BUDGET HEARING AUGUST 20, 2015

Update Since the Hearing AVID ◦Additional staff professional development training ◦Building site plans for AVID implementation ◦Alignment to teaching best practices ◦Increased rigorous coursework ◦$60,000 increase Parent Involvement and partnership ◦$35,000 increase to Partnership office Disproportionate discipline ◦New grant dollars City of Tacoma ◦Developing common vernacular and standardizing the data ◦Increased contact with parents/guardians ◦Updating of internal policies 2

Enrollment Trends… LAST 10 YEARS, ENROLLMENT DECLINED: = Kindergarten:360 students 1-5:579 students 6-8: 1,060 students 9-12:1,696 students NEXT 10 YEARS, ENROLLMENT INCREASES: = 1,033 Kindergarten:107 students 1-5:440 students 6-8: 436 students 9-12: 50 students 3

Program New Revenues (in millions) New Expenditures (in millions) Basic Education$20.450$ Categorical Programs$6.895$6.490 Local Funds$3.052 Fund Balance Reallocation$0.000($2.000) Total$ General Fund Budget Impacts

Basic Education & Local Expenditure Impacts Expenditure Increase / (Decrease)(in millions) Salary Increases and Union Negotiations$9.950 Retirement & health$4.450 Class Size adjustments, K-3 and High Poverty$2.200 Curriculum and Instruction on-going funding$1.000 Technology on-going funding$1.000 Transportation funding adjustment$0.800 School support staff adjustments$1.000 Educational Program Enhancements$2.057 Sheltered programs moved to basic education$2.000 Operational Changes$1.450 Total Impact$

General Fund Budget Revenues: $384,654,272 o $30,397,181 increase from Expenditures: $390,922,149 o $26,963,136 increase from Fund Balance usage: $6,267,877 o $3.43 million decrease from — $2.00 million “sheltered” programs — $2.07 million carryover allocations — $2.20 million curriculum & instruction 6

Other Funds 7 Debt Service: — Budgeted Expenditures: $59,579,125 ◦Fund used to manage bond related debt obligations ◦Currently the district has $300.3 million of outstanding bonds Associated Student Body: — Budgeted Expenditures: $3,881,670 ◦Special revenue fund for holding student related fees ◦Funds are distributed exclusively under the guidance of the student body Transportation Vehicle Fund: — Budgeted Expenditure: $1,610,000 ◦For the purpose of purchasing vehicles for student transportation ◦Planning purchase of 13 buses during

Other Funds (continued) 8 Capital Projects: — Budgeted Expenditures: $177,850,000 — Fund for acquisition or construction of major capital facilities, technology upgrades and small capital projects — Current major projects include: SAMI –Phased opening September Wilson High School Phase II – Opening September 2016 McCarver Elementary –Opening September 2016 Wainwright –Opening September 2016 Stewart Middle School –Opening September 2017 Arlington Elementary – Opening September 2017

Union Impacts 9 Union Category Adopted FTE Projected FTE Variance Bus Drivers Non-represented Custodians Child Nutrition (7.19) Maintenance Office Professionals & Professional Technical Principals Para Professionals Security Superintendent Teachers 2, , Grand Total 3, ,

Budget by Strategic Plan Priority GoalExpenditures% of Budget Academic Excellence$279,077, % Early Learning$11,475,0372.9% Safety$8,137,2632.1% Partnerships$834,0780.2% Support Services$91,398, % 10

Multi Year Budget Planning: Planning for the Future : Reduce fund balance reliance by $2 million Final allocation to fund Curriculum & Instruction of $1.0 million Begin technology allocation to fund additional technology of $1.0 million Debt and Fiscal reserve amount remains at 5% Future Considerations: Planned increases for McCleary until 2018 Eliminate fund balance reliance by Maintenance level budget established 11

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Looking into the Future: Additional cost-of-living adjustments and underfunding of salaries Minimum wage initiatives Pension increases Affordable Care Act Levy/LEA adjustments Continued charter school impacts Initiative to reduce class sizes (I-1351) Economic stability 14

Kudos to ALL Board leadership Superintendent and Cabinet Program and budget managers Budget team — Kristin Heather — Robin Derby — Jodie Slaughter — Walter Buford — Rose Owens — Mary Kate Richardson 15

16 Basic Education: Legislative Impacts

17 Net Gain / (Loss) (in millions) Conference Career & Technical Education$.099 Special Education – Increase to per student allocation based on basic education funding increases $ LAP: laws require LAP dollars to be focused on K-4 reading$.089 Transportation $ (.111) Transitional Bilingual / Highly Capable$ (.053) Net Effect of State Legislative Program Impacts$ Program: Legislative Impacts

Charter Schools: Impacts to TPS Conservative Budgeting ◦Eliminate revenues but leave expenditures ◦424 75% Tacoma Federal Resource Impact ◦Special Education ($225,000) ◦Title II 18 Charter Impacts Grade Projected Enrollment Grade Projected Enrollment SOAR (K-8) K-1104K-2150 Destiny Charter Middle School (6-8) 6th Summit Olympus 9th

Budgeting Process and Timeline MonthNormal YearCurrent Year December Governor Budget January Enrollment projections February House and Senate Budgets March Internal process completes April Conference BudgetHouse and Senate Budgets May Review figures and balance individual programs and department budgets Internal process complete June Balance budgets and review for final adjustments July Input information into state required document and prepare presentation materials for adoption Conference Budget August Adopt budget no later than August 31 Review figures, balance individual programs and departments, review for final adjustments, input info into State required document, present budget and have hearing, prepare for adoption 19