Adopted Budget

Transcription

1 Adopted Budget C o l l e g e r e a d y c a r e e r r e a d y S T U D E N T G R O W T H Beaverton School District, Beaverton, Oregon 976

2 District Goal for : All students will show continuous progress toward their personal learning goals, developed in collaboration with teachers and parents, and will be prepared for post-secondary education and career success. Beaverton School District 1655 SW Merlo Road Beaverton, Oregon 976 Telephone: For more information, visit the District website at: The Beaverton School District recognizes the diversity and worth of all individuals and groups. It is the policy of the Beaverton School District that there will be no discrimination or harassment of individuals or groups based on race, color, religion, gender, sexual orientation, gender identity, gender expression, national origin, marital status, age, veterans status, genetic information or disability in any educational programs, activities or employment. Printed on 1% recycled post consumer waste

3 BEAVERTON SCHOOL DISTRICT Beaverton, Oregon ADOPTED BUDGET Prepared by: Business Services Jeff Rose, Ed.D. Superintendent Claire Hertz Chief Financial Officer

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5 BEAVERTON SCHOOL DISTRICT ADOPTED BUDGET DOCUMENT TABLE OF CONTENTS INTRODUCTORY SECTION Executive Budget Summary... 3 The Budget at a Glance Budget Document Format Budget Calendar 7 Beaverton School District Strategic Plan Beaverton School District Achieving Equity Through Excellence Budget Message Summary of Revenues & Expenditures - All Funds All Funds Summary All Funds Expenditures by Object Budget Forecast - All Funds Student Enrollment Historical & Projected 22 All Funds Salaries & Benefits History & Budget 23 Assessed Value & Property Tax Summaries. 24 Debt Summary.. 25 Benchmark Data.. 26 Performance Results.. 28 Budget Committee.. 3 School Board and Administrative Staff Meritorious Budget Award ORGANIZATIONAL SECTION The District and the Community.. 35 Oregon Green Schools District Overview & Budget Process. 38 The Budget Process: Requirements of Oregon Budget Law.. 41 Measures and Levies.. 42 Key Factors in Budget Development for Vision, Mission & Strategies. 45 Full Option Graduate Profile. 46 Administrator Organizational Chart District Department Descriptions.. 48 Relationship Between Departments & Funds.. 6 School Board Policies School Board Financial Goals for School Board Zone Map Years of Educational Excellence & Achievement. 68

6 TABLE OF CONTENTS - Continued FINANCIAL SECTION Financial Overview. 75 Revenue Overview 76 Summary of Revenues & Expenditures by Object - All Funds 79 Fund Balances, Governmental Funds Last Five Fiscal Years 8 General Fund General Fund Functions 83 General Fund Functions Descriptions 84 Summary of Revenues & Expenditures General Fund 9 General Fund Major Function & Object Variance Analysis.. 91 General Fund Revenue by Source 93 General Fund Expenditures by Major Function.. 95 General Fund Expenditures by Object.. 98 Budgeted Positions & Students Served by Minor Function (General Fund) 11 General Fund - 1 Budget Estimates - Revenues.. 13 General Fund - 1 Budget Estimates - Expenditures.. 15 Budget Forecast General Fund Student Body Fund Summary of Revenues & Expenditures Student Body Fund 139 Student Body Fund - 22 Budget Estimates - Revenues. 141 Student Body Fund - 22 Budget Estimates - Expenditures Budget Forecast Student Body Fund Special Purpose Fund Summary of Revenues & Expenditures Special Purpose Fund. 147 Special Purpose Fund - 23 Budget Estimates - Revenues. 149 Special Purpose Fund - 23 Budget Estimates - Expenditures.. 15 Budget Forecast Special Purpose Fund Categorical Fund Summary of Revenues & Expenditures Categorical Fund. 165 Categorical Fund Major Function Variance Analysis. 166 Categorical Fund - 24 Budget Estimates - Revenues. 167 Categorical Fund - 24 Budget Estimates - Expenditures Budget Forecast Categorical Fund Pension Fund Summary of Revenues & Expenditures Pension Fund. 175 Pension Fund Major Function Variance Analysis. 176 Pension Fund - 25 Budget Estimates - Revenues. 177 Pension Fund - 25 Budget Estimates - Expenditures Budget Forecast Pension Fund Accrued Obligation for Post-Employment Benefits

7 TABLE OF CONTENTS - Continued FINANCIAL SECTION (CONTINUED) Grant Fund Summary of Revenues & Expenditures Grant Fund. 183 Grant Fund Major Function Variance Analysis Grant Fund - 27 Budget Estimates - Revenues. 185 Grant Fund - 27 Budget Estimates - Expenditures Budget Forecast Grant Fund Long-Term Planning Fund Summary of Revenues & Expenditures Long-Term Planning Fund. 211 Long-Term Planning Fund Major Function Variance Analysis. 212 Long-Term Planning Fund - 28 Budget Estimates - Revenues. 213 Long-Term Planning Fund - 28 Budget Estimates - Expenditures Budget Forecast Long-Term Planning Fund Nutrition Services Fund Summary of Revenues & Expenditures Nutrition Services Fund. 221 Nutrition Services Fund Major Function Variance Analysis. 222 Nutrition Services Fund - 29 Budget Estimates - Revenues. 223 Nutrition Services Fund - 29 Budget Estimates - Expenditures Budget Forecast Nutrition Services Fund Debt Service Funds Debt Service Overview 231 Outstanding Debt by Type 232 Legal Debt Margin Information. 233 Debt Service/General Obligation Fund Summary of Revenues & Expenditures Debt Service/Gen Ob Fund. 237 Debt Service/Gen Ob Bond Fund - 3 Budget Estimates - Revenues. 239 Debt Service/Gen Ob Bond Fund - 3 Budget Estimates - Expenditures.. 24 Budget Forecast Debt Service/Gen Ob Bond Fund Debt Service/Lease Purchase Fund Summary of Revenues & Expenditures Debt Service/Lease Purch Fund. 245 Debt Service/Lease Purchase Fund Major Function Variance Analysis. 246 Debt Service/Lease Purch Fund - 31 Budget Estimates - Revenues. 247 Debt Service/Lease Purch Fund - 31 Budget Estimates - Expenditures Budget Forecast Debt Service/Lease Purch Fund Debt Service/PERS UAL Fund Summary of Revenues & Expenditures Debt Service/PERS UAL Fund. 253 Debt Service/PERS UAL Fund - 32 Budget Estimates - Revenues. 255 Debt Service/PERS UAL Fund - 32 Budget Estimates - Expenditures Budget Forecast Debt Service/PERS UAL Fund Debt Service/29 FFCO Fund

8 TABLE OF CONTENTS - Continued FINANCIAL SECTION (CONTINUED) Summary of Revenues & Expenditures Debt Service/29 FFCO Fund. 261 Debt Service/29 FFCO Fund Major Function Variance Analysis. 262 Debt Service/29 FFCO Fund - 33 Budget Estimates - Revenues. 263 Debt Service/29 FFCO Fund - 33 Budget Estimates - Expenditures Budget Forecast Debt Service/29 FFCO Fund Capital Project Fund Capital Projects Information 269 Summary of Revenues & Expenditures Capital Projects Fund. 276 Capital Projects Fund Major Function Variance Analysis. 277 Capital Projects Fund - 4 Budget Estimate - Revenues 279 Capital Projects Fund - 4 Budget Estimate - Expenditures 28 Budget Forecast Capital Projects Fund Insurance Reserve Fund Summary of Revenues & Expenditures Insurance Reserve Fund. 287 Insurance Reserve Fund Major Function Variance Analysis 288 Insurance Reserve Fund Budget Estimates Revenues 289 Insurance Reserve Fund Budget Estimates Expenditures 29 Budget Forecast Insurance Reserve Fund Workers' Compensation Fund Summary of Revenues & Expenditures Workers' Compentation Fund. 297 Workers' Compensation Fund Major Function Variance Analysis 298 Workers' Compensation Fund Budget Estimate - Revenues. 299 Workers' Compensation Fund Budget Estimate - Expenditures. 3 Budget Forecast Workers' Compensation Fund Printing Services Fund Summary of Revenues & Expenditures Printing Services Fund. 35 Printing Services Fund Budget Estimate - Revenues. 37 Printing Services Fund Budget Estimate - Expenditures. 38 Budget Forecast Printing Services Fund Scholarship Fund Summary of Revenues & Expenditures Scholarship Fund. 313 Scholarship Fund - 7 Budget Estimate - Revenues. 315 Scholarship Fund - 7 Budget Estimate - Expenditures. 316 Budget Forecast Scholarship Fund INFORMATIONAL SECTION Summary of Revenues and Expenditures - All Funds Local Option Levy Staffing by School Personnel Resource Allocations History - All Funds

9 TABLE OF CONTENTS - Continued INFORMATIONAL SECTION (CONTINUED) Personnel Costs All Funds Expenditures for Personnel Services Taxes Paid By Average Homeowner Assessed Value and Real Market Value of Taxable Property Property Tax Levies and Collections Principal Property Taxpayers Demographic and Economic Statistics Debt Service Schedule Student Enrollment Projections Methodology. 342 Student Enrollment History. 343 ODE Standardized Test Scores Dropout Rates Free/Reduced Lunch Statistics Staff/ Student Satisfaction Surveys Glossary. 357 Acronyms. 361 Legal Notices Board Actions 365

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11 Introductory Section B A L A N C E D I V E R S I T Y I N D I V I D U A L N E E D S Introductory Section

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13 BEAVERTON SCHOOL DISTRICT ADOPTED BUDGET DOCUMENT INTRODUCTORY SECTION TABLE OF CONTENTS Executive Budget Summary... 3 The Budget at a Glance Budget Document Format Budget Calendar 7 Beaverton School District Strategic Plan Beaverton School District Achieving Equity Through Excellence Budget Message Summary of Revenues & Expenditures - All Funds All Funds Summary All Funds Expenditures by Object Budget Forecast - All Funds Student Enrollment Historical & Projected 22 All Funds Salaries & Benefits History & Budget 23 Assessed Value & Property Tax Summaries. 24 Debt Summary.. 25 Benchmark Data.. 26 Performance Results.. 28 Budget Committee.. 3 School Board and Administrative Staff Meritorious Budget Award

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15 Executive Budget Summary The Executive Budget Summary presents a comprehensive summary of required information from each section of the budget and could be presented separately from the budget document and still present a complete picture of the entity. 3

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17 THE BUDGET AT A GLANCE The Budget Process Oregon Local Budget Law (ORS to ) defines a process and format for school districts annual budget preparation and presentation. A balanced budget is when the projected resources equal projected requirements within each fund. The Oregon Department of Education (ODE), through the administrative rule process, adopts a chart of accounts that is used to classify revenues and expenditures. All Oregon school districts are expected to follow the chart of accounts for budgeting and financial reporting. The Beaverton School District appropriates its expenditure budget at the major function level. The functional areas, as defined by ODE, are Instruction, Support Services, Enterprise and Community Services, Facilities Acquisition and Construction, Other Uses (mainly transfers), Contingency, and Unappropriated Ending Fund Balance. The District's budget message and proposed budget is based on a $6.55 billion State School Funding level. The District has increased the General Fund budget by $39.4 million for the adopted budget, with $24.3 million from State School Fund and $15 million from local option levy. General Fund As adopted, the General Fund budget for totals $343,727,484. This is an increase of $39.4 from the adopted budget. This increase will be used to cover increased contractual requirements as well as to maintain and restore teaching positions and address some extreme class sizes. The local option levy will provide 151 additional teaching positions. An analysis of major objects including Salaries, Associated Payroll Costs, Purchased Services, Supplies & Materials, Capital Outlay, Other, and Transfers provides further explanation. As illustrated in the chart, the adopted budget allocates 61.8% to Instruction, 32.5% to Support Services,.1% to Facilities Acquisition and Construction, 1.3% to Transfers, and 4.3% to Contingency. It is helpful to compare the proposed and adopted budgets. The allocation to Instruction increased from 59.9% to 61.8% of the total General Fund budget. Support Services decreased from 33.8% to 32.5%. Facilities Acquisition and Construction remained at.1%. Transfers decreased from 2.7% to 1.3%. Finally, the Operating Contingency increased from 3.5% to 4.3% in the budget. Revenue Outlook The General Fund revenue budget includes $36,639,617 from the State School Fund formula. The estimate is based on ODE s March 3, 213 projection adjusted to a projected statewide K-12 school funding level of $6.55 billion. Of this amount, $12.1 million is reimbursement for Transportation programs. An additional $15. million is included in the General Fund budget for the local option levy which was passed in the May 213 election. Beaverton School District Budget Comparison by Function Adopted Budget Support Svcs 33.8% Instruction 59.9% Other 6.3% Adopted Budget Support Svcs 32.5% Instruction 61.8% Other 5.7% Facilities Acq.1% Transfer of Funds 2.7% Contingency 3.5% Facilities Acq.1% Transfer of Funds 1.3% Contingency 4.3% 5

18 BUDGET DOCUMENT FORMAT Welcome to the Beaverton School District. If you are a new reader of our budget document or you need a review, the following section will guide you through the budget document s format and organization as well as the budget preparation process. Budget Format The budget document is organized into four sections: Introductory Section Organizational Section Financial Section Information Section The Table of Contents leads the budget document. Summary information is shown on the first few pages of the budget document. The Introductory Section includes the Budget Message, a comprehensive narrative overview of the budget. The narrative presents the budget in the context of the District s Strategic Plan. In addition, summary budget information is presented in tabular and graphic format as well as student enrollment history and projections, budget forecasts and performance results. The Organizational Section is comprised of general information about the District and its budget, including the level of education provided, geographic area served, and number of schools and students. Also included in this section are significant budget and financial policies, procedures and regulations as well as a detailed description of the budget process. The Financial Section contains required information for the District s seventeen funds and descriptions of significant revenue sources and expenditure categories. The Information Section includes detailed historical and projected personnel resource allocations, forecasts, property tax information and other performance measures used by the District. A glossary of terms and acronyms can be found in this section. The District Vision, Mission and Goal, Core Strategies and Values, and Budget Committee are included in the budget document. The Budget Committee and School Board are jointly responsible for oversight and approval of the budget. The Budget at a Glance highlights major budget changes from with an emphasis on the General Fund. 6

19 BEAVERTON SCHOOL DISTRICT DISTRICT BUDGET CALENDAR October 8, 212 School Board Workshop 8:am Budget Process Discussion Location: Health & Science High School October 29, 212 School Board Meeting 6:3 pm Approve Budget Process and Calendar Discuss Selection of Budget Committee Members to Fill Vacancies Location: Administration Center November 13, 212 December 11, 212 School Board Meeting 6:3 pm Appoint Budget Committee Members to Fill Vacancies Location: Administration Center January 22, 213 Superintendent Budget Listening & Learning Session 6:3 pm Location: Aloha High School Commons February 12, 213 Superintendent Budget Listening & Learning Session 6:3 pm Location: Beaverton High School Cafeteria Budget Sessions for Staff will be scheduled in the Month of March. 7 April 22, 213 Budget Committee Meeting 6:3 pm Elect Budget Committee Officers, Proposed Budget, Budget Message, Public Testimony and Strategic Budget Team Presentation Location: Sunset High School Commons May 6, 213 May 13, 213 Budget Committee Meeting 6:3 pm District presents information in response to questions and queries, Public Testimony, and Budget Committee discussion Location: Beaverton High School Cafeteria Budget Committee Meeting 6:3 pm Budget Committee discussion, Approval of Budget and Tax Levies Location: Administration Center June 3, 213 School Board Meeting 6:3 pm Budget Hearing/Board Adopts Budget and Tax Levies Location: Administration Center The Beaverton School District recognizes the diversity and worth of all individuals and groups. It is the policy of the Beaverton School District that there will be no discrimination or harassment of individuals or groups based on race, color, religion, gender, sexual orientation, gender identity, gender expression, national origin, marital status, age, veterans' status, genetic information or disability in any educational programs, activities or employment. The meeting location is accessible to persons with disabilities. A request for an interpreter for the hearing impaired, or for other accommodations for persons with disabilities, should be made at least 48 hours in advance of the meeting. Please contact Community Involvement Office at

20 create caring staff Rigor community scholarship Goal Thrive, learning Contribute, core Exceed, strategies Excel... growth Beaverton School District Strategic Plan inspire Our Vision Our Mission The Goal of our work Students are at the center of our vision. Their individual achievement is our collective responsibility. We fundamentally believe that every single child has unique gifts and talents, and we are committed to help discover and develop them. Success belongs to each student and will not be predicted by race, ethnicity, family economics, mobility, gender, disability, or initial proficiencies. All children will have choices for their future success and will carry with them a life-long love of learning that enhances their lives and supports generations that follow. High standards and high expectations drive our students, our staff, and our community. Every staff member commits to professional growth, excellence, and success. We are strongly connected to our families and the local and global communities. Engage our students in rigorous and joyful learning experiences that meet their individual needs so they may thrive, contribute, compete, and excel. All students will show continuous progress toward their personal learning goals, developed in collaboration with teachers and parents, and will be prepared for post-secondary education and career success. 8

21 create caring Rigor growth staff families Excel achievement scholarship inspire Our core strategies Develop a customized learning plan for every student that is relevant, current, and challenging. Hire, develop, and retain qualified, committed, and diverse staff throughout the District. Strengthen student learning experiences through teacher collaboration, student proficiency, differentiation, and common assessment. Employ technology to support innovation and excellence. Directly connect parents and the community to student learning and students to community life. Ensure a safe and caring learning environment for students and staff. Regularly review and improve the strategic plan and the implementation details that support it. each student safe Rigor community 9

22 create caring staff Rigor growth achievement families scholarship Excel inspire The Values we embrace The following values are an integral part of everything we do at the District and are woven into every element of our strategic plan. Rigor. We set high standards and high expectations and relentlessly pursue success. Curiosity. A desire to understand, to know more, and to explore is the foundation of engaged learning. Diversity. Diversity is an essential asset of our community and a source of learning and opportunity in our schools. Equity. Student achievement belongs to each student and will not be predicted by race, ethnicity, family economics, mobility, gender, disability, or initial proficiencies. Balance. We nurture the whole child and promote joy and well-being among students and our staff. A great place to work. We create an environment that nurtures passion for great work, collaboration, and leadership. Accountability. We manage resources wisely and create results that surpass the expectations of the community. Communication. Our communication is honest, clear, and transparent. Sustainability. We embrace our stewardship responsibility for our environment and our community, and manage our activities with future generations in mind. Scholarship. We are committed to learning that is life-long, self-directed, and community-supported. each student safe Rigor community 1

23 Beaverton School District Achieving Equity Through Excellence Student achievement belongs to each student and will not be predicted by race, ethnicity, family economics, mobility, gender, disability, or initial proficiency - BSD Vision for Equity Standards-Based Learning System Inclusive Environment Academic & Behavior Learning Targets Instruction Assessment Feedback Excellence Full Option Graduate High Expectations Relationships Culturally Responsive Classrooms 11 Equity Learning Teams Assessment Analysis Consultation Intervention Refinement rev kv

24 BUDGET MESSAGE April 22, 213 Dear Beaverton Budget Committee Members and Community: I submit for your consideration the Proposed Budget for the Beaverton School District for fiscal year The proposed budget of $499,31,442 is the result of financial goals set by the School Board, staff, student and community input, and the work of the 31-member Internal Budget Team (IBT). This budget proposal brings a message of hope to Beaverton Schools. With the Oregon Legislature still in session and the election for the levy ahead of us on May 21, the District has more than one possible budget scenario for : Scenario 1 Scenario 2 Scenario 3 $6.55 Billion State School Fund -$11 Million Shortfall + $2 Million PERS Reform + $15 Million Local Option Levy -$5 Million Shortfall +1 Million Addition The proposed budget navigates three very critical financial factors. These scenarios include the premise the Oregon Legislature will adopt a State School Fund level of $6.55 billion for , the Legislature will approve $2 million in budget savings from reforms of the Public Employee Retirement System (PERS) and the local voters would pass a local option levy on May 21st generating an additional $15 million in local revenue. The proposal includes a possible $1 million surplus over current service level that would be used to restore some previously cut teaching positions and address some extreme class sizes. In October 212, the School Board approved the following goals developing a budget: 1. Meet the expectations of our School Board priorities, strategic plan, community values and contractual obligations. 2. Produce a document that clearly articulates a District financial plan, which includes opportunity for local funding measures for the next two years that aligns with our District priorities. 3. Rebuild a fund balance in General Fund to support future bond issues and ensure good financial health of the District: % % 4. Support Board advocacy for stable and adequate statewide funding for education. In response to pending decisions to be made by the 213 Legislative Session and local voters in the May election, the District has developed three possible budget scenarios to balance the budget: Budget Impact (in Millions) Scenario 1: $6.55 Billion State School Fund Scenario 2: + $2 M PERS Reform Scenario 3: + $15 M Local Option Levy Schools -$5 M -$3 M +$12 M Central/Fund Transfers -$4 M -$2 M -$2 M Fund Balance -$2 M $ $ Total Budget Impact -$11 M -$5 M +$1 M In the last five years, the District has reduced $142 million. To balance the budget, Beaverton has taken the following steps: Used the District s ending fund balance. Used infrastructure and central office reductions to spare school programs and staff reductions. Used staff resignations and natural attrition of staff. Used a reduction in force to eliminate 344 teaching positions in Over the last three months, the Internal Budget Team, including our employee associations, focused their energy on updating the zero-based budget created in with the three possible funding scenarios for The result is a comprehensive budget that reflects the strategic priorities and values of the Strategic Plan, student outcomes, and graduation requirements, state and federal parameters, School Board policies, and community input. After a year of untenable class sizes, the Internal Budget Team had to create multiple scenarios ranging from further reductions of $11 million to the possibility of adding back $1 million in resources. This budget proposal is focused on addressing extreme class sizes, and creating a new base and financial trajectory to build on in the future. 12

25 I am proud of the Internal Budget Team. They have spent countless hours in team meetings and in individual work groups developing quality budget proposals. I am proud of the Budget Process that was approved by the School Board. We have given the community opportunities to learn about our budget, the process, and also to provide advisory input throughout the process. As promised to the community, the work of the Internal Budget Team has been used to begin staffing schools on March 1. I bring to you a staffed proposed budget. Principals have been asked to identify specialized language skills and program training such as International Baccalaureate (IB), Primary Years Program (PYP), Middle Years Program (MYP), Advanced Placement (AP), Two-Way Immersion (TWI) and Expeditionary Learning (EL). Teacher input has been collected to inform the staffing process including if they want to stay in their current placement, be considered for a transfer, and their preferred assignment for Human Resource staff are in the process of meeting with principals to staff schools. The ideal outcome will be to complete staffing with principals by June 3, and allow open positions to be posted internally for teachers within the District to apply. Submitting a staffed budget will allow a higher quality staffing process for If changes are made during the budget process, staffing will need to be redone, and finishing in time for school to start will be difficult, eliminating the opportunity to consider principal and teacher input. We look forward to the outcomes of the Oregon Legislature and the May 21st election. Our schools may experience the first increase in staffing in five years. These are hopeful times and may reflect improved services in schools for I can say with confidence as state funding improves, we are positioning the Beaverton School District to make even greater gains in individual student growth and success Budget Process The budget process for includes four phases: PHASE 1: Beginning with the development and School Board approval of the budget process in October 212. In November and December, individual board members reviewed the budget process with continuing budget committee members, and an orientation was provided to newly appointed budget committee members. On December 1, Governor Kitzhaber released the state proposed budget, and the District released estimated resources and budget capacity for the District in PHASE 2: From January through March 213, the District held two Superintendent Budget Listening Sessions to solicit additional feedback from the community. In addition, budget suggestions were received throughout the fall and into March. An electronic Frequently Asked Questions (FAQ) was created and is available online under the Annual Budget tab. PHASE 3: In March, the Legislature s Co-Chairs released their budget proposal. This further informed the work of the Internal Budget Team who were charged with responding to multiple budget scenarios pending legislative and the May 21st local option levy election results. PHASE 4: Beginning in April, the final phase includes the delivery of the Budget Message by the Superintendent and the budget proposal to the Budget Committee. The Budget Committee will review the proposed budget, hear community testimony, and accept requests for additional information. Finally, the Budget Committee will approve the budget and tax levies for and send the Budget to the School Board for adoption. In June, the Board will hold a Budget Hearing and vote on a resolution to adopt the Budget, levy taxes and appropriate funds. 13

26 Budget Summary The budget totals $499,31,442 for all funds. The general fund budget totals $343,64,69 and has been developed including the following budget assumptions: Revenue and Resource Estimates The District projects additional enrollment of 32 students for a total of 39,747 students. Based on an estimated statewide K-12 funding level of $6.55 billion for the biennium, the District will receive an estimated $38 million in State School Fund revenue. The General Fund beginning fund balance is projected to be $7.5 million. Expenditures and Commitments In , the Budget Decision Packages created by the Internal Strategic Budget Team will be used to allocate staffing to all schools. Department budgets include efficiencies and $2-4 million in reductions depending on the funding scenario. Salary and benefit budgets include current contractual obligations and PERS reforms, and may be updated pending legislative action. Non-salary expenditure increases for include increases in utilities and worker s compensation insurance premiums. Contingency and Ending Fund Balance Policy As outlined in the Board financial goals for the District, the General Fund Contingency will be budgeted at 4.25% of total revenues. Board policy calls for a minimum contingency of 5%, and the ending fund balance will be at least equal to the appropriation for contingency. The contingency will be budgeted at a lower level than policy requires, and will be rebuilt to the required 5% in Community Involvement There has been proactive community involvement through the various phases of the budget development process. In September and October, the board solicited applications for open budget committee positions, and received over 5 applications. Board members interviewed applicants, and the Board approved finalists in December and January. In October, the Board approved a budget calendar and process, and shared this with the community. Two community Budget Listening Sessions were held in January and February. There will be an additional opportunity for the Budget Committee to take input during Budget Committee meetings in April and May. The Board will hold a Budget Hearing in June and receive public testimony. Throughout the process, staff, students and members of the community have submitted s and Budget Suggestion Forms that have been shared with the Internal Budget Team and Budget Committee. The advisory input was utilized by the Internal Budget Team to craft the budget recommendations. Finally, it is clear from the input that the community wants to be part of the solutions to help us meet the District Goal for Full Option Graduates with every student being college and career ready. Our families, students and community patrons want our schools to be appropriately staffed and financially healthy. While we are dependent on state resources, Beaverton has impressively advocated for increased school revenue, and is currently considering a local option levy that would impact our staffing in the immediate future. Department Reductions and Fund Transfers Central Services department employees are committed to responding to our budget challenges in a manner that minimizes the impact on schools. Even though the Central Service work group has experienced significant reductions in staff since 27, these departments continue to find ways to save money and increase efficiencies. Combined with lower fund transfer requirements for , they have identified combined reductions of $4,42, to be prioritized as follows depending on funding outcomes. 14

27 Central Departments and Fund Transfers Reduced/Eliminated (Budget Scenario 2 & 3): Reduce energy usage $165, Reduce fund transfers for bus leases and unemployment costs $2,9, Eliminate bottled water in meeting rooms and portable classrooms $3, Reduce ESL staffing due to lower ESL enrollment $47, and to maintain expense level at 9% of revenue $55, While unlikely, if PERS reforms and State School Funding are lower than the equivalent of $6.75 Billion for , the following would be reduced in priority order (Budget Scenario 1): Reduce Central Department non-salary budget 5% $75, Reduce Athletics expenses $15, Central Additions: If PERS reforms are passed, some of the resources from Central Department and fund transfer reductions will be dedicated to (Budget Scenario 2 & 3): Training in the new student information system (Synergy) Hiring one media specialist position dedicated to working directly with school-based media assistants and providing oversight for library collections Ongoing Professional development in schools Department budgets and ultimately schools have realized further reductions in federal grants through sequestration. Internal Budget Team Process The team began their work by reviewing the school level Budget Decision Packages created in the zero-based budgeting process in They modified the existing packages to respond to the three funding scenarios aligning priorities of the college and career readiness goals, Strategic Plan, the School Board, the community and expertise from members of the Internal Budget Team. The team developed staffing tight (consistency) and loose (autonomy) guidelines to help as budget decisions were formed. Emphasis throughout the process was to ensure we were building models that support a School District and not a District of schools. The priorities stress the importance of a cohesive K-12 system. Budget Decision Packages As the global economy recovers, and resources return to schools, it is imperative that the District remain focused on building a strong academic K-12 system serving nearly 4, students. While Beaverton s 51 schools serve very different student populations with a wide range of needs, our talented staff provide a high quality education for every child regardless of their prior learning, and strive to build on students background knowledge. Staff has a strong sense of urgency to ensure that all students reach or exceed standards every year. During the elementary years, staff begins to build a strong foundation for learning by nurturing the academic, social, emotional and physical needs of each young learner. Individual growth and achievement in the early years is critical to student success at the middle and high school levels. Strengthening the academic core is the focus during the middle school years. Students in middle school engage in academic exploration to discover their learning styles and learning preferences. Instruction provides timely and individualized support that builds on students strengths and addresses their unique needs as learners. Teaching and learning at the middle level seeks to ensure every student is prepared with the skills and knowledge required to be successful at the high school level. In the high school years, the focus is on providing students with a full range of rigorous academic courses, electives, and co-curricular athletics and activities that prepares each student to succeed in post-secondary choices. College and career readiness is the intentional effort related to a student s high school experience. Students are also encouraged to participate in leadership and community service opportunities. 15

28 Tie to Strategic Plan & College and Career Readiness The Beaverton School District believes that every child can learn and achieve at a high level. The District Goal for states: All students will show continuous progress toward their personal learning goals, developed in collaboration with teachers and parents and will be prepared for postsecondary education and career success. Coupled with this goal, the School Board drafted a comprehensive Strategic Plan outlining the strategic outcomes and key initiatives to support the achievement of the District Goal. The implementation of the Beaverton Strategic Plan, or THRIVE document, highlights the core values as well as the actions necessary to realize post-secondary education and career success for all students. Elementary School Model At the elementary level, students learn critical foundational skills in the core academic areas including literacy, math, social studies and science. This model invests in classroom teachers and specialists in P.E., music, and counseling. Classified staff will provide support in the areas of technology and the school library. The model provides supervision and counseling supports to ensure student safety in a positive learning environment. The following elementary school example incorporates changes from to : Position Scenario 2: Without Levy Scenario 3: With Levy Classroom Teacher Music & PE Specialists Intervention Teacher.5..5 Instructional Assistant Middle School Model Over the last six years, middle school teachers and principals have worked to develop a standards-based learning system that clearly identifies what students need to know and be able to do. Middle school staff has worked to improve classroom instruction through focused work on assessment practices, resulting in common learning targets in all core content areas. Classroom practices and professional development have been aligned across the eight comprehensive middle schools. Although consistent classroom practices have been established, the structures in each middle school have varied. Middle school principals have worked as a collaborative team to move forward and more closely align the structure of each middle school. The following middle school example incorporates changes from to : Position Scenario 2: Without Levy Scenario 3: With Levy Classroom Teacher Intervention Teacher Media Assistant High School/Option Schools Models The High School Model is focused on providing students with a range of rigorous academic courses, electives and co-curricular athletics and activities that prepares them to succeed in post-secondary choices. In addition, students are encouraged to participate in leadership and community service opportunities. High school principals across the system have been engaged in discussions and planning for equity in programming. Providing safe learning environments is also a top priority. Leadership, counseling resources and essential supervisory staff will help to create a climate conducive to learning, while safeguarding students physical and emotional well-being. The following high and option school examples incorporates changes from to : High School Position Scenario 2: Without Levy Scenario 3: With Levy Classroom Teacher Special Ed Convertible StEPP Coordinator.5.. IB/AP Coordinator Counselor/Support Service

29 Option School Position Scenario 2: Without Levy Scenario 3: With Levy Classroom Teacher StEPP Coordinator.3.. IB/AP Coordinator Counselor/Support Service Summary of School Reductions and Additions Student/Teacher Ratio Scenario 2: Without Levy Scenario 3: With Levy Kindergarten 28. to to to 1 Elementary 3.5 to to to 1 Middle 3.5 to to to 1 High 3.5 to to to 1 School Positions Reduced/Eliminated (the levy would not affect these positions unless noted): Elimination of elementary intervention teachers.5 APU without the levy Elementary intervention teacher.5 APU maintained with levy Reduction of middle school intervention teachers from 2. to 1. APU Reduction of middle school media assistant calendars from 21 days to 185 days to be consistent K-12 Elimination of StEPP Facilitators at Options.25 APU and High Schools.5 APU Reduction of Youth Services Coordinator positions 3. APU Poverty allocations for teachers in middle, high and options schools are tied to Title 1 allocations for elementary schools and have been reduced School Positions Added: Instructional assistant time at medium elementary schools (45-65 student enrollment) 1. APU high schools and.5 APU options schools for student support services (for example: Counselor, Youth Services Coordinator, Bilingual Liaison) Elementary music teachers 3. APU with the levy Teachers to address extreme class sizes in September 1.5 APU without levy and 27.8 APU with levy CONCLUSION In closing, I want to thank the Internal Budget Team for the significant time and effort they put into crafting this Proposed Budget for This proposal is hopeful and begins the possible return of resources to our schools. I also want to thank our staff and community for their patience and passion during these extraordinary times of challenge. Our collective sense of urgency has been encouraging, and I believe we will set a new financial trajectory for the future of our District. I also want to thank the Budget Committee for their time and attention to reviewing the Budget Proposal and providing an additional opportunity for public input to the process. There are multiple possibilities for our schools next year, and I believe we will continue to move forward and become even stronger. We will consider new paradigms and continue to look for ways to innovate. We must call on our community to work hand-in-hand with us like never before. Together, we can and we will rebuild and reinvest in our Beaverton K-12 school system. Thank you for your consideration of this budget proposal. Respectfully submitted by: Jeff Rose, Ed.D. Superintendent of Schools 17

30 Beaverton School District Summary of Revenues & Expenditures - All Funds $7,, $647,34,774* $6,, $5,, $4,, $541,965,26 $518,566,143 $52,63,95 $486,829,483 $439,272,62 $427,397,357 $539,874,763 $522,127,7 $479,534,157 $499,388,236 $3,, $2,, Budget Revenues Expenditures $1,, $- Actual 29-1 Actual Actual Adopted Budget Adopted Budget Total revenue and expenditures for all funds have declined by $147.9 million from to The most significant changes have been an increase in General Fund due to increased state and local funding for operations, and a decrease in Debt Service for General Obligation Bonds and Capital Project Funds for construction. Over the past five years, all fund revenues have declined by $19.2 million and expenditures have increased by $6.1 million. The areas of greatest change are the General, Special Purpose, Grant, Categorical, Long Term Planning, and Capital Projects funds. * Adopted Budget reflects a bond refunding of $18,361,752 which occurred in August 212. Source: District financial records 18

31 BEAVERTON SCHOOL DISTRICT ALL FUNDS SUMMARY FIVE YEARS ADOPTED BUDGETS Fund Description FYE 21 FYE 211 FYE 212 FYE 213 FYE General Fund $297,355,488 $39,752,796 $326,233,842 $34,276,52 $343,727, Other Funds: Student Body Fund 1,7, 1,7, 1,7, 1,7, 1,7, Special Purpose Fund 1,934,849 2,662,45 3,295,454 5,112,312 5,112,312 Categorical Fund 1,537,62 7,842,24 5,787, 3,852, 2,52, Pension Fund 824,224 1,777,925 2,2,5 1,55,5 Grant Fund 46,46,637 45,721,5 31,726,912 27,585,48 26,46,635 Long-Term Planning Fund 4,633,563 1,991,51 1,63,34 1,642,577 1,747,6 Nutrition Services Fund 13,583,66 13,192,255 14,78,61 16,52,731 16,921,581 Debt Service/Gen Ob Bond Fund 45,441,771 46,764,588 96,43, ,932,915 5,44,937 Debt Service/Lease Purch Fund 1,751,7 2,11,7 1,966,646 1,154, ,613 Debt Service/PERS UAL Fund 1,893,763 11,327,953 11,782,614 12,256,3 12,745,146 Debt Service/29 FFCO 1,288,15 1,58,863 2,19,213 1,838,963 1,653,313 Capital Projects Fund 89,817,715 4,96,178 25,72, 22,592, 18,93, Insurance Reserve Fund 3,622,819 3,676,793 4,14,389 6,36,389 5,136,29 Workers Compensation Fund 2,99,387 2,721,996 2,18,176 1,9, 2,76,14 Printing Services Fund 718, , , 25, 153,766 Scholarship Fund 37, ,33 345,27 4, 4, $541,965,26 $52,63,95 $539,874,763 $647,34,774 $499,388,236 Note: Minor differences are due to rounding 19

32 Beaverton School District Expenditures by Object All Funds Adopted Budget Adopted Budget 38.85% 1.33% 4.39% 1.88% 28.44% 5.29% 15.46% 4.36% 1 - Salaries 2 - Associated Payroll Costs 3 - Purchased Services 4 - Supplies & Materials 5 - Capital Outlay 6 - Other Objects 7 - Transfers 8 - Contingency 1.18% 14.32% 4.53% 7.23% 4.94% 23.42% 3.2% 41.18% 1 - Salaries 2 - Associated Payroll Costs 3 - Purchased Services 4 - Supplies & Materials 5 - Capital Outlay 6 - Other Objects 7 - Transfers 8 - Contingency Note: Adopted Budget for Other Objects (6) includes bond refunding of $18,361,752 which occurred in August 212. Source: District Business Services 2

33 $52,, $515,, Beaverton School District Budget Forecast All Funds $516,355,131 $51,, $55,, $5,, $495,, $499,388,236 $492,967,714 $5,455,57 Revenues Expenses $49,, $485,, $48,, Adopted Budget Projected Projected Projected Although costs continue to increase especially in the area of employee salaries and benefits, the forecast for all funds is declining in due to the spending down of the capital projects fund and debt service funds. The following biennium is projected to increase due to a stronger economic outlook for Oregon. Source: District Business Services 21

34 STUDENT ENROLLMENT HISTORICAL AND PROJECTED The District s adopted budget requirements are based on the number of projected students. State School Funding, the primary source of District revenue, is calculated on the basis of the number and type of students enrolled. The District s budget projection includes an enrollment increase of 32 students from September of 212 with increases at all levels. Student population is expected to increase as the State economy improves. The following graph displays student population for eight years based on actual enrollment as of September 3, each year, and projected enrollment for four years. 4,5 Eight-Year Student Population History & Projections 4, 39,747 (Projected) 39,811 (Projected) 39,984 (Projected) 4,175 (Projected) 39,5 39,427 (Actual) 39, 38,873 (Actual) 39,188 (Actual) 38,5 38, 38,9 (Actual) 37,5 37, Actual enrollment figures are taken from the September 3 Enrollment Summary. 22

35 $35,, Beaverton School District All Funds Salaries & Benefits History and Budget $3,, $25,, $2,, $15,, $1,, $5,, $- Salaries Benefits Total Actual 29-1 Actual Actual Budget Budget A significant increase of funding from the state level and the passage of a local option levy have increased salaries in all funds by 12% from to In the same time period, benefit costs have increased by 17% due to increased costs for health insurance and retirement benefits. Overall, salary and benefit expenditures budget for have increased 14% from the prior year. Comparing costs over the last five years, salaries have increased 5% while benefits have increased 38%. Overall, salary and benefit costs have increased by 15% in the last five years. Source: District Business Services 23

36 $3. $25. $2. $15. $1. $5. $- Beaverton School District Assessed Value of Taxable Property (in billions) Total Assessed Taxable Value (AV) The permanent and local option tax rates are determined by the State of Oregon Constitution and State Statutes. Existing districts cannot increase their permanent rate authority. Local option levies are limited to five years for operations and ten years for capital projects. Elections for local option levies must meet the double majority election test, except in the May and November general elections. Rates for debt services are set based on each year's requirements. $2,, $18,, $16,, $14,, $12,, $1,, $8,, $6,, $4,, $2,, $- Property Tax Levies and Collections Estimated 213 (1) Amounts are based upon the tax collection year July 1 to June 3. Estimated 214 Taxes Levied for the Fiscal Year (1) Total Collections to Date Source: Washington County Department of Assessment Taxation and District financial records 24

37 BEAVERTON SCHOOL DISTRICT DEBT SUMMARY Principal Outstanding Outstanding Original at June 3, at June 3, Interest Issue Date Issue 212 Additions Reductions 213 Rates General Obligation Bonds: November 13, 23 $ 54,78, $ 2,695, $ - $ 2,695, $ % October 21, 24 14,53, 51,785, - 4,695, 11,9, % November 1, 25 49,47, 34,73, - 13,57, 21,16, 5. % January 24, ,9, 147,715, - 129,715, 18,, % April 2, 29 42,81, 3,91, - 1,99, 28,92, % August 25, ,175, 39,785, - 4,595, 35,19, 5. % December 11, ,75, - 33,75, 575, 32,5, % December 11, ,325, - 126,325, 29, 126,35, % 37,62, 159,4, 194,125, 272,895, Limited Tax Pension Obligation Bonds: June 21, ,935, 172,345, - 4,15, 168,195, % Full Faith and Credit Obligation Bonds: March 19, 29 22,65, 21,3, - 855, 2,175, % Total G.O. and Pension Bonds $ 5,995, $ 159,4, $ 199,13, $ 461,265, Payments on the general obligation bonds are made by the Debt Service Fund from property taxes and earnings on investments. Payments on pension bonds are made by the Debt Service Fund from revenue charges to other funds. The payments on the full faith and credit obligation bonds are made by the General Fund and Capital Projects Fund. A bond refunding of $18,361,752 occurred in August of 212. $56,, $54,, $52,, $5,, $48,, $46,, $539,485, Change in Total Debt $5,995, $461,265, $44,, $42,, Debt Outstanding 6/3/11 Debt Outstanding 6/3/12 Expected Debt Outstanding 6/3/13 Source: District Financial Records 25