1. BUDGET PRESENTATION School Finance 101 Post McCleary – Now What
BUDGET PRESENTATION School Finance 101 Post McCleary – Now What? Current Projections/Next Steps
Dr. Kristine McDuffy
Superintendent

2. “Pre-Test/Post-Test”

3. SCHOOL FINANCE “101”

4. School District Funds Associated Student Body - ASB
Transportation Vehicle - TVF
Capital Projects - CPF
Debt Service – DSF
General Fund – GF

5. ASB Fund
Cultural
Athletic
Recreational
Social

6. Transportation Vehicle Fund
Used to purchase school buses
Revenue comes from State Depreciation
TVF levy

7. Used to build new buildings Major renovations
Capital Projects Fund
Used to build new buildings
Major renovations
Capital technology and technology services
Revenue comes from
Bond proceeds
Capital/Technology levy
State Match
Capital surplus lease or sale

8. Revenue comes from bond levy
Debt Service Fund
Used to repay bonds
Revenue comes from bond levy

9. General Fund

10. Main Driver of our Revenue

11. Enrollment – Budget & Actual
Districts current AAA FTE 19,125
Budgeting for 19,075

12. Where our money comes from - Pre-MCcleary
Local Support:
Local Revenue $1.3 m Food service, $384K tuition fees, elearning, CTE, Pre-school, building fees) lower than prior yrs because of FDK
State General – Basic ed apportionment $132M, State Special Ed $23M, LAP $3.8M, Bilingual $2.8M, Transportation $9.8M.
Federal General – federal forest, Title 1, 2, IDEA-B, Fed Food Service
Other Head start, Transfers

13. WHERE OUR MONEY COMES
FROM - POST MCCLEARY

14. Where our money goes
$159.3M Teaching:, teachers, extra curr, payments to other school districts.
$37.5M Teaching support: librarians, counselors, nurses, student management, professional Dev., Instructional technology.
$15.3M School Admin: Principals
80.9% of budgeted Expenditures into focused to student achievement.
$34.0M Support Activities: Food, FS Operations, Tranpo operations, maintenance, Insurance, Grounds, Custodial, Information sys.,
$14.0M Central Admin: Board of Dir., Super office, Business office, HR, Public relations, Supervision of Instruction, Supervision of Transpo, Supervision of Maint.

15. Percent to salaries & benefits

16. Prototypical Schools Model – A Few Examples
State Actual (20,556
Students)
Librarians
Guidance Counselors
Nurses
Teaching Assistants
Custodians
Principals

17. fund balance Indicator of a districts financial health
Part of the districts annual audit
Major determining factor to establish the districts bond rating
Board policy 6022: “To provide an adequate but not excessive reserve, the Board of Directors has established a target committed to minimum fund balance of 4% of total expenditures in the General Fund for the ending fiscal period.”

18. Snohomish County School Districts - Current Fund Balance
% of Expenditures
Lakewood
17.58%
Darrington
14.14%
Arlington
12.77%
Mukilteo
10.80%
Monroe
10.50%
Marysville
10.49%
Everett
9.34%
Sultan
8.74%
Lake Stevens
6.76%
Stanwood
6.75%
Snohomish
6.68%
Edmonds
4.02%
Granite Falls
1.42%

19. POST MCCLEARY - NOW WHAT?

20. EHB 2242 – McCleary “Solution” (Passed in 2017 legislation)
Major changes in K-12 financing, significantly impacting both State and local funding
Once-in-a-generation changes in:
Salary Allocations
Local Levies and Local Effort Assistance
Collective Bargaining and Supplemental Contracts
Accountability and Transparency
Health Benefits

21. E2SSB 6362 – McCleary “Solution” 2 (Passed in 2018 legislation)
Funding schedule for salaries
Regionalization in effect
Local funding limitations
Accountability
Increased Special Education Cost Multiplier
Delayed K-3 class size compliance (goes into effect )

22. Supreme Court Order – June 2018
The Court:
Purged contempt order
Lifted sanctions
Relinquished jurisdiction in the case
Conclusion: McCleary “is finished”

23. McCleary a few of the major impacts
Salaries
Regionalization
Levy

24. Salary adjustments Certificated Instructional Staff IPD
Certificated Instructional Staff IPD
Classified Staff IPD
Administration IPD

25. State Funded Salaries by Regionalization Certificated instructional staff
0% = $65,216
6% = $69,129
12% = $73,042
18% = $76,955
24% = $80,868
Edmonds = 18%
Everett = 24%
Mukilteo = 24%
Northshore = 18%
Shoreline = 24%
Lake Washington = 18%
Edmonds

26. Staff Mix by District
Lake Washington =
Northshore =
Mukilteo =
Shoreline =
Marysville =
Edmonds =
Everett =

28. General fund levy revenue by fiscal year
9.4% drop over prior year
2024 only comes back to $56.9M
12.4% drop over prior year

29. What Now? While McCleary is “done,” much work remains
Implementation of HB 2242 and SB 6362— with new funding formulas, salary allocations, levy systems, and accountability measures—is far from complete
Court ruled that EHB 2242 may not ultimately amply fund basic education, stating: “the Court is willing to allow the State’s program to operate and let experience be the judge of whether it proves adequate”

30. Current Projections Next Steps

31. BUDGET 2018-19 Revised 2019-20 Projected 2019-20 Target
Local Revenue
$62,704,842
$55,642,427
State Revenue
$242,840,704
$244,817,155
Federal Revenue
$14,648,774
$14,588,774
Other Sources
$4,929,846
TOTAL REVENUE
$325,124,166
$319,978,202
Salaries
$204,060,670
$211,566,670
Benefits
$75,787,806
$79,515,078
All Other Costs
$47,239,490
$44,070,348
$26,570,348
TOTAL EXPENDITURES
$327,087,966
$335,152,096
$317,379,056
Deficit
($1,963,800)
($15,173,894)
$2,599,146
Beginning Fund Balance
$11,265,838
$9,302,038
Projected Ending Fund Balance
($5,871,894)
$11,901,184
Fund Balance as a % of Expenditures
2.84%
-1.75%
3.75%
Data as of December 20, Revenue is declining by $5.2M while Expenditures are increasing by $8.1M
In order to reach the Target there will need to be $17.5M in expenditure reductions

32. Core Values/Commitment Core Work – Student Learning
Our Filters
Core Values/Commitment
Core Work – Student Learning
Return on Investment/Cost Benefit

33. Next Steps
Board Parameters
Staff and Community Input
Monitor Legislature
Key Dates/Milestones

34. Budget Development key Dates
1/14/19
District-wide enrollment forecast complete – Cabinet review
1/22/19
Board Work Session
2/26/19
School by school enrollment projections complete
3/26/19
Certificated staffing sheets issued
4/09/19
Classified staffing sheets issued
4/16/19
Certificated staffing sheets due to HR
4/23/19
Classified staffing sheets due to HR
First reading reduced staffing to School Board
5/14/19
Second reading reduced staffing to School Board
7/9/19
First Reading of budget – School Board
8/13/19
Second Reading and adoption of budget (Tentative) – School Board
8/27/19
School Board Special Session – Budget Adoption (If needed)

35. ESD 2019-20 Budget Development
Latest News
FAQs
Questions
Recommendations

36. We can do this!

37. Thank you! What an incredible Team!