funding our schools: february 2013 levies community engagement meetings september 20, 24, 27, 2012
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Funding our Schools: February 2013 Levies Community Engagement Meetings September 20, 24, 27, 2012. Agenda for Tonight’s Meeting. The current situation: funding for our schools Levy renewals Building Excellence (BEX) Capital levy Operations levy Cost to citizens Your feedback and ideas. - PowerPoint PPT PresentationTRANSCRIPT
Photos by Susie Fitzhugh
Funding our Schools: February 2013 LeviesCommunity Engagement Meetings
September 20, 24, 27, 2012
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• The current situation: funding for our schools• Levy renewals
– Building Excellence (BEX) Capital levy
– Operations levy
– Cost to citizens
• Your feedback and ideas
Agenda for Tonight’s Meeting
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The Current Situation: Challenges and Opportunities for
Funding our Schools
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• Construction and modernization funding comes almost entirely from capital levies:
– Building Excellence (BEX) – Expires 2013
– Building, Technology, & Academics (BTA) – Expires 2016
• 94% of the annual General Fund comes from three sources:
– Federal (13%)
– State (54%)
– Local Operations Levy (27%)
The Current Situation: Funding Our Schools
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Seattle Public Schools are continuing to grow! Growth of 1,000 students this year to 49,500
Next 10 years: 7,000 additional students projected
Seattle’s north and southwest regions are growing the fastest
The Current Situation: Enrollment
The impact of 7,000 students equates to:
14 Elementary Schools (@500 students each)Or…10 Middle Schools (@700 students each)Or …5 High Schools (@1,400 students each)
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To plan for enrollment, we use a range of low, middle, and high range projections.
However, our enrollment growth in certain areas (north and southwest) may be greater than historical data suggests.
To address this, we are:
• Collaborating with Facilities and Capacity Management Advisory Committee (FACMAC)
• Seeking updated data from the City of Seattle and King County• Retaining a Puget Sound area specialist in school district
demography to validate our intermediate and long-term projections• Re-examining elementary and middle school capacity and latest
enrollment data
The Current Situation: Enrollment
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SPS Enrollment Projections (High & Mid Range) – June 2012
Educational Data Solutions Projections (Consultant) – June 2012
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
62,000
64,000
48,496
49,477
50,454
51,577
52,756
53,676
54,564 55,320
56,091 56,848
57,254
48,496
50,131
51,714
53,370
55,023
56,371
57,668
58,820
59,915
60,996
61,691
49,477
50,365
51,280 52,010
52,759 53,529
54,232
55,060
55,906
SPS Mid Range ProjectionSPS High Range ProjectionDemographer (consultant) Range Projection
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• Increasing enrollment• Aging buildings• Reducing dependence on portables• Inadequate core facilities• Funding issues
– Developer fees in Seattle are not earmarked for schools
– Historical decline in state funding for construction
– State not funding the full cost of technology
– State not fully funding basic education
• Expiration of 2013 BEX and Operations levies
The Current Situation: Challenges
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• Increased Board oversight process– Comprehensive review of policies and procedures
– Increased internal controls and financial reporting to Audit & Finance Committee
– New Office of Internal Audit reporting directly to Board
• Strengthened Capital Department– Reorganization of department/increased supervision
– Outside expertise from Education Service District
• Created Ethics Program/Strengthened Hotline• Revised procurement procedures/increased training
The Current Situation:Managing Public Resources
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Funding our Schools: The Building Excellence (BEX) Capital Levy
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• Building safety and security – Seismic upgrades and middle/high school on-line security systems
• Capacity – More seats and space in core facilities
• Building conditions – Reducing deferred maintenance
• Accessibility and flexibility for programs and services– Provide equitable program distribution including Accelerated
Progress Program (APP), STEM, International Education, etc.
• Updating Technology
BEX IV Capital Levy: Addressing Challenges in Every Region
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North Region % of Total
BEX & BTA I , II & III37%
Central Region % of Total
BEX & BTA I, II & III18%
South East Region % of Total
BEX & BTA I, II & III23%
South West Region % of Total
BEX & BTA I, II & III22%
History of Capital Spending in SPS
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Funding for Proposed BEX IV ProjectsProject/Use Estimated Cost ($M)
Buildings (new schools & additions) $437.9
Capacity Flexibility $20.8
Project Management $28.5
Academics (new programs … i.e. IB, STEM) $3.0
Capacity Management $11.0
Infrastructure (fields, roofs, utilities, equipment) $12.8
Lunchrooms/Core Facilities $9.5
Safety and Seismic Improvements $54.9
Interim Downtown School (planning funding only) $5.0
Major Preventive Maintenance $18.0
Technology (infrastructure, classroom technology,Academic & business application projects)
$53.8
Total $655.2
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BEX IV: How Capital Levy Funding Works$655.2 Million 2014-2019
Fiscal Year 2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020 Total
Levy Revenues $54.6 $109.2 $109.2 $109.2 $109.2 $109.2 $54.6 $655.2
Note: 1. Capital levy proceeds are received in equal amounts over six calendar years2. School fiscal years run from September-August; tax collections are received
twice annually, in April and October
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Denny Elementary• Arbor Heights - ReplaceInterim• Boren - Interim
Hamilton High School• Lincoln – ModernizeInterim• Lincoln - Interim
$655.2 M (5% Portables)
McClure Elementary• Queen Anne - AdditionCity Planning• Interim Downtown School- New Washington
Middle • Meany – ReconfigureHigh School• Mann – Modernize/Addition• World School - Modernize
Madison Elementary• Schmitz Park at Genesse Hill –
New Replacement• Fairmount Park – Open /
Modernize/Addition
Whitman Elementary• Wilson Pacific - New• North Beach – ReplaceMiddle • Wilson Pacific – New
Eckstein Elementary• School @ Thornton Creek - New• Olympic Hills – ReplaceInterim• John Marshall - Interim
Mercer Middle • Mercer – AdditionInterim• Old Van Asselt - Interim• Columbia - Interim
Aki KuroseElementary• Wing Luke – New Replacement
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Funding our Schools: Operations Levy
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The Operations Levy: 27% of the District’s General Fund Budget
Funds day-to-day educational programs and services not fully funded by the State:
• 6th period classes at middle & high school levels• Teachers and instructional assistants• Textbooks and classroom supplies• Bilingual and special education services• Bus transportation, security, other operations and
maintenance• Student activities, such as athletics, arts, extra-
curricular and co-curricular activities • Professional development & training
Federal13% Other
1%
Local Levy27%
Local Non-Tax5%
State54%
FY 2012-13 Revenues
Perspective: 2012-13 General Fund Budget = $591M
A 27% reduction would equal approximately $160M!
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Funding our Schools: Tentative Three-Year Operations Levy
2014 $167.1 million
2015 $185.9 million
2016 $200.4 million
Total $553.4 million*
*Increased levy amount incorporates projected enrollment growth
Funding our Schools: The Cost to Renew the BEX and
Operations Levies
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Estimated SPS Annual Property TaxesBased Upon a $400,000 Home Value
Estimated Property Taxes
Type of Levy2013 (Current)
2014(Proposed)
2015 (Proposed)
2016 (Proposed)
Operations $ 556 $ 578 $ 624 $ 644
BEX III & IV $ 285 $ 378 $ 367 $ 351
BTA III $ 157 $ 156 $ 151 $ 145 Total $ 998 $1,112 $ 1,142 $ 1,140
Annual change from current N/A
$114
$144
$142
Monthly change from current N/A
$10
$12
$12
21212121
Funding our Schools: How Seattle Compares to the Region
Federal WayShoreline
KentHighlineIssaquah
RentonLake Washington
BellevueMercer Island
Seattle ProposedSeattle
$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00
2012 Total Education Levy Rates Per $1,000 Assessed Value
On a $400,000 assessed home value the total proposed levy rate increase would result in a $114 annual tax increase in 2014.
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• Community engagement meetings– September 20th, 24th and 27th
• October 4th FACMAC meeting – review feedback• October 10th Board work session – staff
proposal to Board• October 17th Board introduction • November 7th Board action• February 12, 2013 vote on both levies
Next Steps for BEX and Operations Levy Renewal
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• Questions and answers• Feedback
We want your feedback and ideas! Please submit your feedback tonight or via email by September 30, 2012 to: [email protected]
Thank you for attending!