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Budget 101 and Beyond – January 8, 2014

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. RSD Vision.

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Budget 101 and Beyond – January 8, 2014

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  1. Budget 101 and Beyond – January 8, 2014

  2. 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

  3. RSD Vision 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. 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.

  4. RSD Strategic Priorities Elevate Student Achievement Every student graduates college-prepared and/or career ready. Support and Develop Our Human Resources A highly effective and professional team that prioritizes student growth, values collaboration and seeks continuous growth and improvement. Sustain Safe and Vibrant School Communities Personalized supports that nurture stakeholder engagement, student success, and safe and effective school environments. Balance Resources to Maximize Student Achievement Wise, transparent stewardship of district resources that are prioritized for student achievement.

  5. 2013-14 Adopted BudgetAll Funds$96,505,200

  6. General Fund Resources2013-14 Projection Local Property Taxes 28.6%

  7. Budget 101 and Beyond – January 8, 2014 History of School Funding • Measure 5 • Passed in 1990 • Capped property tax rate to $5 per $1,000 of assessed value for public education • Required State to cover any local revenue losses to public education

  8. Budget 101 and Beyond – January 8, 2014 History of School Funding • Measures 47 and 50 • Passed in 1996 and 1997 respectively • Switched to permanent rates • Cut assessed property values • Capped growth of assessed property values to 3% a year

  9. Budget 101 and Beyond – January 8, 2014 History of School Funding School Funding post Measures 5, 47, and 50: • 30% Local Revenue (property taxes) • 60% State Revenue (income taxes) • 10% Federal Revenue

  10. Budget 101 and Beyond – January 8, 2014 History of School Funding Consequences of Measures 5, 47, and 50: • Increased volatility of school funding • Shifted funding from property to income tax • Made state primary source of school funding • Equalized funding across districts

  11. Education’s Share of State Budget

  12. K-12 Funding 1990-91 through 2014-15 Billions of Dollars

  13. Budget 101 and Beyond – January 8, 2014 Goals of School Funding Formula • Equalize funding across all districts • Equalize funding between districts and education service districts (ESDs) • Define equity according to student and district characteristics (weights)

  14. Budget 101 and Beyond – January 8, 2014 Distribution Principles • Equalize district funding: • Distribute all state funding • Account for all local revenue • Equalize District and ESD funding: • Districts receive 95.5% • ESDs receive 4.5% • District Equity: • More weights receive more funding • Local Control: • Districts control spending decisions unless Legislature states otherwise

  15. EQUALIZATION FORMULAGENERAL FORMAT STATE REVENUE + LOCAL REVENUE EQUALS BASE FUNDING PER STUDENT COST FACTORS STUDENTS X X

  16. EQUALIZATION FORMULA STATE REVENUE + LOCAL REVENUE EQUALS General Purpose Grant Transportation Grant Facility Grant + +

  17. Budget 101 and Beyond – January 8, 2014 Formula Is Not • A general cost reimbursement • A revenue entitlement per student • An assurance of funding stability or adequacy • A measure of student outcomes • An accountability system

  18. Current State and Local Revenue 2013-15 Biennium

  19. State Revenue ($6.65 B) 2013-15 Biennium Includes $100 million from September 30 Special Session

  20. Local Revenue Estimated for 2013-15 biennium

  21. School Finance Presentation – July 17, 2013 District and ESD Revenue • Of the $6.65 billion in state revenue • 95.5% goes to Districts • 4.5% goes to ESDs • All local revenue stays with the school district or ESD where collected

  22. Budget 101 and Beyond – January 8, 2014 State School Fund Components • Carve-outs • Money set aside for specific purposes and grants • Weights • Variables used to determine each district and ESD’s share of state school fund

  23. Budget 101 and Beyond – January 8, 2014 State School Fund: Specific Programs • Talented and Gifted Education • $350,000 per biennium • Speech Pathology Program • $150,000 per biennium • Long Term Care and Treatment and Oregon School for the Deaf • Approximately $22 million per biennium • Oregon Virtual School District • $1.6 million per biennium

  24. Budget 101 and Beyond – January 8, 2014 State School Fund: Sub-Grants • Small High School Grant • Provides additional funds to small high schools • $2.5 million per year (ends June 30, 2015) • High Cost Disability Grant • Reimburses districts for costs over $30,000 per IEP student • $18 million per year • Facility Grant • Pays up to 8% of construction costs for new classroom furnishings • $20 million per biennium

  25. Budget 101 and Beyond – January 8, 2014 State School Fund: Sub-Grants • Transportation Grant • Reimburses eligible transportation costs • Reimbursement rates set by costs per ADMr • Reimburse at 70%, 80% or 90% of eligible costs • Network of Quality Teaching and Learning (NQTL) • Supports implementation of Educator Effectiveness (SB 290) and CCSS to improve educator practices • $45 million for the 2013-15 biennium

  26. Budget 101 and Beyond – January 8, 2014 Student Weights • Average Daily Membership (resident) • Up to 1.0 weight • Students eligible for Special Education • 1.0 weight up to 11% ADMr • Special Education Students above 11% • Variable • ESL students • 0.5 weight

  27. Budget 101 and Beyond – January 8, 2014 Student Weights • Pregnant and Parenting Students • 1.0 weight • Students in Poverty • 0.25 weight • Students in Foster care • 0.25 weight • Students in Neglected/Delinquent Programs • 0.25 weight

  28. Budget 101 and Beyond – January 8, 2014 School Weights • Remote Small Elementary School correction • 8 miles from nearest elementary school in same district • No more than 28 students per grade • Small High School Correction • No more than 350 students for 4 grades • No more than 267 students for 3 grades

  29. Weights

  30. 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 Budget 101 and Beyond – January 8, 2014 Formula Student Counts

  31. Budget 101 and Beyond – January 8, 2014 Teacher Experience • Recognizes that more experienced teachers may have increased costs • Calculation (District Average – State Average) • Teacher Experience Factor may be positive or negative value

  32. Budget 101 and Beyond – January 8, 2014 District Formula • (District ADMw * ($4,500 + [$25 * (teacher experience difference]) * funding ratio) – Local Revenue • District ADMw: District Weights • $4,500: minimum funding • Funding Ratio completely distributes all State School Funds

  33. FORMULA EXAMPLE STATE REVENUE + LOCAL REVENUE EQUALS Up to 8% of Const. Costs $4,500 adjusted by teacher experience and to total funds Student ADMw Extended 70% of Transport Costs + + X [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

  34. School Finance Presentation – July 17, 2013 Pause …. Questions on State School Fund?

  35. Budget 101 and Beyond – January 8, 2014 Budget Drivers - Revenue • 2014-15 State K-12 Education Budget • $3.44 Billion • *51%* of $6.55 Billion + $100 million from Special Session • Enrollment Estimate • District-wide flat enrollment • Slight decrease in RPA estimate • 1.5% growth due to in-migration • Offset by declining KG enrollment

  36. Education’s Share of State Budget

  37. State School Fund (SSF) Per ADMw * Assumes no changes in local revenues from 2013-14.

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

  39. Budget 101 and Beyond – January 8, 2014 Budget Drivers - Expenditures • Staffing - Related • Enrollment • Class Size Ratios

  40. Budget 101 and Beyond – January 8, 2014 Budget Drivers - Expenditures • Salary - Related • Contract Days • Horizontal & vertical salary schedule movement • COLA • Related Payroll Costs • PERS rates • Health Insurance Cap – currently $1,145 • Other Contractual Employee Benefits

  41. RSD Average PERS Rates

  42. Budget 101 and Beyond – January 8, 2014 Budget Unknowns • Poverty weights resolution • Potential new grants • Contract negotiations

  43. Budget Process and Roles

  44. Budget 101 and Beyond – January 8, 2014 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

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