School Board Meeting. August 14, 2018

Transcription

1 School Board Meeting August 14, 2018

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4 New Teacher Induction

5 Convocation 7:15am Breakfast (Sponsored by Chartwells) 8:00am Convocation Celebration 10:00 Break 10:15am Breakout Sessions 11:45am Lunch (Sponsored by IQ Credit Union) 12:30pm Breakout Sessions 2:00pm Break (Ice Cream!) 2:15pm Site Activities

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7 Financial Update Paula McCoy, CFE Executive Director of Business Services August 14, 2018

8 Objectives Provide an overview of school finance Review the significant changes impacting school finance between and Provide an updated on Capital Fund balances

9 School Finance How do schools receive funding from the State? SHB 2776 passed during the 2010 legislative session developed the current prototypical funding formula which is used to allocate funds to school districts.

10 Prototypical Funding Funding Formula assumptions are based upon a prototypical school and an assumed prototypical class size. Class size assumptions are different based upon grade an subject. Planning time for teachers is acknowledged in determination of class size. The model was developed to be scalable to respond to changes in enrollment up or down from the values in the formula.

11 Prototypical Funding Enrollment is the primary driver that determines funded staffing levels. The following are the base enrollment figures that drive In reality, school configurations vary widely, and are rarely consistent with the prototypical model.

12 Prototypical Funding Are District s required to staff at a specific level as determined by the prototypical model and only use the categories of funding as allocated? No, SHB 2776 stated that the distribution formula shall be for allocation purposes only. Nothing requires school districts to maintain a particular classroom teacher to student ratio or other staff to student ratio. Funds allocated to categorical programs (Learning Assistance, Special Ed, etc.) continue to be restricted for us in those programs. Districts determine their own structure for delivery of those services based upon local needs.

13 Changes to Funding Model For SY Staffing Allocations are still based upon prototypical model Teacher salaries State moved away from its previous method of funding salaries which was based upon staff experience and education. o o o o New funding method is a fixed rate per funded unit ($65,216) plus a local regionalized factor. For the funded amount for Ridgefield is approximately $69,129 per funded teacher. (regional adjustments vary statewide 1.0 to 1.24) Funding is irrespective of actual costs. Loss of state salary schedule Districts have to separately negotiate pay for their teaching staff. Additional teacher compensation must be tied to additional time or responsibilities. This eliminates the previously recognized deemed done compensation that has historically been included in the TRI.

14 Changes in Funding Model Classified Salaries The State increased the funding allotment for classified salaries from $33,412 to $49,591 per funded unit. o The state did not change its methodology for how it determines funded units in the prototypical funding formula. o This still results in a significant underfunding of staffing costs as the District staffing levels are higher than the funded levels. Administrative Salaries The State increased the funding allotment for certificated administrative salaries from $66,396 to $102,613 per funded unit.

15 Changes to Funding Model Restrictions on Use of Levy The Maintenance and operations (M&O) levy can no longer be used to support the costs of basic education. o Separate accounting will be required in to show the use of local funds. o Use of levy to fund teacher salaries for deemed done work will no longer be allowed. o State will perform audits to ensure districts are complying with these requirements. o District is anticipating it s levy revenue to decrease by approximately $658K in school year, and an additional $700K in the school year. o Reductions in levy amounts aren t consistent statewide.

16 Funding Changes As a result of the changes implemented as a result of recent legislative changes, the District has experienced a significant increase in funding: * Funding based upon budgeted revenues & does not take into effect full effect of levy reduction occurring in Per Pupil Funding * Average/Student $ 10, $ 11, $ 12, Note: The state-wide average state and local funding per pupil is $13,670 (Source OSPI multi-year tool updated )

17 Changes in Levy Rates

18 Capital Fund Capital Fund balances as of June 2018 are as follows: *Unrestricted - $ 300,000 Impact Fees - $ 4,140, Bonds - $ 183, Bonds - $ 19,367,042 *Note: These funds were approved for the RHS weight room improvements

19 Budget Hearing Paula McCoy, CFE Director of Business Services August 14, 2018

20 Budget Overview General Fund $41,515,040 Capital Projects Fund $38,100,000 Debt Service Fund - $6,310,400 Associated Student Body Fund - $615,421 Transportation Vehicle Fund - $620,000

21 General Fund Enrollment Revenues Staffing Expenditures Ending Fund Balance Projections

22 Enrollment Factors used to estimate enrollment include: Growth Trends o Birth rates o Class size information o Building permit activity Conservative Approach

23 Enrollment Projection Average Actual Enrollment Grade Budgeted Kinder *Excludes Running Start *Excludes Running Start Total FTE 2, , , , , Running Start ALE

24 General Fund Enrollment Revenues Staffing Expenditures Ending Fund Balance Projections

25 General Fund Revenues Total Revenues - $ 40,815,224 Increases o Apportionment $5,988,000 Increases in staffing funding allocations Payroll fringe benefits Insurance/retirement IPD adjustment for MSOC s 7% Increase in enrollment o Special Education State $1,024,000 o Local Receipts - $300,000 o Transportation - $160,000 Decreases o Local Levy - $658,000

26 Estimated Revenues 2.7% 0.2% 13.7% 14.4% 3.1% Property Taxes Local Revenues State Apportionment State Special Purpose Federal Other 65.9% General Fund Revenues

27 General Fund Enrollment Revenues Staffing Expenditures Ending Fund Balance Projections

28 Staffing The State Apportionment funding formula does not include funding for all basic education staff: Staff Category Administrative Certificated Classified BEA State Allocation BEA District Staffing Other Programs (SPED, Grants, Comm ED) $102, $69, * $ 49, * State BEA funding includes an allocation for custodial, nursing and security services. The district contracts out for these services and does not have its own employees

29 Staffing The District s staff costs are based upon individual collective bargaining agreements. Differences between state funding and actual costs are primarily funded by the District s Maintenance and Operations Levy: BEA SALARY FUNDING VS ACTUAL COSTS Category Funded Actual Difference Administrative $ 1,536,224 $ 1,863,084 $ (326,860) Certificated $ 15,246,537 $ 16,051,082 $ (804,545) Classified $ 3,666,664 $ 4,307,239 $ (640,575) Total $ 20,449,425 $ 22,221,405 $ (1,771,980)

30 Staffing Changes INCREASE IN FTE Certificated Classified Administrative 3 Secretaries 7.7 Secondary Teachers SRIS/Tech/RHS 3 Elem Teachers 2.5 SPED staff 1 Counselor SRIS 1 Acct Support.75 Elem Spec Teacher 1 RORC Grounds.6 Occupational 1 Receptionist VR/SRIS Therapist.3 Library media 1 Principal SRIS

31 General Fund Enrollment Revenues Staffing Expenditures Ending Fund Balance Projections

32 Expenditures The District has allowed buildings/departments to carryover up to 15% of unused budget from the previous year into the new year. This practice allows the district to save for larger purchases in future years. The following amounts were carried over into budget: Carryover from Building/Dept. Carryover $300,000 Professional Funds CIS/CAS $100,000 Donations $25,000 Total $425,000

33 Expenditures Significant Changes include: Certificated Salaries and Benefits - $3,630,000 Note: Budget reflects changes in salary which are tied to the collective bargaining process for Certificated Teachers and represented classified staff. Classified Salaries and Benefits - $2,676,000 New Intermediate School - $600,000 Transportation - $160,000 RORC - $251,000

34 Expenditures 0% Total Expenditures $41,300, % 20.0% 11.7% Classified Salaries Employee Benefits 6.2% 21.4% Certificated Salaries Supplies Travel Contracted Services 40.4% Capital Outlay

35 Expenditures Major components of contracted services are: Transportation $2,020,000 Utilities/Insurance $1,284,000 Janitorial Services $1,150,000 Food Service $ 684,000 Other School Districts $ 433,000 Running Start $ 539,000 Technology/software $ 363,000 Professional Development $ 307,000 Nursing/Security $ 225,000 Legal/Election/Audit $ 197,000 Total $7,202,000

36 Expenditure Changes by Activity 70.0% 60.0% 61.6% 60.2% 57.5% 50.0% 40.0% FY FY % 20.0% 10.0% 10.9% 8.7% 13.3% 18.0% 16.8% 17.7% 5.3% 5.3% 5.1% 6.5% 6.8% 6.4% FY % Teaching Teaching Support Other Support Activities Principal's Office Central Administration

37 Special Education Program The District continues to make investments in its Special Educational Service program offerings. For , this included hiring additional staff: Para s,.5 Nurse, and.6 Occupational Therapist. Program Changes Difference Total Special Ed. Revenues $3,184,244 $ 4,330,685 $ 1,146,441 Salaries & Benefits $3,519,225 $ 4,866,729 $ 1,347,504 Non-salary Costs $471,488 $ 591,889 $ 120,401 Total Cost $3,990,713 $5,458,618 $ 1,467,905 Difference ($806,469) ($1,127,933) ($321,464)

38 Discretionary Very little funding is discretionary: FY FY FY % 17-18% 18-19% Salaries and Benefits $ 18,239,126 $ 23,653,075 $ 30,347, % 70.2% 73.1% Non-Discretionary $ 7,587,976 $ 7,095,818 $ 8,980, % 21.0% 21.6% Discretionary $ 3,381,778 $ 2,962,012 $ 2,186, % 8.8% 5.3% Total $ 29,208,880 $ 33,710,905 $ 41,515, % 100.0% 100.0% Non-Discretionary - includes costs related to federal and state restricted programs (Special Education, Title I, etc.) utilities, transportation, Food Service, State fiscal and curriculum software licensing, insurance, debt service, etc. Discretionary Includes costs related to building supply allocations, department allocations for non-continuing contracted services, athletics, curriculum, etc.

39 Uses of Levy Funds Levy Funding $ 5,597, Uses Extracurricular $ 864, Extra Hours/Leave Buyback $ 779, TRI Compensation for Cert Staff $ 586, Certificated Absences beyond state funding $ 292, MSOCs $ 2,136, Workers Comp/Unemployment $ 108, Unfunded Salaries Admin Salaries $ 326, Classified $ 640, Prof Dev TOSAs $ 187, SPED & Certificated $ 1,127, Personal Professional Growth Funds Certificated PPGI $ 235, Classified PPGI $ 3, Admin PPGI $ 13, Net Difference $ (1,706,109.00)

40 Materials Supplies and Other Costs (MSOC) Per State Supplemental Budget Section 502(8)(a)(ii) pages , the District s budget includes the following MSOC expenditures: MSOC ALLOCATION UTILIZATION BEA Allocation BEA Budgeted HS CTE $ 236,997 $ 353,436 MS CTE $ 77,999 $ 62,830 Regular $ 3,803,236 $ 5,838,855 * Total $ 4,118,232 $ 6,255,121 * State BEA funding includes an allocation for custodial, nursing and security services. The district contracts out for these services and does not have its own employees

41 General Fund Enrollment Revenues Staffing Expenditures Ending Fund Balance Projections

42 Budgeted Fund Balance Beg Fund Balance 9/1/2018 $4,394,763 Revenue Budget 40,815,224 Expenditure Budget 41,300,040 Transfers Out 215,000 Estimated End Fund Balance 8/31/2019 $ 3,694,947* *Assumes no unspent budget District practice has been to allow departments/buildings to carryover a portion of unspent resources into the next year.

43 Other Funds Capital Projects Debt Service Associated Student Body Transportation Vehicle

44 Capital Projects Fund Summary Estimated Beginning Fund Balance $26,500,000 Revenues $12,354,000 Expenditures $38,100,000 Estimated Ending Fund Balance $ 754,000 Anticipated projects include: View Ridge Admin/Security projects Modular classrooms RHS addition Land purchase and design for new elementary

45 Debt Service Fund Summary Estimated Beginning Fund Balance $ 1,632,100 Revenues $ 6,541,100 Expenditures $ 6,310,400 Estimated Ending Fund Balance $ 1,862,800

46 ASB Fund Summary Estimated Beginning Fund Balance $ 260,093 Revenues $ 712,058 Expenditures $ 615,421 Estimated Ending Fund Balance $ 356,730

47 Transportation Fund Summary Estimated Beginning Fund Balance $ 500,010 Revenues $ 123,000 Expenditures $ 620,000 Estimated Ending Fund Balance $ 3,010

48 Four Year Budget Assumptions Increase in revenues tied to IPD (1.9-2%) growth Average increase in enrollment of 7% annually Increase in expenditures based upon budget of 3% annually, plus added positions tied to enrollment growth contracted class size limits Proposed salary increases from recent salary offers Planned gradual spend down of ASB fund balance Capital Projects expenditures tied to enrollment growth.

49 Four year enrollment outlook K ,024 1,070 1, ,058 1,141 Total 3,085 3,301 3,532 3,779 ALE Running Start ,200 1, K ALE Running Start

50 Four year staffing outlook Certificated Classified Total Certificated Classified

51 Multi-year General Fund Revenue Comparison Revenue 33,749,947 40,815,224 42,704,546 45,769,546 48,867,063 25% 20% 21% Revenue % Increase 15% 10% 7% 7% 17/18 vs 18/19 18/19 vs 19/20 19/20 vs 20/21 20/21 vs 21/22 5% 5% 0% Revenue

52 Multi-year General Fund Expenditure Comparison Expenditures 33,033,904 41,300,040 43,879,629 46,567,368 49,201,954 25% 20% 23% Expenditure % Increase 15% 10% 17/18 vs 18/19 18/19 vs 19/20 19/20 vs 20/21 20/21 vs 21/22 5% 6% 6% 6% 0% Expenditure

53 Four Year Budget Outlook General Fund Beginning Fund Balance $ 4,394,763 3,694,947 2,304,864 1,292,042 Revenue 40,815,224 42,704,546 45,769,546 48,867,063 Expenditures 41,515,040 44,094,629 46,782,368 49,416,954 Ending Fund Balance 3,694,947 2,304,864 1,292, ,151

54 Four Year Budget Outlook ASB Fund Beginning Fund Balance $ 260,093 $ 356,730 $ 340,270 $ 308,008 Revenue $ 712,058 $ 683,506 $ 723,166 $ 728,020 Expenditures $ 615,421 $ 699,966 $ 755,428 $ 753,500 Ending Fund Balance $ 356,730 $ 340,270 $ 308,008 $ 282,528

55 Four Year Budget Outlook Capital Projects Fund Beginning Fund Balance $ 26,500,000 $ 754,000 $ 3,328,000 $ 1,346,760 Revenue $ 12,354,000 $ 4,554,000 $ 2,054,000 $ 2,054,000 Expenditures $ 38,100,000 $ 1,980,000 $ 4,035,240 $ 3,364,600 Ending Fund Balance $ 754,000 $ 3,328,000 $ 1,346,760 $ 36,160

56 Four Year Budget Outlook Debt Service Fund Beginning Fund Balance $ 1,632,100 $ 1,862,800 $ 2,063,711 $ 2,102,147 Revenue $ 6,541,100 $ 6,893,543 $ 7,047,606 $ 7,165,800 Expenditures $ 6,310,400 $ 6,692,632 $ 7,009,170 $ 7,283,356 Ending Fund Balance $ 1,862,800 $ 2,063,711 $ 2,102,147 $ 1,984,591

57 Four Year Budget Outlook Transportation Vehicle Fund Beginning Fund Balance $ 500,010 $ 3,010 $ 3,010 $ 3,010 Revenue $ 123,000 $ 123,000 $ 123,000 $ 123,000 Expenditures $ 620,000 $ 123,000 $ 123,000 $ 123,000 Ending Fund Balance $ 3,010 $ 3,010 $ 3,010 $ 3,010

58 Questions?