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2018/2019 Budget OverviewBoard Presentation – July 24, 2018
Presented by: Melissa deVita, Deputy Superintendent
Marie Telecky, Director Finance & Budget
Ryon Fields, Budget Analyst
Brian Flynn, Budget/Grants Analyst
Jenny Hall, Budget Analyst
The Bellevue School District Mission: ❖ To provide all students with an exemplary college preparatory
education so they can succeed in college, career and life.
For additional information regarding this presentation contact:
Melissa deVita, Deputy Superintendent, Finance & OperationsEmail: [email protected]: (425)456-4025
1
Agenda
• Budget Process
• Executive Summary
• General Fund
• Capital and Technology and Building Funds
• Local Levies
• Next Steps
• Additional Materials
2
Addl. School Budgets
High Needs Funds
Title I Funds
Grants & Other
Local Funds
Budget Process Today
3
School Staffing & Budget Formulas
Initiatives & Improvement
Plans
Program Placement
Enrollment Forecast
Dept. & School Budget
Requests
Base School Budget
Cert. Staffing
ClassifiedStaffing
Building Budget
Program StaffingOther Budgets
Other Dept.
Budgets
Capital & Tech
ASB, Debt
Service & TVF
4-Year Perspective
13,000
13,500
14,000
14,500
15,000
15,500
16,000
16,500
17,000
17,500
18,000
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
Fed & Other Local Taxes State $/Pupil
4
Total General Fund Revenue ($ Millions) Budget Revenue/Pupil - $’s
$354.7 $349.9 $359.2 $368.7
$298.4
Executive Summary• Enrollment is continuing to grow but at a more modest rate. Fall enrollment is
forecasted to be 20,441 students. Last year’s fall forecast was 20,355 students and actual October 1 enrollment was 20,290. The district’s average annual headcount for the 2017/2018 school year was 20,271.
• The McCleary solution put in place in the 2017 legislative session and further modified in the 2018 legislative session is resulting in a revenue increase of almost 19% in one year. However, in subsequent years revenue will remain relatively flat while expenses are expected to continue to increase.
• Historically revenue has grown an average of 9% year over year. Over the next three years, this average is expected to drop to 1.3%. If there are no changes in the current funding models, then we will have to reduce expenditures including a potential reduction in staffing and/or reduce general fund reserves to maintain financial stability.
5
Executive Summary• What worked before will not work in the future – even the “Everybody Comes
Back” budget will not be sustainable in the long run.
• Historically new initiatives were funded by an increase in funding, expanding time or adding people – tighter resources will become our norm especially as health care, pension costs and other programs impact state finances.
• We need to change the way we do business by:
• Including cost effectiveness as part of the equation when evaluating programs and initiatives and their impact on student achievement;
• Being nimble and shifting resources regularly by reducing and refining programs and initiatives;
• Establishing a systemic approach for evaluating programs and initiatives to drive financial decision-making;
• Ensuring financial planning is a multi-year, year around process aligned to the strategic direction of the organization;
• Increasing accountability to demonstrate the impact of initiatives and programs.
6
Strategic Budget Process
• Focus decisions on strategic goals, not departments
• Include all funds in process to maximize alignment and transparency of restricted funds
• Integrating stakeholder perspectives into decision making especially around trade-offs that will be necessary
• Incorporate processes and tools that look at the Academic Return-on-Investments (A-ROI) including the cost and quality of services
• Investment and reallocation decisions need to be strategically coherent and implementable
• Actively monitor and respond to investment results
7
Source: Education Resource Strategies (ERS) Funding: District Budget Development
Budget Process TomorrowFrom this: To this:
BEGINS… • Mid-year• With last year’s budget• As a process initiated by finance
• Year-around process• As part of the district’s ongoing strategic plan• By having decision makers align on strategic priorities
INCLUDES… • Finance team as leaders of the process• Central departments as silos• Board members and other stakeholders only
at the time of approval/authorization
• Finance team facilitates cross-departmentcollaboration
• Key stakeholders asked for input, feedback, and approval
USES DATA AND TOOLSTHAT…
• Compare current and previous years’expenditures
• Separate budgets by fund types and revenue sources
• Aim for specific budget target
• Enable multi-year cost and ROI comparisons• Include all funds that allow districts to make decisions
around strategy, not individual programs• Allow investments/cuts to be prioritized so they can be
mapped to range of revenue levels
ENDS WITH… • Incremental changes from previous year that are not informed by key stakeholders outside of central office
• Investments that may not be coherently aligned to strategy or schools’ ability to implement
• The ability to monitor cost (track expenses vs. budget)
• Informed stakeholders• Coherent budget decisions that are implementable and
aligned to district strategy• The ability to monitor cost, track implementation and
measure ROI8
Source: Education Resource Strategies (ERS) Funding: District Budget Development
Stakeholder Input for 2018/2019
Recommendations Funded
Elementary Study Team • Allocate additional differentiated classified support based on school need for student supervision
• A full-time counselor at each elementary school
• Required paid building-based days before school starts
Secondary High Needs Team
• School site open into evening with classified supervision on campus
• Increase hours for health room assistant
• Increase hours for testing room assistant
• Differentiated classified support staffing model
• Update certificated staffing model 9
2018/2019 InvestmentsDirect Impact to Schools and Students
Additional Teaching Positions Additional Classified Staffing at School Buildings – General School Assts., Office support, etc. (71,000 hours)
$2,836,200
General Education – 21 FTE $2,310,000
Special Education – 5 FTE $550,000 Additional Material, Supplies and Operating Cost (MSOC) budgets at school buildings
$766,800
English Language Learners – 5 FTE $550,000
Full-time Counselors in all Elem. Schools
$935,000 Assistant Principals at Elem. Schools $366,000
Mental Health School Support Team $340,000 Wilburton Start-up Costs $985,000
10
Indirect Impact to Schools and Students
Additional Salary & Benefit costs for current employees – all employee groups
$42,060,000 Increase in building operating costs –custodians, utilities, fuel, etc.
$1,072,000
Central Office Supports $1,400,800
Revenue v. Expenditures ($ Millions)
11 $150.0
$200.0
$250.0
$300.0
$350.0
$400.0
2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
Revenue Expenditures
Net: ($3.1)
Net: ($5.6)Net: ($5.2)
Net: ($2.9)Net: $2.7
Capital Projects
12
12
Total Available Funds: $45,272
EOY Fund Balance: $613
Total 2018/2019 Available Funds: $303,507
Anticipated EOY Fund Balance: $156,006 including the sale of $100 million in bonds in the spring 2019.
Capital & Tech Funds Bond Funds
Salaries $15,280
Application Lic. $2,928
Field Upgrades $8,400
Facility Modernizations & Renovations
$3,100
Portables $1,000
Instructional Tech $2,901
Tech Infrastructure $1,550
Classroom Tech $1,800
One-to-One $3,800
Miscellaneous $3,900
Total $44,659
Phase II Projects
Sammamish HS $2,400
Tillicum MS $4,400
Others $80
Sub-total Phase II $6,880
Phase III
Wilburton Elem. $3,684
Stevenson Elem. $3,564
Highland MS $45,227
Clyde Hill Elem. $45,893
Other $8,749
Sub-total Phase III $109,117
$000’s
Staff Salary & Benefits
$1,004
Capacity $30,000
Bond Services $400
Other Misc. $100
Total $147,501
Local Levies
$83,578 $79,366 $90,471 $95,558 $88,609
$66,500 $51,778
$52,913 $54,800
$56,653
$26,000
$37,000
$40,000 $42,000 $44,000 $8,000
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$-
$50,000
$100,000
$150,000
$200,000
$250,000
2018 2019 2020 2021 2022
Debt Serv. Ed & Ops Cap & Tech School Bus Current Exp. Tax Rate Elect. Exp. Tax Rate
13
$ 000’s
Expected Tax Rate in Voter Pamphlet
Current Expected Local Property Tax Rates
$/$1,000 Assessed Value
Next Steps
14
Short-Term:
• Respond to inquiries regarding 2018/2019 budget• Advertise budget hearing• Hold budget hearing and ask for approval on August 28
Preparing for 2019/2020:
• Revise financial planning process to support alignment to strategic plan• Establish financial stakeholder working group and stakeholder input processes• Work with instructional team to develop systemic program/initiative evaluation
methodology and process
ADDITIONAL MATERIALS15
Current Budget Cycle Overview
January February March April
Levy Passes Complete 2018/2019 Teacher Salary Schedule
State funding model available for new apportionment system
• Forecast enrollment & distribute to principals
• Finalize enrollment forecast• Complete School & Central
Office staffing analysis• Review certificated staffing
models and update• Analyze classroom availability
at schools• Request department & school
budget proposals
• Finalize cert staffing with principals
• Initial 2018/2019 revenue forecast
• Identify opportunities for staff/resource re-alignment
• Review and update building budget formulas – MSOC, classified staffing, activity hours
• Finalize program placement –special needs & early learning
• Collect department & school budget proposals
• Complete multi-year revenue forecast
• Complete initial high-levelbudget with anticipated cost increases:• Utilities• Labor contracts• Benefit & retirement
contributions• Wilburton start up costs
• Update fund balance projections
16
Current Budget Cycle Overview
May June July August
Draft Strategic Plan Completed
• Finalize fund balance projections
• Release school classified,MSOC, and activity hours
• Determine initial strategic investments for 2018/2019 and develop multi-year resource plan
• Update tech & capital budget
• Finalize strategic investments for 2018/2019 and multi-year resource plan
• ASB budget presentation to school board
• Finalize budget for board presentation – all funds
• Initial presentation to the Board
• Complete multi-year financial plan based on strategic plan
• Public Hearings & Board Approval
• Submit multi-year budget to the state
17
4-Year Enrollment Projection (FTE)Grade 2017/2018
Actual Oct. 12018/2019 2019/2020 2020/2021 2021/2022
K 1,385.24 1,417 1,439 1,462 1,485
1 1,454.00 1,475 1,512 1,534 1,557
2 1,524.00 1,491 1,531 1,568 1,591
3 1,621.94 1,548 1,528 1,567 1,604
4 1,516.00 1,617 1,550 1,529 1,569
5 1,588.00 1,518 1,637 1,569 1,549
6 1,592.41 1,612 1,560 1,681 1,612
7 1,543.17 1,633 1,671 1,620 1,740
8 1,589.85 1,560 1,641 1,679 1,628
9 1,661.72 1,696 1,675 1,756 1,794
10 1,673.23 1,657 1,693 1,974 1,753
11 1,483.15 1,455 1,471 1,505 1,486
12 1,413.37 1,415 1,441 1,437 1,471
Total FTE 20,046.08 20,094 20,349 20,581 20,839
18
4-Year General Fund Budget - Revenue
$000’s 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
Revenues
Local TaxesLocal Non-Tax
$64,706$25,295
$58,120$27,411
$52,091$27,959
$53,906$28,518
$55,775$29,089
State – GeneralState – Special
$143,813$36,128
$186,826$47,269
$185,915$48,215
$191,131$49,179
$196,518$50,162
FederalOther
$12,273$16,194
$12,315$22,738
$12,562$23,193
$12,813$23,656
$13,069$24,130
Total Revenue $298,410 $354,680 $349,934 $359,203 $368,743
19
4-Year General Fund Budget - Expenditures$000’s 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
Expenditures
Basic Education $174,150 $210,367 $212,471 $217,782 $222,138
Special Ed Instruction $38,105 $43,683 $44,120 $45,223 $46,128
Career & Technical $6,375 $8,510 $5,895 $8,809 $8,986
Categorical Grants $17,680 $19,385 $19,579 $20,068 $20,470
Early Lrng. Community Serv.
$12,303 $13,456 $13,591 $13,931 $14,209
Transportation $8,499 $9,448
Food Services $6,982 $6,474
District-wide Support $37,439 $40,630 $57,117* $58,545* $59,716*
Total Expenditures $301,533 $351,953 $355,473 $364,359 $371,647
Budgeted Revenue over/(under) Expenditures
($3,123) $2,726 ($5,539) ($5,156) ($2,904)20
*Includes Transportation and Food Service Expenditures