administration Employee Salaries & Benefits 1,549,500 2, ,551,500 Insurance 0 665, ,000 Professional & Technical Services 57, ,000 Other Purchased Services 70, ,950 Supplies & Materials 73, ,850 Other 56, ,000 Support Services- School Administration Employee Salaries & Benefits 17,707, , ,879,083 Professional & Technical Services 17, ,425 Other Purchased Services 7, ,205 Supplies & Materials 8,550 1, ,050 Equipment 2, , Introductory Section

17 VIII. Budget Schedules Operating/ Dependent All District Fund Types Summary Approved Budgets Expenditures by Function and Object All District Funds Restricted/ Independent Capital Improvement & Debt Service Expenditures (continued) Central Services Employee Salaries & Benefits 6,444,720 77, ,522,124 Insurance 0 215, ,000 Professional & Technical Services 1,942,600 7, ,949,900 Other Purchased Services 83,900 3, ,400 Supplies & Materials 107,493 2, ,993 Contracted Services - Copiers 0 0 2,200,000 2,200,000 Equipment 35, ,400 Other 46, ,500 TOTALS Note: All District Funds do not include the Flow-Through Funds (KPERS, Extraordinary Growth, Cost of Living and Agency) or Construction Funds. Operations & Maintenance Services Employee Salaries & Benefits 8,861, ,000 9,010,000 18,121,738 Insurance 0 645, ,972 Repairs & Contracted Services 0 25,000 3,455,000 3,480,000 Professional & Technical Services 4,024, ,024,547 Other Purchased Services 6,050 16, ,050 Supplies & Materials 543, ,200,000 1,743,072 Utilities 6,929, , ,071,510 Transportation Fuel 0 10, ,000 Other 0 2, ,000 Equipment 3, ,573,065 1,576,465 Transportation Services Employee Salaries & Benefits 85, ,400 Transportation Services 13,765,881 23, ,789,056 Other Purchased Services 4, ,900 Supplies & Materials 2, ,500 Transportation Fuel 1,030, ,030,800 Food Services Employee Salaries & Benefits 0 5,681, ,681,500 Professional & Technical Services 0 420, ,000 Other Purchased Services 0 159, ,000 Supplies & Materials 0 6,590, ,590,000 Equipment 0 505, ,000 Site Improvements Benefit District Charges 0 0 1,420,500 1,420,500 Facilities and Construction Services Site Acquisitions 0 0 1,011,000 1,011,000 Facility Improvement Repairs & Contracted Services 0 0 3,500,000 3,500,000 Bond & Interest Payments Bond Principal Payments ,932,944 29,932,944 Bond Interest Payments ,119,466 23,119,466 Other Bond Costs 0 44,956 1,750,000 1,794,956 TOTAL EXPENDITURES 269,902,531 55,742,350 89,171, ,816,856 Beginning Fund Balance 18,337,218 21,899,893 75,544, ,781,639 Excess of Revenues over Expenditures 530, ,544 (11,898,488) (11,024,181) Transfer to Operating Funds Transfer to KPERS Transfer to Capital Outlay Transfer from General Fund 0 250, ,000 ENDING FUND BALANCE 18,867,981 22,493,437 63,646, ,007,457 Restricted/ Independent 13.9% Fund Budget and Revenue Summaries Changes in budget expenditures can be explained by both consistent enrollment growth and salary increases. Both of these issues were discussed in the prior Budget Considerations for section. Since the majority of all the financial activity for the District occurs in the Operating/Dependent funds, further discussion on how enrollment impacts the budget is provided in following sections directly related to these funds. Introductory Section 17 Capital Improvement & Debt Service 19.1% Operating/ Dependent 67.0%

18 Year Head Count , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,301 IX. District Enrollment Trends The Olathe Public Schools has experienced continued enrollment growth since unification in This enrollment growth is a reflection of the young median age of the cities the District serves and the continued residential development within the District. Cities served by Olathe Public Schools, include the city of Olathe, routinely named one of the fastest growing cities over 100,000 in the United States. Olathe Public Schools has grown from 3,687 students served in 9 buildings to over 30,000 students served in 59 buildings in its 52 years. Recently enrollment growth in the District has continued, but slowed, resulting from a decrease in live birth rates. However, this year the District anticipates growing by 438 students. Enrollment projections for Olathe Public Schools are based primarily upon historic enrollment information and new residential building permit information. Historic enrollment information would include District growth rate, program growth rate, student location and promotion rates. Enrollment data has been maintained since unification in 1965, with particular weight given to information in the past 3-5 years. This information is supplemented with residential building permit reports. The school District is broken down into 91 study areas (map grids). Building permits are mapped each quarter and information about the permit [the type of housing product (single family or multi-family), the developer of the subdivision and the price of the unit] is entered and analyzed with geographic information system (GIS) software. Changes within fully-developed areas of the District are estimated based on promotion rates by grade. Olathe Public Schools Annual Budget This process has created enrollment estimates that are within 1.0% of the actual enrollment of the District over the past 4 years, leading to a great deal of confidence in the methodology. While the District s methodologies have proven extremely accurate in projecting enrollment for the shortterm, the District relies on Mid-America Regional Council (MARC) for longterm enrollment projections. MARC is a non-profit association of city and county governments and the Metropolitan Planning Organization for the bi-state Kansas City region. MARC provides longterm enrollment estimates for the metro area. Applying a ratio technique to those forecasts provides the District an enrollment of 43,000-45,000 students at full build-out. 18 Introductory Section

19 IX. District Enrollment Trends The following chart provides actual enrollment information since 1965 and projected enrollments through ,000 30,000 25,000 20,000 All numbers represent student headcounts not FTE. Year Head Count , , , , , , , , , , , , , , , , , ,054 * ,145 * ,053 * ,049 *Projected 15,000 10,000 5, * * * * As demonstrated above, the District is anticipating its first decrease in enrollment in This would mark the first such decrease since unification in However, stronger than anticipated growth for may be signaling a higher than anticipated growth rate over the next several years which could negate this decline. 0 Introductory Section 19

20 Kansas Constitution Article Six: 6: Education Finance (a) The legislature may levy a permanent tax for the use and benefit of state institutions of higher education and apportion among and appropriate the same to the several institutions, which levy, apportionment and appropriation shall continue until changed by statute. Further appropriation and other provision for finance of institutions of higher education may be made by the legislature. (b) The legislature shall make suitable provision for finance of the educational interests of the state. No tuition shall be charged for attendance at any public school to pupils required by law to attend such school, except such fees or supplemental charges as may be authorized by law. The legislature may authorize the State Board of Regents to establish tuition, fees and charges at institutions under its supervision. (c) No religious sect or sects shall control any part of the public educational funds. The words suitable finance are the most hotly debated topics throughout the history of Kansas school finance, sparking several lawsuits throughout the years. X. Future Budget Assumptions and Forecasts Revenues The State of Kansas is responsible for developing the revenue structure for all school districts in the state. Under current statute, a uniform property tax supports K-12 education programs. This tax, combined with other tax sources, (sales, income, etc.), is distributed to local school districts based on enrollment and other student-based weighting factors. State statutes also allow for an increase to the basic state aid through local support. This additional funding is capped at 33% above the base state aid. Since Olathe Public Schools has utilized the maximum since 1994, all projections include the continued use of this local funding. School districts not utilizing their full local budget authority have some flexibility in projecting future revenue sources. For districts such as Olathe Public Schools, Weight Factor (Actual FTE) (Actual FTE) Projected Total District FTE (Actual FTE) where community support has approved the maximum use, the projected revenues have traditionally been tied directly to future enrollments. All new programs, program enhancements and growth will need to be adjusted and adapted to the projected revenues. Since revenue has historically been so dependent on student enrollments, this is the first variable to review when forecasting future budgets. The following chart projects the District s total Full Time Equivalency (FTE) for the next three years. Projected enrollment has been estimated based upon the methodologies outlined under the next section, entitled District Enrollment Trends. The chart assumes the weighting factors for Correlation Weighting, Bilingual, Career and Technical, At Risk, and New Facility will not change during this time period (Actual FTE) (Budgeted FTE) (Projected FTE) (Projected FTE) (Projected FTE) Headcount 29, , , , , , , ,049.0 Headcount Increase Base FTE 27, , , , , , , ,739.3 FTE as Percentage of Enrollment 93.9% 93.7% 94.0% 94.0% 93.9% 95.6% 95.3% 95.6% At-Risk (4 Year Old) Weighting High At-Risk Weighting High Enrollment Weighting , , , ,008.4 Bilingual Weighting Career & Technical Weighting At-Risk Weighting 2, , , , , , , ,976.6 Non-Proficient Students (At-Risk) Weighting New Facility Weighting Virtual Education Weighting KMAS Extraordinary Growth Weighting 2, , , , , , , ,247.5 Special Education Weighting 6, , , , , , , ,841.0 Transportation Weighting Cost of Living Weighting 1, , , , , , , ,996.2 Total Weighted FTE 43, , , , , , , ,954.7 In addition to base FTE, the District receives a variety of weightings that are expressed in FTEs and are further explained in the following pages. 20 Introductory Section

21 X. Future Budget Assumptions and Forecasts Introductory Section 21

22 X. Future Budget Assumptions and Forecasts The State Education Finance Act started with an initial Base State Aid per Pupil (BSAPP) of $3,600 in The State Education Finance Act was replaced with the Kansas School Equity and Enhancement Act with an initial Base Aid for Student Excellence (BASE) of $4,006 in Base Aid for Student Excellence (BASE) Once the projected FTEs are determined, the next factor to review is the Base Aid for Student Excellence (BASE). Since the BASE is set by statute, based upon annual appropriation by the state legislature, this becomes an annual legislative issue. The District experienced steady decreases in BASE from the school year through the school year, with only a slight increase in the following years. Year BASE % Increase $3, $3, % $3, % $3, % $3, % $3, % $3, % $3, % $3, % $3, % $3, % $3, % $3, % $4, % $4, % $4, % $4, % $4, % $3, % $3, % $3, % $3, % $3, % $3, % $3, % * $4, % * $4, % * $4, % * $4, % *Projected 22 Introductory Section

23 X. Future Budget Assumptions and Forecasts The current BASE of $4,006 is only $406 or 11.3% higher per pupil than in , the first year of the Kansas funding formula. However, this same $4,006 BASE is $2,271 or 63.1% below the BASE adjusted for changes in Consumer Price Index (CPI). In addition, BASE of $3,852 was $2,461 or 68.4% below the BASE adjusted for changes in median Kansas household income. Obviously, education funding in Kansas has not kept pace with increasing costs and changes in personal income. $6,600 $6,100 $5,600 $5,100 $4,600 $4,100 $3,600 This comparison is based upon the BASE as this is the most current year for which median income data is available. Historically, after the District s FTE and state BASE values were estimated, projected revenues for the General Fund could be made. This was a straight forward calculation using the enrollment and BASE data and the assumption that the District would continue to utilize the maximum Local Option Budget (Supplemental General Fund) authority. For , the authority increased from 31% to 33% of General Fund revenues. A mail-in ballot election was necessary to maintain the 33% authority for future years. This election was successful BASE (Adjusted for Mean Income) BASE (Adjusted for CPI) BASE (Unadjusted) * * * * * The combination of the calculated General Fund budget and maximum 33% Local Option or Supplemental Fund budget is known as the Legal Maximum Budget allowed. Once the revenues are established, the budget authority analysis is complete. Since setting a budget less than the projected revenues results in sending money back to the state, the approval budgets traditionally mirror the projected revenues. The Legal Maximum Budget is the maximum operating budget allowed by Kansas statute. Districts may not seek additional, local levy support. Actual Projected Legal Maximum Budget Budgeted Projected Projected Projected General Fund 197,509, ,611, ,609, ,909, ,204,186 Supplemental General Fund 64,120,804 69,711,212 73,677,133 73,542,396 72,001,092 Total General Funds 261,629, ,322, ,286, ,452, ,205,278 Introductory Section 23

24 Residential Trend Year Real Estate % of Total (Residential) Valuation 1992 $237,511, % 1993 $239,339, % 1994 $256,834, % 1995 $307,279, % 1996 $334,237, % 1997 $381,612, % 1998 $435,671, % 1999 $496,726, % 2000 $592,044, % 2001 $670,537, % 2002 $730,919, % 2003 $797,166, % 2004 $857,584, % 2005 $928,141, % 2006 $1,007,137, % 2007 $1,093,624, % 2008 $1,114,999, % 2009 $1,092,771, % 2010 $1,076,980, % 2011 $1,079,791, % 2012 $1,060,017, % 2013 $1,077,781, % 2014 $1,146,843, % 2015 $1,230,899, % 2016 $1,430,415, % *2017 $1,572,026, % *County Estimate Olathe Public Schools Annual Budget XI. Historical Valuations, Levies and Property Taxes Assessed Valuations The assessed valuation is one of the first pieces of information necessary to make projections on future tax implications. State education finance law requires districts to certify their budgets with their county(ies). The county(ies) then must levy taxes on the property within its (their) jurisdiction at a rate sufficient to raise the required revenue in the certified budgets. As the assessed valuation of a district grows, the tax requirements are spread over a larger taxing base. In Kansas, the assessed valuation varies for residential, commercial and motor vehicle property as indicated in the following Property Valuations section. Calendar Year (School Year Beginning) Market Value Actual Valuation Real Estate Valuation Trends Personal Property Utilities $ Increase % Increase As a% of Market Value 1992 n/a $475,665,566 $407,122,974 $43,059,585 $25,483,007 n/a n/a 0.0% 1993 n/a $488,930,271 $404,635,753 $55,398,425 $28,896,093 $13,264, % 0.0% 1994 $2,810,054,585 $511,577,331 $420,057,706 $61,349,235 $30,170,390 $22,647, % 18.2% 1995 $5,930,027,772 $581,462,175 $478,450,484 $69,269,430 $33,742,261 $69,884, % 9.8% 1996 $3,420,893,184 $618,835,525 $516,839,736 $67,873,990 $34,121,799 $37,373, % 18.1% 1997 $3,661,325,031 $726,426,571 $604,653,225 $85,233,330 $36,540,016 $107,591, % 19.8% 1998 $4,194,237,502 $867,868,012 $729,534,133 $100,723,349 $37,610,530 $141,441, % 20.7% 1999 $4,823,373,127 $978,774,847 $818,587,495 $120,822,903 $39,364,449 $110,906, % 20.3% 2000 $5,687,397,147 $1,132,366,284 $928,429,990 $163,805,552 $40,130,742 $153,591, % 19.9% 2001 $8,289,452,256 $1,261,019,855 $1,058,680,012 $158,734,267 $43,605,576 $128,653, % 15.2% 2002 $8,594,243,159 $1,306,971,999 $1,111,971,629 $151,426,845 $43,573,525 $45,952, % 15.2% 2003 $9,140,248,002 $1,400,704,771 $1,202,547,072 $153,034,066 $45,123,633 $93,732, % 15.3% 2004 $9,770,150,894 $1,475,975,478 $1,281,928,852 $144,745,716 $49,300,910 $75,270, % 15.1% 2005 $10,452,788,923 $1,595,244,777 $1,381,818,943 $160,916,785 $52,509,049 $119,269, % 15.3% 2006 $11,318,237,108 $1,726,519,902 $1,513,803,557 $160,805,283 $51,911,062 $131,275, % 15.3% 2007 $12,519,819,861 $1,864,318,798 $1,663,648,037 $147,847,344 $52,823,417 $137,798, % 14.9% 2008 $13,682,756,247 $1,880,447,524 $1,710,741,936 $120,039,036 $49,666,552 $16,128, % 13.7% 2009 $14,062,754,720 $1,809,635,799 $1,663,375,732 $99,772,626 $46,487,441 $(70,811,725) -3.8% 12.9% 2010 $13,761,006,750 $1,685,798,724 $1,569,832,119 $67,459,378 $48,507,227 $(123,837,075) -6.8% 12.3% 2011 $13,304,698,970 $1,684,992,074 $1,575,922,676 $60,870,943 $48,198,455 $(806,650) 0.0% 12.7% 2012 $13,305,264,166 $1,666,869,027 $1,561,493,153 $53,908,005 $51,467,869 $(18,123,047) -1.1% 12.5% 2013 $13,569,344,540 $1,701,680,394 $1,598,640,342 $46,701,611 $56,338,441 $34,811, % 12.5% 2014 $14,447,958,810 $1,805,343,825 $1,712,572,742 $36,414,072 $56,357,011 $103,663, % 12.5% 2015 $15,373,172,980 $1,937,957,877 $1,850,736,785 $31,292,014 $55,929,078 $132,614, % 12.6% 2016 $16,337,409,320 $2,084,118,176 $1,997,886,821 $28,907,700 $57,323,655 $146,160, % 12.8% *2017 $17,954,812,843 $2,290,445,875 $2,195,677,616 $31,769,562 $62,998,697 $206,327, % 12.8% *2018 $18,493,457,228 $2,359,159,252 $2,261,547,945 $32,722,649 $64,888,658 $68,713, % 12.8% *2019 $19,048,260,945 $2,429,934,029 $2,329,394,383 $33,704,329 $66,835,317 $70,774, % 12.8% *2020 $19,619,708,773 $2,502,832,050 $2,399,276,215 $34,715,459 $68,840,377 $72,898, % 12.8% *County Estimate 24 Introductory Section

25 XI. Historical Valuations, Levies and Property Taxes Introductory Section 25

26 XI. Historical Valuations, Levies and Property Taxes Year Collection Rate % % % % % % Historical Dollar Levies and Mill Levies The following chart reflects the mill levy for each year and fund, as well as the dollars levied. The total levy is broken down into the funds for General, Supplemental General (since 1993), Capital Outlay, Special Liability (new in 2009), Extraordinary Growth (since 1997), Cost of Living (new in 2009), Bond and Interest and Special Assessments. The table above represents the overall tax collection rate for the past 5 years and a projection for the upcoming year. Olathe Public Schools benefits from strong first year collections. Year General Supplemental General Dollars Levied and Resulting Mill Rate Capital Outlay Special Liability Extraordinary Growth Cost of Living Bond & Interest Special Assessments Total District Mill Levy $16,142,312 $7,691,361 $1,888, $9,939,531 $708,456 $36,369, $17,985,756 $10,979,985 $1,950, $11,034,210 $410,284 $42,360, $20,351,250 $11,140,234 $2,325, $13,160,234 $497,732 $47,475, $21,659,319 $13,192,956 $2,475, $12,405,176 $348,406 $50,081, $17,951,983 $12,056,503 $2,905, $2,304, $14,561,947 $383,551 $50,163, $16,068,336 $16,129,326 $3,471, $2,706, $16,311,582 $485,143 $55,172, $18,191,303 $21,035,830 $3,875, $3,014, $16,283,879 $323,975 $62,725, $21,180,345 $22,357,433 $4,529, $6,228, $18,276,394 $426,902 $72,998, $23,692,628 $25,529,373 $5,044, $5,527, $19,513,020 $356,870 $79,663, $24,544,215 $22,630,220 $9,148, $5,772, $19,324,888 $793,332 $82,214, $26,348,685 $22,531,734 $9,804, $10,372, $19,029,973 $124,661 $88,212, $27,786,073 $25,639,170 $5,911, $12,566, $28,016,967 $450,173 $100,370, $30,107,956 $29,591,792 $7,904, $14,223, $24,621,011 $507,287 $106,955, $32,674,362 $31,111,889 $6,907, $9,673, $29,868,798 $441,989 $110,678, $35,382,890 $32,075,603 $10,294, $9,179, $29,944,691 $1,174,522 $118,052, $35,674,526 $37,781,950 $942, $7,288, $41,170,509 $1,034,248 $123,891, $34,243,351 $34,442,797 $5,427,099 $314,876 $6,780,703 $2,138,990 $35,372,952 $394,498 $119,115, $31,755,250 $39,021,169 $2,361,808 $256,240 $9,507,906 $6,643,729 $30,958,012 $458,535 $120,962, $31,727,217 $35,615,676 $13,479,934 $229,156 $5,740,768 $6,129,996 $22,103,728 $822,271 $115,848, $31,349,253 $31,478,823 $11,653,078 $306,702 $6,802,486 $5,905,715 $25,419,764 $1,140,134 $114,055, $32,028,817 $35,611,055 $5,365,401 $365,860 $8,639,435 $4,637,085 $28,765,201 $825,313 $116,238, $34,071,689 $27,626,624 $14,436,455 $364,624 $8,321,521 $4,949,366 $29,732,693 $972,865 $120,475, $36,708,100 $33,891,003 $9,476,612 $391,467 $8,228,569 $7,612,298 $31,920,105 $1,044,557 $129,272, $39,608,765 $31,951,615 $16,672,944 $312,618 $8,576,145 $6,790,058 $34,137,860 $1,125,424 $139,175, $43,505,501 $42,497,672 $18,242,304 $341,016 $13,780,324 $6,448,419 $34,184,217 $230,414 $159,229,867 * *County Estimate 26 Introductory Section

27 XI. Historical Valuations, Levies and Property Taxes Historical Trends Levies The following charts provide historical comparison of rates, taxes levied and their relationship to personal income. Total Mill Levy * *Projected. Total Mill Levy As can be seen from the surrounding graphs, the District has been able to maintain a fairly stable overall mill levy for the past 20 years, with minor fluctuations in the percentage of each of the individual mill rates. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% General Supplemental General Capital Outlay Special Liability Cost of Living Bond and Interest Special Assessment Extraordinary Growth 2016 *2017 *Projected. $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 Total Dollar Levy Total Mill Levy * *2017 *Projected. *Projected. 15.0% 10.0% 5.0% 0.0% Percent of Median Income BASE Taxes Note: Median information available only through While maintaining a relatively flat overall mill rate, until 2008 continued assessed valuation growth generated increases in revenue to accommodate the District growth. However, since , when the state s first student based funding formula was put in place, the burden of funding schools has progressively shifted from the state (BASE) to the local level (taxes). Introductory Section 27

28 The table below illustrates how property taxes are calculated for the average home in Olathe. Sample Property Tax Calculation Appraised Home Valuation Homestead Deduction Adjusted Valuation Residential Appraisal Rate Taxable Appraised Value Tax (Mill) Rate Per $1,000 General Other Levies $267,867 $267,867 $20,000 n/a $247,867 $267, % 11.5% $28,505 $30, Tax $570 $1,563 Total $2, Homestead Deduction: The first $20,000 of assessed valuation on any home is exempt from general fund taxation. The $20,000 does not apply to the District s other seven levies. XI. Historical Valuations, Levies and Property Taxes Property Taxes There are many variables used to calculate the property taxes on property owned. They include: market value, type of property, state assessed valuation and mill levies set by the county to raise sufficient funds for the local Year Average Appraised Value Property Tax Comparison on Residential Homes Assessed Value municipalities. The following chart shows a history of the percentage of school taxes to the average appraised value of homes in Olathe. The assessed valuation for residential property in Kansas is currently 11.5%. School District Mill Levy School Property Tax % of Appraised Value ,936 9, % ,291 10, % ,945 11, % ,556 11, % ,710 12, % ,968 13, % ,160 14, % ,133 16, , % ,363 18, , % ,874 19, , % ,990 20, , % ,663 21, , % ,480 21, , % ,451 22, , % ,399 24, , % ,515 24, , % ,229 24, , % ,360 23, , % ,010 23, , % ,686 22, , % ,261 22, , % ,015 23, , % ,616 24, , % ,523 26, , % ,737 28, , % * ,867 30, , % *Projected 2.500% 2.000% 1.500% 1.000% 0.500% 0.000% *Projected *2018 Percentage of Appraised Value. 28 Introductory Section

29 XI. Historical Valuations, Levies and Property Taxes Year Ad Valorem Tax Collection $116,143, $118,272, $86,617, $91,991, $99,457, $108,642,136 Note: The reduction in Ad Valorem Tax beginning is due to General Fund tax that was previously paid to districts now being sent to the State and disbursed as State Aid. Year Alternative Tax Collection $10,552, $10,240, $11,132, $11,242, $11,265, $11,563,108 Note: The District s only Alternative Tax collected is the Motor/Recreational Vehicle Tax. Introductory Section 29

30 XII. Bonds Bond Issues Olathe Public Schools is a district of growth. Since consolidation in 1965, the enrollment each year has been larger than the previous year. With this growth comes the need to issue bonds to finance the construction of new buildings and the renovation of existing square footage in order to ensure our students have adequate learning spaces. Historically, the communities served by Olathe Public Schools have been extremely supportive of bond referendums. The tables below and on the next page provide a historical look at the District s bond referendums: Bond Election History Date Amount Type YES NO Total Vote percentage YES October, 1965 $3,500, April 6, 1971 $3,500,000 1,661 1,433 3, % September 3, 1974 $5,300,000 1,371 1,005 2, % August 31, 1976 $4,250,000 1,645 1,279 2, % November 7, 1978 $15,500,000 5,115 2,758 7, % April 6, 1982 $5,190,000 1,870 2,744 4, % October 4, 1983 $15,350,000 Mail 6,349 4,225 10, % September 4, 1986 $35,500,000 Mail 6,523 3,574 10, % June 6, 1989 $40,450,000 Mail 9,757 6,585 16, % April 5, 1994 $58,800,000 4,964 3,433 8, % October 14, 1997 $123,720,000 Mail 17,959 7,269 25, % November 7, 2000 $60,000,000 31,224 11,549 42, % September 9, 2003 $73,500,000 Mail 15,717 10,552 26, % October 16, 2007 $138,000,000 Mail 15,529 8,424 23, % November 4, 2008 $68,000,000 General Election 39,191 27,381 66, % June 11, 2013 $244,800,000 Mail 20,695 6,238 26, % June 7, 2016 $156,000,000 Mail 17,144 6,609 23, % Notes: 1. Election history is for bond elections only. 2. percentages were rounded. On June 7, 2016, Olathe Public Schools passed a bond issue. The $156 million of new authority will fund projects along four threads: growth, safety and security, technology and aging facilities. Among these projects is the construction of the District s tenth middle school. 30 Introductory Section

31 XII. Bonds Bond History Month Year $ Millions Purpose October 1965 $3.5 New: Northview, Santa Fe Tr Jr. High April 1971 $3.5 New: Havencroft, Rolling Ridge Add: Meadow Lane, Olathe North Sites: Meadow Lane, Olathe North Approval: 53.7% September 1974 $5.3 New: Washington, Oregon Tr, Developmental Learning Center Add: Havencroft, Meadow Lane, Rolling Ridge, Food Service Approval: 57.7% August 1976 $4.25 New: Black Bob, Scarborough Add: Fairview, Northview, Washington, Olathe North Sites: Black Bob, Scarborough, Olathe South Approval: 56.3% November 1978 $15.5 New: Prairie Center, Tomahawk, Indian Tr, Olathe South, Add: Vocational Sites: Indian Creek, Prairie Center, Tomahawk, Indian Tr Approval: 65% April 1982 $5.19 (2 Elem., add to DLC, Sites) Failed October 1983 $15.35 New: Brougham, Indian Creek, Walnut Grove, Pioneer Tr Add: DLC, Olathe South Sites: Brougham, Walnut Grove, Pioneer Tr Approval: 58.9% September 1986 $35.5 New: Briarwood, Countryside, Heritage, Frontier Tr, Food Service, IMC, Warehouse, Activity Center Add: Black Bob, Central, Havencroft, Prairie Center, Rolling Ridge, Scarborough, Tomahawk, Washington, Westview, Santa Fe Tr, Olathe North, Olathe South, DLC Sites: Briarwood, Countryside, Frontier Tr, Olathe East, Olathe North, IMC, Activity Center Approval: 64.4% June 1989 $40.5 New: Green Springs, Mahaffie, Pleasant Ridge, Olathe East, Add: Fairview, Meadow Lane, Northview, Santa Fe Tr, Olathe North Approval: 59.6% April 1994 $58.8 New: Bentwood, Cedar Creek, Heatherstone, California Tr, Ed Center, 22 additions, 12.5 million Technology, Soccer Fields, 2,000,000 for repair and ADA Sites: 3 Elem., 1 Jr. High Approval: 59.1% October 1997 $ New: Arbor Creek, Clearwater Creek, Regency Place, Sunnyside, Chisholm Tr Jr. High, Olathe Northwest High, College Blvd Acty Ctr Add: Elem. Multipurpose Rooms, $12 million for WAN and LAN technologies Sites: 5 Elem., 1 Jr. High, 1 Sr. High. Approval: 71.2% November 2000 $60 New: Manchester Park, Prairie Tr Jr. High Add: Finish College Blvd Acty Ctr., additions to current Sr. Highs, alternative education facilities, $4.5 for WAN and LAN technologies; Century 21 programs and numerous repairs and renovations Sites: Additional sites Approval: 72.9% September 2003 $73.5 New: Madison Place, Ravenwood, Woodland, Harmony Early Childhood, TLC, Alt Ed Add: Havencroft, Heatherstone, Meadow Lane, Northview, Sunnyside, OSC, Gyms at Frontier Tr, Indian Tr, Oregon Tr and Pioneer Tr Jr. Highs. $6,000,000 for Technology Sites: 4 Elem, 2 Jr Highs, 1 Sr High, Transportation Ctr District wide Access Control System (key-less entry) Approval: 59.83% October 2007 $138 New: Forest View, Elem #35, Jr High #9, Technology Support Center, Voc Ed Add: Central, Ridgeview, California Tr, Olathe North, Heartland, numerous renovations and repairs to elementary schools $11.9 for Technology Sites: 4 Elementary Approval: 65% November 2008 $68 Additions: Additions and renovations to all high schools to make room for freshman students Approval: 59% June 2013 $244.8 New: Olathe West High School, Elementary School #36 Additions: 22 elementary office pinch-point additions, a second gym at California, Chisolm and Prairie Trail Middle Schools, a 3rd music room at California, Chisolm, Frontier, Indian, Oregon and Pioneer Trail Middle Schools Sites: 2 High school District Wide: $25 million technology, $48.1 million aging facilities projects, additional security features Approval: 76.8% June 2016 $156 New: Middle School #10 Additions: Millcreek Center Sites: Westview Elementary, CBAC, 5 middle school track renovations District Wide: $15 million technology, $19.3 million aging facilities projects, additional safety and security features Approval: 72.3% The aggregate amount of bonds which the District can issue without authority from the State Board of Education is 14.0% of the District s assessed valuation. During , that equated to $300,529,841. As of June 30, 2017, the District had outstanding issues totaling $523,901,165 (24.4% of the District s assessed valuation). The District also has another $81,730,000 of unissued authority. Outstanding principal indebtedness increased $94.1 million from to ; the net effect of $129 million 2016A bond issuance less principal payments and refundings of series 2008A, 2009A and 2013C bonds. Introductory Section 31

32 KSA 72-64c01: Sixty-five percent of moneys to be spent on instruction. (a) It is the public policy goal of the state of Kansas that at least 65% of the moneys appropriated, distributed or otherwise provided by the state to school districts shall be expended in the classroom or for instruction. (b) All moneys attributable to the increase in the amount of base state aid per pupil under the provisions of this act shall be expended in the classroom or for instruction. (c) Superseded (d) As used in this section, instruction means the activities dealing directly with the interaction between teachers and students and may be provided in a school classroom, in another location such as a home or hospital and in other learning situations such as those involving co-curricular activities. Instruction also may be provided through the internet, television, radio, computer, multimedia telephone, correspondence that is delivered inside or outside the classroom and other teacherstudent settings or through other approved media. Instruction also includes the activities of aides or classroom assistants of any type including, but not limited to, clerks, graders and teaching machines which assist in the instructional process. XIII. Financial Performance Functional Expenditure Percentages The following graph reflects all (the most recent data available from the state of Kansas) Operating/Dependent fund expenditures. This graph compares the percentage of expenditures within each functional area. A key observation is that 73.5% of the total expenditures went towards Classroom Instruction, Student/ Instructional Support from Counseling, Nursing and Library Media services. 100% Comparison of Olathe s Distribution of Operating Expenditures with State Averages The following graph compares Olathe s actual expenditures with state averages. The data was converted to dollar amounts to show how Olathe s allocation of $3,852 per student is spread out over the major functional categories. [Note: $3,852 was the Base State Aid Per Pupil for the school year.] 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Olathe Public Schools Annual Budget 73.5% Expenditure percentages Food Services Transportation Services Other Support Services Operations & Maintenance School Administration General Administration Instructional, Student Support Services, Instructional Support Staff Currently, there is a great debate in the State of Kansas as to what expenditures should be included under this definition. Olathe Public Schools has consistently measured the percentage of expenditures spent for instruction, as well as instructional support and student support services and believes this must accurately reflect what has been spent as instruction. The percentage of budget Olathe spends in the categories for Instruction, Student Support Services, School Administration, Transportation and Other Support Services (Business, Human Resources, Student Services, Planning and Technology) are higher than state averages. The percentage of budget Olathe spends in the categories of General Administration, Operations and Maintenance, Instructional Support Staff, and Food Services are lower than state averages. 32 Introductory Section

33 XIII. Financial Performance $4,000 $3,500 $3,000 Comparison of Olathe s Distribution of Operating Expenditures with State Averages State Olathe $2,500 $2,000 $1,500 $1,000 $500 $ Instruction Services Student Support Instructional Support Staff General Administration School Administration Operations & Maintenance *Data is from , the most current year for which state comparative data is available. Transportation Services Other Support Food Services Community & Adult Services Historical Comparison of Per Pupil Expenditures Adjusted for CPI This graph compares the actual expenditures of the combined General funds per student in Olathe since The top line shows the actual real dollar expenses while the bottom line adjusts for Consumer Price Index. The CPI adjusted real spending power per student leveled off since the new Education Finance and Quality Performance Act of Actual Dollar Expenditures Expenditures Adjusted for CPI Introductory Section 33

34 Awards and Recognitions ( ) Accomplishments Olathe Public Schools are known for innovative programs, excellence in teaching, technology rich classrooms and well maintained buildings and grounds. With a strong reputation for educational excellence, community and parent support U.S. Presidential Scholar Bessie Bauman, Olathe Northwest High School Perfect score on the ACT exam Jarow Myers, Olathe North High School National Speech and Debate Association Championships Zach Wallentine, Olathe North High School, placed in top 10 in Congressional Debate in the House of Representatives Grand Award at the 2017 Greater Kansas City Science and Engineering Fair Andrea Dahl, Olathe North High School One of 60 state student ambassadors for Fuel Up to Play 60 Sophia Schneider, Mission Trail Middle School National Association for Music Education s All-National Honor Choir Cole Bellamy, Olathe North High School National Association for Music Education s All-National Honor Orchestra Nicole Allen, Olathe North High School 2017 U.S. Army All-American Marching Band Ben Heueisen, Olathe North High School; Andrew Wray, Olathe East High School One of six Kansas City-area students to receive a Certificate of Accomplishment from The Princeton Prize in Race Relations committee Casey Gardner, senior at Olathe East High School National Merit finalists Mason Crabtree, Brock Kaufmann, Matthew Miller and Travis Nebeker of Olathe East High School; Sabrina Bogart, Adam Coffman, Dylan Honors, Ethan Johnson, Alexander Kolar, Alexis McCalla and Arvind Subramanian of Olathe North High School; Cole Brabec, Sumner Holtzman, Zachary Kulphongpatana, Michael Lacy, Greta Lundy and Logan Rance of Olathe Northwest High School; Bethany Bluel, Nicholas Hinman, Emmalee Reed and Kyle Wetter of Olathe South High School 2017 U.S. Presidential Scholar candidates Mark Rowland, Olathe East High School; Alexander Kolar and Arvind Subramanian, Olathe North High School; Bessie Bauman, Cole Brabec, Sumner Holtzman and Greta Lundy, Olathe Northwest High School First place, Judges Award, and Safety Award at the North Star regional FIRST Robotics competition Olathe Northwest FIRST Robotics Team 1710 Kansas 6A Speech Championships Austin Shively, Olathe Northwest High School, state champion in Dramatic Interpretation; Amy Kaba, Olathe North High School, placed first in Oral Interpretation of Poetry; Reem Atallah, Olathe North, was runner-up in Informative Speaking; Zach Wallentine, Olathe North, was runner up in Impromptu Speaking 2017 National Merit Scholarship Program recipients Mason Crabtree and Brock Kaufmann, Olathe East High School; Adam Coffman, Ethan Johnson, Alexander Kolar and Alexis McCalla, Olathe North High School; Greta Lundy, Olathe Northwest High School; Bethany Bluel, Nicholas Hinman, Emmalee Jean Reed and Kyle Wetter, Olathe South High School XIV. Performance Measures Accomplishment of Goals and Objectives In Olathe, students continue to score above the nation and state on all standardized assessments given (ACT and SAT). State assessment results in reading, writing and mathematics continue to be above the state average as well Best School Districts rankings by Niche website, second in Kansas Leader in Me Lighthouse School Award from Franklin Covey Co. Forest View Elementary School Apple Distinguished School (eighth straight year) e-communication Academy, Olathe Northwest High School Meritorious Budget Award from the Association of School Business Officials International (20th consecutive year) Business Division Enhanced Spotlight Recognition for Social, Emotional and Character Development from the Kansas State Department of Education and the Brown v. Board of Education Historical Site Frontier Trail Middle School and Sunnyside Elementary School Exemplary Middle School of the Year and Finalist for Middle School of the Year from the Kansas Administrators of Middle Schools Association Chisholm Trail Middle School Olathe Public Schools Annual Budget Olathe Northwest High School One of 13 silver medal schools in Kansas as ranked by U.S. News & World Report Two Promising Practices Awards from Kansas Schools of Character and Character.org, Ravenwood Elementary School 2017 America s Most Challenging High Schools ranking by The Washington Post, Fulbright Distinguished Award in Teaching Short-Term Grant to Colombia Dana Nelson, Westview Elementary School Outstanding Biology Teacher of Kansas Award from the National Association of Biology Teachers and the Kansas Association of Biology Teachers Brittany Roper, Olathe North High School In Kansas, No. 8 is Olathe Northwest High School, No. 12 is Olathe North High School Alumni Hall of Honor in the Department of Health, Physical Education and Recreation at Emporia State University Jessica Dain, Education Center Results such as these do not just occur. It takes the dedicated leadership of administration and staff, as well as the efforts of students and parents. The community and Board of Education support the concept of continuous improvement, high standards and accountability. Certification from the National Board for Professional Teaching Standards Deborah Abernathy, Olathe South High School Kansas Horizon Award Kim Ingraham, Pleasant Ridge Elementary School 2016 Milken Educator Award from the Milken Family Foundation Stephanie Conklin, Brougham Elementary School One of 50 band directors who make a difference, as listed in School Band and Orchestra magazine Robert Davis, Olathe Northwest High School 34 Introductory Section

35 XIV. Performance Measures Academic Measures of Student Success (AMOSS) Kansas is moving away from measuring student progress with a single percent proficient measure, to a more diverse set of measures (Annual Measurable Objectives, AMOs) that will recognize schools for academic growth, closing the achievement gap, reducing the percentage of non-proficient students and student movement into higher proficiency levels. The use of AMOs is the process for making judgment as to whether or not public elementary and secondary schools, districts and our state are successful. Four levels of schools are identified: Level 4: Modeling, Level 3: Transitioning, Level 2: Implementing, Level 1: High Need. This chart reflects District data for reading and math for all students tested on the Kansas Assessment by identified level. Student results for school year were released in the Fall of Annual Measurable Objectives Year Kansas Reading Kansas Math 2017 Based on test participation and graduation rates 2016 Based on test participation and graduation rates 2015 Based on test participation and graduation rates 2014 Transition Year no results released 2013 Level 3: Transitioning Introductory Section 35

36 XIV. Performance Measures Olathe Public Schools Annual Budget Authenticated Application In past years, KSDE has provided the Measurable Objectives Authenticated Application for buildings and districts to review Participation and Graduation AMO data. For the school year, this application will be renamed AMOSS (Academic Measures of Student Success). If you currently have access to Measurable Objectives, you will automatically have access to AMOSS. No AMO reports for For the school year, AMO s will not be reported per ESSA (Every Student Succeeds Act). Building and district participation and graduation rates will still be calculated in the newly named AMOSS authenticated application and will be displayed on the public report card. The removal of the made or did not make columns is the only change for this school year. What Stays the Same in AMOSS? Participation Rates displayed Graduation Rates displayed Performance by Grade Report Participation Detail Report Complete Student Test Report Ambiguous School Error Report Availability of the Complete Student Test Download What Changes in AMOSS? New Participation Rules will be implemented. Additional subgroups for 2016 per ESSA requirements (homeless and ELL with disability). Military connected subgroup will be added in Foster care student subgroup will be added in Introductory Section

37 XIV. Performance Measures ACT Results The four academic tests of the ACT assessment measure abilities in the academic areas traditionally identified with college preparatory high school programs: Math, Reading, English and Science Reasoning. This chart provides a five year comparison study for students in Olathe School District. The scores represent the average ACT scores for the graduating class of 2017, where only the last reported ACT score of each student is included. ACT test scores are reported on a scale that ranges from 1 to 36. Highlights of Accomplishments for this Objective: 74% of our graduating seniors took the ACT exam in Composite scores continue to be strong for students in Olathe Public Schools. Students in Olathe continue to outscore their peers across the state and the nation. ACT data is not available until mid-to-late August, following a school year. 5- Year ACT Results Comparisons Year English Mathematics Reading Science Composite ACT Results Year Olathe State of Kansas Nation Introductory Section 37

38 XIV. Performance Measures Olathe Public Schools Annual Budget SAT Results The SAT is designed to measure verbal and mathematical reasoning skills that are related to academic performance in college. SAT scores are intended to help predict the freshman year college performance of individual students. Highlights of Accomplishments for this Objective: Olathe students scored above the Kansas and national averages in both ERW (English, Reading, Writing) and Math categories. This chart reflects a District summary report reflecting year to year comparison data for students taking the SAT assessment. Olathe had 5% of its students take the SAT during the school year. SAT data is not available until September, following a school year. 5-Year SAT Results Comparisons Year ERW Mathematics Number of Students Tested SAT Results ERW Mathematics Number of Students Tested Olathe Kansas ,029 Nation ,834,515 While school budgets and staffing allocations are based on each school s projected enrollment, consideration is given to schools with higher at-risk populations. These schools receive additional funds and staffing to ensure equivalent academic opportunity experienced by other schools in the District. Beyond these allocations, school administrators are free to allocate financial and staffing resources to the areas they see as a priority to reach the highest academic achievement possible for their school. 38 Introductory Section

39 XIV. Performance Measures Drop Out Rate Program enhancements began in the summer of 1992 as the District responded to the growing number of high school drop-outs. At-risk funding supplemented by general fund allocations supported the development of a comprehensive drop-out prevention program including the establishment of an early elementary intensive reading program, after school programs and clubs, special tutorial opportunities for students K-12, secondary school campus-based programs as well as summer school and alternative education programs. Reductions in the drop-out rate have indicated early program success. Future reductions are an important goal of on-going district planning and program development. Graduation Rate The US Department of Education passed regulations requiring all states to calculate graduation using a 4-year adjusted cohort rate. In addition, states were given the option to use an extended-year rate. Kansas chose to calculate a 5-year rate. The 2010, 4-year and 5-year graduation rates are baseline data and these rates are calculated differently than previous graduation rates. As a result, no comparisons can be made between published graduation data (2009 and earlier) and the 2010 and later rate. Student Drop Out Statistics* Year Olathe% State% % 1.7% % 1.6% % 1.5% % 1.4% % 1.4% % 1.5% % 1.5% % 1.4% % 1.7% % 1.8% % 1.7% % 1.5% % 1.5% % 1.7% % 3.0% % 3.0% *State dropout rate based on grades Highlights of Accomplishments for this Objective: The drop-out rate for Olathe Public Schools is below the state drop-out rate. Student Graduation Rates** Year Olathe% State% % 86.9% % 87.0% % 86.1% % 86.0% % 83.0% % 83.0% % 80.7% % 89.1% % 89.5% % 89.2% % 89.7% % 90.2% % 87.7% % 89.5% % 83.4% % 85.2% **Graduation rate is determined by looking at the same group, or cohort, of students from the 9th grade year through the 12th grade. Highlights of Accomplishments for this Objective: Graduation rates for Olathe Public Schools are above the state average. Introductory Section 39

40 XV. Full Budget Document Document Segmentation Olathe Public Schools Annual Budget This concludes the INTRODUCTORY SECTION for this budget document. The remaining sections of the full budget document provide detailed and supplementary information to support the budgets as presented. The ORGANIZATIONAL SECTION provides detailed information on Olathe Public Schools, the largest human resource organization in Olathe. This section provides insights into the Vision, Guiding Principles and Beliefs of the District. Information on how state statutes regulate our operations and significant accounting practices are included. This section concludes with a detailed description of the total budget development process including goals and time-tables; along with budget administration and management practices. The FINANCIAL SECTION provides all the information necessary to understand the structure of the District s financial documents. Descriptions of fund types, revenue and expenditure classifications are included. Detailed budget schedules for all funds are included to provide historical financial standings as well as future projections for each fund. Proposed capital improvement expenditures along with debt obligations are also included. The INFORMATIONAL SECTION includes projected budget schedules, enrollment trends, historical data comparisons, data, charts and assorted information in support of the budgets. This section is intended to help the reader have a better understanding of the history and future of the District as a growing entity. Acknowledgments We appreciate the support from the Board of Education and Community in providing the students of Olathe Public Schools a high level of educational opportunities. This budget reflects the continuous mission of the District in providing the level of educational services the community expects. John Allison Superintendent John Hutchison Chief Financial and Operations Officer Jean Katzer Budget Manager Erica Derrington Graphic Communications Manager Suzanne Fravel Executive Assistant CURT FEHR GRAPHIC DESIGNER 40 Introductory Section

41 XVI. A Message From the Board of Education providing the organizational climate and resource alignment to maximize student learning and achievement. (Left to Right): Amy Martin, Joe Beveridge, Brent McCune (President), Rick Schier, LeEtta Felter, Shannon Wickliffe (Vice President), Mike Poland As a Board of Education, we are very appreciative of the support our community provides to ensure that all of our students are prepared for their future. The community entrusts us with the responsibility of not only the use of our tax dollars by way of the District budget, but also with the responsibility of educating all of our children. Each year, we work to be good stewards of tax payer dollars, while In these tough economic times now more than ever, the support of the community is needed. We are incredibly thankful to the community because for decades we have worked hand in hand to make ours a school district that is second to none. We look forward to many more years of community support and engagement. Our vision of Students Prepared for Their Future guides us in our decision making, as well as the decision making of the district staff members. Together with staff and community we can achieve great things for our students, who in turn we know will do great things for our community, state and nation. Document Summary A quality school is a place where... students and learning are the focus of all activities high expectations for academic achievement and good citizenship are met sufficient modern resources and technology are available safety and cleanliness are maintained student-teacher ratios and teacher workloads allow optimum student-teacher interactions A quality school has people who... provide a caring, positive climate accept and value the worth of each individual create a supportive environment through open communication share leadership toward a common vision exhibit professional self-motivation A quality school develops programs which... recognize the importance of individual teacher to student relationships encourage continuous staff renewal and learning benefit from the partnerships with the family and community prepare students for immediate and long-range goals provide extra- and co-curricular activities ensure the curriculum meets the needs of all students and the instruction meets the needs of each student Introductory Section 41

42 XVII. District Services Olathe Public Schools Annual Budget General Administrative Services John Allison, Superintendent Dr. Alison Banikowski, Deputy Superintendent John Hutchison, CPA, SFO, Chief Financial & Operations Officer Dr. Erin Dugan, Assistant Superintendent General Administration Student Services Dr. Jim McMullen, Executive Dir. General Admin. Secondary Programs Dr. Brent Yeager, Executive Dir. General Admin. Elementary Programs Scott Mason Staff Counsel Tim Brady, Director Athletics and Activities Controller Cassy Osborn, CPA Business Services Merle Hastert, Director Scott Carpenter, Assistant Director Procurement Communications Maggie Kolb, Director Employee Services Genevieve Hale, Director Human Resources Mark O Dell, Executive Director Dr. Cathy Donovan, Executive Director Elementary Personnel Dr. Steve Massey, Director Certified Personnel Dr. Eric Punswick, Director Classified Personnel Operations and Facilities Tom Lillis, Director Denise Carpenter, Assistant Director Operation Services Student and Community Development Cindy VonFeldt, Executive Director Olathe Public Schools Foundation Teaching and Learning Dr. Jessica Dain, Assist. Superintendent Gail Holder, Assistant Director Rich Wilson, Director Assessment & Data Dr. Jan Heinen, Director Instructional Support Programs Dr. Lanie Fasulo, Director Special Education Deb Chappell, Assistant Director Special Education Technology Dr. Josh Anderson, Executive Director Richard Markman, Director Network Services Chad Sheridan, Assistant Director Network Services Brandon Lien, Assistant Director Information Systems Matt Vrlenich, Assistant Director Technology Projects Other Support Services Sharon Morris, Director Health Services Scott Kingery, Director Food Services Introductory Section

43 XVIII. Meritorious Budget Award Certificate This Meritorious Budget Award is presented to OLATHE UNIFIED SCHOOL DISTRICT NO. 233 for excellence in the preparation and issuance of its budget for the Fiscal Year The budget adheres to the principles and standards of ASBO International s Meritorious Budget Award criteria. Mark C. Pepera, MBA, RSBO, SFO Acting President John D. Musso, CAE, RSBA Executive Director Introductory Section 43

44 44 44 Introductory Section Organizational Section