Navigating Budget ChallengesNow and In the FutureMike Newman – Deputy SuperintendentAuburn School DistrictJanuary 28, 2011

Agenda

Background on Budgets 2009-2011 Fiscal Crisis 2011-2013 Fiscal Crisis II

Current Issues Things to Think About

Communications Tax Rates Consistent Message What if your Wrong?

Tools

Budget Drivers

General Fund Budget Student Enrollment Legal Requirements Current Programs Negotiated Agreements District Priorities

Other Funds Capital Project Debt Service Transportation Vehicle Associated Student Body

Budget Challenges

What do we value? Who determines what we value? When will we know revenues? Legal Requirements Strategic Plans Student Achievement Costs of Doing Business 3 -Year Projections

Budget Challenges

Who needs to know and when Superintendent School Board Administrators Staff Community Media Legislators

Communicating Budget Issues Fundamental Concerns

Jobs Supplies and Materials Student Achievement Implementation of District and School

Goals Learning Environments - Facilities

Other Concerns Political Associations

2009-2011 Fiscal Crisis

Superintendent’s Worst Nightmare

Reduction in Force Determination of

Actions Needed Timelines Communication

Plan ▪ Board prior to Public

Meeting▪ Administrators▪ Association

Leadership▪ Employees▪ Community Meetings

Auburn School District’s Action

Resolution 1107 – Reduction in Force Phase I – RIF Notifications Program Priorities Budget

Phase IIA Phase IIB Phase IIC

Begin Recall of Teachers

2011-2013 Fiscal Crisis II

Auburn School District 2010-11 Mid-Year Reductions

What does the Budget Freeze mean?

Why The Budget Freeze Now?

2010-11 State Budget Mid -Year Reduction $1.1 Billion Dollar Shortfall in State

Revenue

Impacts on Auburn School District Total estimated impact is $5.6 Million

Reduction for the CURRENT SCHOOL YEAR

What Caused this Situation

State and National Economic Crisis

What Caused this Situation

State and National Economic Crisis Loss of State Revenue

State Funding largely based on Sales Tax

What Caused this Situation

State and National Economic Crisis Loss of State Revenue

State Funding largely based on Sales Tax Conservative Spending Unemployment Fear

How are we addressing this in the Auburn School District?

Pieces to the Puzzle

Use of $4.4 Million of Reserve

Pieces to the Puzzle

Use of $4.4 Million of Reserve

Spending Freeze

Pieces to the Puzzle

Use of $4.4 Million of Reserve

Spending Freeze

Hiring Freeze

Cut Spending $1.25 Million

Pieces to the Puzzle

Use of $4.4 Million of Reserve

Spending Freeze

Hiring Freeze

Goal of the Spending Freeze is a $1.25 Million reduction of Expenditures

Future Legislative Impacts 2011-12 Budget Impacts

Decisions still to be determined

Know there will be reductions in Revenue Loss of $2.5 million ARRA monies from Feds

Additional work will be needed as the Puzzle Pieces are provided (taken away)

Tools for Budget Communications

Dashboards

Program Account DescriptionRev Budget Current Year-to-Date Encumb Balance FY %

LAP 55-- -- ---- --- ---- ---- 40,155 2648 11,783 0 28,372 29.34%

Title I 51-- -- ---- --- ---- ---- 30,130 3640 12,602 0 17,528 41.83%

Title II 52-- -- ---- --- ---- ---- 24,426 3870 4,870 0 19,556 19.94%

Teachers 0100 27 ---- --- ---- ---- 210,145 25591 55,423 0 154,722 26.37%

Special Ed 21-- -- ---- --- ---- ---- 38,454 6211 14,673 0 23,781 38.16%

Fed Stim Title 11-- -- ---- --- ---- ---- 19,367 325 325 0 19,042 1.68%

CTE Teachers 31-- -- ---- --- ---- ---- 21,500 1249 6,267 0 15,233 29.15%

ALTA Teacher Leadership 0104-- ---- --- ---- ---- 45,000 0 10,550 0 34,450 23.44%

Fed Stim Sped 14-- -- ---- --- ---- ---- 120 60 420 0 (300) 350.00%

IDEA Sped 24-- -- ---- --- ---- ---- 425 300 905 0 (480) 212.94%

Spec Projects 58-- -- ---- --- ---- ---- 3,061 0 180 0 2,881 5.88%

Fed ELL 64-- -- ---- --- ---- ---- 10,315 550 1,285 0 9,030 12.46%

High Cap 74-- -- ---- --- ---- ---- 3000 420 960 0 2,040 32.00%

CPPW Grant 7918 -- ---- --- ---- ---- 11,880 0 4,150 0 7,730 34.93%

Athletics and Activities 0100 28 ---- --- ---- ---- 0 276 444 0 (444) #DIV/0!

Counselors 0100 24 ---- --- ---- ---- 0 0 130 0 (130) #DIV/0!

Librarians 0100 22 ---- --- ---- ---- 1000 380 2,191 0 (1,191) 219.10%

Other Grants 79-- -- ---- --- ---- ---- 1,905 480 480 0 1,425 25.20%

Total 460,883 46,000 127,638 0 333,245 27.69%

December Report

0 50,000 100,000 150,000 200,000 250,000

LAP

Title I

Title II

Teachers

Special Ed

Fed Stim Title

CTE Teachers

ALTA Teacher Leadership

LAP Title I Title II Teachers Special EdFed Stim

Title CTE TeachersALTA

Teacher Leadership

Expended 11,783 12,602 4,870 55,423 14,673 325 6,267 10,550

Budget 40,155 30,130 24,426 210,145 38,454 19,367 21,500 45,000

Instructional Substitutes

0 2000 4000 6000 8000 10000 12000 14000

Fed Stim Sped

IDEA Sped

Spec Projects

Fed ELL

High Cap

CPPW Grant

Athletics and Activities

Counselors

Librarians

Other Grants

Fed Stim Sped IDEA Sped Spec Projects Fed ELL High Cap CPPW GrantAthletics and

Activities Counselors Librarians Other Grants

Expended 420 905 180 1,285 960 4,150 444 130 2,191 480

Budget 120 425 3,061 10,315 3000 11,880 0 0 1000 1,905

Instructional Substitutes for Programs less than $12,000 Budgeted Costs

2009-10 2010-11 2010-11 Change Change

Actuals First Budget Updated Budget Budget 2009-10

Teaching Activities - Teaching activities, instructional materials and all $82,861,957 $89,570,421 $88,957,209 ($613,212) $6,095,252

extracurricular activities (e.g. coaching and activity advising) 62.54% 62.60% 62.17%

Teaching Support - Library services, guidance and counseling, pupil management $12,709,997 $12,861,753 $13,037,001 $175,248 $327,004

and safety, psychology, speech and language services, health services and 9.59% 8.99% 9.11%

payments to other districts for services for students

Building Administration-Cost of managing and coordinating a school $8,410,147 $8,542,760 $8,497,710 ($45,050) $87,563

6.35% 5.97% 5.94%

Building Operations - Operation and maintenance of facilities, grounds, utilities $11,958,194 $13,798,361 $14,028,415 $230,054 $2,070,221

and insurance of buildings. 9.03% 9.64% 9.80%

Central Supervision - District wide administration (e.g. curriculum, special education $5,093,844 $5,536,577 $5,960,592 $424,015 $866,748

career and technical education, personnel, business operations, public information 3.84% 3.87% 4.17%

and legal services)

Transportation - The cost of operation and maintenance of buses (e.g. drivers, $5,438,003 $6,191,654 $6,073,671 ($117,983) $635,668

mechanics, fuel, parts and insurance) 4.10% 4.33% 4.24%

Food Services - Food, supplies, personnel and operational costs of the $4,763,731 $5,155,065 $5,089,548 ($65,517) $325,817

Food Services program that provides breakfast and lunch to students. 3.60% 3.60% 3.56%

Other Support Services - Costs of data processing, printing, warehouse $1,263,922 $1,432,199 $1,444,644 $12,445 $180,722

and distribution and public activities. 0.95% 1.00% 1.01%

Totals $132,375,225 $143,088,790 $143,088,790 $0 $10,713,565

2009-10 2010-11 2010-11 Change Change

Actuals First Budget Updated Budget Budget 2009-10

Beginning Fund Balance $8,711,223 $9,370,089 $10,908,255 $1,538,166 $2,197,032(1) (2) (3)

Revenues Local Taxes $25,105,694 $27,520,857 $27,520,857 $0 $2,415,163

Local Non-Tax $3,738,965 $5,246,303 $3,746,364 ($1,499,939) $7,399

State Funds General Purpose $72,606,755 $74,323,382 $73,790,292 ($533,090) $1,183,537

State Funds Special Purpose $14,887,088 $15,225,204 $15,189,011 ($36,193) $301,923

Federal Funds General Purpose $138,243 $139,849 $138,206 ($1,643) ($37)

Federal Funds Special Purpose $17,283,763 $14,475,375 $16,740,825 $2,265,450 ($542,938)

Revenues from Other Districts $874,690 $978,103 $883,018 ($95,085) $8,328

Revenues from Other Agencies $57,875 $102,500 $3,000 ($99,500) ($54,875)

Other Financing Sources $3,755 $0 $0 $0 ($3,755)

Total $134,696,828 $138,011,573 $138,011,573 $0 $3,314,745

Total Resources $143,408,051 $147,381,662 $148,919,828 $1,538,166 $5,511,777

Expenditures Regular Instruction $73,329,916 $79,130,063 $76,871,712 ($2,258,351) $3,541,796

Federal Stimulus $5,056,677 $2,395,082 $4,269,503 $1,874,421 ($787,174)

Special Education $13,821,513 $14,281,831 $14,871,913 $590,082 $1,050,400

Career and Technical Education $5,561,182 $6,464,719 $6,468,625 $3,906 $907,443

Compensatory Education $7,495,509 $7,950,948 $7,983,494 $32,546 $487,985

Other Instructional Programs $537,891 $2,570,035 $2,218,585 ($351,450) $1,680,694

Community Services $802,148 $879,493 $975,780 $96,287 $173,632

Support Services $25,894,960 $29,416,619 $29,429,178 $12,559 $3,534,218

Total $132,499,796 $143,088,790 $143,088,790 $0 $10,588,994

Ending Fund Balance $10,908,255 $4,292,872 $5,831,038 $1,538,166 ($5,077,217)

Actual Budgeted Budgeted

Percent of Fund Balance to Total Resources 7.61% 2.91% 3.92%

Notes: (1) Beginning Fund Balance from Actual Ending Fund Balance from 2008-09(2) Projected Fund Balance - Estimated in the spring based on expenditure trends(3) Beginning Fund Balance from Actual Ending Fund Balance from 2009-10

2009-10 2010-11 2010-11 Change Change

Actuals First Budget Updated Budget Budget 2009-10

Students FTE 13,807.47 13,780.00 13,700.00 (80.00) (107.47)

Certificated Staff 890.33 882.54 887.84 5.30 (2.49)

Classified Staff 540.96 531.92 537.95 6.03 (3.01)

Total Staff 1431.29 1414.46 1425.79 11.33 (5.50)

First Budget First Budget First Budget First Budget First Budget First Budget Updated

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2010-11Terminology: $7,122,174 $5,201,267 $4,799,544 $5,957,002 $8,646,678 $9,370,089 $10,908,255

Projected Fund Balance is the estimate $102,368,445 $111,546,783 $122,356,840 $133,200,978 $134,349,968 $138,011,573 $138,011,573

in the spring of the dollars that w ill be $109,490,619 $116,748,050 $127,156,384 $139,157,980 $142,996,646 $147,381,662 $148,919,828

available for the next f iscal year. $107,540,979 $115,450,408 $125,181,971 $136,092,758 $139,178,100 $143,088,790 $143,088,790

$1,949,640 $1,297,642 $1,974,413 $3,065,222 $3,818,546 $4,292,872 $5,831,038

Budgeted Fund Balance is the Actual Actual Actual Actual Actual Actual

amount designated in the First Budget. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

$7,000,819 $5,192,713 $4,793,492 $7,202,333 $8,711,223 $10,908,255

Actual Fund Balance is the amount of $104,086,604 $113,643,010 $124,143,930 $133,884,115 $134,696,828

money at the end of the f iscal year. $111,087,424 $118,840,633 $128,937,422 $141,086,448 $143,408,051

These funds include the budgeted fund $105,894,711 $114,047,141 $121,735,089 $132,375,225 $132,499,796

balance and the under spend. $5,192,713 $4,793,492 $7,202,333 $8,711,223 $10,908,255

4.67% 4.03% 5.59% 6.17% 7.61%Fund Balance Percent of

Total Resources

Total Resources

Projected Expenditures

Budgeted Fund Balance

Enrollment and Staffing

Fund Balance History

Actual Fund Balance

General Fund Expenditures

First Budget F-195Projected Beginning Fund

Projected Revenues

Actual Expenditures

Actual F-196Beginning Fund Balance

Actual Revenues

Total Resources

Base Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year

Assumptions 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Assessed Valuation $7,229,709 $8,144,054 $9,213,142 $9,978,246 $10,034,296 $10,034,296 $10,335,325 $10,645,384 $11,064,236 $11,396,163

( /$1,000)

Assessed Valuation 4.67% 12.65% 13.13% 8.30% 0.56% 0.00% 3.00% 3.00% 3.93% 3.00%

% of change (actual) (actual) (actual) (actual) (projected) (projected) (projected) (projected) (projected) (projected)Includes Pierce County AV

Educational Program Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year

& Operations (M & O) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Levy Amount $19,100,000 $20,759,650 $22,100,204 $24,325,407 $27,100,000 $28,900,000 $30,900,000 $31,827,000 $33,000,000 $34,100,000

Proj Tax Rate $2.76 $2.78 $2.78 $2.54 $2.70 $2.88 $2.99 $2.99 $2.98 $2.99(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)

Actual Tax Rate $2.64 $2.55 $2.40 $2.44

(actual) (actual) (actual) (actual)

Technology Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year

Levy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Levy Amount $950,000 $1,900,000 $2,500,000 $2,750,000 $2,000,000 $1,900,000 $0 $0 $0 $0

Proj Tax Rate $0.14 $0.27 $0.34 $0.37 $0.20 $0.19 $0.00 $0.00 $0.00 $0.00

(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)

Actual Tax Rate $0.13 $0.23 $0.27 $0.28

(actual) (actual) (actual) (actual)

Capital Improvements Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year

Levy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Levy Amount $1,340,000 $0 $0 $0 $12,000,000 $10,000,000 $11,700,000 $3,900,000 $4,400,000 $4,400,000

Proj Tax Rate $0.19 $0.00 $0.00 $0.00 $1.20 $1.00 $1.14 $0.37 $0.40 $0.39

(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)

Actual Tax Rate $0.19 $0.00 $0.00 $0.00

(actual) bus levy (actual) (actual) (actual)

Debt Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year

Service 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Current Debt Service $17,352,457 $17,407,000 $16,630,675 $16,651,719 $8,313,075 $8,634,069 $8,280,894 $8,498,481 $8,726,000 $8,957,000

Proj Tax Rate $2.27 $2.32 $2.26 $1.67 $0.83 $0.86 $0.80 $0.80 $0.79 $0.79

(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)

Actual Tax Rate $2.40 $2.14 $1.81 $1.66

(actual) (actual) (actual) (actual)

Combined Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year Tax Year

Rates 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Combined Levy Amt. $38,742,457 $40,066,650 $41,230,879 $43,727,126 $49,413,075 $49,434,069 $50,880,894 $44,225,481 $46,126,000 $47,457,000

Proj Tax Rate $5.36 $5.37 $5.38 $4.58 $4.93 $4.93 $4.93 $4.15 $4.17 $4.16

(projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected) (projected)

Actual Tax Rate $5.36 $4.92 $4.48 $4.38

(actual) (actual) (actual) (actual)

COMBINED LEVY AND BOND AMOUNTS AND PROJECTED TAX RATES 2010-2015

Web Sites

OSPI Web Site – Finance and iGrants School Apportionment and Financial

Serviceshttp://www.k12.wa.us/SAFS/default.asp

WASA – TWIO (This week in Olympia) Other district’s web sites Develop District Information for Web

Site

Staff

Select People for Various Groups Administrators Principals Trusted Community Members Teachers Association Presidents

Another Wrinkle

Legislation and Other Groups 2261 - Prototypical School Funding 6696 – Accountability and School

Improvement▪ CORE 24 (College and Career Readiness)▪ Early Learning

Stand for Children League of Education Voters CCER (Community Center for Education

Results)

Question and Answer