2017/2018 Budget Overview Board Presentation August 8, 2017 - - PowerPoint PPT Presentation

2017/2018 Budget Overview

Board Presentation – August 8, 2017 Presented by: Melissa deVita, Deputy Superintendent Marie Telecky, Director Finance & Budget Ryon Fields, Budget Analyst Brian Flynn, Budget/Grants Analyst Jenny Hall, Budget Analyst Janet Suppes, Budget Analyst The Bellevue School District Mission:  To provide all students with an exemplary college preparatory education so they can succeed in college, career and life. For additional information regarding this presentation contact: Melissa deVita, Deputy Superintendent, Finance & Operations Email: devitam@bsd405.org Phone: (425)456-4025 1

Agenda

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• Key Points
• Superintendents Summary
• Looking Forward
• Next Steps
• Questions/More Information
• Backup Materials

2017/2018 State Funding

• 2.3% COLA increase
• 2% point increase in employer pension contribution
• $40/month per state funded FTE increase in benefit funding
• Career & Technical Education class size reduction, increase

materials and supplies allocation, reduced indirect charges

• Increase middle and high school instructional hours for

Transitional Bilingual Program

• Changed funding model to staff at 17 students per FTE at K-3

with no compliance requirement but changing back to compliance model in 2018/19

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General Fund Revenue Sources

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$109,887 $67,497

$ in Millions

$72,536 $119,180 $104,345 $65,051

Note: Other Revenue is Transfers from other funds & revenues from surplus sales, other government entities and other school districts.

34.6% 33.7% 32.4% 31.2% 55.8% 55.2% 57.2% 59.2% 4.6% 5.5% 5.5% 4.6% 5.0% 5.7% 4.9% 5.0%

$- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2015/2016 Actual 2015/2016 Budget 2016/2017 Budget 2017/2018 Budget

General Fund Revenue

Other Federal State Local

$248.6 $258.7 $273.9 $298.4

5.4% 4.1% 60.3% 30.2% 31.2% 59.2% 4.6% 5.0% 32.4% 57.2% 58.3% 32.9% 5.5% 4.9% 4.1% 4.6%

General Fund Expenditures

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$’s in Millions

$- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2015/2016 Budget 2016/2017 Budget 2017/2018 Budget

District-wide Support Transportation Food Services Day Care/Community Suppt Categorical Grants Career & Tech Education Special Education Basic Education

$258.6 $276.5 $301.5

57.6% 57.6% 58.1% 12.8% 10.8% 11.6% 7.0% 6.1% 5.8% 12.8% 12.6% 12.4%

Superintendent’s Summary

• State law requires the following disclosure during the budget

hearing process:

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2017/18 Budget Amount Total MSOC Allocation $25,103,589 Total MSOC Budget $31,692,544 Net Difference ($6,490,516)

Funding Available for New Investments

2017/2018 Budgeted Revenue $298,410,000 Less 2016/2017 Budgeted Expenses ($276,456,000) Net New Funds Available $21,954,000 Spending Increases: Employee Contractual Commitments, COLA, Employer Pension Contribution & other employee compensation based benefits (not including categorical increases below) $7,760,000 Career & Technical Education (including employee costs) $1,300,000 Increase costs due to enrollment increases $4,310,000 Mandated expense increases (election costs, utilities, substitutes, adjustments, etc.) $1,460,000 Special Education Services (Additional staff, purchased services, and additional employee costs)* $6,924,000 Instructional Initiatives, Curriculum Materials $1,586,000 Other (misc. adjustments, grants, etc.) $1,738,000 Sub-total Committed Spending Increases $25,078,000 Net Impact ($3,124,000)

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* Change in budgeting methods for Safety Net reimbursable expenses. Offsetting revenue has also been budgeted.

2017/18 Budget Decisions

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Amount Instructional Initiatives $1,586,000 Superintendent Discretionary Funds $100,000 Instructional Leadership Discretionary Funds $44,000 Building Leadership – Asst. Principals

Puesta del Sol, Enatai, Interlake HS & International School

$142,000 Curriculum Science Kits $1,300,000 ELL & Spanish Dual Supervisor $170,000 Public Records Officer $105,000 Technical Support Staff (4.5 FTE) $350,000 CTE Program Enhancements $500,000 Amount Special Education $6,924,000 SWIFT Pilot $380,000 SPED Supervisor $60,000 Additional Employee Costs $2,466,964 Additional Staff (5.0 Cert FTE & 6.2 Classified FTE) $810,000

• Purchased. Services*

$3,207,036

Total Planned Spend Down of Reserves = $3,124,000

* Change in budgeting method for safety net reimbursable

• expenses. $2.3 M off setting revenue also budgeted.

Capital Projects

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Total Available Funds: $34,675 EOY Fund Balance: $1,300 Total 2017/18 Available Funds: $278,000 Anticipated EOY Fund Balance: $133,700 including the sale of $100 million in bonds in the spring 2018.

Capital & Tech Funds Bond Funds

Salaries $8,750 Application Lic. $3,450 Field Upgrades $6,500 Facility Modernizations & Renovations $2,150 Portables $1,000 Instructional Tech $2,865 Tech Infrastructure $1,400 Classroom Tech $2,300 One-to-One Project $3,800 Miscellaneous $1,157 Total $33,372

Phase II Projects Tillicum MS $37,200 Others $7,386 Sub-total Phase II $44,586 Phase III Wilburton Elem. $39,480 Stevenson Elem. $40,608 Highland MS $11,925 Clyde Hill Elem. $8,167 Other $4,640 Sub-total Phase III $104,820

$000’s

Staff Salary & Benefits $961 Capacity $30,000 Bond Services $400 Other Misc. $1,000

Total $181,767

Superintendent’s Summary

• Anticipate enrollment increase to 20,355 students. The district

average headcount for the 2016/2017 school year was 20,001

• students. Last year’s fall forecast was 20,111 and actual October 1

enrollment was 19,999. We were 0.6% short on enrollment last year which impacted the overall budget by $1.5 million.

• Over the past three years, both revenue and expenditures have been

growing at an average of 9%. In each of the last three years, we have anticipated spending down a portion of the reserves. However, year end actuals thus far have resulted in our general fund reserves remaining relatively flat.

• Staffing model for elementary schools has been modified to include

all students in general education classrooms in support of inclusion for all students.

• $3.2 million of the total special education increase of $6.9 million is a

change in budgeting practices for costs to be reimbursed by safety net near the end of the fiscal year. Revenue was also increased to $2.3 million to partially offset this change.

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Superintendent’s Summary

• District-wide support costs including district administration has

dropped from 13% to 12.4% of total general fund expenditures while expenditures in general education and special education have remained flat or increased as a percent of the total expenditures.

• The District’s reserves were expected to drop to $18.8 million at

the end of 2016/2017. Based on the most recent forecasts, we anticipate starting 2017/2018 with reserves of $22.2 million, $3.4 million more than originally budgeted. Again this year, we have budgeted an anticipated $3.1 million decline in general fund reserves to $19.1 at the end of the fiscal year.

• At the end of the 2017/2018 fiscal year, the District’s reserves

are expected to be $19.1 million which is 6.3% of General Fund expenditures.

• Both the Revenue and Expenditures include $7 million in

capacity for grants and unanticipated enrollment.

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Superintendent’s Summary

• Capital and Technology funds will be spent on elementary school

fields, facility modernization and renovations, application licenses, technology infrastructure and classroom technology and

• curriculum. The budgeted end of year balance for 2016/2017 was

$2.1 million but the anticipated actual end of year budget is closer to $6.8 million. This year the budgeted end of year balance is $1.3

• million. However, every project and area has some contingency

built into it.

• Construction work continues on Tillicum MS and will begin on

Wilburton Elementary and Stevenson Elementary schools. Preparation and demolition work will begin on Clyde Hill Elementary and Highland Middle School.

• The District is planning to sell $100 million in bonds in spring 2018.

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Looking Forward to 2018/2019

• Uncertainty –
• Significant amount of time will be spent unpacking, analyzing and

working with our employees to understand the impact of HB2242

• n:
• Financial future
• Employee contracts
• Program offerings
• Preparing for a levy election in February 2018 asking voters for:
• Enrichment Levy (replaces former Maintenance and Operations Levy)
• Capital and Technology Levy
• Possibly a Transportation Vehicle Enhancement Levy (formerly

Transportation Vehicle Levy)

Next Steps

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• A draft of the budget is available on the District

website.

• Notice of Public Hearings will be placed in newspapers
• Community feedback may be received via email,

telephone, or at Board meeting on August 29, 2017

• All budgets will be presented to the Board for final

adoption at the August 29,2017 board meeting.

Questions / More Information

15 For additional information regarding this presentation contact: The Bellevue School District Mission:  To provide all students with an exemplary college preparatory education so they can succeed in college, career and life. Name – Melissa deVita Email: devitam@bsd405.org Phone: (425)456-4025

Backup Materials

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Enrollment

15,504 15,821 16,333 16,501 16,619 17,038 17,447 17,917 18,244 18,560 18,545 19,164 19,638 20,001 20,355

• 5,000

10,000 15,000 20,000 25,000 17 Headcount

Source: 1251H State Report: Annual Average Headcount