Salem-Keizer Public Schools

2013-14 Budget Message

Our Vision: All students graduate and are prepared for a successful life.
Budget information available online at www.salemkeizer.org

SUCCESS VIDEO

10 Years of Funding History

$30,000,000 $20,000,000 $10,000,000
Current Service$Level

2004-05 03-04

2010-11

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10

2011-12

2012-13

$(10,000,000) $(20,000,000) $(30,000,000) $(40,000,000) $(50,000,000) $(60,000,000)

2013-14

$126.4 Million in Cuts in the last 4 years:

2009-10 57% 10% 9% 4% 8% 12%

2010-11

33%

18%

18%

4%

27%

2011-12

13%

20%

03-04

54%

8%

5%

2012-13

52%

39%

8%

1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Reserves

Concessions

Direct Instruction

Support to Students

Central Administration

Transfer to ARRA funds

Total Proposed Budget for 2013-14 $563,891,655

Internal Service Funds $24,198,671 Debt Service - PERS*, 4% Special Revenue $22,987,449 , Funds* $74,008,242 4% 13% Debt Service - General Obligation Bonds* $32,777,713 Enterprise Fund & 6% Trust Fund $514,100 <1%

Capital Projects Fund* $41,434,712 7%

General Fund $367,970,768 65%

* Restricted Funds

Total Proposed General Fund: $367,970,768

General Fund $367,970,768

Our current reality is a $17.7 million shortfall for next year

How is the shortfall determined?

For 2013-14, we estimate our current service level costs to be: $381,477,179

As mentioned, we are estimated what amount will be allocated by the State of Oregon using the budget allocation from Ways and Means co-chairs . We estimate our total revenue to be: $365,564,339 *
*Includes flow through revenue from property taxes, interest earnings and fees.

How is the shortfall determined?

Here is the math: Estimated general fund revenue

$365,564,339

Costs to maintain current service levels $381,477,179 Add funding for: Classroom substitutes $770,000 Special Education $698,227 WESD Early Childhood SPED $300,000 Total $383,245,406 Shortfall $ -17,681,067

How do you decide what to cut?

Determine what is needed to get the results Understand what is legally mandated Pay attention to the values of the community Listen to feedback

Here is what we have been hearing

How do you decide what to cut?

From our staff Large classes impact their ability to differentiate instruction effectively. More time is needed to work with their peers. They feel the loss of support systems. They would like to use technology so they can be more efficient.

How do you decide what to cut?

Budget Committee discussions Areas of focus: Protect Class Sizes Protect Programs For Students Protect Technology and if possible increase funding Reduce Ending Fund Balance/Contingency Reduce Compensation Through Concessions Reduce Instructional Programs

How the budget is allocated*

Supplies & Materials, 3% Other, 4% Purchased Services, 6%

Salaries and Benefits, 87%

*2012-13

Addressing the shortfall.

Total shortfall: $ -17,681,067

Apply the following to offset the shortfall:

Reduce Ending Fund Balance to 3% Reduce PERS debt service reserve

$7,298,538 $2,406,427

Remaining Shortfall

$-7,976,102

Addressing the shortfall.

Amount of shortfall remaining : Employee concessions and/or additional cuts. $-7,976,102

$7,976,102

Balance

$0

Long Term Impact

$30,000,000 $20,000,000 $10,000,000
Current Service$Level

2004-05 03-04

2010-11

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10

2011-12

2012-13

$(10,000,000) $(20,000,000) $(30,000,000) $(40,000,000) $(50,000,000) $(60,000,000)

2013-14

Next Steps
Public hearings set for May 20 - 21 School Board takes action on proposed budget on June 11 (legally, we must adopt a budget by June 30) Once a final number (K-12 funding) is determined by the State Legislature, we will update the School Board and Budget Committee.

Final Thoughts
End with a success video from student

Our Vision: All students graduate and are prepared for a successful life.