1. Budget 101 and Beyond – January 8, 2014

2. Tonight’s Goals Budget 101 and Beyond – January 8, 2014  Explain District funding sources  Provide overview of State School Fund  Discuss the budget drivers  Outline the budget process  Respond to questions and concerns  Discuss next steps

3. A relentless commitment to academic achievement and personal growth for every student. Redmond School District Graduates are fully prepared for the demands and responsibilities of adult life. Each solidly grounded in the knowledge and skills essential for success as a student, as an employee and as a citizen of the 21 st Century. RSD Vision Mission Statement A commitment to rigorous and relevant instruction which leads to mastery and development of productive citizens. Each team member within the Redmond School District is dedicated to the growth and full development of every Redmond student. As a team, we unrelentingly seek continuous improvement for self and for students. We value collaborative response and expect rigorous student performance that is solidly grounded in relevant real world applications.

4. Personalized supports that nurture stakeholder engagement, student success, and safe and effective school environments. Wise, transparent stewardship of district resources that are prioritized for student achievement. A highly effective and professional team that prioritizes student growth, values collaboration and seeks continuous growth and improvement. RSD Strategic Priorities Balance Resources to Maximize Student Achievement Every student graduates college-prepared and/or career ready. Support and Develop Our Human Resources Sustain Safe and Vibrant School Communities Elevate Student Achievement

5. 2013-14 Adopted Budget All Funds $96,505,200

6. General Fund Resources 2013-14 Projection Local Property Taxes 28.6%

7.  Measure 5 o Passed in 1990 o Capped property tax rate to $5 per $1,000 of assessed value for public education o Required State to cover any local revenue losses to public education History of School Funding Budget 101 and Beyond – January 8, 2014

8.  Measures 47 and 50 o Passed in 1996 and 1997 respectively o Switched to permanent rates o Cut assessed property values o Capped growth of assessed property values to 3% a year History of School Funding Budget 101 and Beyond – January 8, 2014

9. School Funding post Measures 5, 47, and 50:  30% Local Revenue (property taxes)  60% State Revenue (income taxes)  10% Federal Revenue History of School Funding Budget 101 and Beyond – January 8, 2014

10. Consequences of Measures 5, 47, and 50:  Increased volatility of school funding o Shifted funding from property to income tax  Made state primary source of school funding  Equalized funding across districts History of School Funding Budget 101 and Beyond – January 8, 2014

11. Education’s Share of State Budget

12. K-12 Funding 1990-91 through 2014-15 Billions of Dollars

13.  Equalize funding across all districts  Equalize funding between districts and education service districts (ESDs)  Define equity according to student and district characteristics (weights) Goals of School Funding Formula Budget 101 and Beyond – January 8, 2014

14.  Equalize district funding: o Distribute all state funding o Account for all local revenue  Equalize District and ESD funding: o Districts receive 95.5% o ESDs receive 4.5%  District Equity: o More weights receive more funding  Local Control: o Districts control spending decisions unless Legislature states otherwise Distribution Principles Budget 101 and Beyond – January 8, 2014

15. EQUALIZATION FORMULA GENERAL FORMAT STATE REVENUE + LOCAL REVENUE EQUALS STUDENTS X BASE FUNDING PER STUDENT X COST FACTORS

16. EQUALIZATION FORMULA STATE REVENUE + LOCAL REVENUE EQUALS General Purpose Grant + Transportation Grant + Facility Grant

17.  A general cost reimbursement  A revenue entitlement per student  An assurance of funding stability or adequacy  A measure of student outcomes  An accountability system Formula Is Not Budget 101 and Beyond – January 8, 2014

18. Current State and Local Revenue 2013-15 Biennium

19. State Revenue ($6.65 B) 2013-15 Biennium Includes $100 million from September 30 Special Session

20. Local Revenue Estimated for 2013-15 biennium

21.  Of the $6.65 billion in state revenue o 95.5% goes to Districts o 4.5% goes to ESDs  All local revenue stays with the school district or ESD where collected District and ESD Revenue School Finance Presentation – July 17, 2013

22.  Carve-outs o Money set aside for specific purposes and grants  Weights o Variables used to determine each district and ESD’s share of state school fund State School Fund Components Budget 101 and Beyond – January 8, 2014

23. State School Fund: Specific Programs  Talented and Gifted Education o $350,000 per biennium  Speech Pathology Program o $150,000 per biennium  Long Term Care and Treatment and Oregon School for the Deaf o Approximately $22 million per biennium  Oregon Virtual School District o $1.6 million per biennium Budget 101 and Beyond – January 8, 2014

24.  Small High School Grant o Provides additional funds to small high schools o $2.5 million per year (ends June 30, 2015)  High Cost Disability Grant o Reimburses districts for costs over $30,000 per IEP student o $18 million per year  Facility Grant o Pays up to 8% of construction costs for new classroom furnishings o $20 million per biennium State School Fund: Sub-Grants Budget 101 and Beyond – January 8, 2014

25.  Transportation Grant o Reimburses eligible transportation costs o Reimbursement rates set by costs per ADMr o Reimburse at 70%, 80% or 90% of eligible costs  Network of Quality Teaching and Learning (NQTL) o Supports implementation of Educator Effectiveness (SB 290) and CCSS to improve educator practices o $45 million for the 2013-15 biennium State School Fund: Sub-Grants Budget 101 and Beyond – January 8, 2014

26.  Average Daily Membership (resident) o Up to 1.0 weight  Students eligible for Special Education o 1.0 weight up to 11% ADMr  Special Education Students above 11% o Variable  ESL students o 0.5 weight Student Weights Budget 101 and Beyond – January 8, 2014

27.  Pregnant and Parenting Students o 1.0 weight  Students in Poverty o 0.25 weight  Students in Foster care o 0.25 weight  Students in Neglected/Delinquent Programs o 0.25 weight Student Weights Budget 101 and Beyond – January 8, 2014

28.  Remote Small Elementary School correction o 8 miles from nearest elementary school in same district o No more than 28 students per grade  Small High School Correction o No more than 350 students for 4 grades o No more than 267 students for 3 grades School Weights Budget 101 and Beyond – January 8, 2014

29. CategoryAdditional Weight IEP1.0 ESL0.5 Pregnant and Parenting1.0 Poverty0.25 Foster Care0.25 Neglected/Delinquent Students0.25 Weights

30. Formula Student Counts  ADM - Average daily membership  ADMr - ADM with kindergarten half-weighted  ADMw - ADMr adjusted by student cost weights  Extended ADMw - Higher of current or prior year ADMw  HB 3417 – Extended ADMw calculated separately for charter and non-charter schools Budget 101 and Beyond – January 8, 2014

31.  Recognizes that more experienced teachers may have increased costs  Calculation (District Average – State Average)  Teacher Experience Factor may be positive or negative value Teacher Experience Budget 101 and Beyond – January 8, 2014

32.  (District ADMw * ($4,500 + [$25 * (teacher experience difference]) * funding ratio) – Local Revenue o District ADMw: District Weights o $4,500: minimum funding o Funding Ratio completely distributes all State School Funds District Formula Budget 101 and Beyond – January 8, 2014

33. FORMULA EXAMPLE STATE REVENUE + LOCAL REVENUE EQUALS Student ADMw Extended X $4,500 adjusted by teacher experience and to total funds + 70% of Transport Costs [7,893.12 x ( $4,500 + ($25 x 0.14)) x 1.45] + [70% x $2,890,700] + 0 = $51,511,228 + $2,023,490 + 0 = $53,534,718 OR $6,782 Per Extended ADMw + Up to 8% of Const. Costs

34. Pause …. Questions on State School Fund? School Finance Presentation – July 17, 2013

35.  2014-15 State K-12 Education Budget o $3.44 Billion o *51%* of $6.55 Billion + $100 million from Special Session  Enrollment Estimate o District-wide flat enrollment o Slight decrease in RPA estimate o 1.5% growth due to in-migration o Offset by declining KG enrollment Budget Drivers - Revenue Budget 101 and Beyond – January 8, 2014

36. Education’s Share of State Budget

37. State School Fund (SSF) Per ADMw * Assumes no changes in local revenues from 2013-14.

38. October 1 st Enrollment – 2006-07 to 2014-15

39.  Staffing - Related o Enrollment o Class Size Ratios Budget Drivers - Expenditures Budget 101 and Beyond – January 8, 2014 Kindergarten23Grades 4-530 Grade 124Middle School32 Grade 226High School32 - 34 Grade 328Redmond K-1275

40.  Salary - Related o Contract Days o Horizontal & vertical salary schedule movement o COLA  Related Payroll Costs o PERS rates o Health Insurance Cap – currently $1,145 o Other Contractual Employee Benefits Budget Drivers - Expenditures Budget 101 and Beyond – January 8, 2014

43. RSD Average PERS Rates

44.  Poverty weights resolution  Potential new grants  Contract negotiations Budget Unknowns Budget 101 and Beyond – January 8, 2014

45. District StaffBudget CommitteeBoard Timeline:Jan – JuneApr – MayFeb – June Budget Version:ProposedApprovedAdopted Responsibilities:-Prepare Long Range Financial Plan -Convene & conduct Work Sessions with Budget Task Force, Board and Budget Committee -Determine staffing levels and prepare budget aligned to Board goals and Strategic Plan -Review budget for accuracy & alignment to Strategic Plan -Receive Public Comment -Approve budget and tax levies -Gives direction to budget process -Sets financial goals -Appoint Budget Committee members -Members of Budget Committee -Budget Hearing -Adopt budget, set appropriations and approve tax levies Budget Process and Roles

46. Next Steps  Budget Committee Work Session – February 12  Budget Development  First Budget Committee Meeting – April 30  Second Budget Committee Meeting & Public Input – May 7  Last Budget Committee Meeting & Public Input – May 21  Budget Hearing – School Board Adoption – June 25 Budget 101 and Beyond – January 8, 2014