Palouse Budget and Levy Update - Nov 1
PALOUSE BUDGET & LEVY UPDATE - 11-1-2019
At the November 21st Board meeting the Palouse Trustees will be setting the levy amounts for the February 2020 ballot. If you would like to provide your input, please feel free to attend the meeting or to contact your school board members.
Each July we must submit a budget to the state for their approval based on a form and per the guidelines they have established. A major aspect of this required report is our 4-year EFB - Ending Fund Balance projection. This is an estimate of the district’s financial health based on the current information available. This information changes from year to year, especially considering the unknown enrollment numbers or the impact of the legislative/funding component which early indicators for the upcoming 2020 session are that school funding is unlikely to receive much attention or additional funding.
Below are the EFB numbers Palouse turned into the state concerning our projected four-year financial health. As you will note, the projections indicate a rapidly deteriorating operating budget that will require our attention and mitigation efforts. To be fiscally responsible a school should maintain an EFB sufficient to cover 1 to 2 months payroll and operating expenses. Our Board is considering a 12% EFB guideline (about 6 weeks cost) which equals about 420,000. As you can see, the projection formula shows us well under this next year, so it needs our immediate attention if we are to maintain a healthy EFB.
I will be recommending to the Board that we ask for your support with raising the levy rate from 1.50 per 100,000. property value to 2.50. This increase will raise approximately 130,000. additional dollars from taxes for the school. This amount, along with the tightening of our belt and improving our human resource efficiency by redirecting/combining/sharing employee duties should greatly improve our efforts to slow the financial challenge projected per the state guidelines. I am confident we can maintain the quality educational opportunities for our students here in Palouse with some operational adjustments and the additional support from the levy.
19-20 20-21 21-22 22-23
4-year Projected EFB 481,989. 260,143. 38,912. -84,250.
4-year Projected Enrollments 180 181 176 171
General Fund Levy – I will recommend a 2.50 levy level. (see chart below)
Capital Projects levy – I will recommend staying with the current 300,000. per year.
Rate $$ Raised Annual Patron Cost per 100,000
Current 1.50 238,000. 150. Current
Option #1 1.50 201,000. 150.
Option # 2 2.00 268,000. 200.
Option # 3 (max) 2.50 335,000. 250. I am recommending
Call if you have any questions or comments!
Have a great day!
Calvin L. Johnson, Supt.
Palouse School Dist. # 301
600 E. Alder
Palouse, WA 99161