Financial Update and Objectives Presentation for Education Board by Angie Banks

FINANCIAL UPDATE Presentation to the Board of Education Angie Banks February 11, 2020

FINANCIAL OBJECTIVES Maintain Full Accreditation Align resources to support the District s Transformation Plan 3.0 Five Pillars excellent schools fairness and equity culturally responsive learning environments reading and succeeding community partnerships 1. 2. 3. 4. 5. Build financial stability with a minimum 10% fund balance target per board policy Reinforce a culture of high expectations and accountability

AGENDA FY2019-20 Quarter 2 results FY2020-21 Preliminary Budgets Financial Outlook Next Steps Questions

FY2019-2020 ALL FUNDS Revenues Category FY2019 Actuals (Audited) $308,373,144 FY2020 Budget $305,000,000 $47,862,323 $18,340,344 $27,626,687 $2,585,021 $401,414,375 Quarter 1 $17,140,514 $1,728,751 $100,252 $185,541 $925,306 $20,080,364 $119,163,550 Quarter 2 $98,133,587 $1,523,681 $6,817,092 $11,029,475 $1,659,714 Total $115,274,100 $3,252,433 $6,917,344 $11,215,016 $2,585,021 $139,243,914 Percentage General Operating Budget Federal Food Service Debt Trust Revenues Total 37.8% 6.8% 37.7% 40.6% 100.0% 34.7% $37,483,702 $17,077,509 $28,579,875 $3,465,121 $394,979,352 Expenditures Category FY2019 Actuals (Audited) $292,830,759 FY2020 Budget $299,000,000 $3,300,000 $47,862,323 $18,205,692 $30,069,672 $5,274,755 $403,712,442 Quarter 1 $42,031,627 $468,933 $4,097,887 $53,454 $3,314,588 $1,484,059 $51,450,548 $108,047,757 Quarter 2 $88,925,966 ($468,933) $11,144,008 $7,083,721 $1,378 $1,361,617 Total $130,957,594 Percentage General Operating Budget Desegregation Expansion Federal Food Service Debt Trust Expenditures Total 43.8% 0.0% 31.8% 39.2% 11.0% 53.9% 39.5% $0 $0 $37,482,627 $16,758,833 $31,186,139 $2,966,555 $381,224,914 $15,241,895 $7,137,175 $3,315,966 $2,845,676 $159,498,305

FY2019-2020 GENERAL OPERATING BUDGET (GOB) Revenues Category Original Budget $265,144,300 $3,597,275 $26,619,361 $3,639,064 $299,000,000 FY2020 Budget $271,144,300 $3,597,275 $26,619,361 $3,639,064 $305,000,000 Quarter 1 $10,559,407 $3,712 $6,533,981 $43,413 $17,140,514 $98,133,587 Quarter 2 FY2020 Actuals Percentage $92,727,324 $103,286,730 $14,263 $17,975 $5,239,782 $11,773,764 $152,218 $195,631 $115,274,100 Local Revenue County Revenue State Revenue Federal Revenue Revenues Total 38.1% 0.5% 44.2% 5.4% 37.8% Expenditures Category Salaries Benefits Purchased Services Supplies & Materials Capital Outlay Long and Short Term Debt Expenditures Total Original Budget $151,063,167 $66,536,833 $60,697,897 $18,041,677 $2,610,426 $50,000 $299,000,000 FY2020 Budget $147,914,174 $66,441,275 $57,523,714 $18,568,740 $8,502,097 $50,000 $299,000,000 Quarter 1 $23,044,822 $9,405,131 $4,228,867 $2,631,612 $2,721,195 Quarter 2 $46,689,708 $23,172,117 $13,780,016 $3,697,797 $1,586,327 FY2020 Actuals Percentage $69,734,530 $32,577,248 $18,008,883 $6,329,409 $4,307,522 $0 $130,957,593 47.1% 49.0% 31.3% 34.1% 50.7% 0.0% 43.8% $0 $0 $42,031,627 $88,925,966

FY2020-2021 GOB REVENUE ASSUMPTIONS Local & County Revenue: Assessed valuations/property taxes Sales taxes (deseg + Prop C) No building sales ($1.0M) State Revenues: Basic Formula Transportation High Need Fund (Special Education) ($2.0M) Federal Revenue: E-Rate Medicaid Military reimbursements no change 6

FY2020-2021 GOB REVENUE OPPORTUNITIES Local & County Revenue Higher assessed valuations More economic activity sales taxes Reduced TIFs and abatements Building sales State Revenues Enrollment increase Higher attendance rate Qualified remedial hours Summer School ADA Fewer certificate disallowances Federal Revenue E-Rate Additional Medicaid reimbursements 7

FY2020-2021 PRELIMINARY DISTRICT BUDGET FY2020 Original FY2020 Current FY2021 Preliminary Fund Category Revenues General Operating Deseg Expansion Federal Food Service Capital Debt Trust Total Revenues % Variance 299,000,000 3,300,000 47,862,323 18,340,344 (3,300,000) 27,626,687 1,874,755 $394,704,109 305,000,000 47,862,323 18,340,344 27,626,687 2,585,021 401,414,375 302,000,000 3,300,000 41,500,000 18,000,000 (3,300,000) 27,000,000 1,500,000 $390,000,000 -1.0% 0.0% -13.3% -1.9% 0.0% -2.3% -42.0% -2.8% ($11,414,375) (3,000,000) 3,300,000 (6,362,323) (340,344) (3,300,000) (626,687) (1,085,021) - -

FY2020-2021 FINANCIAL OUTLOOK General Operating Budget Proposed legislation Charter School Funding, Property Taxes Limited Proposed Foundation Formula and Transportation Increases Declining Enrollment Non-Competitive Salaries High Operating Costs Transportation, Utilities, Technology, Maintenance Capital Funds FY2021 Bond Issue? Structural and Academic Inefficiencies 9

NEXT STEPS - PRELIMINARY Community Meetings DATE Saturday, Feb . 29 Tuesday, March 3 Wednesday, March 4 Saturday, March 7 Wednesday, March 11 6-8pm Thursday, March 12 TIME 10am to 12pm Clyde C. Miller, 1000 N. Grand, 63106 6-8pm Vashon, 3035 Cass Ave., 63106 6-8pm Metro, 4015 McPherson, 63108 10am to 12pm Carnahan, 4041 S. Broadway, 63118 Soldan, 918 Union, 63108 6-8pm Roosevelt, 3230 Hartford Ave., 63118 LOCATION 10

NEXT STEPS - PRELIMINARY Superintendent Recommendations Board Meeting March 24, 2020 Public Listening Sessions Board Meeting March 31 & April 2, 2020 Proposed Budgets Board Meeting June 9, 2020 Budget Approval Board Meeting June 23, 2020 11

QUESTIONS?