budget 101 and beyond – january 8, 2014

Budget 101 and Beyond – January 8, 2014

Tonight’s Goals


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

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 21st 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.

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

2013-14 Adopted BudgetAll Funds

$96,505,200

General Fund Resources2013-14 Projection

Local Property Taxes

28.6%

Measure 5o Passed in 1990o Capped property tax rate to $5 per $1,000 of assessed

value for public educationo Required State to cover any local revenue losses to public

education

History of School Funding


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



School Funding post Measures 5, 47, and 50:

30% Local Revenue (property taxes)

60% State Revenue (income taxes)

10% Federal Revenue



Consequences of Measures 5, 47, and 50:

Increased volatility of school fundingo Shifted funding from property to income tax

Made state primary source of school funding

Equalized funding across districts



Education’s Share of State Budget

K-12 Funding 1990-91 through 2014-15B

illio

ns o

f D

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rs

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


Equalize district funding:o Distribute all state fundingo 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


EQUALIZATION FORMULAGENERAL FORMAT

STATE REVENUE + LOCAL REVENUE

EQUALS

STUDENTS XBASE FUNDINGPER STUDENT X

COSTFACTORS

EQUALIZATION FORMULA


EQUALS

General Purpose

Grant+

TransportationGrant +

Facility Grant

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


Current State and Local Revenue

2013-15 Biennium

State Revenue ($6.65 B)

2013-15 BienniumIncludes $100 million from September 30 Special Session

Local Revenue

Estimated for 2013-15 biennium

Of the $6.65 billion in state revenueo 95.5% goes to Districtso 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

Carve-outso Money set aside for specific purposes and grants

Weightso Variables used to determine each district and ESD’s

share of state school fund

State School Fund Components


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 Deafo Approximately $22 million per biennium

Oregon Virtual School Districto $1.6 million per biennium


Small High School Granto Provides additional funds to small high schoolso $2.5 million per year (ends June 30, 2015)

High Cost Disability Granto Reimburses districts for costs over $30,000 per IEP studento $18 million per year

Facility Granto Pays up to 8% of construction costs for new classroom

furnishingso $20 million per biennium

State School Fund: Sub-Grants


Transportation Granto Reimburses eligible transportation costso Reimbursement rates set by costs per ADMro 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 practiceso $45 million for the 2013-15 biennium

State School Fund: Sub-Grants


Average Daily Membership (resident)o Up to 1.0 weight

Students eligible for Special Educationo 1.0 weight up to 11% ADMr

Special Education Students above 11%o Variable

ESL studentso 0.5 weight

Student Weights


Pregnant and Parenting Studentso 1.0 weight

Students in Povertyo 0.25 weight

Students in Foster careo 0.25 weight

Students in Neglected/Delinquent Programso 0.25 weight

Student Weights


Remote Small Elementary School correctiono 8 miles from nearest elementary school in same

districto No more than 28 students per grade

Small High School Correctiono No more than 350 students for 4 gradeso No more than 267 students for 3 grades

School Weights


Category Additional Weight

IEP 1.0

ESL 0.5

Pregnant and Parenting 1.0

Poverty 0.25

Foster Care 0.25

Neglected/Delinquent Students 0.25

Weights

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


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


(District ADMw * ($4,500 + [$25 * (teacher experience difference]) * funding ratio) – Local Revenueo District ADMw: District Weightso $4,500: minimum fundingo Funding Ratio completely distributes all State School

Funds

District FormulaDistrict Formula


FORMULA EXAMPLEFORMULA EXAMPLE


EQUALS

Student ADMwExtended

X$4,500 adjusted by teacher experience and to total funds

+70% of

TransportCosts

[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

Pause …. Questions on State School Fund?

School Finance Presentation – July 17, 2013

2014-15 State K-12 Education Budgeto $3.44 Billiono *51%* of $6.55 Billion + $100 million from Special Session

Enrollment Estimateo District-wide flat enrollmento Slight decrease in RPA estimateo 1.5% growth due to in-migrationo Offset by declining KG enrollment

Budget Drivers - Revenue


Education’s Share of State Budget

State School Fund (SSF) Per ADMw

* Assumes no changes in local revenues from 2013-14.

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

Staffing - Related

o Enrollment

o Class Size Ratios

Budget Drivers - Expenditures


Kindergarten

23 Grades 4-5 30

Grade 1 24 Middle School 32

Grade 2 26 High School 32 - 34

Grade 3 28 Redmond K-12 75

Salary - Relatedo Contract Dayso Horizontal & vertical salary schedule movemento COLA

Related Payroll Costso PERS rateso Health Insurance Cap – currently $1,145o Other Contractual Employee Benefits

Budget Drivers - Expenditures


RSD Average PERS Rates

Poverty weights resolution

Potential new grants

Contract negotiations

Budget Unknowns


District Staff Budget Committee Board

Timeline: Jan – June Apr – May Feb – June

Budget Version: Proposed Approved Adopted

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

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

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