WSSDA Webinar March 27, 2014 Barbara Posthumus, Director of Business Services Lake Washington School District

 School Funding History  Sources of Revenue  Funding Model  Budgeting 2

 Article IX “It is the paramount duty of the state to make ample provisions for the education of all children residing within its borders,...”

Doran Decisions Tasks the Legislature with defining “basic education” ESHB 2261 Establishes prototypical school model & establishes QEC SHB 2776 Creates new school funding allocation model McCleary Decision 2010 Confirms state funding is not ample, it is not stable, it is not dependable

 Doran I ◦ the level of funding provided by the state.... was not fully sufficient.. ◦ legislature had not defined basic ed or provided fully sufficient funding without reliance on special excess levies ◦ led to Basic Ed Act of 1977 which established revised funding formula, substantially increased state funding, and limited amount and purpose of special levies.

 Doran II ◦ duty to fully fund includes not only basic ed act also: special education; transitional bilingual; remediation; transportation for some pupils.  Doran III ◦ required establishment of some form of “safety net” in special education

 ESHB 2261 passed in 2009 ◦ Defines new programs of Basic Education, while mandating that no new requirements shall be implemented without associated funding. ◦ Adopts prototype schools funding model. ◦ Establishes that programs shall be fully funded by the school year. ◦ Establishes a new funding formula for Pupil Transportation, to begin during or before ◦ Created the Quality Education Council (QEC) to develop and implement workgroups on funding formulas, data governance, levy, compensation ◦ Creates a roadmap for work groups to define the details of the funding formulas.

 SHB2776 passed in 2010 ◦ Implements the new funding structure for education as proposed by the QEC and the Funding formula technical workgroup ◦ New funding structure to begin Sept 2011 ◦ New structure only - no new dollars ◦ Creates timeline for funding phase-in and 2018 deadline for full funding ◦ Funding shall be for allocation purposes only

 More funding must begin in  Full Day Kindergarten fully funded statewide by  K-3 Class Size Reduction fully funded by  Materials, Supplies and Operating Costs fully funded by  Transportation fully funded by

 McCleary 2010 o The Washington State Supreme Court issued a ruling that the state is not complying with its constitutional duty to “make ample provision for the basic education of all children in Washington.” o Court recognized the Legislature had enacted “a promising reform package” in its 2009 education reform bill and indicated that legislation, if funded, “will remedy deficiencies in the K-12 funding system.” o Court deferred to the Legislature to determine how to meet its constitutional duty, but retained jurisdiction over the case to “facilitate progress in the state’s plan to fully implement the reforms by 2018.”

12 Source: Organization and Financing of Washington Public Schools May 2013

13 Source: Organization and Financing of Washington Public Schools May 2013

14 Source: Organization and Financing of Washington Public Schools May 2013

 Largest Revenue source for school districts  Basic Education  Categorical ◦ Special Education ◦ Highly Capable ◦ Learning Assistance Program ◦ Bilingual Instruction ◦ Transportation 15

 Enrollment is the largest driver of revenue  Key to positive or negative impacts to budget  Prototypical Model  Enrollment Staffing Funding  Staff Mix (levels of education and experience of your teachers) drive funding 16

 Fixed theoretical school size used for modeling purposes  Funding formula assumptions are based upon prototypical school  Class size assumptions are different based upon grade and subject  Planning time for teachers is factored in for determination of class size CategoryElem K-6Middle 7-8High 9-12 Base Enroll

 Certificated Instructional Staffing (CIS)  Legislative class size allocations plus planning time equals teachers 18 Students per staff % Increase in Teachers to Cover Planning Elem Gr K % Elem Gr % Middle Gr % High Gr % K-1 High Poverty % Gr 2-3 High Poverty

 Other cert staff based on prototypical school model. 19 Elem K-6Middle 7-8High 9-12 Per Prototypical School Librarian Counselor Nurse Social Workers Psychologists

 Classified Staff (CIS) 20 Elem K-6Middle 7-8High 9-12District Wide Per Prototypical School Per 1,000 students Teaching Assistance Office Support Custodians Student & Staff Safety Family Involvement Coord Technology.628 Facilities/Maint./Grounds1.813 Warehouse/Mechanics.332 Central classified administration 5.3% of staff units x 74.5%

 Certified Administration Staff (CAS) 21 Elem K-6Middle 7-8High 9-12 Per Prototypical School Principal District Wide Central Administration 5.3% of staff units x 25.5%

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 Certified staffing FTE and Staff Mix (levels of education and experience of your teachers) drive funding. Cert FTE multiplied by state salary allocation equals funding  Classified and Administration FTE multiplied by average state salary allocation equals funding  Some districts are grandfathered at higher amounts  Salaries drive mandatory benefits and medical benefits 23

Level Technology$89.13 Utilities and Insurance$ Curriculum and Textbooks$95.69 Other Supplies and Library Materials$ Instructional Professional Development$14.80 Facilities Maintenance$ Security and Central Office$83.12 Total$848.04

 Substitutes  Career and Technical Education (Vocational Education)  Small Schools Districts – special allocations 25

 Special Education ◦ Funded based on a % of basic ed ◦ Birth to Pre-Kindergarten=115% ◦ Kindergarten to age 21 =93.09%  Learning Assistance Program (LAP), Transitional Bilingual (ELL) and Highly Capable ◦ Provides funding for additional hours of instruction ◦ Formula drives cert teachers  Transportation 26

 Local Levy ◦ Must be voted on by community at least every four years ◦ Amount that can be collected is capped by state formula ◦ Increased from 24% to 28% in 2011 ◦ Set to sunset after 2017 ◦ Some districts are grandfathered at higher percentage  Levy Equalization 27

 Special Education IDEA  Vocational Education  Title I (Remediation)  Title II (Professional Development)  Title III (Limited English Proficiency)  Free and Reduced Lunch Funding  Head Start  Other Grants 28

 Investment earnings  Fee programs – all day kindergarten, sports participation, food services, summer school  Grants and donations  Rentals and leases – facilities use  Revenue from other school districts  Fines and fees from students (workbooks, supply fees) 29

 Enrollment  Mid-Year Projections (Fund Balance)  Legislative Impact  Budget Preparation  Multi-year Budget Projection  Monitoring and Reporting Enrollment Mid-Year Projections Budget Preparation Multi-Year Projections Reporting 31

 Staffing drives 85% of budget  State defines format of budget ◦ Program – Activity - Object 32

33 Source: Organization and Financing of Washington Public Schools May 2013

34 Source: OSPI Financial Summary

DateAction JanuaryNext year Enrollment Projections Complete Feb/MarPrepare Current Staffing Data Mar/AprilDepartmental Budget Preparation AprilStaffing Allocations for next year developed April/MayDistrict Budget Advisory Process AprilLegislative Session Ends May- early JuneBalance Budget MayBoard Work Session Presentation JunePrepare Budget Document an send draft to Board 35

DateAction June 25Board Meeting – Draft Budget Presentation July 10Final date to prepare budget and available to public July 10Final date to forward draft budget to ESD July 20Publish First Notice of Public Hearing July 20Final date to have copies of Budget available to public (1 st class districts) and due to ESD for review July 27Publish Second Notice of Public Hearing August 6Board Meeting – Public Hearing and Final Adoption August 31Final date to Adopt Budget (1 st class districts) Sept 3Final date to forward budget to ESD (1 st class districts) 36

 Feedback ◦ What kind of public process will you have? ◦ Goals for next year ◦ Goals for long-term  Questions ◦ How are contingencies built into budget? ◦ Does your district regularly do budget extensions? 37

38  How do decisions today effect long-term budget outlook?

“A monthly budget status report for each fund shall be prepared by the administration of each school district; and a copy of the most current budget status reports shall be provided to each member of the board of directors of the district at the board's regular monthly meeting. The report shall contain the most current approved budget amounts by summary level accounts and the fund balance at the beginning and end of the period being analyzed….Also, as a part of the budget status report, the administration shall provide each member of the board of directors with a brief written explanation of any significant deviations in revenue and/or expenditure projections that may affect the financial status of the district… “ 39

 Meet with Business Manager  Ask about funding issues  Ask about budget preparation process  Ask about long-range financial picture  Ask about monthly board financial reports 40

 Organization and Financing of Washington Public Schools tion% pdf  A Citizen’s Guide to WA State K-12 Finance ments/2014%20K12%20Citizens%20Guide.pdf  “A Brief History of Education Funding in WA State” This is a one-page pictorial timeline of funding s2014/EducationFundingChart.pdf  Quality Education Council (QEC) reports 41

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