1. 2014-15 Budget Hearing August 5,2014

2. This document summarizes South Kitsap School District’s budget for the 2014-15 schools year (September 1, 2014 through August 31,2015). A public hearing on the budget is being held this evening, Tuesday, August 5,2014 at the District Administrative Office. In compliance with WAC 392-123-054, it is necessary for the Board to conduct a public hearing on the 2014-2015 budget. The budget will be adopted by the South Kitsap School Board on August 18, 2014. The budget is prepared in compliance with state laws and the instructions of the state office of Superintendent of Public instruction. The budget is organized in separate funds, each with its own purpose, sources of revenue and fund balance. These funds are: General Fund - for regular operating costs of the districts Debt Service Fund – for repayment of long-term debt Capital Projects Fund -for building construction and remodeling Transportation Vehicle Fund -for purchase of school buses Associated Student Body Fund -for student activities School district expenditures for each fund cannot exceed the amount approved in the budget unless amended by the school board after public notice and hearing.

3.  Budget Process – Budget Model ◦ Cabinet and Superintendent Identify budget priorities aligned with board goals and vision ◦ Budget Office Identify Budget Capacity by analyzing changes in Revenues and Expenditures. ◦ Departments and Schools Identify and analyze program needs to develop budget requests ◦ Human Resources Identify and hire staff ◦ Cabinet and Superintendent Match Priorities to budget capacity

4. 2014-2015 Budget General Debt Capital Transp. Fund ASB Service Projects Vehicle Beginning Fund Balance $ 8,100,000 $ 645,335 $ 2,465 $ 928,333 $ 618,565 Revenues 97,585,396 1,521,530 20 247,510 474,000 Transfer In - 401,838 1,489,194 Expenditures (Appropriation) 95,598,426 1,654,298 401,839 1,556,194 621,565 Transfer Out 1,618,653 272,379 Revenues Over (Under) Exp. 368,317 (132,768) 19 ( 91,869) (147,565) Ending Fund Balance $ 8,468,317 $ 512,567 $ 2,484$ 836,464 $ 471,000 Ending Fund Balance Detail Nonspendable 730,000 Restricted 250,000 512,567 2,484 821,770 471,000 Committed 4,632,000 2,217 Assigned 2,230,000 12,477 Unassigned 626,317 Total Fund Balance$ 8,468,317 $ 512,567 $ 2,484 $ 836,464 $ 471,000

5. 2013-14 2014-15 $ Change% Change Revenues/Other Financial Sources Local Taxes $ 20,173,961 $ 21,552,104 $ 1,378,143 6.8% Local Support Nontax 2,368,950 2,353,879 $ (15,071)-0.6% State General Purpose 51,537,922 51,936,478 $ 398,556 0.8% State Special Purpose 12,998,597 13,307,046 $ 308,449 2.4% Federal 8,524,461 8,435,889 $ (88,572)-1.0% Total Revenues $ 95,603,891 $ 97,585,396 $ 1,981,5052.1%

6. 2013-142014-15Difference% Change Expenditures Certificated Salaries 39,814,747 40,846,974 1,032,2272.59% Classified Salaries 15,295,268 15,176,608 (118,660)-0.78% Employee Benefits 20,403,239 20,675,337 272,0981.33% Supplies and Materials 10,546,102 9,560,341 (985,761)-9.35% Purchased Services 8,780,915 9,039,166 258,2512.94% Travel 242,287 200,000 (42,287)-17.45% Capital Outlay 5,047 100,000 94,9531881.38% Total Expenditures 95,087,605 95,598,426 510,8210.54% Transfer to Capital Projects 1,350,831 1,400,000 49,1693.64% Transfer to Debt Service 271,013 218,653 (52,360)-19.32% Total Expenditures and Transfers 96,709,449 97,217,079 507,6300.52%

7. 09-10 10-11 11-12 12-13 13-14* 14-15* $8,621,546$7,756,636$5,715,975$4,861,586$8,000,000$8,468,317 * Projected 2013-14 and Budgeted 2014-15

8. 2012-132013-142014-15 Major FundsOriginal Budget Draft Budget General Fund Revenues $ 90,263,271 $ 95,603,891 $ 97,585,396 General Fund Appropriations93,280,81195,087,60595,598,426 Other Financing Uses159,562 1,350,831 1,618,653 General Fund Budget Excess of Revenues(3,177,102) (834,545) 368,317 Associated Student Body Fund Revenues1,781,4051,315,0001,521,530 Associated Student Body Fund Expenditures1,815,8091,490,0001,654,298 Other Financing Uses0 0 0 Associated Student Body Fund Excess Revenues(34,404)(175,000)(132,768) Debt Service Fund Revenues417,654400,491401,858 Debt Service Fund Expenditures418,634400,471401,839 Other Financing Uses0 0 0 Debt Service Fund Excess of Expenditures(980)2019 Capital Projects Fund Revenues495,4111,429,8731,736,704 Capital Projects Fund Expenditures520,5511,283,5301,556,194 Other Financing Uses288,675 271,013 272,379 Capital Projects Fund Budget Summary(313,815)(124,670)(91,869) Tranportation Vehicle Fund Revenues524,346463,500474,000 Tranportation Vehicle Fund Expenditures748,862779,537621,565 Other Financing Uses0 0 0 Transportation Vehicle Fund Budget Summary(224,516)(316,037)(147,565) Grand Total Budgeted Revenues All Funds93,482,08799,212,755101,719,488 Grand Total Budgeted Expenditures All Funds96,784,66799,041,14399,832,322 Grand Total Other Financing Uses448,237 1,621,844 1,891,032 Grand Total Financing Sources and Uses $ (3,750,817) $ (1,450,232) $(3,866)

9. $ Millions  2014-15 Beginning Fund Balance $ 8.10  2014-15 Budgeted Revenues 97.59  2014-15 Budgeted Expenditures 97.22  2014-15 Ending Fund Balance $ 8.47 Executive Limitation EL-7 Budget Planning requires a 3.6% committed general fund balance in the amount of $3.3 million for the 2014-15 Budget. The current 2014-15 budget draft holds a 5% committed general fund balance in the amount of $4.6 million.

10. Thank you