School Budget Process: Bond, Enrollment, Budget Activity Hold Strong

At the monthly Orcas Island School District (OISD) board meeting on Thursday, Feb. 27, the $11.9 million bond implementation, current school construction projects, enrollment, fund balances, budget extensions and 2013-14 budget formulation all painted a picture of steady progress through the complex world that is public education.

Bond
The Orcas Island School District Board invites the public to hear about the different configurations of the schools’ remodel project, funded by the community through the passage of last November’s $11.9 M bond.

The meeting will be on Monday, March 4 at 3 p.m. in the school library. It will be followed by a meeting of the Bond Advisory Committee.

The Bond plan calls for $8M for construction costs, and $3.9M for contingencies, furniture and equipment, design and management, permit fees and sales tax (Indirect Costs). As of Feb. 22, 2013, the bond construction costs were updated to show $684,827 reduction in overall costs, thanks mostly to the high school roofing program that has been covered by the state $1M grant. The updated estimate also shows reduction in site development and food service/Middle School Commons projects, and increases in the Library/OASIS building, music, and career and technical education (CTE) project budgets.

The budget updates are an ongoing process, affected by funds from other grant sources, Superintendent Barbara Kline noted. Meanwhile, money that is “left over” from the  $1M state grant  allocated last year for the high school update project is required to be spent by this summer. Kline told the board that  the OISD should know by March 11 if the district’s application for another energy grant has been approved.

Budget Extensions
The budget extensions are required by the state to account for discrepancies in the current school year budget,  due to increased revenues and costs relating to above-projections enrollment and the passage of the bond and levy issues.

Business Manager Keith Whitaker said, “In our case, the budgets are built on an assumption of 600 students; currently, [with 800 students] there’s a lot more revenue and expenditure. We have to go back to Olympia to get extensions.

” The bond and levy directly impact revenue and expenditure; the extensions allows us to make requisite changes without going over state requirements for what we spend.”

The extensions amounted to increases of:

• $34,287  for the debt service fund
• $939,828 for the general fund budget extension;
• $1,724, 250 for the capital projects fund budget extension.

Enrollment and Budget

Whitaker reported that the General fund balance of $168,970 has changed little since December, but that with increased billing in February, he expects the balance to increase. Whitaker commented that the OISD’s exposure to  federal sequestration that goes into effect March 1 would amount to about $22,000, mostly through the Title I funding.

Although enrollment dropped,from a headcount of 10 from September 2012, and by about 23 FTE (full-time enrollment),  still the monthly averages of 834 and 791 respectively, are still above the 600 FTE projected for the 2012-13 school year.

And the process for funding for the next school year, 2013-14 began with the filing of the F-195 form, which the board approved.

The Budget Advisory Committee (BAC) held its first meeting towards formulating the 2013-14 budget. Members of this committee are Nancy Loomis (Chair), Steve Diepenbrock, Sara Morgan, Carol Sutton and Sam Windsor.  The BAC would benefit from new members, OISD member Janet Brownell said, and Superintendent Kline said she would put a notice to that effect in the school newsletter.

OISD Chair Chris Sutton noted that the budget formulation for 2013-14 included the addition of another principal, as Elementary/Middle School Principal Kyle Freeman will become High School Principal next year, and the district is seeking a replacement in the Elementary/Middle School.

Whitaker said that in the best case, enrollment will fund the position. The closing date for applications for this position is March 29.