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 204/10/23

Questions during the K-20??

• ESD sites are interactive and able to ask questions.

• All other sites: email questions toJolynn.berge@k12.wa.us

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 304/10/23

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

Office of Superintendent of Public InstructionFinancial Resources and Governmental Relations

Capital Update

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 504/10/23

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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 604/10/23

2011-13 K-12 Capital Budget

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 704/10/23

2011-13 K-12 Capital Budget

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 804/10/23

2011-13 K-12 Capital Budget

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 Reques

t

Governor Proposal

Fund Source

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

SCAP – Enhancement $93.0 $0.0

Space Study $0.2 $0.0

Small Repair $5.0 $10.0 Bonds

Energy Grants $20.0 $0.0

Facility Safety Net $80.0 $0.0

Seismic Assessment $0.5 $0.0

Skill 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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1004/10/23

2011-13 K-12 Capital Budget

– 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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1104/10/23

2011-13 K-12 Capital Budget

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1204/10/23

2011-13 K-12 Capital Budget

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)

Office of Superintendent of Public InstructionFinancial Resources and Governmental Relations

Transportation Update

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1404/10/23

Student Transportation: Overview

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

you.• How the money will be

distributed.• System Changes.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1504/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1604/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1704/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1804/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 1904/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2004/10/23

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.

Office of Superintendent of Public InstructionFinancial Resources and Governmental Relations

Early Action and Governor’s Proposals -

Update

2011 FY SUPPLEMENTAL BUDGET – ENACTED & GOVERNOR’S PROPOSED

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2304/10/23

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 -

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2404/10/23

2011 FY Supplemental Budget: Eliminated

ProgramsProviso

Original Funding

Enacted Supp. Cut

Balance

Governor’s Proposed

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 -1,797

K-4 Class Size Reduction 81,512 -39,424 42,088 -42,088

Highly Capable Program 8,903 - 8,903 -7,104

Centrum 170 - 170 -11

WA Imagination Network

90 - 90 -6

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2504/10/23

2011 FY Supplemental Budget: Reduced Programs

Proviso

Original

Funding

Enacted Supp. Cut

Balance

Governor’s Proposed

College Bound Outreach 1,000 -500 500 -300

Civil 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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2604/10/23

2011 FY Supplemental Budget: Reduced and Added

FundingProviso Origina

l Fundin

g

Enacted Supp. Cut

Balance

Governor’s Proposed

Levy Equalization 286,051 - 286,051 -18,038

Extended Day Skill Center

485 - 485 -30

Transportation Coordinators

892 - 892 -56

June Payment Delay -253,000

June Contingency Fund 13,000

June Contingency Fund 15,000

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2704/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 2804/10/23

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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3004/10/23

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 -50

Support for CTE Student Org.

97 97 -194

Special Service Pilot 1,329 1,329 -2,658

Building Bridges 337 337 -674

Dyslexia Pilot Program 75 75 -150

Teaching as a Profession Pilot

75 75 -150

BEST Program 2,000 2,000 -4,000

Superintendent/Principal Internship

530 530 -1,060

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3104/10/23

2011-13 Proposed Governor’s Budget:

Eliminated ProgramsProviso

2011-12 FY Maint.

2012-13 FY

Maint.

Governor’s Total Biennial Cut

Middle & High Applied Math

139 139 -278

Leadership Academy 900 900 -1,800

Focused Assistance 1,523 1,523 -3,046

STEM Lighthouses 150 150 -300

CTE Startup Grants 912 912 -1,824

Reading Corps 1,056 1,056 -2,112

Readiness to Learn 3,594 3,594 -7,188

Highly Capable Program 7,343 9,469 -16,812

Centrum 170 170 -340

WA Imagination Network

90 90 -180

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3204/10/23

2011-13 Proposed Governor’s Budget:

Eliminated ProgramsProviso

2011-12 Maint.

2012-13 Maint.

Governor’s Total Biennial Cut

Civil Rights Monitoring 133 133 -266

Achievement Gap Com. 118 118 -236

Non-Violence Training 50 50 -100

LASER/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 -4,770

Readiness to Learn 3,594 3,594 -7188

Transportation Coordinators

892 892 -1,784

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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3304/10/23

2011-13 Proposed Governor’s Budget: Suspended Funding

Proviso2011-12

FY Maint.

2012-13 FY

Maint.

Governor’s Total Biennial

Cut

Dev. Diagnostic Assessments

2,200 2,200 -4,400

I-732 COLA 60,022 193,264 -253,286

I-728 378,628 481,596 -860,224

National Board Bonuses 34,454 44,236 -78,690

Challenging School Bonus 9,372 11,454 -20,826

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3404/10/23

2011-13 Proposed Governor’s Budget: Reduced Programs

Proviso2011-12 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 3,141

Navigation 101 3,120 3,120 -392 5,848

Mentoring of WA Achievers

750 750 -150 1,350

Math and Science PD 1,800 1,800 -422 3,178

COE Payment * * -7,383 *

Restructure COE * * -7,138 *

* Working on Calculation

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3504/10/23

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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3604/10/23

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

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3704/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3804/10/23

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 3904/10/23

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%.

•

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4004/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4104/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4204/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4304/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4404/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4504/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4604/10/23

Financial Assistance Loans

• OSPI will develop the application process and provide more information in February.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4704/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4804/10/23

Prototypical Funding Formula

• 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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 4904/10/23

Prototypical Funding Formula

• 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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 5004/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 5104/10/23

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.

Financial Resources and Governmental RelationsOffice of Superintendent of Public Instruction

Slide 5204/10/23

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.

Office of Superintendent of Public InstructionFinancial Resources and Governmental Relations

QUESTIONS?