2012-13 Proposed Budget Document

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Salem-Keizer School District 24J/32

Marion/Polk Counties, OregonPPRROOPPOOSSEEDDBBUUDDGGEETTDDOOCCUUMMEENNTT

July 1, 2012 - June 30, 2013

Presented to the Budget Committee

April 3, 2012

Salem-Keizer School District 24J complies with provisions of the various civil rights laws, such as the Fair Employment Practices Act, Title IX Regulations, and Section 504 of

PL 93.112 in employment and educational programs and activities.

Financial Services Department2450 Lancaster Drive NE, Suite 220Salem, OR 97305503-399-3021www.salemkeizer.org


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Salem-Keizer School District 24J/32 Marion/Polk Counties, Oregon 2012-13 Proposed Budget

TABLE OF CONTENTS


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Salem-Keizer School District 24J/32, Marion/Polk Counties, Oregon

2012-13PROPOSED BUDGET

Table of Contents

i

INTRODUCTORY SECTION

Message from the Superintendent. *

Executive Summary

Goals 1

The Budget and Budget Forecast 2 - 8

Student Enrollment 9 - 10

Allocation of Financial and Personnel Resources and Performance Results 11 - 15

Changes in Debt 16 - 17

Financial Summary 18 - 22Salem-Keizer School District School Board .. . 23

Budget Committee Members. 24

District Administrative Staff Contact Information. 25

Organization

Mission and Goals 26 - 27

Literacy Model 28

Strategic Plan. 29

Profile of the District 30

Map of the District 31

The Schools 32 - 35

Staff 36

District Top Level Organizational Chart. 37

Legal Status 38

Fiscal Independence 38Financial and Budgetary Accounting 38 - 39

Budget Policies, Procedures and Regulations 39 - 41

Budget Development Process 41 - 43

Budget Committee Meeting Calendar 44

Budget Administration and Management 45

Funds and Classification of Revenue and Expenditures 46 - 47


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Table of Contents

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GENERAL FUND

General Fund Overview 48

Resources Ten Year Overview of General Fund Resources 49

Where Does the Money Come From? 50

Summary of Resources 51

Estimated Budget Resources for Fiscal Year 2012-13 and Comparison 52 - 57

Requirements General Fund Allocating the Money 58

Summary of Requirements 59 - 60

Instruction 61 - 77Support Services 78 - 106

Facilities Acquisition and Construction 107 - 108

Other Uses 109

Contingency 110

Other Requirements Summary of Budget by Object Category 111 - 114

FTE Staff Information 115

Summary of FTE and Salary Budget 116

FTE Comparison, By Program Within State Code 117 - 123

DEBT SERVICE FUND

General Obligation Bonds Overview 124

Debt Service Budget GO Bonds 125 - 126

Debt Service Schedule GO Bonds 127 - 129

PERS Revenue Bonds Overview 130

Debt Service Budget - PERS 131

Debt Service Schedule - PERS 132 - 133

CAPITAL PROJECTS FUND

Capital Projects Fund Overview 134

Capital Projects 135 - 139

SPECIAL REVENUE FUNDS

Special Revenue Funds Overview 140

Food Services 141 - 145

Asset Replacement 146 - 154Fee Based Programs 155 - 176


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Table of Contents

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Grants

Grant Introductions 177

Grant Descriptions 178 - 183

Grants Four Year History of Resources & Requirements 184

Grant Summary of Expected Awards 185

Grant Resources & Requirements 186 - 216

Capital Maintenance 217 - 219

Energy Conservation Program 220 - 222

INTERNAL SERVICE FUNDS

Internal Service Funds Overview 223

Risk Management 224 - 228

Services 229 - 234

Charter Schools 235 - 236

Energy Conservation Program 237 - 239

ENTERPRISE FUND

Enterprise Fund Overview 240Enterprise Fund 241 - 242

TRUST FUND

Trust Fund Overview 243

Scholarship Fund 244

STATISTICS - TERMS

Statistical Information

Condensed Statement of Net Assets 245Changes in Net Assets 246

Fund Balances of Government Funds 247

Government-Wide Revenues 248

Government Funds Revenues, Expenditures, Other Financing Sources (Uses) and Debt Service Ratio 249

Revenues and Other Financing Sources by Source (Non-GAAP Basis) General Fund 250

Expenditures and Other Financing Uses by Program (Non-GAAP Basis) General Fund 251 - 252

Property Tax Levies and Collections General Fund 253

Property Tax Levies Marion and Polk Counties 254Comparison of General Fund Expenditure Budget to Tax Levy 255


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Table of Contents

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Assessed Valuation and Real Market Value of Taxable Property 256

Direct and Overlapping Property Tax Rates 257

Principal Taxpayers 258

Legal Debt Margin Information 259

Ratios of Outstanding Debt by Type 260

Direct and Overlapping Governmental Activities Debt 261

Ratio of Annual Debt Service Requirements for General Obligation Bonded Debt to Total Budget Basis GF Exp & Transfers 262

Ratio of Net General Obligation Bonded Debt to True Cash Value & Net General Bonded Debt Per Capita & Per Student 263

Demographic and Economic Statistics 264Salem Metropolitan Area Employers Largest to Smallest 265

Salem Metropolitan Area Average Annual Employment 266

Population Ethnicity and Other Related Data 267

School Building, Student Enrollment and Average Daily Membership 268 - 275

Average Daily Membership 276 - 278

Certified, Classified, and Administrative Full-Time Equivalent Employees General Fund 279

Teacher Base Salaries 280

Operating Statistics 281Miscellaneous Statistical Data 282

Glossary of Terms & Acronyms 283 - 289


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IINNTTRROODDUUCCTTOORRYYSSEECCTTIIOONN


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IN TRODUCTORY SECTION


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INTRODUCTORY SECTION

Table of Contents

EXECUTIVE SUMMARY

Goals 1

The Budget and Budget Forecast 2 - 8

Student Enrollment 9 - 10

Allocation of Financial and Personnel Resources and Performance Results 11 - 15

Changes in Debt 16 - 17

Financial Summary 18 - 22

Salem-Keizer School District School Board 23

Budget Committee Members 24

Contact Information 25

ORGANIZATION

Mission and Goals 26 - 27

Literacy Model 28

Strategic Plan 29

Profile of the District 30

Map of the District 31

The Schools 32 - 35

Staff 36

District Top Level Organizational Chart 37

Legal Status 38

Fiscal Independence 38

Financial and Budgetary Accounting 38 - 39

Budget Policies, Procedures and Regulations 39 - 41

Budget Development Process 41 - 43

Budget Committee Meeting Calendar 44Budget Administration and Management 45

Funds and Classification of Revenue and Expenditures 45 - 47


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EXECUTIVE SUMMARY


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Executive Summary

SALEM-KEIZER PUBLIC SCHOOLS DISTRICT 24J

Welcome to Salem-Keizer Public Schools.

All students graduate and are prepared for a successful life.

GOALS

The vision of the Salem-Keizer School District is to provide quality education to all of its students to ensure that the maximum

number of its students graduate to go forward to college or to pursue a successful career. To achieve this, the District implemented a

Strategic Plan, and the core of this plan is the Districts vision. The plan has four distinct goals:

1. Improve Student Achievement2. Effective Organization to Support Student Achievement3. Leadership Development4. Public Engagement

Each goal has several identified steps.

This year District leadership met with the Budget Committee to describe what they are doing to meet these steps. Each leader focused

on their areas strategic plan, its alliance with the Districts overall plan, and presented specific examples to show progress. For

example, our High School Director spoke about the Districts new Literacy Center and the progress the District has made to reach outto students who have dropped out of school by bringing them back through Literacy Center Programs (Structured Learning) and the

Districts success as many of these students go on to college. Students came to testify at the meeting about the programs success.

More information about this program may be found athttp://roberts.salkeiz.k12.or.us/.

To monitor the efforts that the District is making towards the Districts vision, the District measures progress to see how students are

growing in learning. Multiple sources of data check points and tests scores are utilized to give educators a much clearer picture of

student learning and to help them create classrooms that foster growth. Detailed information about the Districts goals and objectives

may be found in the Organizational Section of this document.

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http://roberts.salkeiz.k12.or.us/http://roberts.salkeiz.k12.or.us/http://roberts.salkeiz.k12.or.us/http://roberts.salkeiz.k12.or.us/


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See the chart below that shows state and local funding as of December 2010 for Oregon government entities including education.

Source- Marion County Assessors Office

District formula revenue is the school district portion of the State School Fund (General Purpose Grant) plus other sources.

= + + + +DistrictFormulaRevenue(StateandLocal)

GeneralPurposeGrant

TransportationGrant

HighCostDisabilityGrant

FacilityGrant

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On April 22, 2011, the Governor approved legislation for funding public education for the 2011-13 biennium. The SSF was based onthe following allotments:

Fiscal Year 2011-12 Fiscal Year 2012-13 2011-13 Biennium

$2,867,830,000 $2,842,830,000 $5,710,660,000

For fiscal year 2011-12 school districts also received $125,000,000 from the State Education Stability Fund to be used to supportsmaller class sizes, and for enhancement of learning opportunities, including but not limited to, increasing the number of school daysfor the 11-12 year. See the graphs below comparing actual revenue for 2010-11, and budgeted revenue for 2011-12 and 2012-13.

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Note that the Districts total budget is declining due to the utilization of funding generated by bond sales for new school constructionover the last two bienniums.

Property tax revenue has increased slightly. Property tax rates differ across Oregon and depend on the tax rate approved by localvoters and the limits established by the Oregon Constitution. The District receives property tax revenue from both Marion and Polkcounties, the largest amount from Marion County. The total tax rate on any particular property is calculated by adding all the localtaxing district rates in the area. The total tax rate is then multiplied by the Assessed Value of the property. The assessed value is thelower of the real market value or the maximum assessed value. While in the Salem metro area the property values have decreased withthe economic downturn, they have not decreased enough to lower total property taxes assessed year after year. The graphs above andthe table below show increasing revenue from property taxes. As individuals default on mortgages prior year property taxes arecollectable, and the District is collecting slightly higher taxes on bond levies as principal and interest comes due.

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The Oregon Economic Forecast released in March 2012 by the Department of Revenue is indicating very slow growth in general fundrevenue over the next few years. Oregon has experienced long-term unemployment, causing the state to become less competitive.With a slow recovery rate from the recession, state revenue from income taxes is expected to grow slowly through 2015. The reportindicates that Substantial risks, concentrated to the downside, remain outstanding and may derail the fragile recovery. Even avoiding

these downside risks, the rate of growth is still expected to remain average to slightly below average. For the 2013-15 biennium atotal of $6.5 billion is estimated for K-12 education, if legislators vote to allot the same share of revenue, 39 % that K-12 has receivedin the past. The District has taken a conservative approach to this increase in revenue given the fragility of the economy that issuggested in the Oregon Economic Forecast. The District will need to continue to fund its retirement liability for the Oregon PublicEmployees Retirement System (PERS) which will be considerable and a continuing drain on future resources. PERS is a complicatedsystem consisting of three tiers of retirees. The plan is basically a defined- benefit plan for all three tiers. The mandated calculation ofthe guaranteed benefits for Tier One employees has created a large unfunded liability for state agencies. Additional informationregarding Oregon School Funding may be found on the Confederation of Oregon School Administrators website:http://www.cosa.k12.or.us/, and information about the Oregon PERS system may be located onhttp://www.oregon.gov/PERS/.

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STUDENT ENROLLMENT

Oregon school district budgets for the General Fund state funding are prepared on the basis of weighted student counts. Weighted

Student Counts are the sum of the General Education Average Daily Membership (ADM) count plus additional student weights basedon special needs. ADM is the average number of full-time students enrolled in district schools and programs every day over the courseof the entire school year compared to student enrollment which would be a snapshot on a given day of the headcount of all studentsenrolled. The graph below shows the ADM count for Salem Keizer School District beginning in the fiscal year 1989-90.

ADM for the district continued to increase until 2008-09 and shows another slight rise for 2011-12. This is consistent with theOregon Economic Forecast referenced above. That report indicates that prior to the recent economic downturn Oregon had significantpopulation growth from migration from other areas. This is no longer the case, and the population is aging with fewer school-aged

children. Last year, the Oregon State Legislature passed a new open enrollment law which enables school districts to increase theirenrollment by accepting student transfers from other districts. Prior to the new law, both districts had to agree to the transfer. Salem-

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ALLOCATION OF FINANCIAL AND PERSONNEL RESOURCES AND PERFORMANCE RESULTS

During this time of budget reductions, the District continues to focus resources on raising its graduation rates using programmatic

strategies.

In 2011, Oregon Senate Bill 909 created the Oregon Education Investment Board (OEIB). It is chaired by the Governor, and its focusis to oversee an effort to create a unified system for investing in and delivering public education from early childhood through highschool and college. In the Spring of this year the Governor worked with the OEIB to create Achievement Compacts to essentiallyreplace the provisions of the No Child Left Behind Act for the state. Oregon applied for a waiver for No Child Left Behind in January2012. The OEIB will enter into Achievement Compacts with the governing bodies of each Oregon public education entity: the OregonUniversity System, Oregon Health and Science University, community colleges, and K-12 school districts. The mission of theAchievement Compacts is that by 2025:

1. At least 40 percent of adult Oregonians have earned a bachelors degree or higher2. At least 40 percent of adult Oregonians have earned an associates degree or post-secondary credential as their highest level of

educational attainment, and3. Ensure that the remaining 20 percent or less of all adult Oregonians have earned a high school diploma.

Every Oregon School Board will receive a compact from the OEIB by April 2, 2012. In the compact, the School District must specifyachievement targets for students in 10 groups which have struggled in Oregon schools including minority groups, students withdisabilities, talented and gifted students and student learning English as a second language. Targets must also be set for all of thedistricts students as a whole. Nine milestones will be measured with differing targets for each category of students. They are asfollows:

1. Pass third grade reading test2. Pass third grade math test3. Miss fewer than 18 days of sixth grade4. Earn six credits during ninth grade5. Earn nine college credits during high school6. Graduate high school in four years7. Graduate high school in five years8. Graduate high school or earn a lower-tier credential, such as a GED or certificate9. Enter college within a year of high school graduation

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15% of English Language Students reached level 5 of the English Language Proficiency Assessment, level 5 representingfluency compared to the state standard of 14%, and

Graduation rates continue to increase.See the chart below for District Graduation rates. This is evidence that the District is beginning to achieve its vision through theapplication of its resources. For 2010-11, the District exceeded state rates. Note that for the past three years, the District has exceededstate rates for English Language Learners.

The chart below shows the same statistics for 2010-11 compared with similar sized districts. Salem-Keizer exhibits strong resultscompared to more economically affluent areas and excels with English Language Learners. The comparable districts include PortlandPublic Schools, the largest Oregon district. Beaverton Public Schools is the third largest, and Hillsboro School District is the fourthlargest state school district.

Year SK State SK State SK State200809 62.79% 66.20% 52.30% 51.40% 40.69% 42.40%

200910 65.70% 66.40% 52.33% 49.70% 40.15% 41.80%

201011 69.65% 67.20% 60.57% 51.60% 43.49% 41.90%

AllStudents LimitedEnglishProficie nt Spe cialEducation

SalemKeizer(SK)GraduationRates ComparisonwiththeState

Note: Fouryearcohortgraduationrate.Thisratetracksstudentsfromthefalloftheir9th gradeyeartothe

endoftheirfourthyearinhighschool.Priorto200809, OregonusedtheNCESratewhichisnotcomparable.

District

Portland

SK

Beaverton

Hillsboro

State

SalemKeizer(SK)GraduationRates201011 ComparisonwithSimilarSizeDistricts

All

Students Limited

English

Profi ci ent Spe cial

Education

OregonDepartmentofEducationwebsite

69.65% 60.57% 43.49%

76.82% 58.96% 53.40%

78.20% 63.06% 54.15%

58.53% 38.34% 28.27%

67.20% 51.60% 41.90%

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The chart below illustrates additional statistical data for the same school districts. It shows that Salem-Keizer has the greatestpercentage of students who are English Language Learners and who are on the Free and Reduced Meal Program. Salem-Keizer andPortland Public Schools have the same percentage of Special Education students. Salem-Keizer is making good progress consideringits number of students classified in poverty and as English Language Learners.

Despite the drastic staffing budget cuts that the district took for 2011-12, the District continues to focus efforts on student achievementtaking future budget reductions in the future to least impact students. Below is a table showing actual District staffing levels for the

last ten years, and staffing levels for fiscal year 2011-12 as of March, 2012.

District

Portland

SK

Beaverton

Hillsboro

FreeandReducedMeal

Program

SalemKeizer(SK) ComparisonStudentPopulationswithSimilarSizeDistricts

45.00%

60.00%

38.00%

44.90%

Note: DataSourcesare DistrictwebsitesandOregonLive.EnrollmentincludescharterschoolsandSKenrollmentisasofMarch2012.

20,827 15.00% 13.70%

39,954 19.00% 14.00%

38,571 14.00% 12.00%

Enrollment LimitedEnglishProficie nt Spe cialEducation

47,288 9.00% 14.00%

Fiscal Year Licensed Classified Administrative Total FTE

2012 2,061 1,713 157 3,931

2011 2,417 1,844 160 4,421

2010 2,373 1,805 160 4,338

2009 2,458 1,772 159 4,389

2008 2,373 1,646 152 4,171

2007 2,269 1,516 147 3,932

2006 2,206 1,494 143 3,843

2005 2,156 1,467 135 3,758

2004 2,173 1,457 134 3,764

2003 2,107 1,409 136 3,652

2002 2,086 1,420 144 3,650

Source: District Payroll Records

**FTE does not include non-district employees of District sponsored public charter schools.

SALEM-KEIZER SCHOOL DISTRICT

LICENSED,CLASSIFIED AND ADMINISTRATIVE FULL-TIME

EMPLOYEES - STAFF LEVELS

Last Ten Fiscal Years Ended June 30, Projected for Fiscal 2012

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Actual academic outcomes for 2011-12 will determine whether the staffing budget reductions may have an impact on student

achievement.

Regarding our current teaching staff:

99.68% of teachers in Salem-Keizer are highly qualified as defined by the federal NCLB standard. On average, District teachers have 12 years of teaching experience. 1,599 of the Districts teachers have a masters degree or higher. 890 instructional assistants help in classrooms. The staff continues to grow professionally through development opportunities provided by the District.

For the 2011-12 fiscal year-end, the District increased class size because of staffing cuts. However, with the additional statesubaccount funding provided that year, the district did not have to decrease staff above the cuts implemented. The District was able toretain approximately 110 licensed FTE for that year and did not further increase class sizes. For 2012-13, the District has not budgeted

any increases in class size.

It is the Districts intent to support student learning and not reduce student programmatic instruction as much as possible given

reductions in K-12 education funding as future budget reductions are considered.

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CHANGES IN DEBT

In March, 2009, the District issued general obligation bonds for $178,715,187 to construct four new schools and renovate existingfacilities. In December 2009, the District issued general obligation bonds for $31,760, 000 and in June, 2011, the District issued

general obligation bonds for $31,620,000 to construct and renovate existing facilities. These issues were to fulfill the $242,100,000authorization approved by voters in November, 2008.

General obligation bonds are direct obligations and pledge the full faith and credit of the District. The District issues generalobligation bonds to provide funds for the acquisition and construction of District school facilities.

The School District participated as one of twenty Oregon school districts and education service districts in issuing limited tax pensionbonds in 2002 and 2004. The proceeds were used to finance a portion of the estimated unfunded actuarial liability of each participatingdistrict with the Oregon Public Employees Retirement System (PERS). The Oregon School Boards Association (OSBA) sponsored

this pooled limited tax pension bond program. OSBA does not have a financial obligation in connection with the bonds issued underthe program. Except for the payment of its pension bond payments and additional charges when due, each participating district has noobligation or liability to any other participating districts pension bond or liabilities to PERS. The District records the amountsdeposited with PERS as a prepayment on its actuarial obligation, and accounts for the payment of principal, interest and theamortization of the prepayment as pension expense over the life of the bonds. The District anticipates that the total costs of financingthe Districts actuarial obligation in this way will result in a significant savings to the District when compared to paying for such costsin additional contribution rates to PERS.

The District issued $114,614,763 Limited Tax Pension Obligation, Series 2002 in October 2002 at interest rates ranging from 4.82%to 6.1% payable through June 2028. In August 2011, the District refinanced $7,640,000 of the 2002 bonds, that were due in 2021, fora new issue in the amount of $7,820,000 with a lower interest rate of 4.115% which is anticipated to save the District $.54 millionoverall. In February of 2004, the District issued $88,815,000 Limited Tax Pension Obligation, Series 2004 (Federally Taxable). Thesebonds are payable semiannually at rates from 4.4% to 5.53%.

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The schedule below shows the districts outstanding debt expected as of June 30, 2012 and the debt service payment required for thebudget for 2012-13.

Issue Date

Original

Issue

Outstanding

July 1, 2011 Issued

Amortized

Premium

Matured and

Redeemed

Oustanding

June 30, 2012

Amounts

Due in One

Year Fiscal

(2012-13)

General Obligation

March 1, 2004 149,625,000$ 78,515,000$ -$ -$ 10,765,000$ 67,750,000$ 11,910,000$

April 2, 2008 21,575,000 12,995,000 - - 4,140,000 8,855,000 4,335,000

March 16, 2009 178,715,187 175,015,187 - - 4,970,000 170,045,187 5,515,000

Dec. 16, 2009 31,760,000 31,760,000 - - - 31,760,000 -

June 30, 2011 31,620,000 31,620,000 - - 1,220,000 30,400,000 1,040,000

413,295,187 329,905,187 - - 21,095,000 308,810,187 22,800,000

Pension Bonds

Oct. 31, 2002 * 106,974,763 105,640,944 - - 9,578,750 96,062,194 2,054,505

Feb. 19, 2004 88,815,000 87,670,000 - - 1,005,000 86,665,000 1,360,000

Aug. 11, 2011 * 7,820,000 - 7,820,000 - - 7,820,000 -

193,310,944 7,820,000 - 10,583,750 190,547,194 3,414,505

Total Bonds 523,216,131 7,820,000 - 31,678,750 499,357,381 26,214,505

Total Interest Due on all issues for 2012-13 19,014,593

Total Debt Serv ice for 2012-13 Budget 45,229,098

* Refinanced a portion of the Oct. 31, 2002 PERS Bonds ($7,640,000) on Aug 11, 2011. Original Oct. 2002 issue was $114,614,763

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Beginning Balance: Projected ending fund balance for 2011-12 of $27.3 million used as a resource. General Inflation: 1% for non-salary expenditures. Public Employee Retirement System (PERS): 16.8% employer rate plus 6% district pickup. There is no change in this rate

(budget to budget); however an increase is expected for the next biennium.

Operating Expenses: COLA increase of 2% for classified, classified confidential, administrators and 3.9% for licensedpersonnel before budget reductions applied.

The District is estimating a $20.5 million dollar shortfall in the General Fund Budget. For this budget, the District is attempting toavoid cuts in staff. To balance the budget, the following reductions are recommended and incorporated in this budget:

1. Reduce reserves (Ending Fund Balance/Contingency) $7.2 million2. Reduction in associated payroll costs- unemployment costs and other costs related to staff

reductions less than anticipated $3.6 million3. Closure of two small schools $.8 million4. Supplies and Materials Reduction $.5 million5. Transportation reduction $.3 million6. Reduction in contracted security $.1 million7.

Employee concessions $8 millionOther Funds

2012-13 budgets for other funds were built on expected resources and expenses needed to maintain current operational levels and forplanning approved by the School Board and/or Executive Cabinet. Economic factors are incorporated into these budgets such as debtservice rates.

Other funds include the following:

Debt Service Funds: The District has two Debt Service Funds: Debt Service for General Obligation (GO) Bonds, and DebtService for its PERS bonds. Sources of revenue for the Debt Service GO Bonds are property taxes set to fund the debtobligation for the current year. Revenue for the PERS Debt Service Fund is accumulated from charges to the payroll of theDistrict to fund the debt obligations due on these bonds. Both of these funds are restricted for use of funds for debt payment.

Capital Projects Fund: This fund is restricted for use on capital projects of the District funded by voter approved bond issues.At the beginning of 12-13, two new schools built by the use of the proceeds of this fund will be ready to open. The School

Board will need to approve new projects for any remaining funds.

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Special Revenue Funds: These funds include self-supporting funds and are generally restricted monies to be utilized asspecified by the source of the funds. Salem-Keizer has five special revenue funds: Food Services, Asset Replacement, Fee-

Based Programs, Grants, and the Energy Conservation Fund.

Enterprise Funds: The District has one Enterprise Fund. Enterprise funds are self-supporting and receive revenue through usercharges and fees. The difference between these types of funds and Internal Service Funds is that the charges are to entities

outside of the District. The District maintains a fund for Transportation, Central Stores, Reprographics and Facilities.

Internal Service Funds: These are called proprietary funds. Their source of revenue is charges to other district funds forservices that are provided through these funds to the district. The District has three internal service funds: a Risk Fund (the

district is self-insured), a Service Fund (utilized by Transportation, Central Stores and Reprographics), and a fund for CharterSchools (Charter Schools sponsored by the District).

Trust Funds: The District has one Trust Fund. A small scholarship fund from which, under the provisions of the trust, thedistrict may grant scholarships to students who meet the trust qualifications.

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2012-13 DISTRICT BUDGET - FINANCIAL SUMMARY

Total $578,990,853

* General Fund: This is the main operating budget for the school district. It specifies how Salem-Keizer plans to allocate funds for one school year toward instructional programs

and services that help our students be successful learners. More information on the General Fund is provided in the following pages of the budget document.

** Restricted Funds: This is money the school district manages that may only be spent on certain items as specified by law or the source of the revenue. More information on these

restricted funds is provided following the General Fund section.

GeneralFund*, $343,423,734,59%

GeneralObligationDebtServiceFund**, $32,285,206,6%

PERSDebtServiceFund**,$17,473,784,3%

CapitalProjectsFund**,$87,940,665,15%

SpecialRevenueFunds**,$75,234,150,13%

EnterpriseFund**,$480,000,


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BUDGET COMMITTEE MEMBERS

Fiscal Year 2012-13

The Budget Committee is a 14-member group consisting of the Salem-Keizer School Board and seven appointed citizen volunteers. Budget Committee

appointees serve three-year terms and may apply for additional service. The committee is an advisory group established by statute to make budgetary

recommendations to the school board.

Citizen Members Term Expiration District School Board Members

Annalivia Palazzo-Angulo June 30, 2012 Chris Brantley Chair

Lloyd Chapman June 30, 2014 Jeff Faville

Ron Daniels June 30, 2012 Jim Green

Todd Edgar June 30, 2013 Ron Jones

Doug Kosty June 30, 2014 Rick Kimball

Betty PataccoliViceChair June 30, 2014 Chuck LeeSusan Ray June 30, 2014 Nancy MacMorris-Adix

District Administrative StaffSandy Husk, Superintendent

Mary Cadez, Assistant Superintendent

Salam Noor, Assistant Superintendent

Michael Wolfe, Chief Operations Officer

Mary Paulson, Chief of Staff

Susan Dodd, Director, Finance

Susan Rieke-Smith, Director, Instructional Services

Jay Remy, Director, Community Relations & CommunicationsKelly Carlisle, Director, High School Education

Kristen Duus, Director, Technology & Information Services

Melissa Cole, Director, Middle School Education

Ron Speck, Director, Elementary Education

Meera Kreitzer, Director, Elementary Education

Ruth Gelbrich, Director, Student Services

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CONTACT INFORMATION

Business Services: 503-399-3036

Michael Wolfe, Chief Operations Officer ([email protected] ) Wendy Akins, Administrative Assistant 2 ([email protected] ) Susan Dodd, Director of Financial Services ([email protected] )

Communications: 503-399-3038

Karma Krause, Special Projects Facilitator ([email protected])

Budget Committee: 503-399-3036

Email ([email protected] )

Salem-Keizer Public Schools on the Web: www.salemkeizer.org

The Districts website has facts, publications, dates of events and news about Salem Keizer Schools as well as in-depth budgetinformation. The Budget is available on the District Website under Business Services.

A Budget Guide for Our Community:

This is a quick guide to the Districts budget. It provides an easy-to-understand overview of how Salem Keizer allocates money to

fund exceptional instructional programs for students. The guide is available online soon after the budget is adopted on the DistrictWebsite under Business Services.

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ORGANIZATION


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Organization

SALEM-KEIZER PUBLIC SCHOOLS DISTRICT 24J

MISSION AND GOALS

OurMission

Inpartnershipwiththecommunity,weensurethateachstudentwillhavetheessentialknowledge,skillsand

l attitudestobelearner,acontributingcitizenandaproductiveworkerinachangingandincreasinglydiverseworld.

StudentGoals

Wewillfocusalleffortstohelpeachstudentdevelopthenecessaryknowledgeandexperiencesto

Readandcommunicateeffectively; Thinkcriticallyandsolveproblems; Developapositiveselfconcept,respectforothersandhealthybehaviorpatterns; Workeffectivelyingroupsaswellasindividually; Developcreativityandshowappreciationforthearts; Demonstratecivic,globalandenvironmentalresponsibility; Recognizeandvaluediversityamongpeople; Andexhibittechnologicalliteracy.

ACHIEVEDTHOUGH

OrganizationEffectiveness

As

an

organization,

the

school

district

will

focusonstudentoutcomesandqualityofallservices;

bealearningorganizationthatcontinuouslyassessesandimproves;

haveahighlevelofteamworkandtrust;

involvepeopleinmakingdecisionsthataffectthem;

valueandcelebratediversityamongpeopleofallculturesandabilities;

refusetotolerateracism,discrimination,harassment,andprejudice;

continuetodevelopandsupportahighqualitystaff;

activelyseekandvalueinputfromthecommunity;

andprovideawelcoming, opendoorenvironmentforparents&community

ActivePartnershipsforLearning

Our

partnership

with

students,

families,

businesses

and

the

broader

communitywill

provideforthesafetyandwelfareofallchildren;

bedrivenbyacommitmenttopubliceducation;

focusonstudentneeds;

makefulluseofcommunityresourcesforlearning;

operatefromaspiritofmutualrespect,trustandinterdependence;

andencourageactiveparticipationintheeducationalprocessbystudents,

families,businesses;

andtheentirecommunity.

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A major district plan to support the mission is its Comprehensive K-12 Literacy Model.

Salem-Keizers literacy model reflects current research and best practices for teaching literacy. The District requires that all teachers, atall levels, in all content areas utilize this model as a foundation for instruction.

The model includes the following components and definitions to assist staff in its use:

Planning is carefully determining the educational purpose, the approaches, and the resources to be used in focused instruction,

interventions, and assessments.

Instruction is providing a variety of approaches and strategies in order for learning and understanding to occur.

Intervention is a systematic, focused, and differentiated approach for providing additional and graduated instruction for students whodemonstrate academic performance greatly above or below the expected level of achievement.

Assessment is both formally and informally collecting evidence of learning to be used in evaluation.

Evaluation is thoughtfully judging the evidence gathered from assessments for the purpose of making decisions regarding planning andinstruction.

Within these components, teachers use a variety of methods to increase student reading scores. These methods are shown on thediagram on the next page. More information about the Literacy Model may be found on the Districts website.

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28

A comprehensive chart of the Districts Strategic Plan to support the Districts Vision may be viewed on the next page.

Strategic Plan 2011-12Salem-Keizer


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Strategic Plan 2011 12Improve

Student Achievement

Increase the use of student data,gathered from our formativeassessment and data warehousesystems, to inform instruction.

An Effective Organization toSupport Student Achievement

Leadership Development

Public Engagement

Implement and eld test an evaluationtool to enhance employee effectivenessand performance.

Establish leadership teams within eachschool and department for shareddecision-making and accountability witha focus on student achievement.

Implement the plan to engage parentsand citizens that encourages them tocommit to actions that promote studentachievement at every level, and leads to

graduation for all students.

Vision: All students graduate and are prepared for a successful life.

Salem KeizerPublic Schools

(Revised 6.28.11)

Continue to align core standards,instructional strategies, andassessments into a coherent K-12instructional framework.

Continue to implement theComprehensive K-12 Literacy Modelacross all content areas, including theprogram model for English Language

Acquisition.

Continue to provide professionaldevelopment that offers quality andfocused opportunities, has long-

term sustainability, and providesimplementation strategies for all staffincluding instructional coaching andmentoring.

Continue to develop and implementdifferentiated instruction forall students, including plannedinterventions and supports.

Plan, design, and implement a residentteacher training program and learninglab in collaboration with our universitypartners.

Develop a capital investment programthat aligns support facilities with thedistricts mission and prioritizes capitalimprovement work for all facilities.

Continue to expand the QualityAssurance Model and implementstrategies to redesign service delivery

that aligns with district priorities andcurrent funding levels.

1.

7.

8.

9.

10.

11.

2.

3.

4.

5.

6.

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31


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L 5650 V i St SE S l 97306 418


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Lee 5650 Venice St. SE, Salem 97306 418Liberty 4871 Liberty Rd. S, Salem 97306 385McKinley 466 McGilchrist St. SE, Salem 97302 335

Middle Grove (T) 4950 Silverton Rd. NE, Salem 97305 320Miller 1650 6th Place SE, Salem 97317 489Morningside 3513 12

thSt. SE, Salem 97302 377

Myers 2160 Jewel St. NW, Salem 97304 419Pringle 5500 Reed Ln. SE, Salem 97306 636Richmond (T) 466 Richmond Ave. SE, Salem 97301 342Rosedale (To Close) 6974 Bates Rd. S, Salem 97306 161Salem Heights 3495 Liberty Rd. S, Salem 97302 277

Schirle 4875 Justice Way S, Salem 97302 473Scott (T) 4700 Arizona Ave. NE, Salem 97305 603Sumpter 525 Rockwood St. SE, Salem 97306 510Swegle (T) 4485 Market St. NE, Salem 97301 591Washington (T) 3165 Lansing Ave. NE, Salem 97301 427Weddle (T) 1825 Alder Dr. NE, Keizer 97303 410Wright 4060 Lone Oak Rd. SE, Salem 97302 448Yoshikai (T) 4900 Jade St. NE, Salem 97305 500

Total Elementary ADM 18,434

* For estimating ADM for the budget, it was unknown at the time whether the District would close two schools and what new school boundaries would be. Forbudgeting purposes, the total ADM is used to determine funding and is estimated to be the same with new schools opening and with the closures.

Middle Schools (6-8) ADM

Claggett Creek (T) 1810 Alder Dr. NE, Keizer 97303 930Crossler 1155 Davis Rd. S, Salem 97306 757Houck (T) 1155 Connecticut SE, Salem 97317 1,002Judson 4512 Jones Rd. SE, Salem 97302 973

Leslie 3850 Pringle Rd. SE, Salem 97302 778

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Parrish (T) 802 Capitol St NE Salem 97301 680


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Parrish (T) 802 Capitol St. NE, Salem 97301 680Stephens (T) 4962 Hayesville Dr. NE, Salem 97305 1,018Straub 1920 Wilmington Ave. NW, Salem 97304 692

Waldo (T) 2805 Lansing Ave. NE, Salem 97301 900Walker 1075 8th St. NW, Salem 97304 504Whiteaker 1605 Lockhaven Dr. NE Salem 795

Total Middle School ADM 9,029

High Schools (9-12) ADM

Early College (Alt Ed) 4071 Winema Pl. NE Bldg. 50, Salem 97305 209McKay (T) 2440 Lancaster Dr. NE, Salem 97305 1,679McNary 595 Chemawa Rd. N, Salem 97303 1,993North Salem (T) 765 14th St. NE, Salem 97301 1,791Roberts (Alt Ed) 3620 State St., Salem 97301 232 *South Salem 1910 Church St. SE 97302 1,968

Sprague 2373 Kuebler Blvd. S, Salem 97302 1,708West Salem 1776 Titan Dr. NW, Salem 97304 1,758SK Online, Credit Link, andSophomore Connect Various 120

Total High School ADM 11,458

*Roberts High School ADM includes some students classified as Middle School Students

Other Alternative Instruction ADM

Transition Programs andother Programs- mainlySpecial Education Various 305

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Charter Schools ADM


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Charter Schools ADM

District Sponsored

Optimum Learning 7905 June Reid Pl., Keizer 97303 131Environment (Elementary)Valley Inquiry (Elementary) 999-A Locust St. NE Salem 97301 165Howard St. (Middle) 710 Howard St. SE, Salem 97302 157JGEMS (Middle) 999-B Locust St. NE Salem 97301 94

Total District Sponsored Charter Schools 547

State Sponsored

BPA (Elementary) 1687 Summer St NE, Salem 97301 136 *

*Not considered District Students

Total District Estimated ADM for 2012-13 39,773

School Building Average Ages:

Elementary: 47Middle: 34High Schools: 49

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STAFF


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STAFF

The quality of the Districts educational program is largely dependent upon the quality of its greatest resource-its employees. Payrolland associated payroll costs exceed 86% of the General Fund Budget.

Salem-Keizer staff members are labeled as Licensed, Classified, Confidential, and Administrative. Licensed staff members are generallyteachers who possess a state license or credential. Confidential employees perform high level tasks in support roles with littlesupervision. Sometimes their work may be termed confidential if they are working with the Districts employee associations.Classified staff functions in support roles both in the classroom and, in some cases, supervisory positions. Within these categories, theDistrict categorizes all employees as Licensed, Classified and Supervisory. View the definitions and percentage of the total staff below.

The percentages are based on (FTE) full time equivalents.

Licensed Staff: (52.42%)

Licensed staff consists of teachers and counselors. 99.68 percent of them are highly qualified as defined by the federal No Child LeftBehind Standard. The Districts Department of Human Resources ensures that all teachers employed within the district who teach in thecore academic areas meet the requirements of the Federal No Child Left Behind Act and maintain documentation of each teachershighly qualified status. In hard to fill positions Human Resources staff works with teachers individually to make and successfullycomplete plans to become highly qualified.

Classified Staff: (43.58%)

Classified Staff consists of instructional assistants, custodians, bus drivers and clerical staff.

School-Based Supervisors: (2.82%)

These are principals, assistant principals and athletic directors.

District wide Supervisors: (1.18%)District wide supervisors consist of Cabinet-level directors, curriculum coordinators, supervisors for the departments such asTransportation, Custodial, Maintenance, Human Resources, Fiscal and Technology.

View the Organization Chart below which shows the Districts Departments and the Superintendents Cabinet Level Directors.

36

SCHOOL BOARD

EXECUTIVE ADMINISTRATIONSUPERINTENDENT

SalemKeizer Public SchoolsOrganization Chart


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Sandy Husk3993001

Community Relations & Communications*Jay Remy Director

3993038

Chief of Staff*Mary Paulson

3993001

Assistant Superintendent*Mary Cadez

3993061

Assistant Superintendent*Salam Noor

3993002

Chief Operations OfficerBusiness Services

*Michael Wolfe

3993036

Elementary Education*Ron Speck, Director

*Meera Kreitzer, Director3992632

43 Elementary Schools

2 Charter Schools

Career Technical Education

Instructional Services*Sue RiekeSmith, Director

3993258

English LanguageAcquisition

Title 1

Migrant/ Indian EducationHomeless Program

Curriculum, Instruction& Assessment

3993075

CurriculumLibrary Media

TAG

Testing & Evaluation

Student RecordsFormative Assessment

System

Technology andInformation Services

*Kristen Duus, Director3993031

Systems and ProgrammingInfrastructure Support Field

Service SupportTechnology Support Center

Data Warehouse

High School Education*Kelly Carlisle, Director

3992636

6 High Schools2 Alternative High Schools

Alternative ProgramsDiscipline and Expulsion

Music & Theater Arts

Professional Development

Classified Mentor Program

Coach TrainingStaff Training

Title 1ANCLP Paraprofessional Compliance

Tuition Reimbursements

Risk Management

SafetyLoss Control

Liability/ Property InsuranceWorkers Compensation

Incident Reporting

Student Services*Ruth Gelbrich, Director

3993101

Special Education

Guidance & Counseling504 Coordination

Health ServicesPreK Programs

Mentor Project

Beginning Teacher Mentor ProgramAdministrator Mentoring

National Teacher Induction NetworkNTIN

Human Resources

Employee RelationsEmployee Staffing

Employee Benefits & CompensationRecruitment

Student TeachingAffirmative Action

ADA Compliance

Staff Quality

Class Project

Licensed Staff Evaluation

HQT Compliance

Middle School Education*Melissa Cole, Director

3992636

Middle Schools

Charter Schools

Charter SchoolDevelopment

Financial Services

3993021

AccountingBudget

Disbursements

PayrollPurchasing

Facilities & Planning

3993290

ConstructionCustodial

Maintenance & Operations

Planning & Real Property Service

Security

Transportation

Reprographics &Mail Services

Central Stores

20112012

*Cabinet memberRev, 3/23/2012

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recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures, and proceeds from


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general long-term debt and acquisitions under capital leases are reported as other financing sources.

The Districts budget is prepared utilizing the Governmental Fund Financial reporting method: the modified accrual basis of accounting.The budget does not include Agency Funds. Capital outlay expenditures are budgeted by major function in the governmental fund typesinstead of capital outlay. The resolution authorizing appropriations for each fund set the level by which expenditures cannot legallyexceed appropriations.

BUDGET POLICIES, PROCEDURES AND REGULATIONS

Most local governments in Oregon must prepare and adopt a budget. Only districts specifically exempted in law do not have to prepareand adopt a budget. Local budget law is found in the Oregon Revised Statute 294. The budget must be completed by June 30 th, the daybefore the start of the fiscal year or biennial budget period to which it relates.

The Oregon Legislature identified the purposes of local budget law in the Statute. It is designed to:

Establish standard procedures for preparing, presenting, and administering the budgets of Oregons local governments, Encourage citizen involvement in the preparation of the budget before its final adoption, Provide a method of estimating revenues, expenditures, and proposed taxes, and Institute a method for control of revenues and expenditures for the promotion of efficiency and economy in the expenditure of

public funds.

Many of the requirements in the law are designed to encourage citizen involvement. An overriding theme in the law is that public policydecisions are to be made openly in a public meeting. Citizens have the right to be there and to know what their local government intendsto do, before it happens.

The law requires that all local governments use uniform formats prescribed by the Department of Revenue in the preparation of theirbudget. This provides for consistency and ease of comparison between governmental entities.

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A th bli h i t b h ld d lib h b d d b h B d C i d id ddi i l


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Another public hearing must be held to deliberate on the budget approved by the Budget Committee and to consider any additionalpublic comments. The budget does not have to be adopted at the public hearing if the School Board wants to wait until closer to the end

of the fiscal year. However, the required resolutions, etc. must be adopted at a public meeting of the school Board by June 30.

After the budget is adopted, changes that modify the adopted budget can be made during the fiscal year. The legal definition andprocess for enacting a supplemental budget can be found in OAR 150-294.480. A supplemental budget can be prepared when:

An occurrence or condition that was not known at the time the adopted budget was prepared requires a change in financialplanning or requires prompt action.

Money that was not anticipated when the adopted budget was prepared is made available by another unit or federal, state or localgovernment.

A request for services or facilities is received, the cost of which will be paid for by a private individual, corporation, or anothergovernment unit and was not known at the time the adopted budget was prepared.

Property taxes are received in an amount greater than the amount estimated at the time the budget was adopted and thedifferences in resources will significantly affect the level of service the local government can provide.

When the estimated expenditures in the supplemental budget are 10 percent or less than the expenditures of the annual orbiennial budget fund being adjusted, the governing body may adopt the supplemental budget at one of its regular meetings. Fundexpenditures do not include unappropriated ending fund balance, inter-fund transfers, or contingency amounts.

BUDGET DEVELOPMENT PROCESS

The Districts Budget Committee plays a key role in the development and approval of the budget. The Budget Committee is composedof the seven elected School Board members and an equal number of citizen members appointed by the Board. As part of the budgetreview and approval process, the Budget Committee holds public meetings at which citizens of the community are invited to givetestimony on the Proposed Budget before it is approved by the Committee. Once the Budget Committee approves the Proposed Budget,the budget is designated as the Approved Budget. The Approved Budget is forwarded to the School Board for final approval as the

Adopted Budget.

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With information gathered and approval by Cabinet, the district budget team prepares the Districts Proposed Budget for theSuperintendent to submit to the District Budget Committee for review and approval


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Superintendent to submit to the District Budget Committee for review and approval.

Last year, the District was aware that a shortfall would occur for the 2012-13 budget because of decreasing state funding levels for K-12. These levels are not enough to meet contractual obligations of Association Contracts and mandated Public Employee RetirementSystem (PERS) increases for the states unfunded actuarial liability. In a series of meetings with the Budget Committee beginning in thefall of 2011, the Superintendent asked the Districts Level Directors to give presentations to the Budget Committee detailing outacademic and support goals. They discussed the ongoing work and completed projects of each area in context with the goals to give theBudget Committee a better understanding of district operations to assist them in making the difficult decisions to approve program cutsas necessary. The Superintendent presented her budget message with this Proposed Budget on April 3, 2012. The Budget Committeewill hold public meetings to receive testimony on the Proposed Budget and to approve a budget for the School Board.

Following approval of a budget, the School Board will hold a public hearing. The purpose of this hearing is to provide the citizens of thecommunity an opportunity to give testimony on the budget approved by the Budget Committee before it is adopted by the School Board.Upon School Board approval, the Approved Budget becomes the Districts Adopted Budget.

See below for the Districts budget timeline.

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BUDGET ADMINISTRATION AND MANAGEMENT


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The Districts Financial Services Department monitors the budget and manages it under Oregon Budget Law, specifically OregonRevised Statute 294, and utilizes the guidance of the Oregon Department of Revenue and the Oregon Local Budgeting Manual.Departments monitor their budget monthly to ensure that overspending is not occurring.

FUNDS AND CLASSIFICATION OF REVENUE AND EXPENDITURES

The District utilizes the accounting structure promulgated by the Oregon Department of Education which is similar to those used byother state and local governmental units.

The fund types that the district uses are categorized as follows:

Governmental Funds

100 General Fund200 Special Revenue Funds300 Debt Service Funds400 Capital Project Funds

Proprietary Funds

500 Enterprise Funds600 Internal Service Funds

Fiduciary Fund

700 Trust and Agency Funds

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The District has the following specific funds:


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101 and 102 - General Fund: This is the primary operating fund of the District. Financial transactions are recorded in this fund thatrelate to all activities for which specific types of funds are not required. The General Fund is unrestricted.

214-242 - Special Revenue Funds: These are for dedicated sources of revenue such as grants and fee related funds. District funds inthis category include ASB accounts, food service, asset replacement, grants and energy conservation funding from PGE. These fundsare considered restricted.

307-308 - Debt Service Funds: These funds are dedicated to the pay-down of District Debt. They include a fund for General Obligation

Bond Debt and for the PERS Bond Debt. These funds are categorized as restricted and assigned for future use.

415-417 - Capital Projects Funds: The District tracks General Obligation Funds as they are used for specific construction projects.These funds were set up as bonds were issued. They are considered restricted funds.

501 - Enterprise Fund: These funds are self-supporting from user charges and fees to other entities. The District utilizes this fund forits transportation, facilities, and central stores operations to track outside activity. This funding is restricted.

604-695 - Internal Service Funds: Internal Service Funds are utilized for charges to other areas of the District. The District has a fundfor its sponsored charter schools, a risk management fund for its self-insured programs, and a service fund which accounts for in-housetransactions for its transportation and central stores operations. This funding is restricted.

712-713 - Fiduciary Funds: The District has two basic funds in this category: one for its Agency Accounts (generally Parent TeacherAssociations) which the district acts as a fiduciary agent for, and one scholarship fund which is considered a Trust Fund. The District isonly required to prepare a budget for the Trust Fund in the category. This funding is restricted.

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Revenues and Expenditures


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The two categories of transactions which are budgeted in these funds are Revenues and Expenditures.

In the budget, the District is required by state law to show revenues by the following sources:

1000 - Local Sources2000 - Intermediate Sources3000 - State Sources4000 - Federal Sources5000 - Other Sources

In the budget, the District is required by state law to show expenditures by the following functions within which are sub functions:

1000 - Instruction2000 - Support Services3000 - Enterprise and Community Services4000 - Facilities Acquisition and Construction5000 - Other Uses (e.g. Debt Service)

6000 - Contingency7000 - Unappropriated Ending fund Balance

The Districts budget breaks out expenses by Object as proscribed by the Oregon Department of Education. The objects are as follows:

100 - Salaries200 - Associated Payroll Costs300 - Purchased Services

400 - Supplies and Materials500 - Capital Outlay600 - Other Objects700 - Transfers800 - Other Uses of Funds

For more information regarding accounting for the budget, the Program Budgeting and Accounting Manual may be referenced on theOregon Department of Education website.

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GENERAL FUND

Table of Contents


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ab e o Co te ts

GENERAL FUND

Overview 48

Resources Ten-Year Overview of Funding Sources 49

Where Does the Money Come From? 2011-12 and 2012-13 50

Summary of Resources 51

Estimated Budget Resources for Fiscal Year 2012-13 and Comparison 52 - 57

Requirements General Fund Allocating the Money 58

Summary of Requirements 59 - 60

Instruction 61 - 77

Support Services 78 - 106

Facilities Acquisition and Construction 107 - 108

Other Uses 109Contingency 110

Other Requirements Summary of Budget by Object Category 111 - 114

FTE Staff Information 115

Summary of FTE and Salary Budget 116

FTE Comparison, By Program within State Code 117 - 123


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2012-13 PROPOSED GENERAL FUND

$343,423,734


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Chart

goeshere

, ,

The General Fund is the District's main operating budget. The graph on this page shows the General Fund in relation to all the fund accounts managed bySalem-Keizer. The General Fund is an unrestricted account. More information on this fund account is provided in the following pages.

Revenue (Resources): The majority of themoney that makes up the General Fund comes

from State sources, such as the State School

Fund and the Common School fund. This

source of money is mainly supplied by the

State's income tax revenue and the State's

lottery system. More information on where

the money comes from is provided in the next

section.

Expenditures (Requirements): The GeneralFund is our main operating account. It pays

for instruction of students, our schools, andgeneral operations. Our primary mission is

the education of children, and most of our

budget goes to pay for teachers, classroomsand services to students. More information on

how the General Fund was allocated isprovided in the expenditure section following

the revenue section.

The following budget data is compiled and formatted in accordance with the Oregon Department of Education's Program Budget and Accounting Manual and local budget law. Adescription of the classification and sub-classification categories is provided for the reader's information. Additional supporting documentation and information is available at theDistrict's Administration Building, Office of Business Services, 2450 Lancaster Drive NE, Suite #220, Salem, Oregon.

General Fund: 59% of all District Funds

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GGEENNEERRAALLFFUUNNDDRREESSOOUURRCCEESS((RREEVVEENNUUEE))


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201213GENERALFUND:

TenYearOverviewofFundingSourcesThis graph shows a ten-year overview of where Salem-Keizer's funding has come from that makes up the General Fund (operating budget). The

majority of funds come from State sources, such as the State School Fund. In 2002-03, the State went through an economic recession and the

f h S i bli d i d d ll S f di l l d d S f di f


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$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0304 0405 0506 0607 0708 0809 0910 1011 1112 1213

BeginningBalance

Federal/Other

State

Intermediate

Local

amount from the State sources given to public education started to go down as overall State funding levels decreased. State funding grew from

2004-2009 and then was essentially flat through 2009-2012 if ARRA funding from 2009-11 and the state sub-account from 2011-12 is included.There is no increase for 2012-13. In order to balance the budget, Salem-Keizer had to fill the gap in funding by making reductions to services,

putting a hold on spending and stretching resources further. The graph below shows actual resources for all years except 2011-12 and 2012-13,

which show budgeted amounts.

49

2012-13 Proposed General Fund

WHEREDOESTHEMONEYCOMEFROM?

LastYear: 201112 ThisYear:201213


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StateSources

70.23%

CurrentYear

Taxes

18.08%

Other

6.54%

Intermediate

Sources

3.33%

OtherLocal

1.74%

Federal

Sources

0.08%

StateSources

68.72%

CurrentYear

Taxes

18.89%

Other

7.95%

IntermediateSources

3.54%

OtherLocal

0.81%Federal

Sources

0.09%

State Sources - State School Fund and the Common School Fund.

Current Year Taxes - Property Taxes the District is allowed to collect under Measures 5 and 47 restrictions.

Other - Beginning fund balance and inter-fund transfers.

Federal Sources - Federal forest fees and temporary ARRA - funded grants for education.

Intermediate Sources - Flow through dollars from the Willamette ESD and county school funds.

Other Local - Fees charged to grants, tuition from other school districts, interest earned on investments.

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B d t B d t N t Y 2012 13

School District 24J/32, Marion/Polk Counties, Oregon

2012-13 Proposed BudgetGeneral Fund

Summary of General Fund - Operations Resources


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Budget Budget Next Year 2012-13This Year

Account Code and Description 2011-12 Proposed Approved Adopted

1000 - REVENUE FROM LOCAL SOURCES

Current Year Taxes, Net of Measures #5 and #47 Reduction, Discounts and Uncollectibles 61,655,615$ 62,149,347$ -$ -$

Prior Year's Taxes, Net of Accruals 3,025,000 2,737,743 - -

Other Local Revenue 2,908,000 2,786,000 - -

TOTAL LOCAL SOURCES 67,588,615$ 67,673,090$ -$ -$

2000 - REVENUE FROM INTERMEDIATE SOURCES

Unrestricted Revenue 69,000$ 69,000$ -$ -$

Restricted Revenue 11,286,562 12,078,664 - -

TOTAL INTERMEDIATE SOURCES 11,355,562$ 12,147,664$ -$ -$

3000 - REVENUE FROM STATE SOURCES

Unrestricted Grants-In-Aid 231,061,592$ 236,002,980$ -$ -$

Restricted Grants-In-Aid 8,395,508 - - -

TOTAL STATE SOURCES 239,457,100$ 236,002,980$ -$ -$

4000 - REVENUE FROM FEDERAL SOURCES

Revenue from Federal Sources 262,294$ 300,000$ -$ -$

TOTAL FEDERAL SOURCES 262,294$ 300,000$ -$ -$

5000 - OTHER SOURCES

Interfund Transfers 1$ 2$ -$ -$

Budgeted Beginning Fund Balance 22,306,555 27,299,998 - -

TOTAL OTHER SOURCES 22,306,556$ 27,300,000$ -$ -$

TOTAL GENERAL FUND - OPERATIONS RESOURCES 340,970,127$ 343,423,734$ -$ -$

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BudgetPrior Years' Actuals Budget Next Year 2012-13


2012-13 Proposed General Fund Budget

Estimated Budget Resources for Fiscal Year and Comparison


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Budget

2nd Year 1st Year This Year2009-10 2010-11 2011-12 Proposed Approved Adopted

Prior Years Actuals Budget Next Year 2012 13

Account Code and Description

1300 - TuitionMoney received from students, parents, governmental agencies, or other districts for educational services provided by the District.

1312 Tuition from Other Districts 193,653$ 111,825$ 143,000$ 122,000$

Total Tuition 193,653$ 111,825$ 143,000$ 122,000$ -$ -$

1500 - Earnings on Investments

1510 Interest on Investments 751,603$ 609,778$ 620,000$ 335,000$

Total Interest on Investments 751,603$ 609,778$ 620,000$ 335,000$ -$ -$

1700 - Co-curricular ActivitiesRevenue from school-sponsored activities.

1740 Fees 68,700$ 73,232$ 70,000$ 70,000$

Total Co-curricular Activities 68,700$ 73,232$ 70,000$ 70,000$ -$ -$

1900 - Other Revenue From Local Sources

1910 Rentals 513,961$ 419,680$ 500,000$ 304,000$

1920 Contributions from Private Sources - 20,294 - 25,0001943 Services Provided to Charter Schools 157,825 168,226 170,000 250,0001960 Recovery of Prior Year Expenditures 50,001 188,874 50,000 75,0001980 Fee Charged to Grants 1,431,305 1,439,224 1,200,000 1,450,0001990 Miscellaneous 1,058,477 120,221 155,000 155,000

Total Other Revenue From Local Sources 3,211,569$ 2,356,519$ 2,075,000$ 2,259,000$ -$ -$

TOTAL REVENUE FROM LOCAL SOURCES 64,467,730$ 65,170,884$ 67,588,615$ 67,673,090$ -$ -$

District investment policy authorizes the temporary investment of available funds. The types of investments are regulated by state statutes and SchoolBoard policy.

Money received from the rental of equipment, gifts and donations, recovery of prior year expenditures and (as the name implies) any other source notpreviously listed.

53

Budget2nd Year 1st Year This Year

2009-10 2010-11 2011-12 Proposed Approved Adopted

Prior Years' Actuals Budget Next Year 2012-13Account Code and Description





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2000 - REVENUE FROM INTERMEDIATE SOURCES

2100 - Unrestricted Revenue

2101 County School Fund 68,507$ 117,868$ 69,000$ 69,000$

Total Unrestricted Revenue 68,507$ 117,868$ 69,000$ 69,000$ -$ -$

2200 - Restricted Revenue

2200 Speech, Hearing, Language Program 5,246,245$ 4,562,656$ 4,740,356$ 5,182,458$

2200 Structured Learning Program 2,997,854 2,807,830 2,708,775 2,708,775

2200 Behavioral Services Program 3,622,407 3,201,209 3,273,103 3,623,1032200 Other 624,553 450,812 564,328 564,328

Total Restricted Revenue 12,491,059$ 11,022,507$ 11,286,562$ 12,078,664$ -$ -$

TOTAL REVENUE FROM INTERMEDIATE SOURCES 12,559,566$ 11,140,375$ 11,355,562$ 12,147,664$ -$ -$

Revenues received as grants by the District which can be used for any legal purpose desired by the District without restriction. The State Legislature haschanged the County School Apportionment, a property tax levy previously designated for school districts, which reduced the available funding from thissource. Another source of revenue comes from various fines for illegal gambling, etc., collected by the state.

Revenue received as grants by the District which must be used for a categorical or specific purpose. If such money is not completely used by the District,it must be returned. This District's enrollment represents approximately 49% of Willamette Education Service District's (WESD) student population. For2011-12, the District contracted with the WESD through annual resolution programs to receive money in order to provide its own services rather than haveservices provided by the WESD. Effective July 1, 2012, the District withdrew from the WESD as allowed under Senate Bill 250. The District will provideits own special education services.

Revenues which come to the District from, or through intermediate sources, such as the Education Service District (ESD) or Marion or Polk Counties.

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BudgetPrior Years' Actuals Budget Next Year 2012-13





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2nd Year 1st Year This Year2009-10 2010-11 2011-12 Proposed Approved Adopted


3200 - Restricted Grants-In-AidRevenues received as grants by the District from state funds which must be used for a categorical or specific purpose.

3299 Restricted Grants -$ 997,273$ 8,395,508$ -$

Total Restricted Grants-In-Aid -$ 997,273$ 8,395,508$ -$ -$ -$

TOTAL REVENUE FROM STATE SOURCES 227,602,813$ 222,310,939$ 239,457,100$ 236,002,980$ -$ -$

4000 - REVENUE FROM FEDERAL SOURCESRevenue which comes to the District from the federal government.

4500 - State Fiscal Stabilization Fund (SFSF)

4500 - State Fiscal Stabilization Fund (SFSF) 11,059,510$ 12,857,969$ -$ -$

Total SFSF 11,059,510$ 12,857,969$ -$ -$ -$ -$

4800 - Revenue in Lieu of Taxes

4801 Federal Forest Fees 485,729$ 436,510$ 262,294$ 300,000$

Total Revenue in Lieu of Taxes 485,729$ 436,510$ 262,294$ 300,000$ -$ -$

TOTAL REVENUE FROM FEDERAL SOURCES 11,545,239$ 13,294,479$ 262,294$ 300,000$ -$ -$

Federal legislation historically required that revenue from the sale of timber off U.S. Forest Service lands (1908) and Oregon and California Railroad lands(1937) be shared with local governments. In 2000, the Secure Rural Schools and Community Self-Determination Act changed the revenue to stabilizefunding to rural communities due to significant declines in harvests on federal forest lands. The new formula is in effect more of a payment in lieu ofproperty tax and requires a frequent act by congress to reauthorize continued funding. Current authorization by Congress is through the 2012-13 year.This is distributed by the counties to the school districts.

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2009-10 2010-11 2011-12 Proposed Approved Adopted

Prior Years' Actuals Budget Next Year 2012-13Account Code and Description




5000 - OTHER SOURCES


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This category includes proceeds from debt, interfund transfers and beginning fund balance.

5200 - Interfund Transfers

5200 Transfer from Risk Management Fund - - 1 1

5200 Transfer from Asset Replacement Fund 5,600,000 13,308,291 - -

Total Interfund Transfers 5,600,000$ 13,308,291$ 1$ 1$ -$ -$

5400 - Beginning Fund Balance (Net Working Capital)

Beginning Fund Balance Available at June 30 22,609,915$ 23,614,447$ 22,306,555$ 27,299,999$

5400 Net Working Capital Available 22,609,915$ 23,614,447$ 22,306,555$ 27,299,999$ -$ -$

Budgeted Beginning Fund Balance 22,609,915$ 23,614,447$ 22,306,555$ 27,299,999$ -$ -$

TOTAL OTHER SOURCES 28,209,915$ 36,922,738$ 22,306,556$ 27,300,000$ -$ -$

TOTAL GENERAL FUND RESOURCES 344,385,263$ 348,839,415$ 340,970,127$ 343,423,734$ -$ -$

Transfers from these funds went to support instructional programs in the General Fund that could not be supported at current funding levels. GASB 54,which took effect for fiscal 2011-12, will prohibit the transfer of monies from certain funds into the General Fund for this purpose.

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GGEENNEERRAALLFFUUNNDDRREEQQUUIIRREEMMEENNTTSS((EEXXPPEENNDDIITTUURREESS))


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2012-13 GENERAL FUND REQUIREMENTS - ALLOCATING THE MONEY

Instruction$209,337,839

61% Support

Last Year 2011-12: $340,970,127 The primary mission of the District is to provideexceptional educational programs that prepare students

for the work force and/or college Salem Keizer funds


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Five-year overview of how the General Fund was allocated

61% Support$117,977,72135%

FacilitiesAcq/Const.

$460,411


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2009-10 2010-11 FTE Budget FTE Proposed Approved AdoptedAccount Code and Description



Estimated Budget Requirements for Fiscal Year and Comparison

Prior Years' Actuals 2011-12 Budget Next Year 2012-13

Associated Payroll Costs


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Associated Payroll Costs210 Public Employees Retirement System 5,898$ 5,627$ -$ -$

220 Social Security Contribution 3,058 2,827 - -

230 Other 524 369 - -

Total Associated Payroll Costs 9,480$ 8,823$ -$ -$ -$ -$

Purchased Services

310 Professional Services 288$ 600$ -$ -$

320 Other Property Services - 75 - 25,541330 Student Transportation 1,676 1,915 - -350 Communications 96 - - -

Total Purchased Services 2,060$ 2,590$ -$ 25,541$ -$ -$

Supplies and Materials

410 Consumable Supplies 2,513$ 3,259$ -$ -$

Total Supplies and Materials 2,513$ 3,259$ -$ -$ -$ -$

54,215$ 52,272$ - -$ - 25,541$ -$ -$

54,215$ 52,272$ - -$ - 25,541$ -$ -$

203,551,762$ 205,736,939$ 2,379.93 209,337,839$ 2,381.74 210,962,096$ -$ -$

TOTAL SUMMER SCHOOL PROGRAMS

TOTAL INSTRUCTION

TOTAL REGULAR SUMMER SCHOOL

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Account Code and Description 2009-10 2010-11 FTE Budget FTE Proposed Approved Adopted

Budget Next Year 2012-13




Prior Years' Actuals 2011-12

2700 - Supplemental Retirement ProgramCosts associated with a supplemental retirement program provided by the District to qualified employees.

2700 - Early Retirement Incentive (Supplemental Retirement Program)

Salaries and Wages116 Early Retirement Incentives 2,597,422$ 2,250,457$ 2,555,230$ 2,374,707$


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116 Early Retirement Incentives 2,597,422$ 2,250,457$ 2,555,230$ 2,374,707$

Total Salaries and Wages 2,597,422$ 2,250,457$ - 2,555,230$ - 2,374,707$ -$ -$

Associated Payroll Costs

220 Social Security Contribution 135,961$ 116,632$ 195,475$ 146,044$Total Associated Payroll Costs 135,961$ 116,632$ - 195,475$ - 146,044$ -$ -$

2,733,383$ 2,367,089$ - 2,750,705$ - 2,520,751$ -$ -$

115,992,295$ 114,495,726$ 1,264.24 117,977,721$ 1,275.46 120,371,725$ -$ -$TOTAL SUPPORTING SERVICES

TOTAL SUPPLEMENTAL RETIREMENT

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2009-10 2010-11 FTE Budget FTE Proposed Approved AdoptedAccount Code and Description




Prior Years' Actual 2011-12 Budget Next Year 2012-13

4150 - Building Acquisition, Construction and Improvement

Purchased Services

350 Communications -$ 9$ -$ -$

380 Non-Instructional Professional Services 9,051 55,047 118,489 113,690

390 Other Purchased Services 33,580 477 - -

Total Purchased Services 42,631$ 55,533$ - 118,489$ - 113,690$ -$ -$


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Supplies and Materials

410 Consumable Supplies -$ 20,047$ -$ -$

Total Supplies and Materials -$ 20,047$ - -$ - -$ -$ -$

Capital Outlay

520 Building Acquisition -$ -$ 120,000$ 121,200$

540 Depreciable Equipment - 42,907 - -

Total Equipment -$ 42,907$ - 120,000$ - 121,200$ -$ -$

Other

670 Taxes and Licenses 142$ 3,160$ -$ -$

Total Other 142$ 3,160$ - -$ - -$ -$ -$

42,773$ 121,647$ - 238,489$ - 234,890$ -$ -$

292,711$ 388,583$ 1.00 460,411$ 1.00 443,487$ -$ -$

TOTAL BUILDING ACQUISITION,CONSTRUCTION AND IMPROVEMENT

TOTAL FACILITIES ACQUISITION &

CONSTRUCTION

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2009-10 2010-11 FTE Budget FTE Proposed Approved Adopted

5000 Other Uses

Activities included in this category are servicing the debt of the District and conduit-type transfers from one fund to another fund.

5100 Debt Service (Lease/Purchase Agreements)

610 Redemption of Principal

S d T i 424 707$ 429 788$ 505 674$ 416 031$





Prior Years' Actuals 2011-12 Budget Next Year 2012-13


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Student Transportation 424,707$ 429,788$ 505,674$ 416,031$

Equipment Purchases - - 281,212 114,619

Total Fund Modifications 424,707$ 429,788$ - 786,886$ - 530,650$ -$ -$

620 Interest on Debt Outstanding

Student Transportation 237,156$ 219,013$ 233,155$ 197,089$

Equipment Purchases - - 25,606 39,409


661,863$ 648,801$ - 1,045,647$ - 767,148$ -$ -$

5200 Transfer of Funds

7100 Fund Modifications

Transfer to Special Revenue Fund-Food Service 187,300$ 187,300$ -$ -$

Transfer to Asset Replacement Fund - Bus Payments 84,886 - 320,000 320,000


272,186$ 187,300$ - 320,000$ - 320,000$ -$ -$

934,049$ 836,101$ - 1,365,647$ - 1,08

Documents

2012-13 Proposed Budget Document