2011-2012 Budget Hearing

1. 2011-2012 Budget Hearing Battle ground school district Marybeth lynn Assistant superintendent Finance and school operations August 29, 2011

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) K moving to 1st grade is smaller than previous year. Large 4th grade moving to 5th grade. Smaller 8th grade moving to 9th.

8. Staff Generated By Enrollment *Does not include staff funded by grants. *Includes staff in programs 01, 02, 21, 31, 97. CIS = Certificated Instructional Staff CAS = Certificated Administrative Staff

9. Challenges in Building Balanced Budget • In 2010-2011 – State retroactively cut school district funding by: • Eliminating K-4 enhancement • Shifting Federal Edujobs stimulus funding • Actual 2010-2011 enrollment was 134 FTE less than budgeted. • 2011-2012 State approved budget • Continued with the elimination of K-4 enhancement ($1.2 m) • Cut funding for salaries ($1.4 m) • Reduced ALE funding ($.67 m) • Stimulus funding gone

10. General Fund Revenue Budget

11. General Fund Revenue Budget

12. General Fund Expenditure Budget

13. Budget by Program

14. Expenditure by Object Code

15. Expenditures by Activity

16. Per FTE Activity Costs 2009-2010 Actual

17. 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

18. Fund Balance – General Fund • Estimated Beg Fund Balance 9/1/2011 $ 1,225,000 • Uninsured Risks/Inventory Reserve $200,000 • Designated $525,000 • Unreserved $500,000 • Revenue Budget $120,371,103 • Expenditure Budget $119,699,536 • Transfer to Debt Service $ 150,000 • Estimated End Fund Balance 8/31/2012 $ 1,746,567 • Uninsured Risks/Inventory Reserve $ 200,000 • Designated $ 546,567 • Unreserved $1,000,000

19. Capital Projects • Beginning Fund Balance 9/1/2011 $9,417,376 • Bond proceeds, interest, state match, impact fees • Revenue Budget $1,114,748 • Expenditure Budget $5,246,704 • Estimated Fund Balance 8/31/2012 $5,285,420 • Modulars • QSCB projects

20. Debt Service Fund • Beginning Fund Balance 9/1/2011 $1,885,000 • Budgeted Revenue $5,826,555 • Budgeted Expenditures $5,700,000 • Estimated Fund Balance 8/31/2012 $2,011,555 • Non-vote debt 9/1/11 $ 4,488,032 • Voted debt 9/1/11 $60,355,000

21. ASB Fund • Beginning Fund Balance 9/1/2011 $ 807,000 • Budgeted Revenues $4,739,610 • Budgeted Expenditures $4,739,610 • Estimated Fund Balance 8/31/2012 $ 807,000 • Challenges/Concerns • Title IX Compliance • High Schools declining fund balances • Costs outpacing revenues

22. Extracurricular Support Analysis – Based on 2009-2010 Actual Expenses • Activity 28 Extracurricular = This activity is used to record expenditures directly related to student services such as coaching, class or student activity advising, supervising student body fund accounting and related duties. • In 2009-2010 - $390,000 for High School coaching salaries, $73,000 for Middle School Intramurals. • In 2010-2011 - $426,000 for High School coaching salaries, $100,000 for Middle School Intramurals. • 2011-2012 Budget - $426,000 for High School coaching salaries, $80,000 for Middle School Intramurals.

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