Budget

  • Providing high-quality education to more than 9,600 students is our priority and something we take seriously as responsible stewards of public funds, efficiently and effectively allocating District resources wisely.

    To help provide a better understanding of Sumner-Bonney Lake School District's budget and what is required to educate our student population, we've put together a high-level overview of Washington state school funding and financial information specific to our District in a clear and concise manner. We hope this information explains, in simple terms, the complexities of the District’s budget process and gives you an idea of where our money comes from, what it pays for and how we use it. 

    Key points about the 2018-19 budget:

    • When the state legislature responded to the McCleary court decision, it passed legislation to create an entirely new K-12 finance and compensation system. In recognition of historic underfunding of K-12 public education, the court required the state to increase its support to school districts statewide. Under the new funding system, the increased funding from the state was accompanied by a reduction in the amount of funds school districts can collect through local levies.
    • The adopted budget includes planned underspending in the amount of $1.7 million to be added to fund balance and used to offset decreased local levy revenues under the new funding system in the 2019-20 fiscal year.
    • The new state funding system is complex and inequitable as applied to districts throughout the state. We hope that our state legislators will review the plan and continue to work on creating a funding system that fairly benefits all school districts.

    UPDATE 10/2/18: Subsequent to the original budget adoption, agreements with employee groups were reached. The costs of the agreements exceeded the level of salary improvements assumed in the budget. In addition, the estimated ending fund balance for the 2017-18 fiscal year is lower than assumed in the budget. Due to the magnitude of these changes significant budget revisions will be necessary. The process for determining the specific revisions are currently underway.

    Budget development calendar: 2018-19 School Year

    • 2/14/18: Board Study Session, Enrollment & Boundary Revision Impacts & 4-Year Enrollment Projections
    • 3/21/18: Board Meeting, Budget Report - Staffing & Legislative Update*
    • 4/18/18: Board Meeting, Revenue and Final Enrollment Numbers*
    • 5/9/18: Board Meeting, Budget-Staffing-Facility Update*
    • 6/4/18 & 6/13/18: Advertise Hearing two consecutive weeks
    • 6/20/18: Board Meeting, Present Final Budget for Public Hearing*
    • 7/2/18 & 7/11/18: Advertise Adoption two consecutive weeks
    • 7/18/18: Board Meeting, Adopt Final Budget*

    * Opportunities for public participation 


    School Board adopts 2018-19 budget

    At the July 18, 2018, school board meeting, the Board of Directors approved Resolution No. 34/17-18 Adoption of 2018-19 Budget. View the budget presentation.


    Official budget document: F-195

    The F-195 is the official school district budget document required by the state. Beginning with the 2018-19 fiscal year, school districts must also prepare a F-195F which is a four-year budget outlook that includes a four-year enrollment projection. Both documents are adopted by a resolution of the Board of Directors. For first class school districts, like the SBLSD, the adoption must be no later than August 31 of each year. The fiscal year for school districts starts September 1 and goes through August 31. The budget establishes maximum expenditure amounts for each fund and provides a means of measuring and guiding performance. View Sumner-Bonney Lake School District's 2018-19 F-195 document.


    Monthly Budget Status Reports 

    2017-18 Fiscal Year (September-August)

    September
    October
    November
    December
    January
    February
    March 
    April
    May
    June
    July
    August


     


     

    The Sumner-Bonney Lake School District budget comprises five operating funds:

    The 2018-19 Sumner-Bonney Lake School District budget comprises five operating funds:

    1. General Fund:
      The general fund budget of $136.5 million covers the school district’s annual operating costs. It provides support to approximately 9,900 students, which are served by 667 certificated and 448 classified full time equivalent staff.
    2. Capital Projects Fund:
      The capital projects fund budget of $112.2 million is used for the construction of new schools, remodeling of existing schools, bond or levy funded technology upgrades, land purchases and small health and safety projects.
    3. Debt Service Fund: 
      The debt service budget of $18.5 million pays for the principal and interest on voter-approved bonds.
    4. Associated Student Body Fund: 
      The associated student body fund budget of $2.2 million supports student authorized extracurricular activities. View SBLSD ASB Fund balance reports
    5. Transportation Vehicle Fund: 
      The transportation vehicle fund budget of $885,000 pays for the purchase and major repair of school buses.

     

    The following information and explanation of revenues and expenses focuses on the General Fund, which funds the daily operating expenses of the district.

    2018-19 SBLSD Revenue (General Fund): $138.1

    Budgeted General Fund revenue sources:

    • Local Nontax: $6.3 million
      Includes tuition and fees paid by students, student food service sales, investment earnings, rental of district facilities, and insurance recoveries.
    • State General Purpose: $88.6 million
      Revenues from the state for general basic education purposes driven primarily on the basis of student enrollment using a prototypical schools funding model. Included in this revenue description is Local Effort Assistance (LEA). LEA supplements school district enrichment levies in eligible school districts.
    • State Special Purpose: $17.8 million
      State revenues for services provided through the learning assistance, special education, highly capable, and transitional bilingual programs, as well as other state special and pilot programs. This category also includes funding for pupil transportation, and state child nutrition programs.
    • Federal: $7 million
      Funds provide supplemental educational interventions for eligible students (Title I, Part A), federal school child nutrition programs including USDA commodities, career and technical education, English Learners, and specially designed instruction for special education students.
    • Revenues from Other Sources: $1.5 million
      Revenues received from other entities.

     

    2018-19 SBLSD Expenditures (General Fund): $136.5 million

    Budgeted General Fund program expenditures: These categories are defined through the state's accounting system to maintain consistency among school districts. The school district prepares its expenditure budget on a program basis. Program budgeting allows the district to examine the costs of individual instructional programs. The major General Fund programs are:

    • Regular Instruction: $78.1 million
      Direct cost of basic education as defined in RCW 28A.150.210/220. Program expenditures include the salary and benefit costs of basic education teachers, principals, counselors, media specialists, nurses and school secretaries. It also includes direct costs of instruction such as textbooks, technology, supplies and materials, classroom equipment, and library resources.
    • Special Education:$16.6 million
      Expenditures for special education and related services for special education students between birth and 21 years of age. Included expenditures are teachers, psychologists, speech therapists, occupational and physical therapists, and para-professionals. 
    • Career and Technical Education:$4 million
      Expenditures for operating Career and Technical Education programs approved by the Superintendent of Public Instruction. 
    • Compensatory Education: $6.8 million
      Expenditures to assist student participation in the regular instructional programs. Examples include Title I, Learning Assistance Programs (LAP) and transitional bilingual programs.
    • Other Instructional Programs: $0.3 million
      Expenditures for summer school and highly capable education.
    • Community Services: $2.6 million
      Expenditures for operating programs primarily for the benefit of the community as a whole or some segment of the community. Includes the District’s early learning program and performing arts center.
    • Support Services: $28.1 million
      Activities that support the educational programs of the District. Areas included are, superintendent's office, Board of Directors, business operations, personnel services, maintenance, utilities, insurance, data processing, food service and pupil transportation.

     

     


     

    Funding Q&A

    • How much is Sumner-Bonney Lake School District's total General Fund revenue? 
      It is projected at $138 million.


      What is meant by "McCleary funding"? Is all of the funding school districts receive from the state McCleary funding? 
      No. The McCleary court case was about the State's responsibility for funding the basic education program as defined in state statute. The basic education program includes a mixture of general apportionment (for general education purposes) and programs targeted to specific purposes such as running start, career and technical education, support for struggling students, and multi-lingual services.  The case did not apply to state funding outside the basic education definition such as grants provided through provisos in the state appropriations act. Local school district operations levies are also part of the discussion when the term McCleary funding is used because while the State was not fulfilling its obligation to fund basic education, local school district levies were picking up the shortfalls for the costs of the program.

      In response to the McCleary decision, the state legislature increased state funding for basic education and placed restrictions on both the amount of money school district's can collect in local levy revenue and the ways in which revenue from local sources may be used.


      How much will the Sumner School District receive for the basic education program related to the outcome of the McCleary case?
       
      The district is projecting to receive approximately $20 million more from the state under the group of allocation formulas that make up basic education than last year.  That’s offset by a projected approximately $5 million decrease in levy collections for a net projected increase to the district of approximately $15 million.


      Does the state require school districts to spend state basic education program money on specific things?  
      Yes and no, state funding to support the instructional program of basic education is distributed to school districts by OSPI through legislatively prescribed funding formulas. Most of the funding is provided through a model called the prototypical schools model. The model allocates funding in a variety of categories: Staff salaries, benefits, materials, supplies, and operating costs, and teacher substitutes. The law states that the distribution formula is for "allocation purposes only" and "does not constitute legislative intent that schools should be operated  or structured in a similar fashion as the prototypes" used in the funding model except as specifically required by statute. RCW 28A.150.260

      Most of the money allocated through the prototypical funding model is for the general education program, however the model also allocates funding for specific purposes and programs within the more broadly defined basic education program.  For example, the use of funding distributed for the special education, running start, highly capable, transitional bilingual, and learning assistance programs, or to enhance staffing levels for career and technical education programs, is restricted to only these programs.

      In addition, beginning in the 2018-19 school year, school districts have new requirements related specifically to teacher compensation.  For the 2018-19 school year the Sumner School District is required to pay:

      • No less than $46,516 base salary for a full time teacher,
      • No less than $50,216 base salary for a full time teacher with five years of experience, and
      • No more than $102,715 base salary for a full time teacher.

      The district may pay a teacher more than $102,715 under a supplemental contract for additional time or responsibilities. The specific dollar amounts for these requirements vary by district and will be adjusted each school year to respond to inflationary factors. 


      How will the district spend the money related to the McCleary decision?
       
      The district's 2018-19 budget includes spending increases for staff salaries, instructional materials and supplies, operating costs, and contracted services. The specific amount by spending category is subject to revision pending the outcome of bargaining.


      Where can I learn more about K-12 finance?
       A Citizens Guide to K-12 Finance provides a clear and simple overview of K-12 financial issues. It provides information on K-12 finance by answering frequently asked questions.


      Has the State Superintendent of Public Instruction issued formal guidance to school districts as they proceed in implementing the McCleary legislation?
       
      Yes, State Superintendent of Public Instruction Chris Reykdal sent this memo to school districts.