2018-19 Final Budget

Presented by:
Mark Mathers, Chief Financial Officer
Mike Schroeder, Budget Director
May 22, 2018

Attachment B
 Agenda for Final Budget
1. General Fund
– Update on General Fund Structural Deficit for Tentative Budget (after
Board direction for budget reductions, budget additions and use of
fund balance)
– Changes to Tentative Budget
– Use of Fund Balance to Offset Changes
2. Other District Funds Changes

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General Fund Tentative Budget
Structural Deficit

3
 Actions for Tentative Budget
• Board Directed Budget Reductions
– Board authorized staff’s recommended budget reductions in April other than the
reduction to English Language teachers ($3.46 million)
– Board accepted transition plan for incumbents in deleted positions. ($267k)

• Retain Internal Audit position

• Recommendations for Budget Additions ($1.25 million)

– Positions for My PGS (professional growth system) and 21st Century from TIF IV grant
– IT Network Analysts for security
– Fingerprint Technician & shift of bond personnel

• Directed use of Ending Fund Balance to cover remaining budget deficit

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 Structural Budget Deficit FY19 (in millions)
General Fund – Tentative Budget
Revenue $ 463.4 M
Expenditures (before reductions and additions) ($472.6)M
Structural Budget Deficit (before reductions/adds) ($ 9.2 M)
Budget Reductions $3.4 M
Budget Additions ($ 1.2)M
Ongoing Structural Deficit ($ 7.0) M

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 General Fund Final Budget Recommendations
• New information occurs on a continuous basis during the
budget process and has to be evaluated
• Vendors may increase prices
• Impact of reductions may need further review to determine
severity of impact
• Shifts of costs between departments occur
• Shifts of accounting practice
• Result is a slight addition to the overall budget
• Recommended to be offset to the ending fund balance

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 General Fund Final Budget Changes
Description Amount Function
Budget Neutral Changes
Move 0.5 FTE Ombudsman EA to Grants $ 17,003 Central Services
Move 0.5 FTE Ombudsman EA to Grants (17,003) Student Support Services
Add 1.0 Day Treatment teacher 65,752 Instruction
Day Treatment teacher offset to Special Education Transfer (65,752) Special Education Transfer
Move retire subsidy transfer to OPEB expense (1,640,019) Health Insurance Fund Transfer
Move retire subsidy transfer to OPEB expense 1,640,019 Instruction
Total $ -
Budget Increases
School Police Forensics budget $ 7,282 Operation & Maintenance
Add back 0.4 FTE Psychologist 49,573 Student Support Services
Add back Special Education Training & Travel 160,000 Special Education Transfer
Special Education lawsuit research database 15,865 General Administration
Total $ 232,720 Offset by Ending Fund Balance

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 Structural Budget Deficit FY19 (in millions)
General Fund – FINAL Budget
Tentative Structural Budget Deficit ($ 7.0 M)
Budget Changes – Tentative to Final Budget ($ 0.2)M
FINAL Ongoing Structural Budget Deficit ($ 7.2) M
+
Position Transition Contingency ($ 0.3) M
Deficit for FY19 (covered by Fund Balance) ($ 7.5) M

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 FY19 Budget and Fund Balance
• Based on previous estimates of FY18 expenses, the FY19 budget is
budgeted to end with a 5.0% fund balance, or $23.6M.
Adj. Final Final
FY18 FY19 Change
Beginning Fund Balance - General Fund 43.3 31.1 (12.2)
Sources: 460.0 463.4 (12.2)
Uses:
Expenditures 482.8 470.6 (12.2)
One-time Transition Costs - 0.3 0.3
Total 482.8 470.9 (11.9)
Total Deficit (22.8) (7.5) 15.3
Ending Fund Balance - General Fund 20.5 23.6 3.1
Ending Fund Balance as % of Total Uses 4.2% 5.0% 0.8%

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 Impact of Special State Funding
• During the 2017 legislative session, the State’s Equity Allocation Model did
not allocate students in charter schools correctly.
• WCSD received an increase in charter enrollment, thereby resulting in a
decrease of $104 per pupil to our FY18 and FY19 basic support per pupil
• State acknowledged its error in November.
• State and WCSD have been working on possible solutions since November.
• Final FY19 Budget includes State funding of $6.6 million in anticipation of a
remedy.
• If the error is not addressed, the District would absorb this one-time loss.
• Result would be a decrease to the District’s fund balance.

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 Impact of Special State Funding
• Based on the State’s acknowledgement of their error, the FY19 builds in
$6.6M from the State.
• If the State fails to make us whole for their calculation error, this will
reduce our ending fund balance to below 4.0%.
Adj. Final Estimated Final
FY18 FY18 FY19
Beginning Fund Balance - General Fund 43.3 43.3 31.1
Structural Deficit (22.8) (12.2) (7.2)
One-time Transition Costs (0.3)
NO FUNDING FOR STATE'S CALCULATION ERROR (6.6)
Total Deficit (22.8) (12.2) (14.1)
Ending Fund Balance - General Fund 20.5 31.1 17.0
Ending Fund Balance as % of Total Uses 4.2% 5.0% 3.6%

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 Addressing Future Budget Deficits
• District has adopted revised budget policies and procedures
• Policy to have a structurally balanced budget
• Strategic plan updated to address the structural deficit in 3 years
• FY19 proposed budget makes significant strides to achieving this
• Additional budget reductions have been identified and proposed
• Priority Based Budgeting (PBB) is currently being implemented
• Insights and conclusions from PBB can provide a programmatic
viewpoint for budget issues
• Other budget reduction processes can also assist

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 Future Years
• Additional reductions will be necessary in FY20 and FY21 to reach a
structurally balanced budget by FY21.
• Without these additional reductions, we will draw down our fund
balance to below $2 million.
Scenario 1 - Adopt Staff Recommendations for Final Budget
(Does not include additional reductions in FY20 or FY21)
FY18 FY19 FY20 FY21
Beginning Fund Balance - General Fund 43.3 31.1 23.6 13.9
Deficit 12.2 7.5 7.2 7.4
Shortfall of State Funding for Base Budget - - 2.5 5.0
Total Deficit 12.2 7.5 9.7 12.4
Ending Fund Balance - General Fund 31.1 23.6 13.9 1.5

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Other Funds

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Capital Projects (Bond) Funds
FY19 FY19
Tentative Final Variance
Sources
Local $ 50,477,619 $ 50,477,619 $ -
Transfers In - - -
Sale of Bonds - 75,000,000 75,000,000
Opening Fund Balance 35,228,817 35,228,817 -
Total Sources $ 85,706,436 $ 160,706,436 $ 75,000,000
Applications
Central Services $ 3,202,000 $ 3,277,000 75,000
Operations and Maintenance 181,000 181,000 -
Land Acquisitions - 5,035,000 5,035,000
Architecture/Engineering Services 4,846,653 4,846,653 -
Building Acquisition/Construction 12,900,000 71,125,000 58,225,000
Site Improvements 3,082,000 3,082,000 -
Building Improvements 39,083,834 40,083,834 1,000,000
Transfer to Debt Service 2,000,000 2,000,000 -
Ending Fund Balance 20,410,949 31,075,949 10,665,000
Total Applications $ 85,706,436 $ 160,706,436 $ 75,000,000

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 Special Education Fund
FY19 FY19
Tentative Final Variance
Sources
State $ 30,450,397 $ 30,450,397 $ -
Transfers In 41,879,327 41,973,575 94,248
Total Sources $ 72,329,724 $ 72,423,972 $ 94,248
Applications
Instruction $ 47,017,279 $ 47,111,527 $ 94,248
Student Suppport Services 13,532,795 13,532,795 -
Instruction Support Services 2,170,986 2,170,986 -
General Administration 616,391 616,391 -
School Administration 596,247 596,247 -
Central Services 110,585 110,585 -
Operation and Maintenance 69,390 69,390 -
Student Transportation 8,216,051 8,216,051 -
Total Applications $ 72,329,724 $ 72,423,972 $ 94,248

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 Debt Service Fund
FY19 FY19
Tentative Final Variance
Sources
Local $ 56,867,596 $ 58,160,509 $ 1,292,913
Transfers In 4,600,904 4,600,904 -
Bond Proceeds - - -
Other 1,688,018 1,688,018 -
Opening Fund Balance 39,363,398 39,363,398 -
Total Sources $ 102,519,916 $ 103,812,829 $ 1,292,913
Applications
Principal $ 34,441,874 $ 34,441,874 $ -
Interest 29,516,689 31,516,689 2,000,000
Building Improvements - - -
Other 3,100,000 1,100,000 (2,000,000)
Ending Fund Balance 35,461,353 36,754,266 1,292,913
Total Applications $ 102,519,916 $ 103,812,829 $ 1,292,913

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 Internal Service Funds
FY19 Final FY19 Final FY19 Final FY19 Final FY19 Tent
Property Health Workers' Comp Combined Combined
Insurance Insurance Insurance Insurance Insurance Variance
Revenues
Premiums Collected $ 2,609,362 $ 75,286,445 $ 2,184,895 $ 80,080,702 $ 78,440,683 $ (1,640,019)
Transfers In - - - - 1,640,019 1,640,019
Other 153,802 5,030,733 9,000 5,193,535 5,193,535 -
Total Revenues $ 2,763,164 $ 80,317,178 $ 2,193,895 $ 85,274,237 $ 85,274,237 $ -
Expenses
Salaries and Benefits $ - $ 495,757 $ 317,297 $ 813,054 $ 813,054 $ -
Employee Benefits - 86,525,975 2,712,621 89,238,596 89,238,596 -
Claims and Services 3,961,555 - - 3,961,555 3,961,555 -
Depreciation - - - - - -
Total Expenses $ 3,961,555 $ 87,021,732 $ 3,029,918 $ 94,013,205 $ 94,013,205 $ -
Net Income (Loss) (1,198,391) (6,704,554) (836,023) (8,738,968) (8,738,968) -
Opening Net Position 2,247,562 16,645,511 2,311,025 21,204,098 21,204,098 -
Closing Net Position $ 1,049,171 $ 9,940,957 $ 1,475,002 $ 12,465,130 $ 12,465,130 $ -

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 OPEB Trust Fund

FY19 FY19
Tentative Final Variance
Additions
Contributions by Employer $ 500,000 $ 2,140,019 $ 1,640,019
Earnings on Investments 1,000,000 1,000,000 -
Adjustment to Fair Market Value 3,000,000 3,000,000 -
Total Additions $ 4,500,000 $ 6,140,019 $ 1,640,019
Deductions
Employee Benefits $ 4,350,000 $ 5,990,019 $ 1,640,019
Purchased Services - 20,000 20,000
Total Deductions $ 4,350,000 $ 6,010,019 $ 1,660,019
Net Increase/Decrease 150,000 130,000 (20,000)
Opening Net Position 60,513,652 60,513,652 -
Closing Net Position $ 60,663,652 $ 60,643,652 $ (20,000)

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Supplemental
Information

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 FY 18-19 General Fund Revenues
($463.4 Million)

Local School
Ad Valorem Support (Sales) Tax,
(Property) Tax, $204,138,121 ,
$110,388,289 , 44.05%
23.82%

State Distributive
School Account
(DSA),
State Special $117,209,959 ,
Appropriation, 25.29%
$6,609,762 , 1.43%
Government
Services Tax
(Vehicle
Other Local Registration),
Other Revenue, $18,701,868 ,
$570,000 , 0.12% Sources,
$5,801,000 , 1.25% 4.04%

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FY 18-19 DSA Per Pupil Funding ($5,737)

Local School Support Per Pupil

(Sales) Tax, $204,138,121 , Source Funding
44.05% 1/3 Ad Valorem $ 583
L.S.S.T. 3,270
D.S.A. 1,884
Total DSA Per Pupil $ 5,737
Special Appropriation 104
1/3 Ad Valorem Other Revenue, 1,419
Other
(Property) Tax, $99,033,022 ,
Total per Pupil $ 7,260
$36,428,135 , 7.86% 21.37%

State Distributive
School Account
(DSA), $117,209,959 ,
25.29%

Special Appropriation,
$6,609,762 , 1.43%

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 Enrollment History
Ten Year History and 2019 Preliminary Projection

66,000
65,000
63,919 63,914 63,834
63,670
64,000 63,287 63,108
62,986
63,000 62,455 62,324 62,220
62,424

62,000
61,000
60,000
59,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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 FY 18-19 General Fund Expenditures
($470.9 Million)
Transfers & Contingency,
45,408,444 , 9.64%

Student Transportation, Regular Instruction,

16,268,968 , 3.45% 218,490,446 , 46.40%

Operation and
Maintenance, 47,940,462
, 10.18%

Central Support , Special Programs,

24,806,120 , 5.27% 4,903,713 , 1.04%

School Administration, Vocational Programs,

35,387,537 , 7.51% 5,764,165 , 1.22%

Other Programs,
General Administration, Instructional Staff 13,537,469 , 2.87%
5,981,577 , 1.27% Support, 15,429,776 , Student Support, Co-curricular Programs,
3.28% 32,642,931 , 6.93% 4,360,048 , 0.93%

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 General Fund Expenditures
• The preceding slide reflects that 71.58% of our expenditures are going to schools
in the following categories:
– Regular, Special, Vocational, Other and Co-Curricular Instruction
– Student Support and Instructional Staff Support
– $42.0M of the $44.6M Transfers goes to Special Education.
• Student Transportation 3.45% is for buses, fuel and bus drivers/staff for students.
• Operations and Maintenance 10.18% is for Utilities, Custodians, School Police for
primarily our schools.
• School Administration 7.51% is for Principals, Assistant Principals and staff in the
schools. Each school requires leadership and support staff for teachers & parents.
• Central Support 5.27% is for Fiscal, HR, IT, Purchasing, Printing, Risk Management,
Accountability, Internal Audit, Mail Services to again support the schools
• General Administration represents 1.27% of the budget for the Board,
Superintendent, Deputy Supt, Area Supts, Chief of Staff, Legal, Ombudsman and
Community Relations.

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FY 18-19 General Fund Expenditures by Type
($472.6 Million)
Instructional
Materials
$13,070,976 2.77%

Salaries & Benefits

$426,536,643 Repairs &
90.25% Maintenance
$3,058,371 0.65%

Utilities $11,470,045
2.43%

Transportation
$5,953,137 1.26%

Licenses & Insurance/Postage

Assessments $2,268,062 0.48%
$6,216,857 1.32%
Dep't Mat'l/Other
$4,057,498 0.86%

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 General Fund FTE Data
Non-
Licensed Licensed Total
Licensed: Teachers (Regular, GATE, Vocational, ELL, Music, ROTC, Deans)
Instructional 2,662 63 2,725 Non-Licensed: Teacher Assistants, Aides and Education Support Professionals
Licensed: Counselors, Nurses, Psychologists, Administrators, Coordinators
Student Support 271 110 381 Non-Licensed: Clinical Aides, Attendance, Education Support Professionals
Curriculum & Instruction, Professional Learning, Library, Assessment Departments
Licensed: Instructional Coaches/Mentors, Program Coordinators, Librarians,
Instructional Staff Support 85 124 209 Administrators
Board Members, Legal Counsel, Investigators, Superintendent, Deputy Supt, Area
General Administration 7 37 44 Supts, Chief of Staff, Ombudsman, Community/Family Services, Govt Affairs
Licensed: Principals, Assistant Principals
School Administration 162 236 398 Non-Licensed: Secretaries, Bookkeepers, Registrars
Fiscal Services, Grant Services, Purchasing, Printing, Planning & Evaluation,
Central Services 6 191 197 Communications, Human Resources, Information Technology, Risk Management
Custodians, Maintenance, Groundskeepers, Equipment Maintenance, Carpenters,
Painters, Plumbers, Facilities Management, School Police, Education Support
Operations - 520 520 Professionals, Professional-Technical Staff
Transportation - 259 259 Bus Drivers, Fleet Maintenance, Dispatch, Instructors, Management
General Fund Totals 3,193 1,540 4,733

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 General Fund FY18-19 FTEs
Operations, 520 ,
Transportation, 259
11%
6%
Central Services,
197 , 4%

School
Administration, 398 ,
8%

General
Administration, 44 ,
1%
Instructional, 2,725 ,
58%
Instructional Staff
Support, 209 , 4%

Student Support,
381 , 8%

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General and Other Funds FTE Data
Non-
Licensed Licensed Total

General Fund 3,193 1,540 4,733

Capital Projects - 48 48

Special Education 702 236 938

Class Size Reduction 229 - 229

Special Revenue
Funds 209 616 825
Internal Service Funds - 12 12
Enterprise Funds - 247 247
FTE Totals 4,333 2,699 7,032

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