FOLLOW UP FROM FIRST BUDGET COMMITTEE MEETING (MAY 1)

Budget Committee Follow Up / Q&A Distributed May 8, 2017 FOLLOW UP / QUESTIONS AND ANSWERS Compiled after the May 1, 2017 public meeting of the BUDGET REVIEW COMMITTEE Corvallis School District 509J FOLLOW UP FROM FIRST BUDGET COMMITTEE MEETING (MAY 1) STRATEGIC INVESTMENTS More information was requested about the strategic investments highlighted in the superintendent s budget message, specifically the budgeted figures associated with each item and where those funds can be found in the budget document. See Attachment 1 Strategic Investments. The first page is a table that outlines each strategic investment, with specific funding and FTE levels. The remaining pages include the budget detail of each strategic investment (by fund, function, object) including where these funds are accounted for in the budget document. STATE SCHOOL FUND ASSUMPTION More information was requested regarding the rationale behind the district s assumption that the state school fund allocation in 201719 would be $8.016 billion. The district s proposed budget assumes a 201719 state school fund allocation of $8.016 billion, with 49% distributed in 201718 and 51% distributed in 201819. This assumption is based on the 201719 Governor s Recommended Budget, which assumes some new revenue in 201719, mostly by raising taxes on tobacco, liquor, hospitals, insurers and some corporation owners incomes. On January 19, 2017, the CoChairs of the Ways and Means Committee released the CoChairs Existing Resources Budget Framework, 201719, which proposes cuts compared to the Governor s budget in all areas of the state budget, including the State School Fund, and assumes no new taxes or other revenues over the next two years. The document, which they characterize as a discussion document and a starting point for budget preparation, calls for a $7.80 billion State School Fund budget for 201719. The district chose to budget resources assuming a State School Fund allocation of $8.016 billion because we feel that the Governor s budget is the most realistic scenario. We believe that the Co Chairs released the budget framework and proceeding documents to help spur discussions on various legislative action, including the revenue (tax) package currently under consideration. After the budget committee meeting I surveyed all districts with 5,000 or more students (31 districts total) on the State School Fund allocation they were assuming for their proposed budgets. See Attachment 2 State School Fund Assumptions. Of the 28 districts that responded, 64% are using an allocation of $8.01 billion or higher, while 36% are using an allocation of $7.8 billion. Most of the districts that are assuming an allocation of $7.8 billion are not anticipating significant budget reductions, or are using reserves to offset the difference between a funding level of $7.8 billion and $8.1 billion. Page 1

Budget Committee Follow Up / Q&A Distributed May 8, 2017 Assuming an SSF allocation of $7.8 billion, the district s projected resources in 201718 would decrease by approximately $1 million. Assuming an SSF allocation of $8.1 billion, the district s projected resources in 201718 would increase by approximately $400,000. EQUITY More information was requested about budgeted amounts related to the district s focus on equity, including the amount budgeted for supplies and materials in lieu of charging fees to students. See Attachment 3 Equity. This table outlines each pillar of the district's equity transformation plan along with specific actions associated with each pillar, including the amount and FTE budgeted. COMPUTER SOFTWARE More information was requested about the amount spent and budgeted for computer software related to instructional materials including adopted curriculums. See Attachment 4 Instructional Materials (Computer Software). This report includes actual and budgeted expenditures for instructional materials, including line item detail for computer software. DISTRICT THEATERS More information was requested about the cost neutral status of the district theaters. Theater business activities (transactions within Designated Revenue Fund 298) have averaged about $50,000 net income over the last two completed fiscal years (201415 and 201516). This excludes approximately $120,000 in salary and benefits costs associated with the 1.00 FTE Theater Manager position and additional custodial costs, as those expenses are funded by the General Fund. QUESTIONS AND ANSWERS FROM BUDGET COMMITTEE MEMBERS Q1: Tom Sauret 5/1/2017 (email): You probably already noted this but the text and table dollar amounts for employee salaries and for PERS costs do not match (see pages 22 and 23 in Section B). A1: Olivia Meyers Buch 5/3/7 (email): Thanks for the heads up on the tables on pages 22/23, I ll make sure those are revised in the adopted budget document. The information on page 22 is correct; please see corrected table for page 23 below. 201516 Actual 201617 Budget 201718 Total Salaries $32,433,363 $34,920,419 $36,718,304 Change from Prior Year 9% 8% 5% Employer Contributions 2,208,109 7% 2,347,126 7% 3,558,872 10% Employee Contributions 1,803,351 6% 2,087,013 6% 2,178,324 6% UAL Contributions 2,128,436 7% 2,434,845 7% 1,996,817 5.5% Page 2

Budget Committee Follow Up / Q&A Distributed May 8, 2017 Total Contributions $6,139,896 19% $6,868,984 20% $7,734,013 21.5% Change from Prior Year 17% 12% 13% Q2: Tom Sauret 5/1/2017 (email): What is the source of funding for the Innovation Fund mentioned on page 7 in Section A. Is it separately identifiable in the budget? How much? A2: Olivia Meyers Buch 5/3/17 (email): The source of funding for the Innovation Fund mentioned on page 7 is the General Fund. The funding is split between functions 1111/1121/1131 with object 410, so this is not separately identifiable in the budget. The budgeted amounts are $15,000 in 100/1111/410, $15,000 in 100/1121/410, and $20,000 in 100/1131/410. See Attachment 1 Strategic Investments. Q3: Tom Sauret 5/1/2017 (email): Appendix F, p 133. Have we cut $500k from HS activities and athletics in this budget, or is there a redirecting of other funds to cover that loss from levy money? A3: Olivia Meyers Buch 5/3/7 (email): There is no proposed reduction in local option levy funds allocated for high school athletics and activities. The local option levy spending plan (Appendix F) reflects $500,000 in spending on high school athletics and activities with 0.00 FTE. Nearly all of these funds are allocated for extra duty coaching contracts and associated payroll costs, which is not considered FTE. Q4: Tom Sauret 5/1/2017 (email): Are we cutting SPED teachers to cover the cost of more SPED EAs? Section B. Pg. 22. A4: Olivia Meyers Buch 5/13/16 (email): Special education department staffing changes include licensed FTE (teachers and specialists) decreasing from 39.20 to 37.56 and classified FTE (aides) increasing from 59.11 to 62.75. Page 3

SUPERINTENDENT'S BUDGET MESSAGE STRATEGIC INVESTMENTS SUMMARY ATTACHMENT 1 STRATEGIC INVESTMENT OBJECTIVE CORE VALUES STRATEGY REAL WORLD LEARNING Real World Community Relationships Implement strategies outlined in the High School Graduation and College and Career Readiness Act of 2016 (Measure 98) Establish or expand career and technical education programs INVESTMENT $ 775,328 2.00 FTE Develop internship program $ 124,672 1.00 FTE ENGLISH LANGUAGE SUPPORT AT ALL SCHOOLS Ensure that all students gain skills to be academically proficient in English and have equitable access to core content Inclusive Relationships Community Offer English language development programs at all schools $ 46,266 0.50 FTE Support teachers in planning and delivering highquality $ 64,706 0.88 FTE instruction for all students ELEMENTARY ART EDUCATION INNOVATION FUND Provide equitable educational opportunities at all elementary schools Provide resources for innovative leaders Inclusive Real World Inclusive Expand art programs in elementary schools through use of local option levy funds $ 124,802 $ 50,000 1.55 FTE 0.00 FTE to explore and implement strategies that Real World support real world, experiential learning that is meaningful and applied. Adaptability Relationships Community

SUPERINTENDENT'S BUDGET MESSAGE STRATEGIC INVESTMENTS BUDGET DETAIL 201718 201718 FTE Budget Document Page # ATTACHMENT 1 REAL WORLD LEARNING 100 General Fund 1131 High School Programs 111 Licensed Salaries $ 99,632 2.00 121 SubstitutesLicensed 25,000 210 Public Employees Retirement System 24,093 220 Social Security Administration 9,535 230 Other Required Payroll Costs 561 240 Contractual Employee Benefits 28,584 320 Property Services 200,000 410 Consumable Supplies and Materials 42,065 420 Textbooks 50,000 540 Depreciable Equipment 200,000 1131 High School Programs Total $ 679,470 2.00 2120 Guidance Services 111 Licensed Salaries $ 67,186 1.00 210 Public Employees Retirement System 12,752 220 Social Security Administration 5,140 230 Other Required Payroll Costs 302 240 Contractual Employee Benefits 14,292 410 Consumable Supplies and Materials 25,000 2120 Guidance Services Total $ 124,672 1.00 2240 Instructional Staff Development 121 SubstitutesLicensed $ 10,000 130 Additional Salary 45,000 210 Public Employees Retirement System 11,402 220 Social Security Administration 4,208 230 Other Required Payroll Costs 248 340 Travel 25,000 2240 Instructional Staff Development Total $ 95,858 Pages 5961 Page 63 Page 67 Requirements Total $ 900,000 3.00

SUPERINTENDENT'S BUDGET MESSAGE STRATEGIC INVESTMENTS BUDGET DETAIL 201718 201718 FTE Budget Document Page # ATTACHMENT 1 ENGLISH LANGUAGE SUPPORT 100 General Fund 1291 English Second Language Programs 111 Licensed Salaries $ 30,783 0.50 210 Public Employees Retirement System 5,843 220 Social Security Administration 2,355 230 Other Required Payroll Costs 139 240 Contractual Employee Benefits 7,146 1291 English Second Language Programs Total $ 46,266 0.50 2210 Improvement of Instruction Services 111 Licensed Salaries $ 40,104 0.88 210 Public Employees Retirement System 7,612 220 Social Security Administration 3,068 230 Other Required Payroll Costs 1,416 240 Contractual Employee Benefits 12,506 2210 Improvement of Instruction Services Total $ 64,706 0.88 Page 65 Page 62 Requirements Total $ 110,972 1.38

SUPERINTENDENT'S BUDGET MESSAGE STRATEGIC INVESTMENTS BUDGET DETAIL 201718 201718 FTE Budget Document Page # ATTACHMENT 1 ELEMENTARY ART EDUCATION 100 General Fund 1111 Elementary, K5 111 Licensed Salaries $ 83,009 1.55 210 Public Employees Retirement System 16,492 220 Social Security Administration 6,350 230 Other Required Payroll Costs 374 240 Contractual Employee Benefits 18,577 1111 Elementary, K5 Total $ 124,802 1.55 Pages 5758 Requirements Total $ 124,802 1.55

SUPERINTENDENT'S BUDGET MESSAGE STRATEGIC INVESTMENTS BUDGET DETAIL 201718 201718 FTE Budget Document Page # ATTACHMENT 1 INNOVATION FUND 100 General Fund 1111 Elementary, K5 410 Consumable Supplies and Materials $ 15,000 1111 Elementary, K5 Total $ 15,000 1121 Middle/Junior High Programs 410 Consumable Supplies and Materials $ 15,000 1121 Middle/Junior High Programs Total $ 15,000 1131 High School Programs 410 Consumable Supplies and Materials $ 20,000 1131 High School Programs Total $ 20,000 Page 58 Page 58 Page 59 Requirements Total $ 50,000

STATE SCHOOL FUND ASSUMPTIONS DISTRICTS >5,000 ADMr ATTACHMENT 2 District 201516 Annual ADMr SSF Funding Level Assumed for Budget Notes Portland SD 1J 47,423.85 $8.1 billion SalemKeizer SD 24J 40,591.91 $8.1 billion Beaverton SD 48J 40,330.80 $8.1 billion Hillsboro SD 1J 20,578.80 $8.15 billion BendLaPine SD 1 17,426.26 $7.8 billion no cuts North Clackamas SD 12 17,196.80 $8.1 billion Eugene SD 4J 17,027.85 $7.8 billion no cuts Medford SD 549C 13,664.66 $7.8 billion minimal cuts; less 7 FTE through attrition TigardTualatin SD 23J 12,641.12 $7.8 billion increased contingency to account for resources up to $8.1B GreshamBarlow SD 10J 11,992.75 $8.1 billion Reynolds SD 7 11,446.38 $8.1 billion Springfield SD 19 10,793.14 $7.8 billion David Douglas SD 40 10,696.52 $8.1 billion Greater Albany SD 8J 9,532.57 $8.02 billion West LinnWilsonville SD 3J 9,520.55 $7.8 billion no cuts Oregon City SD 62 8,093.47 $8.01 billion Redmond SD 2J 7,244.18 $7.8 billion no cuts (using reserves) Lake Oswego SD 7J 7,054.16 $7.8 billion no cuts (will use reserves) Corvallis SD 509J 6,631.94 $8.02 billion McMinnville SD 40 6,629.95 $8.015 billion Klamath County SD 6,358.00 $8.1 billion Centennial SD 28J 6,219.72 $8.1 billion Forest Grove SD 15 6,093.63 $8.02 billion approx. $1 million in cuts Grants Pass SD 7 5,979.74 TBD first budget meeting is June 6, 2017 Douglas County SD 4 5,819.17 $7.8 billion cuts Woodburn SD 103 5,687.34 $7.8 billion no cuts (using reserves) Bethel SD 52 5,562.84 TBD first budget meeting is May 8, 2017 Hermiston SD 8 5,416.29 $8.0 billion 10% EFB; designed budget to use up to $500,000 in onetime PERS reserves, will only access if needed Lincoln County SD 5,315.65 $8.012 billion Sherwood SD 88J 5,292.40 TBD first budget meeting is May 22, 2017 Newberg SD 29J 5,085.30 TBD first budget meeting is May 16, 2017

EQUITY TRANSFORMATION PLAN BUDGET ACTIONS ATTACHMENT 3 PILLAR STUDENTS AT THE CENTER EQUITY LEADERSHIP DEVELOPMENT CULTURALLY RELEVANT LEARNING AND TEACHING FAMILY AND COMMUNITY ENGAGEMENT AND EMPOWERMENT OBJECTIVE Align strategic priorities, resources, and staffing allocations with the commitment of students at the center to achieve equitable student outcomes Leverage and support the leadership talents of our staff and the assets of our system to achieve our mission and priorities Implement culturally revelant teaching practices to achieve our mission of an inclusive and rigorous learning environment for all students 201718 201718 ACTION PROPOSED PROPOSED Continue utilizing Advancement Via Individual Determination $ 393,717 4.01 (AVID) program to close the achievement gap by preparing students in grades 612 for college readiness Continue expansion of alternative pathways to include one $ 169,521 2.50 additional option (Urban Farm) at Harding Center Continue elimination of class fees and supply fees charged to $ 105,000 students Provide equitable access to art instruction for all elementary $ 124,802 1.55 students Provide necessary equipment to create more interactive, future $ 10,200 ready classrooms in all schools Continue providing equity training (Beyond Diversity) for staff $ 35,500 Continue work with schoolbased Equity Teams through $ 21,500 professional development with principals Develop district leaders into PEG Affiliates in order to cofacilitate future equity (BD) trainings for staff $ 9,000 Engage staff in professional development (Teaching with a Cultural $ 31,500 Eye) to understand the cultural identities of students Continue supporting diversity in our staff with "grow your own" $ 110,900 1.00 bilingual teacher pathway program and mentoring/coaching dedicated for bilingual teachers Provide culturally responsive curriculum for emerging multilingual $ 60,000 students Continue providing translation and interpretation services to all schools $ 118,879 1.50 Engage staff in professional development (Teaching with a Cultural $ 31,500 Eye) to better understand the cultural identities of students Engage families and community as Maintain placement of Community Health Navigators at all DLI partners to inform our work schools through partnership with Benton County toward achieveing our mission and Continue engagement in professional development with District core beliefs. Equity Leadership Team Advisory (DELTA) $ 111,516 $ 20,000

ATTACHMENT 4 INSTRUCTIONAL MATERIALS BUDGET DETAIL 201617 201415 201516 Adopted 201718 Actual Actual (as revised) 100 General Fund 1111 Elementary, K5 121 SubstitutesLicensed $ 2,230 $ $ $ 130 Additional Salary 10,644 12,213 210 Public Employees Retirement System 2,117 2,006 220 Social Security Administration 978 934 230 Other Required Payroll Costs 74 73 350 Communication 5,290 647 410 Consumable Supplies and Materials 22,434 84,620 420 Textbooks 41,256 107,661 100,000 20,000 470 Computer Software 8,160 3,319 1111 Elementary, K5 Total $ 93,183 $ 211,474 $ 100,000 $ 20,000 1121 Middle/Junior High Programs 130 Additional Salary $ $ 22 $ $ 210 Public Employees Retirement System 3 220 Social Security Administration 2 230 Other Required Payroll Costs 0 410 Consumable Supplies and Materials 7,812 1,673 420 Textbooks 24,863 100,000 10,000 470 Computer Software 840 40,000 1121 Middle/Junior High Programs Total $ 7,812 $ 27,403 $ 100,000 $ 50,000 1131 High School Programs 340 Travel $ $ 108 $ $ 410 Consumable Supplies and Materials (1,079) 2,179 420 Textbooks 560 200,000 242,791 470 Computer Software 3,035 2,616 1131 High School Programs Total $ 2,516 $ 4,903 $ 200,000 $ 242,791 1220 Restrictive Programs for Students with Disabilities 470 Computer Software $ 250 $ $ $ 1220 Restrictive Programs for Students with Disabilities Total $ 250 $ $ $ 1250 Less Restrictive Programs for Students with Disabilities 410 Consumable Supplies and Materials $ 240 $ 115 $ $ 470 Computer Software 250 1250 Less Restrictive Programs for Students with Disabilities Total $ 490 $ 115 $ $ 1291 English Language Learner Programs 410 Consumable Supplies and Materials $ $ 1,205 $ $ 420 Textbooks 4,247 50,000 470 Computer Software 250 1291 English Language Learner Programs Total $ 250 $ 5,452 $ $ 50,000 2210 Improvement of Instruction Services 340 Travel $ $ 23 $ $ 2210 Improvement of Instruction Services Total $ $ 23 $ $ 2240 Instructional Staff Development 121 SubstitutesLicensed $ $ $ $ 20,000 130 Additional Salary 1,306 210 Public Employees Retirement System 232 4,146 220 Social Security Administration 100 1,530

ATTACHMENT 4 INSTRUCTIONAL MATERIALS BUDGET DETAIL 201617 201415 201516 Adopted 201718 Actual Actual (as revised) 230 Other Required Payroll Costs 7 90 310 Instructional, Professional and Technical Services 5,000 2240 Instructional Staff Development Total $ $ 1,645 $ $ 30,766 Requirements Total $ 104,500 $ 251,015 $ 400,000 $ 393,557 470 Computer Software Total $ 11,945 $ 6,775 $ $ 40,000