News & Information
Following a public Budget Savings Plan process and adoption this spring, the Bellingham School District Board of Directors adopted a final budget for the 2009-10 year at the June 25 meeting. The $100 million budget includes an unprecedented expenditure reduction of about $2.5 million. Without federal stimulus funds, the expenditure reduction would be about $6.5 million.
"Having worked in school finance for 30 years, this is one of the most difficult budget situations that I have experienced because of the impact on staff, students and families," says Superintendent Ken Vedra. "We have had to make tough choices for next year's budget. I want to thank our community, families, students and staff for their ideas and engagement in our public Budget Savings Plan process. Let there be no misconceptions that we are out of the woods. Because of the state's economy and continuing declining revenue, we have the potential for additional reductions, both this year and next. Our budget is fiscally responsible given these circumstances."
The adopted budget will be posted on the district's Web site on Friday, June 26.
The district has been closely monitoring the evolving rules for use of its designated federal stimulus dollars, which totals about $4 million. The use of the district's stimulus funding is restricted to two areas and cannot be used as general purpose revenue. The two areas are providing remedial educational services in Title I and for special education. The state is using its portion of federal stimulus funds to replace some of the Initiative 728 class size reduction funds eliminated by the state Legislature for 2009-10 and 2010-11.
The district now has more information, including more retirements, resignations and leave requests from staff. As a result, the district has been able to rehire nearly two thirds of the 64 certificated staff members who received non-renewal of contract notices and has added some classified staff hours back into the budget.
"In over 20 years working in school finance, and 30 years in public education, I cannot remember a year in which a school district's budget has decreased to such an extent. Generally state revenue for school districts increases from one year to the next but this $9-plus billion shortfall that the state is experiencing has certainly changed that,” says Assistant Superintendent of Business and Operations Ron Cowan.
"Implementing the Budget Savings Plan has been painful because of its impact on people. However, because of the incredible input we received from the community, staff, and even students, we were able do so strategically and maintain many valuable programs for children. In fact, the way it looks right now, we’ll be able to maintain baseline staffing ratios for classroom teachers at the same level in 2009-10 as we did in 2008-09.”
Because the Legislature adopted a two-year budget with additional cuts in state funding for the district during the 2010-11 school year, implementation of the district's Budget Savings Plan will help lessen the impact of future reductions.
“The reductions being implemented for the 2009-10 school year should help position us better for 2010-11. During these uncertain economic times, which are forecast to continue for awhile, we hope to be able to mitigate the impacts of additional economic uncertainties and have the resources needed to meet the district’s operational and instructional responsibilities,” Cowan continues.
In the 2009-10 budget, the district will have about 4 percent in reserves with School Board policy dictating a range of 3 to 5 percent for financial and program stability. Among other things, adequate reserves are critical for paying monthly payroll and meeting other ongoing financial obligations. The district does not receive its funding from the state on a payment schedule that aligns with its expenditures. Therefore, the district often relies on using reserves to pay bills until that state funding is provided. Without adequate reserves the district would have to resort to short-term borrowing and paying interest; something to be avoided. Reserves are also important to maintain programs during times of revenue shortfalls due economic factors, level or declining enrollment, and to cover unanticipated expenses or emergencies. Reserves also impact the district's credit rating and ability to borrow funds for bonds for construction projects at a low interest rate, which saves taxpayers' dollars. For the last several years, the district has been spending down its reserves to offset rising costs and meet financial obligations, a pattern that it cannot continue and still remain financially stable.