BUDGET SUMMARY FISCAL YEAR 2009-2010 Working Together, Achieving Excellence
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MISSION The mission of the Sultan School District is to work together to achieve excellence in our school community.
Dear Sultan Community Member, This executive Budget Summary was created to translate a complex and lengthy lengthy document into a usable community tool for you. The Budget Summary Summary compares the budgeted expenditures and revenues between the 2008-2008-2009 school year and the 2009-2010 school year. We have prepared this Budget Summary to communicate the district s financial financial priorities and plans. Through the various tables, charts, and graphs, we graphs, we want to provide you with an understanding of the district s resources resources and our spending plan. Throughout the budgetary process, in the Sultan School District, student achievement is our number one priority. As a result, the 2008-2009 budget continues to reflect the district s goals. Our hope is that this will be a user-friendly document that will provide you with with information about the district s finances. If you have any questions, please please contact me at 360 793-9801 x 110. Sincerely, Dan Chaplik Superintendent jww/dc
TABLE OF CONTENTS Board of Directors... 1 What is a Budget?... 2 Budget Development Process..... 3 Budget Parameter...... 4 Staffing and Enrollment..... 5 Property Tax... 6-7 Financial Resources...... 8 Financial Usage...... 9 General Fund Revenue..... 11 Program Definition..... 12-13 General Fund Expenditures..... 14-16 Fund Accounting.... 17 Budget Summary... 18 General Fund Budget Summary..... 19 Associated Student Body Budget Summary..... 20 Debt Service Fund Budget Summary..... 21 Capital Project Fund Budget Summary... 22 Transportation Vehicle Fund Budget Summary.... 23 Board Meeting Schedule... 24
SULTAN SCHOOL DISTRICT NO.311 514 4 TH Street Sultan, Washington 98294-9474 BOARD OF DIRECTORS Craig Roesler, President Patty Fountain, Vice President Tracy Cotterill, Director Russ Sumpter, Legislative Representative Steve Fox, Director Dan Chaplik Superintendent and Secretary to the Board Director of Educational Services David Paratore Director of Fiscal Services Layne Anderson 1
WHAT IS A BUDGET? Annual financial plan for the school district reflecting district and community goals. Establishes the maximum expenditure amount for each fund. Must be formally adopted by the Board of Directors. Provides a means of measuring and guiding performance by comparing planned expenditures and staffing levels against actual expenditures and staffing levels. Covers the fiscal year, from September 1st to August 31st of the following calendar year. Must be balanced by having the beginning fund balance plus revenue equaling or exceeding expenditures in each fund. Consists of five different funds: 1) General Fund used for all instructional and regular operations of the school district. 2) Associated Student Body (ASB) Fund used for all student activity accounts such as clubs, student government and various athletic programs. 3) Debt Service Fund used for principal and interest payments on outstanding bonds. 4) Capital Projects Fund utilized for the purchase of land, the construction and equipping of new facilities, the installation of major systems and major facility renovation. 5) Transportation Vehicle Fund used exclusively for the purchase of school buses. 2
BUDGET DEVELOPMENT PROCESS The budget development process begins in October and concludes with Board approval of the budget in August. The budget development process is an effort to create an expenditure plan that provides both direct services to students and necessary support services in order to create the best learning environment possible. The Sultan School District develops the budget through a collaborative process, which is reviewed by the Board. After initial revenue and expenditures are determined based upon budget assumptions, the superintendent presents the budget to the Board of Directors for approval. The following questions form the basis upon which decisions regarding budget revisions are made: Budget Development Key Questions: Is direct instruction to students provided? Is student achievement enhanced? Are a large number of students affected? Is an appropriate level of maintenance of facilities provided? Will an appropriate level of service be maintained at funded levels? Most of the large state programs (Basic Education, Special Education, Learning Assistance, Vocational, and Bilingual) are paid through apportionment formulas. These apportionment formulas allocate funds to districts on a per-student basis. Funding for programs increases or decreases based upon changes in enrollment. The most important revenue assumption in the budget development process, therefore, is the anticipated student enrollment. Determination of these budget allocation parameters determines the level of staffing for the district. Currently, eighty-three percent of the district s budget is allocated for staffing. The remaining seventeen percent of the budget is expended for supplies, materials and purchased services. 3
Budget Parameters BUDGET PARAMETERS As a result of input from across the district and subsequent deliberation, budget parameters have been refined and will be looked over carefully in reaching decisions. Formulating budget recommendations is difficult, and many issues must be taken into consideration. These parameters aid in our discussion and thinking during deliberation of the General Fund budget. Budgeting for other funds, such as Transportation Vehicle Fund, Capital Projects Fund (bonds and capital levies), Debt Service Fund, and Associated Student Body Fund is handled separately. These parameters are listed in random order. However, the first parameter is given its position in order to give additional emphasis to this primary district mission. Student learning is our mission. The integrity of instructional programs must be safeguarded to promote the success of all students in achieving the district s instructional goals. When compromise is necessary, attention will be given to providing the greatest good for the greatest number of students while considering how reductions impact specific programs and individual student needs. We will comply with laws, regulations, contracts and agreements. Student and staff health and safety will be safeguarded. Students should be provided with appropriate instructional materials and equipment, including technology. Such investments should be supported with adequate resources to keep materials current, equipment reliable, and staff trained in the best uses of these tools. The maintenance of instructional services, facility services, administrative services, staff support services including staff development, and capital assets is necessary to support instructional programs. Optional programs and activities for both staff and students that are not self-supporting should be considered for reduction first, safeguarding basic programs that are required by the state or district. Budget reductions should be focused, to the extent possible, in particular areas rather than across the board. If the total number of employees is reduced, Reduction In Force (RIF) will be recommended only after reasonable placement alternatives have been exhausted. In general, one-time resources will not be obligated to support on-going expenditures. Projects and activities without ongoing funding should have a formal sunset date. The ending unreserved fund balance is targeted between two and five percent of expenditures. This resource will be used only as a last resort. If the ending unreserved fund balance is decreased below three percent, then these resources will be obligated only for one-time expenditures with a commitment for future restoration as new funds become available. The budget will support the implementation of school board decisions and goals. 4
STAFF COUNTS AND STUDENT ENROLLMENT 2007-2008 2008-2009 2009-2010 A. Staff FTE Counts Actual Actual Budgeted General Fund FTE Certificated Employees 136.35 131.39 121.14 General Fund FTE Classified Employees 82.87 74.45 80.44 B. Student FTE Enrollment Counts 2007-2008 2008-2009 2009-2010 Actual Actual Budgeted Kindergarten 65.39 75.47 80.40 Grade 1 130.67 150.91 152.90 Grade 2 174.67 148.93 157.10 Grade 3 159.56 180.87 146.00 Grade 4 157.67 173.88 187.00 Grade 5 175.20 157.96 163.20 Grade 6 160.56 190.89 158.40 Grade 7 175.69 174.82 191.60 Grade 8 161.98 182.94 163.60 Grade 9 193.84 154.67 178.80 Grade 10 183.84 199.39 151.30 Grade 11 (Excluding Running Start) 160.22 149.89 178.70 Grade 12 (Excluding Running Start 147.67 155.90 148.00 Subtotal 2046.96 2096.52 2057.40 Running Start 9.00 19.33 19.50 Total K-12 2055.82 2115.85 2076.90 2200.00 2150.00 ENROLLMENT 2100.00 2050.00 2000.00 1950.00 1900.00 1850.00 1800.00 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 *2009 enrollment is projected 1998-2009 enrollment is actual 5
Listed below are the property tax rates per thousand dollars of assessed value for calendar years 2005, 2006, 2007, 2008 and 2009. Year 2005 2006 2007 2008 2009 PROPERTY TAXES M&O Levy Bonds Total 3.08 1.45 4.53 3.05 1.28 4.33 1.07 2.59 3.66 2.29.90 3.19 2.40 0.13 2.56 For calendar year 2005, the owner of a home valued at $100,000 paid $453 in property taxes; in calendar year 2006, the owner of a home valued at $100,000 paid $433; and in year 2007, the owner of a home valued at $100,000 paid $366 in property taxes that went directly to the Sultan School District. For calendar year 2009, the property tax on a $100,000 house is expected to be $256. Property tax statements also list a State Property Tax. This money is collected by the state and distributed to school districts throughout the State of Washington according to student enrollment. The intent of the State Property Tax is to equalize funding for all school districts in the State of Washington, regardless of the economic advantage of one area over another. 6
PROPERTY TAXES (Continued) The school fiscal year begins in September and ends in August. Property taxes are levied and collected on a calendar year basis (January - December). The 2009-2010 school-year budget reflects 3.46 million in levy funds. Local property taxes represent approximately 17% of the total revenue available to the district for the 2009-2010 school year. The school board has final authority in determining how levied dollars will be expended. However, in creating a levy expenditure plan, the Board follows a process that involves budget decisions after multiple meetings of the Board of Directors, Director of Fiscal Services and the Superintendent. The following summary illustrates how levy dollars are allocated in the 2009-2010 school year. For every levy dollar received, funds will be distributed in the following manner: Supporting Basic Education 73 cents of each levy dollar supports Basic Education Textbooks, supplies, and instructional materials Staffing Maintenance of school buildings and grounds Covering increased energy costs Technology 2 cents of each levy dollar supports technology Supporting our current technology system Upgrading hardware and software Staffing Staff training Extra-Curricular Programs 3 cents of each levy dollar supports Student Activities including: Athletics Clubs Music Programs Special Education 15 cents of each levy dollar supports Special Education programs for students with disabilities. Transportation 8 cents of each levy dollar supports Transportation of students to and from school and school activities. 2009-2010 Property Taxes Allocation $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $0.73 Direct Classroom $0.02 $0.03 Technology Extra- Curricular $0.15 Special Education $0.08 Transportation 7
WHERE DOES THE MONEY COME FROM? 2009-2010 Budget Revenue by Source Federal Funds 12% Othe r Sc hool Distric t and Agency Funds 2% State Special Purpose Funds 12% State Approtionment 54% Local Levy 18% Fees 2% State Apportionment The largest portion (54.00%) of the Sultan School District s General Fund revenue comes directly from the state in the form of apportionment. The amount received is determined by the number of students attending our schools and a series of formula factors including base salaries, employee benefits, and non-labor allocations set by the legislature. Local Levy 18.00% of budgeted revenue comes from the local Maintenance and Operations Levy. The levy amount is capped by the legislature and must be approved by Sultan School District voters at a special election. State Special Purpose Funds The third-largest source of funds (12.00%) comes from the state as categorical funding for programs such as Special Education, Pupil Transportation, Transitional Bilingual Education, Learning Assistance Program, Highly Capable Program, and Student Achievement. This revenue is received for specific programs and is not available for other purposes. Federal Funds Federal categorical funds comprise 12.00% of district revenue. These monies fund supplemental special education programs, as well as Head Start, No Child Left Behind programs, and Nutrition Service programs. Fees 2.00% of revenue is generated through local non-tax sources associated with feebased programs such as school lunches, local donations, rental of district facilities, and investment interest earnings. Other School District and Agency Funds 2.0% of budgeted revenue comes from other districts for participation in joint programs and grants from non-state agencies. 8
WHERE DOES THE MONEY GO? Building Support 18% 2009-2010 Expenditures by Activitiy Central Administration 6% Classroom Support 12% Direct Classroom 64% Direct Classroom 64.00% of the district budget is spent in classroom activities. This includes expenditures for teachers, principals, educational assistants, teaching supplies, materials, textbooks, equipment, extracurricular programs, staff development, and technology support. Classroom Support 12.00% of the district budget is spent on librarians, counselors, nurses, psychologists, speech and language pathologists, occupational/physical therapists, and student safety. Building Support 18.0% of the district budget is spent on pupil transportation, food services, maintenance, grounds, custodial, utilities, insurance, security, information technology, printing, and warehousing. Central Administration 6.0% of the district budget is used for the school board, superintendent s office, business office, personnel department, and for the supervision of the following activities: instruction, nutrition services, pupil transportation, and maintenance. 9
GENERAL FUND REVENUE Comparison of General Fund Budgeted Revenue 10
GENERAL FUND REVENUE Comparison of General Fund Budgeted Revenue 11
PROGRAM DEFINITION General Fund expenditures are categorized in several ways in the budget. These categories are defined by the state through an accounting system to maintain consistency among school districts in Washington State. Each school district prepares its expenditure budget on a program basis. Program budgeting allows the district to examine the costs of instructional programs on an individual basis. The major General Fund programs are defined below: Basic Education This program covers the direct costs of basic education as defined in RCW 28A.58.750. Program expenditures include the salary and benefit costs of basic education teachers, including extracurricular activities. It also includes direct costs for instruction, such as textbooks, supplies and materials, classroom equipment, etc. Additionally, it includes the support activities to teaching, such as library, counseling, student safety, curriculum support, and principal s office expenditures. Special Education This program reflects the direct costs of educating special needs children. It includes the costs of teachers and other certificated support staff (psychologists, speech therapists, etc.), classroom support staff (instructional assistants, secretaries, etc.), supplies and materials, and classroom equipment. Career and Life Skills Education (Vocational Education) This is a state funded program providing career and life skills to high school students. This program includes business, technology/manufacturing, and family/consumer sciences. Compensatory Education School Improvement Program This program provides assistance in improving the quality of education. It includes specific programs such as Improving Teacher Quality, Educational Technology, Safe & Drug-Free Schools, and Innovative Programs. Learning Assistance Program (LAP) This program provides additional learning assistance to students who are deficient in basic skills in reading, mathematics, and language arts. 12
PROGRAM DEFINITION (Continued) Transitional Bilingual (ESL) This program provides assistance to students who speak English as a second language and whose English language skills are significantly deficient or absent. Student Achievement This program funds class size reduction, extended learning opportunities, professional development, early assistance for pre-kindergarten students, and building improvement related to class size reduction. Indian Education Indian Education provides assistance to develop and carry out a designated program to meet the unique educational and culturally-related academic needs of American Indian pupils. Other Instructional Programs Traffic Safety Traffic safety education develops the skills to students to safely operate a motor vehicle, the knowledge of motor vehicle laws, and an understanding of the causes and consequences of traffic accidents. Highly Capable (Gifted) This program provides an appropriate educational environment, which encourages selfdirected learning, leadership skills, a spirit of inquiry, scholarship, and a love for learning. Support Services District-Wide Support District-Wide Support includes expenditures for the superintendent s office, school board, human resources, business services, maintenance, grounds, utilities, insurance, and information technology. Nutrition Services This program provides breakfast and lunch services to the students. Pupil Transportation This program provides the operation and maintenance of pupil transportation. 13
GENERAL FUND EXPENDITURES Comparison of General Fund Expenditures By Program 14
GENERAL FUND EXPENDITURES Comparison of General Fund Expenditures By Activity 15
GENERAL FUND EXPENDITURES Comparison of General Fund Expenditures By Object Object 2007-2008 2008-2009 Difference Budget Budget Debit Transfers $ 99,000.00 $ 99,000.00 $ 0.00 Credit Transfers (99,000.00) (99,000.00) 0.00 Certificated Salaries 8,876,658.00 8,805,875.00 (70,783.00) Classified Salaries 3,587,297.00 3,478,562.00 (108,735.00) Employee Benefits and Payroll Taxes 3,843,186.00 4,084,888.00 241,702.00 Supplies, Instructional Resources, etc. 1,416,060.00 1,431,392.00 15,332.00 Contractual Services 1,529,970.00 2,394,744.00 864,774.00 Travel 7,550.00 13,200.00 5,650.00 Capital Outlay 19,000.00 11,000.00 (8,000.00) Total Expenditures By Object $ 19,279,721.00 $ 20,219,661.00 $ 939,940.00 Contractual Services 13% Supplies, Instructional Resources, etc. 7% Employee Benefits and Payroll Taxes 19% 2009-2010 Budget Expenditures by Object Capital Outlay 0% Travel 0% Classified Salaries 17% Debit Transfers 1% Credit Transfers 1% Certificated Salaries 42% 16
FUND ACCOUNTING The Fund Accounting System is organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The district has five different funds as described below: General Fund The General Fund accounts for all cash and other resources except those required to be accounted for in other funds. This includes the ordinary operations of the school district including all programs of instruction for students, maintenance and facilities, administration of the district, nutrition services and pupil transportation. Associated Student Body (ASB) Fund In Washington school districts, the only fund designated as a special revenue fund is the ASB fund. This fund is financed, in part, by the establishment and collection of fees from students and non-students as a condition of their attendance at any optional, noncredit extracurricular event of the district as well as fund raising. Debt Service Fund Washington State law provides that a fund be established in the county treasury for the redemption of outstanding bonds and payment of interest. The County Treasurer also handles disbursements for the district. The Debt Service Fund makes the payment of principal and interest for outstanding debts from taxes collected annually. Capital Projects Fund The Capital Projects Fund includes all monies and resources set aside for the construction of buildings, certain purchases of new equipment, and making capital improvement to buildings. It also pays for the replacement of roofs, carpets, and services systems. This fund usually includes the proceeds of the sale of bonds, state matching funds, special levies, and investment earnings of the Capital Projects Fund. Transportation Vehicle Fund The Transportation Vehicle Fund is provided to account for the state reimbursement to the school district for depreciation of approved pupil transportation equipment and for the purchase and major repair of such equipment. 17
SULTAN SCHOOL DISTRICT #311 Budget Summary - Fiscal Year 2009-2010 18
GENERAL FUND 2009-2010 Budget Summary 2009-2010 Expenditure Budget Classroom Support 18% Central Administration 6% Building Support 5% 19 Direct Classroom 71%
ASSOCIATED STUDENT BODY FUND 2009-2010 Budget Summary 20
DEBT SERVICE FUND 2009-2010 Budget Summary 21
CAPITAL PROJECTS FUND 2009-2010 Budget Summary 22
TRANSPORTATION VEHICLE FUND 2009-2010 Budget Summary 23
SCHOOL BOARD MEETING SCHEDULE 24