End of Year Financial Report and
Governor’s Budget UpdateJanuary 12, 2011
Planning for
2011-2016:
Looking Ahead
Purpose
• To review:
• End of Year financial status
• Update on enrollment
• Capital Projects Accountability Initial Report
• Budget projection/Governor’s Budget 2010-11
and 2011-12
• To discuss additional considerations
moving forward in the budget process
for the General Fund
2
Agenda
• End of Year Status
• Enrollment Projection Update
• First annual Capital Projects Accountability Report
• Update 2010-11 Budget and 2011-12 Budget Projection
• Impact and Considerations
• Way Ahead
3
1. 2007-08 Budget
2. Long Range 5 year Plan
3. 2008-09 Budget
4. Prepare for School Support Levy
5. Maintain Heavy Impact
6. 2009-10 Budget
7. Legislative Action 2010-11
8. Successful Passage of School Support Levy
9. 2010-11 Budget
10. Successful Passage of Capital Projects
11. 2011-12 Budget
12. Review/Revise Long Range Plan
SY 10-11
4
Bridge to 2012 “Phases”August 13, 2008
$9
85
,44
5
$11,5
49,2
69
$7,0
03,3
35
$11,9
83,2
62
$159,8
22
$1,0
80,6
33
$10,0
61,6
41
$6,5
12,2
84
$11,9
10,7
72
$399,9
62
$1,1
12,2
15
$12,0
26,5
18
$5,6
39,9
63
$11,5
20,1
79
$208,2
26
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Associated
Student
Body
Capital
Projects
Debt
Service
General Transportation
Vehicle
Ending Fund Balance by Fund
07-08 Actual 08-09 Actual 09-10 Actual
5
General Fund Ending Fund Balance
$7,645,297
$11,012,601
$11,983,262 $11,910,772
$11,520,179
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2005-06 2006-07 2007-08 2008-09 2009-10
FCR = $4.3 M
FCR = $4.3 MFCR = $4.1 M
FCR = $4.1 M
FCR = $0 M
6
Average monthly payroll for 2009-10 = $8.3 MAverage Accounts Payable (Bills) = $1.2 M
Total Monthly= $9.5 M
FCR = Federal Contingency Reserve
2009-10 Ending Fund Balance
7
Federal
Contingency
Reserve
$4.1 M
Carryover
$2.1 M
Inventory &
Insurance
$1.1 M
Undesignated
$0.9 M
Committed
Reserve
$3.4 MExpenditures
$113.5 M
Beg. Fund
Balance
$11.9 M
End. Fund
Balance
$11.5 M
Components of
Ending Fund Balance
Expenditures
$113.5 M
Discussion
• Question: Given a monthly payroll and bill payment (accounts payable) of 9-10 million, the 3% reserve and the Federal Contingency Reserve (which provides the Impact Aid for the first portion of the school year), what other considerations might be important for the fund balance?
• Share 1 point or consideration
Reference: Year End Report page 2
8
12,648
12,450
12,276
12,079
11,732
11,508 11,458
11,184
10,912
10,676 10,546
10,371 10,257 10,197
11,085
10,842 10,739
10,599
10,49510,429
10,382
10,000
10,500
11,000
11,500
12,000
12,500
13,000
02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
Enrollment (FTE) Updated Oct 2010
Projection May 2010 Projection Oct 2010Note: High point District Enrollment (FTE) in 1998-99 = 13,051
9See back-up handout
Discussion ?
• Question: As you look at our district enrollment what strikes you? What makes you wonder?
• Share 1 point or consideration
Reference: Year End Report pages 10 - 12
10
CAPITAL PROJECTS ANNUAL
REPORT#1
Accountability For District and Community
11
Annual Capital Projects
Accountability Report• 2009-10 Projects
• On time, On budget
• Backlog of Repairs
• Emergent Critical Repairs
• 2010-11 Projects
(Executive Overview)
• Energy Conservation
Efforts
• Small Works Roster
12
On Time
On Time Not on time
13
2009-10 Capital Projects
On Time and On Budget
5/7
Substantial Completion
On Budget
On Budget Not on Budget
5/7
Within Budgeted Funds
KLSS Wood Shop, RTJH Weight Room FlooringKLSS Wood Shop, RTJH Weight Room Flooring
Backlog of Repairs
$64 M to address backlog
2001-2010Heavy Impact, Grant, State Match
150 Million
112 Million
75 Million
37 Million
14
Emergent Critical Repairs
15
$69 K
$247 K
$530 K $595 K
$1.05 M
$779 K
$1.19 M
$1.51 M
$1.81 M
$2.12 M
$2.45 M
$2.80 M
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Actual Emergent Critical Repair Costs Estimated Emergent Repairs (Spring 2010)
2010-11 Projects
16 Scheduled for Substantial Completion by August 31, 2011
On Time
On
Budget
On
Scope Planned
Multi-Year ProjectsJW Emergency Generator
CKJHS Freezer Replacement
2010-11 ProjectsKitchen Hoods (BR/CC/EH/SI/WO)
CKJHS HVAC Improvements
CKHS Portable Walkway
SR Music/Gym HVAC Repairs
LITEHouse Roof
Flooring Projects
Energy Conservation - Phase V
Energy Conservation – Phase VI
Project Management
Funding Dependent Projects
CKHS Circulation Pump (stimulus funds)
Energy Conservation - Phase VII (grant funds)
Energy Conservation - Phase VIII (grant funds)
Technology (Capital Projects Levy)
Jackson Park Replacement (Capital Projects Levy)
Emergent Critical RepairsKlahowya Gym Curtain Replacement
Food Service Central Freezers
Energy Conservation: Cost
Avoidance
17
$65,584$165,007
$117,936$222,173
$105,388 $135,822$27,267
$228,517
$296,989
$1,364,681
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Total Savings
Energy Cost Avoidance (Savings to the District)Base Year 2000/2001 to 2009/2010
Phase YearTotal Project
Costs
Total Grants and Rebates
Received/ApprovedDistrict Cost
Energy Savings (Cost Avoidance)
I 2001-02 $392,265 $118,653 $273,612 $273,612
II 2002-03 $511,609 $135,547 $376,062 $376,062
Other * 2003-08 $568,875 $255,994 $312,881 $312,881
III 2007-08 $1,191,757 $312,281 $879,476 $394,264
IV 2008-09 $174,002 $61,999 $112,003 $7,862
Totals $2,838,508 $884,474 $1,954,034 $1,364,681
V** 2009-10 and 2010-11 $1,858,461 $868,694 $989,767 $0
VI** 2010-11 $1,973,297 $900,000 $1,073,297 $0
* Projects not performance-based contracting** Grants have been approved, but not received
Energy Conservation Efforts
18
Currently 79% of $2,838,508 for completed energy
projects paid through grants and energy savings
Small Works Roster
Annual Update
19
SMALL WORKS ROSTER
CONTRACTS AWARDED FISCAL YEAR 2009 - 2010
Project Description Contract Award Contract Amount Date of Award
Location
Quotations
Available
Woodlands Elementary School -
Fire Alarm System ADA UpgradeFire One, Inc. $29,912.86 January 13, 2010
Capital Projects
Office
Discussion
• These slides are intended to provide
a summary for our School Board and
all stakeholders. Are they easy to
read?
• Is something missing?
• Share one additional point or
consideration
20
UPDATE: 2010-11 BUDGET AND
2011-12 BUDGET PROJECTIONS
21
Special Legislative Session:
Reductions for 2010-11
• Eliminate K-4 Staffing Ratio January
2011
• $500,000
• 6.3% Across-the-Board Reduction
• $328,595
• Eliminate Federal Edujob Dollars
• $2,439,600
22
Reductions from Governor’s Proposed
Supplemental 2011 Budget
Impacts For The Current SY 10-11• Eliminates ALL K-4 staffing (retro 7/1/2010)
$525,911
• Eliminates ALL Gifted State Funding (retro 7/1/10) $104,000
• Eliminates Medicaid Reimbursement for Special Education (Jan 1,2011) $57,000
• Reduces LEA by 6.3% (Tiered model) $95,000
Moves June’s State monthly apportionment from June 30, 2011 to July 1, 2011 (cash balance)
23
Governor’s 2011-13 Biennial Budget
• Continue Elimination of:• K-4 Staffing
• Gifted Funding
• LEA (CKSD at 5%) $190,000
• I-728 and I-732 initiatives
• Freezing steps on salary schedule for two years
• Change in school bus depreciation schedule
• Freeze expansion of All Day Kindergarten
• Increased Retirement Contributions $335,000
• Suspension of National Board stipends
24
2010-11 Budget Update and
2011-12 Projections
25
Carryforward from Previous Year
Basic Ed Apportionment
Special Ed Apportionment
Staffing Adjustments due to Enrollment
Levy Increase
Operating Adjustments: Instructional Materials
Utilities, Insurance
Elections
COLA
Retirement & Benefits
Revenue Reductions
Safety Net
Medicaid Special Education
Gifted
K-4 Staffing
Local Effort Assistance
State Cuts - 6.287%
IDEA Stimulus Funds (District Support)
IDEA Stimulus Funds (New Programs)
Title I Stimulus Funds
I728 Carryover
TOTAL SHORTFALL
2010-11
0
906,103
103,597
(600,000)
(57,000)
(104,000)
(1,025,911)
(328,595)
$(1,105,806.00)
2011-12
(1,105,806)
(1,230,521)
(145,978)
619,966
1,786,001
(35,000)
(15,000)
(335,000)
(28,000)
(190,000)
(600,000)
(300,000)
(600,000)
$(2,179,338.19)
Our Continuing Practice Budget
Methodology
• Maintain Community Support – Levy commitments
• Congruent Reductions (Match category or area of funding to reduction)
• Sustainability – Posture for continued success
• Multiply year solutions – solving the problems over longer times if possible
• Required vs. Needed vs. Nice to have
26
• All Day Kindergarten – Free All Schools
• K-6 Literacy Adoption
• School Configuration
• Legislation
• SB 6696 Staff and Leader Development
• SHB 2776 Prototypical Funding
• Intervention Support – Post Stimulus Cliff and State Reductions
• Elementary Class Size
27
Improving Student Performance:
The Future…
Discussion ?
• Question: Given the uncertain fiscal
outlook, is there anything else we
should consider as we move
forward?
• Share 1point or consideration
28
1. Successful Passage of Capital Projects Levy2. 2011-12 Budget3. Review/Revise Long Range Fiscal Plan4. 2012-13 Budget5. Reauthorization: Maintain Heavy Impact6. Prepare for School Support Levy7. 2013-14 Budget8. Successful Passage of School Support Levy9. 2014-15 Budget10. Plan for Phase Two of Capital Projects Long Range
Master Plan11. 2015-16 Budget12. Successful Passage of Capital Projects Phase Two13. 2016-17 Budget14. Review and Revise Long Range Fiscal Plan
29
Long Range Fiscal Plan: 2011-16
SY 10-11
SY 11-12
SY 12-13
SY 13-14
SY 14-15
SY 15-16
Budget Update Summary
Key Points
• 1. Legislative Actions – January-April
• 2. RIF II Considerations
•Enrollment Actual and Projection
•Retirements and Resignations
•Leave of Absences
• 3. Capital Projects Levy Success
• 4. Complex and Interdependent
30
2010-11 Budget Timeline and Process
31