End of Year Financial Report and

Governor’s Budget UpdateJanuary 12, 2011

Planning for

2011-2016:

Looking Ahead

Purpose

• To review:

• End of Year financial status

• Update on enrollment

• Capital Projects Accountability Initial Report

• Budget projection/Governor’s Budget 2010-11

and 2011-12

• To discuss additional considerations

moving forward in the budget process

for the General Fund

2

Agenda

• End of Year Status

• Enrollment Projection Update

• First annual Capital Projects Accountability Report

• Update 2010-11 Budget and 2011-12 Budget Projection

• Impact and Considerations

• Way Ahead

3

1. 2007-08 Budget

2. Long Range 5 year Plan

3. 2008-09 Budget

4. Prepare for School Support Levy

5. Maintain Heavy Impact

6. 2009-10 Budget

7. Legislative Action 2010-11

8. Successful Passage of School Support Levy

9. 2010-11 Budget

10. Successful Passage of Capital Projects

11. 2011-12 Budget

12. Review/Revise Long Range Plan

SY 10-11

4

Bridge to 2012 “Phases”August 13, 2008

$9

85

,44

5

$11,5

49,2

69

$7,0

03,3

35

$11,9

83,2

62

$159,8

22

$1,0

80,6

33

$10,0

61,6

41

$6,5

12,2

84

$11,9

10,7

72

$399,9

62

$1,1

12,2

15

$12,0

26,5

18

$5,6

39,9

63

$11,5

20,1

79

$208,2

26

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Associated

Student

Body

Capital

Projects

Debt

Service

General Transportation

Vehicle

Ending Fund Balance by Fund

07-08 Actual 08-09 Actual 09-10 Actual

5

General Fund Ending Fund Balance

$7,645,297

$11,012,601

$11,983,262 $11,910,772

$11,520,179

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2005-06 2006-07 2007-08 2008-09 2009-10

FCR = $4.3 M

FCR = $4.3 MFCR = $4.1 M

FCR = $4.1 M

FCR = $0 M

6

Average monthly payroll for 2009-10 = $8.3 MAverage Accounts Payable (Bills) = $1.2 M

Total Monthly= $9.5 M

FCR = Federal Contingency Reserve

2009-10 Ending Fund Balance

7

Federal

Contingency

Reserve

$4.1 M

Carryover

$2.1 M

Inventory &

Insurance

$1.1 M

Undesignated

$0.9 M

Committed

Reserve

$3.4 MExpenditures

$113.5 M

Beg. Fund

Balance

$11.9 M

End. Fund

Balance

$11.5 M

Components of

Ending Fund Balance

Expenditures

$113.5 M

Discussion

• Question: Given a monthly payroll and bill payment (accounts payable) of 9-10 million, the 3% reserve and the Federal Contingency Reserve (which provides the Impact Aid for the first portion of the school year), what other considerations might be important for the fund balance?

• Share 1 point or consideration

Reference: Year End Report page 2

8

12,648

12,450

12,276

12,079

11,732

11,508 11,458

11,184

10,912

10,676 10,546

10,371 10,257 10,197

11,085

10,842 10,739

10,599

10,49510,429

10,382

10,000

10,500

11,000

11,500

12,000

12,500

13,000

02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

Enrollment (FTE) Updated Oct 2010

Projection May 2010 Projection Oct 2010Note: High point District Enrollment (FTE) in 1998-99 = 13,051

9See back-up handout

Discussion ?

• Question: As you look at our district enrollment what strikes you? What makes you wonder?

• Share 1 point or consideration

Reference: Year End Report pages 10 - 12

10

CAPITAL PROJECTS ANNUAL

REPORT#1

Accountability For District and Community

11

Annual Capital Projects

Accountability Report• 2009-10 Projects

• On time, On budget

• Backlog of Repairs

• Emergent Critical Repairs

• 2010-11 Projects

(Executive Overview)

• Energy Conservation

Efforts

• Small Works Roster

12

On Time

On Time Not on time

13

2009-10 Capital Projects

On Time and On Budget

5/7

Substantial Completion

On Budget

On Budget Not on Budget

5/7

Within Budgeted Funds

KLSS Wood Shop, RTJH Weight Room FlooringKLSS Wood Shop, RTJH Weight Room Flooring

Backlog of Repairs

$64 M to address backlog

2001-2010Heavy Impact, Grant, State Match

150 Million

112 Million

75 Million

37 Million

14

Emergent Critical Repairs

15

$69 K

$247 K

$530 K $595 K

$1.05 M

$779 K

$1.19 M

$1.51 M

$1.81 M

$2.12 M

$2.45 M

$2.80 M

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Actual Emergent Critical Repair Costs Estimated Emergent Repairs (Spring 2010)

2010-11 Projects

16 Scheduled for Substantial Completion by August 31, 2011

On Time

On

Budget

On

Scope Planned

Multi-Year ProjectsJW Emergency Generator

CKJHS Freezer Replacement

2010-11 ProjectsKitchen Hoods (BR/CC/EH/SI/WO)

CKJHS HVAC Improvements

CKHS Portable Walkway

SR Music/Gym HVAC Repairs

LITEHouse Roof

Flooring Projects

Energy Conservation - Phase V

Energy Conservation – Phase VI

Project Management

Funding Dependent Projects

CKHS Circulation Pump (stimulus funds)

Energy Conservation - Phase VII (grant funds)

Energy Conservation - Phase VIII (grant funds)

Technology (Capital Projects Levy)

Jackson Park Replacement (Capital Projects Levy)

Emergent Critical RepairsKlahowya Gym Curtain Replacement

Food Service Central Freezers

Energy Conservation: Cost

Avoidance

17

$65,584$165,007

$117,936$222,173

$105,388 $135,822$27,267

$228,517

$296,989

$1,364,681

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Total Savings

Energy Cost Avoidance (Savings to the District)Base Year 2000/2001 to 2009/2010

Phase YearTotal Project

Costs

Total Grants and Rebates

Received/ApprovedDistrict Cost

Energy Savings (Cost Avoidance)

I 2001-02 $392,265 $118,653 $273,612 $273,612

II 2002-03 $511,609 $135,547 $376,062 $376,062

Other * 2003-08 $568,875 $255,994 $312,881 $312,881

III 2007-08 $1,191,757 $312,281 $879,476 $394,264

IV 2008-09 $174,002 $61,999 $112,003 $7,862

Totals $2,838,508 $884,474 $1,954,034 $1,364,681

V** 2009-10 and 2010-11 $1,858,461 $868,694 $989,767 $0

VI** 2010-11 $1,973,297 $900,000 $1,073,297 $0

* Projects not performance-based contracting** Grants have been approved, but not received

Energy Conservation Efforts

18

Currently 79% of $2,838,508 for completed energy

projects paid through grants and energy savings

Small Works Roster

Annual Update

19

SMALL WORKS ROSTER

CONTRACTS AWARDED FISCAL YEAR 2009 - 2010

Project Description Contract Award Contract Amount Date of Award

Location

Quotations

Available

Woodlands Elementary School -

Fire Alarm System ADA UpgradeFire One, Inc. $29,912.86 January 13, 2010

Capital Projects

Office

Discussion

• These slides are intended to provide

a summary for our School Board and

all stakeholders. Are they easy to

read?

• Is something missing?

• Share one additional point or

consideration

20

UPDATE: 2010-11 BUDGET AND

2011-12 BUDGET PROJECTIONS

21

Special Legislative Session:

Reductions for 2010-11

• Eliminate K-4 Staffing Ratio January

2011

• $500,000

• 6.3% Across-the-Board Reduction

• $328,595

• Eliminate Federal Edujob Dollars

• $2,439,600

22

Reductions from Governor’s Proposed

Supplemental 2011 Budget

Impacts For The Current SY 10-11• Eliminates ALL K-4 staffing (retro 7/1/2010)

$525,911

• Eliminates ALL Gifted State Funding (retro 7/1/10) $104,000

• Eliminates Medicaid Reimbursement for Special Education (Jan 1,2011) $57,000

• Reduces LEA by 6.3% (Tiered model) $95,000

Moves June’s State monthly apportionment from June 30, 2011 to July 1, 2011 (cash balance)

23

Governor’s 2011-13 Biennial Budget

• Continue Elimination of:• K-4 Staffing

• Gifted Funding

• LEA (CKSD at 5%) $190,000

• I-728 and I-732 initiatives

• Freezing steps on salary schedule for two years

• Change in school bus depreciation schedule

• Freeze expansion of All Day Kindergarten

• Increased Retirement Contributions $335,000

• Suspension of National Board stipends

24

2010-11 Budget Update and

2011-12 Projections

25

Carryforward from Previous Year

Basic Ed Apportionment

Special Ed Apportionment

Staffing Adjustments due to Enrollment

Levy Increase

Operating Adjustments: Instructional Materials

Utilities, Insurance

Elections

COLA

Retirement & Benefits

Revenue Reductions

Safety Net

Medicaid Special Education

Gifted

K-4 Staffing

Local Effort Assistance

State Cuts - 6.287%

IDEA Stimulus Funds (District Support)

IDEA Stimulus Funds (New Programs)

Title I Stimulus Funds

I728 Carryover

TOTAL SHORTFALL

2010-11

0

906,103

103,597

(600,000)

(57,000)

(104,000)

(1,025,911)

(328,595)

$(1,105,806.00)

2011-12

(1,105,806)

(1,230,521)

(145,978)

619,966

1,786,001

(35,000)

(15,000)

(335,000)

(28,000)

(190,000)

(600,000)

(300,000)

(600,000)

$(2,179,338.19)

Our Continuing Practice Budget

Methodology

• Maintain Community Support – Levy commitments

• Congruent Reductions (Match category or area of funding to reduction)

• Sustainability – Posture for continued success

• Multiply year solutions – solving the problems over longer times if possible

• Required vs. Needed vs. Nice to have

26

• All Day Kindergarten – Free All Schools

• K-6 Literacy Adoption

• School Configuration

• Legislation

• SB 6696 Staff and Leader Development

• SHB 2776 Prototypical Funding

• Intervention Support – Post Stimulus Cliff and State Reductions

• Elementary Class Size

27

Improving Student Performance:

The Future…

Discussion ?

• Question: Given the uncertain fiscal

outlook, is there anything else we

should consider as we move

forward?

• Share 1point or consideration

28

1. Successful Passage of Capital Projects Levy2. 2011-12 Budget3. Review/Revise Long Range Fiscal Plan4. 2012-13 Budget5. Reauthorization: Maintain Heavy Impact6. Prepare for School Support Levy7. 2013-14 Budget8. Successful Passage of School Support Levy9. 2014-15 Budget10. Plan for Phase Two of Capital Projects Long Range

Master Plan11. 2015-16 Budget12. Successful Passage of Capital Projects Phase Two13. 2016-17 Budget14. Review and Revise Long Range Fiscal Plan

29

Long Range Fiscal Plan: 2011-16

SY 10-11

SY 11-12

SY 12-13

SY 13-14

SY 14-15

SY 15-16

Budget Update Summary

Key Points

• 1. Legislative Actions – January-April

• 2. RIF II Considerations

•Enrollment Actual and Projection

•Retirements and Resignations

•Leave of Absences

• 3. Capital Projects Levy Success

• 4. Complex and Interdependent

30

2010-11 Budget Timeline and Process

31