Seattle Public Schools Budget and August 1, 2018 Budget Outlook and McCleary - Budget deficit is projected beginning in school year 2019?20 - McCleary legislation did not result in more revenue or enough revenue to maintain status quo Major areas of underfunding include: Special education - Classified staff and principals salaries School staffing (other than K-3 class size) Seattle Times July 31, 2018 Budget Outlook Summary For School Years 2018-19 through 2021-22 All numbers are estimates as of May 2018 (Sin millions) $1030 568.1 $1000 9 Deficit $980 ma! $45 4 Revenues Surplus 555'? Deficit $43.8 $962.0 De?cit Total 59443 M, Revenues $930 Total $927.1 M, Revenues Total Revenues 5880 5830 2018-19 2019-20 2020-21 2021-22 Seattle Times July 31, 2018 Notes 1. Assumes a 3% growth in expenditures per year, with staf?ng and programming held constant. Surplus is result of increased state property taxes along with higher levy through calendar year 2018. Staffing allocations vs. spend Certificated Instructional Staff (Teachers) No Remaining Gap in State Basic Ed (Program 01) Funding (S in millions) $350 - Total Pro'ected Cost Total Proiected C?5t Total Projected Cost Total Projected I $321.5 Total Projected Cost $304.9 Surplus $310.1 Surplus, 5315-3 $300 $283.5 $0.5 . 52,1 . $250 $200 $150 $100 $217.8 $50 50 2017-18 2018-19 2019-20 2020-21 2021?22 State funding includes 1 professional development day beginning 2018-19, 2 days beginning 2019-20, and 3 days beginning 2020?21 . Numbers may not total due to rounding Seattle Times July 31, 2018 Surplus, $3.7 Surplus, Holding 17?18 Expenditure I SPS Levy I State Funding Certificated Instructional Staff (Teachers) Remaining Gap in State Funding (S in millions) $500 . Total Projected Cost Tatal Projected Cost Total Cost Total 50? $450 Total Projected Cost $419.7 $426.9 - $395.1 $400 I SPS Levy I State Funding $350 $300 $250 $200 $3703 $3745 $3833 $3902 $150 $2640 $100 $50 $0 2017?18 2018-19 2019-20 2020-21 2021-22 Includes Basic Education, Special Education, Bilingual Education, CTE, Skills Center, other Instructional Programs, and NBCT bonus. State funding includes 1 professional development day beginning 2018-19, 2 days beginning 2019?20, and 3 days beginning 2020-21 . Numbers may not total due to rounding Seattle Times July 31, 2018 Certificated Administrative Staff (Principals) - Remaining Gap in State Funding (Sin millions) $50 - Total Pro'ected Cost $45 Total Projected Cost Total Projected Cost T?tal Page?" Go? 513 3 Total Projected Cost 540-9 $413 I 540 538.1 $35 $30 I SPS Levy 525? I State Funding 20 5 $36.4 $37.1 $37.8 $38.5 $15 $10 $21.5 $5 $0 2017-18 2018?19 2019?20 2020-21 2021?22 Certi?cated Administrative Staff provides administrative support services to schools and includes: Superintendent; Deputy, Associate and Assistant Superintendents; School Principals and Assistant Principals; certain Directors, Executive Directors and other senior leaders. Numbers may not total due to rounding Seattle Times July 31, 2018 Classified Staff Remaining Gap in State Funding (Sin millions) $200 Total Projected Cost Total Projected Cost Total Projected TOtal Total Projected Cost $177.7 $180 $171 3 $174.7 $156.9 $160 $140 $120 I SPS Levy 5100 I State Funding $80 $50 $40 $32.1 $83.5 $84.9 $86.4 $61.5 $20 50 2017-18 2018?19 2019~20 2020-21 2021-22 Classified staff provides support services to schools and include: school secretaries and clerical staff, aides, maintenance and custodial staff, central clerical and professional staff, school security, program managers and directors, deputy and assistant superintendents. Numbers may not total due to rounding Seattle Times July 31, 2018 Special Ed (Program 21) - Remaining Gap in State Funding for Staff (5 in millions) Total Projected Cost, $138.5 Total Projected Cost, Total PI'OJected 5140 Total Prejected Cost, $130.6 51345 Total Projected Cost, 5125-3 117.5 5120 5 $100 $80 I SP5 Levy I State Funding $60 $40 $68.7 $70.0 $71.4 $0 2017-18 2018-19 2019-20 2020-21 2021-22 Special education services fall within the state?s de?nition of basic education. While the new budget provides additional state funding, a gap remains to cover the full cost of special education services. Numbers may not total due to rounding Seattle Times July 31, 2018 2017-18 Benchmarking Central Admin of Total District General Budgeted Total Fund Budget Spent on Enrollment Central Admin Seattle 54,512 6.0% Spokane 30,235 4.8% Tacoma 28,380 7.3% Kent 27,184 5.6% Lake Washington 30,475 4.6% Highline 19,543 6.2% Bellevue 20,611 6.2% SOURCE: F195 and Financial Services Data Base?Microsoft Access FY 2017-2018 F195 Budget (Updated 1/30/18) Seattle Times July 31, 2018 Seattle Public Schools Levy 6362 vs. No Formula Change (Sin millions $298m in Total $292m in Total $300 $269m in Total $250 $240m in Total $200 I No Change I 6362 $150 $100 $50 $0 2017-18 2018-19 2019-20 2020-21 2021-22 The maximum amount the SPS can collect from voters in levy elections for calendar year 2018 is set by the Legislature to a percentage of our state and federal revenue. Beginning calendar year 2019, the maximum amount is changed to student enrollment multiplied by $2,500. The $2,500 per student amount is increased for in?ation in subsequent years. Seattle Times July 31, 2018 11 $4,500 $4,000 $3,500 $3,000 Per Pupil Revenue $2,500 $2,000 $1,500 Operations Levy District Comparison 2017-18 to 2019-20 $4,099 $3,175 -38.5% Seattle $2,520 $2,283 -11.7% Bellevue 2? 04 9 -10.3% Lake WA 2017-18 2018-19 2019?20 +Seattle Public Schools +Bellevue +Lake Washington Seattle Times July 31, 2018 12 Basic Education is NOT Fully Funded Here are some (not all) areas that are not fully funded Special education, $2,500 gap per pupil statewide - Gap in classified and certificated admin principal) compensation - Nurses state allocates 9 - Family Support Workers - state allocates 6 - Counselors state allocates 39 for elementary schools - Social workers state allocates 3.7 - state allocates 1.5 - Custodians state allocates 226 - Lower class sizes for grades 4 thru 12 state allocates 27:1 for grades 4-6 - Principals/Asst. Principals state allocates 163 March 26, 2018 presentation to Seattle City Council 13