Building a Balanced Budget for 2006-2007

Overview, Budget Options, and
Frequently Asked Questions

Updates May 16, 2005

1. The time period for submission of scenarios via the budget-balancing model has closed, to allow for analysis and reporting to the School Board. However, the model is still posted for viewing on this website. To submit suggestions for budget balancing, please email reshaping@seattleschools.org; with "Budget Suggestion" in the subject line.

2. A School Board work session related to budgets is scheduled for Wednesday, May 18, 4:00 to 5:45 p.m. in the Auditorium of the John Stanford Center, 2445 3rd Avenue South. Topics include an update on closing the 2005-2006 and 2006-2007 budget gaps.

3. Analysis of benefits or costs of sale of John Stanford Center for Educational Excellence. Community members have suggested that selling the John Stanford Center for Educational Excellence and relocating administrative, maintenance and repair, nutrition services and warehouse functions to other district-owned buildings might result in budget savings. An analysis of this suggestion has been completed by an independent party, a City of Seattle auditor on-loan to Seattle Public Schools. In summary, the analysis indicates that selling the Stanford Center would not save money, but rather would cost the District up to $73 million to renovate school buildings for administrative and light manufacturing purposes. Further, these uses might not be permitted as the principal use in neighborhoods where our schools are located.

Overview

Seattle Public Schools faces an estimated $12.2 million budget gap for 2004-2005 and an estimated $20.7 million gap for 2006-2007. Work continues to balance the budget for 2004-2005, partially based on the use of reserves, other one-time funds, and some budget reductions. The Board is scheduled to vote on a final 2004-2005 budget in July.

With a projected budget gap of $20.7 for 2006-2007, more extensive changes will be necessary. To ensure the budgets for 2006-2007 and beyond are balanced, the district must implement a combination of expenditure reduction and revenue enhancement strategies.

The Superintendent directed that this process begin early to ensure there is time to make considered decisions, and because some options need a longer lead time to implement.

The overall goal of the budget planning work is twofold:

1. To ensure that every school is a high quality school, supported by the resources needed to assist every child to succeed.

2. To create a sustainable budget that ensures the district lives within its means.

Over the past three years, significant reductions have been made to the District's budget. In addition, a large percentage of the budget is driven by mandatory services or contractual obligations.

Virtually all options that remain for budget reductions require difficult and painful choices.

To ensure careful consideration and planning for the 2006-2007 school year, the Superintendent and School Board have sought community and staff input into the planning process.

A budget planning model was prepared that illustrates some of the options available for revenue enhancements and expenditure reductions. The interactive model was available for community submissions through May 15. Suggestions submitted through this process will be analyzed and presented to school board members as budget discussions continue. Although the submission cut-off date has passed, the model is still available for review. Comments or suggestions on budget-balancing strategies can be made by email to reshaping@seattleschools.org. Please use "Budget Suggestion" in the subject line.

Background information about the budget-balancing model

Links to background data on the district budget, enrollment, and facility capacity

A list of frequently asked questions about the model and budget-balancing for 2006/2007 

 

Information on the Budget Planning Model

This tool provides the ability to model various budget-balancing scenarios by selecting from a list of options developed by staff, community and board members. While submissions via the model are not accepted after May 15, the model is available for your use.

The model is divided into five sections, which are described below. As you work through the sections, the model will calculate the running total of the savings/revenue enhancements that you have selected. Here's how the calculation feature works:

Using the model calculation features
At the top and bottom of the model form, there is a box that displays the projected 2006-2007 budget gap of $20.7 million. As you make selections throughout the model, the dollar amounts are deducted from the gap and the difference is displayed.

At the bottom of the calculation box there is a feature called "Show Alert Dialog for Each Selection Made.? If you check this feature, a dialog box that shows the total amount of gap remaining will pop up after each selection you make. Use of this function is optional and can be activated or deactivated as you work through the model.

You will notice that not all line items will be deducted from the gap as you select them. These are options that either cannot be implemented in time to affect the 2006-2007 gap, or items that have not yet been fully analyzed to determine potential savings.

The budget model for 2006-2007 is divided into five sections:

1. Savings from school consolidation

• School closure and consolidation is being considered as one option to reduce overhead costs and redirect funds to student services.
• If you wish to include school consolidation in your budget-balancing scenario, enter the number of elementary, middle, and high schools to be closed.
• When these values are entered, the associated cost savings will be deducted from the $20.7M gap.

2. Savings from changes to transportation and/or student assignment plans

• A number of changes to the District's transportation and assignment plans have been proposed, and were discussed in a series of community forums during February.
• In this section, select one option only if you feel the District should change from its current student assignment/transportation plans.
• The list of scenarios, presentations and data provided at student assignment and transportation forums are available on our website. You may wish to review this information before selecting an option.
• If your budget scenario calls for no change to assignment/transportation, make no selection in this section.

3. Other potential revenue enhancements or expenditure cuts

• This section contains a wide array of options for budget cuts or revenue increases for 2006-2007.
• The list was compiled from suggestions from staff, board members, and community members.
• Please note that inclusion on this list does not imply that the program or services are not valued or effective. They are merely options.
• The list is sorted by dollar value of the saving or revenue increase. Further, the list is not prioritized nor yet evaluated against the District's academic goals and objectives.
• You may select as many options from this list as you wish.

Note that for some options, the dollar savings or revenue increase is listed as "To be determined," or "tbd." These items require further analysis, which is in progress. Including these options in your choices will not reduce the gap in the context of this model.

4. Long-term options

• Long-term options include the ideas that are likely to take more than one year to implement and therefore will not contribute to closing the 2006-2007 budget gap.

Background Data and Information Resources

Potential School Consolidation, Student Assignment and Transportation Plans

Superintendent's Preliminary Recommendation on School Closure/Consolidation, Student Assignment and Transportation
April 20, 2005

Presentations and Data on Enrollment, Facility Capacity, Transportation Plan Options and Savings 

Seattle Public Schools Budget -- 2004-2005

General Fund Budget 2004-2005 

Flexibility View of Budget for 2004-2005

 

Seattle Public Schools Budget -- 2005-2006

The general fund budget for 2005-2006 will not be finalized nor adopted by the School Board until July 2005. However, school-based budgets and transformation plans were submitted to education directors by March 18. The documents used to prepare those budgets are as follows:

The 2005-2006 Green Book provides overall allocations and budget instructions.

The 2005-2006 Blue Book contains details by school of funds allocated through the Weighted Student Formula and selected grants.

Both documents are available on the Budget website 

 

 

Frequently Asked Questions

Q: How will the choices and information submitted in each budget-balancing model be used?

A: District staff will compile, analyze, and present to the School Board a summary of choices submitted. This information will inform staff and board members about community preferences as budget discussions for 2006-2007 continue.

 

Q: The 2005-2006 budget is not yet final. Why are you seeking input at this time to the 2006-2007 budget?

A: Essentially, to stabilize the district financially, to be open and honest with staff and community about the financial challenge that lies ahead, and to get early input into planning. The 2005-2006 estimated budget gap is $12 million. While closing that gap is very challenging, the Superintendent has recommended strategies that will balance the budget without making deep cuts to schools. Many of the strategies are one-time uses of funds. The budget gap for 2006-2007 increases to $20 million. Many of the one-time funds will not be available to help close that gap, so more fundamental changes District programs and services will be essential.

 

Q: Will budget reduction decisions be based on the items that are most often included in the submissions?

A: Not necessarily. While this input will inform discussion and decisions, it is the responsibility of the Superintendent and the School Board to make budget-balancing decisions that are in the best interest of all children in the district. As the 2006-2007 budget is prepared, the Board will be guided by its mission, vision, beliefs and values, as they do with every decision made.

 

Q: Can I submit more than one budget-balancing scenario?

A: While you may work with the model as many times as you wish, only the first response from each unique email address will be included in the analysis presented to the Board. This will help ensure that the data gathered is representative of the diverse opinions represented in our community.

 

Q: Why is my service or program on the list? Does this mean that is is likely to be eliminated or reduced?

A: The list is comprised of ideas submitted by staff, leadership team members, board members, and community members. Inclusion on the list does NOT imply that the service or program is not valued. It also does not imply that the service will be eliminated or reduced. The Superintendent and board members will carefully consider all budget-balancing options before making decisions.

 

Q: Why isn't a particular service or program on the list? Does that mean it is exempt?

A: Programs and services that are legally required, or federally mandated, have not been included in the list. If you wish to submit an idea for consideration, simply include it in the "Additional Ideas" section at the end of the model.