The Perfect StormThe Perfect Storm…………....

20092009--2010 Budget2010 Budget

Largest Enrollment Decline to DateLargest Enrollment Decline to Date…………..

A Recession that Exceeded all ExpectationsA Recession that Exceeded all Expectations…………

February 2009 EnrollmentFebruary 2009 Enrollment

FTEGrade High Bayview Middle Interm. Primary WIA Total

K 45.00 2.00 47.001 99.75 3.53 103.282 90.00 5.98 95.983 112.00 15.00 3.73 130.734 102.00 5.38 107.385 142.00 12.23 154.236 139.40 9.42 148.827 124.00 4.58 128.588 146.96 5.32 152.289 150.73 2.20 152.93

10 152.52 11.75 7.36 171.6311 128.35 18.00 2.52 148.8712 157.94 42.00 3.28 203.22

Total 589.54 71.75 410.36 356.00 249.75 67.53 1744.93

20082008--09 Enrollment 09 Enrollment by Month/Gradeby Month/Grade

FTEGrade Sep Oct Nov Dec Jan Feb 1 Mo. Chg

K 48.00 48.00 48.00 47.50 47.50 47.00 (0.50)1 99.98 99.98 103.28 105.28 104.28 103.28 (1.00)2 103.18 103.18 102.18 100.18 100.18 95.98 (4.20)3 133.96 134.96 134.73 134.73 133.73 130.73 (3.00)4 105.40 106.40 105.40 105.40 106.38 107.38 1.005 159.38 159.38 158.15 158.15 157.15 154.23 (2.92)6 147.66 148.66 148.26 149.26 150.26 148.82 (1.44)7 130.78 131.78 130.78 130.78 129.78 128.58 (1.20)8 150.28 153.48 154.48 154.28 156.28 152.28 (4.00)9 156.33 158.33 156.33 155.33 152.33 152.93 0.6010 173.28 173.60 173.58 173.60 170.60 171.63 1.0311 145.50 146.63 148.13 145.78 145.78 148.87 3.0912 211.82 211.68 209.10 208.10 206.72 203.22 (3.50)

Total 1765.55 1776.06 1772.40 1768.37 1760.97 1744.93 (16.04) 

K‐5 650 652 652 651 649 639 (10.62)6‐8 429 434 434 434 436 430 (6.64)9‐12 687 690 687 683 675 677 1.22

Enrollment History/ProjectionsEnrollment History/Projections

Actual Actual Actual Actual Actual Actual Actual Projected ProjectedEnrollment Enrollment Enrollment Enrollment Enrollment Enrollment Enrollment Enrollment Enrollment

Grade 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

K 54.96 60.90 61.72 47.44 60.65 44.02 48.72 48.21 44.65

1 132.73 115.28 127.80 138.84 111.22 132.98 94.29 105.28 103.22

2 145.30 139.29 121.11 136.47 151.64 118.91 136.93 97.17 108.99

3 150.89 144.98 139.44 118.89 153.50 158.99 112.42 133.38 93.47

4 167.22 156.44 151.87 145.89 123.69 148.54 160.89 103.79 127.79

5 201.47 160.98 159.89 147.89 143.42 122.85 140.10 158.16 100.65

6 156.98 207.62 161.89 159.89 145.22 143.43 126.02 148.83 158.46

7 189.29 165.53 213.49 158.89 164.54 149.83 143.97 128.55 145.83

8 185.98 194.57 179.00 219.35 155.31 170.76 150.21 152.97 131.66

9 240.08 219.82 206.89 180.22 217.39 165.16 174.20 153.15 150.79

10 209.27 233.91 213.70 202.24 173.76 220.02 160.31 169.71 149.46 11 186.12 172.12 197.74 179.69 172.30 150.66 199.33 145.26 149.66

12 137.10 168.36 168.48 174.92 160.40 167.88 160.29 206.02 146.70

Total 2,157.39 2,139.80 2,103.02 2,010.62 1,933.04 1,894.03 1,807.68 1,750.49 1,611.33

FTE Chg (17.59) (36.78) (92.40) (77.58) (39.01) (86.35) (57.19) (139.16)

% Chg vs 2001-02 -0.8% -2.5% -6.8% -10.4% -12.2% -16.2% -18.9% -25.3%

Preliminary 2009Preliminary 2009--10 Enrollment Projections10 Enrollment Projections

Grade High Bayview Middle Elementary WIA Total

K - - - 42.75 1.90 44.65 1 - - - 99.70 3.52 103.22 2 - - - 102.20 6.79 108.99 3 - - - 90.84 2.63 93.47 4 - - - 121.56 6.23 127.79 5 - - - 92.88 7.78 100.65 6 - - 148.31 10.15 158.46 7 - - 140.52 - 5.31 145.83 8 - - 126.96 - 4.71 131.66 9 148.55 - - - 2.24 150.79

10 132.82 10.23 - - 6.41 149.46 11 129.03 18.10 - - 2.53 149.66 12 114.01 30.32 - - 2.37 146.70

Total 524.41 58.65 415.78 549.91 62.57 1,611.33

Budget Recommendation - 2009-10 (5 Yr Weighted PLUS)

139 Fewer Students in 2009139 Fewer Students in 2009‐‐1010

Grades Grades 66‐‐88

+6 fte+6 fte

Grades Grades KK‐‐55

‐‐67 fte67 fte

Grades Grades 99‐‐1212

‐‐78 fte78 fte

State ApportionmentState Apportionment (Guaranteed Revenue)(Guaranteed Revenue)

x Staffing Ratio =x Staffing Ratio =

# Certificated Staff# Certificated Staff

# Classified Staff# Classified Staff

# Administrators# Administrators

FUNDEDFUNDED

Under the latest forecast, state general fund revenue is Under the latest forecast, state general fund revenue is expected to have its steepest decline in over twenty yearsexpected to have its steepest decline in over twenty years

April 2008April 2008 $1.7 Billion$1.7 BillionSeptember 2008September 2008 $3.2 Billion$3.2 BillionNovember 2008November 2008 $5.1 Billion$5.1 BillionDecember 2008December 2008 $6 Billion*$6 Billion*January 2009January 2009 $7 Billion$7 BillionFebruary 2009February 2009 $8.3 Billion$8.3 BillionMarch 2009March 2009 ??????????

*Governor's budget proposal built on this projection*Governor's budget proposal built on this projection

State Budget Deficit State Budget Deficit ProjectionsProjections

A First Look At The Impact of A First Look At The Impact of the State Budgetthe State Budget

•• 100% Suspension of I100% Suspension of I--732 (COLA) 732 (COLA) Unknown at this timeUnknown at this time

•• 100% Reduction in I100% Reduction in I--728 728 ((estest based on $8.3 B deficit)based on $8.3 B deficit) ($854,090)($854,090)

•• 100% Reduction in Math/Science PD100% Reduction in Math/Science PD ($ 61,864)($ 61,864)

Potential State Revenue ReductionPotential State Revenue Reduction ($915,954)($915,954)

A First Look At The Impact On SWSDA First Look At The Impact On SWSD

Potential State Revenue ReductionPotential State Revenue Reduction ($915,954)($915,954)

Enrollment Decline (139 fte) Enrollment Decline (139 fte) ($770,000)($770,000)

Potential Increased Costs (Payroll)Potential Increased Costs (Payroll) $191,020$191,020

Potential Change to SWSD BudgetPotential Change to SWSD Budget ($1,876,974($1,876,974)

= an = an 11% Reduction11% Reduction of the General Fund Budgetof the General Fund Budget

Will the Federal Stimulus Will the Federal Stimulus help us?help us?

Federal Stimulus Package

Questions and AnswersK-20 February 24, 2009

2/24/2009 26Office of Superintendent of Public 

Instruction

State Fiscal Stabilization

Question: How much money is Washington State receiving?

Answer: The preliminary estimate is $1 billion.

81.8% is for education ($819.9 Million).

This includes K-12 & Post Secondary education.

2/24/2009 27Office of Superintendent of Public 

Instruction

State Fiscal Stabilization - Basic

Question: What can basic stabilization funds be used for?

Answer: Any activity authorized under ESEA (NCLB), IDEA, the Perkins Act, or modernization of public school facilities.

•Very significant issue. If the Legislature replaces I-728 with stabilization funding, and districts can only spend the resources on these federal programs, the use of funds will be very constricted.

2/24/2009 29Office of Superintendent of Public 

Instruction

What does this mean?What does this mean?

Unless federal regulations (Supplanting & Unless federal regulations (Supplanting & Maintenance of Effort) are changedMaintenance of Effort) are changed……. .

Federal stimulus funds Federal stimulus funds may have no effectmay have no effect on on the General Fund budget deficit!the General Fund budget deficit!

Federal Stimulus Funds

South Whidbey is estimated to receive:

$58,000 per year in Additional Title I funds

$246,000 per year in Additional Special Education funds

2/24/2009 34Office of Superintendent of Public 

Instruction

What can we do?What can we do?

Cost Savings Options Available To School Districts?

Implement Operational Efficiencies

Spend Down Fund Balance

Implement Program Reductions Incl.

Salaries, Benefits, and Non-employee costs

Raise additional Revenue

Increase Levy Funding

What canWhat can’’t we do?t we do?

•• Increase Local Levy Funds Increase Local Levy Funds (24% Levy Lid)(24% Levy Lid)

•• Use special levy funds Use special levy funds (Technology/Capital Projects)(Technology/Capital Projects) for for General Fund costs.General Fund costs.

•• Use the increase in Federal Special Education & Title I Use the increase in Federal Special Education & Title I funds to supplant the General Fund budget deficit.funds to supplant the General Fund budget deficit.

•• Sell property to support the General Fund budget.Sell property to support the General Fund budget.

What are we doing?What are we doing?1.1. Draw down Fund BalanceDraw down Fund Balance

2.2. Reduce Teaching & Reduce Teaching & Learning FundsLearning Funds

3.3. Find ways to become more Find ways to become more efficientefficient

4.4. Evaluate all ProgramsEvaluate all Programs

5.5. Reduce Employee Related Reduce Employee Related CostsCosts

$1,876,974$2,000,000

$1,8000,000

$1,6000,000

$1,4000,000

$1,2000,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0

Fund Balance Reduction

Efficiency

Teaching & Learning Reduction

???

Budget ReductionBudget Reduction

$300,000

$200,000

48

???

???

???

Employee Costs

Program Review

More To ComeMore To Come

House and Senate Budgets Released House and Senate Budgets Released March 2009March 2009

Conference CommitteeConference Committee’’s Reconcile Marchs Reconcile March--AprilApril

Last Day of Regular Session Last Day of Regular Session April 26, 2009April 26, 2009

Details on Federal Stimulus package Details on Federal Stimulus package TBDTBD

02/03/09 Budget Discussion: Process - Assumptions - Initial Enrollment Projections

03/01/09 Seniority Lists Published (SWEA - PSE - SEIU)

03/03/09 Values/Priorities Discussion (Admin)

03/17/09 Program Discussion (Admin)

March 2009-10 Budget Preview

03/31/09 Admin. Budget Workshop - PRELIMINARY STAFFING REDUCTIONS

04/13/09 SWEA - PSE - SEIU - Identification of RIF list

04/15/09 Board Workshop - Budget Review #1 - Enrollment & Revenue Estimates

04/15/09 SWEA Contract Date - Initial Determiniation of non-renewal list to SWEA

04/22/09 I-728 Public Hearing - (Possibly)

05/15/09 Last day to notify SWEA members of non-renewal.

05/27/09 Board of Director's Meeting - Progress Report

06/01/09 RIF Notification - Classified Staff

06/10/09 Board Workshop - Budget Review #2 - Expenditures

06/20/09 Public Advertisement #1

06/24/09 Board of Director's Mtg - Public Budget Draft Presentation #1

06/27/09 Public Advertisement #2

07/08/09 Board Workshop - Public Budget Draft Presentation #2

07/10/09 **Budget submitted to ESD189 for review/available to public @ DO

07/22/09 Public Budget Hearing and Adoption

07/31/09 Final Budget Adoption Date per WAC 392-123-054

08/03/09 Final date to send ADOPTED budget to ESD per WAC 392-123-054

F-195 Budget Timeline

QuestionsQuestionsand and

Budget Saving IdeasBudget Saving Ideas

dpoolman@sw.wednet.edudpoolman@sw.wednet.edu221221--6100 ext 22446100 ext 2244