Budget Overview-Process and Discussion July 21, 2020 Enrollment - - PowerPoint PPT Presentation

Budget Overview-Process and Discussion

July 21, 2020

Enrollment

• Estimate 20-21 Enrollment by FTE (full-time equivalency)
• Assign basic education students to schools by grade
• Estimate ALE (alternative learning education)
• Estimate Running Start FTE
• Estimate Open Doors/Dropout Reengagement FTE (EdCap)
• Estimate the number of students in special programs – special

education, career and technical education, English learners, highly capable, etc.

Certificated Instructional Staff (CIS)

• Calculate certificated staff needed:
• Classroom teachers
• Librarians
• Music/PE
• Counselors/Psychologists
• Special Education teachers, Nurses, LAP (learning assistance program), Title I

(federal remediation program), Career and Technical Education, Highly Capable, English Learners, etc. Some staff allocations are district-determined based on enrollment and some staff allocations are determined by a collective bargaining agreement The state does not fund the entire cost of a CIS position

Certificated Administrative Staff (CAS)

• Principals are generally assigned by student FTE at a school
• Other Certificated Administrative Staff include department directors

and assistant superintendents

• The state does not fund the entire cost of a CAS position

Classified Staff

• Some are enrollment driven – office staff, school support staff such as

paraeducators

• Other classified staffing is driven by facility needs – custodians,

grounds, warehouse, maintenance

• Food service and transportation are determined by program needs
• Other classified staff are determined by functional needs – payroll,

accounts payable, office support for CTE, etc.

• The state does not fund the entire cost of a classified position and the

number of positions funded is significantly less than needed

Wage Changes

• Many employees are moved along the salary schedule based on an

additional year of experience

• Wages increases are applied in the budget if known by early June
• If bargaining is not completed by early June, the budget team makes

their best assumption

• If the legislature has not determined IPD (implicit price deflator), the

budget team makes their best assumption

• Who is retiring or resigning? Will they be replaced by a newer or

more senior employee?

Other Labor Hours

• Substitutes
• Additional hours
• Overtime
• Stipends, including coaches
• Sick/Vacation cash outs
• The state provides approximately 33% of our basic education

substitute costs in teaching only. There is no additional funds for classified employees. The state does not provide funding for most

• ther categories listed above.

Benefits

• Health benefits assigned by staff full-time equivalency, usually

expressed in hours

• Substitutes and other part-time workers may be eligible for health

benefits

• Mandatory benefits (FICA, L&I, unemployment and retirement) are

assigned to labor costs

• Labor costs and benefits represent 87% of the general fund budget

MSOCs – Materials, Supplies and Operating Costs

• The largest components of MSOCs are utilities, insurance, and payment for

services, such as running start payments to college – shown as object 7

• Materials budgets are allocated to schools mostly by student FTE
• Materials budgets are allocated to departments based on need and type
• Half of the travel budget is for miles driven between schools for employees

with split assignments

• Capital outlay is a small percentage of the budget and the majority is for

photocopiers

• MSOCs account for 13% of the general fund budget

Revenues

• If the legislature has completed their work by June we can estimate

expected apportionment increases/(decreases) based on expected enrollment

• In a “long” session, the legislature has been known to finish just

before midnight on June 30th. In that situation, estimates need to be made

• Federal grant awards are usually known in June
• Taxes can be estimated when we have voter authorization and the

legislature has not changed the model

• State funding, federal funding and property taxes comprise over 96%
• f expected revenues

Difference Between Revenues and Expenditures

• The difference between revenues and expenditures is compared to

the “budget impacts” worksheet

• The budget impacts worksheet is updated continually until the first

draft of the budget is complete

• The budget impacts worksheet is based on estimates
• Balancing – ensuring that outputs match expectations, evaluating

against current year results, matching revenues and expenditures in grant funds, incorporating new data if time permits

Fund Balance

• At the same time we’re projecting 20-21 revenues and expenditures, we’re

evaluating the future results of 19-20 in order to determine the ending 19-20 fund balance

• The estimated ending fund balance for 19-20 becomes the beginning,

budgeted fund balance for 20-21

• Actual fund balance for 19-20 won’t be known until the 3rd week of

October

• REMINDER: We budgeted ending fund balance for 19-20 to be $1.2M less

than ending fund balance for 18-19. Actual ending fund balance at the close of 18-19 was $21,037,080, much higher than originally projected.

• As projected expenditures increase, the amount of Unassigned to

Minimum Fund Balance Policy should also increase by 4%

What Has Materially Changed Since Last Year’s Budget?

• Enrollment is over budget by approximately 120 FTE in basic education and

40 in ALE (alternative learning education) – just under $1.5M

• We did not pay a health care premium in December due to the conversion

to the School Employees Benefits Board (SEBB) – approximately $2.7M

• Property Taxes – After the fall collections, property taxes were lagging by

$1.1M compared to the budgeted trend. The April 15th deadline was

• moved. Property taxes were coming in over $2M short. On July 17,

received notice that June collections came in at nearly $2M. Fund Balance will be revised again in the budget.

• Coronavirus – the Great Unknown. Expenditures have decreased at a

much faster rate than revenues.

• This – and hundreds of smaller items – are contributing to a higher fund

balance than planned.

20-21 Budget

• Reminder: The budget is fixed as of a point in time. We weigh the impact
• f new information received compared to the need for budget stability.
• We used one-time funding (Kaiser and Premera retention refunds) that are

no longer available in 20-21.

• We used transportation carryover in 19-20 that is no longer available.

Transportation funding has also been significantly reduced.

• We won’t have the SEBB “premium holiday.”
• Projected property tax collections are increasing after several years of

decreases (McCleary impact).

• The re-opening school plan is not final. We’re still determining new or

additional needs due to Coronavirus. The impact to the budget is difficult to determine.

• The state is facing an estimated $8.8B shortfall in the next two biennia and

impacts to school districts are unknown.

Questions?