1. Beginning Discussions on the 2019-20 budget
Budget overview 1.0
Beginning Discussions on the budget

2. What we know What we know: Enrollment is trending down
Our largest class is two years away from graduating
Negotiations for PSE & DEA are open this year

3. What we don’t know What we don’t know yet:
Levy – will it stay at the current reduced limits
Salary allocations from the State
SEBB, will it go into effect January 1, 2020 as currently slated?
kindergarten class size
% salary increases post-negotiations

4. What have we done already?
The District did not replace the Elementary Counseling Position, the Reading Specialist and a para- professional position for the school year.
The District raised prices for Pre-K, Food Service and College in the HS programs.
We have cut budgets for workshops and travel across the District.
The District ran a capital projects levy and a transportation vehicle levy. Both of these levies will help reduce General Fund Expenditures. They help pay for technology, major appliance purchases, repairs and upgrades to buildings and new buses.
Capital Projects Levy for 2019 = $253,000
Transportation Vehicle Levy for 2019 = $127,000

5. Enrollment trend
While we are above budget, our enrollment is down FTE from last year, and it is projected to continue declining. Enrollment reports are shared with the Board monthly and this Trend Report is included periodically throughout the year. District Webpage

6. Cost of declining enrollment
Est. FTE Reduction in
11.67 FTE
Current State Fund
State Funding /FTE = $8,704.24
=$101,578.48

7. Salaries - budget considerations
Will the State fund increases in salaries for certificated and/or classified employees? Negotiations are open for both unions this year. We need to stay competitive with neighboring districts in order to keep highly qualified employees.

8. Levy changes-legislative changes?
Collection in 2018
$988,228
Estimated Collection in 2019
$420,391
The capital projects levy and the transportation vehicle levy will offset some of this deficit.
Will the legislature raise local levy restrictions?

9. School Employees Benefits Board (SEBB)
SEBB is a new State run school employees benefits program that is set to be implemented in January of 2020.
SEBB requires the District to pay for FULL benefits for ALL employees.
SEBB will also cost $14,040/employee instead of $10,128. The State has not defined how much of this they will allocate per funded employee.
The District will pay 100% for all unfunded employees, including substitutes who will now qualify at 630 hours/year.
Example: A 4 hour employee or half-time employee receive an allocation equal to half the amount of a full-time employee. Now, we will have to provide the full-time allocation for that employee
Current annual medical costs for a half-time employee = $5,064
New annual medical costs for a half-time employee in January 2020 = $14,040
The District currently estimates the cost of SEBB for will be $191,804. (assuming the State funds us at the $14,040 rate for funded employees)

10. Changes in funding 2017-18 through 2019-20

11. Summary of Fiscal changes
Loss of Revenue due to declining enrollment $101,578
Cost of Implementing SEBB for (Jan.-Aug.) $127,325
Reduction in Revenue due to Levy & State Changes $226,597
Net Savings Goal $455,500
Some of these losses/costs can be offset with Capital Projects and Transportation Vehicle Levies, however, they have restrictions on how the funds can be spent.
We are hopeful that the State legislature will implement either a hold harmless or increase levy authority or some version of both to help districts who are losing revenue due to the new funding limitations.

12. Information Monthly financial reports are posted to the board packets.
District Webpage

13. More Information
There is a Business Office webpage filled with information about the District including enrollment, funding, and expenditures.
District Webpage

14. Questions?
Thank you for coming, I am happy to answer any questions, now or later.
Leslie Oliver
(509) ext. 5003