Bargaining the Budget

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Bargaining the Budget

• Douglas Poole
• Executive Director Administrative Services

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What should we learn today?

• What are we facing?
• Where does a budget come from?
• Simplify a budget-know your capacities
• How does this understanding tie to bargaining?

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What are we facing?

• 7-8 Billion dollar biennial short fall
• Expected cuts to I-728, Math/Science Professional
  development funds, Levy Equalization (Direct
  effect on the classroom)
• Expected cuts to I-732 (Classroom neutral)
• Pension/COLA increasing effecting grant/local
  programs (bow wave)

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What are we facing?
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What are we facing?
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Strategic Plan Cycle
Strategic Plan
Instruction-Operations
Board Policy-Fund Balance
Budget
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Where does the budget come from?RCW 28A.230.020
Common school curriculum.

• All common schools shall give instruction in
  reading, penmanship, orthography, written and
  mental arithmetic, geography, the history of the
  United States, English grammar, physiology and
  hygiene with special reference to the effects of
  alcohol and drug abuse on the human system,
  science with special reference to the
  environment, and such other studies as may be
  prescribed by rule of the superintendent of
  public instruction. All teachers shall stress the
  importance of the cultivation of manners, the
  fundamental principles of honesty, honor,
  industry and economy, the minimum requisites for
  good health including the beneficial effect of
  physical exercise and methods to prevent exposure
  to and transmission of sexually transmitted
  diseases, and the worth of kindness to all living
  creatures and the land. The prevention of child
  abuse may be offered as part of the curriculum in
  the common schools.
• WAC 392-410-115 Mandatory areas of study in the
  common school. (1) Pursuant to RCW 28A.230.020
  all school districts shall provide instruction in
  reading, penmanship, spelling, mathematics,
  geography, English grammar, physiology, hygiene,
  and history of the United States.(2) Pursuant
  to RCW 28A.230.030, unless instruction in a
  language other than English will aid the
  educational advancement of the student, all
  students shall be taught in English.(3)
  Pursuant to RCW 28A.230.130 each school district
  offering a high school program shall provide a
  course of study which includes the preparation
  for uniform college and university entrance
  requirements.

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Where does the budget come from?RCW 28A.230.020
Common school curriculum.

• (4) In addition to the requirements in the above
  subsections, each such school district shall
  offer all required courses for a high school
  diploma as provided in chapter 180-51 WAC and
  shall provide an opportunity for high school
  students to take at least one course in the
  following areas of study (a) Art ( b) Career
  education (c) Computer education (d) Consumer
  education (e) Economics (f) A language other
  than English which may include American Indian
  languages (g) Health education (h) Home and
  family life (i) Music (j) Remedial education,
  including at least, remedial education in
  reading, language arts, and mathematics.
• (5) Districts shall make available to all high
  school students enrolled therein the areas of
  study enumerated above either within the district
  or by alternative means which shall include
  equivalent education programs set forth in this
  chapter, interdistrict cooperative programs as
  permitted by RCW 28A.225.220, and/or the
  full-time or part-time release of such students
  to attend nonresident districts pursuant to
  chapter 392-137 WAC.
• (6) Pursuant to RCW 28A.230.020 instruction about
  conservation, natural resources, and the
  environment shall be provided at all grade levels
  in an interdisciplinary manner through science,
  the social studies, the humanities, and other
  appropriate areas with an emphasis on solving the
  problems of human adaptation to the environment.

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Where does the budget come from?

• WAC 392-410-115 Mandatory areas of study in the
  common school. (1) Pursuant to RCW 28A.230.020
  all school districts shall provide instruction in
  reading, penmanship, spelling, mathematics,
  geography, English grammar, physiology, hygiene,
  and history of the United States.
•      (2) Pursuant to RCW 28A.230.030, unless
  instruction in a language other than English will
  aid the educational advancement of the student,
  all students shall be taught in English.
•      (3) Pursuant to RCW 28A.230.130 each school
  district offering a high school program shall
  provide a course of study which includes the
  preparation for uniform college and university
  entrance requirements.
•   

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Where does the budget come from?
(4) In addition to the requirements in the above
subsections, each such school district shall
offer all required courses for a high school
diploma as provided in chapter 180-51 WAC and
shall provide an opportunity for high school
students to take at least one course in the
following areas of study     (a) Art     (b)
Career education     (c) Computer
education     (d) Consumer education     (e)
Economics     (f) A language other than English
which may include American Indian languages    
(g) Health education     (h) Home and family
life     (i) Music     (j) Remedial
education, including at least, remedial education
in reading, language arts, and mathematics.     
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Where does the budget come from?

• (5) Districts shall make available to all high
  school students enrolled therein the areas of
  study enumerated above either within the district
  or by alternative means which shall include
  equivalent education programs set forth in this
  chapter, interdistrict cooperative programs as
  permitted by RCW 28A.225.220, and/or the
  full-time or part-time release of such students
  to attend nonresident districts pursuant to
  chapter 392-137 WAC.     (6) Pursuant to RCW
  28A.230.020 instruction about conservation,
  natural resources, and the environment shall be
  provided at all grade levels in an
  interdisciplinary manner through science, the
  social studies, the humanities and other
  appropriate areas with an emphasis on solving the
  problems of human adaptation to the environment.

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Where does the budget come from?Board Policy
Fund Balance
The Board of Directors of the Brewster School
District recognize the importance of maintaining
a sufficient fund balance in each one of its
funds to assure sound financial practices,
provide program stability, and obtain excellent
bond ratings. The fund balance in the Debt
Service Fund, Transportation Vehicle Fund,
Capital Projects Fund, and Associated Student
Body Fund is primarily a function of the scope of
the projects and activities found within the
operation of each fund. Stability of revenue
and predictability of expenditures in these funds
enables the district to establish an appropriate
budgeted fund balance. The complexities of
funding and other economic uncertainties in the
operation of the General Fund require a different
approach in setting the fund balance level. Some
of the uncertainties affecting the establishment
of the budgeted fund balance for the General Fund
include Enrollment fluctuations.
Unanticipated changes in tax and appropriation
levels by state and federal agencies.
Legislative mandates having financial impacts on
school systems. Passage/failure of voter
referendums and levies. Financial impacts of
labor agreements including arbitration judgments.
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Where does the budget come from?Board Policy
Fund Balance
It shall be the goal of the district to maintain
a minimum undesignated unreserved operating fund
balance for nonrecurring expenses in the amount
of 2 of anticipated total potential revenue as
established by the Legislature through the State
appropriation process during the budget year
2007-2008. For the budget year 2008-09, this
amount will increase to 4 of anticipated total
potential revenue as established by
the Legislature through the State appropriation
process. The minimum undesignated unreserved
operating fund balance for nonrecurring expenses
will during the 2009 2010 increase and remain
at 5.0 thereafter. The superintendent shall
include this goal in the budget each year in an
amount sufficient to attain this goal as soon as
practicable. If said minimum is not included in
the submitted budget, the superintendent shall
include in the submittal an explanation of why
such an annual contribution to the reserve fund
is not practicable under existing revenue and
expenditures At the end of the fiscal year,
should the projected annual undesignated,
unreserved operating fund balance for
nonrecurring expenses be below 2, the board
could declare a state of financial emergency.
The declaration of a financial emergency
would authorize the superintendent to take
measures necessary to restore the undesignated,
unreserved operating fund balance to the minimum
level, without significantly affecting the
education of students.
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Where does the budget come from?Board Policy
Fund Balance

• Budget Implementation
• The board places responsibility with the
  superintendent for administering the operating
  budget, once adopted. All actions of the
  superintendent in executing the programs and/or
  activities as set forth in the adopted operating
  budget are authorized subject to the following
  provisions
• Funds held in reserve accounts with a minimum
  amount of 5 of appropriated expenditures
  (General fund 810-890) for self-insurance and
  other such contingencies may not be expended
  unless approved for purposes designated by the
  board

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Budget 2008 Target ModelProgram
PrioritiesEastmont School District No.206
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School Programs

• Compulsory Programs/Positions
• ?
• ?
• ?
• ?

• Accreditation Required Grant Funded
  Programs/Positions
• ?
• ?
• ?
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• Optional Instructional Operational Support
• ?
• ?
• ?
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• Operational Support/Positions
• ?
• ?
• ?
• ?

• Non-mandatory
• Co-curricular
• ?
• ?
• ?
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Where does a budget come from?
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Where does the budget come from?Priority Matrix
Non-Academic Support Extracurricular Arts Music
Band Recess Support After school
programs Transportation
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Where does the budget come from?

• Takeaways
• Fund Balance Policy State Auditor Finding
• Performance audit Can the budget be tied to a
  strategic plan
• Buy in from stakeholders
• By product successful levy

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Understanding/Explaining the Budget

• What do we hear about our budgets?
• Complicated
• Hiding money/capacity (padding utilities)
• Whos priorities are these?
• Other examples???

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CASHMERE SCHOOL DISTRICT No. 222 RUN DEC 04, 2008
_at_ 1505 SUMMARY OF GENERAL FUND BUDGET (1) (2)
(3) Actual Budget Budget 2006-2007 2007-2008
2008-2009 REVENUES AND OTHER FINANCING
SOURCES 1000 Local Taxes 1,366,887 1,425,547
1,475,675 2000 Local Support Nontax 281,088
242,002 254,250 3000 State, General Purpose
7,051,726 7,451,826 7,984,761 4000 State, Special
Purpose 1,683,828 1,825,655 1,901,372 5000
Federal, General Purpose 137,530 130,000
130,000 6000 Federal, Special Purpose 893,034
875,768 840,780 7000 Revenues from Other School
Districts 0 0 0 8000 Revenues from Other Entities
0 320,000 224,962 9000 Other Financing Sources 0
0 0 A. Total REVENUES AND OTHER FINANCING SOURCES
11,414,091 12,270,798 12,811,800 EXPENDITURES 00
Regular Instruction 6,037,402 6,076,203
6,713,221 20 Special Education Instruction
883,162 972,728 934,693 30 Vocational Education
Instruction 711,592 607,612 662,779 40 Skills
Center Instruction 0 0 0 5060 Compensatory
Education Instruction 1,261,534 1,350,234
1,277,543 70 Other Instructional Programs 300,998
623,597 581,306 80 Community Services 0 0 0 90
Support Services 2,304,106 2,586,974 2,628,315 B.
Total EXPENDITURES 11,498,791 12,217,348
12,797,857 C. OTHER FINANCING USES-TRANSFERS OUT
(G.L. 536) 1/ 0 37,000 0 D. OTHER FINANCING USES
(G.L. 535) 2/ 0 0 0 E. EXCESS of REVENUES/OTHER
FINANCING SOURCES OVER (UNDER) EXPENDITURES AND
OTHER FIN. USES (A-B-C-D) 84,700- 16,450
13,943 1/ G.L. 536 is an account that is used to
summarize actions for other financing
uses-transfers out. 2/ G.L. 535 is an account
that is used to summarize actions for other
financing uses such as long-term financing and
debt extingishments. Nonvoted debts may be
serviced in the Debt Service Fund (DSF) rather
than in the fund that received the debt proceeds.
In order to provide the resources to retire the
debt, a transfer is used by the General Fund,
Capital Projects Fund or Tranportation Vehicle
Fund to transfer out resources to the DSF. Refer
to Page DS3 for detail of estimated outstanding
nonvoted bond detail information. FORM SPI F-195
(Rev. 9/08) GF2
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Understanding the Budget

• Pitfalls/Cautions
• Program/Person is tied to revenue
• Current Example I-728 funding
• Memory what revenue pays for a program???
• Confusion/Interpretation of funding formulas,
  models, mandates

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School House in a spreadsheet
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Understanding the cycle as it relates to
bargaining

• Planning (Strategic Plan) drives
• Policy
• Budgeting
• Instruction/Operations
• Bargaining
• Bargaining is not Planning
• Bargaining is not Budgeting Know your
  capacities

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Bargaining the Budget

• Questions
• Douglas Poole, Executive Director
• 509-665-2643
• dougp_at_ncesd.org