2018/2019 Budget Overview Board Presentation July 24, 2018 - - PowerPoint PPT Presentation

2018/2019 Budget Overview

Board Presentation – July 24, 2018 Presented by: Melissa deVita, Deputy Superintendent Marie Telecky, Director Finance & Budget Ryon Fields, Budget Analyst Brian Flynn, Budget/Grants Analyst Jenny Hall, 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

• Budget Process
• Executive Summary
• General Fund
• Capital and Technology and Building Funds
• Local Levies
• Next Steps
• Additional Materials

2

• Addl. School Budgets

High Needs Funds Title I Funds Grants & Other Local Funds

Budget Process Today

3

School Staffing & Budget Formulas Initiatives & Improvement Plans Program Placement Enrollment Forecast

• Dept. &

School Budget Requests

Base School Budget

Cert. Staffing Classified Staffing Building Budget

Program Staffing

Other Budgets

Other Dept. Budgets Capital & Tech ASB, Debt Service & TVF

4-Year Perspective

13,000 13,500 14,000 14,500 15,000 15,500 16,000 16,500 17,000 17,500 18,000

$- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Fed & Other Local Taxes State $/Pupil

4

Total General Fund Revenue ($ Millions) Budget Revenue/Pupil - $’s $354.7 $349.9 $359.2 $368.7 $298.4

Executive Summary

• Enrollment is continuing to grow but at a more modest rate. Fall enrollment is

forecasted to be 20,441 students. Last year’s fall forecast was 20,355 students and actual October 1 enrollment was 20,290. The district’s average annual headcount for the 2017/2018 school year was 20,271.

• The McCleary solution put in place in the 2017 legislative session and further

modified in the 2018 legislative session is resulting in a revenue increase of almost 19% in one year. However, in subsequent years revenue will remain relatively flat while expenses are expected to continue to increase.

• Historically revenue has grown an average of 9% year over year. Over the next

three years, this average is expected to drop to 1.3%. If there are no changes in the current funding models, then we will have to reduce expenditures including a potential reduction in staffing and/or reduce general fund reserves to maintain financial stability.

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Executive Summary

• What worked before will not work in the future – even the “Everybody Comes

Back” budget will not be sustainable in the long run.

• Historically new initiatives were funded by an increase in funding, expanding

time or adding people – tighter resources will become our norm especially as health care, pension costs and other programs impact state finances.

• We need to change the way we do business by:
• Including cost effectiveness as part of the equation when evaluating programs and

initiatives and their impact on student achievement;

• Being nimble and shifting resources regularly by reducing and refining programs and

initiatives;

• Establishing a systemic approach for evaluating programs and initiatives to drive

financial decision-making;

• Ensuring financial planning is a multi-year, year around process aligned to the

strategic direction of the organization;

• Increasing accountability to demonstrate the impact of initiatives and programs.

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Strategic Budget Process

• Focus decisions on strategic goals, not departments
• Include all funds in process to maximize alignment and transparency of restricted

funds

• Integrating stakeholder perspectives into decision making especially around trade-offs

that will be necessary

• Incorporate processes and tools that look at the Academic Return-on-Investments (A-

ROI) including the cost and quality of services

• Investment and reallocation decisions need to be strategically coherent and

implementable

• Actively monitor and respond to investment results

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Source: Education Resource Strategies (ERS) Funding: District Budget Development

Budget Process Tomorrow

From this: To this:

BEGINS…

• Mid-year
• With last year’s budget
• As a process initiated by finance
• Year-around process
• As part of the district’s ongoing strategic plan
• By having decision makers align on strategic priorities

INCLUDES…

• Finance team as leaders of the process
• Central departments as silos
• Board members and other stakeholders only

at the time of approval/authorization

• Finance team facilitates cross-department

collaboration

• Key stakeholders asked for input, feedback, and

approval USES DATA AND TOOLS THAT…

• Compare current and previous years’

expenditures

• Separatebudgets by fund types and revenue

sources

• Aim for specific budget target
• Enable multi-year cost and ROI comparisons
• Include all funds that allow districts to make decisions

around strategy, not individual programs

• Allow investments/cuts to be prioritized so they can be

mapped to range of revenue levels ENDS WITH…

• Incremental changes from previous year that

are not informed by key stakeholders outside

• f central office
• Investments that may not be coherently

aligned to strategy or schools’ ability to implement

• The ability to monitor cost (track expenses vs.

budget)

• Informed stakeholders
• Coherent budget decisions that are implementable and

aligned to district strategy

• The ability to monitor cost, track implementation and

measure ROI

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Source: Education Resource Strategies (ERS) Funding: District Budget Development

Stakeholder Input for 2018/2019

Recommendations Funded Elementary Study Team

• Allocate additional differentiated classified support

based on school need for student supervision



• A full-time counselor at each elementary school



• Required paid building-based days before school starts



Secondary High Needs Team

• School site open into evening with classified supervision
• n campus



• Increase hours for health room assistant



• Increase hours for testing room assistant



• Differentiated classified support staffing model



• Update certificated staffing model



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2018/2019 Investments

Direct Impact to Schools and Students Additional Teaching Positions Additional Classified Staffing at School Buildings – General School Assts., Office support, etc. (71,000 hours) $2,836,200 General Education – 21 FTE $2,310,000 Special Education – 5 FTE $550,000 Additional Material, Supplies and Operating Cost (MSOC) budgets at school buildings $766,800 English Language Learners – 5 FTE $550,000 Full-time Counselors in all Elem. Schools $935,000 Assistant Principals at Elem. Schools $366,000 Mental Health School Support Team $340,000 Wilburton Start-up Costs $985,000 10 Indirect Impact to Schools and Students Additional Salary & Benefit costs for current employees – all employee groups $42,060,000 Increase in building operating costs – custodians, utilities, fuel, etc. $1,072,000 Central Office Supports $1,400,800

Revenue v. Expenditures ($ Millions)

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$150.0 $200.0 $250.0 $300.0 $350.0 $400.0 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Revenue Expenditures

Net: ($3.1) Net: ($5.6) Net: ($5.2) Net: ($2.9) Net: $2.7

Capital Projects

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Total Available Funds: $45,272 EOY Fund Balance: $613 Total 2018/2019 Available Funds: $303,507 Anticipated EOY Fund Balance: $156,006 including the sale of $100 million in bonds in the spring 2019.

Capital & Tech Funds Bond Funds

Salaries $15,280 Application Lic. $2,928 Field Upgrades $8,400 Facility Modernizations & Renovations $3,100 Portables $1,000 Instructional Tech $2,901 Tech Infrastructure $1,550 Classroom Tech $1,800 One-to-One $3,800 Miscellaneous $3,900 Total $44,659

Phase II Projects Sammamish HS $2,400 Tillicum MS $4,400 Others $80 Sub-total Phase II $6,880 Phase III Wilburton Elem. $3,684 Stevenson Elem. $3,564 Highland MS $45,227 Clyde Hill Elem. $45,893 Other $8,749 Sub-total Phase III $109,117

$000’s

Staff Salary & Benefits $1,004 Capacity $30,000 Bond Services $400 Other Misc. $100

Total $147,501

Local Levies

$83,578 $79,366 $90,471 $95,558 $88,609 $66,500 $51,778 $52,913 $54,800 $56,653 $26,000 $37,000 $40,000 $42,000 $44,000 $8,000 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $- $50,000 $100,000 $150,000 $200,000 $250,000 2018 2019 2020 2021 2022 Debt Serv. Ed & Ops Cap & Tech School Bus Current Exp. Tax Rate

• Elect. Exp. Tax Rate

13 $ 000’s

Expected Tax Rate in Voter Pamphlet Current Expected Local Property Tax Rates

$/$1,000 Assessed Value

Next Steps

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Short-Term:

• Respond to inquiries regarding 2018/2019 budget
• Advertise budget hearing
• Hold budget hearing and ask for approval on August 28

Preparing for 2019/2020:

• Revise financial planning process to support alignment to strategic plan
• Establish financial stakeholder working group and stakeholder input processes
• Work with instructional team to develop systemic program/initiative evaluation

methodology and process

ADDITIONAL MATERIALS

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Current Budget Cycle Overview

January February March April Levy Passes Complete 2018/2019 Teacher Salary Schedule State funding model available for new apportionment system

• Forecast enrollment &

distribute to principals

• Finalize enrollment forecast
• Complete School & Central

Office staffing analysis

• Review certificated staffing

models and update

• Analyze classroom availability

at schools

• Request department & school

budget proposals

• Finalize cert staffing with

principals

• Initial 2018/2019 revenue

forecast

• Identify opportunities for

staff/resource re-alignment

• Review and update building

budget formulas – MSOC, classified staffing, activity hours

• Finalize program placement –

special needs & early learning

• Collect department & school

budget proposals

• Complete multi-year revenue

forecast

• Complete initial high-level

budget with anticipated cost increases:

• Utilities
• Labor contracts
• Benefit & retirement

contributions

• Wilburton start up costs
• Update fund balance

projections

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Current Budget Cycle Overview

May June July August Draft Strategic Plan Completed

• Finalize fund balance

projections

• Release school classified,

MSOC, and activity hours

• Determine initial strategic

investments for 2018/2019 and develop multi-year resource plan

• Update tech & capital budget
• Finalize strategic investments

for 2018/2019 and multi-year resource plan

• ASB budget presentation to

school board

• Finalize budget for board

presentation – all funds

• Initial presentation to the

Board

• Complete multi-year financial

plan based on strategic plan

• Public Hearings & Board

Approval

• Submit multi-year budget to

the state

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4-Year Enrollment Projection (FTE)

Grade 2017/2018 Actual Oct. 1 2018/2019 2019/2020 2020/2021 2021/2022 K 1,385.24 1,417 1,439 1,462 1,485 1 1,454.00 1,475 1,512 1,534 1,557 2 1,524.00 1,491 1,531 1,568 1,591 3 1,621.94 1,548 1,528 1,567 1,604 4 1,516.00 1,617 1,550 1,529 1,569 5 1,588.00 1,518 1,637 1,569 1,549 6 1,592.41 1,612 1,560 1,681 1,612 7 1,543.17 1,633 1,671 1,620 1,740 8 1,589.85 1,560 1,641 1,679 1,628 9 1,661.72 1,696 1,675 1,756 1,794 10 1,673.23 1,657 1,693 1,974 1,753 11 1,483.15 1,455 1,471 1,505 1,486 12 1,413.37 1,415 1,441 1,437 1,471 Total FTE 20,046.08 20,094 20,349 20,581 20,839 18

4-Year General Fund Budget - Revenue

$000’s 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Revenues Local Taxes Local Non-Tax $64,706 $25,295 $58,120 $27,411 $52,091 $27,959 $53,906 $28,518 $55,775 $29,089 State – General State – Special $143,813 $36,128 $186,826 $47,269 $185,915 $48,215 $191,131 $49,179 $196,518 $50,162 Federal Other $12,273 $16,194 $12,315 $22,738 $12,562 $23,193 $12,813 $23,656 $13,069 $24,130 Total Revenue $298,410 $354,680 $349,934 $359,203 $368,743 19

4-Year General Fund Budget - Expenditures

$000’s 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Expenditures Basic Education $174,150 $210,367 $212,471 $217,782 $222,138 Special Ed Instruction $38,105 $43,683 $44,120 $45,223 $46,128 Career & Technical $6,375 $8,510 $5,895 $8,809 $8,986 Categorical Grants $17,680 $19,385 $19,579 $20,068 $20,470 Early Lrng. Community Serv. $12,303 $13,456 $13,591 $13,931 $14,209 Transportation $8,499 $9,448 Food Services $6,982 $6,474 District-wide Support $37,439 $40,630 $57,117* $58,545* $59,716* Total Expenditures $301,533 $351,953 $355,473 $364,359 $371,647 Budgeted Revenue

• ver/(under) Expenditures

($3,123) $2,726 ($5,539) ($5,156) ($2,904) 20

*Includes Transportation and Food Service Expenditures