2012-2013 Budget Hearing

1. 2012-2013 Budget Hearing Battle ground school district Marybeth lynn Assistant superintendent Finance and school operations August 27, 2012

2. Presentation Goals • Provide draft budget to receive public input • Understand purpose of each district fund • Understand where public schools get funding • Understand impact of state budget to school district budgets • Understand where funding is spent • Ongoing monitoring tools

3. District funds • General fund – accounts for the day-to-day operation of the district. Included are all the normal and recurring financial activities of the school district that are not accounted for in other funds. Expenditures include salaries and benefit costs, and non-salary costs, such as materials and supplies, books and other instructional materials, utilities, purchased services and equipment. Revenues for the General fund include state funds, special maintenance and operations levy funds, federal funds and other funds. • ASB – accounts for the student extracurricular activities of each school. Each school student body organization prepares and submits, for Board approval, a revenue and expenditure plan of ASB activities for the school year.

4. District Funds • Debt Service Fund – provides for the redemption and payment of interest on voted and non-voted bonds. Each year an amount is levied which provides for redemption of voted bonds currently due, interest payments on bonds outstanding and related costs. Non-voted debt is paid through a transfer from the general fund to the debt service fund. • Capital Projects Fund – accounts for the financing and expenditures of capital projects. It includes modernization, new construction, equipping of new facilities, site purchases and improvements, major renovations and technology system upgrades. Revenues for the Capital Projects Fund include state matching funds, investment earnings, site sales, impact fees, bonds and levies.

5. Source of Funds for Public Schools • State funding – general purpose (i.e. Apportionment) • State funding – designated (i.e. Special Ed, transportation, LAP, ELL, Gifted) • Local funding – general purpose (i.e. Levy, fees) • Local funding – designated (i.e. School lunch, bonds) • Federal funding – designated (i.e. Title I, Special Ed) • Federal funding – general purpose (i.e. Fed forest)

6. Basic School Funding Information • Apportionment – The single largest source of funds • Enrollment Staff Funding • While this is general funding – there are strings attached • Minimum number of teachers by grade level (staffing ratio) • Minimum teacher salary (staff mix) • Minimum health care and pension rates

7. Enrollment (FTE) Adding CAM Grades 3 & 4, growth in Riverlink

8. Change in Funding Formula • Formula has changed from per 1,000 student to school generated and district generated staff, by position • School – Classroom, counselors, librarian, principal, health services, security • District – Warehouse, technology, central admin, maintenance, facilities, grounds, admin support • Funding is based on a “prototypical” school • All district’s state funded versus actual staffing is required to be reported

9. Prototypical Classroom Teachers

10. Prototypical – Other Staffing

11. Prototypical – Districtwide Support

12. Staff Generated By Enrollment *Does not include staff funded by grants. *Includes staff in programs 01, 02, 21, 31, 97.

13. Challenges in Building Balanced Budget • 2012-2013 State approved budget • Continued with the elimination of K-4 enhancement • Continued the 1.9% cut in salaries • Stimulus funding gone • Changes in Health Care requiring employee contributions

14. General Fund Revenue Budget

15. General Fund Revenue Budget

16. General Fund Expenditure Budget

17. Expenditure by Program

18. Expenditure by Object Code

19. Expenditure by Activity

20. Levy Budget • Additional staff not funded by state • Math adoption • Building site maintenance • Transportation shortfall • Assessment and other unfunded state mandates • High School ASB support and Middle School extracurricular activities • Network and technology upgrades • Textbook replacements • Arts • Special Education shortfall • Additional funding for custodial, maintenance, grounds, and department budgets • Funding shortfalls in bilingual, highly capable programs • School resource officers

21. Fund Balance – General Fund • Board policy #6022 – Approved 3/20/2010 • Fiscal Year 2010/2011 – Add $500,000 • Fiscal Year 2011/2012 – Budgeted to add $500,000 • Fiscal Year 2012/2013 – Budgeted to add $500,000

22. Fund Balance – General Fund • Estimated Beg Fund Balance 9/1/2012 $ 2,545,000 • Uninsured Risks/Inventory Reserve $ 200,000 • Committed to Minimum Fund Balance $1,000,000 • Designated $ 845,000 • Unreserved $ 500,000 • Revenue Budget $121,478,947 • Expenditure Budget $120,815,182 • Transfer to Debt Service $ 150,000 • Estimated End Fund Balance 8/31/2013 $ 3,058,765 • Uninsured Risks/Inventory Reserve $ 200,000 • Designated $ 845,000 • Committed to Minimum Fund Balance $1,500,000 • Unreserved $ 513,765

23. Fund Balance – Capital Fund • Beginning Fund Balance 9/1/2012 $8,431,800 • Bond proceeds, interest, state match, impact fees • Revenue Budget 3,602,000 • Expenditure Budget 5,352,500 • Estimated Fund Balance 8/31/2013 $6,681,300 • Modulars • Completion of QSCB projects • Capital Projects

24. Impact Fees 2011-2012

25. Fund Balance - Debt Service Fund • Beginning Fund Balance 9/1/2012 $2,575,000 • Budgeted Revenue 5,612,434 • Budgeted Expenditures 5,950,000 • Estimated Fund Balance 8/31/2013 $2,237,434 • Non-vote debt 9/1/12 $ 5,178,900 • Voted debt 9/1/12 $57,885,000

26. Fund Balance - ASB Fund • Beginning Fund Balance 9/1/2012 $ 860,000 • Budgeted Revenues 4,775,902 • Budgeted Expenditures 4,775,902 • Estimated Fund Balance 8/31/2013 $ 860,000 • Challenges/Concerns • Title IX Compliance • High Schools declining fund balances • Costs outpacing revenues

27. Ongoing Monitoring Tools • Monthly Budget Status Reports • Monthly Enrollment Reports • Legislative Updates • Staff Mix • Apportionment • Fiscal Advisory Committee