1. Olympia School District Slide 1 9/15/2015 Administration Budget Proposal 2011-12 School Year

2. Slide 2 9/15/2015 Olympia School District Overview Budget Challenges – Enrollment Decline – State Budget Reductions to Date Assumptions and Deficit Projections – House and Senate Proposals; Basis for Planning – Balance Sheet Steps to Developing the Budget Policy Recommendations to Solve for Deficit Reduction in Force

3. Slide 3 9/15/2015 Olympia School District Recent Financial Challenges State funding reductions have forced Olympia School District (OSD) to cut expenditures year-after-year. – In the last 5 years, OSD has cut programs by $6 million. Total revenue (state, federal, local) in the current school year is $1.2 million less than 2008-09 SY.

4. Slide 4 9/15/2015 Olympia School District OSD Has Already Belt-Tightened We are the 33 rd largest district, but our teachers’ income is ranked 106 th in our state. Our administrative costs are below average. If we expended the statewide average amount on administration, we would spend $653,000 more. We have saved $640,000 over 2 years on utility costs. We will do more to reduce costs and protect classrooms: switch copier contracts, reduce utility costs further, furlough administrative staff, for example. More belt-tightening will not save the millions needed.

5. Slide 5 9/15/2015 Olympia School District Financial Challenges for 2011-12 SY 1.Enrollment is slowly declining, generating less in state funding. 2.$2.7 million in ARRA Stimulus funds (provided over 2 years) have expired. 3.State Reductions already enacted: a)State has confiscated 14% of OSD reserve ($671,000). b)State has increased class size at K-3 by 2 students (4 th grade by a partial student); reduces state formula funding. c)State has confiscated $1.9 million in EduJobs federal funds (by reducing state funds by $1.9 million). 4.State law caps local levy collections; in 2012 OSD cannot collect all of levy approved by voters.

6. Slide 6 9/15/2015 Olympia School District OSD Enrollment is Declining

7. Slide 7 9/15/2015 Olympia School District Highlights of Major Changes to OSD Funding $ in Thousands GovernorHouseSenate 1Reduction to Reserve($671) 2K-4 Class Size Increase($850) 3 Add Back K-3 Class Size for Madison/Garfield $0$48$119 4Operating Transportation$464?? 5Transportation Depreciation (TVF)($530)$0($530) 7Gifted($82)$0 73% Salary Reduction $0 (Freezes Schedule) ($999) 8Alternative Learning$0($493)($247) 9Total($1,669)($1,966)($3,178)

8. Slide 8 9/15/2015 Olympia School District State-Funded Class Size 2009-10 SY After K-4 $ Eliminated OSD Negotiated Half-day Kindergarten 23.1125.2323 Grade 123.1125.2323 Grade 223.1125.2323 Grade 323.1125.2325 Grade 426.0727.0027 Grades 5-627.00 27(5 th )/28.7* (6 th ) Grades 7-828.53 28.7* Grades 9-1228.74 28.7* *Represents historical staffing allocation formula; Overload is variable by content.

9. Slide 9 9/15/2015 Olympia School District OSD 2010-11 Ending Fund Balance $ in Thousands2010-11 SY EFB 1Budgeted 2010-11 Ending Fund Balance (September 2010)$4,949 2Reserve decline Attributed to Enrollment Decline-598 3Reserve Decline Attributed to State Reductions Already Imposed -711 5Other Small Adjustments+64 6Revised Anticipated Ending Fund Balance$3,704 7Percent of Expenditures4.3%

10. Slide 10 9/15/2015 Olympia School District Bottom Line for OSD in 2011-12 SY Estimate as of 5/2/11, assuming House- proposed budget: Budget deficit of $2.364 million to solve for 2011-12 SY. Lowest reserve in OSD recent history.

11. Slide 11 9/15/2015 Olympia School District BUDGET DEVELOPMENT STEPS What are the steps to develop the budget?

12. Slide 12 9/15/2015 Olympia School District Developing the 2011-12 SY Budget 1.Identify our revenue for 2011-12 SY. 2.Identify the cost to provide generally the same program in September 2011 as providing in March 2011—Maintenance Level Budget. – Includes increases in budget that are not policy driven, e.g., utilities inflation. – Includes reduction in budget to reflect prior Board intent, e.g., elimination of one-time funding items in 2010-11. – Includes reduction in budget to accommodate enrollment decline or student-based staffing changes, e.g., special programs fewer use of paraeducator hours. 3.Identify and solve our deficit.

13. Slide 13 9/15/2015 Olympia School District Major Maintenance Items Enrollment decline drives lower staffing – 8.2 fewer elementary staff – 4.0 fewer secondary staff – 1.7 fewer special education-endorsed staff Utilities, $72,000 higher Transportation fuel, $105,000 higher Insurance, $58,000 higher Take 1-time expenditures out of budget – August 2010 workshop day – 3 free Full-day Kindergarten classrooms – $20,000 for safety investments

14. Slide 14 9/15/2015 Olympia School District ADMINISTRATION RECOMMENDATIONS What steps does the Administration propose to solve the deficit?

15. Slide 15 9/15/2015 Olympia School District Goals Retain services to students where ever possible. – Prioritize academics, especially math and reading intervention. Keep kindergarten class size as low as possible in light of state increases in class size funding. As small a reduction-in-force (RIF) as possible. Retain Board policy for a 3% reserve. Include a contingency fund for inevitable Fall adjustments.

16. Slide 16 9/15/2015 Olympia School District Highlights of Administrative Proposal More efficient bell schedules to reduce transportation costs. Continued progress to improve access to aligned intervention materials for math and reading to help struggling students. Expanding emphasis on math and science at the middle school level. Kindergarten class size of 23 or lower.

17. Slide 17 9/15/2015 Olympia School District Highlights of Non-Classroom Reductions Administration, 3%. New bell schedules, more efficient transportation, $130,000. Athletics and Activities; $72,000. Custodial hours and substitute custodians; $115,000. Building supplies by 10-15%; $100,000. New Fees: Preschool, on-line education, zero-period courses, breakfast/lunch. Facility rental fee increases; $21,000.

18. Slide 18 9/15/2015 Olympia School District Highlights of Student and Classroom-Related Reductions Reduce PATS by adjusting start and end times according to new bell schedule; 1 hour, 20 minutes reduction in service per week. Reduce preschool teacher time devoted to home visits and extra planning. Increase elementary class size by about 2 per class in grades 1-5. Increase secondary class size by 1.3 students per teacher; average of 30 per teacher/section.

19. Slide 19 9/15/2015 Olympia School District REDUCTION IN FORCE What number of certificated instructional positions are being eliminated? How many OSD employees will be impacted?

20. Slide 20 9/15/2015 Olympia School District Reduction-in-Force Reconciliation Anticipated as of 4/18 Anticipated as of 5/3 1Enrollment and Grant-driven-20.0 2Budget Deficit-driven-37.4-20.5 3Total Reduction-in-Force-57.4-40.5 4 Open Positions25.727.0 5Remaining Reduction-31.7-13.5

21. Slide 21 9/15/2015 Olympia School District QUESTIONS