2016-2017 Proposed Budget 20 6-2017 Pr p d B d t Steve Boynton, - - PowerPoint PPT Presentation

Li coln

n y chool

20 6-2017 Pr p

d B d t

Lincoln County Schools 2016-2017 Proposed Budget

Steve Boynton, Superintendent

CSD B. dge ~ Process

LCSD Budget Process

 LCSD Budget process in an on-going activity for the District 

The business office works in three fiscal years concurrently

• Prior year 2014-15

 Fiscal year close out, audit prep and final audit report is concluded in December  Final funding reconciliation is not complete until May 2016

• Current year

 Regular business operations of the District  Funding updates from ODE  General Fund cash flow

• Upcoming year 2016-17

 Budget development typically begins in the fall  Superintendent makes decisions about building and department allocations, with support from the LST  State law requires the upcoming budget be adopted no later than June 30th

LCSD Budget Process

 June

• Board announced Budget Committee vacancies in Zones 2 & 3

 October

• Board presented with Budget Process Calendar

 November

• Board approved date for the first Budget Committee meeting

CSD Budge · Process

 January

• Board appointed Budget Committee members

 Terry Buggenhagen to Zone 2  Thomas Hurst to Zone 3

• Business Services worked on projecting revenues and

expenditures, as well as enrollment for 2016-17

 February

• Learning Support Team met throughout the month to discuss:

 School and department needs  Staffing allocations and impact of suggested changes  Sustainability of 2016-17 budget decisions into the 2017-2019 biennium

LCSD Budget Process

LCSD 8

LCSD Budget Process

 March

• Business Services finalized 2016-17 budget staffing sheets for

schools and departments

• State School Fund estimate for 2016-17 released, with less than

previously suggested allocation to LCSD

• Superintendent made final decisions about allocations to schools

and departments

• LST met with Principals to distribute and review 2016-17 Budget

Staffing Sheets

• Principals assigned Licensed and Classified staffing, discretionary

line items and Co-Curricular assignments on the 2016-17 Budget Staffing Sheets

• LST met with Principals regionally to review 2016-17 Budget

Staffing Sheets

• Human Resources began recruitment activities

 April

• Finalized 2016-17 Budget Staffing Sheets from schools and central

departments were submitted on April 1st

• Human Resources

 Reviewed staffing sheets  Continued with recruitment  Worked with transfer requests

• Business Services worked on Proposed Budget document

LCSD Budget Process

LCSD 8

 May

• Budget Committee meeting notice reported in the News Times and

posted on the District’s website

• Business Services finalized Proposed Budget document and

delivered to the Budget Committee

• Budget Committee deliberates and approves the budget

 June

• Public Budget Hearing notice with Financial Summary will be

published in the News Guard

• Board conducts Public Hearing on 2016-17Approved Budget
• Board Adopts 2016-17 Budget at regular board meeting

(required prior to June 30, 2016)

LCSD Budget Process

• 2015-16 Adopted Budget

2015-16 Adopted Budget

 2015-16 budget was Approved by the Budget Committee with

the following changes to the Proposed Budget

• Increased General Fund $500,000 for possible additional State

School Funding

• Reallocated $800,000 from General Fund Unappropriated Ending

Fund Balance to expenditures

• These additional resources were not realized in 2015-16
• Entries to balance Transfers In/Out between General and Special

Revenue Funds

 2015-16 Approved Budget was Adopted by the Board of

Directors on June 9, 2015

 Actual Beginning Fund Balance of $4,796,040 was $430,178

higher than budgeted

_ 2015-16 SSF Revenue Changes 2015-16 SSF Revenue Changes

2014-15 State School Fund Reconciliation

 LCSD teacher experience rate updated

 Increased slightly, .10 from (2.55) to (2.45)  Previously dropped from .13 to (2.71) in 2012-13

 Year-end ADMw updated – increased 45.67 from 5-9-15

estimate

 LCSD is no longer in Stop-Loss  Transportation Grant reconciled to actual expenditures  Funding per ADMw increased $86

 Carve-outs for the biennium are reconciled from projected to actual  $55,499,081 more available for formula distribution

 Many of these factors are outside the District’s control and are

unknown prior to final reconciliation details released by the state.

 Total SSF updates equal $732,199 additional revenue

20 I 5.. 6 SSF Revenue Changes Contd

2015-16 SSF Revenue Changes, Cont’d

 Property taxes, State Timber Tax, County School Fund and

Federal Forest Fees are all part of Local Revenue included in the SSF formula.

 State resources make up the difference between Local

Revenue collected and the District’s SSF allocation.

 The more Local Revenue collected, the less funding comes

from State resources.

 LCSD was aware of the additional $1.6 M Local Revenue received and that the reduction would be reconciled and due to the State in May 2016. As a result, we reduced SSF revenue recorded in 2014-15.  Monthly financial reports to the Board track local revenue collections as compared to the SSF estimate. The possible reconciling adjustment is included in the monthly reports.  Reconciled Local Revenue resulted in an additional $49,304

 Total adjustments to 2014-15 SSF revenue $781,503

_ 20 5

.. 16 SSF Revenue Changes Contd

2015-16 SSF Revenue Changes, Cont’d

 2015-16 State School Fund estimate updated

• Funding per ADMw increased $23
• Slight decrease of ADMw (6.80)

 Adjustment to Students on IEP above 11%

• Adjusted estimated Local Revenue

 Updates generated $76,628 additional revenue  High Cost Disability estimate $271,347

• State School Funding includes $35M carve out to reimburse school

districts for special education student costs in excess of $30,000 per student.

• LCSD estimated 2015-16 expenditures to be $389,769
• This funding will be reconciled in May 2017 once actual expenditures

are known state-wide.

 Total 2015-16 adjusted SSF Revenue $347,975

District Accompl's ments

District Accomplishments

We are excited about our accomplishments:

• Increased student achievement
• Improved resources and tools for accessing and

analyzing student achievement data

• Increased opportunities for PE and music at all

elementary schools

• Increased programs and electives for our secondary

schools

• ·s ~r·ct Acco

District Accomplishments

We are excited about our accomplishments:

• Improved wages for ALL district staff that meet or exceed state

average

• Increased cash reserves to allow for
• Negative changes to SSF revenue without derailing a school year
• Sustaining increased programs and staff into the future
• Possible flat or decreased state funding in the next biennium

20 1 16-17 Bu 1dg,

et Development

Ass

• ns

General

l Fund I R, evenue

2016-17 Budget Development Assumptions General Fund Revenue

 SSF Revenue:

• State 2015-17 biennial K-12 education budget of $7.376 billion
• 2016-17 K-12 allocation is $3,747,130,346, which is 50.8% of the

biennial budget

• Proposed budget developed using 3-7-16 estimate

 District revenue assumptions:

• $7,004 general purpose formula rate per ADMw
• Projected 6,967 ADMw
• $51,037,016 State School Fund formula revenue

 SSF revenue includes Local Revenue:  Property Taxes  County School Fund, State School Fund, Common School Fund  State Managed Timber

2

mient Assu1mptions Gen

Fund Re· venue

2016-17 Budget Development Assumptions General Fund Revenue

 Other local/miscellaneous revenue budgeted (not included

in SSF formula) is $220,750 more than 2015-16 budget

• Interest income

 Planned larger ending fund balance  Slightly increased interest rates

• Transportation services requested by Charter Schools
• Increase in other miscellaneous resources

 Miscellaneous revenue budgeted for 2016-17 includes

resources from LBL ESD Tier II funds for the following:

• Community Resource Liaison
• Student Information Systems Coordinator contract
• Early Childhood Education Coordinator

20 I 6- 7 Budget Devel

lopme t Assumptio:

ns G1 eneral Fu1 nd I Reve ue

2016-17 Budget Development Assumptions General Fund Revenue

 Beginning Fund Balance is budgeted at $6,600,000

• $408,630 is for building carryover balances
• $1,180,820 is used to increase staff and programs for students
• $750,000 is offset with Contingency
• $4,260,550 is added to UEFB to be held in reserve for the

2017-19 biennium

 Ending Fund Balance is projected to be less than $2 million dollars at the end of 2018-19

 It is not anticipated that the actual July 1, 2016 BFB will be

substantially higher than budgeted

2016-11

7 I B

lo1 pment Assumptio:

ns General Fund Expend·t

2016-17 Budget Development Assumptions General Fund Expenditures

School allocations are based on December 2015 enrollment data promoted one grade for 2016-17, weighted with ELL only Licensed Allocations

• Allocations made with emphasis on meeting the Board’s goal of

smaller primary (K-2) class sizes

• Increases in ELL licensed staff where populations have increased
• Average Teacher Cost (salary and benefits) $92,684. Currently

$89,500

Classified Allocations

• School Secretary, Media Specialist, Health/Records Assistant and

Information/Records Clerks at the high schools all budgeted at 8 hours per day

• Additions of Bilingual Tutors where populations have increased
• Current positions of other Classified staff maintained

20

• 7

g

n As

p 0

G n

p

2016-17 Budget Development Assumptions

All Funds

Current 2015-16 Proposed 2016-17 Change Licensed 258.77 269.56 10.79 Classified 181.67 203.15 21.48 Admin 25.00 30.00 5.00 Conf/Exempt 8.80 7.80 (1.00) Total All Funds 474.24 510.51 36.27

General Fund Only

Current 2015-16 Proposed 2016-17 Change Licensed 242.58 255.51 12.93 Classified 145.56 152.26 6.70 Admin 25.00 29.25 4.25 Conf/Exempt 5.88 4.88 (1.00) Total General Fund 419.02 441.90 22.88

General Fund Expenditures

2016- 1

17 !

Budget Develop1 me, nt Assu1 m1 ptions

General Fund I Expenditur

2016-17 Budget Development Assumptions General Fund Expenditures

Discretionary Allocations

• K-6 $129.95
• 7-12 $149.50
• Rates were increased 15% from current $113 and $130 respectively

Co-Curricular

• Non-athletic co-curricular allocations
• K-6 $10.50/ADM
• 7-12 $36.75/ADM
• 5% increase from current allocations

2016-17 Budget Development Assumptions General Fund Expenditures

Co-Curricular continued

• High School athletic coaching salaries budgeted at $382,155

 Slight increase over current year  Budget will cover head coaches for all current high school athletic programs and 32 assistant coaches  Pay to play fees, fundraising and Booster Club support will still be necessary to cover unallocated expenses  Pay to play fees will remain at $125 with $500 family cap

• Middle School football and volleyball programs are planned at

Taft and Newport

 No District funds are allocated for middle school programs  Pay to play fees will remain at $100

20 I 6- 7 Budget Devel

lopme t Assumptio:

ns

General Fundl Expendit 1ures

 Principals maintained the latitude to adjust spending between

Classified, Discretionary and non-athletic Co-curricular

 Licensed allocations are restricted  See the Proposed Budget Document, section 1, page 8 for a

listing of all Building Allocations

2016-17 Budget Development Assumptions General Fund Expenditures

2016-11

7 I

B

get Devei lo1 pment Assumptio:

ns

G1 eneral Fu1 ndl Expendit

 These assumptions were used in developing allocations to schools

and central departments

 Continual effort to allocate as many resources as possible to direct

student learning is an ongoing goal of the Board, Superintendent and staff

2016-17 Budget Development Assumptions General Fund Expenditures

2

elop:

ment

Assumptions General I Fund Expe1

ndit

2016-17 Budget Development Assumptions General Fund Expenditures

 Licensed staff

• In January, the Board ratified a 3-yr contract
• LCSD licensed salaries are now above the state average
• For 2016-17 the Agreement includes step, plus 2% COLA

 Classified staff

• The Board ratified a new classification system for position descriptions,

as well as bringing position wages to state averages

• A few positions will see slightly larger increases in 2016-17 as the

second tier to bringing these positions up to state averages that were most out of synch with similar positions state-wide

• OSEA agreement includes 2.5% step increase

 Confidential/Exempt staff

• Current Confidential agreement includes step increase

2

nt

Assumptions General I Fund Expe1

ndit

2016-17 Budget Development Assumptions General Fund Expenditures

 Administrators

• Central office Operations Admin position was eliminated in 2015-16.

Responsibilities were shifted to several administrators, include two

• Principals. The added responsibilities have over-burdened these

principals making it difficult for them to focus the necessary attention on their buildings. As a result, the Special Programs Administrator position has been added for 2016-17.

• Taft Elementary gained an Assistant Principal in 2015-16 to assist

with behavior interventions and a larger school population. This position has proven invaluable for school climate, teacher and student support.

• Special Ed Administrator and WHS Assistant Principal positions

were provided in 2015-16 by ESD resources. Those positions are now shown in the general fund.

2

elop:

ment

Assumptions General I Fund Expe1

ndit

2016-17 Budget Development Assumptions General Fund Expenditures

• Administrators, cont’d.
• Toledo Elementary has a Licensed Behavior Specialist in 2015-16 which

will be exchanged for an Assistant Principal. This change is in response to the success achieved at Taft Elementary during this school year.

• In 2015-16 the District hired a Technology Director. In prior years the

position was an exempt/supervisory Technology Manager.

• Building administrative salaries were adjusted to the state average for

like positions in same-sized districts for 2015-16; a 2% COLA increase is planned for 2016-17.

• Central administrative salaries below the state average were brought into

alignment in 2015-16. There will be no increases in 2016-17 for these positions.

2

elop: mient Assu

General I Fund Expe1

ndit

2016-17 Budget Development Assumptions General Fund Expenditures

District Funded Administration Positions

• See the Proposed Budget Document, section 1, page 10

for a listing of all district funded administration positions

20 I 6- 1

17 Bud, get Developme:

nt Assumptions

General Fund I Expenditur

2016-17 Budget Development Assumptions General Fund Expenditures

Health Insurance



The health benefit cap remains at $1,290 per FTE.



For the 2015-16 plan year, the District established a self-funded group Health Reimbursement Account (HRA) to augment OEBB’s Plan G, which is a high deductible plan with limited coverages. The HRA will reimburse employees’ medical expenses equal to OEBB Plan C ($500 deductible and increased coverages) with no out-of-pocket premium paid by the employee.



Employees currently enrolled in Plan H (a high deductible plan) with an individual HSA will be able to maintain this election. All other employees will be enrolled in Plan G with the Group HRA.



The District continues to offer waiver incentives for those employees who are already covered by a health plan.



The District continues to offer its self-funded Dental/Vision plan to all

• employees. With this plan, the District has been able to maintain the same

premium since 2011.

20 I 6- 1

17 !

Budget Developme, nt Assum1 ptions

General Fund I Expenditur,

es

2016-17 Budget Development Assumptions General Fund Expenditures

PERS Debt Service Expenditures



Expenditures against all payroll remain at 21.25%



This continues to generate debt service revenue slightly above current year debt service payments



The district continues to build reserves for significant future increases in debt service payments that outgrow salary increases



Current debt service fund balance and future payments are detailed in the Debt Service budgets found in Section 11

2016- 7 Budget Devel

lopme t Assumptio1

ns

General Fund Expend·t

2016-17 Budget Development Assumptions General Fund Expenditures

Adjustments made to Central Support budget allocations:



Distance, Alternative Learning & College Readiness – reduced $50,000

• verall
• District plans to continue a full-time math/science teacher for this program
• Distance & Alternative Learning programs at Toledo and Waldport continue to

be combined

• New online software purchased has expanded instructional opportunities and

minimized costs from out of state online college tuition

• The savings realized has been reallocated for increases in dual credit

courses, additional support for counseling and secondary ed college preparation opportunities



Early Retiree Medical Benefits reduced $64,586

• Retirees are selecting lower premium plans
• Many with full benefits are reaching the age of 65

2016- 1

17 Bud,

get Developme:

nt

Assum1 ptions General Fund I Expenditur

2016-17 Budget Development Assumptions General Fund Expenditures

 Curriculum & Instruction

• $10,000 for increased support of TAG programs
• $55,000 for STAR software, which was previously paid for with special

revenue funds

 Emergency Management/Safety increased $7,500

• Additional radios purchased for each school
• Expenses associated with the Crisis Team, which responds to schools

when student or staff loss has occurred

 Special Education

• $20,000 for ADA required hearing services
• $48,000 for an Occupational Therapy contract

2016- 1

17 !

Budget Develop1 me, nt Assu1 m1 ptions

General Fund I Expenditur

2016-17 Budget Development Assumptions General Fund Expenditures

Contracted Services



Staff worked closely with our contracting partners to increase wages for improved recruitment and retention



Mid Columbia transportation and Sodexo Custodial and Food Services continue to be excellent partners with LCSD

 Custodial services includes a 3% COLA which provides for:

• Cost of wage realignment

 Substitute custodial rate will be $11.21  Full-time starting wage $11.50  All Lead Custodians will receive a 3% increase

• Supply increases
• One additional custodial FTE

2

pe ditures

2016-17 Budget Development Assumptions General Fund Expenditures

Contracted Services, cont’d



In 2015-16 the District had budgeted for several additional routes for the potential impact of the realignment of Lincoln City and Newport schools. Not all those potential routes were necessary. As a result, the overall transportation services budget has been reduced by $21,580.



Transportation services also includes a 3% COLA to provide

• Increase in minimum wage, state sick time initiative and salary alignment
• Current drivers will see an average $.89 cent/hour increase
• Base driver wage will be $13.11 per hour
• One additional bus route
• One additional bus rider position

20 I

5- 1

16 !

Budget Develop1 me,

nt Assu1

m1 ptions

General Fund I Expenditur

2015-16 Budget Development Assumptions General Fund Expenditures

Property/Liability Insurance

• Increased 8% for anticipated increases in premiums and increases in

property values

Utility budgets were reduced 7% over-all

• Savings have been realized in electricity and heating fuel

 Improvements previously made to HVAC controls with GO Bond revenue  More tepid winters

• Anticipated savings from the review of phone services continue to be

realized

2016- 1

17 Bud,

get Developme: nt Assum1 ptions General Fund -- Lookin, g ahead ....

2016-17 Budget Development Assumptions General Fund -- Looking ahead….

• With PERS and health care costs rising state-wide, it is

anticipated that there will be a major impact to funding for all state agencies in the 2017-19 biennium.

• As the cost to operate state agencies increases, we

anticipate that K-12 education’s share of the state budget will remain flat or see a decrease.

• This Proposed Budget was developed anticipating that

current reserves will be needed to sustain programs and staff through the 2017-19 biennium.

20 I 6- I

I 7 Proposed Bud,

get Suggested Amendments

Necessary to balance Transfers In/Out:

 Adjustments to Revenue

• Special Revenue Funds -- Transfer In $5.00

 Adjustments to Expenditures

• Special Revenue Funds – Transfer Out $5.00

2016-17 Proposed Budget Suggested Amendments

20 6- 7 P opo _ ed B dget

2016-17 Proposed Budget

Thank you!