CKSD 2011-12 Budget Development
Frequently Asked Questions
Why are budget reductions necessary for next year?
Based upon initial state budget proposals, we could be required to reduce up to
$2.2 million from our $113.9 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 2011-12 in the meantime.
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 budget 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.
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 2008-09, 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.
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
Will All Day Kindergarten (ADK) be cut?
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.
Are the RIFs (pending/potential)
certificated and classified?
Reductions of both certificated and classified staff are possible. Attrition may
reduce the impact of these reductions.
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
Our 2009-10 ending fund balance as of August 31, 2010, was $11.5 million. 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), 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 committed minimum fund
balance. 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 $3.4
How can CKSD be hiring additional
staff for Capital Projects when we have other staff that might lose their jobs
or are having positions and resources reduced?
When the Capital Projects Levy
passed, that brought $89 million into the Capital Projects fund. These
resources cannot be used for day-to-day operations of the school district, but
are programmed to specifically pay for those facility projects in the Long Range
Capital Projects Phase One plan and replacement technology. As a result, we have
posted one position for a Capital Projects manager and will have other positions
that will need to be posted in the next 2-12 months. These positions are paid
for out of Capital Projects funds and any current staff member who is qualified
may apply for these positions. When the positions are no longer needed for the
CPL projects, those positions will be reduced or eliminated unless Phase Two is
funded by another Capital Projects election.