Photos by Susie Fitzhugh

Funding our Schools: February 2013 Levies

Community Engagement MeetingsSeptember 20, 24, 27, 2012

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• The current situation: funding for our schools

• Levy renewals – Building Excellence (BEX) Capital levy

– Operations levy

– Cost to citizens

• Your feedback and ideas

Agenda for Tonight’s Meeting

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The Current Situation: Challenges and Opportunities for

Funding our Schools

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• Construction and modernization funding comes almost entirely from capital levies:

– Building Excellence (BEX) – Expires 2013

– Building, Technology, & Academics (BTA) – Expires 2016

• 94% of the annual General Fund comes from three sources:

– Federal (13%)

– State (54%)

– Local Operations Levy (27%)

The Current Situation: Funding Our Schools

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Seattle Public Schools are continuing to grow! Growth of 1,000 students this year to 49,500

Next 10 years: 7,000 additional students projected

Seattle’s north and southwest regions are growing the fastest

The Current Situation: Enrollment

The impact of 7,000 students equates to:

14 Elementary Schools (@500 students each)Or…10 Middle Schools (@700 students each)Or …5 High Schools (@1,400 students each)

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To plan for enrollment, we use a range of low, middle, and high range projections.

However, our enrollment growth in certain areas (north and southwest) may be greater than historical data suggests.

To address this, we are:

• Collaborating with Facilities and Capacity Management Advisory Committee (FACMAC)

• Seeking updated data from the City of Seattle and King County• Retaining a Puget Sound area specialist in school district

demography to validate our intermediate and long-term projections• Re-examining elementary and middle school capacity and latest

enrollment data

The Current Situation: Enrollment

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SPS Enrollment Projections (High & Mid Range) – June 2012

Educational Data Solutions Projections (Consultant) – June 2012

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 46,000

48,000

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000

48,496

49,477

50,454

51,577

52,756

53,676

54,564

55,320

56,091

56,848 57,254

48,496

50,131

51,714

53,370

55,023

56,371

57,668

58,820

59,915

60,996

61,691

49,477

50,365

51,280

52,010

52,759

53,529 54,232

55,060

55,906

SPS Mid Range Projection

SPS High Range Projection

Demographer (consultant) Range Projection

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• Increasing enrollment

• Aging buildings

• Reducing dependence on portables

• Inadequate core facilities

• Funding issues– Developer fees in Seattle are not earmarked for schools

– Historical decline in state funding for construction

– State not funding the full cost of technology

– State not fully funding basic education

• Expiration of 2013 BEX and Operations levies

The Current Situation: Challenges

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• Increased Board oversight process– Comprehensive review of policies and procedures

– Increased internal controls and financial reporting to Audit & Finance Committee

– New Office of Internal Audit reporting directly to Board

• Strengthened Capital Department– Reorganization of department/increased supervision

– Outside expertise from Education Service District

• Created Ethics Program/Strengthened Hotline• Revised procurement procedures/increased training

The Current Situation:Managing Public Resources

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Funding our Schools: The Building Excellence (BEX) Capital Levy

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• Building safety and security – Seismic upgrades and middle/high school on-line security systems

• Capacity – More seats and space in core facilities

• Building conditions – Reducing deferred maintenance

• Accessibility and flexibility for programs and services– Provide equitable program distribution including Accelerated

Progress Program (APP), STEM, International Education, etc.

• Updating Technology

BEX IV Capital Levy: Addressing Challenges in Every Region

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North Region % of Total

BEX & BTA I , II & III37%

Central Region % of Total

BEX & BTA I, II & III18%

South East Region % of Total

BEX & BTA I, II & III23%

South West Region % of Total

BEX & BTA I, II & III22%

History of Capital Spending in SPS

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Funding for Proposed BEX IV ProjectsProject/Use Estimated Cost ($M)

Buildings (new schools & additions) $437.9

Capacity Flexibility $20.8

Project Management $28.5

Academics (new programs … i.e. IB, STEM) $3.0

Capacity Management $11.0

Infrastructure (fields, roofs, utilities, equipment) $12.8

Lunchrooms/Core Facilities $9.5

Safety and Seismic Improvements $54.9

Interim Downtown School (planning funding only) $5.0

Major Preventive Maintenance $18.0

Technology (infrastructure, classroom technology,Academic & business application projects)

$53.8

Total $655.2

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BEX IV: How Capital Levy Funding Works$655.2 Million 2014-2019

Fiscal Year 2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

2019-2020 Total

Levy Revenues $54.6 $109.2 $109.2 $109.2 $109.2 $109.2 $54.6 $655.2

Note: 1. Capital levy proceeds are received in equal amounts over six calendar years2. School fiscal years run from September-August; tax collections are received

twice annually, in April and October

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Denny Elementary• Arbor Heights - ReplaceInterim• Boren - Interim

Hamilton High School• Lincoln – ModernizeInterim• Lincoln - Interim

$655.2 M (5% Portables)

McClure Elementary• Queen Anne - AdditionCity Planning• Interim Downtown School- New Washington

Middle • Meany – ReconfigureHigh School• Mann – Modernize/Addition• World School - Modernize

Madison Elementary• Schmitz Park at Genesse Hill –

New Replacement• Fairmount Park – Open /

Modernize/Addition

Whitman Elementary• Wilson Pacific - New• North Beach – ReplaceMiddle • Wilson Pacific – New

Eckstein Elementary• School @ Thornton Creek - New• Olympic Hills – ReplaceInterim• John Marshall - Interim

Mercer Middle • Mercer – AdditionInterim• Old Van Asselt - Interim• Columbia - Interim

Aki KuroseElementary• Wing Luke – New Replacement

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Funding our Schools: Operations Levy

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The Operations Levy: 27% of the District’s General Fund Budget

Funds day-to-day educational programs and services not fully funded by the State:

• 6th period classes at middle & high school levels• Teachers and instructional assistants• Textbooks and classroom supplies• Bilingual and special education services• Bus transportation, security, other operations and

maintenance• Student activities, such as athletics, arts, extra-

curricular and co-curricular activities • Professional development & training

Federal13% Other

1%

Local Levy27%

Local Non-Tax5%

State54%

FY 2012-13 Revenues

Perspective: 2012-13 General Fund Budget = $591M

A 27% reduction would equal approximately $160M!

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Funding our Schools: Tentative Three-Year Operations Levy

2014 $167.1 million

2015 $185.9 million

2016 $200.4 million

Total $553.4 million*

*Increased levy amount incorporates projected enrollment growth

Funding our Schools: The Cost to Renew the BEX and

Operations Levies

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Estimated SPS Annual Property TaxesBased Upon a $400,000 Home Value

Estimated Property Taxes

Type of Levy2013 (Current)

2014(Proposed)

2015 (Proposed)

2016 (Proposed)

Operations $ 556 $ 578 $ 624 $ 644

BEX III & IV $ 285 $ 378 $ 367 $ 351

BTA III $ 157 $ 156 $ 151 $ 145 Total $ 998 $1,112 $ 1,142 $ 1,140

Annual change from current N/A

$114

$144

$142

Monthly change from current N/A

$10

$12

$12

21212121

Funding our Schools: How Seattle Compares to the Region

Federal WayShoreline

KentHighlineIssaquah

RentonLake Washington

BellevueMercer Island

Seattle ProposedSeattle

$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

2012 Total Education Levy Rates Per $1,000 Assessed Value

On a $400,000 assessed home value the total proposed levy rate increase would result in a $114 annual tax increase in 2014.

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• Community engagement meetings– September 20th, 24th and 27th

• October 4th FACMAC meeting – review feedback• October 10th Board work session – staff

proposal to Board• October 17th Board introduction • November 7th Board action• February 12, 2013 vote on both levies

Next Steps for BEX and Operations Levy Renewal

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• Questions and answers• Feedback

We want your feedback and ideas! Please submit your feedback tonight or via email by September 30, 2012 to: Capacity@seattleschools.org

Thank you for attending!