2009-10 Budget Reductions Q&A |
|
|
|
|
Why does the district need to reduce its budget?
Declining Enrollment – State funding is based on the number of full time equivalent (FTE) students enrolled in schools. Lake Stevens is projecting a declining enrollment of 181 students for the next school year. For the last few years enrollment has stayed flat or declined slightly over the course of the academic year. State funding reductions – With the national recession, the State of Washington has seen its revenues decrease significantly. Recent estimates predict that the state’s revenue could fall about $9 billion short of expenditures for the next biennium. Like most school districts in the state, Lake Stevens receives about 70 percent of its operating revenue from the state. With the state’s budget shortfall, it is likely that spending on public education will be dramatically reduced. The Governor’s budget targeted cuts to K-12 public schools in the areas of I-732 (cost of living funding), I-728 (class size and program support), Levy Equalization Funding, and other grants and programs outside of the Basic Education Funding Formula. Districts across the state are currently planning for reductions in staffing, services, and materials. Rising costs of materials and contracts – Costs of goods and materials increase annually, as do the district’s employee contracts. Employee contracts are generally committed to for a three year period of time and costs related to those contracts generally increase every year. This year the district’s contract with the Lake Stevens Education Association will expire on August 31, 2009 and the negotiation process is scheduled to begin later this spring.
What are the district’s goals and priorities while reducing its budget?
Why can’t the district use the money they have sitting in the fund balance to cover revenue deficits and keep the current staffing and levels of service?
How is the district planning to reduce its budget?
Will the district’s projected budget shortfall result in employee layoffs? As a result of declining enrollment and the Governor’s previously announced budget reductions, staffing district wide will be reduced by 19 teaching positions. The district does not yet have sufficient budget information from the legislative process to know if further reductions in staff will be necessary. Based on the Governor’s budget (December budget based on a $5.2 billion dollars deficit) the district would receive cuts amounting to $2.1 million dollars and districts across the state are planning for significantly deeper cuts in K-12 public school funding. Like school districts throughout the state Lake Stevens is planning for deeper staff cuts. Eighty-three percent of the district’s general fund budget is dedicated to personnel costs. Depending on the size of the deficit, positions could be reduced through attrition (e.g., retirements), which could lessen the need for layoffs. Regardless of whether positions are eliminated through layoffs or attrition, any loss of positions would result in fewer services being provided to students, families and the greater community.
What is the District’s General Fund? The budgeted General Fund expenditures for 2008-09 are just over $70.7 million dollars. This fund pays for the financing of the current, ordinary, day-to-day operations of the district, including programs of teaching, instruction, and support for students, food service, maintenance, data processing, printing and pupil transportation. The budget includes staffing of 456 full time certificated staff and the equivalent of 277 full-time classified staff members. Just over 83% of general fund expenditures are for payment of salaries and benefits for employees of the district. The balance is spent on non-employee related costs such as supplies and materials, utilities, technology, equipment, contracts and purchased services.
What is I-728? Initiative 728 appeared on the Nov. 2, 2000, ballot in Washington state; voters approved the measure by nearly 72 percent. The initiative provides additional money to help students reach new state learning standards. It also dedicates certain state revenues to a "Student Achievement Fund," increasing revenue to the fund over time. Under I-728, school districts are authorized to use funds to reduce class size; provide extended learning opportunities; provide additional professional development for educators; provide early assistance for children who need pre-kindergarten support; and provide building improvements relating to class-size reductions. Source: OSPI website - http://www.k12.wa.us/I728/ Note: For the 2008-09 School year I-728 provided just over three million dollars of support for Lake Schools.
What is Levy Equalization? To provide equity with property rich areas, the state gives levy equalization funds to school districts located in areas where the property values are lower. School districts with lower assessments are unable to generate as many voter-approved levy dollars as those with higher assessments because residents in property poor areas would have to pay a much higher tax rate. Lake Stevens Public Schools has received levy equalization funds for many years. In the governor’s proposed budget for the 2009-11 biennium, the district would lose levy equalization.
How are Levy Dollars Used? Levy dollars support the day-to-day operation of the district and are included in the total General Fund figure. Levy funding supports additional funding for teaching salaries, paraeducators, curriculum and staff training, special education, pupil transportation, grounds and maintenance of facilities, technology, highly capable education and community use of facilities.
|