2011- 12 PRELIMINARY BUDGET...Updated 6 -3-11 T ARGETED A REA R EDUCTIONS Targeted Area Reductions 7...
Transcript of 2011- 12 PRELIMINARY BUDGET...Updated 6 -3-11 T ARGETED A REA R EDUCTIONS Targeted Area Reductions 7...
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2011-12 PRELIMINARY BUDGETCentral Kitsap School District
June 22, 2011
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AG
END
A
Agenda
• Background Facts
• Summary of 2011-12 General Fund Budget
• Loss of Federal Heavy Impact Update
• Projected 2012-13 General Fund Budget
• Other Funds
• Way Ahead
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BA
CKGRO
UN
DFA
CTSBackground Facts
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•State tools to build budget delivered June 15
•Numbers are still being refined
•2011-12 move to new state allocation model
•Alternative Learning Experience (ALE) and changes to Running Start have unknown impacts
•Current year cash flow provides difficult projection of Ending Fund Balance
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SUMMARY OF GENERAL FUND 2011-12 BUDGET
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PRELIM
INARY
BU
DG
ETR
ECOM
MEN
DA
TION
S2011-12 Preliminary Budget Recommendations
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• Limit operating adjustments to maintain current programs except as noted below.
• Review each opening (classified, certified and administrative) to align staffing with projected enrollment. Limit additional hiring until the actual enrollment numbers are confirmed in August and September.
• Reduce the General Fund budget $3,205,808 by making the changes outlined on the following Slide 8: 2011-12 Preliminary Budget Recommendation
• Maintain as much of the Federal Contingency Reserve as possible following the current loss of Heavy Impact Funding.
• Continue all efforts to resume eligibility for federal Heavy Impact Aid funding.
• Continue the pursuit of Energy Conservation grants and upgrades.
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GEN
ERALFU
ND
RED
UCTIO
NS
General Fund Reductions
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DESCRIPTION FTEESTIMATE SAVINGS IMPACT
Community Schools Secretary (reduced 2010-11) 0.5 $22,500 Slows work, leave coverage challenge
Energy Savings (Conservation and Reduced Computers) $96,000 None due to energy efficiency
Employee Access (not printing earnings statements) $4,000 Employees print own statementsReduced Computer Fees (software, licensing) $31,800 Working toward district ratios
Reduce Payroll Position 0.5 $22,000
Lowered level of service – retirement assistance will be handled by Department
of Retirement System
Maintenance Secretary (reduced 2010-11), Other Maintenance Reductions 0.3 $19,000
Includes printer energy savingsReduction in FTE
Curriculum / Alternative Reductions 1.6 $128,000Reduce Curriculum 1.1 FTE, Alternative
programs 0.5 FTEReduced Staff Development – DIS $8,508 Reduced days and opportunities for training
Total $331,808
Updated 6-3-11
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TA
RGETED
AREA
RED
UCTIO
NS
Targeted Area Reductions
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Former I-728 and K-4 Staffing Ratio 2010-11 Approx Expenditures
PreliminaryReductions for
2011-12K-6 Class Size (I-728) $1,800,000 Interventions $500,000 Diversity $80,000 Summer Academy Intervention $155,000 ($17,000)All Day Kindergarten $750,000 Eastside/Westside Mentoring $50,000 ($7,000)Extended Ed Trans/Culm. Projects $36,000 ($4,000)Building Targeted Assistance $132,000 ($132,000)
K-4 Enhanced Staffing Ratio $1,105,000 ($1,105,000)
TOTAL $4,608,000 ($1,265,000
State Provided $6,700,000 to District in 2007-08. No funding ($0) provided in 2011-12
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2011-12 PRELIM
INA
RYB
UD
GET
RECO
MM
END
ATIO
N2011-12 Preliminary Budget Recommendation
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Reductions Final BudgetSpecial Ed (Safety Net, Medicaid)
Suspend I-728Eliminate K-4 Enhanced Staffing Ratio
Reduce Alternative Learning Experience 15%Eliminate Stimulus Funding
SUBTOTAL ($2,048,507)
Reduce Salary Allocations for Certificated, Classified, & Administrator Staff ($1,100,000)
TOTAL BUDGET SHORTFALL ($3,148,507)RECOMMENDED SOLUTIONS
Staff Salary Adjustments due to State Reductions $1,100,000Staffing Adjustments due to Enrollment $509,000
General Fund Reductions $203,808Targeted Reductions $1,265,000
Staffing Adjustments (Curriculum, Alternative Programs) $128,000TOTAL POSSIBLE SOLUTIONS $3,205,808
REVISED BUDGET SHORTFALL $57,301
Continued funding provided for:Gifted National Board Certified Bonus, Local Effort Assistance (LEA) or Levy Equalization
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IMPLICATIONS OF LOSS OF FEDERAL HEAVY IMPACT AID
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UPD
ATE: H
EAVY
IMPA
CTA
IDQ
UA
LIFICATIO
NUpdate: Heavy Impact Aid Qualification
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Continued Efforts with Department of Education
Cooperative and ResponsiveFinal Determination…
OptionsAppeal “Final Determination”Legislative AmendmentReauthorizationResume Eligibility
Loss of Heavy Impact Funds
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LOSS
OF
HEA
VYIM
PACT
FUN
DS
2010-11 AN
D2011-12
Loss of Heavy Impact Funds 2010-11 and 2011-12
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$ Received in Millions General Fund
CapitalProjects
Total
Regular Impact Aid
Heavy Impact Aid
Heavy Impact Aid
All Impact Aid
2009-10 4.4 4.1 3.0 11.5
2010-11 4.2 0 0 4.2
2011-12 4.2 0 0 4.2
Budget Planned For In $ Millions
2009-10 4.4 4.1 2.5 11.0
2010-11 4.2 4.3 2.5-3.5 11.0-12.0
2011-12 4.2 4.3 2.5-3.5 11.0-12.0
Total Loss of Almost $8 million April 2010 and Another Potential $8 million April 2011:
General Fund and Capital Projects
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TIM
ELINE
FOR
RECEIVIN
GH
EAVY
IMPA
CTD
OLLA
RS: “Q
UA
LIFICATIO
NO
PTION
S”Timeline for Receiving Heavy Impact Dollars:
“Qualification Options”
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Dept of Ed Review Agreement
Legislative Amendment Passes
Reauthorization of ESEA (newlanguage)
Resume Eligibility Under Current Regulations
2010-11 X X
2011-12 X X
2012-13 X X Action Completed
2013-14 X X
2014-15 X X X
2015-16 X X X
“X” = remain qualified
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Estimated 2010-11 Ending Fund Balance
Projected Ending Fund Balance 10-11 $ 11,500,000
Less HI Revenue $ (4,400,000)
Revised Ending Fund Balance 10-11 $ 7,100,000
Estimated 2011-12 Beginning Fund Balance
Inventory & Insurance $ 871,450
Carryover Balances $ 1,779,740
3% Reserve $ 3,239,481
Federal Contingency Reserve $ 1,333,710
Estimated Beginning Fund Balance 11-12 $ 7,224,381
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Loss of Federal Heavy Impact Aid and Change to Federal Contingency Reserve
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EstimatedHeavy Impact With 2011
and 2012 PaymentFund Balance
2011-12
Estimated Heavy Impact Without 2011 or 2012
Payment
$ 1,779,740 Estimated Carryover Balances $ 1,779,740
$ 871,450 Inventory & Insurance $ 871,450
$ 3,239, 481 3% Reserve $ 3,239,481$ 1,333,710 Federal Contingency Reserve $ 1,333,710
$ 7,224,381 Beginning Fund Balance 11-12 $ 7,224,381
$ 116,182,714 Revenues $ 107,982,714
$(113,604,840) Expenditures $(113,604,840)
$1,850,000 Estimated Funds Not Expended $ 1,850,000
$ 11,652,255 Projected Ending Fund Balance 11-12 $ 3,452,255
$ 2,150,000 Carryover Balances $ 425,977
$ 1,021,450 Inventory & Insurance $ 621,450
$ 3,485,481 3% Reserve $ 3,218,141
$ 4,400,323 Federal Contingency Reserve $ -
$ 595,001 Fund Balance Over (Under) Recommendation $ (813,313)14
Fund Balance: Heavy Impact Aid Comparisons
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Postpone Filling 1.0 Maintenance Technician $65,000
Move 0.5 Business FTE to Capital Projects $25,000
Suspend 20% Intervention Budget $100,000
Grants and other working reductions $208,000
Explore Additional Reduced Curriculum FTE $88,000
Suspend Cafeteria Table Replacement $30,000
Suspend Professional Development $50,000
Title II and Grants Excepted
Suspend or Reduce COE Support in GF $25,000
Suspend/Reduce Curriculum Materials $40,000
Limit and or Reduce NERCS $40,000
Suspend Intervention support for
Summer Academy 2012 $138,000
Total $812,000
Beginning “Considerations”: Potential Additional Reductions
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OTH
ERC
ON
SIDERA
TION
S
Other Considerations
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• Limit and or Restrict Spending
• Limit Posting of Vacant Positions
• Maintain 3% Reserve
• Identify Reductions for 2012-13 to Offset Loss of Heavy Impact
•Review Monthly and Revise Estimates Following End of Year Report in November
•Potential Budget Revision During the Year
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PRO
JECTED2012-13 B
UD
GET
Projected 2012-13 Budget
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Carryforward from 2011-12 $ (3,772,126)2012-13 Basic Ed Enrollment Revenue Decrease $ (524,187)2012-13 Special Ed Enrollment Revenue Decrease $ (61,216)LEA Decrease $ (190,000)
Levy Increase $ 862,285 Staffing Adjustment for Enrollment
Operating Adjustments:Utilities $ (90,000)
S&B Rollup $ (75,000)Elections/Strategic Planning $ (15,000)
Insurance $ (35,000)State and Federal Reductions
Title I Stimulus Funds $ (188,000)Other State Reductions???
SUBTOTAL $ (4,088,244)
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TA
RGETED
AREA
RED
UCTIO
NS
Targeted Area Reductions Possible 2012-13
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Former I-728 and K-4 Staffing Ratio
2011-12 Approx
Expenditures
AdditionalReductions Considered
Possible 2012-13
ReductionsK-6 Class Size (I-728) $1,800,000 ($1,800,000)Interventions $500,000 ($100,000) ($400,000)Diversity $80,000 ($80,000)Summer Academy
Intervention $138,000 ($138,000)All Day Kindergarten $750,000 ($750,000)Eastside/Westside Mentoring $43,000 ($43,000)Extended Ed Trans/Culm.
Projects $32,000($32,000)
Building Targeted Assistance $0
K-4 Enhanced Staffing Ratio $0
TOTAL $3,343,000 ($238,000) ($3,105,000)
State Provided $6,700,000 to District in 2007-08. No funding ($0) provided in 2011-12
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PO
SSIBLEB
UD
GET
SOLU
TION
S2012-13
Possible Budget Solutions 2012-13
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Possible 2012-13 Reductions (with current projections)
Enrollment Decline Reductions $ 269,250
Targeted Reductions $ 3,343,000
Title I Reductions $ 188,000
General Fund Reductions $ 300,000
Total $ 4,100,250
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SUMMARY OF 2011-12 REMAINING FUNDS
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BU
DG
ETSU
MM
ARY
Capital Projects Fund
Capital Projects Fund: For the purchase of land, the construction and equipping of new facilities, major facility renovations, system repairs and corrections, and implementation of technology systems.
2009-10* 2010-11 2011-12
Beginning $10,061,641 $11,546,858 $11,000,031
Revenues $4,918,148 $3,457,209 $6,105,480
Transfers $0 $2,400,000 $188,642
Expenditures ($2,953,271) ($8,952,918) ($10,466,748)
Ending $12,026,518 $8,451,149 $6,827,405
* Actual
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BU
DG
ETSU
MM
ARY
Transportation Vehicle Fund and Debt Service Fund
Transportation Vehicle Fund : For the purchase and repair of equipment approved for pupil transportation.
2009-10* 2010-11 2011-12
Beginning $399,962 $201,680 $137,980
Revenues $788,006 $411,623 $577,297
Expenditures ($979,741) ($612,000) ($710,000)
Ending $208,227 $1,303 $5,277
* Actual 22
Debt Service Fund: Covers the principal and interest payments on outstanding bonds.
2009-10* 2010-11 2011-12
Beginning $6,512,284 $5,574,633 $2,084,432
Revenues $9,823,159 $6,359,542 $1,550,645
Expenditures ($10,695,480) ($9,896,313) ($3,106,281)
Ending $5,639,963 $2,037,862 $528,796
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BU
DG
ETSU
MM
ARY
Associated Student Body Fund
Associated Student Body Fund: For all student activities’ funds, such as clubs, student government, and some athletic programs.
2009-10* 2010-11 2011-12
Beginning $1,080,633 $742,934 $885,933
Revenues $1,490,748 $2,385,596 $2,337,728
Expenditures ($1,459,164) ($2,383,839) ($2,256,633)
Ending $1,112,217 $744,691 $967,028
* Actual
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NEXT
STEPSWay Ahead
• Continue budget review, revisions and edits July 2010
• Forward Preliminary Budget to OESD for review July 11th
and comment
• Updated Preliminary Budget and Formal Budget August 10th
Adoption Hearing
• Approval of 2011-2012 Budget August 24th
• File final budget with OESD September 2nd
• Review and Finalize 2012-2013 Budget September 2011Development Strategy
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