2015-16 BUDGET HEARINGAUGUST 20, 2015

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Update Since the Hearing

AVID ◦ Additional staff professional development training ◦ Building site plans for AVID implementation◦ Alignment to teaching best practices◦ Increased rigorous coursework◦ $60,000 increase

Parent Involvement and partnership◦ $35,000 increase to Partnership office

Disproportionate discipline ◦ New grant dollars City of Tacoma◦ Developing common vernacular and standardizing the data◦ Increased contact with parents/guardians◦ Updating of internal policies

Enrollment Trends…LAST 10 YEARS,

ENROLLMENT DECLINED: 2004-2014 = <2,537>

Kindergarten: 360 students

1-5: 579 students

6-8: 1,060 students

9-12: 1,696 students

NEXT 10 YEARS, ENROLLMENT INCREASES: 2014-2023 = 1,033

Kindergarten: 107 students

1-5: 440 students

6-8: 436 students

9-12: 50 students

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Program New Revenues (in millions)

New Expenditures (in millions)

Basic Education $20.450 $22.855

Categorical Programs $6.895 $6.490

Local Funds $3.052 $3.052

Fund Balance Reallocation $0.000 ($2.000)

Total $30.397 $30.397

General Fund Budget Impacts 2015-16

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Basic Education & Local Expenditure Impacts

Expenditure Increase / (Decrease) (in millions)

Salary Increases and Union Negotiations $9.950Retirement & health $4.450Class Size adjustments, K-3 and High Poverty $2.200Curriculum and Instruction on-going funding $1.000Technology on-going funding $1.000Transportation funding adjustment $0.800School support staff adjustments $1.000Educational Program Enhancements $2.057Sheltered programs moved to basic education $2.000Operational Changes $1.450

Total Impact $25.907

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2015-16 General Fund Budget

Revenues: $384,654,272o $30,397,181 increase from 2014-2015

Expenditures: $390,922,149o $26,963,136 increase from 2014-2015

Fund Balance usage: $6,267,877 o $3.43 million decrease from 2014-15

— $2.00 million “sheltered” programs— $2.07 million carryover allocations— $2.20 million curriculum & instruction

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2015-16 Other Funds

Debt Service:— 2015-16 Budgeted Expenditures: $59,579,125

◦ Fund used to manage bond related debt obligations◦ Currently the district has $300.3 million of outstanding bonds

Associated Student Body:— 2015-16 Budgeted Expenditures: $3,881,670

◦ Special revenue fund for holding student related fees◦ Funds are distributed exclusively under the guidance of the student body

Transportation Vehicle Fund:— 2015-16 Budgeted Expenditure: $1,610,000

◦ For the purpose of purchasing vehicles for student transportation◦ Planning purchase of 13 buses during 2015-16

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2015-16 Other Funds (continued)

Capital Projects:

— 2015-16 Budgeted Expenditures: $177,850,000

— Fund for acquisition or construction of major capital facilities, technology upgrades and small capital projects

— Current major projects include:• SAMI –Phased opening September 2016-2017• Wilson High School Phase II – Opening September 2016• McCarver Elementary –Opening September 2016• Wainwright –Opening September 2016• Stewart Middle School –Opening September 2017• Arlington Elementary – Opening September 2017

Union Impacts

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Union Category 14-15 Adopted FTE

15-16 Projected FTE Variance

Bus Drivers 52.00 55.00 3.00 Non-represented 103.95 111.95 8.00 Custodians 187.00 187.00 - Child Nutrition 150.80 143.61 (7.19)Maintenance 54.00 56.00 2.00 Office Professionals & Professional Technical 658.33 672.87 14.53 Principals 87.00 97.00 10.00 Para Professionals 122.60 127.85 5.25 Security 32.00 32.00 - Superintendent 1.00 1.00 - Teachers 2,041.90 2,080.10 38.20 Grand Total 3,490.58 3,564.38 73.80

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Budget by Strategic Plan Priority

Goal Expenditures % of Budget

Academic Excellence $279,077,231 71.4%

Early Learning $11,475,037 2.9%

Safety $8,137,263 2.1%

Partnerships $834,078 0.2%

Support Services $91,398,540 23.4%

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Multi Year Budget Planning:

Planning for the Future2015-16:•Reduce fund balance reliance by $2 million

•Final allocation to fund Curriculum & Instruction of $1.0 million

•Begin technology allocation to fund additional technology of $1.0 million

•Debt and Fiscal reserve amount remains at 5%

Future Considerations:•Planned increases for McCleary until 2018

•Eliminate fund balance reliance by 2016-17

•Maintenance level budget established

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2015-16 2016-17 2017-18 2018-19 2019-20 $(8.00)

$(6.00)

$(4.00)

$(2.00)

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$(2.00)

$(4.27)

$5.21

$9.30 $8.50

$2.00

$(6.27)

$5.21

$9.30 $8.50

$2.00

Sustainability Focus - Multi-Year Budget Balancing Plan

Sheltered Programs (Fund Balance) Other Fund Balance Uses (C & I, Carryover)

Basic Education Increases from McCleary/(Shortfall)

Use

d fo

r Bal

anci

ng (i

n m

illio

ns)

SUR-PLUS

SURPLUS

SURPLUS

SHORT-FALL

Reliance on fund balance decreases as revenues increase due to McCleary funding

SURPLUS

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August 31, 2015 August 31, 2016 August 31, 2017 August 31, 2018 August 31, 2019 August 31, 2020 $-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$17.81 $19.15 $19.70 $20.00 $20.00 $20.00

$17.27 $9.67 $10.11 $10.81 $11.81 $12.81

$1.00 $1.00

$1.00 $1.00

$1.00

$35.08

$29.81 $30.81 $31.81 $32.81 $33.81

Projected Ending Fund Balance by Year

Debt and Fiscal Reserves Other Reserve Funds Anticipated Budget Savings

Ava

ila

ble

Re

se

rve

Fu

nd

s (

in m

illi

on

s)

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Looking into the Future:Additional cost-of-living adjustments and underfunding of salaries

Minimum wage initiatives

Pension increases

Affordable Care Act

Levy/LEA adjustments

Continued charter school impacts

Initiative to reduce class sizes (I-1351)

Economic stability

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Kudos to ALLBoard leadership

Superintendent and Cabinet

Program and budget managers

Budget team— Kristin Heather— Robin Derby— Jodie Slaughter— Walter Buford— Rose Owens— Mary Kate Richardson