1. Davenport SD #207 M&O Planning Info 10-29-12

2. Topics Local Effort Assistance Historical Review Levy Swap Summary

3. Local Effort Assistance (LEA) Local Effort Assistance is state money paid to eligible district to match voter approved excess General Fund levies. These payments help school districts that have above average tax rates due to low property valuations.

4. One example: Davenport tax rate in 2012 = $4.24/1,000 Collects $975,000 Mercer Island tax rate in 2012 = $1.43/1,000 ▫Collects $11,548,943

6. LEA – continued 2011 = 4.23% of general fund revenues Not protected by constitution Davenport collected $413,898 last year Davenport is scheduled to receive $365,443 this year. Approx. -$50,000

7. Kingcounty.gov

8. Headlines 10/23/12 – “Seattle-area home values posted largest gain…” – Seattle PI 9/15/12 – “Real Estate Rebound” –Seattle Times 8/6/12 – “King County Home Prices up 7%...” – Seattle Times

12. LEA cont. LEA Questions to Consider: ▫Will the recent trend of decreasing LEA continue? ▫Will LEA funding be protected?

13. LEVY SWAP Summary Increase State School Tax by $1.17 Reduce Local Levy by $1.17 Fund collections through state apportionment Estimated $1 billion Allow districts to then collect more from local tax bases ($2,500? $3,000 per student?)

14. LEVY SWAP - cont. Davenport estimated impact: ▫With no change to taxpayers  -additional $36,972 if no LEA Additional proceeds coming from the Bellevue/Mercer Island/Seattle/other districts ▫These districts will have the ability to go back to voters for higher levies under levy swap to create an incentive for them to ‘swap’.

16. LEVY SWAP - cont. Discussion points: ▫Will it be harder to pass a levy? ▫Will it extend the funding gap? ▫Will this excuse funding of basic education? ▫If LEA is preserved in the model?

17. Overview of F-196 (Annual Financial Statement

19. From 2004-05 to 2011-12 Summary of the Davenport School District Financial Status Fund Balance and Davenport Enrollment Trend BudgetedCurrent 2004-052005-062006-072007-082008-092009-102010-112011-122012-13 Total Enrollment501.78550.08550.68563.67544.31559.77540.15536.39515.00520.16 % Change1.68%9.63%0.11%2.36%-3.43%2.84%-3.51%-0.70%-3.99%-3.03% SPED Enrollment43.255955.3856.3861.569.247266.11 66 60.5 % Change from prior year -13.29%36.42%-6.14%1.81%9.08%12.59%3.99%-8.18%-0.17%-8.33% SPED % of Enrollment 8.62%10.73%10.06%10.00%11.30%12.37%13.33%12.32%12.82%11.63% Beg. Bal.88,236.54102,568.55134,587.14230,228.51219,426.62167,193.00350,217.84440,830.61500,000.00534,797.35 Total Rev4,464,450.904,872,931.415,215,934.365,668,600.405,851,855.695,915,370.525,843,441.055,845,117.695,787,529.00 Total Exp(4431110.89)(4830442.82)(5110292.99)(5674402.29)(5904089.31)(5732345.65)(5752828.28)(5751150.95)(5886971.00) Ending Bal.102,568.55134,587.14230,228.51219,426.62167,193.00350,217.84440,830.61534,797.35400,558.00 435,355.35 End. Bal. % of Budget-2.31%-2.79%-4.51%-3.87%-2.83%-6.11%-7.66%-9.30%-6.80%-7.40% *Estimates

21. Possible Reductions in Revenue Federal Funding – “Sequestration” ▫9.1% cut = $ _$18,506_____  Title 1  Title 2  Special Ed  Other? (SRSAP, Sped Medicaid, Fed. Food Service)

22. Possible Reductions in Revenue Enrollment ??? ▫Our initial forecasts are that our enrollment for 2013-14 will be slightly higher than this year…

23. 2012-13 Enrollment SeptemberOctober2013-14 GradeBudgetActual Estimated K1818.5 12728 37 250444528 339424645 43538 46 5 4538 648474845 74852 48 8 46 52 94039.9338.9346 1040 4238.93 114648.5 42 123028.6925.7648.5 Total515518.62521.69532.93 Even though it is really early to start projecting enrollment for 2013-14, by comparing our incoming first grade class and our outgoing senior class, we can estimate that enrollment could rise by approximately 11 FTE. This assumes that our kindergarten class for next year is of a similar size to this years class.

24. Possible Increases in Revenue Funding for Full-Day, Every Day K ▫With the Supreme Court ruling, there may not be any cuts K-12 funding…

26. How Are New Resources Phased-in Under SHB 2776? School Year2010-112011-122012-132013-142014-152015-162016-172017-18 1 Full-Day Kindergarten Must be fully funded statewide by 2017-18 Phase-in based on FRPL 219 Schools More funding can begin More funding must begin Continues to ramp up Fully Funded 2 K-3 Class Size Reduction Must be fully funded statewide by 2017-18 Phase-in based on FRPL $0 More funding can begin More funding must begin Continues to ramp up Fully Funded 3 Maintenance, Supplies, Operation Costs (MSOC) Must be fully funded by 2015-16 $ per student basis More funding can begin More funding must begin Continues to ramp up Funded at new level 4 Basic Transportation Must be fully funded by 2014-15 % of formula funded basis More funding can begin More funding must begin Continues to ramp up Fully Funded

27. Current Funding For the 2012-13 school year, funding is available for 22% of the state’s Kindergarten students in 220 schools (Excel) (PDF). OSPI Memorandum No. 040-12 includes the 2012-13 requirements for state-funded Kindergarten.ExcelPDF Memorandum No. 040-12 Future Phase-in (Projected) To reach the 2017-18 statewide target, the Legislature must increase funding 16% a year. Based on this expectation, it is projected that 38% of the state’s student in the 2013-14 school year and 53% in the 2014-15 school year will be eligible for full-day Kindergarten. In addition to finalizing the schools eligible in 2012-13, OSPI created a projection of the schools that would be eligible in 2013-14 and 2014-15 (PDF of Eligibility of rollout to 38 and 53 percent). This data is based on today’s school poverty rate calculation and is subject to change.PDF of Eligibility of rollout to 38 and 53 percent The Legislature will need to increase funding for full-day Kindergarten in the 2013-15 biennium to reach these targets.

29. Good News! We have classroom space for two, all-day, every day kindergarten classes!

30. Options for Kindergarten Still planning on adding “every Wed.” beginning 2 nd Semester The State may begin funding all day, every day in 2013-14 or 2015-16 If not fully funded: ▫2013-14: Add all day, every day?  Estimated cost: Minimum $50,000 ▫2013-14: Add all day, 4 days a week  Estimated cost: Minimum $30,000 (if we utilize current teacher to teach one class Monday – Thursday and second class on Friday)

31. Levy Options – How many years Current Levy – 3 years Levy before current one – 4 years 1, 2, 3, or 4 years? 4 year Levy – pros and cons

32. Levy Options – Amount of Levy Keep tax rate “level” Keep $ amount of levy “level” Balancing the needs of the school district with the current economic environment…

33. Timelines Nov. 26 board mtg: continue discussions Dec. 19 board mtg.: final decision, resolution due to Auditor’s office by Dec. 28

34. Short Range & Long Range Staffing Plans… “What challenges will we be facing in the near future?”