CKSD 2010-11 Budget Development
Frequently Asked Questions
1.
Why are budget reductions necessary for next year?
Based upon initial state budget proposals, we could be required to reduce up to
$4.3 million from our $115 million budget. We will not know the full extent of
our budget shortfall until the final state budget is released. However, we are
continuing to develop possible budget options for SY 2010-11 in the meantime.
2.
The levy just passed, so why are reductions still required?
Many programs and positions are currently supported by our local levy, and the
renewal of our school support levy in February was a significant benefit to all
of us. However, we expect the state to make even further reductions to K-12
education, in addition to the across-the-board cuts made over the last several
years. The increased levy amount will help to minimize our shortfall for the
2010-11 school year, but having our levy in place will still not eliminate the
need for budget reductions.
3.
How much weight does my feedback carry in the decision making process?
Feedback from all stakeholders remains an essential part of our decision making
process. The feedback and input from these meetings will be reviewed and
considered by the Budget Development Team, the Community Finance Committee and
Task Force Resource Steering Committee in working with the Superintendent to
provide options for possible reductions to the budget.
4.
Would it be possible to provide savings by merging with surrounding Districts?
If all four local Districts (South, North, Central and Bremerton) were merged,
we would be about the size of Seattle School District. This question has been
asked a number of times over the years, and the same answer applies. Districts
with the lowest cost for Central Administration are those between 5,000 and
20,000 students. Each of the four districts within Kitsap County is inside those
numbers. Seattle’s Central Administration costs are significantly higher than
those of CKSD. As a matter of fact, in 2007-08, CKSD was the lowest of the
Kitsap County school districts regarding administrative costs. Consolidating
districts may eliminate multiple superintendents. However, additional
administrators would be added to a single Central Office to manage a large
Seattle-School-District-like student and staff population over a much more
widely dispersed geographic area resulting in a number of additional challenges.
The fact is a larger school district generally has higher administrative costs.
If merged, and if CKSD provided county-wide K-12 leadership (as an example),
costs for Central Administration would increase and we would take on the debt of
other districts, no longer qualify for Federal Heavy Impact funding, and have
less local control through fewer school boards. In this scenario, there would
be less funding for student programs and staffing.
5.
When will staff be notified if a RIF will be necessary?
Affected staff will be notified as soon as possible regarding a possible
Reduction in Force (RIF). The deadline for RIF notification for certificated
staff is May 15 (pending completion of the legislative session). Classified
staff has no required specified timeline. All groups will be notified as soon as
possible.
6.
Should we have closed a secondary school to save money rather than just adjust
boundaries?
This question was reviewed last year, and it was determined that we did not have
enough space to move ahead with 9-12 high schools, which was the preferred
organization structure. It was also decided that during the 2010-11 school year
we would need to review this information for a possible adjustment. Our
enrollment has declined considerably this year and been erratic in following any
previous pattern. There are additional implications including slow kindergarten
enrollment for 2010-11, possible impact of a second aircraft carrier ported at
PSNS and a challenging economic environment.
7.
What is our plan for dealing with 6-12 math materials?
During the 2009-10 school year, 6-12 math was reviewed by the Curriculum
Department in conjunction with building level math teachers and building
administrators. We have fallen significantly behind in refreshing our
instructional materials throughout the District. Reductions the past three years
have left this budget with “bare bones” dollars. The needs of students and staff
to support the 6-12 math programs are significant given our students’ futures.
Selection of materials and possible implementation schedules inside our current
budget resources are being reviewed and considered.
8.
Will All Day Kindergarten (ADK) be cut district-wide or at certain schools?
Decisions on ADK will be part of the budget process. Reduction or elimination of
ADK will increase transportation costs, impact student achievement, reduce
elementary enrollment and decrease Heavy Impact Aid funding. Tuition-based ADK
can continue to be offered regardless of the final budget decision.
9.
What about the federal stimulus education dollars? Are we getting or trying to
get some of this funding?
The stimulus funding for this next year (“Race To The Top”) requires certain
criteria to apply as a state. There is a bill in the legislature which may
address this. Individual districts may apply under certain circumstances. CK is
exploring grant opportunities from several sources, though grants rarely provide
long term relief and potentially increase costs due to in-kind contributions,
paperwork and other restrictions. We continue to work diligently to maximize our
revenue at all opportunities without increasing or risking our current funding.
10.
Will there be a rank order
(seniority) list sent out to everyone?
Current seniority lists are available to staff on the
SharePoint site:
Certificated In-District Seniority List 2009-2010
Certificated Categorical Seniority List 2009-2010
Classified Seniority List 2009-2010
11.
Who can staff call with concerns or
to get answers to concerns about staffing?
Human Resources has and will continue to answer questions for staff. Task Force
Resource updates will be provided regularly and posted on the website for
review. Meetings will be available for staff and community as we move through
the process.
12.
Are the RIFs (pending/potential)
certificated and classified?
Reductions of both certificated and classified staff are possible. Attrition
will reduce the impact of specific job reductions. Last year, there were
reductions in classified positions, hours, days and staff. Certificated
reductions have been managed in the past through attrition and reassignment,
which will likely not be enough this year.
13.
What is an ending fund balance? Do
we have 11 million dollars in reserve now?
An ending fund balance is much like your personal monthly bank statement, a
snapshot in time. As is common for most people, that balance includes your
checking, short-term savings and emergency funds. Your checking account may be
currently allocated; you may have short term, planned savings (car repairs, new
purchase, etc.) along with extra cash for emergencies. This is very similar to
the District ending fund balance. The ending fund balance is divided into three
parts:
Our 2008-09 ending fund balance as of August 31, 2009, was over $11 million
dollars. Part one of this ending fund balance, over $4 million, was for
earmarked accounts. That total included $1.4 million for required funds that
must be carried forward (I-728, LAP, 1128 science and math), over $1 million for
insurance and inventory that we are required to maintain so that we can purchase
inventory ahead of time and spend budgets forward, and finally over $2 million
for carryover accounts including shared decision making funds, Training and
Incentive Program (classified staff), building budgets, etc. We have committed
to carryover these budgets to provide flexibility, improved decisions and
thoughtful use of scarce resources rather than an environment which encourages
spending just to keep from returning funds to the General Fund. This part of the
ending fund balance is similar to a checking account in which funds are already
allocated but not yet expended.
The second part of the ending fund balance is the Federal Contingency
Reserve (FCR). We have had an FCR since 2002-03 to match the amount of Heavy
Impact funds allocated to the General Fund. Heavy Impact funds are not
guaranteed and do not come to the District until April or May of each year. Over
the years, the amount of Heavy Impact funds placed in the General Fund has
increased from 0 to over $4 million. The FCR is intended to match the amount of
Heavy Impact funds that we will spend in the General Fund that year. This allows
us to have those funds at the beginning of the year in order to meet all the
obligations throughout the entire year regardless of when, or if, the Heavy
Impact funds arrive. It also provides us the resources to maintain a positive
cash flow. Our monthly payroll is over $8 million and our monthly bills are over
$1 million. Total monthly expenditures are just under $10 million. The FCR is
like a savings account that you maintain to save for a specific annual bill (car
repair, insurance, purchase of a new car or appliance). CKSD is the only
district in Washington state receiving Federal Heavy Impact funding.
The third portion of our ending fund balance is our undesignated, unreserved
amount. This is the “reserve” for emergencies for the District. If enrollment is
down from budget, the state reduces funds during the school year, or we have
unforeseen circumstances that come our way, this enables us to manage those
challenges without impacting students and staff during the school year. We carry
a 3% reserve (3% of anticipated revenue). Our 3% reserve is almost exactly $3.5
million.
14.
How many certificated and classified
positions have been reduced since 2005-06?
The following reductions do not include the closure of the two elementary
schools and are specific position reductions since 2005-06:
Classified
10.5 FTE/479.7 FTE = 2.18%
Certificated
11.2 FTE/708.7 FTE = 1.57%
Administrators
4.4 FTE/55.9 FTE = 7.87%
15.
Which
administrative positions have been cut?
Capital Projects Manager
Community Schools Director
Custodial Supervisor
Director of Research and Evaluation
District Athletic Director (combined with CTE Director)
16.
If the District is potentially
cutting up to 70 staff positions, how many of these would be administrative
positions?
The reduction numbers intended for the legislature were generated to illustrate
the worst case impact of all the proposed state reductions, including all
reductions related to I-728 funding. The District has taken none of the
allowable indirect charges from these funds. No administrators were hired with
these funds and none were included with the information to the state legislators
for possible reductions. Administrative position reductions, salary reductions
and professional development reductions have been taken, and we already staff
less administrative units then we are funded.
17.
Where are federal stimulus dollars (ARRA)
for special education being used?
Half (50%) of ARRA funding can be (and is being) used to offset the additional
District-level costs of providing special education services. The other 50%
provides additional new special education positions, one-time training,
computers and software. The Special Services Department can provide additional
information on the plan for these funds, which will be available only for the
2010-11 school year.
18.
What effect will the final state
budget have on CKSD?
It will take some time before CKSD will have the complete answer to this
question. Both the House and Senate did pass a budget and the governor will need
to sign the budget. Once this occurs, the Office of Superintendent of Public
Instruction (OSPI) typically takes 5-7 days to process
the state budget numbers and will then pass this information on to local school
districts. Currently, OSPI is scheduled to deliver this information to districts
on April 19. At that time, CKSD can process the final OSPI numbers and translate
what the local impact will be for Central Kitsap School District.
19.
Is the $100 million figure bigger or
smaller than the District was expecting?
This figure is at the lower end of the budget shortfall range, so we
anticipate our original estimate of a $4.3 million budget shortfall will be
closer to $3 million.
20.
Will CKSD hold any future meetings
to explain the final budget to the public?
We have been collecting information and involving the community
regarding the budget development process all year with surveys and community
meetings. This fall, the District conducted a random sample survey with District
residents to collect budget development information. During the winter an online
budget survey was used to gather information from staff, students and community
members. This spring, four community budget meetings were held to gather
additional input regarding the budget development process in conjunction with an
additional budget survey. We will continue to communicate in a fair thorough and
transparent manner with parents, staff and community members. All meetings
pertaining to the development of the final budget are open to the public. This
includes study sessions and board meetings scheduled for April 19 and 28.
