2018/2019 Budget Overview - Bellevue School District · 4-Year General Fund Budget - Revenue...

2018/2019 Budget OverviewBoard 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 & OperationsEmail: devitam@bsd405.orgPhone: (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

ClassifiedStaffing

Building Budget

Program StaffingOther 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.

5

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.

6

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

7

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

Budget Process TomorrowFrom 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-departmentcollaboration

• Key stakeholders asked for input, feedback, and approval

USES DATA AND TOOLSTHAT…

• Compare current and previous years’expenditures

• Separate budgets 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 of 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 ROI8

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 on campus

• Increase hours for health room assistant

• Increase hours for testing room assistant

• Differentiated classified support staffing model

• Update certificated staffing model 9

2018/2019 InvestmentsDirect 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)

11 $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

12

12

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 MATERIALS15

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-levelbudget with anticipated cost increases:• Utilities• Labor contracts• Benefit & retirement

contributions• Wilburton start up costs

• Update fund balance projections

16

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

17

4-Year Enrollment Projection (FTE)Grade 2017/2018

Actual Oct. 12018/2019 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

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4-Year General Fund Budget - Revenue

$000’s 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Revenues

Local TaxesLocal Non-Tax

$64,706$25,295

$58,120$27,411

$52,091$27,959

$53,906$28,518

$55,775$29,089

State – GeneralState – Special

$143,813$36,128

$186,826$47,269

$185,915$48,215

$191,131$49,179

$196,518$50,162

FederalOther

$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

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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 over/(under) Expenditures

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

*Includes Transportation and Food Service Expenditures