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SUPERINTENDENT’S BUDGET COMMITTEE

FEBRUARY 23, 2023

Mike True

Mindy Stadtlander

Co-Chairs

Dr. John Anzalone

Superintendent

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AGENDA

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Welcome

Introductions

Budget Cycle/Committee Schedule

2023-24 Budget Outlook

District Superintendent Update

Projected Budget Cuts 2023-24

Four Year Budget Outlook

Breakout groups and debrief

Closing

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BUDGET CYCLE & COMMITTEE SCHEDULE

Jasen McEathron

Director of Business Services

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THE BUDGET CYCLE 2023-24

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MONTH	KEY DATES & ACTIVITIES	BUDGET COMMITTEE
August	2022-23 Budget Adoption	Budget Adopted 8/22
October	Welcome – Supt’s Guidance Fiscal Year Closeout October Enrollment Count Preliminary Projections	#1 10/21
November	Email update (revenue/expense trends, district updates)	Email update
December	Reconnecting with each other and the budget	Email update
January	Legislative platforms Looking back to look ahead Preliminary forecast	#2 1/19
February	Legislative update 2023-24 Budget Cuts Four Year Model Establishing budget parameters	#3 2/23
March	2023-24 Budget Cuts Legislative update Budget parameters	#4 3/16
April	Staffing; Leg update Committee budget considerations	#5 4/20
May	Superintendent Recommendation; Contract notification dates; Leg update/impact	Email update
June	Post 2023-24 Preliminary Budget Adjust for Legislative impacts	Email update
July	Draft 2023-24 budget	Email update

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Budget

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COMMITTEE NORMS

Develop clearly defined objectives for the committee.

Be prepared to work towards objectives.

Ask questions and be respectful of others’ questions and ideas.

Seek to understand and ask clarifying questions.

Seek agreement on facts and then work towards values.

Maintain a confidential and safe environment.

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2023-24 BUDGET OUTLOOK

Jasen McEathron

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2023-24 BUDGET

2023-24 Budget cycle presents unique challenges of correcting the misalignment of expenditures and available resources. We must adjust our expenditures down to allow our slowed revenue growth to catch up. We intend to accomplish this by a 5% reduction in 2023-24. This represents phase two of a plan put in place last year by the School Board to utilize $8M (45%) of our fund balance over three years, exercise cost containment measures in future years, and perform budget reductions in 2023-24.

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ENROLLMENT

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Actual 22-23 on target!

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STAFFING VS. ENROLLMENT

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EXPENDITURES PER STUDENT

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Benefit costs (SEBB) have driven Other Support Activities to the highest increase

Classroom Teachers & Para’s

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FUND BALANCE

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McCleary in 18-19 & COVID impacts from 20-21 thru 21-22 increased year-end cash

We started drawing down our fund balance in 21-22 using $422,000

We are using $8M of fund balance starting this year

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$10.9M COVID FUNDS

https://sites.google.com/camas.wednet.edu/budget-finance/home/covid-relief-funds

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WHY HAVE EXPENDITURES OUTPACED REVENUES?

Enrollment loss due to COVID and declining birthrates has reduced revenues
Staffing FTE exceeding pre-COVID levels
Salary & Benefit escalation

We do not have enough revenues to pay for the current staffing model

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WE HAVE A PLAN

Fund Balance

Use $8M of our $18M fund balance over the next three

Use fund balance to minimize impacts to student programs

Cost Containment

Inflation will push these cost containment thresholds higher than anticipated, however the objective remains the same:

Do not let expenditures continue to outpace revenues

Budget Cuts

Make the necessary expenditure reductions in 2023-24

No cuts in 2024-25 and balance the budget by 2025-26

We are committed to this plan that achieves sustainability as a district

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PRELIMINARY OUTLOOK

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The deficits represent our planned use of $8M in fund balance.

The model assumes future cost containment measures are implemented.

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SUPERINTENDENT’S UPDATE

Dr. John Anzalone

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BUDGET CUT OBJECTIVES

Resetting our operational model to align with our decreased enrollment and increased costs
Overall 5% cut to address the operational deficit and fill the gap of expiring funding
Reduce salary & benefit costs that account for 90% of total expenditures
Retain programs that directly serve students
Retain mission critical services to ensure safe instructional spaces & programs
Focus reduction efforts in areas that historically have seen the largest increases and/or are outliers when compared to our peers

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BUDGET CUT CONSIDERATIONS

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Dollar figures are estimates

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COMMITTEE PRINCIPLES

Committee input into budget cuts:

What do you value most about our District?

What information do you need to advise our District on principles for decision making?

How would you advise District leadership communicate to the community?

Budget Committee Considerations from 2018:

https://docs.google.com/document/d/1B1oDMJgFMzf3v4ejwUuAUMMmqj0Nt0ZC_hlamC8276g/edit

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FOUR YEAR MODEL

Jasen McEathron

Director of Business Services

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PRELIMINARY MODEL

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BREAKOUT GROUPS

We will take 30 minutes to breakout into two groups.
Matt and I will capture feedback on budget cuts and lead the groups through the model, if they so choose
Debriefing to follow

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CLOSING

March 16^th is next in-person meeting

Thank you for your time this evening
Be safe!

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