2015-16
Budget
All Students Learning Well
CENTRAL KITSAP SCHOOL DISTRICT
Kitsap County
Silverdale, Washington
Introductory
Section
funded for all schools except Brownsville and Emerald Heights. Brownsville and Emerald
Heights will be funded in the 2016-17 school year. K-3 class size is reduced and Central Kitsap
School District will have four schools qualify for high poverty funding in the 2015-16 school
year. The state also provided additional funding in Materials, Supplies, and Operating Costs
(MSOC).
Central Kitsap School District is seeing additional funding from the state as noted above, but due
to continued declining enrollment, there will be a loss of some revenue. The net effect is
additional revenue which can be used to provide funding to budget
adjustments/recommendations.
Budget Recommendations
The following budget recommendations will balance the 2015-16 school year budgets.
1. Increase Curriculum’s Instructional Materials budget $600,000 to support
instructional, textbook and supplemental materials in the classroom.
2. Continue all efforts to maintain eligibility for federal Heavy Impact Aid
funding.
3. Increase the General Fund budget $1,177,000 by making the changes outlined in the
2015-16 Recommended Line Item Budget Adjustments as noted below:
Description Maintenance MSOC/Equipment
Intervention; (w/waiver dependent)
Co‐Curricular District Assessment: Fully fund Star K‐9
Custodial Support Fund all PSAT (10th Grade) Total Budget Line Items to Fund
Board Goal
4
1
2
1
4
1
2
Funding Amount $ 400,000
$ 200,000
$ 400,000
$ 87,000
$ 80,000
$ 10,000
$ 1,177,000
Enrollment
Enrollment projection updated Summer 2015
Long Range Enrollment (FTE)
11,400
11,200
11,185 11,090 11,000
10,942 10,800
10,732 10,688 10,600
10,536 10,771 *
10,734 10,701 10,691 10,648 10,643 10,546 10,400
10,200
10,000
09‐10 10‐11 11‐12 12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 20‐21 21‐22
Increase due to All Day Kindergarten funding
* BR and EM ADK funded
Central Kitsap enrollment peaked at an average Full Time Equivalent (FTE) of 13,051 during the
1998-99 school year and has been declining steadily since the 2001-02 school year. The
enrollment decline is forecast to continue into the near future, through 2017 and then level out in
2018. What appears to be an increase in enrollment is due to state funding for all-day
kindergarten.
Total projected Full Time Equivalent (FTE) enrollment for 2015-16 is expected to be 10,731.5
students; (or 2.96%) more than the average FTE for the 2014-15 school year. Beginning in the
2015-16 school year, Central Kitsap School District will receive state funding for 10 out of 12
elementary schools for all-day kindergarten. As such, these Kindergarten students can be
counted as a 1.0 FTE rather than the previous 0.5 FTE. In 2014-15, actual FTE was above
budgeted FTE by 123. Enrollment for 2015-16 has been estimated conservatively.
The impact of enrollment on the General Fund is significant. A close review and monitoring of
our enrollment will help to maintain staffing and fiscal capacity throughout the school year.
3
General Fund Revenue
Federal, Special Purpose, 6.81%
2015‐16 Revenue
Federal, General Purpose, 2.64%
Local Taxes, 16.16%
State, Special Purpose, 13.54%
Local Non‐Tax, 3.73%
State, General Purposes, 57.11%
Local sources decreased to 19.89% of total revenues as compared to 20.24% last year. State
apportionment increased to 70.66% of total revenue as compared to 69.04% last year. Federal
sources decreased to 9.45% of total revenue as compared to 10.73% last year.
Capital Projects Fund Summary
The Capital Projects budget for 2015-16 begins the fifth year of Phase One of the Long Range
Facilities Master Plan. The community supported passage of the Capital Projects Levy (CPL) in
February 2011 that will continue funding through 2016. The 2015-16 budget includes projects
delayed from 2014-15 and delays some original 2015-16 projects to the 2016-17 school year.
This delay is the result of lost Heavy Impact funds directed to Capital Projects. All projects in
Phase One will be completed. But, without all of the Heavy Impact funds, cash flow restrictions
will require completion of some projects in 2017.
Revenue from the Capital Projects Levy ($12,155,817), state funding assistance for Silverdale
Elementary ($500,000), and revenue from the return of Heavy Impact Aid funding make up the
majority of Capital Projects revenue for the year. Our estimated beginning fund balance is
$21,100,000 and anticipated potential expenditures are just over $23,000,000.
Associated Student Body Fund Summary
The ASB Fund is financed by fees collected from students and non-students attending optional
non-credit extracurricular events, donations, and fundraisers. By law, the School Board approves
an ASB budget for each school. Accounting records are kept for each ASB. Disbursements are
made with the approval of the ASB and School Board. No major changes to the ASB budget are
anticipated.
4
Transportation Vehicle Fund Summary
The District’s Transportation Vehicle Fund is used to account for the financing and purchase of
new school buses. The cost of operating and maintaining school buses is accounted for in the
District’s General Fund. The goal of the District’s Bus Purchase Program is to receive full
reimbursement from the state by replacing all of the District's fully depreciated buses.
5
Budget Summary
And Resolution
Levy Rates
$6.000
Projected
$0.632
$5.000
$4.000
$2.832
$2.797
$2.777 $2.731
$2.648
$3.232 $3.312 $3.278
$3.075
$2.397
$2.852
$3.000
$2.013
$2.160
$1.920
$1.803
$1.927
$2.000
$2.620
$2.519 $2.486
$2.397 $2.456 $2.389
$1.000
$2.187
$1.782
$1.761
$1.475
$1.869 $1.925 $1.901 $1.939
$1.437
$1.319 $1.343
$0.493
$0.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Capital Projects Bond/Levy
School Support Levy
Supplemental Levy
NOTES:
1. The rates for 2016 are projected based on a 4% increase in total property valuation for 2016.
2. Levy rates are expressed in dollars per $1,000 of assessed valuation.
CHART EXPLANATION
The bar chart above includes the Capital Projects levy rate per $1,000 (bottom black bar), the School
Support Levy rate (middle transparent bar) and the Supplemental School Support Levy rate (top dot bar).
The total dollar rate per $1,000 for the levies has gradually decreased from $5.35 in 2000 due to increased
assessed value (AV). Rates are climbing as AV declines and as a result of the Capital Projects Levy and
the Supplemental Levy.
12
General Fund
Budget Summary
Central Kitsap School District
UNRESERVED FUND BALANCE HISTORY
COMMUNITY FINANCE COMMITTEE RECOMMENDATION
The District shall in crease the committed minimum fund balance from 3% to 5% of the District's budgeted expenditures by 2019-2020.
GENERAL FUND BALANCE
Reserved
Nonspendable FB: Inventory/Prepaid Items
Actual
Actual
Budget
Budget
2012-13
2013-14
2014-15
2015-16
514,380
485,680
485,680
650,000
0
0
0
0
2,271,475
2,553,224
2,469,922
2,561,270
Assigned to Contingencies - Insurance
0
230,000
750,000
750,000
Restricted for Self-Insurance
0
0
0
175,750
Unassigned Fund Balance
0
24,680
3,233,575
3,414,441
3,780,000
4,287,980
6,019,430
6,708,025
7,485,602
8,675,000
110,556,152
115,947,563
115,157,552
127,157,812
0
0
0
0
543,383
164,591
235,810
1,559,812
117,118,965
122,820,179
122,878,964
137,392,624
(110,410,940)
(115,007,831)
(116,838,694)
(129,518,561)
Federal Contingency Reserve
Assigned FB - Carryover Balances
Committed to Minimum Fund Balance Policy
Beginning Balance
Add:
Revenues
State Energy Grants
CPF Levy Operating Trxfr (Tech)
Total:
Funds Available
Less:
Expenditures
Operating Transfers
Capital Projects (Energy Grant)
Actual Estimated Ending:
Fund Balance
Less:
Nonspendable Fund Balance - Inventory
0
0
0
0
6,708,025
7,812,348
6,040,270
7,874,063
(485,680)
Federal Contingency Reserve
Assigned to Other - Carryover Balances
Assigned to Contingencies - Insurance
Total:
Committed Minimum Fund Balance
(614,819)
0
(2,553,224)
0
(2,794,261)
(230,000)
Restricted for Self-Insurance
Unassigned Fund Balance
250,000
3,414,442
0
(1,476,428)
0
(120,422)
(24,680)
(485,680)
0
(1,435,333)
(750,000)
(175,750)
(249,522)
4,033,324
(650,000)
(175,750)
0
3,902,412
4,862,980
COMMITTED FUND BALANCE CALCULATION
Budgeted Expenditures
Required Minimum Committed Fund Balance: 3%-5% of Budgeted Exp.
113,814,713
115,237,830
116,838,694
129,518,561
3,414,441
4,033,324
3,902,412
4,862,980
Percent of Budget Expenditures to Committed Minimum Fund Balance
3.00%
15
S:\Budget\Budget Development\15-16\15-16 Summaries.xlsxFund Balance
3.50%
3.34%
3.75%
CENTRAL KITSAP SCHOOL DISTRICT
Comparison of Annual FTE Enrollment
12500
12,276
12,079
12000
11,732
11,508 11,458
11500
11,184
11,090
10,942
11000
10,732*
10,688
10,536 10,546
10500
10000
9500
2004-05
Actual through 2014-15
*Projected for 2015-16
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
18
S:\Budget\Budget Development\Enrollment Projections\15-16\15-16 Enrollment Projection & Graph.xlsx
General Fund
Revenues
Central Kitsap School District
District Revenue by Source
Where Does the Money Come From to Operate Your Schools?
Local Taxes – 1XXX (Levy) - The local maintenance and operations levy provides 16.16% of
budgeted revenues. Levy amounts are capped by the legislature and must be approved by Central
Kitsap School District voters at a special election held every fourth year.
Local Non-Tax – 2XXX (Fee Programs) - The local non-tax funds comprise 3.73% of revenues and
are generated from fee programs such as sales of school lunches and building rentals. Also
included are investment interest earnings.
State, General Purpose – 3XXX (State Apportionment) - The largest portion, 57.11%, of the
Central Kitsap School District’s general fund revenue comes directly from the state in the form of
“apportionment,” otherwise known as “state general purpose funding.” The amount is determined by
the number of students attending our schools and a series of formula factors including legislativelyset base salaries, employee benefits, and non-labor allocations, as well as the collective education
and experience of our teachers.
State, Special Purpose – 4XXX (State Categorical) - Another source, 13.54%, of funds comes from
the state as categorical funds for programs such as special education, pupil transportation,
transitional bilingual education, learning assistance and educational enhancements. Most of these
revenues are given for a specific program and are not available for other purposes.
Federal, General Purpose – 5XXX (Federal Impact Aid Funds) - These federal funds are
authorized by law and allocated to the District based on the number of students whose parents
either work or live on federal property. These funds comprise 2.64% of revenues and are used for
District-wide basic education programs, with the exception of funds received for special education
students, which are directed to the special education program.
Federal, Special Purpose – 6XXX (Federal Categorical Funds) - Federal categorical funds
comprise 6.81% of the District’s revenues. These monies fund programs such as Title I and Head
Start. They also provide supplemental funding for special education programs and support free and
reduced lunches in the food service program. These revenues may only be used for their specific
program purpose
Federal, General Purpose, 2.64%
Federal, Special Purpose, 6.81%
2015‐16 Revenue
Local Taxes, 16.16%
State, Special Purpose, 13.54%
Local Non‐Tax, 3.73%
State, General Purpose, 57.11%
.
S:\Budget\Budget Development\15-16\District Revenue by Source.docx
19
Budgeted Revenue By Source
Actual
State
Average
Central Kitsap School District
Actual
2012-13
Actual
State
Local
Federal
Total
Budget
2013-14
Actual
2014-15
Budget
2015-16
Budget
2013-14
Actual*
66.03%
22.31%
11.66%
67.48%
21.14%
11.38%
69.24%
20.46%
10.30%
70.65%
19.89%
9.45%
68.30%
23.60%
8.10%
100.00%
100.00%
100.00%
99.99%
100.00%
* Most current data available from the Washington Office of the Superintendent of Public Instruction
Percentage of Revenue By Source
State
80.00%
Local
Federal
70.00%
State Avg
Local
Sources
23.60%
CKSD
Local
Sources
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2012‐13 Actual
2013‐14 Actual
2014‐15 Budget
2015‐16 Budget
2013‐14 Actual*
NOTE: CKSD receives less funding from local sources, tax and non-tax, than the average for Washington
school districts. This is due to a combination of lower property assessment values in the District than the state
average because of Federal property and the District requesting only 80.74% of the local levy amount allowed
by the state.
S:\Budget\Budget Development\15-16\Revenue State Comparison.xls
20
General Fund
Expenditures
Central Kitsap School District
District Expenditures By Activity
Where Does the Money Go?
Teaching and Teaching Support - Of the District budget, 73.47% is spent on teaching and
teaching support. This includes such things as: teachers; instructional assistants; teaching
supplies, materials and textbooks; counselors and librarians; special education and related
services; health services; and pupil management and safety.
Other School Support - Operational support represents 16.16% of the District budget. This
includes operation and maintenance of buildings and grounds, including utilities and plant security;
student transportation; food services; insurance; warehousing and distribution; data processing;
and public activities.
School Building Administration - This is 4.44% of the District budget and includes principals,
assistant principals, secretarial and clerical assistants, playground aides and other assistants
assigned to coordinate and manage the operation of a school unit.
Central Administration - This comprises 5.93% of the District budget and includes the
expenses of the School Board, Superintendent's Office, Human Resources, Business Office, and
the supervision of the following activities: instruction, maintenance and operations, student
transportation, and food services. This includes district-wide support functions such as
accounting, payroll, purchasing, budgeting, and personnel services, as well as mandated costs of
auditing services, election costs, insurance, and legal services.
2015-16 General Fund
Budgeted Expenditures
School Building
Administration
4.44%
Central
Administration
5.93%
Teaching & Teaching
Support
73.47%
Other School
Support
16.16%
S:\Budget\Budget Development\15-16\Activity.xlsx15-16
26
Comparison of Expenditures By Activity
State
Central Kitsap School District
2012-13 2013-14
Actual
Actual
70.62% 71.57%
18.67% 17.45%
5.03%
4.87%
5.69%
6.11%
100.00% 100.00%
Teaching & Teaching Support
Other School Support
Building Administration
Central Administration
Total
Average
Budget
Actual
2014-15
Budget
72.80%
16.86%
4.84%
5.50%
100.00%
2015-16
Budget
73.47%
16.16%
4.44%
5.93%
100.00%
2013-14*
69.58%
17.90%
5.98%
6.54%
100.00%
* Most current data available from the Office of the Superintendent of Public Instruction
State Average
Teaching &
Teaching Support
= 69.58%
CKSD Annual
Teaching &
Teaching Support
= 71.57%
Percentage of Budget Expenditures By Activity
Teaching & Teaching Support
Building Administration
Other School Support
Central Administration
80.00%
70.62%
71.57%
72.80%
72.80%
69.58%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2012‐13 Actual
2013‐14 Actual
2014‐15 Budget
2015‐16 Budget
-------------------------------------Central Kitsap School District----------------------------------
S:\Budget\Budget Development\15-16\Activity Comparison.xlsx15-16
27
2013‐14*
State Average
Transportation
Vehicle Fund
Capital Projects
Fund
Debt Service
Fund
Associated
Student Body
Fund