Presentation Transcript

1. Governor Gregoire’sProposed K-12 Budget

   K-20 Presentation January 16, 2013
2. Agenda Welcome & Introductions Capital Projects Student Transportation General Apportionment Grants & Special Programs Charter Schools and Federal Sequestration Question from the Sites Adjourn
3. Gordon Beck, Director, School Facilities & Organization Capital Projects
4. 2013-15 K-12 Capital Budget School Construction Assistance Program – Maintenance Level of $675.3 million. Construction Cost Allocation inflationary increases: FY 2014 = $194.26 FY 2015 = $200.40
5. 2013-15 K-12 Capital Budget Other Funding proposals: Small Repair Grant Program - $10 million Full Day Kindergarten Capacity Grants - $10 million Emergency Repair Pool - $.50 million Does not provide: Skills Centers Major Project Funding Skills Centers Minor Project Funding Energy Performance Contracting Grant Funding
6. 2013-15 K-12 Capital Budget
7. Distribution of Bonds The Governor’s Capital Budget proposes to spend $3.5 billion in total funds of which $1.767 billion are in state bonds out of a bond capacity of $1.793 billion.
8. Distribution of Bonds K-12 schools receive the largest share of state bonds at $507.7 million of the total budget of $699.6 million.
9. Allan Jones, Director, Pupil Transportation Student Transportation
10. Budget Proposal Full funding of STARS in 2013-14. Statewide: additional $110+ million. Pivot table provides district by district breakout (last year’s data and coefficients). Additional funding provided through wholesale petroleum product excise tax.
11. Current Year Funding Winter Report is due February 1, 2013. Report 1026A posted by February 23, 2013. Funding adjusted February apportionment. Additional funding this year is $2.8 million.
12. Efficiency Ratings Early March—Memorandum with ratings. For districts < 90 % memorandum will cover the process for regional coordinator efficiency reviews. Released simultaneous with SAFS reports.
13. T.J. Kelly, Director, School Apportionment & Financial Services General Apportionment
14. Salary and Benefits Restores the salary reductions of 1.9% for CIS and CLS staff and 3% for CAS staff. Increases the maintenance fringe benefit percentages to 18.68% for Certificated Staff and 20.95% for Classified Staff. Increases the monthly health benefit rate from $768 to $777.
15. Salary and Benefit Statewide Impact
16. Materials, Supplies, and Operating Costs (MSOC)
17. MSOC - Professional Development 2013-14 school year includes an enhancement of $32.65 for the Professional Development category. Districts are required to use for training staff on OSPI approved TPEP teacher training. $11.01 is considered ongoing for professional development. $21.64 is adjusted for inflation and applied to other MSOC components for the 14-15 SY.
18. MSOC – CTE & Skills Centers OSPI’s policy statement: The CTE and Skills Center MSOC is an enhancement (expressed by a multiplier) of the general education MSOC amount. The School Apportionment System requires each category of MSOC funding to be listed separately.
19. MSOC – CTE and Skills Center The Governor’s Budget assumes: CTE and Skills Center MSOC are separate policies and unless specifically identified, there is no enhancement when BEA MSOC is increased.  Future increases will occur through either inflation or through providing MSOC increases specifically to CTE and Skills Centers. Three policy decisions must be made to increase MSOC across the board, instead of one.
20. MSOC – CTE Governor’s Budget
21. MSOC- Skills Centers Governor’s Budget
22. CTE/Skills Center Technical Correction Governor’s budget increases the Other CIS factor per 1,000 student FTE as follows:
23. Total CTE and Skills Center Impact
24. BEA School Admin for CTE/SC The BEA school-level administrator is changed from a multiplier to a factor. The 0.15 Principal bump applied to the general education formula was not added to the CTE and SC formulas. See notes on John Jenft Sheet for what to input in the F-203 X-option to get appropriate results.
25. Other Funding Increases Increases the general education principal allocation by 0.15 FTE at each prototypical school level ($26.2 million). Full day kindergarten for all schools with poverty greater than 50%; adding approx. 320 new FDK schools. ($61 million). K-2 High Poverty Class Size is reduced from 24.10 to 20.0 ($90 million).
26. Policies that Sunset ALE funding reductions of 10% or 20% are not renewed ($19.7 million). Hold harmless policy sunsets which decreases statewide funding by approximately $13.8 million.
27. Summary of Funding Impacts
28. F-203 X-Option Impacts No system impacts Salary Restoration Fringe Benefits MSOC Principal Allocation Health Benefits Full Day Kindergarten Requires Changes K-2 High Poverty Class Size Aggregate Hold Harmless Sunsets ALE Reduction Sunsets
29. Coming Soon on OSPI’s Website School District Financial Health indicators tool updated with 2011-12 school year data is available to districts now. Will be made public in March. Actual versus Funded Resource Portal updated with 2011-12 school year data will be available for district preview shortly. Will be made public in March.
30. Lorrell Noahr, Director, Financial Policy & Research Grants and Special programs
31. Teacher & Principal Evaluation Teacher training is provided through the professional development category of MSOC. One-time funding. Must be used for an OSPI approved training. Increased Principal allocation to allow for additional duties related to teacher evaluations.
32. Increased Reporting Requirements The operating budget provides an enhancement to MSOC to be solely for MSOC expenditures. Districts, as a condition of the receipt of the enhancement, must document compliance. As a condition of the receipt of the additional Principal FTE, districts must demonstrate an increase of school administrator FTE commensurate with the 0.15 FTE allocation increase.
33. LEA and COLAs Local Effort Assistance (LEA) Per Pupil Inflator for 13-14 is 6.2%. Per Pupil Inflator for 14-15 is 0.4%. I-732 Cost of Living Adjustments are suspended for the 13-14 and 14-15 school years.
34. STEM Programs Six grants for entry-level aerospace assemblers certification training ($150,000). Four grants for Skills Center courses for advanced manufacturing skills ($300,000). Ten grants for advanced high school coursework in STEM, such as Project Lead the Way aerospace engineering ($250,000). Establish the National Career Readiness Certification Assessment Program for 2,500 students each year. ($195,000).
35. Other Programs Early Childhood Education and Assistance Program provides additional enrollment for 5,125 students. College Bound Scholarships funded at $35M which will maintain the state’s commitment to these scholarships.
36. Revenue Wholesale tax on gasoline and diesel dedicated to pupil transportation. When fully ramped-up pupil transportation will move from the operating budget to the transportation budget. Extension of the business and occupation tax and the $.50/gallon beer tax. Proposes future revenues from the (yet to be enacted) Marketplace Fairness Act to be dedicated to future basic education enhancements.
37. Charter Schools and Federal Sequestration
38. Charter Schools State Board is in the process of adopting rules to establish an annual application approval process and timelines for entities seeking approval to be charter school authorizers. Anticipated public hearing on the proposed rules in February/March 2013. OSPI and SBE have formed a workgroup to gather questions from stakeholders and to develop a FAQ on charters. SBE’s link to Charter School Information: http://sbe.wa.gov/charters.php
39. Federal Sequestration What is sequestration? Automatic, across the board budget cuts. Applied as a percentage cut to every federal program, project, and activity in FY 2013. Applied as a reduction to Congressional appropriations caps in FY 2014 and beyond. Originally set to start on January 2, 2013. Modified by fiscal cliff deal (American Taxpayer Relief Act). Delayed start to March 1, 2013.
40. Federal Sequestration Changes to Sequestration Delays start by two months (now March 1, 2013). Reduces overall cut by $24 billion. Pays for reduction with: $12 billion in new taxes to IRAs that are converted from traditional to Roth plans. $12 billion in cuts to annual spending caps. Split evenly between Defense and non-defense. $4 billion applied against FY 2013 appropriations. $8 billion applied against FY 2014 appropriations. Sequestration still applies for remainder of FY 2013 and for FY 2014 through FY 2021.
41. Federal Sequestration Sample Sequestration Cut – Federal FY 2013 Your District received its regular Title I appropriation for school year 2012-13. The full-year sequestration cut estimated to be 5.9% will be taken out of grant awarded in July 2013. Since most States and districts use July 2013 funds for the 2013-14 school year, ED anticipates that programs will not feel the impact of cuts until then.
42. Federal Sequestration Sample Sequestration Cut – Federal FY 2014 For Federal FY 2014 and beyond, sequestration cuts (and cuts from the fiscal cliff deal) are taken out of 302(b) appropriations caps. Sequestration will not be applied as a percentage cut. Appropriators have discretion in distributing spending/cuts. The only variable here is total program funding – the size of the pie.
43. Federal Sequestration Lingering Questions What will FY 2013 funding be? Sequestration cuts are a set dollar amount, but the percentage of FY 2013 funding they represent varies depending on final FY 2013 funding. A temporary Continuing Resolution (CR) for the first half of FY 2013 expires March 27, 2013. How will fiscal cliff deal cuts, FY 2014 cuts be applied? Cuts to appropriations caps give lawmakers more discretion (not across-the-board percentage cuts). Will sequestration happen?
44. Questions From the Sites
45. Important Links Governor’s Proposed 2013-15 Proposed Budget http://www.ofm.wa.gov/budget13/default.asp OSPI School Apportionment http://www.k12.wa.us/safs/ Legislative Budget Information http://leap.leg.wa.gov/leap/default.asp