Key Budget Points August 2015

Transcription

1 Pasco School District Budget Key Budget Points August 2015

2 Budget Calendar June 30 State budget adopted July 28 Study Session: Proposed Budget August 11 Final Budget Hearing/Adoption (Public meetings, Board input, advertise final hearing twice in prior two weeks, proposed budget available to public) By law, the budget must be adopted by August 31 annually.

3 2014 Estimated Ending Fund Balance The $37.6 Million Question: One Number, Three Buckets (Remaining $1.7M was for planned fund balance reduction in budget Fund balance dollars are one-time dollars and cannot be used for ongoing salary and compensation purposes. Once spent, they are Honoring not replenished. the past, celebrating the present, preparing for the future

4 $12.5 Million This bucket contains dollars that are already spent, being carried over for items purchased before August 31, 2014 that will be paid after that date, and carryover from special purpose funds, such as federal or state grants and cannot be used for increases in employee compensation or any purpose outside the legal restrictions on the funds.

5 $8.2 Million This bucket is the boardadopted 5% of revenue unrestricted fund balance. This is among the sound accounting practices that earned the District top bond ratings, saving Pasco taxpayers dollars.

6 $15.2 Million This bucket is assigned by the board. Assignments are made based on the board s priorities and to manage future expenses, like your savings account when a big purchase is in the future. For example, an assignment exists to replace electronic devices. In the world of fund balances only Bucket #3 is flexible and can be reassigned based on the board s priorities. These priorities were developed in public meetings and have been reprioritized by the board. Bargaining proposals Honoring include the use past, of these celebrating funds. the present, preparing for the future

7 Proposed Budget Summary GENERAL FUND CAPITAL PROJECTS FUND DEBT SERVICE FUND ASB FUND TRANSPORTATION VEHICLE FUND Beginning Fund Balance: $21,164,787 $17,694,533 $4,492,409 $1,221,080 $1,152,098 Add: Revenues 194,630,836 20,412,822 12,193,950 4,453, ,600 Add: Transfers In 2,800,000 1,400,000 Total Resources Available 215,795,623 40,907,355 16,686,359 5,674,339 3,188,698 Less: Expenditures* (195,630,836) (31,920,000) (13,795,174) (4,252,978) (1,884,000) Less: Transfers Out (4,200,000) Ending Fund Balance $15,964,787 $8,987,355 $2,891,185 $1,421,361 $1,304,698 *The August 11 resolution will be to adopt appropriations (expenditures only) for each fund above

8 General Fund Revenue by Source

9 2014 Assessed Value and Levy Rates Rank School District Levy Amount Assessed Value Levy Rate per $1,000 FTE Students Assessed Value per Student 16Pasco 20,300,000 4,705,934, , ,017 91Kennewick 23,400,000 6,722,344, , , Richland 20,938,000 6,420,757, , ,433 State Average ,002, ,643

10 General Fund Expenditures by Object

11 Expenditures by Activity Groups 70% % of Total Expenditures 60% 50% 40% 30% 20% 10% 0% Teaching Activities Teaching Support Other Support Services Principals, School Offices Central Services Pasco 58.8% 11.0% 17.8% 5.8% 6.5% Pasco 58.3% 10.9% 18.4% 6.0% 6.4% SAO Peer Group 56.8% 13.1% 17.6% 6.0% 6.5% State Average 58.9% 10.7% 18.0% 6.0% 6.4% SAO Peer Group: Washington State Auditor s K-12 Spending Audit Report, 2012 State Average: Office of Superintendent of Public Instruction

12 Budget Summary: Partly Cloudy State funding increased but No corresponding decrease in reliance on local levies Why? General Fund expenditures are overwhelmingly for salary and benefits and growing many of these are not covered by state funding Revamped levy equalization formula yields less revenue than old formula

13 Points to Take Away $37 million is the total fund balance at August 31, 2014; all but $15 million is restricted in its use by law, contracts and Board action The remaining $15 million can be reprioritized but, because of it s one-time availability, fund balance is not a reliable source to pay ongoing costs like salaries Pasco receives more funding, proportionately, from state and federal sources than most other districts, but those funds bring less flexibility in use Pasco s ability to raise local funds is limited by a relatively small tax base/higher levy rate General Fund expenditures are overwhelmingly for salary and benefits (83%) not all are covered by state funding or grant programs Any increase in costs that are not provided through state revenue will be borne by local levy dollars

14 Questions?