South Kitsap School District 2013-2014 Preliminary Budget July 17, 2013 Sandra Rotella SFO CPA...
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Transcript of South Kitsap School District 2013-2014 Preliminary Budget July 17, 2013 Sandra Rotella SFO CPA...
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)
DRAFT - 2013-14 Preliminary Budget
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.
DRAFT - 2013-14 Preliminary Budget
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
DRAFT - 2013-14 Preliminary Budget
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
DRAFT - 2013-14 Preliminary Budget
Enrollment (Continued)
DRAFT - 2013-14 Preliminary Budget
03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14
Enroll-ment
10507.62
10427.27
10219.77
9992.99 9933.87 9759.25 9751.44 9515.85 9406.565
9212 9087
8,250
8,750
9,250
9,750
10,250
10,750
South Kitsap School DIstrict No. 402Enrollment Data2003-04 - 2013-14
Stu
den
t F
TE
Actual vs. Budgeted Enrollment
DRAFT - 2013-14 Preliminary Budget
08-09 09-10 10-11 11-12 12-13 13-14
Actual 9759.25 9751.44 9515.85 9406.565 9212 0
Budget 9885 9665 9688 9297 9328 9087
8,575.00
8,725.00
8,875.00
9,025.00
9,175.00
9,325.00
9,475.00
9,625.00
9,775.00
9,925.00
South Kitsap School DistrictActual vs. Budget Student FTE
Stu
den
t F
TE
Student Enrollment Forecast(125 Fewer FTE for 2013-14)
Grade2012-13Budget
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*
DRAFT - 2013-14 Preliminary Budget
*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.
DRAFT - 2013-14 Preliminary Budget
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 Elementary
Orchard Heights Elementary
DRAFT - 2013-14 Preliminary Budget
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
DRAFT - 2013-14 Preliminary Budget
State Budget Highlights (continued)
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
DRAFT - 2013-14 Preliminary Budget
State Budget Highlights (continued)
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
DRAFT - 2013-14 Preliminary Budget
State Budget Highlights (continued)
• 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
DRAFT - 2013-14 Preliminary Budget
SKSD Fund Balance Forecast
2011-12Actual
2012-13Estimated
Actual
2013-14Preliminary
Budget
Beginning 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
DRAFT - 2013-14 Preliminary Budget
* The Beginning Fund Balance is actual and matches the Ending Fund Balance from 2011-12
2013-2014 General Fund Preliminary Budget - Estimate
Beginning Reserves
Carryover 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 Activity
Total 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 Reserves
Reserve 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
DRAFT - 2013-14 Preliminary Budget
Estimated Revenue by Source
Preliminary Budget 2013-14
By Source Amount
Local 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) 8,524,461
Other Revenue 5,000
Total Revenue $95,796,601
DRAFT - 2013-14 Preliminary Budget
Changes in Revenue – Estimate
Budget Revenue 2012-13 to Preliminary Budget 2013-14
By Source2012-13 Budget
compared to 2013-14
Local 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
DRAFT - 2013-14 Preliminary Budget
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) 2,221,366
Community ServicesSupport ServicesTransfer to Debt ServiceTransfer to Capital Projects
669,32920,582,957
129,4581,221,373
Total Estimated Expenditures 96,625,341
DRAFT - 2013-14 Preliminary Budget
DRAFT - 2013-14 Preliminary Budget
Program
2012-13 Budget Compared to 2013-14
Budget
Regular Instruction $ 288,144
Special Education 928,281
Vocational Education – Instruction 170,719
Skills Center – Instruction 68,000
Compensatory Education – Instruction 385,576
Other 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 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
DRAFT - 2013-14 Preliminary Budget
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)
DRAFT - 2013-14 Preliminary Budget