Budget Advisory Committee

Transcription

1 Budget Advisory Committee October 17, 2018 Alicia Henderson, Ph.D., Superintendent Elyssa Louderback, Executive Director of Finance and Operations

2 Agenda 1. Welcome a. b. c Purpose, Scope & Responsibilities Norms Message from the ASD5 Board Introductions Organization of Public Education in Washington 10-mi 4. Public School Finance mi Bre Bre McCleary Case Budgeting Basics Ad o n

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4 Purpose & Scope The Budget Advisory Committee (BAC) provides a structure for the involvement by a variety of district and community members with unique knowledge and skills to offer in establishing budget priorities for ASD5. This committee is advisory, and supports the Superintendent in providing recommendations and key information to the board of directors regarding both short and long-term financial management that support the mission and priorities of the District.

5 Mission & Priorities Mission: Provide a general education program to all students ages 5 through high school graduation. Provide a special education program to students with eligible disabilities from birth to 22. Priorities: Locally determined by community

6 Responsibilities Develop an understanding of the District s budget and financial issues Develop recommendations on fiscal and program priorities that ensure a balanced budget Contribute to improved communication to enhance understanding of the District s budget and financial condition Contribute to and support a transparent and collaborative budgeting process

7 Recommendations The Budget Advisory Committee is charged with making recommendations regarding the priorities of the community to the Aberdeen School Board of Directors in January Estimated cost savings needed for : $1 million Estimated cost savings needed for : $3.5 million These recommendations will be presented as follows: Very Strong Recommendation (Consensus: 100%) Strong Recommendation (Supermajority: 70%) Recommendation (Simple majority: 51%)

8 Norms Committee Members: Attend all meetings (Oct. 17, Nov. 7, Nov. 28, Dec. 5, Jan. 9) Listen, refrain from sidebars Make sure you understand, ask clarifying questions Be open to new / innovative ideas, even out-of-the-box ideas Speak up, contribute ideas with a solution orientation All voices will be heard, silence does not mean acceptance Assume positive intent Respect & civility at all times Say it here Members of the Public: Observe BAC meeting Submit comments / questions on index cards

9 Message from Aberdeen School Board Sandra Bielski, President Erin Farrer, Vice-President Jeff Nelson William Dyer Jennifer Durney

10 Introductions

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13 Whe es m e c ro & w e d e Big Idea: Expenditures Big Idea: Revenues Types Restricted - Categorical Unrestricted Sources Local Federal State g? Salaries & Benefits Materials, Supplies & Operating Costs MSOCs Special Programs Transportation Food Service Preschool District Initiatives Capital Projects Special Education Alternative Learning Environment (ALE)

14 Overview of Funds Number State Revenue Federal Revenue Local Revenue General Fund Fund 1 X X X Capital Projects Fund Fund 2 X X Debt Service Fund Fund 3 X X Associated Student Body Fund Fund 4 X Private Purpose Trust Fund Fund 7 X Transportation Vehicle Fund Fund 9 Name X

15 State Summary of Revenues Local = 20.9% State = 70.8% Federal = 7.1% Other = 1.2% * Includes General Long Term debt proceeds, proceeds from sales of fixed assets, Transfers in. OSPI - SAFS - Publications - Financial Summaries Sec.1; Table 3

16 Revenues: Local Tax: Non-Tax: Local Enrichment (formerly Local Levy) State Timber Excise State School Tax (new in 2018) County Administered Timber Forest Funds Donations Fees Fines/Damages Insurance recoveries Interest Tuition Sales of goods Endowments/Grants from local agencies

17 Revenues: Federal General: Special Purpose: Federal Forests Impact Aid Federal In Lieu of Taxes FEMA grants Title Programs USDA Food Service Medicaid Admin Match Special Education Carl Perkins Voc.Ed grants Gear Up

18 Revenues: Federal Title Programs Elementary and Secondary Education Act (ESEA) Title I -- Improving the Academic Achievement of the Disadvantaged Title II -- Preparing, Training, and Recruiting High Quality Teachers and Principals Title III -- Language Instruction for Limited English Proficient and Immigrant Students Title IV -- 21st Century Schools Title V -- Promoting Informed Parental Choice and Innovative Programs Title VI --Flexibility and Accountability Title VII -- Indian, Native Hawaiian, and Alaska Native Education Title VIII -- Impact Aid Title IX -- General Provisions Title X -- Repeals, Redesignations, and Amendments to Other Statutes Part C -- McKinney-Vento Homeless Education Assistance Improvements Act of 2001

19 Revenues: State General: Apportionment Special Purpose: Enrollment, Levy Equalization (LEA), Career Technical Education (CTE), Alternative Learning Environment (ALE), Running Start, Inflation factor (IPD) 1.9%, Regionalization, Experience factor, Special Education, Class Size Reduction (CSR), Materials Supplies & Operating Costs (MSOC) Special Education, Learning Assistance Program (LAP), Bilingual, Transportation, Highly Capable, School Lunch

20 Revenues - Other Cooperative Agreements Non-High Participation Specific Set-Asides: Capital Projects Debt Service Fund ASB Transportation Trust

21 State Summary of Expenditures Employee Costs Salaries = 60.3% Benefits = 22.3% Total = 82.7% MSOC s Supplies = 5.5% Services = 11.1% Travel = 0.3% Capital Outlay = 0.4% Total = 17.3% OSPI- SAFS- Publications - Financial Summaries Sec 1; Table 6

22 Expenditures: Salaries & Benefits Employee Salaries Salary schedules for each employee group Annual Step increase Column increase for education (certificated only) Annual cost of living increase Negotiated salary increases Employee Benefits Health (medical, vision, dental) Retirement contributions Unemployment contributions

23 Step & Column Step increase each year & Column for education Step increase each year s a l C d e i sif d e t ca i f i t er C LEAP Document 1

24 Expenditures: MSOCs Materials, Supplies & Operating Costs Supplies: curriculum, classroom materials, office supplies, etc Contracted Services: insurance, utilities, specialists Travel: mileage, meals, hotel expenses Capital Outlay: building improvements, technology, purchases > $5,000 that are nonexpendable, tangible items (e.g.playgrounds)

25 Transportation: Operations (Fund 1) Revenues State Apportionment - Restricted Contracted Services Salary/Benefits Levy funds - Unrestricted Supports complete program for To/From school miles Expenditures Supports athletics/activities transportation, swimming, etc Other funding Unrestricted Rentals Grants Bus drivers Fuel/Supplies Fuel, oil, belts, etc Insurance Other Transportation Services Bus tickets (Homeless) Private use

26 Transportation: Vehicles (Fund 9) Expenditures Revenues Used for the purchase and major repair of pupil transportation equipment (defined as buses) Funded from State reimbursement to school districts for depreciation of buses. Although, other sources are available such as non-voted debt and special levies. - Restricted

27 Preschool (Fund 1) Revenues Expenditures ECEAP (Early Childhood Education and Assistance Program) -Restricted Funded through the Department of Early Learning Title I (set asides)- Restricted Special Education funds Salary/ Benefits Supplies (classroom, office) Contracted Services For students ages 3-5 Levy funds - Unrestricted - Restricted Teachers, Para-Educators, Family Service Workers, Coordinator Other School Districts Travel Capital Outlay

28 Food Service (Fund 1) Revenue State Apportionment - restricted Federal Apportionment - restricted USDA National School Lunch USDA School Breakfast Programs USDA Commodities Local funding Catering services Breakfast/lunch fees (students/staff) Expenditures Salary & Benefits Supplies Professional membership/training Travel Food,paper products Utensils office supplies Contracted Services Food Service Workers, Cooks, Director, Office support Mileage, meals, hotel accomodations Capital Outlay New/replacement equipment

29 Special Education (Fund 1) Revenues State Apportionment - Restricted Birth to age 2 Age 3 to 5 Age K to 21 years Federal Grants - Restricted Safety Net funds (State or Federal) - Restricted Medicaid Admin Match Unrestricted Expenditures Salary/ Benefits Supplies Third Party Vendor Specialists (not district employees) Travel Classroom, Office Contracted Services Teachers, Para-Educators, Director, Support Staff (clerical), Specialists (SLP, OT, Psych) Mileage, meals Capital Outlay Equipment/Improvements to facilities to care for students in Special Programs

30 Capital Projects (Fund 2) Revenues Expenditures Funded from proceeds from the sale of voted or non-voted bonds, special levies, state funding assistance, impact/mitigation fees, lease or sale of surplus real property, interest and insurance proceeds. - Restricted Used for the acquisition of land or existing facilities, construction of buildings, purchase of equipment, conducting energy audits & making cost effective improvements based on results of the energy audit.

31 Additional Special Programs Associated Student Body Funds (ASB) Alternative Learning Environment (ALE) Running Start

32 District Initiatives Abe Sc o d ri s id f a s o fo m ov t ef t d re ce n s Big 5 1. Post-Secondary Success: Advancement Via Individual Determination (AVID) 2. Discipline: Positive Behavior Intervention and Support (PBIS) 3. Special Education 4. Updated Curriculum 5. Technology

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34 McCleary (2007) Case: Background Problems Solutions State was not fulfilling its paramount duty to fund BASIC EDUCATION from regular and dependable sources Local levies have been unconstitutionally relied upon to provide a basic educational program 1. Define BASIC EDUCATION 2. Increase state funding 3. Reduce reliance on local levies to fund education 4. Limit use of local levies for enrichment only

35 McCleary: What is Basic Education? The Legislature enacted the Basic Education Act (BEA) to define the state s program of basic education and to determine funding allocations for it. This funding formula is based on the annual average number of students enrolled (AAFTE). Prototypical School Model Defines Basic Education by: Assumed levels of staff Assumed need for materials, supplies and operating costs (MSOCs) Assumed need for facility repairs / maintenance Does not include extra-curriculars

36 McCleary: Changes in School Funding Requirement for 4-Year Budgets Eliminated State Salary Allocation Model (SAM) Apportionment Changes Staff Mix for certificated staff replaced by a flat State Average Salary Regionalization Factor (6%-24%) added to some metropolitan districts to offset housing costs (cost of living in those areas) Experience Factor (4%) added to approximately 50 districts Reduction in Levy collection to lesser of $1.50/ $1,000 or $2,500 per FTE student Use for Enrichment activities only

37 McCleary: Timeline 2007 McCleary lawsuit 2009 Quality Education Council defines Program of Education ( Basic Education ) 2010 McCleary Decision 2012 State Appeal, McCleary Upheld 2013 HB 2776 funding increase for transportation and MSOCs 2017 HB 2242 funding increase for Basic Education proposed 2018 New State Schools Tax begins in January 2018 Legislature approved budget to implement HB 2242 in Limit on Local Levies begins in January

38 School District Budget Basics Budgets are Built Upon Assumptions Golden Rules: Avoid Deficit Spending Plan for Sustainability a. 3. a. b. c. d. Required 4 year projections Maintain Adequate Reserves a. b. c. Economic uncertainty Cash flow 5% (1 month salary) e. f. g. Enrollment Staffing (salaries & benefits) Inflationary factors i. Implicit Price Deflator (IPD) - as designated by the State for revenue Salary increases i. Step & Column ii. Consumer Price Index (CPI) iii. Negotiated increases Benefit increases i. Health (SEBB) ii. Retirement contributions Debt Service Anticipated capital expenses

39 Next Steps 1. Follow-up: Feedback, questions, request for information (Google form) 2. November 7th: Focus on ASD5