2017/2018 Budget OverviewBoard Presentation – August 8, 2017

Presented by: Melissa deVita, Deputy Superintendent

Marie Telecky, Director Finance & Budget

Ryon Fields, Budget Analyst

Brian Flynn, Budget/Grants Analyst

Jenny Hall, Budget Analyst

Janet Suppes, 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: devitam@bsd405.orgPhone: (425)456-4025

1

Agenda

2

• Key Points• Superintendents Summary• Looking Forward• Next Steps• Questions/More Information

• Backup Materials

2017/2018 State Funding• 2.3% COLA increase

• 2% point increase in employer pension contribution

• $40/month per state funded FTE increase in benefit funding

• Career & Technical Education class size reduction, increase materials and supplies allocation, reduced indirect charges

• Increase middle and high school instructional hours for Transitional Bilingual Program

• Changed funding model to staff at 17 students per FTE at K-3 with no compliance requirement but changing back to compliance model in 2018/19

3

General Fund Revenue Sources

4

$109,887

$67,497

$ in Millions

$72,536

$119,180

$104,345

$65,051

Note: Other Revenue is Transfers from other funds & revenues from surplus sales, other government entities and other school districts.

34.6% 33.7%

32.4%31.2%

55.8% 55.2%

57.2%59.2%

4.6% 5.5% 5.5% 4.6%5.0% 5.7% 4.9% 5.0%

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

2015/2016 Actual 2015/2016 Budget 2016/2017 Budget 2017/2018 Budget

General Fund Revenue

Other Federal State Local

$248.6 $258.7$273.9

$298.4

5.4%4.1%

60.3%

30.2%

31.2%

59.2%

4.6%5.0%

32.4%

57.2%58.3%

32.9%

5.5%

4.9%

4.1%4.6%

General Fund Expenditures

5

$’s in Millions

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

2015/2016Budget

2016/2017Budget

2017/2018Budget

District-wide Support

Transportation

Food Services

Day Care/Community Suppt

Categorical Grants

Career & Tech Education

Special Education

Basic Education

$258.6$276.5

$301.5

57.6%57.6% 58.1%

12.8%

10.8%11.6%

7.0%6.1%

5.8%12.8%

12.6%

12.4%

Superintendent’s Summary

• State law requires the following disclosure during the budget hearing process:

6

2017/18 Budget Amount

Total MSOC Allocation $25,103,589

Total MSOC Budget $31,692,544

Net Difference ($6,490,516)

Funding Available for New Investments2017/2018 Budgeted Revenue $298,410,000

Less 2016/2017 Budgeted Expenses ($276,456,000)

Net New Funds Available $21,954,000

Spending Increases:

Employee Contractual Commitments, COLA, Employer Pension Contribution & other employee compensation based benefits (not including categorical increases below)

$7,760,000

Career & Technical Education (including employee costs) $1,300,000

Increase costs due to enrollment increases $4,310,000

Mandated expense increases (election costs, utilities, substitutes, adjustments, etc.)

$1,460,000

Special Education Services (Additional staff, purchased services, and additional employee costs)*

$6,924,000

Instructional Initiatives, Curriculum Materials $1,586,000

Other (misc. adjustments, grants, etc.) $1,738,000

Sub-total Committed Spending Increases $25,078,000

Net Impact ($3,124,000)

7

* Change in budgeting methods for Safety Net reimbursable expenses. Offsetting revenue has also been budgeted.

2017/18 Budget Decisions

8

Amount

Instructional Initiatives $1,586,000

Superintendent Discretionary Funds

$100,000

Instructional Leadership Discretionary Funds

$44,000

Building Leadership – Asst. Principals

Puesta del Sol, Enatai, Interlake HS & International School

$142,000

Curriculum Science Kits $1,300,000

ELL & Spanish Dual Supervisor $170,000

Public Records Officer $105,000

Technical Support Staff (4.5 FTE)

$350,000

CTE Program Enhancements $500,000

Amount

Special Education $6,924,000

SWIFT Pilot $380,000

SPED Supervisor $60,000

Additional Employee Costs $2,466,964

Additional Staff (5.0 Cert FTE & 6.2 Classified FTE)

$810,000

Purchased. Services* $3,207,036

Total Planned Spend Down of

Reserves = $3,124,000

* Change in budgeting method for safety net reimbursable

expenses. $2.3 M off setting revenue also budgeted.

Capital Projects

9

9

Total Available Funds: $34,675

EOY Fund Balance: $1,300

Total 2017/18 Available Funds: $278,000

Anticipated EOY Fund Balance: $133,700 including the sale of $100 million in bonds in the spring 2018.

Capital & Tech Funds Bond Funds

Salaries $8,750

Application Lic. $3,450

Field Upgrades $6,500

Facility Modernizations & Renovations

$2,150

Portables $1,000

Instructional Tech $2,865

Tech Infrastructure $1,400

Classroom Tech $2,300

One-to-One Project $3,800

Miscellaneous $1,157

Total $33,372

Phase II Projects

Tillicum MS $37,200

Others $7,386

Sub-total Phase II $44,586

Phase III

Wilburton Elem. $39,480

Stevenson Elem. $40,608

Highland MS $11,925

Clyde Hill Elem. $8,167

Other $4,640

Sub-total Phase III $104,820

$000’s

Staff Salary & Benefits

$961

Capacity $30,000

Bond Services $400

Other Misc. $1,000

Total $181,767

Superintendent’s Summary

• Anticipate enrollment increase to 20,355 students. The district average headcount for the 2016/2017 school year was 20,001 students. Last year’s fall forecast was 20,111 and actual October 1 enrollment was 19,999. We were 0.6% short on enrollment last year which impacted the overall budget by $1.5 million.

• Over the past three years, both revenue and expenditures have been growing at an average of 9%. In each of the last three years, we have anticipated spending down a portion of the reserves. However, year end actuals thus far have resulted in our general fund reserves remaining relatively flat.

• Staffing model for elementary schools has been modified to include all students in general education classrooms in support of inclusion for all students.

• $3.2 million of the total special education increase of $6.9 million is a change in budgeting practices for costs to be reimbursed by safety net near the end of the fiscal year. Revenue was also increased to $2.3 million to partially offset this change.

10

Superintendent’s Summary• District-wide support costs including district administration has

dropped from 13% to 12.4% of total general fund expenditures while expenditures in general education and special education have remained flat or increased as a percent of the total expenditures.

• The District’s reserves were expected to drop to $18.8 million at the end of 2016/2017. Based on the most recent forecasts, we anticipate starting 2017/2018 with reserves of $22.2 million, $3.4 million more than originally budgeted. Again this year, we have budgeted an anticipated $3.1 million decline in general fund reserves to $19.1 at the end of the fiscal year.

• At the end of the 2017/2018 fiscal year, the District’s reserves are expected to be $19.1 million which is 6.3% of General Fund expenditures.

• Both the Revenue and Expenditures include $7 million in capacity for grants and unanticipated enrollment.

11

Superintendent’s Summary

• Capital and Technology funds will be spent on elementary school fields, facility modernization and renovations, application licenses, technology infrastructure and classroom technology and curriculum. The budgeted end of year balance for 2016/2017 was $2.1 million but the anticipated actual end of year budget is closer to $6.8 million. This year the budgeted end of year balance is $1.3 million. However, every project and area has some contingency built into it.

• Construction work continues on Tillicum MS and will begin on Wilburton Elementary and Stevenson Elementary schools. Preparation and demolition work will begin on Clyde Hill Elementary and Highland Middle School.

• The District is planning to sell $100 million in bonds in spring 2018.

12

Looking Forward to 2018/2019

• Uncertainty –

• Significant amount of time will be spent unpacking, analyzing and working with our employees to understand the impact of HB2242 on:

• Financial future

• Employee contracts

• Program offerings

• Preparing for a levy election in February 2018 asking voters for:

• Enrichment Levy (replaces former Maintenance and Operations Levy)

• Capital and Technology Levy

• Possibly a Transportation Vehicle Enhancement Levy (formerly Transportation Vehicle Levy)

Next Steps

14

• A draft of the budget is available on the District website.

• Notice of Public Hearings will be placed in newspapers

• Community feedback may be received via email, telephone, or at Board meeting on August 29, 2017

• All budgets will be presented to the Board for final adoption at the August 29,2017 board meeting.

Questions / More Information

15

For additional information regarding this presentation contact:

The Bellevue School District Mission: To provide all students with an exemplary college preparatory

education so they can succeed in college, career and life.

Name – Melissa deVitaEmail: devitam@bsd405.orgPhone: (425)456-4025

Backup Materials

16

Enrollment

15,504 15,821 16,333 16,501 16,619

17,038 17,447 17,917

18,244 18,560 18,545

19,164 19,638 20,001 20,355

-

5,000

10,000

15,000

20,000

25,000

17

Headcount

Source: 1251H State Report: Annual Average Headcount