Governors Proposed K-12 Budget December 6, 2011 Please e-mail questions to T.J. Kelly at...

Governor’s Proposed K-12 Governor’s Proposed K-12 BudgetBudgetDecember 6, 2011

Please e-mail questions to T.J. Kelly at Thomas.Kelly@k12.wa.us

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Agenda Agenda Welcome & IntroductionsLevy Equalization ProposalGeneral Apportionment Question from the SitesStudent TransportationGrants & Special ProgramsQuestion from the SitesAdjourn

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LEVY EQUALIZATION LEVY EQUALIZATION PROPOSALPROPOSAL

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Levy Equalization Reduction Levy Equalization Reduction inin2012-13 = -$116.43 million2012-13 = -$116.43 million

Levy Equalization TIER

Percent Reduction

to Levy Equalization

Local Property Tax Rate Percentage

Above State Average

Number of

Districts in the Tier

TIER 1 -10% Over 300% 40

TIER 2 -25%Between 200% and

300% 37

TIER 3 -50%Between 150% and

200% 56

TIER 4 -100%Between 100% and

150% 96

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In addition, 45% of the CY 2013 payment is delayed until July of 2013.Calendar Year 2013 Reduction = -$161.93 million.

The LEA monthly payments for 2013 forward are revised to April = 10%, nothing for May and June, and July=45%.

The tiered model creates The tiered model creates more cutoff pointsmore cutoff points

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Closer Look at Tier 4 Closer Look at Tier 4 CutoffCutoff

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GENERAL GENERAL APPORTIONMENTAPPORTIONMENT

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Budget Reduction Budget Reduction SummarySummary

Policy ChangeCurrent Year Funding to Proposed

FundingImpact

10 Month Enrollment Count (each SY)

$(1,626,000)

4 Day Reduction $(103,533,000)

Health Benefits* $(22,646,000)

Small Schools-Bonus Units $(7,230,000)

Levy Equalization Assistance $(116,429,000)

Total $(251,464,000)

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• Transportation Health Benefits not included.• Numbers will not reconcile to pivot table, as this

slide is by policy change and the pivot table is reduction by line item in apportionment.

Budget ReductionsBudget Reductions10 Month Enrollment

Count*Impact

Guaranteed Entitlement $(4,028,000)

Special Education $2,349,000

Transitional Bilingual (TBIP)

$62,000

Highly Capable $(7,000)

Total $(1,626,000)

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* Impacts both SY11-12 and SY12-13.

Budget ReductionsBudget Reductions4 Day Reduction Impact

Guaranteed Entitlement (includes MSOC) $(92,950,000)Special Education $(6,392,000)Learning Assistance Program (LAP) $(2,615,000)Transitional Bilingual Program (TBIP) $(1,383,000)Highly Capable $(193,000)

Total $(103,533,000)

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All Budget Reductions by All Budget Reductions by ProgramProgram

Program ImpactGuaranteed Entitlement $(118,714,00

0)

Special Education $(11,195,000)

Learning Assistance Program (LAP)

$(3,148,000)

Transitional Bilingual Program (TBIP)

$(1,756,000)

Highly Capable $(222,000)

Total $(135,035,000)

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Includes 10 month enrollment, 4 day cut, small school bonus unit and all benefit changes.

Enrollment Reporting Change Enrollment Reporting Change 11-12 = -$1.6M and 12-13 = -11-12 = -$1.6M and 12-13 = -$1.6M$1.6MEnrollment count will be based on

a 10 – month count: September through June instead of the current 9-month count that does not include June

In addition, students with over 5 days of consecutive unexcused absences will not be included in the count, down from the current 20 day absences

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Reduction in School Days in Reduction in School Days in 2012-13 = -$103.5 M 2012-13 = -$103.5 MState funding in 2012-13 is

reduced from 180 to 176 school days

Results in a 2.2% reduction to annual salary allocations as well as reductions to transportation, materials, supplies and operating costs

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Health Benefit Rate Change Health Benefit Rate Change in 2012-13 = -$22.6 Min 2012-13 = -$22.6 MReduction in monthly state

allocation for K-12 employees health benefits from $768 to $745

Impacts categorical program and transportation funding

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Small School Bonus Unit Small School Bonus Unit Change in 2012-13 = -$7.2 Change in 2012-13 = -$7.2 MMReduction is only for 12-13Reduces small high school bonus

units from 9 to 8 CIS for districts with less than 300 students

Reduces remote and necessary CIS units from 4.5 to 4

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MSOC Technical CorrectionMSOC Technical CorrectionMSOC rate for 11-12 should have

been $3 per FTE higherOSPI has asked for this to be

adjusted in 11-12

11-12 Current Rate

Corrected11-12 Rate (with $3/FTE)

12-13 Rate (includes inflation

and 4 day cut)

$542.53 $545.30 $539.06

June 2013 Apportionment June 2013 Apportionment DelayDelay-$340 million-$340 millionOne-time apportionment delay

from June 30 to July 1, 20132013-15 biennial budget will have

to be increased by $340 million$10 million in contingency funds

are available to school districts meeting financial hardship criteria

OSPI anticipates using the same process as last year.

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ED JobsED JobsAdditional $3 million in federal

reallocation of ED JobsState funding for general state

apportionment payments is reduced by the amount of the allocation

District level allocations will be small, if districts don’t take the reallocation amount, their state funding WILL STILL BE REDUCED

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QUESTIONS FROM QUESTIONS FROM THE SITESTHE SITES

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TRANSPORTATION TRANSPORTATION FUNDING FUNDING

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Pupil TransportationPupil TransportationEliminates the regional transportation coordinator program effective July 1, 2012

Reduces the operations allocation:◦Pension and Health care costs◦Proposed reduction in school year

◦These reductions would be made across the board

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Bus DepreciationBus DepreciationChanges the payment from the last

business day of September 2012 to August 2013

Thereafter, paid in AugustDoes not change the payout

process, just the payment dateContingency funds availablePlease contact

Allan.Jones@k12.wa.us if this would create a fiscal crisis

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GRANTS & SPECIAL GRANTS & SPECIAL PROGRAMSPROGRAMS

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National Board Bonus National Board Bonus ReductionReductionJuly 2012 payment = -$8.58 July 2012 payment = -$8.58 millionmillionThe bonus paid to National Board

certified staff is reduced from $5,090 to $4,000

The additional bonus paid to National Board certified staff working in a challenging school is reduced from $5,000 to $4,000

First year National Board certified staff will receive $2,400

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School-Based Medical School-Based Medical ServicesServices11-12 = -$1.2m and 12-13 = -11-12 = -$1.2m and 12-13 = -$2.4m$2.4mEffective January 1, 2012, school districts will be required to provide 100% of the funds necessary to match the federal Medicaid reimbursement for school-based medical services, such as speech and occupational therapy

The state will no longer provide 40% of the nonfederal matching funds

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Grant EliminationsGrant Eliminations2012-13 = -$7.37 million2012-13 = -$7.37 million

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Grant12-13

Amount

Readiness to Learn($3,234,00

0)Promoting Actual Student Success (PASS)

($1,500,000)

Beginning Educator Support Team (BEST)

($1,000,000)

CTE Start-up Grants & Robotics ($977,000)Principal & Superintendent Internships ($477,000)STEM Lighthouses ($135,000)Nonviolence Training ($50,000)

Grants Reduced 20%Grants Reduced 20%2012-13 = -$1.45 million2012-13 = -$1.45 million

Grant12-13

AmountIT Academy ($400,000)College Bound Recruiting ($200,000)Regional Technology Centers ($196,000)Reading Corps ($191,000)Leadership Academy ($162,000)WA Achievers Scholars Mentoring ($135,000)LASER/Pacific Science Center ($71,000)Building Bridges ($67,000)Jobs for America’s Graduates ($27,000)

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Aerospace ProposalAerospace Proposal+$700,000 in 2012-13+$700,000 in 2012-13$300,000 for entry-level

aerospace assembler training programs in 12 high schools

$150,000 for aerospace and manufacturing programs in 2 skills centers

$250,000 for advanced project lead the way courses in engineering at 10 high schools

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Governor’s Revenue Governor’s Revenue ProposalProposalThe Governor proposes a

temporary half-cent increase in the state sales tax from 6.5% to 7.0% effective July 1, 2012 through July 1, 2015

With the half-cent penny increase, Governor Gregoire proposes to prevent the school day and levy equalization reductions = $251.1 million in State Fiscal Year 2013

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QUESTIONS FROM QUESTIONS FROM THE SITESTHE SITES

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Important LinksImportant LinksGovernor’s Proposed 2012

Supplemental Budget http://www.ofm.wa.gov/budget12/default.asp

OSPI School Apportionmenthttp://www.k12.wa.us/safs/

Legislative Budget Informationhttp://leap.leg.wa.gov/leap/default.asp 31