K-20 on Special Session and Governor’s FY11 Supplemental and 2011-13 Budget Proposal

Office of Superintendent of Public InstructionFinancial Resources and Governmental Relations

K-20 on Special Session and Governor’s FY11 Supplemental and 2011-13 Budget Proposal

January 6, 2011

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 204/22/23

Questions during the K-20??

• ESD sites are interactive and able to ask questions.

• All other sites: email questions [email protected]

mailto:[email protected]


Slide 304/22/23

Agenda• Capital Update• Transportation Update• Early Action and Governor’s Proposals

– Side-by-side comparisons– NBCT– K-4– Highly Capable– LEA– Ed Jobs/Apportionment backfill– Apportionment delay– New funding formula– John Jenft F-203

• Questions


Capital Update


Slide 504/22/23

2011-13 K-12 Capital Budget

Governor’s Proposal School Construction Assistance Program

– Maintenance Level of $486.6 Million• Funding Assumptions

– SCAP appropriations are not fully funded. Governor estimated 1.3 million square feet less than OSPI’s original budget request. (Project requests are on track with OSPI’s original budget request).

• Construction Cost Allocation inflationary increases to:

FY 2012 = $183.78FY 2013 = $188.55


Slide 604/22/23


Governor’s ProposalSchool Construction Assistance Program

• Relies on school district capital expenditures stretching beyond the 2011-13 biennium.

» $274 M Bonds; available within the 2011-13 biennium.

» $212 M Cash; majority earned after the 2011-13 biennium.

• Implementation of the priority system would be likely under the Governor’s proposal.


Slide 704/22/23


Governor’s Proposal Other Funding proposals:

• Small Repair Grant Program – $10.0 M.• Skills Centers Minor Works for Existing

Facilities – $3.0 M.• Aviation High School - $2 M.


Slide 804/22/23


Superintendent’s Priorities– Fully fund the School Construction Assistance

Program (SCAP) appropriations; Maintenance and Enhancement Levels.

– Provide for basic student health and safety.• Small Repair and Energy Grant Programs.• New School Facility Safety Net.• New School Seismic Needs Assessment.

– Expand career and technical education through skill centers.

• Minor Works and,• Major project,s especially Phase 2 projects, at

Pierce County and Yakima Valley.

2011-13 K-12 Capital Budget dollars in millions OSPI

Request

Governor Proposal

Fund Source

SCAP – Maintenance $660.1 $486.6 Bonds/Common School Construction Account (Cash)

SCAP – Enhancement $93.0 $0.0Space Study $0.2 $0.0Small Repair $5.0 $10.0 Bonds

Energy Grants $20.0 $0.0Facility Safety Net $80.0 $0.0Seismic Assessment $0.5 $0.0Skill Centers - Minors

$5.7 $3.0 Bonds

Skill Centers – Majors & Satellites

$80.4 $0.0

Aviation High School $0.0 $2.0 Bonds

Administration $3.9 $3.9 Common School Construction Account

TOTAL $948.8 $505.5 9


Slide 1004/22/23


– OSPI requested SCAP obligations be fully funded.

– OSPI’s request was heavily reliant on state general obligation bonds, which depend on state debt capacity.

• Do not expect General Fund-State Transfers to the Common School Construction Account (CSCA).

– Lottery redirected to Higher Education in 2010. – No agency savings projected for the 2009-11 biennium.


Slide 1104/22/23


State Debt or Bonding Capacity– Current capacity ranges:

• From low in November 2010 Bond Model = $161 million.

• To high in Governor’s Bond Bill = $900 million.

– $3.2 billion in bonds requested by all agencies.


Slide 1204/22/23


State Bond Capacity

1.9

1.2 1.1

0.161

3.2

2009-11 September forecast

Recent passage of Inititive 1107

November forecast

Requests so far!

Debt Capacity Compared to Requests(in Billions)


Transportation Update


Slide 1404/22/23

Student Transportation: Overview

• Governor’s Budget Proposal.• What the numbers mean to

you.• How the money will be

distributed.• System Changes.


Slide 1504/22/23

Student Transportation:Budget Proposal

• Funding System.• The Good News

– Commitment to implement in 2011-12.• The Other News

– Source of additional funding is a result of a major restructuring of the bus replacement system.


Slide 1604/22/23

Student Transportation: How Much?

• Figures are in the pivot table. • Depreciation estimate for next year

– Current system.– Governor’s proposal.

• Lots of assumptions– Underfunding for current year.– Bus prices.


Slide 1704/22/23

Student Transportation:2011-12 Operations Allocation

• Pay at 2010-11 amount until February.

• Adjustment for new calculation process.

• Adjustment for amount of funding available.

• No recalculation after the Spring report.


Slide 1804/22/23

New Transportation Funding Model: Transition Process

• Hold harmless– No one gets less than 2010-11.

• Additional Funding– Estimate based on the amount of funding

available from the change in depreciation.– Best guess is districts would receive about

1/3 of their underfunding in 2009-10.


Slide 1904/22/23

New Transportation Funding Model: OSPI Rules Status

• Initial rules hearing was December 8th.

• OSPI in process of reviewing language– Reword several sections in response to

comments and concerns.– Will schedule another hearing on

revisions.


Slide 2004/22/23

Student Transportation:System Changes

• Bus Replacement System– May result in unintended consequences.

• Maintenance Costs.• Fleet Modernization.

• Regional Coordinator Program Eliminated– Would eliminate training and support for

the new funding system.– School bus driver training, Management

training, WSP inspection process, etc.


Early Action and Governor’s Proposals -

Update

2011 FY SUPPLEMENTAL BUDGET – ENACTED & GOVERNOR’S PROPOSED


Slide 2304/22/23

2011 FY Supplemental Budget: Eliminated

ProgramsProviso

Original Funding

Enacted Supp. Cut Balanc

e

Governor’s Proposed

Project Citizen 25 -13 12 -Support for CTE Student Org. 97 -49 48 -

Special Service Pilot 1,329 -665 664 -Building Bridges 337 -112 225 -Dyslexia Pilot Program 75 -38 37 -Teaching as a Profession Pilot 75 -75 - -

BEST Program 2,000 -1,000 1,000 -Superintendent/Principal Internship 530 -265 265 -


Slide 2404/22/23

2011 FY Supplemental Budget: Eliminated

ProgramsProviso

Original Funding

Enacted Supp. Cut

Balance


Leadership Academy 900 -450 450 -Focused Assistance 1,523 -762 761 -STEM Lighthouses 300 -75 225 -CTE Startup Grants 612 -456 156 -Reading Corps 1,056 -528 528 -Summer Voc. Skill Center 2,385 - 2,385 -1,785

Readiness to Learn 3,594 - 3,594 -1,797K-4 Class Size Reduction 81,512 -39,424 42,088 -42,088Highly Capable Program 8,903 - 8,903 -7,104Centrum 170 - 170 -11WA Imagination Network 90 - 90 -6


Slide 2504/22/23

2011 FY Supplemental Budget: Reduced Programs

ProvisoOrigina

l Fundin

g

Enacted Supp. Cut

Balance


College Bound Outreach 1,000 -500 500 -300Civil Rights Monitoring 133 -44 89 -Achievement Gap Com. 100 -6 94 -Non-Violence Training 50 -3 47 -School Nurse Corps 2,541 -160 2,381 -Safety Center 96 -6 90 -School Safety Training 100 -6 94 -K-20 Network 1,745 -110 1,635 -Navigation 101 3,120 -196 2,924 -LASER/Pacific Science Cen. 395 -198 -197

Education Technology Supp. 1,959 -123 1,836


Slide 2604/22/23

2011 FY Supplemental Budget: Reduced and Added

FundingProviso Origina

l Fundin

g

Enacted Supp. Cut

Balance


Levy Equalization 286,051 - 286,051 -18,038Extended Day Skill Center 485 - 485 -30

Transportation Coordinators 892 - 892 -56

June Payment Delay -253,000June Contingency Fund 13,000June Contingency Fund 15,000


Slide 2704/22/23

Governor’s Supplemental Cut of National Board

Bonuses• Governor’s across the board cut of 6% is still in

effect.• Districts should continue to claim their

bonuses.• OSPI will allocate funding on a first come first

serve basis .• When Governor repeals the 6% cut, OSPI will

pay out the rest of the bonuses to districts who have submitted claims up to the total appropriation authority.


Slide 2804/22/23

K-4 Class Size & Highly Capable Retroactive

Elimination• Governor Proposals cuts programs starting in

September.

• If adopted by Legislature, OSPI will adjust district apportionment payments to reflect cuts.

• OSPI will transfer Highly Capable program to General Apportionment in order to then make adjustments to district apportionment.

GOVERNOR’S PROPOSED 2011-13 BUDGET


Slide 3004/22/23

2011-13 Proposed Governor’s Budget:

Eliminated ProgramsProviso 2011-12

FY Maint.2012-13

FY Maint.Governor’s

Total Biennial Cut

Project Citizen 25 25 -50Support for CTE Student Org. 97 97 -194

Special Service Pilot 1,329 1,329 -2,658Building Bridges 337 337 -674Dyslexia Pilot Program 75 75 -150Teaching as a Profession Pilot 75 75 -150

BEST Program 2,000 2,000 -4,000Superintendent/Principal Internship 530 530 -1,060


Slide 3104/22/23



FY Maint.2012-13

FY Maint.

Governor’s Total Biennial Cut

Middle & High Applied Math 139 139 -278

Leadership Academy 900 900 -1,800Focused Assistance 1,523 1,523 -3,046STEM Lighthouses 150 150 -300CTE Startup Grants 912 912 -1,824Reading Corps 1,056 1,056 -2,112Readiness to Learn 3,594 3,594 -7,188Highly Capable Program 7,343 9,469 -16,812Centrum 170 170 -340WA Imagination Network 90 90 -180


Slide 3204/22/23



Maint.2012-13 Maint.

Governor’s Total Biennial Cut

Civil Rights Monitoring 133 133 -266Achievement Gap Com. 118 118 -236Non-Violence Training 50 50 -100LASER/Pacific Science Cen. 198 197 -395

Education Technology Supp. 979 979 -1,958

Pre-Apprenticeship Grants 175 175 -350

Summer Voc Skill Center 2,385 2,385 -4,770Readiness to Learn 3,594 3,594 -7188Transportation Coordinators 892 892 -1,784

Bus Depreciation 55,000 53,000 -95,622


Slide 3304/22/23

2011-13 Proposed Governor’s Budget: Suspended Funding

Proviso2011-12

FY Maint.

2012-13 FY

Maint.

Governor’s Total Biennial

CutDev. Diagnostic Assessments 2,200 2,200 -4,400

I-732 COLA 60,022 193,264 -253,286I-728 378,628 481,596 -860,224National Board Bonuses 34,454 44,236 -78,690Challenging School Bonus 9,372 11,454 -20,826


Slide 3404/22/23

2011-13 Proposed Governor’s Budget: Reduced Programs

Proviso 2011-12 FY Maint.

2012-13 FY

Maint.

Governor’s Total Biennial

Cut 2011-13 Total w/ Gov. Reduction

Full Day Kindergarten 48,210 50,858 -10,568 (Case Load Adj.)Freeze Steps on 2011 Salary Schedule * * -70,484 *

College Bound Outreach 1,000 1,000 -200 1,800

K-20 Network 1,745 1,745 -349 3,141Navigation 101 3,120 3,120 -392 5,848Mentoring of WA Achievers 750 750 -150 1,350

Math and Science PD 1,800 1,800 -422 3,178COE Payment * * -7,383 *Restructure COE * * -7,138 ** Working on Calculation


Slide 3504/22/23

2011-13 Proposed Governor’s Budget: Adds

Proviso 2011-12 FY 2012-13 FY Total

Implementation of New Transportation Funding Model 40,000 50,000 90,000

Principal and Teacher Evaluation 1,500 1,500 3,000

Incentive for Evaluation System - 15,000 15,000


Slide 3604/22/23

Levy Equalization 2010-2011 School Year

• The Governor’s supplemental request continues to current levy equalization model but makes a reduction of 6.3% or $18 million.

• The impacts to local districts are shown on the SAFS 2011 Supplemental Budget website under the “across the board 6.287%” link. Across the Board Cuts by School District

http://www.k12.wa.us/safs/Misc/BudPrep10/6%25%20Across-the-Board%20Cuts.xlsx


Slide 3704/22/23

Levy Equalization 2011-2013

• The Governor’s 2011-13 biennial request equates to a reduction of 6.3%.

• New “Four Tier” Model with property poor districts receiving the smallest reduction in LEA.– Over 300% above state average = 1% cut.– 175% to 300% = 3% cut.– 125% to 175% = 5% cut.– 100% to 125% = 28.75% cut.


Slide 3804/22/23


Slide 3904/22/23

Levy Equalization 2011-13• No specific changes in levy base

calculations were proposed.– Reductions in K-3 this year will not reduce the

levy base.• Levy Equalization continues to be

calculated based on 14%.• The Per Pupil Inflator in the Governor’s

budget is 3%.•


Slide 4004/22/23

Ed Jobs• Ed Jobs Funding

– $208K Total. Allocation by district is on our website.

– The Legislative Special Session directed that these funds will be deducted from General Apportionment.


Slide 4104/22/23

Ed Jobs– Deductions will be made over five months -

January through May. 20% will be deducted each month.

– Amount will be reflected on your 1191 Report on Line C.9 – “Adjustment for Prior Year.”

– Levy Base – Uses the total Guaranteed Entitlement from Line A.14. Levy base would not double count Ed Jobs funds discreetly since it is included in Line A.14.


Slide 4204/22/23

Apportionment Delay• Governor’s Supplement proposes

that $253,000,000 of the June Apportionment payment will be delayed until July 1st.

• $13 million set-aside for financial assistance to “cash poor districts” to be administered by OSPI.


Slide 4304/22/23

Financial Assistance Loans• Two discreet amounts in the

Governor’s Supplemental Budget:– $15 million for district-needed

assistance due to budget cuts.– $13 million for district due to

Apportionment payment delay.


Slide 4404/22/23

Financial Assistance Loans• Monies provided are an advance on

Apportionment to be repaid by June 2012.

• Process of application is expected to be similar to the apportionment advance process detailed in the ABFR handbook.

• Actual application process has not yet been developed.


Slide 4504/22/23

Financial Assistance Loans• Applications for June loans will require a

number of assurances including one from the county treasurer that the county is unable to provide a loan or other assistance to the school district to accommodate the proposed one-day delay in June apportionment payment.

• June applications are tentatively required to be filed with this office by mid-April.


Slide 4604/22/23

Financial Assistance Loans• OSPI will develop the application

process and provide more information in February.


Slide 4704/22/23

Prototypical Funding Formula

• OSPI has provided on-site training on the new SHB 2776 formula at all ESD locations.

• All biennial budgets are expected to adopt the new prototypical funding formulae. The governor’s budget has adopted this.


Slide 4804/22/23


• The following materials are available on our website under the SHB2776 link.– Excel Beta models showing calculations

and comparison at the district and school level.

– OSPI’s PowerPoints used during training.


Slide 4904/22/23


• The values used in transitioning to the new prototypical funding formula were intended to be cost neutral.

• Some breakage occurred; positive and negative.

• The Governor’s proposed biennial budget provides funding for districts losing dollars.


Slide 5004/22/23

The “John Jenft” Sheet• The change to the new prototypical

funding formula provides many-many more variables.

• The revised John Jenft sheet is on our website and now encompasses 4 pages.

• The first page covers the “typical” areas, the remaining three cover the full range of known variables that legislation could address.


Slide 5104/22/23

F-203• The system has been completely

rewritten to address the prototypical model.

• The F-203 will be released as an “X” option next week.

• We will be providing K-20 training for each ESD region. See our website for the current schedule.


Slide 5204/22/23

Pivot Table Release• Thank you for your patience! It was

appreciated.• The table reflects the new prototypical model

calculations.• The table does not project a “maintenance”

level but rather a 2011-12 base level that reflects the special session changes and other legal changes that will affect 2011-12.

• The Pivot Table is now available on our website.


QUESTIONS?

K-20 on Special Session and Governor’s FY11 Supplemental and 2011-13 Budget Proposal

Documents

Transcript of K-20 on Special Session and Governor’s FY11 Supplemental and 2011-13 Budget Proposal