1. Photos by Susie Fitzhugh Funding our Schools: February 2013 Levies Community Engagement Meetings September 20, 24, 27, 2012

2. 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 2

3. The Current Situation: Challenges and Opportunities for Funding our Schools 3

4. 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 4

5. 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 5 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)

6. 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 6

7. 7 SPS Enrollment Projections (High & Mid Range) – June 2012 Educational Data Solutions Projections (Consultant) – June 2012

8. 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 8

9. 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 9 The Current Situation: Managing Public Resources

10. Funding our Schools: The Building Excellence (BEX) Capital Levy 10

11. 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 11

12. 12 North Region % of Total BEX & BTA I, II & III 37% Central Region % of Total BEX & BTA I, II & III 18% South East Region % of Total BEX & BTA I, II & III 23% South West Region % of Total BEX & BTA I, II & III 22% History of Capital Spending in SPS

13. 13 Funding for Proposed BEX IV Projects Project/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

14. 14 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 $54.6$655.2 Note: 1.Capital levy proceeds are received in equal amounts over six calendar years 2.School fiscal years run from September-August; tax collections are received twice annually, in April and October

15. 15 Denny Elementary Arbor Heights - Replace Interim Boren - Interim Hamilton High School Lincoln – Modernize Interim Lincoln - Interim $655.2 M (5% Portables) McClure Elementary Queen Anne - Addition City Planning Interim Downtown School- New Washington Middle Meany – Reconfigure High 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 – Replace Middle Wilson Pacific – New Eckstein Elementary School @ Thornton Creek - New Olympic Hills – Replace Interim John Marshall - Interim Mercer Middle Mercer – Addition Interim Old Van Asselt - Interim Columbia - Interim Aki Kurose Elementary Wing Luke – New Replacement

16. Funding our Schools: Operations Levy 16

17. 17 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: 6 th 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 Perspective: 2012-13 General Fund Budget = $591M A 27% reduction would equal approximately $160M!

18. 18 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

19. Funding our Schools: The Cost to Renew the BEX and Operations Levies 19

20. 20 Estimated SPS Annual Property Taxes Based Upon a $400,000 Home Value Estimated Property Taxes Type of Levy 2013 (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

21. 21 Funding our Schools: How Seattle Compares to the Region 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.

22. 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 22

23. 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 23 Thank you for attending!