South Kitsap School District 2013-2014 Preliminary Budget

South Kitsap School District 2013-2014 Preliminary

BudgetJuly 17, 2013

Sandra Rotella SFO CPAAssistant Superintendent

Business Operations

Budget Development Timeline

• November 2012: prior year financial status and enrollment impact on budget reviewed

• January-May: Citizen Budget Review Committee budget study and made recommendations to Board

• March: Collective bargaining began• April: Leadership Budget Team made budget

recommendations (affecting staffing) to Cabinet• May 15: RIF notifications sent• June 30: Governor signs State budget• July 17: Preliminary budget presented to the Board

DRAFT - 2013-14 Preliminary Budget

The Process Begins

• Developing a budget is a year-round process• November – Review the prior year final financial

reports and current year events – Enrollmento District Budgeted $6.35 million for beginning

reserves. • $2.11 million was undesignated and planned to be

spent as follows:– $1.6 million to meet on-going operating needs– $500K moved to Board Designated Reserve to restore

reserve levels back to 3.0%

o 2012-13 enrollment lower than budgeted- about 116 FTE for the year ($594K)


Leadership Budget Team

• Sixteen member team formed in December to recommend 2013-14 budget expenditure reductions of $1.6M to $2.5M.

• The loss of revenue from declining student enrollment was not part of the work of this group.


CBRC Budget Team

• Citizens Budget Review Committee (CBRC) studied one-third of the District’s budget

• 10 member committee focused on Transportation, District Support, Career & Technical Education, Curriculum, Instruction and Assessment

• Recommendations presented to Board May, 2013


Enrollment

• Enrollment projections are calculated by the demographer GreenGasaway

• Demographer’s data based on a single snapshot in time - October

• Data is converted to a ten-month average

• South Kitsap School District continues to have declining enrollment


Enrollment (Continued)


03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 8,000

8,500

9,000

9,500

10,000

10,500

11,000 South Kitsap School DIstrict No. 402

Enrollment Data2003-04 - 2013-14

Stud

ent F

TE

Actual vs. Budgeted Enrollment


08-09 09-10 10-11 11-12 12-13 13-14 8,500.00

8,650.00

8,800.00

8,950.00

9,100.00

9,250.00

9,400.00

9,550.00

9,700.00

9,850.00

10,000.00

South Kitsap School DistrictActual vs. Budget Student FTE

Stud

ent F

TE

Student Enrollment Forecast(125 Fewer FTE for 2013-14)

Grade 2012-13Budget

2012-13 (Actual)

2013-14 (Budget)

K 313 330 324

1-6 4,347 4,319 4,175

7-9 2,178 2,162 2,189

10-12 2,312 2,243 2,242

Running Start 178 158 157

Total 9,328* 9,212* 9,087*


*Average Annual FTE

Impact of Recommendations and Enrollment Projections

• Staffing based on student enrollment projections and preferred staffing levels per negotiated contracto Previously, SKSD staffed at higher levels using reserves

and local funds to enhance student learning. This is no longer feasible.

o Approximately 34.7 certificated FTE were reduced due to decline in student enrollment.

o Approximately 26.6 certificated Teacher FTE, 4.30 Administrative FTE and 3.088 classified FTE were reduced to cover revenue shortfall.


State Budget Highlights

Certificated Instructional Allocation in High Poverty Schools

• K-1 student teacher ratio reducedFrom 24.1 to 20.85 (2013-14) and 20.30 (2014-15)

• Grade 2-3 ratio remains the same at 24.10• Two schools qualify

East Port Orchard ElementaryOrchard Heights Elementary


State Budget Highlights (continued)

Salaries• 1.9% salary cut restored to the Certificated

Instructional Staff Salary Table for 2013-14

• 1.9% and 3% funding cut restored to Classified and Administrative Certificated Staff models respectively• $34,048 increased from $33,401 – Classified• $59,419 increased from $57,636 – Administrative

Certificated



Fringe Benefits• Employer Pension Contributions

TRS – 10.39% increased from 8.05% ($129,940)PERS – 9.21% increased from 7.21% ($610)SERS – 9.82% increased from 7.59% ($22,650)

• Health Insurance Allocations$768/month 2013-14



Material, Supplies and Operating Costs (MSOC Allocations)

• $737.02/student increased from $554.57/student ($182.45/student) 13-14

• $781.72/student increased from $737.02/student ($44.70/student) 14-15

• CTE MSOC $1,399.30/student increased from $1,354.26/student ($45.04/student) 13-14

• CTE MSOC $1,420.29/student increased from $1,399.30/student ($20.99/student) 14-15



• Voluntary Full Day Kindergarten Program-fully funds 43.75% of WA highest poverty schools. None of the South Kitsap Schools are currently in this category.

• Transportation funding increases• Continued bonus payments for National Board

Certifications $5,090/year – no change• Increase Learning Assistance Program funding

1.5156 hours to 2.3975 hours per week


SKSD Fund Balance Forecast2011-12Actual

2012-13Estimated

Actual

2013-14Preliminary

BudgetBeginning Fund Balance $ 7.76M $ 5.72M* $ 4.40M

Revenue $ 87.97M $ 88.16M $ 95.80M

Expenditures & Transfers $ 90.01M $ 89.48M $ 96.62M

Ending Fund Balance $5.72M $ 4.40M $ 3.58M


* The Beginning Fund Balance is actual and matches the Ending Fund Balance from 2011-12

2013-2014 General Fund Preliminary Budget - Estimate

Beginning ReservesCarryover for Restricted Purposes (Grants, FNS) $200,000

Reserve for Inventory (value of items in warehouse) 435,000

Assigned to Other Purposes (building carryover, etc.) 1,398,596

Designated Board Reserve 2.5% 2,204,065

Unassigned Fund Balance 168,440

Total Beginning Reserves $4,406,101

2013-14 ActivityTotal Revenues, including $2M contingency 95,796,601

Total Expenditures, including $2M contingency (95,274,510)

Transfer to Debt ServiceTransfer to Capital Projects

(129,458)(1,221,373)

Excess/(Deficit) Revenue over Expenditures (828,740)

Ending ReservesReserve for Inventory (value of items in warehouse) $435,000

Designated Board Reserve 3.0% 2,873,921

Assigned to Other Purposes (CBRC recommendation)Unassigned Fund Balance

100,000168,440

Total Ending Reserves $3,577,361


Estimated Revenue by Source

Preliminary Budget 2013-14

By Source AmountLocal Taxes (Property Taxes) $20,173,961

Local Support – Non Tax 2,363,950

State – General Purpose (BEA) 51,537,922

State – Special Purpose (Grants) 13,191,307

Federal – Grants (Includes $2 Million contingency) 8,524,461Other Revenue 5,000

Total Revenue $95,796,601


Changes in Revenue – Estimate

Budget Revenue 2012-13 to Preliminary Budget 2013-14

By Source2012-13 Budget

compared to 2013-14Local Taxes (Property Taxes) $1,652,354

Local Support Revenue (Fees) (134,624)

State General (BEA, LEA) 2,520,464

State – Special Purpose (Grants) 2,049,004

Federal – Grants (553,868)

Other Revenue 0

Net Changes from 2012-13 to 2013-14 $5,533,330


Estimated Expenditures – by Program Preliminary

Budget 2013-14Program Amount

Regular Instruction $49,672,961

Special Education 13,409,433

Vocational Education – Instruction 4,393,997

Skills Center – Instruction 68,000

Compensatory Education – Instruction 4,256,467

Other Instructional Programs (includes $2 Million contingency) 2,221,366Community ServicesSupport ServicesTransfer to Debt ServiceTransfer to Capital Projects

669,32920,582,957

129,4581,221,373

Total Estimated Expenditures 96,625,341



Program

2012-13 Budget Compared to 2013-14

BudgetRegular Instruction $ 288,144Special Education 928,281Vocational Education – Instruction 170,719Skills Center – Instruction 68,000Compensatory Education – Instruction 385,576Other Instructional Programs (371)Community ServicesSupport ServicesTransfer to Debt ServiceTransfer to Capital Projects

138,10215,248

(30,104)1,221,373

Net Change from 2012-13 to 2013-14 $ 3,184,968

Changes in Expenditures – EstimateBudgeted 2012-13 Expenditures to

Preliminary Budget 2013-14

Other Funds

Other FundsASB

Student Extra-

Curricular Activities

Debt Service

Bond/Debt Payments

Capital Projects

Construction Land

Transportation Vehicle

Bus Purchase

Beginning Fund Balance $ 729,633 $ 1,482 $1,112,508 $ 348,376

Revenue 1,315,000 20 208,500 463,500

Transfers in General FundCapital Transfer Out

00

129,458271,013

1,221,3730

(271,013)

000

Expenditures 1,490,000 400,471 1,283,530 779,537

End Fund Balance $ 554,633 $ 1,502 $ 987,838 $ 32,339


Continued Budget Development

• Refine detailed budget prior to adoption on August 28, 2013 o Community and District stakeholder meetingso Meet with Union Leadershipo Independent reviewo Public Hearing on August 14, 2013 (tentative)


Questions?

Thank You!

Many people contribute to the budget development process.Human Resources Staff

Leadership TeamCabinet

Special ThanksTO

Kelly Hawkins, Director of Business ServicesAmy Miller, Communications Specialist


Documents

South Kitsap School District 2013-2014 Preliminary Budget