1. TSD Budget Committee
February 16, 2017

2. Budget Planning History
Previous Committee Meetings
Prior Years Budget Process

3. Required/Negotiated Expenditures
Utilities / Fuel
Contract Negotiations
Additional Days
Benefits
Salary Increases
Restricted Programs
Title 1, LAP, Institution Funding

4. Budget Review
Budget Hearing July 22,2016

5. General Fund Revenue 2015-16 to 2016-17
Category
+/-
Local
Levy
$14,185,460
$14,730,237
$544,777
Fees, Grants, Etc.
$2,334,858
$2,250,713
($84,145)
State
Enr. / K-3 / Full Day K / CTE / ALE
$43,581,560
$45,173,179
$1,591,619
Special Ed / LAP / Bilingual / Hi Cap / Transportation
$9,014,829
$9,311,564
$296,735
Federal
Title 1 / Special Ed / Title 2 / Food Service
$4,384,394
$3,601,607
($782,787)
Net Revenue Change:
$1,566,199

6. Certificated Salaries
Expenditures to
Category
+ / -
Certificated Salaries
$31,052,641
$32,406,792
$1,354,151
Classified Salaries
$11,902,037
$12,336,365
$434,328
Benefits
$16,672,050
$16,822,383
$150,333
Supplies & Materials
$4,685,010
$5,175,471
$490,461
Purchased Services
$9,054,364
$8,416,644
($637,720)
Travel
$168,440
$156,100
($12,340)
Capital Outlay
$91,559
$123,445
$31,986
TOTALS 
$73,626,101
$75,437,200
$1,811,199

7. Revenue /Expenditure Changes 2015-16 to 2016-17
Total Budgeted Revenue Difference = $1,566,199
Total Budgeted Expenditures = $1,811,199
Difference = <$245,000>
Why?
New Market: Planned Fund Balance Exp. – Maintenance ($165,000)
TSD Middle School Transition: 1.0 FTE Counselor to support middle school transition ($80,000)

8. 2016-17 Beginning Fund Balance
MS Technology: $200,000
MS Transition Costs: $600,000
Track Replace: $300,000
Curr. Reserve: $550,000
Projected FB:
$7,953,221

9. 2016-17 Ending Fund Balance 2015-16 Projected FB: $7,708,221
MS Technology: $200,000
MS Transition Costs: $520,000
Track Replace: $350,000
Curr. Reserve: $500,000
Projected FB:
$7,708,221

10. Stakeholder Budget Survey

11. Budget Reductions & Enhancements 2016-17
Employee Salaries/Benefits
School Resource Officer #2
MS Counselor – Transition
Elementary TOGETHER Support
Athletic Trainers for THS/BHHS
GRuB Staffing
Custodial time at PGS and New Market Preschool
Grad. Coach at BHHS
.2 FTE music staff for Hi-Cap and Elem.
Additional Para Support
Special Education Budget Capacity
Surplus Special Education Staff
Department Budget Reductions (Stud. Learning, Maintenance, Transportation)
1.0 FTE Reduction in Student Learning
Elections Budget Reduced

12. Revenues vs. Expenditures TSD Basic Ed. Only 2016-17
Difference
Basic Education Programs
01 Basic Education*
54,657,152
$42,227,221
02 Alt Learning Experience
(Included in 01)
459,988
03 Dropout Reengagement
166,263
31-34 Career & Technical Ed
1,920,552
1,910,316
Basic Ed Contribution TWEST
61,087
73 Summer School
25,000
86 Community Services
545,015
97 Districtwide Support
175,000
9,571,923
Subtotal
$ 56,752,704
$ 54,967,534
$ 1,785,890
* All local levy and levy equalization revenue is included in
Basic Education revenue in this display.

13. Revenues vs. Expenditures TSD Categorical Pgms. Only 2016-17
Other Categorical Programs
Revenue
Expenditures
Difference
21 State Special Education
5,937,927
7,165,566
(1,227,639)
22 State Birth to Three Prog
219,777
189,608
30,169
24 Federal Special Education
1,207,410
558,863
648,547
38 Federal Career & Tech Ed
21,000
20,309
691
51 Title I Disadvantaged
726,900
702,844
24,056
52 Title II Prof Devel
170,000
117,703
52,297
55 Learning Assistance
1,074,350
1,169,360
(95,010)
58 Special & Pilot Prog
249,112
232,963
16,149
64 Federal English Language
65 Bilingual
112,472
241,384
(128,913)
71 Traffic Safety Education
500
(500)
74 Highly Capable
69,709
339,207
(269,498)
79 Other Instructional Prog
89 Community Services
35,000
62,080
(27,080)
98 Food Service
1,895,182
1,994,020
(98,838)
99 Pupil Transportation
2,538,117
3,328,438
(790,322)
Total Other Categorical Prgms
$ 14,256,955
$ 16,122,846
$(1,865,891)
Total Tumwater Schools
$ 71,009,659
$ 71,090,380
($80,001)

14. Revenues vs. Expenditures All Schools/Programs 2016-17
Difference
Total Tumwater Schools Only*
$71,009,659
$71,028,573
($80,001)
New Market Skills Center
Loc 650 Skills Center Basic
$2,844,606
$3,023,212
(178,606)
Loc 653 New Market High School
312,727
283,346
29,381
Loc 655 Summer School Program
733,094
748,869
(15,775)
3,890,427
4,055,427
(165,000)
Tumwater West Detention Center
56 State Institutions
$237,917
$300,799
(62,882)
51 Title I Neg & Delinquent
54,297
52,502
1,795
Basic Education Contribution
61,807
353,301
Total All Schools/Programs *
$75,192,300
$75,437,300
($245,000)

15. General Fund MSOC Disclosure MSOC = “Materials, Supplies, Operating Costs” Required Presentation: State Budget (2ESHB-2376) Section 502(8)(a)(ii)
Combined Budgeted MSOC Revenue
Regular Instruction (Column A)
$ ,951,425
Grades 7-8 CTE
$ ,441
Grades 9-12 CTE
$ ,508
Skills Center
$ ,324
Grades 9-12 Additional (Column I)
$ ,147
Total MSOC Allocation
$ ,395,846

16. General Fund MSOC Disclosure
Objects of MSOC Expenditure
Supplies
$ ,175,471
Purchased Services*
$ ,416,644
Travel
$ ,100
Capital Outlay
$ ,545
Total Budgeted MSOC Expenditures
$ ,871,760
Difference
$ (5,475,914)
* Purchased services examples: Utilities, contractors, professional development, subscriptions, ESD Fees, Etc.

17. General Fund MSOC Disclosure
Supplies
Purchased Services
Travel
Capital Outlay
Prg 01
$ 2,401,354
$ ,019,512
$ 89,133
$ ,545
Prg 02
$ ,500
$ ,000
$ ,000
$ ,184
Prg 03 $
$ ,263 $ $
Prg 31
$ ,509
$ ,017
Prg 34
$ ,000 $
Prg 45
$ ,062
$ ,025,059
$ 16,000
$ ,816
Prg 97
$ ,616
$ ,684,036
$ 30,117
$ ,000
All Other Programs
$ 1,902,430
$ ,757
$ 19,850
$ ,000
Totals
$ 5,175,471
$ ,416,644
$ 156,100
$ ,545

18. Capital Projects Fund Revenues*
$ Change
Beginning Fund Balance
$24,665,000
$33,888,011
$ 9,223,011
Revenues/Other Fin. Sources
Local Impact Fees
$550,000
$500,000
(50,000)
Investment Earnings
150,000
100,000
Rental & Leases
20,000
(20,000)
State Assistance
35,000
3,400,000
3,365,000
New Market State
40,000
50,000
10,000
Bond Sales
30,065,000
36,000,000
5,935,000
Transfer from Debt Service
Transfer from Gen Fund
Total Revenues
$30,960,000
$40,150,000
$9,190,000

19. Capital Projects Fund Net Resources*
$ Change
Total Revenues
$30,960,000
$40,150,000
$ 9,190,000
Expenditures
Buildings
$550,000
$49,485,000
48,935,000
Sites
26,317,000
2,260,000
(24,057,000)
Equipment
2,020,000
1,080,000
(940,000)
Instructional Technology
623,000
Bond-Related and Other
75,000 -
Total Expenditures
$28,962,000
$53,523,000
$ 24,561,000
Transfer to Gen Fund (Tech.)
100,000
Ending Fund Balance
$ 26,563,000
$ 20,415,011
$ (6,147,989)

20. Debt Service Fund 2015-16 2016-17 Difference Beginning Fund Balance
$9,412,295
$8,592,929
$ (819,366.00)
Reserve for Nonvoted Debt -
Revenues/Other Fin. Sources
Local Taxes
$11,059,640
$10,879,381
(180,259)
Investment Earnings
50,000
State Forest Revenue
120,000
250,000
130,000
Total Revenues
$11,229,640
$11,179,381
$ (869,625.00)
Expenditures
Voted Debt
Bond Principal
$9,485,000
$9,920,000
435,000
Bond Interest
3,596,719
4,365,588
768,869
Bond Fees & Misc.
100,000
Nonvoted Debt
Total Expenditures
$13,181,719
$14,385,588
$ 1,203,869.00
Transfer to Capital Projects
$100,000
Ending Fund Balance
$7,360,216
$5,286,722
$ (2,073,494.00)

21. Transportation Vehicle Fund
State bus depreciation funding is expected to be around $471,275 which provides enough revenue for at least four new school buses consistent with our acquisition practices.

22. Transportation Vehicle Fund*
$ Change
Beginning Fund Balance
$139,666
$33,186
$(106,480)
Revenues/Other Fin. Sources
State Depreciation
$445,277
$471,275
25,998
Interest Earnings
1,295
300
(995)
Insurance Recoveries
10,686
(10,686)
Sale of Equipment
10,000 -
Total Revenues
$467,258
$481,575
$14,317
Expenditures
Bus Purchase (5 busses ; 4 Busses )
$600,000
$500,000
(100,000)
Total Expenditures
$(100,000)
Ending Fund Balance
$6,924
$14,761
$ 7,837

23. Associated Student Body Fund*
$ Change
Beginning Fund Balance
$446,504
$432,270
$(14,234)
Revenues/Other Fin. Sources
General Student Body
$666,200
$712,025
45,825
Athletics
433,985
497,250
63,265
Classes
260,900
246,780
(14,120)
Clubs
472,107
502,910
30,803
Private Moneys
46,800
37,375
(9,425)
Total Revenues
$1,879,992
$1,996,340
$116,348
Expenditures
$595,670
$757,325
161,655
509,558
$568,125
58,567
221,880
$211,480
(10,400)
470,335
$523,760
53,425
45,800
$28,375
(17,425)
Total Expenditures
$1,843,243
$2,089,065
$245,822
Ending Fund Balance
$483,253
$339,545
$(143,708)

24. Fund Balance 101 – (revised)
Reserved
Inventory – Maintenance / Custodial, Transportation, Food Service
These are non-cash items such as tires, brakes, food, cleaning supplies, etc…
Pre-Paid Expenditures
Bills which are due currently but are for the following school year such as Insurance, curriculum, etc…
Skills Center
Tumwater West
LAP / Special Ed / Other Specific Programs
Imprest Accounts
Checking accounts at THS, BHHS and the District Office

25. Fund Balance 101 – (revised)
Unassigned
Minimum FB Board Policy
5.5% of budgeted expenditures excluding New Market, Tumwater West and contingencies.
Program/Facility Reserve – MS Transition, Track Replacement, Curriculum
The amount left over after all other Reserved (previous slide), Minimum Fund Balance and Program/Facility Reserves

27. McCleary 2014-15 School District DATA
Per the state, the full funding level in the SY is at least $18,030 per student AAFTE (statewide average)
Current year shows an estimated shortfall of $5,169 per student AAFTE (again statewide average)
November 2016 AAFTE 6, x $5,169 = $34,462,705

28. Levy Cliff
$3,161,989 Reduction in CY 2018, $2,715,155 Reduction in CY 2019
Fiscal Year Fiscal Year
Levy Lost $ ,456, $ ,456, $ ,204,697.73
$ ,464,156.94
LEA Lost
$ , $ ,014.16
$ ,580.64
$ ,419.48
Total Annual Loss $ (1,777,690.95) $ (2,926,576.42)

29. 2017-18 Retirement Rates – (revised)
TRS from 13.13% to 15.2%
SERS from 11.58% to 13.48%
Using this year’s budget as a base increases would be:
TRS - $642,989
SERS - $307,063
Programs not funded based on staffing take a direct hit
Special Ed, Federal Programs, Transportation, Food Service
Estimated District Cost: $ 216,126, plus Estimated Lost Program dollars due to increase: $ 237,942.83

30. 2017-18 Levy Cliff/Pension Rate Impact – (new)
Levy Cliff Impact $ (1,777,691)
Pension Rate Impact $ (454,069)
Combined Impact $ (2,231,760)

31. 6-8 Transition Additional Positions
2 Counselors (one each middle school)
2 PE/Health (one each middle school)
1 Art at BMS
Using the average salary the cost estimate is:
Base Salary $57,052 + Benefits $23,423 = $80,475
Addt’l Days (27.5) $8,716 + Benefits $2,044 = $ 10,760
Total = $91,235 times 5 new teachers = $456,175 (new costs)

32. Legislative Update SB 5607 – Education Funding
Passed Senate 25-24, House Appropriations Meeting February 6, 2017
HB 1843 / SB 5623 – Basic Education Program (Funding)
Passed House Appropriations 18-15
SHB 1059 / SB 5023 – Levy Lid Revisions Delay
Passed House 62-35, Senate Ways & Means Committee January 30,2017
HB 1067 / SB 5048 – Operating Budget
House Appropriations Meeting February 9, 2017

33. Draft Planning Process & Input – (revised)
What is the role of the committee?
Board of Directors makes the final budget decisions
Budget Survey
Your thoughts – bring back for next meeting
What budget planning process suggestions, if any, do you have for district officials to consider? Other thoughts?
The district plans to administer another stakeholder budget survey. What suggestions do you have for the categories in the survey? What ideas or suggestions do you have to increase participation in the survey?
In light of legislative uncertainty and the potential adverse impacts of this on district funding for next year, what feedback do you have for the district regarding how to go about determining reductions and/or what reductions you believe the district should consider if reductions become necessary?
We are also interested in your input on this question: How can/should the district best communicate about budget planning and related issues to its stakeholders?

34. Contact Information
Mitch Thompson – Director of Financial Services
Rick Bonner – Accounting Supervisor
John Bash

35. Thank You
Questions?