Davenport SD #207

M&O Planning Info 10-29-12

Topics • • • Local Effort Assistance Historical Review Levy Swap Summary

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.

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

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

Kingcounty.gov

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

Davenport SD Assessed Value Trend

$250 $200 $150 $100 $50 $ 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Local Effort Assistance Funding

$500 000,00 $450 000,00 $400 000,00 $350 000,00 $300 000,00 $250 000,00 $200 000,00 $150 000,00 $100 000,00 $50 000,00 $ 2005 2006 2007 2008 2009 2010 2011 2012 2013

LEA cont.

• LEA Questions to Consider: ▫ Will the recent trend of decreasing LEA continue?

▫ Will LEA funding be protected?

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?)

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’.

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?

Overview of F-196 (Annual Financial Statement

Summary of the Davenport School District Financial Status

From 2004-05 to 2011-12

Total Enrollment

% Change

SPED Enrollment % Change from prior year SPED % of Enrollment Beg. Bal.

Total Rev Total Exp

Ending Bal.

End. Bal. % of Budget *Estimates

2004-05 501.78

1.68%

2005-06 550.08

9.63%

Fund Balance and Davenport Enrollment Trend 2006-07 2007-08 2008-09 2009-10

550.68

0.11%

563.67

2.36%

544.31

-3.43%

559.77

2.84%

2010-11

540.15

-3.51%

2011-12

536.39

-0.70%

Budgeted 2012-13

515.00

-3.99%

Current 2012-13

520.16

-3.03% 43.25

-13.29% 8.62% 59 36.42% 10.73% 55.38

-6.14% 10.06% 56.38

1.81% 10.00% 61.5

9.08% 11.30% 69.24

12.59% 12.37% 72 3.99% 13.33% 66.11

-8.18% 12.32% 66 -0.17% 12.82% 60.5

-8.33% 11.63% 88,236.54

4,464,450.90

(4431110.89)

102,568.55

102,568.55

4,872,931.41

(4830442.82)

134,587.14

134,587.14

5,215,934.36

(5110292.99)

230,228.51

230,228.51

5,668,600.40

(5674402.29)

219,426.62

219,426.62

5,851,855.69

(5904089.31)

167,193.00

167,193.00

5,915,370.52

(5732345.65)

350,217.84

350,217.84

5,843,441.05

(5752828.28)

440,830.61

440,830.61

5,845,117.69

(5751150.95)

534,797.35

500,000.00

5,787,529.00

(5886971.00)

400,558.00

534,797.35

5,787,529.00

(5886971.00)

435,355.35

-2.31% -2.79% -4.51% -3.87% -2.83% -6.11% -7.66% -9.30% -6.80% -7.40%

State $3 954 557 69%

Davenport School District Estimated Revenues by Source 2012-13 Budget

Federal $363 124 6% School Levy $978 854 17% Local Effort Assistance (LEA) $361,894 6% Local Other $129 100 2%

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)

Possible Reductions in Revenue

•

Enrollment ???

▫Our initial forecasts are that our enrollment for 2013-14 will be slightly higher than this year…

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. Grade K 1 2 3 4 5 6 7 8 9 10 11 12

Total 2012-13 Enrollment

September Budget Actual 18 27 50 39 35 46 48 18.5

28 44 42 38 46 47 48 48 40 40 46 30

515

52 46 39.93

40 48.5

28.69

518.62

October Actual 18.5

28 45 46 38 45 48 52 46 38.93

42 48.5

25.76

521.69

2013-14 Estimated 18.5

37 28 45 46 38 45 48 52 46 38.93

42 48.5

532.93

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…

How Are New Resources Phased-in Under SHB 2776?

School Year

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

1 2

Full-Day Kindergarten

Must be fully funded statewide by 2017-18 Phase-in based on FRPL

K-3 Class Size Reduction

Must be fully funded statewide by 2017-18 Phase-in based on FRPL 219 Schools $0 More funding

can

begin More funding

can

begin More funding

must

begin Continues to ramp up Continues to ramp up Continues to ramp up Continues to ramp up Fully Funded More funding

must

begin Continues to ramp up Continues to ramp up Continues to ramp up 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 Continues to ramp up Funded at new level Funded at new level 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 Fully Funded Fully Funded Fully Funded

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.

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 ( is based on today’s school poverty rate calculation and is subject to change.

targets.

PDF of Eligibility of rollout to 38 and 53 percent ). This data

The Legislature will need to increase funding for full-day Kindergarten in the 2013-15 biennium to reach these

Good News!

•

We have classroom space for two, all-day, every day kindergarten classes!

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: Estimated cost: Minimum $50,000 ▫ 2013-14: Add all day, 4 days a week Minimum $30,000 second class on Friday) (if we utilize current teacher to teach one class Monday – Thursday and

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

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…

Timelines

•

Nov. 26 board mtg: continue discussions

•

Dec. 19 board mtg.: final decision, resolution due to Auditor’s office by Dec. 28

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