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.
Budget Message: 5/5/20
Along with the state-mandated Stay Home, Stay Healthy order to slow the spread of COVID-19 comes negative economic impact to businesses, services and programs. Some may not realize that school districts are not immune to these budget blows.
We’re beyond grateful for the February passage of our Replacement Educational Programs & Operation levy. Our valued voters have made it possible for our District to remain financially stable amid this pandemic. Being steadfast stewards of taxpayer dollars paired with a conservative spending approach puts us in solid financial standing, but not without a substantial revenue loss of more than $2 million.
Here are some ways COVID-19 has affected Sumner-Bonney Lake School District’s budget for 2019-20 and some of the uncertainties we face when building our budget for 2020-21.
Sources of lost revenue for the 2019-20 school year:
- Facility rentals
- Sports/activity fees
- Tuition-based childcare/preschool
- Field trips (transportation-related costs)
- Meal sales
For the 2020-21 school year we face the following economic uncertainties:
- Potential decrease in student enrollment, which impacts funding
- Potential decrease in state and federal funding
With the anticipation of decreased funding and to help mitigate revenue loss, we’re preparing the District to be more resilient when hit with COVID 19 impacts, allowing us to focus on student learning. To do this, we’re implementing two conservative spending strategies now:
- Discretionary purchases for items or services not related to addressing COVID-19 or necessary to support core district functions will be reviewed and subject to approval
- Staffing and hiring will be carefully reviewed and possibly reallocated
2019-20 School Year
- 5/12/20: Budget Update 2020-21 as presented to the School Board at the May 12 meeting
- 2/19/20: Budget Update as presented to the School Board at the Feb. 19 meeting
- 12/11/19: Year-End Budget as presented to the School Board at the Dec. 11 meeting | 2018-19 F-196
Monthly Budget Status Reports
2019-20 Fiscal Year (Sept. 1, 2019-Aug. 31, 2020)
Budget development calendar: 2020-21 School Year
- Legislative Session: January 13, 2020 – March 12, 2020
- Legislative update to the Board: February 19, 2020
- projection: January – February 2020
- Staffing Allocation: March – April 2020
- Budget update to the Board: May 12, 2020
- HR Staffing data final push to B.O: May 29, 2020
- Budget update to the Board: June 16, 2020
- Budget Preliminary Review with the Board: July 8, 2020
- F-195 Due to ESD: July 10, 2020
- Budget Adoption: August 19, 2020
2018-19 School Year
Newly-adopted 2019-20 budget reflects student achievement, safety
At the Aug. 21, 2019, Budget Hearing, the School Board adopted the 2019-20 budget. Check out this concise, easy-to-read budget summary, which reflects the District’s financial priorities of directing resources to the classroom and increasing student performance, improving fiscal accountability, continuing to increase the use of technology, continuing improvements to our facilities, and maintaining our schools as safe learning environments.
UPDATE: 8/21/19: 2019-20 Budget Adoption Presentation as presented to the School Board at the Aug. 21 meeting.
UPDATE: 7/10/19: 2019-20 Preliminary Budget Review as presented to the School Board at the July 10 meeting.
UPDATE: 5/15/19: Budget Update as presented to the School Board at the May 15 meeting.
UPDATE: 4/24/19: Budget Update as presented to the School Board at the April 24 meeting.
UPDATE: 3/20/19: Budget Update as presented to the School Board at the March 20 meeting.
UPDATE: 2/20/19: Budget Update as presented to the School Board at the Feb. 20 meeting.
UPDATE: 1/16/19: Year End Budget Presentation 2017-18 as presented to the School Board at the Jan. 16 meeting.
UPDATE: 1/11/19: District reduces 2018-19 budget deficit by $4 million, in part, by eliminating 24 unfilled positions with a reduction of 9 employees. Further review and analysis, with subsequent changes, will continue to take place this year and next as additional reductions will need to be made in 2019-20. We’re making decisions and implementing processes to help avoid another such budget shortfall in the future. Read more about the District's budget situation in this overview and Q&A.
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: 2019-20 School Year
- 1/14/19: Legislative session begins (1st year of 2019-2021 biennium)
- 2/20/19: Board Meeting - Legislative Update and Budget Calendar
- January-March 2019: Enrollment projection and staffing development
- February-April 2019: Department and grant budget development
- March 4-8, 2019: Building budgets finalized
- 3/20/19: Board Meeting - Budget Report and Staffing & Legislative Update*
- 4/17/19: Board Meeting - Budget Process Update/Revenue Projection*
- May 2019: Budget balancing and finalized
- May 15: Board Meeting - Budget and Legislative Update & Fund Balance Restoration Plan*
- 6/18/19: Board Meeting - Present Final Budget*
- 7/17/19: Board Meeting - Public Hearing and Board Action on 2019-2020 Budget*
* Opportunities for public participation
Monthly Budget Status Reports
2018-19 Fiscal Year (Sept. 1, 2018-Aug. 31, 2019)
2017-18 Fiscal Year (Sept. 1, 2017-Aug. 31, 2018)
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.
The Sumner-Bonney Lake School District budget comprises five operating funds:
The 2018-19 Sumner-Bonney Lake School District budget comprises five operating funds:
- 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.
- 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.
- Debt Service Fund:
The debt service budget of $18.5 million pays for the principal and interest on voter-approved bonds.
- 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.
- 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 Taxes: $16.9 million
Collection of voter-approved Educational Programs and Operation Levy.
- 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.
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.