Camas School District 2021-2022 Budget Overview

CAMAS SCHOOL DISTRICT 2021-2022 BUDGET AUGUST 23, 2021 BOARD ADOPTION Jasen McEathron, Director of Business Services

BUDGET SUMMARY The 2020-21 fiscal year was perhaps the most uncertain in the history of K-12 education. The COVID driven changes in policy and educational practices made 2020 - 21 extremely difficult to forecast. We experienced unprecedent enrollment volatility which had a cascading effect across all elements of the revenue model, state funding, federal grants and local income. On the expenditure side, the certificated staff levels remained fairly consistent based on contracted staffing agreements, but the classified staff were subject to short-term furloughs, and hourly employee costs varied widely across the year as schedules changed. Our expected deficit of over $4M was offset in 2020-21 by state and federal relief. This good news is tempered by the fact our stimulus funding is significantly less than our peers. The Superintendent s Budget Committee met monthly throughout the year, with much of it s work dedicated to budget sustainability for the future. The 2021-22 budget includes a planned use of fund balance of $6.5M, which will leave an ending fund balance of 9.7% of budgeted expenditures. We expect our staffing model will need adjustment in future years to align with our actual enrollment and state funding model. Through the work of the budget committee, we decided on a projected 2021-22 enrollment of 7018 student FTE. This represents a net gain of 3% over our current enrollment, however still below our pre-pandemic levels. Given the high level of new development in our community and the opportunity to welcome back students to full time in person instruction, we believe the 3% increase in enrollment is a reasonable budget parameter. However, from a service standpoint we will be striving to safely welcome back all students in the community and hope to exceed our budgeted enrollment. 2

BUDGET PROCESS Superintendent Budget Committee Stakeholder engagement monthly meetings August 2020 April 2021 Legislative Session Concluded on April 25th with significant updates to relief/stimulus revenues and modifications portions of the apportionment model in response to COVID Preliminary Budget posted by July 10th Legal Notice and Budget Hearing/Adoption August 23rd Board Meeting, Resolution No. 21-01 3

SUMMARY OF BUDGETED FUNDS CAMAS SCHOOL DISTRICT NO. 117 2021-22 BUDGET Capital Capital Projects Projects Fund Fund Associated Associated Student Student Body Fund Body Fund General General Fund Fund Debt Service Debt Service Fund Fund Transport Transport- - Vehicle Fund Vehicle Fund $107.9M $4.0M $12.7M $1.4M $0.7M TOTAL REVENUES TOTAL EXPENDITURES $114.4M $4.5M $11.5M $1.4M $0.9M SURPLUS/(DEFICIT) ($6.5M) ($.5M) $1.3M $.05M ($0.3M) BEGINNING FUND BALANCE $17.3M $7.1M $16.4M $0.9M $1.3M ENDING FUND BALANCE $10.8M $6.6M $17.6M $1.0M $1.0M The School Board approves maximum expenditure levels for each fund 4

GENERAL FUND OPERATIONS & MAINTENANCE 5

GENERAL FUND BUDGET ASSUMPTIONS Enrollment 7,018 FTE (recover half of enrollment loss) New Alternative Learning program Camas Connect Academy (CCA) All other enrollment categories follow same trend Staffing Certificated Staffing: 483.7 FTE (2020-21 FTE: 479) Includes 31 principal and central office cert. admin. positions Classified Staffing: 274.5 FTE (2020-21 FTE: 289) 6

2021-2022 GENERAL FUND BUDGET Revenues $107.9M Expenditures $114.4M Materials & Supplies 4% State-Special Purpose 13% Federal 3% Purchased Services 7% Capital Outlay / Other 2% Local Revenues 3% Levy 16% Benefits 26% Certificated Salaries 45% State-Apportionment 64% Classified Salaries 16% Other Entities 1% Expenditures 11.4% higher than 20-21, which was below normal operation levels due to COVID 87% Personnel Costs 9.7% Ending Fund Balance Revenues 4.3% higher than 20-21 Fed/State relief funds = $1.6M Planned use of fund balance $6.5M 7

OTHER HIGHLIGHTS Fund balance in recent years has seen larger swings than normal due to McCleary and COVID impacts. The 2021-22 Budget would return the fund balance to the previous level of 10%. Revenues will be highly dependent upon enrollment trends. Revenue projection anticipates enrollment will recover to 97% of pre-pandemic levels. The bulk of COVID relief funding has been received. For 2021- 22, budgeted revenues include $1.1M in state apportionment relief funding and $500k in federal relief funding. Unlike most districts, Camas did not receive a large sum of federal COVID relief funding. 8

FUND BALANCE Historical & Projected Ending Fund Balance Historical & Projected Ending Fund Balance $18.0M 16.0% $16.0M 14.0% $14.0M 12.0% $12.0M 10.0% $10.0M 8.0% $8.0M 6.0% $6.0M 4.0% $4.0M 2.0% $2.0M $0.0M 0.0% 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Forecast Ending Fund Balance % of Expenditures 9

ENROLLMENT VOLATILITY Basic Education Enrollment March 2020 to 21 Basic Education Enrollment March 2020 to 21- -22 Budget 22 Budget 7400 7262 7262 7300 7241 7241 7200 7100 7019 7019 7000 6907 6852 6900 6807 68066777 6762 67526787 6786 6782 6782 6800 6700 6600 6500 6400 Mar '20 Sept Oct Nov Dec Jan Feb Mar Apr May June 21-22 Budget FTE Actual FTE Actual Budget Budget 10

FEDERAL/STATE RELIEF FUNDING Budget Year Budget Year Funds Funds Amount Amount Use of Funds Use of Funds 2019-20 ESSER I $333,095 Operational losses 2020-21 Enrollment Stabilization $3,592,068 Operational losses 2020-21 Transport Stabilization $890,729 Operational losses 2020-21 ESSER II $672,000 PPE 2021-22 ESSER III ($1.5M split) $503,000 Learning Loss & Other 2022-23 ESSER III $503,000 Learning Loss & Other 2023-24 ESSER III $503,000 Learning Loss & Other The timing of when relief funds are received could change, however the award amounts are fixed at this time. 11

GENERAL FUND FOUR YEAR PROJECTION 14

4 YEAR BUDGET PROJECTION GENERAL FUND 2021 2021- -22 22 2022 2022- -23 23 2023 2023- -24 24 2024 2024- -25 25 Beginning Fund Balance $17.3M $11.3M $8.8M $8.5M Revenues $107.9M $108.5M $110.0M $110.5M Expenditures $114.4M $111.0M $110.3M $110.1M Margin/(Deficit) ($6.5M) ($2.5M) ($0.3M) $0.4M Ending Fund Balance $10.8M $8.3M $8.0M $8.4M Enrollment 7,018 7,240 7,236 7,178 The planned use of fund balance will enable us to continue educational programming as we determine our future enrollment trend and revenue model. 15

FOUR YEAR PROJECTION ASSUMPTIONS Basic Ed Enrollment = reaching pre-pandemic levels in two years and stable thereafter, which aligns with the demographer s recession model All other enrollment categories stable as well Maintaining sufficient fund balance within the 5%-10% range Regionalization continues to decline 1% annually 16

Capital Projects OTHER FUNDS BUDGETED Debt Service ASB Transp. Vehicle 17

CAPITAL PROJECTS FUND 2021-22 18

DEBT SERVICE FUND 2021-22 Revenue $16.7M Expenditures - $20.7M Interest on Bonds Interest on Bonds 29.0% 29.0% State Forest State Forest 1.1% 1.1% Local Levy & Interest Local Levy & Interest Earnings Earnings 98.9% 98.9% Bond Bond Principal Principal 71.0% 71.0% Debt Service Fund Summary Debt Service Fund Summary Beginning Fund Balance Revenue Expenditure Margin / (Deficit) Ending Fund Balance Ending Fund Balance $19.0M $16.7M $20.7M -$4.1M $14.9M $14.9M 19

ASSOCIATED STUDENT BODY FUND 2021-22 20

TRANSPORTATION VEHICLE FUND We expect to purchase 5 full size Type D and 1 small Type A bus. 21