1. SOUTH WHIDBEY SCHOOL DISTRICT No. 206 LEVY PLANNING 2011 2012 2013

2. SOUTH WHIDBEY SCHOOL DISTRICT No. 206 LEVY PLANNING Student Enrollment Decline Student Enrollment Decline

3. Enrollment History/Projections SOUTH WHIDBEY SCHOOL DISTRICT No. 206

4. Enrollment Percentage by Grade/Building SOUTH WHIDBEY SCHOOL DISTRICT No. 206

5. Projected Enrollment by Building 5 year weighted cohort model SOUTH WHIDBEY SCHOOL DISTRICT No. 206

6. LEVY PLANNING Student Enrollment Decline Student Enrollment Decline Washington’s Economy Washington’s Economy

7. The 2009-11 Budget Story Where we’ve been and where we are now Prepared by the Office of Financial Management Nov. 19, 2009

8. Overview Over past 18 months, Washington has seen largest drop in revenue in recent memory. Last session, we closed $9 billion shortfall through:  cuts to programs and services  use of Recovery Act funds  fund transfers, including Rainy Day Fund As revenue projections continue to decline, we will need to cut more to stay in balance. Reduction options are limited by constitutional and federal spending mandates. This will narrow our choices. 10/4/20158

9. $9 Billion Problem by March 2009 Before recession, $3 billion problem projected for 2009-11 due to health care inflation, K-12 growth, prison population growth, pension obligations. Problem grew with recession, resulting in $6 billion loss in revenue from Feb. 2008 - March 2009. 10/4/20159

10. Solving $9 Billion Gap: Actions to balance budget 10/4/201510

11. $3.3 Billion in Cuts and Efficiencies: Examples $600 million in K-12 through class size increases. $557 million in higher education by reducing 1,800 employees and raising tuition 14% (universities), 7% (community colleges) per year. $386 million through administrative or across-the-board cuts. $255 million from Basic Health Plan by increasing premiums 70% and reducing enrollment by 36,000 (36%). $127 million in payments to hospitals. $130 million from Corrections, including $73 million by reducing beds and community supervision. 10/4/201511

12. All Areas of Budget Cut Percent Reduction* 12 * Includes adjustments for additional tuition and Recovery Act money that offset reductions. Excludes compensation and special appropriations. ** Includes general government (including legislative and judicial agencies); natural resources; transportation; other education agencies. -11%

13. Other States in Same Predicament 48 states have addressed or still face shortfalls for FY2010. 49 states had total tax revenue fall during 2nd quarter; 36 report double-digit declines. 25+ states face new shortfalls after balancing budgets just months ago. 10/4/201513

14. Sources of $2.6 Billion Shortfall Revenues dropping $686 million June forecast $238 millionSeptember forecast $760 millionNovember forecast $154 millionTax lawsuit pending $1.84 billionSubtotal Costs rising, issues emerging $659 millionincreased demand for health care, schools, prisons $12 millionforest fires, landslides, dam failures, other possible emergencies $71 millionlawsuits blocking planned cuts $742 millionSubtotal 10/4/201514

15. What Should We Expect? Revenue uncertainty continues According to state Economic and Revenue Forecast Council: State revenues will lag economic recovery Job growth will lag economic recovery Unemployment will remain high Less revenue expected in 2009-11 than collected in 2007-09 10/4/201515

16. Higher Ed: Fed. Require. 8% Majority of $31 Billion Budget Is Protected: Tied to state constitutional or federal requirements 16 K-12 Basic Education 41% Debt Service/ Pensions 7% Mandatory Medicaid/Foster Care 14% Other Human Services 17% Higher Education 1% General Government/Other 5 % Other K-12 2% 70% of the Budget Is Protected Corrections 5% Not protected $9.3 billion Protected $21.6 billion

17. Possible Areas for More Cuts: Non-Protected Budget Mental health and developmental disabilities services: $1.6 billion Prisons/community supervision of offenders: $1.6 billion Care for low-income elderly: $1.3 billion Economic support for low-income families: $1.1 billion K-12 non-basic education funding (class size reduction, others): $635 million Higher education: $500 million (most is financial aid) Juvenile corrections: $198 million Protected Subject to reductions 10/4/201517

18. Examples Not Enough to Fill Gap: Non-Protected Budget Eliminating all state-funded environmental and natural resource protection, and all recreation and parks programs : $364 million. Eliminating all state support for cultural and art organizations, and all early learning programs: $164 million. Eliminating 23 of smallest general fund agencies: $52 million Protected Subject to reductions 10/4/201518

19. SOUTH WHIDBEY SCHOOL DISTRICT No. 206 LEVY PLANNING Student Enrollment Decline Student Enrollment Decline Washington’s Economy Washington’s Economy Retirement Rates Retirement Rates

20. TRS Rates Skyrocket Over Current Biennium Employer Contribution Rates Plan 2009-10 SY & 2010-11 SY 2011-12 SY* 2012-13 SY* 2013-14 SY* 2014-15 SY* PERS5.29%8.44%9.19%11.33%11.48% SERS5.43%8.87%9.62%11.18%11.33% TRS6.14%12.12%13.12%15.25%16.10% Change for TRS over 2010-11 5.98%6.98%9.11%9.96% Rates displayed above are the pension contribution only. Other mandatory benefit components are in addition to pensions (such as social security and Medicare), but are anticipated to be stable. *Projected rates based on Office of the State Actuary’s April 28,2009 projections. 20 OSPI; 6/26/09

21. SOUTH WHIDBEY SCHOOL DISTRICT No. 206 LEVY PLANNING Student Enrollment Decline Student Enrollment Decline Washington’s Economy Washington’s Economy Retirement Rates Retirement Rates SHB 2812 SHB 2812

22. SOUTH WHIDBEY SCHOOL DISTRICT No. 206

24. LEVY PLANNING Student Enrollment Decline Student Enrollment Decline Washington’s Economy Washington’s Economy Retirement Rates Retirement Rates SHB 2812 SHB 2812 Levy Authority Levy Authority Assessed Valuation Assessed Valuation

25. SOUTH WHIDBEY SCHOOL DISTRICT No. 206

29. LEVY PLANNING Cost to Taxpayer Cost to Taxpayer

30. SOUTH WHIDBEY SCHOOL DISTRICT No. 206