2016-17 Budget

CENTRAL KITSAP SCHOOL DISTRICTKitsap County

Silverdale, Washington

All Students Learning Well

Introductory Section

The cost of providing the 1.8% COLA and fully implementing the reductions in class size are higher than the funding provided by the state. Additionally, because the School Support Levy to fund the Future Ready 1:1 technology initiative does not begin until 2017, general fund levy collections will fall slightly short from the current level of effort for the fiscal year. The net additional revenue can be used to provide funding to budget adjustments/recommendations. Budget Recommendations The following budget recommendations will balance the 2016-17 school year budgets.

1. Continue to fund the implementation of 1:1 classroom technology. 2. Continue all efforts to maintain eligibility for federal Heavy Impact Aid funding.

3. Use available fund balance to invest in equipment replacement as noted below:

2016/17 M&O increase - Previously CP Levy 1,100,000$

Salary Allocation for 1.8% COLA 1,285,172$

K-3 Class Size Funding 1,314,933$

Materials, Supplies & Operating Costs 131,121$

Full-Day Kindergarten 508,880$

Total Estimated Increase in Funding 4,340,106$ Additional Staffing for Class Size (17 FTE) (1,445,000)$ Cost of 1.8% COLA (1,350,000)$ Levy Tech Purchases (1,300,000)$ Total Available for Budget Adjustments 245,106$

2016 Legislative Funding

Item One-time Amount

Requested

Custodial Equipment Replacement 114,000$

Food Services Update 2 delivery vehicles 95,000$

Maintenance Replace Loader/Backhoe 67,000$

Grounds Infield Groomer with Spray Attachm 21,000$

Grounds Replace Mowers 130,400$

Grounds/Maint Replace Vehicles 180,000$

607,400$ Co-Curricular 100,000$ Music 154,318$ Furniture 150,000$ Total Budget Items to Fund 404,318$

Grounds/Maintenance/Custodial and Food Services Subtotal

4. Increase the General Fund budget $274,140 by making the changes outlined in the 2016-17

Recommended Line Item Budget Adjustments as noted below:

Enrollment

Central Kitsap enrollment peaked at an average Full Time Equivalent (FTE) of 13,051 during the 1998-99 school year and has been declining steadily since the 2001-02 school year. The enrollment decline is forecast to continue into the near future, through 2017 and then level out in 2018. What appears to be an increase in enrollment is due to state funding for all-day kindergarten. Total projected Full Time Equivalent (FTE) enrollment for 2016-17 is expected to be 10,836 students; (or 0.45%) more than the average FTE for the 2015-16 school year. As of the 2016-17 school year, Central

Description Strategic Plan 2016-17 Funding 2017-18 Est Cost

AVID Goal 1 -$ 60,000$

Classified Induction Training/Support Goal 3 100,000$ 100,000$

Ready! For Kindergarten Goal 1 125,240$ 201,900$

Website & E-news Training Goal 4 12,900$ 12,900$

Expand background checks for volunteers Goal 2 24,000$ 24,000$

Positive Behavior Intervention System training Goal 1 12,000$ 5,000$

Total Budget Items to Fund 274,140$ 403,800$

Kitsap School District will receive state funding at all elementary schools for all-day kindergarten. As such, these Kindergarten students can be counted as a 1.0 FTE rather than the previous 0.5 FTE. In 2015-16, actual FTE was above budgeted FTE by 55. Enrollment for 2016-17 has been estimated conservatively. The impact of enrollment on the General Fund is significant. A close review and monitoring of our enrollment will help to maintain staffing and fiscal capacity throughout the school year. General Fund Revenue

Local sources decreased to 19.17% of total revenues as compared to 19.89% last year. State apportionment increased to 72.11% of total revenue as compared to 70.66% last year. Federal sources decreased to 8.72% of total revenue as compared to 9.45% last year. Capital Projects Fund Summary The Capital Projects budget for 2016-2017 reflects the transition from Phase 1 of the Long Range Facilities Plan (LRFP) to Phase 2. Our community supported passage of a 20-year Capital Bond Measure in February 2016. The 2016-17 budget includes projects from Phase One that will be ongoing during the fiscal year, as well as new projects approved as part of Phase 2 of the LRFP. . During the 2016-17 year, we will receive revenue from the Capital Projects Levy ($5,776,269), in the fall of 2016, state funding assistance for Silverdale Elementary and Klahowya Secondary School ($500,000), and revenue from Heavy Impact Aid funding make up the majority of Capital Projects revenue for the year. Our estimated beginning fund balance is $174,645,272 and anticipated potential expenditures are $142,875,000. Associated Student Body Fund Summary The ASB Fund is financed by fees collected from students and non-students attending optional non-credit extracurricular events, donations, and fundraisers. By law, the School Board approves an ASB budget for each school. Accounting records are kept for each ASB. Disbursements are made with the approval of the ASB and School Board. No major changes to the ASB budget are anticipated.

Local Taxes, 16.67%

Local Non‐Tax, 2.50%

State, General Purpose, 58.35%

State, Special Purpose, 13.76%

Federal, General Purpose, 2.59%

Federal, Special Purpose, 6.13% 2016‐17 Revenue

Transportation Vehicle Fund Summary The District’s Transportation Vehicle Fund is used to account for the financing and purchase of new school buses. The cost of operating and maintaining school buses is accounted for in the District’s General Fund. The goal of the District’s Bus Purchase Program is to receive full reimbursement from the state by replacing all of the District's fully depreciated buses.

S:\Budget\Budget Development\16-17\2016-17 Budget Recommendations.docx8/19/2016

Central Kitsap School District 2016 – 17

BUDGET RECOMMENDATIONS ____________________________________________________________

The following budget recommendations will balance the 2016-2017 school year budgets.

1. Continue to fund the implementation of 1:1 classroom technology.

2. Continue all efforts to maintain eligibility for federal Heavy Impact Aid funding.

3. Use available fund balance to invest in equipment replacement as noted below:

Item One-time Amount

Requested

Custodial Equipment Replacement 114,000$

Food Services Update 2 delivery vehicles 95,000$

Maintenance Replace Loader/Backhoe 67,000$

Grounds Infield Groomer with Spray Attachm 21,000$

Grounds Replace Mowers 130,400$

Grounds/Maint Replace Vehicles 180,000$

607,400$ Co-Curricular 100,000$ Music 154,318$ Furniture 150,000$ Total Budget Items to Fund 404,318$

Grounds/Maintenance/Custodial and Food Services Subtotal

S:\Budget\Budget Development\16-17\2016-17 Budget Recommendations.docx8/19/2016

4. Increase the General Fund budget $274,140 by making the changes outlined in the 2016-17 Recommended Line Item Budget Adjustments as noted below:

Description Strategic Plan 2016-17 Funding 2017-18 Est Cost

AVID Goal 1 -$ 60,000$

Classified Induction Training/Support Goal 3 100,000$ 100,000$

Ready! For Kindergarten Goal 1 125,240$ 201,900$

Website & E-news Training Goal 4 12,900$ 12,900$

Expand background checks for volunteers Goal 2 24,000$ 24,000$

Positive Behavior Intervention System training Goal 1 12,000$ 5,000$

Total Budget Items to Fund 274,140$ 403,800$

Budget Summary and

Resolution

$2.486 $2.397 $2.456 $2.389 $2.187

$1.782

$1.475 $1.319 $1.343 $1.437

$0.493

$1.761 $1.869 $1.925 $1.901 $1.932

$1.735

$2.797 $2.777 $2.731

$2.648

$2.397

$2.013

$1.920

$1.803 $1.927

$2.160

$2.620

$2.852

$3.075

$3.232 $3.312 $3.268 $3.465

$0.000

$1.000

$2.000

$3.000

$4.000

$5.000

$6.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Levy Rates

Capital Projects Bond/Levy School Support Levy Supplemental Levy

NOTES:1. The rates for 2017 are projected based on a 3.8% increase in total property valuation for 2017.

2. Levy rates are expressed in dollars per $1,000 of assessed valuation.

CHART EXPLANATIONThe bar chart above includes the Capital Projects levy rate per $1,000 (bottom black bar), the School Support Levy rate (middle transparent bar) and the Supplemental School Support Levy rate (top dot bar). The total dollar rate per $1,000 for the levies has gradually decreased from $5.35 in 2000 due to increased assessed value (AV). Rates are climbing as AV declines and as a result of the Capital Projects Levy and the Supplemental Levy.

Projected

General Fund Budget

Summary

Actual through 2015-16*Projected for 2016-17 S:\Budget\Budget Development\Enrollment Projections\16-17 Enrollment Projections\16-17 Enrollment Projection & Graph.xlsx

12,079

11,732

11,508 11,458

11,184 11,090

10,942

10,688

10,536 10,545

10,787 10,837*

9500

10000

10500

11000

11500

12000

12500

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

CENTRAL KITSAP SCHOOL DISTRICTComparison of Annual FTE Enrollment

General Fund Revenues

S:\Budget\Budget Development\16-17\District Revenue by Source.docx

Central Kitsap School District District Revenue by Source

Where Does the Money Come From to Operate Your Schools?

Local Taxes – 1XXX (Levy) - The local maintenance and operations levy provides 16.67% of budgeted revenues. Levy amounts are capped by the legislature and must be approved by Central Kitsap School District voters at a special election held every fourth year.

Local Non-Tax – 2XXX (Fee Programs) - The local non-tax funds comprise 2.50% of revenues and are generated from fee programs such as sales of school lunches and building rentals. Also included are investment interest earnings.

State, General Purpose – 3XXX (State Apportionment) - The largest portion, 58.35%, of the Central Kitsap School District’s general fund revenue comes directly from the state in the form of “apportionment,” otherwise known as “state general purpose funding.” The amount is determined by the number of students attending our schools and a series of formula factors including legislatively-set base salaries, employee benefits, and non-labor allocations, as well as the collective education and experience of our teachers.

State, Special Purpose – 4XXX (State Categorical) - Another source, 13.76%, of funds comes from the state as categorical funds for programs such as special education, pupil transportation, transitional bilingual education, learning assistance and educational enhancements. Most of these revenues are given for a specific program and are not available for other purposes.

Federal, General Purpose – 5XXX (Federal Impact Aid Funds) - These federal funds are authorized by law and allocated to the District based on the number of students whose parents either work or live on federal property. These funds comprise 2.59% of revenues and are used for District-wide basic education programs, with the exception of funds received for special education students, which are directed to the special education program.

Federal, Special Purpose – 6XXX (Federal Categorical Funds) - Federal categorical funds comprise 6.13% of the District’s revenues. These monies fund programs such as Title I and Head Start. They also provide supplemental funding for special education programs and support free and reduced lunches in the food service program. These revenues may only be used for their specific program purpose.

.

Local Taxes, 16.67%

Local Non‐Tax, 2.50%

State, General Purpose, 58.35%

State, Special Purpose, 13.76%

Federal, General Purpose, 2.59%

Federal, Special Purpose, 6.13% 2016‐17 Revenue

Budgeted Revenue By Source

Actual

Actual BudgetState

Average

2013-14 Actual

2014-15 Actual

2015-16 Budget

2016-17 Budget

2014-15 Actual*

State 67.48% 69.81% 70.65% 72.11% 68.60%Local 21.14% 20.71% 19.89% 19.17% 23.50%Federal 11.38% 9.48% 9.45% 8.72% 7.90%

Total 100.00% 100.00% 100.00% 100.00% 100.00%

* Most current data available from the Washington Office of the Superintendent of Public Instruction

Central Kitsap School District

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2013‐14 Actual 2014‐15 Actual 2015‐16 Budget 2016‐17 Budget 2014‐15 Actual*

Percentage of Revenue By SourceState Local Federal

NOTE: CKSD receives less funding from local sources, tax and non-tax, than the average for Washingtonschool districts. This is due to a combination of lower property assessment values in the District than the stateaverage because of Federal property and the District requesting only 84.63% of the local levy amount allowedby the state.

State AvgLocal

Sources23.50%

CKSDLocal

Sources

S:\Budget\Budget Development\16-17\Revenue State Comparison.xls

General Fund Expenditures

Central Kitsap School DistrictDistrict Expenditures By Activity

Where Does the Money Go?

Teaching and Teaching Support - Of the District budget, 72.93% is spent on teaching and teaching support. This includes such things as: teachers; instructional assistants; teaching supplies, materials and textbooks; counselors and librarians; special education and related services; health services; and pupil management and safety.

Other School Support - Operational support represents 16.35% of the District budget. This includes operation and maintenance of buildings and grounds, including utilities and plant security; student transportation; food services; insurance; warehousing and distribution; data processing; and public activities.

School Building Administration - This is 4.82% of the District budget and includes principals, assistant principals, secretarial and clerical assistants, playground aides and other assistants assigned to coordinate and manage the operation of a school unit.

Central Administration - This comprises 5.90% of the District budget and includes the expenses of the School Board, Superintendent's Office, Human Resources, Business Office, and the supervision of the following activities: instruction, maintenance and operations, student transportation, and food services. This includes district-wide support functions such as accounting, payroll, purchasing, budgeting, and personnel services, as well as mandated costs of auditing services, election costs, insurance, and legal services.

Teaching & Teaching Support72.93%

Central Administration

5.90%

School Building Administration

4.82%

Other School Support16.35%

2016-17 General Fund Budgeted Expenditures

S:\Budget\Budget Development\16-17\Activity.xlsx16-17

Comparison of Expenditures By Activity

Central Kitsap School District State

Budget Average

2013-14 Actual

2014-15 Actual

2015-16 Budget

2016-17 Budget 2014-15*

Teaching & Teaching Support 71.57% 70.76% 73.47% 72.93% 69.51%Other School Support 17.45% 18.08% 16.16% 16.35% 17.97%Building Administration 4.87% 4.84% 4.44% 4.82% 6.00%Central Administration 6.11% 6.32% 5.93% 5.90% 6.52%

Total 100.00% 100.00% 100.00% 100.00% 100.00%

* Most current data available from the Office of the Superintendent of Public Instruction

Actual

71.57% 70.76%73.47% 72.80%

69.51%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2013‐14 Actual 2014‐15 Actual 2015‐16 Budget 2016‐17 Budget 2014‐15*

Percentage of Budget Expenditures By Activity

Teaching & Teaching Support Other School Support

Building Administration Central Administration

-------------------------------------Central Kitsap School District---------------------------------- State Average

State AverageTeaching &

Teaching Support = 69.51%

CKSD AnnualTeaching &

Teaching Support= 70.76%

S:\Budget\Budget Development\16-17\Activity Comparison.xlsx16-17

Transportation Vehicle Fund

Capital Projects Fund

Sites Buildings Equipment EnergyStatus Total (10) (20) (30) (40)

1148 Consolidated Transportation/FS/WH 23,500,000.00 23,500,000.00

1149 Silverdale Elementary Modernization 4,000,000.00 4,000,000.00

1333 Technology - Infrastructure 300,000.00 300,000.00

1343 CKHS HVAC 500,000.00 500,000.00

1345 Property 400,000.00 400,000.00

1408 Central Kitsap MS-Repairs 500,000.00 500,000.00

1414 Maintenance Facility 1,000,000.00 1,000,000.00

1414 Silverdale Stadium 40,000.00 40,000.00 -

1491 ECR - Ground Fault Testing 30,000.00 30,000.00

1493 ECR - KSS Roof 170,000.00 170,000.00

1501 Ridgetop Track 65,000.00 65,000.00 -

1505 KSS Misc. Repairs 120,000.00 120,000.00

1506 Olympic High School 900,000.00 900,000.00

1507 Silverdale Stadium ADA Access 500,000.00 500,000.00

1508 Silverdale Stadium Expansion 3,700,000.00 3,700,000.00

1509 KSS Classroom Modifications 375,000.00 375,000.00

1511 Pinecrest Interior Door Installation 60,000.00 60,000.00

1512 Fairview Middle School Track 65,000.00 65,000.00

1513 KSS Additions 18,000,000.00 18,000,000.00

1514 CKHS Replacement 38,000,000.00 38,000,000.00

1515 OHS Additions & Modernization 22,000,000.00 22,000,000.00

1517 CKMS Replacement 16,000,000.00 16,000,000.00

3900 Project Management 2,100,000.00 2,100,000.00

7500 Floor Finishes 200,000.00 200,000.00

0 Emergency Repairs 2,000,000.00 2,000,000.00

1592 ECR - Tibardis Demo 150,000.00 150,000.00

Security 500,000.00 500,000.00

Critical and Required Repairs - Phase II 4,000,000.00 4,000,000.00

Brownsville Elementary* 600,000.00 600,000.00

Silver Ridge Elementary* 1,500,000.00 310,000.00 1,190,000.00

Emerald Heights Elementary 600,000.00 600,000.00

Total 2016-2017 Projects 141,875,000.00 1,530,000.00 140,045,000.00 300,000.00 -

Future Ready (from General Fund) (1,000,000.00) - - (1,000,000.00)

2016-2017 FISCAL YEAR BUDGET TOTAL 140,875,000.00 1,530,000.00 140,045,000.00 (700,000.00) -

Phase II* Includes $620,000 for SR and $420,000 for B from Phase I

CENTRAL KITSAP SCHOOL DISTRICT2016-17 CAPITAL PROJECTS UPDATE

Project Description

Debt Service Fund

Associated Student Body

Fund