Transcript Office of Superintendent of Public Instruction Financial Resources and Governmental Relations K-20 on Special Session and Governor’s FY11 Supplemental and 2011-13 Budget Proposal January 6,

Office of Superintendent of Public Instruction
Financial Resources and Governmental Relations
K-20 on Special Session and
Governor’s FY11 Supplemental and
2011-13 Budget Proposal
January 6, 2011
Questions during the K-20??
• ESD sites are interactive and able to ask
questions.
• All other sites: email questions to
[email protected]
Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 2
11/6/2015
Agenda
• Capital Update
• Transportation Update
• Early Action and Governor’s Proposals
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Side-by-side comparisons
NBCT
K-4
Highly Capable
LEA
Ed Jobs/Apportionment backfill
Apportionment delay
New funding formula
John Jenft F-203
• Questions
Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 3
11/6/2015
Office of Superintendent of Public Instruction
Financial Resources and Governmental Relations
Capital Update
2011-13 K-12 Capital Budget
Governor’s Proposal
School Construction Assistance Program
– Maintenance Level of $486.6 Million
• Funding Assumptions
– SCAP appropriations are not fully funded. Governor estimated
1.3 million square feet less than OSPI’s original budget request.
(Project requests are on track with OSPI’s original budget
request).
• Construction Cost Allocation inflationary increases
to:
FY 2012 = $183.78
FY 2013 = $188.55
Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 5
11/6/2015
2011-13 K-12 Capital Budget
Governor’s Proposal
School Construction Assistance Program
• Relies on school district capital expenditures
stretching beyond the 2011-13 biennium.
» $274 M Bonds; available within the 2011-13 biennium.
» $212 M Cash; majority earned after the 2011-13 biennium.
• Implementation of the priority system would be
likely under the Governor’s proposal.
Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 6
11/6/2015
2011-13 K-12 Capital Budget
Governor’s Proposal
Other Funding proposals:
• Small Repair Grant Program – $10.0 M.
• Skills Centers Minor Works for Existing Facilities –
$3.0 M.
• Aviation High School - $2 M.
Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 7
11/6/2015
2011-13 K-12 Capital Budget
Superintendent’s Priorities
– Fully fund the School Construction Assistance Program
(SCAP) appropriations; Maintenance and Enhancement
Levels.
– Provide for basic student health and safety.
• Small Repair and Energy Grant Programs.
• New School Facility Safety Net.
• New School Seismic Needs Assessment.
– Expand career and technical education through skill centers.
• Minor Works and,
• Major project,s especially Phase 2 projects, at Pierce
County and Yakima Valley.
Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 8
11/6/2015
2011-13 K-12 Capital Budget
dollars in millions
Fund Source
OSPI
Request
Governor
Proposal
$660.1
$486.6
$93.0
$0.0
Space Study
$0.2
$0.0
Small Repair
$5.0
$10.0
Energy Grants
$20.0
$0.0
Facility Safety Net
$80.0
$0.0
Seismic Assessment
$0.5
$0.0
Skill Centers - Minors
$5.7
$3.0
Skill Centers – Majors &
Satellites
$80.4
$0.0
Aviation High School
$0.0
$2.0
Bonds
Administration
$3.9
$3.9
Common School Construction
Account
$948.8
$505.5
SCAP – Maintenance
SCAP – Enhancement
TOTAL
Bonds/Common School
Construction Account (Cash)
Bonds
Bonds
9
2011-13 K-12 Capital Budget
– OSPI requested SCAP obligations be fully
funded.
– OSPI’s request was heavily reliant on state
general obligation bonds, which depend on
state debt capacity.
• Do not expect General Fund-State Transfers to the
Common School Construction Account (CSCA).
– Lottery redirected to Higher Education in 2010.
– No agency savings projected for the 2009-11 biennium.
Financial Resources and Governmental Relations
Slide 10
Office of Superintendent of Public Instruction
11/6/2015
2011-13 K-12 Capital Budget
State Debt or Bonding Capacity
– Current capacity ranges:
• From low in November 2010 Bond Model = $161
million.
• To high in Governor’s Bond Bill = $900 million.
– $3.2 billion in bonds requested by all agencies.
Financial Resources and Governmental Relations
Slide 11
Office of Superintendent of Public Instruction
11/6/2015
2011-13 K-12 Capital Budget
State Bond Capacity
Debt Capacity Compared to Requests
(in Billions)
3.2
1.9
1.2
1.1
0.161
2009-11
September
forecast
Recent passage
of Inititive 1107
November
forecast
Requests so far!
Financial Resources and Governmental Relations
Slide 12
Office of Superintendent of Public Instruction
11/6/2015
Office of Superintendent of Public Instruction
Financial Resources and Governmental Relations
Transportation Update
Student Transportation:
Overview
• Governor’s Budget Proposal.
• What the numbers mean to you.
• How the money will be
distributed.
• System Changes.
Financial Resources and Governmental Relations
Slide 14
Office of Superintendent of Public Instruction
11/6/2015
Student Transportation:
Budget Proposal
• Funding System.
• The Good News
– Commitment to implement in 2011-12.
• The Other News
– Source of additional funding is a result of a
major restructuring of the bus replacement
system.
Financial Resources and Governmental Relations
Slide 15
Office of Superintendent of Public Instruction
11/6/2015
Student Transportation:
How Much?
• Figures are in the pivot table.
• Depreciation estimate for next year
– Current system.
– Governor’s proposal.
• Lots of assumptions
– Underfunding for current year.
– Bus prices.
Financial Resources and Governmental Relations
Slide 16
Office of Superintendent of Public Instruction
11/6/2015
Student Transportation:
2011-12 Operations Allocation
• Pay at 2010-11 amount until February.
• Adjustment for new calculation process.
• Adjustment for amount of funding
available.
• No recalculation after the Spring report.
Financial Resources and Governmental Relations
Slide 17
Office of Superintendent of Public Instruction
11/6/2015
New Transportation Funding
Model: Transition Process
• Hold harmless
– No one gets less than 2010-11.
• Additional Funding
– Estimate based on the amount of funding
available from the change in depreciation.
– Best guess is districts would receive about 1/3
of their underfunding in 2009-10.
Financial Resources and Governmental Relations
Slide 18
Office of Superintendent of Public Instruction
11/6/2015
New Transportation Funding
Model: OSPI Rules Status
• Initial rules hearing was December 8th.
• OSPI in process of reviewing language
– Reword several sections in response to
comments and concerns.
– Will schedule another hearing on revisions.
Financial Resources and Governmental Relations
Slide 19
Office of Superintendent of Public Instruction
11/6/2015
Student Transportation:
System Changes
• Bus Replacement System
– May result in unintended consequences.
• Maintenance Costs.
• Fleet Modernization.
• Regional Coordinator Program Eliminated
– Would eliminate training and support for the
new funding system.
– School bus driver training, Management
training, WSP inspection process, etc.
Financial Resources and Governmental Relations
Slide 20
Office of Superintendent of Public Instruction
11/6/2015
Office of Superintendent of Public Instruction
Financial Resources and Governmental Relations
Early Action and Governor’s
Proposals - Update
2011 FY SUPPLEMENTAL
BUDGET – ENACTED &
GOVERNOR’S PROPOSED
2011 FY Supplemental Budget:
Eliminated Programs
Proviso
Original
Funding
Enacted
Supp. Cut
Balance
Governor’s
Proposed
Project Citizen
25
-13
12
-
Support for CTE Student Org.
97
-49
48
-
1,329
-665
664
-
337
-112
225
-
Dyslexia Pilot Program
75
-38
37
-
Teaching as a Profession Pilot
75
-75
-
-
2,000
-1,000
1,000
-
530
-265
265
-
Special Service Pilot
Building Bridges
BEST Program
Superintendent/Principal
Internship
Financial Resources and Governmental Relations
Slide 23
Office of Superintendent of Public Instruction
11/6/2015
2011 FY Supplemental Budget:
Eliminated Programs
Proviso
Leadership Academy
Original
Funding
Enacted
Governor’s
Balance
Supp. Cut
Proposed
900
-450
450
-
Focused Assistance
1,523
-762
761
-
STEM Lighthouses
300
-75
225
-
CTE Startup Grants
612
-456
156
-
Reading Corps
1,056
-528
528
-
Summer Voc. Skill Center
2,385
-
2,385
-1,785
Readiness to Learn
3,594
-
3,594
-1,797
K-4 Class Size Reduction
81,512
-39,424
42,088
-42,088
Highly Capable Program
8,903
-
8,903
-7,104
170
-
170
-11
90
-
90
-6
Centrum
WA Imagination Network
Financial Resources and Governmental Relations
Slide 24
Office of Superintendent of Public Instruction
11/6/2015
2011 FY Supplemental Budget:
Reduced Programs
Proviso
College Bound Outreach
Original Enacted
Balance
Funding Supp. Cut
Governor’s
Proposed
1,000
-500
500
-300
Civil Rights Monitoring
133
-44
89
-
Achievement Gap Com.
100
-6
94
-
Non-Violence Training
50
-3
47
-
2,541
-160
2,381
-
96
-6
90
-
100
-6
94
-
K-20 Network
1,745
-110
1,635
-
Navigation 101
3,120
-196
2,924
-
LASER/Pacific Science Cen.
395
-198
-197
Education Technology Supp.
1,959
-123
1,836
School Nurse Corps
Safety Center
School Safety Training
Financial Resources and Governmental Relations
Slide 25
Office of Superintendent of Public Instruction
11/6/2015
2011 FY Supplemental Budget:
Reduced and Added Funding
Proviso
Levy Equalization
Original Enacted
Balance
Funding Supp. Cut
Governor’s
Proposed
286,051
-
286,051
-18,038
Extended Day Skill Center
485
-
485
-30
Transportation Coordinators
892
-
892
-56
June Payment Delay
-253,000
June Contingency Fund
13,000
June Contingency Fund
15,000
Financial Resources and Governmental Relations
Slide 26
Office of Superintendent of Public Instruction
11/6/2015
Governor’s Supplemental Cut of
National Board Bonuses
• Governor’s across the board cut of 6% is still in
effect.
• Districts should continue to claim their bonuses.
• OSPI will allocate funding on a first come first
serve basis .
• When Governor repeals the 6% cut, OSPI will
pay out the rest of the bonuses to districts who
have submitted claims up to the total
appropriation authority.
Financial Resources and Governmental Relations
Slide 27
Office of Superintendent of Public Instruction
11/6/2015
K-4 Class Size & Highly Capable
Retroactive Elimination
• Governor Proposals cuts programs starting in
September.
• If adopted by Legislature, OSPI will adjust
district apportionment payments to reflect cuts.
• OSPI will transfer Highly Capable program to
General Apportionment in order to then make
adjustments to district apportionment.
Financial Resources and Governmental Relations
Slide 28
Office of Superintendent of Public Instruction
11/6/2015
GOVERNOR’S PROPOSED
2011-13 BUDGET
2011-13 Proposed Governor’s
Budget: Eliminated Programs
2011-12 FY
Maint.
2012-13
FY Maint.
Governor’s Total
Biennial Cut
Project Citizen
25
25
-50
Support for CTE Student Org.
97
97
-194
1,329
1,329
-2,658
337
337
-674
Dyslexia Pilot Program
75
75
-150
Teaching as a Profession Pilot
75
75
-150
2,000
2,000
-4,000
530
530
-1,060
Proviso
Special Service Pilot
Building Bridges
BEST Program
Superintendent/Principal
Internship
Financial Resources and Governmental Relations
Slide 30
Office of Superintendent of Public Instruction
11/6/2015
2011-13 Proposed Governor’s
Budget: Eliminated Programs
Proviso
2011-12 FY 2012-13
Maint.
FY Maint.
Governor’s Total
Biennial Cut
Middle & High Applied Math
139
139
-278
Leadership Academy
900
900
-1,800
Focused Assistance
1,523
1,523
-3,046
STEM Lighthouses
150
150
-300
CTE Startup Grants
912
912
-1,824
Reading Corps
1,056
1,056
-2,112
Readiness to Learn
3,594
3,594
-7,188
Highly Capable Program
7,343
9,469
-16,812
170
170
-340
90
90
-180
Centrum
WA Imagination Network
Financial Resources and Governmental Relations
Slide 31
Office of Superintendent of Public Instruction
11/6/2015
2011-13 Proposed Governor’s
Budget: Eliminated Programs
Proviso
2011-12
Maint.
2012-13
Maint.
Governor’s Total
Biennial Cut
Civil Rights Monitoring
133
133
-266
Achievement Gap Com.
118
118
-236
Non-Violence Training
50
50
-100
LASER/Pacific Science Cen.
198
197
-395
Education Technology Supp.
979
979
-1,958
Pre-Apprenticeship Grants
175
175
-350
Summer Voc Skill Center
2,385
2,385
-4,770
Readiness to Learn
3,594
3,594
-7188
892
892
-1,784
55,000
53,000
-95,622
Transportation Coordinators
Bus Depreciation
Financial Resources and Governmental Relations
Slide 32
Office of Superintendent of Public Instruction
11/6/2015
2011-13 Proposed Governor’s
Budget: Suspended Funding
Proviso
Dev. Diagnostic Assessments
I-732 COLA
I-728
National Board Bonuses
Challenging School Bonus
2011-12
2012-13
FY Maint. FY Maint.
Governor’s Total
Biennial Cut
2,200
2,200
-4,400
60,022
193,264
-253,286
378,628
481,596
-860,224
34,454
44,236
-78,690
9,372
11,454
-20,826
Financial Resources and Governmental Relations
Slide 33
Office of Superintendent of Public Instruction
11/6/2015
2011-13 Proposed Governor’s
Budget: Reduced Programs
2011-12
FY Maint.
2012-13
FY Maint.
48,210
50,858
-10,568
(Case Load Adj.)
*
*
-70,484
*
College Bound Outreach
1,000
1,000
-200
1,800
K-20 Network
1,745
1,745
-349
3,141
Navigation 101
3,120
3,120
-392
5,848
750
750
-150
1,350
1,800
1,800
-422
3,178
COE Payment
*
*
-7,383
*
Restructure COE
*
*
-7,138
*
Proviso
Full Day Kindergarten
Freeze Steps on 2011
Salary Schedule
Mentoring of WA
Achievers
Math and Science PD
Governor’s Total
Biennial Cut
2011-13 Total w/ Gov.
Reduction
* Working on Calculation
Financial Resources and Governmental Relations
Slide 34
Office of Superintendent of Public Instruction
11/6/2015
2011-13 Proposed Governor’s
Budget: Adds
Proviso
2011-12 FY
Implementation of New Transportation
Funding Model
Principal and Teacher Evaluation
2012-13 FY
Total
40,000
50,000
90,000
1,500
1,500
3,000
-
15,000
15,000
Incentive for Evaluation System
Financial Resources and Governmental Relations
Slide 35
Office of Superintendent of Public Instruction
11/6/2015
Levy Equalization 2010-2011
School Year
• The Governor’s supplemental request
continues to current levy equalization
model but makes a reduction of 6.3% or
$18 million.
• The impacts to local districts are shown on
the SAFS 2011 Supplemental Budget
website under the “across the board
6.287%” link. Across the Board Cuts by School District
Financial Resources and Governmental Relations
Slide 36
Office of Superintendent of Public Instruction
11/6/2015
Levy Equalization 2011-2013
• The Governor’s 2011-13 biennial request
equates to a reduction of 6.3%.
• New “Four Tier” Model with property poor
districts receiving the smallest reduction
in LEA.
– Over 300% above state average = 1% cut.
– 175% to 300% = 3% cut.
– 125% to 175% = 5% cut.
– 100% to 125% = 28.75% cut.
Financial Resources and Governmental Relations
Slide 37
Office of Superintendent of Public Instruction
11/6/2015
Financial Resources and Governmental Relations
Slide 38
Office of Superintendent of Public Instruction
11/6/2015
Levy Equalization 2011-13
• No specific changes in levy base
calculations were proposed.
– Reductions in K-3 this year will not reduce the
levy base.
• Levy Equalization continues to be
calculated based on 14%.
• The Per Pupil Inflator in the Governor’s
budget is 3%.
• Financial Resources and Governmental Relations
Office of Superintendent of Public Instruction
Slide 39
11/6/2015
Ed Jobs
• Ed Jobs Funding
– $208K Total. Allocation by district is on our
website.
– The Legislative Special Session directed that
these funds will be deducted from General
Apportionment.
Financial Resources and Governmental Relations
Slide 40
Office of Superintendent of Public Instruction
11/6/2015
Ed Jobs
– Deductions will be made over five months January through May. 20% will be deducted
each month.
– Amount will be reflected on your 1191 Report
on Line C.9 – “Adjustment for Prior Year.”
– Levy Base – Uses the total Guaranteed
Entitlement from Line A.14. Levy base would
not double count Ed Jobs funds discreetly
since it is included in Line A.14.
Financial Resources and Governmental Relations
Slide 41
Office of Superintendent of Public Instruction
11/6/2015
Apportionment Delay
• Governor’s Supplement proposes that
$253,000,000 of the June Apportionment
payment will be delayed until July 1st.
• $13 million set-aside for financial
assistance to “cash poor districts” to be
administered by OSPI.
Financial Resources and Governmental Relations
Slide 42
Office of Superintendent of Public Instruction
11/6/2015
Financial Assistance Loans
• Two discreet amounts in the Governor’s
Supplemental Budget:
– $15 million for district-needed assistance due
to budget cuts.
– $13 million for district due to Apportionment
payment delay.
Financial Resources and Governmental Relations
Slide 43
Office of Superintendent of Public Instruction
11/6/2015
Financial Assistance Loans
• Monies provided are an advance on
Apportionment to be repaid by June 2012.
• Process of application is expected to be
similar to the apportionment advance
process detailed in the ABFR handbook.
• Actual application process has not yet
been developed.
Financial Resources and Governmental Relations
Slide 44
Office of Superintendent of Public Instruction
11/6/2015
Financial Assistance Loans
• Applications for June loans will require a
number of assurances including one from
the county treasurer that the county is
unable to provide a loan or other
assistance to the school district to
accommodate the proposed one-day delay
in June apportionment payment.
• June applications are tentatively required
to be filed with this office by mid-April.
Financial Resources and Governmental Relations
Slide 45
Office of Superintendent of Public Instruction
11/6/2015
Financial Assistance Loans
• OSPI will develop the application process
and provide more information in
February.
Financial Resources and Governmental Relations
Slide 46
Office of Superintendent of Public Instruction
11/6/2015
Prototypical Funding Formula
• OSPI has provided on-site training on the
new SHB 2776 formula at all ESD
locations.
• All biennial budgets are expected to adopt
the new prototypical funding formulae.
The governor’s budget has adopted this.
Financial Resources and Governmental Relations
Slide 47
Office of Superintendent of Public Instruction
11/6/2015
Prototypical Funding Formula
• The following materials are available on
our website under the SHB2776 link.
– Excel Beta models showing calculations and
comparison at the district and school level.
– OSPI’s PowerPoints used during training.
Financial Resources and Governmental Relations
Slide 48
Office of Superintendent of Public Instruction
11/6/2015
Prototypical Funding Formula
• The values used in transitioning to the new
prototypical funding formula were
intended to be cost neutral.
• Some breakage occurred; positive and
negative.
• The Governor’s proposed biennial budget
provides funding for districts losing
dollars.
Financial Resources and Governmental Relations
Slide 49
Office of Superintendent of Public Instruction
11/6/2015
The “John Jenft” Sheet
• The change to the new prototypical funding
formula provides many-many more variables.
• The revised John Jenft sheet is on our website
and now encompasses 4 pages.
• The first page covers the “typical” areas, the
remaining three cover the full range of known
variables that legislation could address.
Financial Resources and Governmental Relations
Slide 50
Office of Superintendent of Public Instruction
11/6/2015
F-203
• The system has been completely rewritten
to address the prototypical model.
• The F-203 will be released as an “X”
option next week.
• We will be providing K-20 training for
each ESD region. See our website for the
current schedule.
Financial Resources and Governmental Relations
Slide 51
Office of Superintendent of Public Instruction
11/6/2015
Pivot Table Release
• Thank you for your patience! It was appreciated.
• The table reflects the new prototypical model
calculations.
• The table does not project a “maintenance” level
but rather a 2011-12 base level that reflects the
special session changes and other legal changes
that will affect 2011-12.
• The Pivot Table is now available on our website.
Financial Resources and Governmental Relations
Slide 52
Office of Superintendent of Public Instruction
11/6/2015
Office of Superintendent of Public Instruction
Financial Resources and Governmental Relations
QUESTIONS?