Bremerton School District
2007-2008 Budget
Budget Process and Significant Changes
The budget process is comprised of five phases – planning, preparation, adoption, implementation, and evaluation. The preparation of the budget commenced with the development of the student enrollment forecast for the 2007-2008 fiscal year. At a recent meeting, the Board gave approval to the pupil enrollment forecast that projects a budget decrease of one hundred eighty (180) students.The enrollment forecast provides the assumptions on which building budget allocations are formulated and staff resources are determined.
The following presents a comparison of the proposed expenditures for all Governmental Funds for the current and projected school years.
Total Budgets for All Governmental Funds
Fund |
Budget
|
Budget
|
Percent Change |
| General Fund | $50,086,869 |
$51,336,275 |
+2.5% |
| Capital Projects Fund | 28,300,000 |
7,952,12 |
-71.9% |
| Debt Service Fund | 3,710,416 |
3,781,408 |
+1.9% |
| Associated Student Body Fund | 647,913 |
615,000 |
5.1% |
| Transportation Vehicle Fund | 284,000 |
376,000 |
+32.4% |
Analysis of Proposed Budgets
Education of students is a labor-intensive enterprise, as reflected in the personnel costs. The workforce of the District is determined by the staffing policies and guidelines of the Board on the basis of projected student enrollment and curriculum requirements. Personnel costs are based on conditions of employment established by collective bargaining agreements and State mandated salary increases. For the 2007-08 fiscal year, salaries and benefits are budgeted to consume 83% of the expenditures in the General Fund. Note: the State provides only a portion of the necessary funds. Nearly 1/3 of this amount is provided by local taxpayers through the M&O Levy or state/federal categorical program funding.
The following tables and graphs provide a comparison of expenditures by object (expenditure category) for the current and proposed General Fund Budgets in dollars and percentages of total budgets. A comprehensive look at programs and activity changes is provided in the General Fund Expenditures section.
Object Code |
Budget |
Budget |
Percent |
| Salaries – Certificated Employees | $21,791,274 |
23,195,078 |
+6.44% |
| Salaries – Classified Employees | 8,535,848 |
8,500,929 |
-0.41% |
| Benefits | 10,367,181 |
10,656,755 |
+2,78% |
| Supplies and Materials | 4,754,950 |
4,722,324 |
-0.68% |
| Purchased Services | 4,423,234 |
4,050,408 |
-8.43% |
| Travel | 93,008 |
134,945 |
+45.1% |
| Capital Outlay | 121,374 |
75,836 |
-37.5% |
General Fund Expenditures by Object
(Comparison of Total Expenditures of Current and Proposed Budgets)
2006-07 SY |
2007-08 SY |
 |
 |
Major Expenditure by Object Changes
Object |
Description |
Change Amount |
Explanation |
| 0 / 1 | Debit/Credit Transfer | +$199,386/-$199,386 |
|
| 2 | Certificated Salaries | +$1,403,804 |
Certificated staff will receive a 4.2% state authorized salary increase along with the union negotiated increase. A more accurate allocation for substitute cost has been included. |
| 3 | Classified Salaries | -$34,919 |
Classified will receive a 3.7% state authorized salary increase along with union negotiated increase. Note: The reduction of staff is reflected in the lower expenditures. |
| 4 | Employee Benefits | +$289,574 |
Benefits rose when the state raised employee retirement rates, employee medical benefits and retiree health care contribution rate. Note: The state-provided revenue does not cover the total amount of increase; rather the District must use other funds to completely pay this bill. |
| 5 | Supplies and Materials | -$32,626 |
Reduction in expenditures is due to budget cutbacks. |
| 7 | Purchased Services | -$372,826 |
Reduction in expenditures is due to budget cutbacks. |
| 8 | Travel | +$41,937 |
Travel expenditures increase due to a more accurate evaluation of expenditures |
| 9 | Capital Outlay | -$45,538 |
Number of Capital Project decreasing |
Net Change |
+$1,249,406 |
|
|
The major expenditure from the Capital Projects Fund budget was reflected in the 2006-2007 school year for building additions to Bremerton High School and Mountain View Middle School. The remainder of the expenditures in this fund will be used to complete the additions at both major projects in the 2007-2008 school year. In addition, Capital Projects to upgrade fields/tracks will take place in this budget year.
The District has a Debt Service Fund to provide for principle and interest payments for outstanding debt in accordance with generally accepted accounting principles for governmental entities. Funds in the Debt Service Fund will be used for principle and interest payments on taxpayer approved General Obligation Bonds.
The major expenditures in the Associated Student Body (ASB) Fund support student activities, athletics and clubs. These funds are administered by a student governmental organization and staff advisor at the secondary level and by the principal at elementary schools.
The major expenditures in the Transportation Vehicle Fund include the purchase of up to four school buses. The state updated contracting rules, but changes now in effect allow for the purchase of a selection of makes and models from the various bus manufacturers.
Resources to Support Operations
Programs and services included in the General Fund budget are primarily supported by local, state, and federal sources of revenue. A comparison of revenue sources to support operations for the current and proposed General Fund budgets are presented below.
Revenue Sources |
Budget |
Budget |
Percent |
| Local Taxes | $7,860,332 |
$8,736,896 |
+11.1% |
| Local Support, non-tax | $1,220,248 |
$1,426,849 |
+16.9% |
| State, General Purpose | $25,628,682 |
$25,366,824 |
-1.02% |
| State, Special Purpose | $7,459,710 |
$8,898,658 |
+19.3% |
| Federal, General Purpose | $475,000 |
$480,000 |
+1.2% |
| Federal, Special Purpose | $5,283,916 |
$5,501,355 |
+5.0% |
| Revenues from Other School Districts | $23,000 |
$33,000 |
+43.5% |
| Other Financing Sources | $0 |
$10,000 |
+100.0% |
| Total General Fund Revenue | $47,950,888 |
50,453,582 |
+5.2% |
The financial support for District operated programs and services is substantially and increasingly derived from local sources of revenue, primarily the Maintenance and Operation Levy paid for by local property taxes. In addition, the State legislature continues to require many programs and services mandated but not funded by the State, thereby, negatively impacting local resources as well. The following graph presents the sources of revenue to support the proposed operating budget.
 |
Acknowledgments
We appreciate the fiscal support provided by the Bremerton School District Board of Directors and the Community for development, implementation and maintenance of rapidly improving educational programs for children of the District.