Multnomah Education Service District Multnomah County, Oregon Adopted Budget For the Fiscal Year 2019-2020 11611 NE Ainsworth Circle Portland, OR 97220 www.multnomahesd.org Approved by the MESD Board of Directors 6/18/2019 Non-Discrimination Notice Multnomah Education Service District does not discriminate on the basis of race, color, national origin, sex, sexual orientation, religion, disability, or age in its programs and activities, and provides equal access to designated youth groups such as the Boy Scouts. The following persons have been designated to handle inquiries regarding discrimination: Don Hicks Contracts & Risk Manager 11611 NE Ainsworth Circle, Portland, OR 97220 work: 503-257-1518 email: dhicks@mesd.k12.or.us Sean Woodard Director, Human Resources 11611 NE Ainsworth Circle, Portland, OR 97220 work: 503-257-1513 email: swoodard@mesd.k12.or.us Table of Contents Introduction and Overview Superintendent’s Budget Message 3 Changes from the Approved Budget 7 Budget Overview Revenues – All Funds 9 Expenditures – All Funds 10 Profile of the District 11 Organization Chart 15 Financial Structure 16 Budget Process 17 Consolidated Schedules Combining Fund Summary – Budgetary Funds 20 Combining Revenue Detail – Budgetary Funds 21 Combining Expenditure Summary – Budgetary Funds 23 Interfund Transfers and Overhead Charges 24 Total Requirements by Fund and Function – Budgetary Funds 25 Combining FTE Summary – Budgetary Funds 26 Combining Position Summary – Budgetary Funds 28 Fund Financial Summaries Combined Fund Summary – Budgetary Funds 32 Fund 1: Resolution Services Fund Summary 34 Fund 2: Contracted Services Fund Summary 36 Fund 6: Operating Fund Summary 38 Fund 3: Debt Service Fund Summary 40 Fund 4: Facilities and Equipment Reserve Fund Summary 41 Table of Contents (continued) Fund 7: Risk Management Reserve Fund Summary 43 Expenditures by Department Operations Administration 46 Facilities 48 Business Services 50 Human Resources 52 Technology Services 54 Programs Student Services - Special Education Services 56 Student Services - School Health Services 58 Instructional Services 60 Debt Service and Capital Expenditures Debt Service Schedule 63 Facilities and Equipment Reserve Plan 64 Appendix Public Notices 69 Resolutions 72 Glossary Fund Definitions 84 Function Definitions 85 Other Terms 85 Introduction and Overview This section contains the Superintendent’s budget message, a brief explanation of changes from the approved to the adopted budget, budget overview, profile, organization, and financial structure of the District as well as a brief overview of the budget process. Superintendent’s Budget Message 2019-2020 Proposed Budget April 9, 2019 The Multnomah Education Service District (MESD) is pleased to present the proposed budget for fiscal year 2019-2020. This document represents the collective work of all MESD departments and has been prepared in accordance with local budget law, Oregon regulations, and MESD Board of Directors policies. The specified revenue and expenditures are based upon educated suppositions as of April 4, 2019. We expect adjustments will be made before June 30, 2019 dependent upon the availability of additional information. Our level of service is contingent upon what our component school districts order from the MESD Local Service Plan. Our preliminary estimates are based on enrollment and selections of Local Service Plan services as of January 31, 2019 and our budget is largely based on these estimates. Once our customer’s final selections are known in May 2019, the MESD will adjust its budget and staffing levels accordingly. Budgeting Assumptions: Assumptions have been made in preparing the MESD budget document. These assumptions include: The MESD budget is based on the Co-Chairs $8.87 billion State School Fund (SSF) legislative budget appropriation split 49/51 over the biennium. ESDs receive 4.5 percent of that SSF amount. MESD’s 4.5 percent share of the SSF allotment for 2019-20 is approximately $43.8 million per the current SSF formula and most recent ODE estimates. Other Federal, State & Local Revenue sources are budgeted based on the most current information available. MESD has used the following payroll assumptions: Salary step increases for eligible employees The agreed-upon salary schedules for all bargaining groups. A placeholder has been used for AFSCME health benefits while negotiations are underway. PERS defined rates are 14.56% for Tier I/II, 9.11% for OPSRP, and 13.74% for Fire & Police MESD contribution rate for PERS pickup is 6% Increased employer contribution for health insurance premiums is capped at 6% Areas of Uncertainty As is typical during the legislative session of a new biennium there is a great deal of uncertainty regarding the State School Fund. The Governor’s budget included $8.97 billion for K-12 education, while the Co- Chairs budget allocated $100 million less. Both are still below the $10.723 billion recommended by the Quality Education Commission (QEC) to meet the Quality Education Model (QEM) and the $9.13 billion needed to meet current service levels. As the component districts we serve face funding shortfalls, their spending choices necessarily impact the agency. The legislature has tasked the Joint Committee on Student Success to develop proposals, including revenue reform and cost containment, to shore-up the gap between current service levels and the QEM. Any proposal developed by the Joint Student Success Committee and approved by the legislature will likely be referred to the voters who will decide on the matter in November. The outcome of the election, and the resulting impacts to MESD, are unclear. As a result, this budget document is presented assuming the measures have not been funded and implemented. There is currently a question of whether ESDs would be included in funding for the school improvement fund (SIF). This proposed budget does not assume funding from the SIF. It is important to note that if ESDs are not included in the SIF distribution, but program increases are required for component districts, this will drive cost increases without funding to support. If the voters approve additional funding for schools, and ESDs are included in the funding distribution, MESD would, based on our component district feedback, prioritize our investments in the following ways: increase social-emotional supports for students by hiring additional Mental Health Therapists, Interventionists and nursing support, support regional collaboration to expand CTE and STEM offerings for our districts and our schools, add additional days to staff serving students in lockstep with our component districts actions to expand learning time and add school days. Information available on the renewal and funding levels for existing grant awards and contracts, such as those with state agencies, is preliminary at this stage in the budget cycle. Additionally, MESD will continue to seek new contracts and grant opportunities to meet the needs of children and families. The Contracted Services Fund and to some extent the Operations Fund (through indirect expenses) are impacted by fluctuations in these areas. MESD is currently engaged in a contract re-opener with AFSCME for health benefits. The financial impact of these negotiations could result in budget adjustments. As noted above, we have used the best available information to make educated suppositions in preparing this proposed budget. As suppositions meet reality, it is likely that adjustments will be required. Service Stability The array of services forecast for 2019-2020 is not significantly different than that provided in the current year. We continue to work with our component districts to improve our service quality and financial efficiency and to ensure we meet regional needs through our Local Service Planning (LSP) process. After a comprehensive review, there were only minor adjustments to LSP offerings. MESD recognizes the difficulties facing districts as they balance budgets under challenging circumstances and staff have made a concerted effort to limit service cost increases to 8% or less (the estimated agency- wide level of payroll roll-up) wherever possible. Districts have not indicated any significant reductions in participation or total withdrawal from programs. Minor fluctuations in participation have been indicated and are a regular aspect of ESD operations. Though not currently anticipated, more significant shifts could occur as districts work to balance their budgets. Component districts will communicate minimum commitments to MESD at the end of April. Operational Stability and Management Efficiencies For the 2019-20 school year, MESD does not anticipate a significant change in staffing levels. The leaner senior management structure that the agency implemented has helped position the agency to remain stable at even the Co-Chair’s budget level. As it is likely that funding will remain tight for the foreseeable future, particularly considering the increases expected in PERS costs, MESD must continue to rigorously analyze its operating costs. Strategic Alignment and Investments In August 2017 after a comprehensive strategic planning process, MESD adopted a new mission, vision, set of values and a two-year strategic plan with five goals. Goal teams have worked diligently to implement the plan, now in its second and final year. In January 2019, the agency began the process of creating a 2019-21 plan which builds on the progress of the 17-19 plan and identifies new key initiatives to support component districts and regional student achievement. The proposed 2019-21 plan will be presented to the Board for approval in May. With the current year budget, the agency continued to align resources to strategies and goals. The 2019-20 Proposed Budget continues this work in support and anticipation of the proposed 2019-21 Plan. Strategic Plan Goal Three is to “increase district and community satisfaction and participation with MESD services.” Our first action in 2018 was to offer a stakeholder engagement survey to directors and superintendents in our eight component districts. We recently concluded our 2019 survey. Ten metrics were surveyed across five categories of MESD programs, two more than the 2018 survey instrument, providing greater granularity for the agency to use to improve services. Results from the 32 respondents were positive with an overall satisfaction rating of 88% or better for all categories. These results also point to areas where we have room to improve. This data, as well as the additional details learned through follow- up conversations with our district partners, will help orient the agency as the work to align resources to our strategic goals continues. Further surveys of our community partners and MESD employees, as well as a continued focus on student outcome metrics, will provide additional opportunities for growth and alignment. Increasing alignment with the strategic goals of the agency will continue to be a feature of future MESD budgets. Equity is a key value for the agency, and many strategic actions are focused on equity. Additionally, component districts identify regional equity support and alignment as a need. MESD has partnered with two other ESDs (Northwest Regional and Clackamas) to create a metro-area equity collaborative. This budget includes funding for a shared equity director position to serve the collaborative and MESD internal work. This is a clear example of continued alignment between budget and strategic priorities. In Summary Multnomah ESD anticipates relative stability for the coming year due to prudent budgeting and reduced management costs. Both the stakeholder survey and purchasing decisions indicate that our Districts continue to see value in our offerings. The agency is increasingly being asked to take on a greater regional support and alignment role. This is positive for MESD and the region. The statewide K-12 funding picture continues to remain challenging at best. MESD has a critical role in serving our component districts and community in this time of insufficient resources. MESD’s growing culture of continuous improvement will include our operational systems, financial efficiency, and strategic processes in order to support the critical work of improving outcomes for students. Should there be a significant infusion of resources for education in Oregon, MESD is ready to provide services and support positive impacts for students. We have the opportunity and responsibility to truly serve our community in this area. The proposed budget is recommended to you, the Budget Committee of Multnomah Education Service District. Sam Breyer MESD Superintendent and Budget Officer Changes from the Approved Budget June 2019 The specified revenues and expenditures in the approved budget were based on educated suppositions as of April 4, 2019. We expected adjustments would be made before June 30, 2019 dependent upon the availability of additional information from our component districts and the state. Local Budget Law allows the governing body of a local government to make changes to the approved budget by vote of the Board of Directors as follows: Increases or reductions to resources. Increases or reductions in expenditures in an individual fund. Increases in fund expenditures may be made up to $5,000 or 10%, whichever is greater. Reductions to tax levies. The MESD’s adopted budget document includes changes that are within this level of authority. These changes include: Resolution Fund, $513 thousand or 1% increase (excludes transfers out & contingency) SSF revenues increase by $715 thousand as of the May 15, 2019 ODE estimate. An increase in 2019-20 transit payments to districts of $302 thousand A net increase of $210 thousand for additional resolution services selected by our districts. The balance of estimated revenues has been appropriated as contingency so that it is available for additional services if requested. Contracted Services Fund, $543 thousand or 2% reduction from Approved resolution (excludes transfers out & contingency) Program changes to meet component district requests result in a net increase of $163 thousand. A net decrease of $706 thousand in contracts outside of the Local Service Plan. Significant changes to contracts reflected in the adopted budget include a reduction of $383 thousand for hospital programs and a reduction of $256 thousand for youth detention education programs. Renewal levels for existing contracts continued to evolve as the adopted budget was finalized. We continually seek additional contract and grant opportunities to serve the needs of children and families. Budget amendments throughout the 2019-20 year will incorporate expenditure changes as needed. Beginning balance and revenues were updated. The balance has been appropriated as contingency so that it is available for additional services if requested. Operating Fund, $393 thousand or 7% increase (excludes transfers out & contingency) One-time and ongoing targeted investments to support the agency’s strategic goals $305 thousand in positions/personnel: K-12/Higher Education Professional Development Project Manager (pilot program for 2019-20), Business & Operations Administrative Assistant, partial positions/funding to support regional convening, communications, and attracting, developing and retaining high-quality staff. $80 thousand in non-personnel: Strategic Plan Fund for plan support as well as critical small-scale actions, Equity Development Fund for internal equity work, and funding for meeting room supplies to support regional convening. Other minor adjustments Revenue sources are updated and a balancing adjustment has been made in contingency. Facilities & Equipment Reserve Fund Minor adjustments in Facility and Technology reserve plans as new information became available. Risk Management Reserve Fund Insurance costs, and resulting payroll rates for the agency, have been updated as new information became available. Budget Overview Revenues – All Funds Property taxes and state school funding are the primary revenues received by the District. Ninety percent of these revenues remain in the Resolution Fund. Component districts have the option of selecting services or taking direct transit dollars. Additional revenues include contracts with local school districts, and state and federal grants. Multnomah Education Service District 2018-19 Estimated Revenues and 2019-20 Adopted Budget Estimated Adopted Revenues by Type: 2018-2019 2019-2020 Change Property Taxes $34,710,000 $34,300,000 -1% State School Fund 9,031,073 10,166,833 13% Less Transits to Districts -12,800,000 -13,452,000 5% Net State School Fund 30,941,073 31,014,833 0% Local Sources 16,033,102 17,572,259 10% State Sources 10,233,112 8,598,249 -16% Federal Sources 1,721,631 1,303,237 -24% Other 1,283,113 1,393,728 9% Subtotal - Revenues by Type 60,212,031 59,882,306 -1% SSF Revenue passed thru to Districts 12,800,000 13,452,000 5% Interfund Revenues for Debt Service 2,973,785 3,193,364 7% Interfund Revenues for Workers Comp 853,770 897,990 5% Total Revenues - Budgetary Funds 76,839,586 77,425,660 1% Budget Overview Expenditures – All Funds As with most all government agencies, our most significant expenditures are our people. Personnel costs make up 78% of our total expenditures for the District. Multnomah Education Service District 2018-19 Estimated Expenditures and 2019-20 Adopted Budget Estimated Adopted Expenditure by Category: 2018-2019 2019-2020 Change Personnel Costs $44,037,327 $48,132,777 9% Supplies and Services 10,661,990 9,607,854 -10% Capital Outlay 398,191 644,402 62% Debt Service 3,068,266 3,223,364 5% Subtotal - Expenditures by Category 58,165,774 61,608,397 5.9% Transit Payments 12,800,000 13,452,000 5% Interfund Payment for Debt Service 2,973,785 3,193,364 7% Interfund Payment for Workers Comp 853,770 897,990 5% Total Expenditures - Budgetary Funds 74,793,329 79,151,751 6% Profile of the District Mission Statement: We support all students to achieve excellence. General Background Education Service Districts (ESDs) originated in Oregon’s first laws establishing a general system of common schools. The Multnomah ESD evolved from the county school superintendent’s office, first established in 1854. Responsibilities of that office were transferred from county government to an independent district in 1957. The state legislature formally established the ESD in 1963. In 1978, the name of the district was changed from Intermediate Education District to Multnomah Education Service District. Throughout the history of Oregon’s regional services system, local governance and state statutes concerning the mission of ESDs has remained somewhat constant: “Education Service Districts assist school districts and the State of Oregon achieving Oregon’s education goals by providing excellent and equitable educational opportunities for all Oregon public school students.” Today, each ESD provides regional services to its component school districts, primarily in areas that the school districts alone would not be able to adequately and equitably provide. Currently there are 19 ESDs in Oregon serving 36 counties. Local district programs and services are provided by two means. Non-resolution programs are funded via grants or fee for service contracts. Resolution programs are those that, through a resolution, are authorized by at least two-thirds of the school boards representing a majority of total county students. Resolution programs are funded from property taxes and state school fund revenue. The state allocates support by granting ESDs a percentage of the total amount available for K-12 school funding, with each ESD receiving a fixed share of that total based on the ADMw of its component school districts. Senate Bill 250, adopted in the 2011 Legislative Session, substantially changed how ESDs operate. The bill allows component school districts in specific Education Service Districts, including MESD, to opt out of ESD services and provides for school districts to receive funding for ESD services directly from the state. For 2018-19, none of the MESD’s local districts chose to opt out. District Structure Multnomah ESD is governed by an elected seven-member board consisting of five directors representing specific geographic zones in Multnomah County and two at-large. The Board of Directors establishes and oversees policies, employs staff and dedicates resources. It is the chief governing body and is exclusively responsible for its public policies and accountable for fiscal oversight. Board members serve four-year terms without compensation and can be re-elected. The chief administrative officer of the District is the superintendent who is appointed by the Board. Multnomah Education Service District Board of Directors Position Board Member Represented Zone Term Ends One Susie Jones, Chair East Multnomah County 6/30/2021 Two Helen Ying At Large 6/30/2021 Three Mary Botkin, Vice-Chair Central Portland 6/30/2021 Four Jessica Arzate Mid-Multnomah County 6/30/2021 Five Denyse Peterson N/NE Portland 6/30/2019 Six Kristin Cornuelle At Large 6/30/2019 Seven Siobhan Burke SE/SW Portland 6/30/2019 Administration Samuel Breyer Superintendent Sascha Perrins Assistant Superintendent Sean Woodard Director, Human Resource Services Laura Conroy Director, Strategic Engagement Geography and Population The Multnomah ESD is the second-largest education service district in Oregon. The eight school districts (referred to as “component districts”) in MESD's region are diverse and include inner city, suburban and rural schools. MESD Component Districts MESD Eight Component Districts District Total Schools Total Enrollment District Total Schools Total Enrollment Centennial 12 6,184 Parkrose 7 3,066 Corbett 1 1,222 Portland 107 48,677 David Douglas 15 10,009 Reynolds 19 11,019 Gresham-Barlow 22 11,981 Riverdale 2 637 Source: ODE Fall Membership Report 2018/19, http://www.oregon.gov/ode/reports-and-data/students Within these districts are 185 schools with more than 92,000 students over a geographic area that stretches from Portland's west hills to the foothills of the Cascades, and from the Columbia River on the north to the Clackamas County line on the south. An estimated population of 760,000 live within the Multnomah ESD boundary which includes Multnomah County and extends into Clackamas and Washington counties along school district boundaries. Services Provided (Local Service Plan) Every Oregon ESD, working with their component school districts, must annually develop a Local Service Plan which determines how the State School Funds (SSF) will be used. Ninety percent of the SSF revenue received by an ESD is subject to this process. The Local Service Plan determines programs and services that the ESD will offer its component districts for the following fiscal year. In accordance with Oregon Revised Statute 334.177, the remaining ten percent of the SSF revenue is used for the general operating costs of the ESD. The Local Service Plan must include services from at least the following categories: special education, technology, and school improvement and administrative support. The plan must also include any "entrepreneurial services" that the ESD intends to offer to any entity that is not a component school district either outside of the ESD boundary or inside the ESD boundary. Under the Resolution Process, at least two-thirds of the school districts in an ESD, representing more than one-half of the student population, must approve the Local Service Plan. MESD provides the following services to its component school districts: Student Services - Special Education provides services to the component districts as well as to districts outside of Multnomah County. Special education partners with community organizations and the component districts to ensure that every child with a disability is provided the best educational opportunities available. Student Services - School Health provides and coordinates specialized services that support the educational experience for students enrolled in our component districts as well as some Clackamas County districts. The department works to ensure that all areas of health are supported for our students’ physical, emotional and mental well-being. Together a connection is formed between health and education. Instructional Services provides instruction for students enrolled in regional programs, instructional support for schools, and professional development for educators on a variety of topics. These programs offer a variety of enrichment and enhancement opportunities which complement instruction within the component districts as well as to several districts outside of Multnomah County. Students in the District’s educational programs receive comprehensive educational support, social services, career training, college assistance, environmental education, and specialized education services. These programs emphasize compassion for others, nonviolent ways of settling disputes, resiliency to handle life’s challenges, and preparation for college, work, parenthood and civic responsibility. Technology Services provides services both to the component districts through resolution and contracted services as well as internally to the District. The goal of Technology Services is to deliver administrative computer technology and support designed to increase the component district’s efficiency and improve internal and external communications. The services fall into four categories: Student Information Services, Business Systems Support, Network Services, and Internal Agency Support. Administrative and Support Services provides services for component school districts, including but not limited to services designed to consolidate component school district business functions, liaison services between the Department of Education and component school districts, registration of children being taught by private teachers, parents or legal guardians pursuant to ORS 339.035, and substitute teacher registration and administration. Other support services include home school registration and courier services. Multnomah Education Service District Organization Chart June 18, 2019 Financial Structure The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. A budget is prepared and legally adopted for each governmental fund type on the modified accrual basis of accounting in the main program categories required by the Oregon Local Budget Law. The District uses the following fund types: Budgetary Funds: General Fund - accounts for the general operating costs of the District and provides support services to other funds. For accounting purposes, the District appropriates expenditures in three funds: the Operating Fund (6), the Risk Management and Reserve Fund (7), and the Facilities and Equipment Reserve Fund (4) that was formerly the Facilities Acquisition and Improvement Fund prior to FY 2015-16. Special Revenue Funds – these funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The MESD has two special revenue funds: the Resolution Services Fund (1) and the Contracted Services Fund (2). Debt Service Fund (3) - accounts for the payment and interest on the Limited Tax Pension Obligation (PERS) bonds and the 2004 Refunding General Obligation bonds. Non-Governmental Fund: Fiduciary Fund – serves as a pass-through for assets held in trustee capacity for others and not used to support the District’s own programs. The Agency Pass-Through Fund (5) is used for E-Rate revenue which is recorded as a liability and passed on to component Districts. The MESD is not required to budget resources and expenditures for this fund under Oregon Administrative Rule 150-294.388 (1)-(A), section 3. More information about the specific funds can be found in the Fund Financial Summaries and the Glossary. Budget Process The District is required by the State of Oregon to adopt an annual budget for all funds subject to the requirements of Local Budget Law as outlined in the 2011 Oregon Revised Statutes 297.405 to 297.555 and 297.990. The budget for each individual fund is a plan for the financial operations to be conducted during the coming fiscal year and is adopted annually, prior to July 1, by the Board after certification by the Multnomah County Tax Supervising and Conservation Commission (TSCC). The budget also provides the authority to levy property taxes. After adoption, the budget may be amended through procedures specified in State statute and Board policy. For each fund, the expenditures are appropriated by the following major functions: Instruction Support Services Enterprise & Community Services Facilities Acquisitions & Construction Debt Service Other Uses (Transit Payments) Fund Transfers Contingencies Appropriations may not legally be over-expended, except in the case of grant receipts which could not be reasonably estimated at the time the budget was adopted. Department directors may realign appropriation within a major function; however, transfers between major functions, even within the same fund, require Board approval. Appropriations lapse at the end of each fiscal year. Budget Committee The Budget Committee consists of the seven members of the MESD Board, along with an equal number of representatives, plus one, who are appointed by the MESD Board from among applicant members of component district boards or designees of component district boards. To be eligible for appointment, the appointive member must 1) live and be registered to vote in the district, and 2) not be an officer, agent or employee of the ESD. Members are appointed for three-year terms and may be reappointed for as many consecutive terms as deemed appropriate. The Superintendent is designated as budget officer and he/she or designee prepares the budget document and submits it to the Budget Committee for approval before presentation to the Board and the TSCC. Activities for all funds are included in the annual appropriated budget. The District begins its budgeting process by appointing Budget Committee members. Beginning in January, budget recommendations are developed by management and presented to the Budget Committee as the Proposed Budget in the spring. The Budget Committee meets, evaluates and approves the budget document at least 30 days prior to the scheduled TSCC public hearing. Public notices of the budget hearing are generally published in April, and the hearing is held in May. The budget is adopted, appropriations are made and the tax levy is declared no later than June 30. Multnomah Education Service District Current Budget Committee Budget Committee Member Representing Term Expires Jessica Arzate MESD Board Member June 30, 2021 Mary Botkin MESD Board Member June 30, 2021 Siobhan Burke MESD Board Member June 30, 2019 Kristin Cornuelle MESD Board Member June 30, 2019 Susie Jones MESD Board Member June 30, 2021 Denyse Peterson MESD Board Member June 30, 2019 Helen Ying MESD Board Member June 30, 2021 Ronald Hardin Centennial School District June 30, 2021 Marguerite Perry Corbett School District June 30, 2020 Frieda Christopher David Douglas School District June 30, 2021 John Hartsock Gresham-Barlow School District June 30, 2020 Dave Carter Parkrose School District June 30, 2020 Cynthia Le Portland Public School District June 30, 2021 Steven Gallagher Reynolds School District June 30, 2021 Paul Spellman Riverdale School District June 30, 2020 2019-2020 Budget Calendar January to March MESD management develops proposed budget MESD Board appoints Budget Committee members April 5, 2019 Budget Committee orientation April 9, 2019 Proposed budget and budget message presentation Budget Committee approves budget and tax levy April 17 & 23, 2019 Budget Committee work sessions, if needed The Budget Committee approved the budget on April 9, 2019. May 21, 2019 TSCC public hearing and budget certification (ORS 294.430) June 18, 2019 MESD Board adopts budget and certifies tax levy (ORS 294.435) Supplemental Adjustments Unexpected additional resources or reductions may be added to the budget through the use of a supplemental budget and appropriation resolution. Adjustments less than 10% of the fund’s original budget may be adopted by the Board at a regular meeting. A supplemental budget greater than 10% of the fund’s original budget requires hearings before the public, public notices and approval by the Board. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control (major function levels). Such transfers require approval by the Board. Consolidated Schedules This section includes three combining statements each displaying the agency’s six budgetary funds in separate columns. The Fund Summary displays all the resources and requirements of the agency. The Revenue Detail expands on the revenue section of the previous Fund Summary report. In the same way, the Expenditure Summary expands on the expenditure line. It shows three different perspectives including expenditures by department, by function and lastly by major category. The next report describes the District’s interfund transfers and overhead charges. The final reports in the section display the full-time equivalent positions and actual positions by division within each department as well as by major function. Combining Fund Summary- Budgetary Funds Program Funds Support Funds Resolution Services Contracted Services Operating Debt Service Facilities & Equipment Reserve Risk Management Reserve Total Resources Beginning Fund Balance 5,000,000 1,500,000 3,650,000 1,113,000 775,000 12,038,000 Revenues Property Taxes 34,300,000 34,300,000 State School Fund 10,166,833 10,166,833 Local Sources 17,500 17,523,814 5,945 25,000 17,572,259 State Sources 2,075,356 6,522,893 8,598,249 Federal Sources 1,303,237 1,303,237 Investment Earnings 280,000 30,000 310,000 Sales of Goods & Services 9,122 9,122 Other Revenues 280,775 458,891 334,940 1,074,606 Services to Other Funds 3,193,364 897,990 4,091,354 Total Revenues 46,840,464 25,817,957 620,885 3,223,364 25,000 897,990 77,425,660 Transfers In & Overhead Revenues Overhead Revenues 730,000 730,000 From Resolution Services 4,446,683 145,000 4,591,683 From Operating 259,200 259,200 Total Transfers In/Overhead 5,176,683 404,200 5,580,883 TOTAL RESOURCES 51,840,464 27,317,957 9,447,568 3,223,364 1,542,200 1,672,990 95,044,543 Requirements Total Expenditures 43,015,376 25,187,582 5,886,939 3,223,364 920,200 918,290 79,151,751 Transfers Out & Overhead Charges Overhead Charges 730,000 730,000 To Facilities & Equip Reserve 145,000 259,200 404,200 To Operating 4,446,683 4,446,683 Total Transfers Out/Overhead 4,591,683 730,000 259,200 5,580,883 Contingency 4,233,405 1,400,375 101,429 422,000 254,700 6,411,909 Ending Fund Balance 3,200,000 200,000 500,000 3,900,000 TOTAL REQUIREMENTS 51,840,464 27,317,957 9,447,568 3,223,364 1,542,200 1,672,990 95,044,543 Combining Fund Summary- Budgetary Funds Property Taxes Current Year Taxes 33,770,000 33,770,000 Prior Year Taxes 519,000 519,000 Penalties & Interest Taxes 11,000 11,000 Total Property Taxes 34,300,000 34,300,000 State School Fund State School Support Fund 10,166,833 10,166,833 Total State School Fund 10,166,833 Local Sources 10,166,833 State Sources Other Restricted Grants In Aid 2,026,356 501,863 2,528,219 Other State Revenue 49,000 49,000 ODE Contract Revenue 6,021,030 6,021,030 Total State Sources 2,075,356 6,522,893 8,598,249 Federal Sources Restricted Revenue From Fed 257,070 257,070 Title I Revenue 732,615 732,615 Natnl School Lunch Program Rev 193,910 193,910 IDEA Revenue 119,642 119,642 Total Federal Sources 1,303,237 Investment Earnings 1,303,237 Interest on Investments 280,000 30,000 310,000 Total Investment Earnings Sales of Goods & Services 280,000 30,000 310,000 Other Revenues TSPC PDC Fees 10,000 5,000 15,000 Rental/Lease Income 23,940 23,940 Contributions 25,574 25,574 Fees-Non-Component Districts 280,000 280,000 Miscellaneous Revenue 287,640 26,000 313,640 Revenue From Non-LEAs 19,466 104,000 123,466 Allocated MAC Reven 242,999 242,999 Restricted-Intermediate Source 18,310 31,677 49,987 Total Other Revenues 280,775 458,891 334,940 1,074,606 Services to Other Funds Services To Other Funds 3,193,364 897,990 4,091,354 Total Services to Other Funds 3,193,364 897,990 4,091,354 Total Revenues 46,840,464 25,817,957 620,885 3,223,364 25,000 897,990 77,425,660 Combining Expenditure Summary- Budgetary Funds Program Funds Resolution Contracted Support Funds Debt Facilities & Equipment Risk Management By Department Services Services Operating Service Reserve Reserve Total Debt Services 3,223,364 3,223,364 Total Expenditures by Department By Function 43,015,376 25,187,582 5,886,939 3,223,364 920,200 918,290 79,151,751 Debt Service 3,223,364 3,223,364 Total Expenditures by Function 43,015,376 25,187,582 5,886,939 3,223,364 920,200 918,290 79,151,751 By Category Salaries 15,564,229 12,887,893 3,336,252 117,209 31,905,583 Associated Payroll Costs 10,034,940 8,298,358 1,920,036 65,214 20,318,548 Purchased Services 3,170,483 2,551,013 325,705 320,200 708,962 7,076,363 Supplies and Materials 780,322 1,419,318 304,946 26,905 2,531,491 Capital Outlay 13,402 31,000 600,000 644,402 Debt Service 3,223,364 3,223,364 Transit Payments 13,452,000 13,452,000 Total Expenditures by Category 43,015,376 25,187,582 5,886,939 3,223,364 920,200 918,290 79,151,751 Combining Expenditure Summary- Budgetary Funds Multnomah Education Service District 2019 - 2020 Fiscal Year Adopted Budget Interfund Transfers and Overhead Charges From Fund To Fund Amount Resolution Services To Facilities & Equip Reserve 145,000 This amount is being set aside to fund the future replacement of computer hardware necessary to serve the needs of the component districts. Resolution Services To Operating 4,446,683 In accordance with Oregon Revised Statute 334.177, a maximum of 10% of local revenues received (Property Taxes and State School Fund) are transferred to the Operating fund to pay for operating costs incurred by the Agency in support of services provided through the Resolution Services fund. Contracted Services Operating 730,000 A maximum 10% surcharge in the Contracted Services Fund is credited to the Operating Fund as overhead revenue to pay for costs incurred by the agency in support of services rendered. Operating To Facilities & Equip Reserve 259,200 This amount funds current and future repairs, replacement, and improvements of the Agency's facilities and equipment. Total Interfund Transfers and Overhead Charges 5,580,883 24 Budget Interfund Transfers and Overhead Multnomah Education Service District 2019 - 2020 Fiscal Year Adopted Budget Total Requirements by Fund and Function - All Budgetary Funds Program Funds Support Funds Resolution Services Contracted Services Operating Debt Service Facilities & Equipment Reserve Risk Management Reserve Total Requirements by Function 1000 Instruction* $ 8,954,193 $ 14,608,713 $ - $ - $ - $ - $ 23,562,906 2000 Support Services* 20,104,888 10,519,429 5,886,939 - 915,200 918,290 38,344,746 3000 Enterprise & Community Services* 504,295 789,440 - - - - 1,293,735 4000 Facilities Acquisition & Improvements - - - - 5,000 - 5,000 5000 Other Uses 13,452,000 - - - - - 13,452,000 5100 Debt Service - - - 3,223,364 - - 3,223,364 5200 Transfers Out 4,591,683 - 259,200 - - - 4,850,883 6000 Contingencies 4,233,405 1,400,375 101,429 - 422,000 254,700 6,411,909 Total Appropriations 51,840,464 27,317,957 6,247,568 3,223,364 1,342,200 1,172,990 91,144,543 7000 Unappropriated Ending Balance - - 3,200,000 - 200,000 500,000 3,900,000 Total Requirements 51,840,464 27,317,957 9,447,568 3,223,364 1,542,200 1,672,990 95,044,543 * For the purpose of this report, indirect overhead charges in the Contracted Services Fund is included as a requirement of the appropriate function. Other reports within the budget document show overhead charges in the Transfers Out and Overhead Charges section. Total Requirements by Fund and Function - All Budgetary Funds Combining FTE Summary- All Funds Program Funds Support Funds Risk Resolution Contracted Management Services Services Operating Reserve Total Full-Time Equivalent (FTE) by Department And Division Administration Administration 1.00 4.42 5.42 Communication Services 3.37 3.37 Total Administration 1.00 7.79 Facilities Services Facility Services 13.50 8.79 13.50 Transportation Services .47 .50 .97 Total Facilities Services .47 14.00 Business Services 14.47 Business Services Admin 1.00 1.00 Fiscal Services 8.00 1.00 9.00 Total Business Services 9.00 1.00 10.00 Human Resources Human Resources 8.75 8.75 Total Human Resources 8.75 Technology Services 8.75 Student Applications 14.14 14.14 Business Applications 1.52 1.52 Infrastructure Services 3.08 3.08 Internal Agency Support 5.91 5.91 Application Development 2.48 2.48 Support Services 3.65 3.65 Total Technology Services 17.22 6.13 7.43 Special Education Services Special Education 74.61 47.58 1.00 Helensview SPED 5.74 Related Services 4.50 28.60 30.78 123.19 5.74 33.10 Arata Creek 46.25 68.78 115.03 Total Special Education Services 131.10 144.96 1.00 School Health Services 277.06 Health Services 104.91 19.09 12.16 136.16 Total School Health Services 104.91 19.09 12.16 136.16 Combining FTE Summary- All Funds Program Funds Support Funds Risk Resolution Contracted Management Services Services Operating Reserve Total Instructional Services Instructional Services .65 .63 1.28 Curriculum & Instruction 4.24 2.05 6.29 Outdoor School 6.94 5.84 12.78 LTCT and Hospital 28.87 28.87 Helensview 18.17 4.24 22.41 Youth Correction Education 3.35 25.54 28.89 Alternative Pathways 2.50 2.50 Migrant Education 6.37 6.37 Total Instructional Services 33.35 75.41 .63 109.39 Total FTE 288.05 245.59 60.76 1.00 595.40 Full-Time Equivalent (FTE) by Function Instruction 115.87 169.94 285.81 Support Services 172.18 75.65 60.76 1.00 309.59 Enterprise & Community Service Total FTE 288.05 245.59 60.76 1.00 595.40 Positions by Department And Division Administration Administration 1.00 5.00 6.00 Communication Services 3.38 3.38 Total Administration 1.00 8.38 Facilities Services Facility Services 13.50 9.38 13.50 Transportation Services 1.00 .50 1.50 Total Facilities Services 1.00 14.00 Business Services 15.00 Business Services Admin 1.00 1.00 Fiscal Services 8.00 1.00 9.00 Total Business Services 9.00 1.00 10.00 Human Resources Human Resources 9.25 9.25 Total Human Resources 9.25 Technology Services 9.25 Student Applications 14.33 14.33 Business Applications 1.52 1.52 Infrastructure Services 3.08 3.08 Internal Agency Support 5.91 5.91 Application Development 2.48 2.48 Support Services 3.68 3.68 Total Technology Services 17.41 6.16 7.43 Special Education Services Special Education 83.05 52.99 1.00 Helensview SPED 6.10 Related Services 5.00 32.42 31.00 137.04 6.10 37.42 Arata Creek 50.60 74.84 125.44 Total Special Education Services 144.75 160.25 1.00 School Health Services 306.00 Health Services 128.60 20.40 13.00 162.00 Total School Health Services 128.60 20.40 13.00 162.00 Instructional Services Instructional Services .65 .63 1.28 Curriculum & Instruction 5.14 2.55 7.69 Outdoor School 7.51 6.36 13.87 LTCT and Hospital 31.91 31.91 Helensview 18.98 5.20 24.18 Youth Correction Education 3.47 26.97 30.44 Alternative Pathways 3.00 3.00 Migrant Education 7.00 7.00 Total Instructional Services 35.75 82.99 .63 119.37 Total Positions 328.51 269.80 62.69 1.00 662.00 Positions by Function Instruction 127.27 187.88 315.15 Support Services 201.24 81.92 62.69 1.00 346.85 Enterprise & Community Service Total Positions 328.51 269.80 62.69 1.00 662.00 Fund Financial Summaries The first statement in this section combines all funds and compares the previous two years actual amounts, the current year revised budget, the 2019-20 proposed budget, the 2019-20 approved budget and the 2019- 20 adopted budget. The 2019-20 Adopted Budget column ties to the total column in the Combining Fund Summary report. Following this statement is a series of reports showing each fund separately but showing the same columns as the combined summary for comparative purposes. Each of these statements summarizes both resources and requirements. Resources Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Beginning Fund Balance 11,009,683 9,264,851 11,866,544 11,716,900 11,716,900 12,038,000 Revenues Property Taxes 30,858,755 32,234,389 34,710,000 34,300,000 34,300,000 34,300,000 State School Fund 8,028,445 9,493,746 9,031,073 9,450,912 9,450,912 10,166,833 Local Sources 8,050,999 10,474,445 15,264,316 17,277,430 17,277,430 17,572,259 State Sources 8,886,988 7,973,594 8,113,454 9,051,167 9,051,167 8,598,249 Federal Sources 2,090,988 2,338,604 1,799,885 1,352,466 1,352,466 1,303,237 Investment Earnings 140,582 221,230 290,000 305,000 305,000 310,000 Sales of Goods & Services 1,116 2,085 9,122 9,122 9,122 9,122 Other Revenues 1,403,381 903,764 903,551 820,049 820,049 1,074,606 Services to Other Funds 3,532,685 3,697,022 3,842,555 4,155,886 4,155,886 4,091,354 Total Revenues Transfers In & Overhead Revenues 62,993,939 67,338,879 73,963,956 76,722,032 76,722,032 77,425,660 Overhead Revenues 897,565 651,127 782,000 781,577 781,577 730,000 From Resolution Services 4,018,720 4,302,813 4,579,107 4,520,091 4,520,091 4,591,683 From Contract Services 437,625 104,548 From Operating 559,500 757,291 256,100 259,200 259,200 259,200 Total Transfers In/Overhead 5,913,410 5,815,779 5,617,207 5,560,868 5,560,868 5,580,883 TOTAL RESOURCES 79,917,032 82,419,509 91,447,707 93,999,800 93,999,800 95,044,543 Requirements Total Expenditures Transfers Out & Overhead Charges 64,738,769 64,737,184 75,270,541 78,759,873 78,759,873 79,151,751 Overhead Charges 897,567 651,129 782,000 781,577 781,577 730,000 To Contract Services 268,282 To Debt Service 519,500 To Facilities & Equip Reserve 421,346 723,557 461,100 404,200 404,200 404,200 To Operating 4,074,999 4,172,813 4,374,107 4,375,091 4,375,091 4,446,683 Total Transfers Out/Overhead 5,913,412 5,815,781 5,617,207 5,560,868 5,560,868 5,580,883 Contingency 6,534,959 5,691,559 5,691,559 6,411,909 Total Budget 70,652,181 70,552,965 87,422,707 90,012,300 90,012,300 91,144,543 Ending Fund Balance 9,264,851 11,866,544 4,025,000 3,987,500 3,987,500 3,900,000 TOTAL REQUIREMENTS 79,917,032 82,419,509 91,447,707 93,999,800 93,999,800 95,044,543 Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 EXPENDITURE PERSPECTIVES By Department Administration 760,327 978,536 1,372,757 1,422,346 1,422,346 1,638,921 Facilities Services 1,107,426 873,295 1,305,555 933,389 933,389 957,428 Business Services 15,995,094 15,062,820 14,615,052 15,144,738 15,144,738 15,478,195 Human Resources 718,370 982,429 1,023,450 1,109,194 1,109,194 1,162,610 Technology Services 7,074,344 4,693,577 5,589,243 6,070,088 6,070,088 6,124,876 Special Education Services 13,242,430 15,910,102 20,662,661 22,294,336 22,294,336 22,945,097 School Health Services 9,299,991 10,250,942 11,976,489 12,646,252 12,646,252 12,651,622 Instructional Services 13,246,267 13,065,459 15,657,068 15,916,166 15,916,166 14,969,638 Debt Services 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Total Expenditures by Department 64,738,769 64,737,184 75,270,541 78,759,873 78,759,873 79,151,751 By Function Instruction 16,034,715 17,611,227 21,913,060 23,744,867 23,744,867 23,002,849 Support Services 27,908,976 29,556,208 35,756,457 37,343,503 37,343,503 38,174,803 Enterprise & Community Service 3,071,506 984,888 1,404,315 1,293,139 1,293,139 1,293,735 Facilities Acq. & Construction 124,837 328,443 5,000 5,000 5,000 Other Uses 14,429,052 13,540,000 12,800,000 13,150,000 13,150,000 13,452,000 Debt Service 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Total Expenditures by Function 64,738,769 64,737,184 75,270,541 78,759,873 78,759,873 79,151,751 By Category Salaries 24,311,769 26,367,128 31,408,981 31,897,740 31,897,740 31,905,583 Associated Payroll Costs 12,510,177 14,224,683 16,823,931 20,339,031 20,339,031 20,318,548 Purchased Services 7,882,486 5,688,993 7,802,384 7,012,698 7,012,698 7,076,363 Supplies and Materials 1,865,199 1,664,019 2,968,788 2,523,638 2,523,638 2,531,491 Capital Outlay 259,850 332,337 398,191 613,402 613,402 644,402 Debt Service 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Transfers 185,716 Transit Payments 14,429,052 13,540,000 12,800,000 13,150,000 13,150,000 13,452,000 Total Expenditures by Category 64,738,769 64,737,184 75,270,541 78,759,873 78,759,873 79,151,751 FTE SUMMARY By Fund 1 Resolution Services 257.89 280.63 282.44 287.48 287.48 288.05 2 Contracted Services 164.21 204.07 210.78 250.47 250.47 245.59 6 Operating 44.07 46.79 57.93 57.84 57.84 60.76 7 Risk Management Reserve 1.00 1.00 1.00 1.00 1.00 1.00 Total Number of FTE 467.17 532.49 552.15 596.79 596.79 595.40 The Resolution Services Fund accounts for the various programs provided to the component districts as specified by the resolutions. The major sources of revenues for this fund come exclusively from local property taxes and the State School Fund. In accordance with Oregon Revised Statute 334.177, a maximum of 10% of these revenues are transferred to the Operating Fund and used to pay for the general operating costs of the agency. The remaining 90% is apportioned to the eight component school districts according to extended average daily membership weighted (ADMw). Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Resources Beginning Fund Balance 3,174,207 3,086,043 5,489,831 5,000,000 5,000,000 5,000,000 Revenues Current Year Taxes 30,331,171 31,736,906 33,370,000 33,770,000 33,770,000 33,770,000 Prior Year Taxes 516,335 477,001 1,300,000 519,000 519,000 519,000 Penalties & Interest Taxes 11,249 20,482 40,000 11,000 11,000 11,000 State School Support Fund 8,028,445 9,493,746 9,031,073 9,450,912 9,450,912 10,166,833 Services to Component LEAs 22,435 170 17,500 10,000 10,000 10,000 Revenue From CTA NCD LEAs 26,045 33,724 7,500 7,500 7,500 E-Rate Revenue 302 2,215 SSF School Lunch Match (2,419) Other Restricted Grants In Aid 1,080,255 2,026,896 2,026,896 2,026,356 Other State Revenue 41,318 89,000 49,000 49,000 49,000 Medicaid SBHS Revenue 86,523 95,449 Contributions 6,893 655 Recovery of Pr Yr Expenditures 82,142 (574) Miscellaneous Revenue 2,025 491 30 Revenue From Non-LEAs 38,891 44,697 118,251 19,466 19,466 19,466 Allocated MAC Reven 163,112 208,515 209,041 243,364 243,364 242,999 Restricted-Intermediate Source 361,976 166,257 17,164 18,310 18,310 18,310 Total Revenues 39,677,544 43,398,888 44,192,059 46,125,448 46,125,448 46,840,464 Transfers In Total Transfers In TOTAL RESOURCES Requirements Total Expenditures Transfers Out 42,851,751 35,746,988 46,484,931 36,692,287 49,681,890 41,395,181 51,125,448 42,502,540 51,125,448 42,502,540 51,840,464 43,015,376 To Facilities & Equip Reserves 130,000 130,000 205,000 145,000 145,000 145,000 To Operating Funds 3,888,720 4,172,813 4,374,107 4,375,091 4,375,091 4,446,683 Total Transfers Out 4,018,720 4,302,813 4,579,107 4,520,091 4,520,091 4,591,683 Contingency 3,707,602 4,102,817 4,102,817 4,233,405 Total Budget 39,765,708 40,995,100 49,681,890 51,125,448 51,125,448 51,840,464 Ending Fund Balance 3,086,043 5,489,831 TOTAL REQUIREMENTS 42,851,751 46,484,931 49,681,890 51,125,448 51,125,448 51,840,464 Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 EXPENDITURE PERSPECTIVES By Department Administration 2,480 48,465 80,713 81,851 81,851 81,757 Facilities Services 36,829 40,088 39,433 20,848 20,848 20,686 Business Services 14,448,971 13,541,000 12,840,700 13,190,700 13,190,700 13,492,700 Human Resources 11,172 24,400 25,000 25,000 25,000 25,000 Technology Services 3,041,873 3,139,504 3,358,787 3,555,638 3,555,638 3,559,503 Special Education Services 7,858,822 8,064,253 11,012,845 11,013,911 11,013,911 11,346,849 School Health Services 6,785,241 7,730,258 9,112,404 9,285,956 9,285,956 9,391,316 Instructional Services 3,561,600 4,104,319 4,925,299 5,328,636 5,328,636 5,097,565 Total Expenditures by Department 35,746,988 36,692,287 41,395,181 42,502,540 42,502,540 43,015,376 By Function Instruction 6,651,973 6,826,367 8,749,571 9,134,516 9,134,516 8,954,193 Support Services 14,533,850 16,073,644 19,228,056 19,714,027 19,714,027 20,104,888 Enterprise & Community Service 132,113 252,276 617,554 503,997 503,997 504,295 Other Uses 14,429,052 13,540,000 12,800,000 13,150,000 13,150,000 13,452,000 Total Expenditures by Function 35,746,988 36,692,287 41,395,181 42,502,540 42,502,540 43,015,376 By Category Salaries 12,158,057 12,759,765 15,922,374 15,476,943 15,476,943 15,564,229 Associated Payroll Costs 6,545,874 7,108,996 8,582,315 9,977,758 9,977,758 10,034,940 Purchased Services 2,078,438 2,695,494 2,995,468 3,125,115 3,125,115 3,170,483 Supplies and Materials 482,756 582,412 982,833 759,322 759,322 780,322 Capital Outlay 52,811 5,620 112,191 13,402 13,402 13,402 Transit Payments 14,429,052 13,540,000 12,800,000 13,150,000 13,150,000 13,452,000 Total Expenditures by Category 35,746,988 36,692,287 41,395,181 42,502,540 42,502,540 43,015,376 The Contracted Services Fund accounts for activities carried on for the benefit of participating local school districts, as well as food dispensing programs. The fund is self-supporting through grants and other reimbursements, mainly from the state and participating school districts. A maximum surcharge of 10% is added to the cost of services from this fund in order to cover the operating costs of the agency. Where grants specify a different overhead rate the lower rate is applied. Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Resources Beginning Fund Balance 3,130,938 1,444,464 1,103,947 1,350,000 1,350,000 1,500,000 Revenues Services to Component LEAs 5,888,064 7,665,083 11,242,428 12,927,742 12,927,742 13,299,582 Revenue from Non-CTA LEAs 2,790,739 Revenue From CTA NCD LEAs 2,048,808 2,740,876 3,958,724 4,301,243 4,301,243 1,433,493 E-Rate Revenue 329 1,534 SSF School Lunch Match 2,292 2,419 Other Restricted Grants In Aid 199,728 1,024,885 736,966 494,172 494,172 501,863 Other State Revenue 2,037,967 (17,640) ODE Contract Revenue 6,639,657 5,844,276 7,287,488 6,481,099 6,481,099 6,021,030 Medicaid Admin Claiming Rev 199,669 47,511 Medicaid SBHS Revenue 613,365 820,281 160,000 Restricted Revenue From Fed 235,425 246,969 295,770 256,455 256,455 257,070 Title I Revenue 609,617 635,931 909,396 778,295 778,295 732,615 Natnl School Lunch Program Rev 164,843 161,282 167,195 196,110 196,110 193,910 Vocational Education 43,343 106,415 25,744 IDEA Revenue 122,862 92,962 163,526 121,606 121,606 119,642 Title II Revenue 10,073 122,879 78,254 Perkins Grant (84.048) 5,268 8,925 Sale of Meals-Reimb Programs Sale of Meals-NonReimb Program 100 275 Special Function Revenue 957 1,780 7,622 7,622 7,622 7,622 Sales To Component LEAs 59 30 1,500 1,500 1,500 1,500 TSPC PDC Fees 5,800 4,184 10,000 10,000 10,000 10,000 Community Yoga Class Donations 978 370 Contributions 108,970 26,771 25,574 25,574 25,574 25,574 Recovery of Pr Yr Expenditures 471 7,602 Miscellaneous Revenue 4,220 1,705 10,000 68,718 68,718 287,640 Revenue From Non-LEAs 219,651 193,648 72,800 88,000 88,000 104,000 Allocated MAC Reven (163,113) (208,515) Restricted-Intermediate Source 283,669 108,745 81,193 31,677 31,677 31,677 Total Revenues 19,283,072 19,641,183 25,234,180 25,789,813 25,789,813 25,817,957 Transfers In From Operating Funds 268,282 Total Transfers In 268,282 TOTAL RESOURCES Requirements Total Expenditures Transfers Out 22,414,010 19,634,354 21,353,929 19,494,305 26,338,127 24,088,204 27,139,813 25,678,688 27,139,813 25,678,688 27,317,957 25,187,582 Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Federal/State Indirect 897,567 651,129 782,000 781,577 781,577 730,000 To Facilities & Equip Reserves 251,346 104,548 To Operating Funds 186,279 Total Transfers Out 1,335,192 755,677 782,000 781,577 781,577 730,000 Contingency 1,467,923 679,548 679,548 1,400,375 Total Budget 20,969,546 20,249,982 26,338,127 27,139,813 27,139,813 27,317,957 Ending Fund Balance 1,444,464 1,103,947 TOTAL REQUIREMENTS 22,414,010 21,353,929 26,338,127 27,139,813 27,139,813 27,317,957 EXPENDITURE PERSPECTIVES By Department Administration 31,584 Facilities Services 2,212 308,443 Human Resources 34,873 Technology Services 2,691,887 605,338 800,362 734,674 734,674 748,755 Special Education Services 5,234,698 7,655,390 9,450,713 11,063,814 11,063,814 11,373,989 School Health Services 2,251,035 2,442,830 2,853,071 3,360,296 3,360,296 3,260,306 Instructional Services 9,456,734 8,722,078 10,675,615 10,519,904 10,519,904 9,804,532 Total Expenditures by Department 19,634,354 19,494,305 24,088,204 25,678,688 25,678,688 25,187,582 By Function Instruction 9,382,742 10,784,860 13,163,489 14,610,351 14,610,351 14,048,656 Support Services 7,533,080 7,974,639 9,829,511 10,279,195 10,279,195 10,349,486 Enterprise & Community Service 2,718,532 732,594 786,761 789,142 789,142 789,440 Facilities Acq. & Construction 2,212 308,443 Total Expenditures by Function 19,634,354 19,494,305 24,088,204 25,678,688 25,678,688 25,187,582 By Category Salaries 9,365,857 10,760,206 12,428,594 13,172,205 13,172,205 12,887,893 Associated Payroll Costs 4,577,468 5,616,571 6,604,059 8,495,819 8,495,819 8,298,358 Purchased Services 4,258,804 2,263,855 3,353,538 2,531,576 2,531,576 2,551,013 Supplies and Materials 1,234,689 851,799 1,702,013 1,479,088 1,479,088 1,419,318 Capital Outlay 11,820 1,874 31,000 Transfers 185,716 Total Expenditures by Category 19,634,354 19,494,305 24,088,204 25,678,688 25,678,688 25,187,582 The Operating Fund accounts for the general operating costs of the agency. In accordance with Oregon Revised Statute 334.177, 10% of local revenues from the Resolution Services Fund are transferred to this fund. In addition, a maximum 10% surcharge in the Contracted Services Fund is credited to this fund as overhead revenue. Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Resources Beginning Fund Balance 3,050,700 3,077,601 3,189,388 3,400,000 3,400,000 3,650,000 Revenues Services to Component LEAs 14,160 3,294 5,664 5,945 5,945 5,945 Revenue From CTA NCD LEAs 5,000 E-Rate Revenue 17,964 5,473 Other State Revenue 500 Interest on Investments 126,850 194,849 275,000 275,000 275,000 280,000 Fingerprinting Service Revenue 5,079 175 TSPC PDC Fees 6,660 4,800 7,000 5,000 5,000 5,000 Testing Service Revenue 1,605 90 Rental/Lease Income 23,940 23,940 23,940 23,940 23,940 23,940 Contributions 5,764 Recovery of Pr Yr Expenditures 14,509 (3,884) Fees-Non-Component Districts 158,487 236,802 260,000 260,000 260,000 280,000 Miscellaneous Revenue 20,574 26,822 26,000 26,000 26,000 26,000 Total Revenues 400,592 492,861 597,604 595,885 595,885 620,885 Transfers In Fees Charged to Grants 897,565 651,127 782,000 781,577 781,577 730,000 From Resolution Services Funds 3,888,720 4,172,813 4,374,107 4,375,091 4,375,091 4,446,683 From Contract Services Funds 186,279 Total Transfers In 4,972,564 4,823,940 5,156,107 5,156,668 5,156,668 5,176,683 TOTAL RESOURCES 8,423,856 8,394,402 8,943,099 9,152,553 9,152,553 9,447,568 Requirements Total Expenditures Transfers Out To Contract Services Funds To Debt Service Funds 4,786,755 519,500 4,447,723 268,282 5,162,029 5,463,616 5,463,616 5,886,939 To Facilities & Equip Reserves 40,000 489,009 256,100 259,200 259,200 259,200 Total Transfers Out 559,500 757,291 256,100 259,200 259,200 259,200 Contingency 424,970 229,737 229,737 101,429 Total Budget 5,346,255 5,205,014 5,843,099 5,952,553 5,952,553 6,247,568 Ending Fund Balance 3,077,601 3,189,388 3,100,000 3,200,000 3,200,000 3,200,000 TOTAL REQUIREMENTS 8,423,856 8,394,402 8,943,099 9,152,553 9,152,553 9,447,568 Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 EXPENDITURE PERSPECTIVES By Department Administration 757,847 898,487 1,292,044 1,340,495 1,340,495 1,557,164 Facilities Services 580,059 341,850 648,379 693,941 693,941 706,542 Business Services 862,559 854,689 895,724 981,511 981,511 1,077,766 Human Resources 707,198 923,156 988,517 1,073,656 1,073,656 1,127,049 Technology Services 1,238,534 922,166 1,071,094 1,089,776 1,089,776 1,126,618 Special Education Services 148,910 190,459 199,103 216,611 216,611 224,259 School Health Services 263,715 77,854 11,014 Instructional Services 227,933 239,062 56,154 67,626 67,626 67,541 Total Expenditures by Department 4,786,755 4,447,723 5,162,029 5,463,616 5,463,616 5,886,939 By Function Support Services 4,565,894 4,447,705 5,162,029 5,463,616 5,463,616 5,886,939 Enterprise & Community Service 220,861 18 Total Expenditures by Function 4,786,755 4,447,723 5,162,029 5,463,616 5,463,616 5,886,939 By Category Salaries 2,683,323 2,745,851 2,942,762 3,131,358 3,131,358 3,336,252 Associated Payroll Costs 1,331,363 1,443,355 1,577,958 1,800,022 1,800,022 1,920,036 Purchased Services 527,999 62,634 384,272 273,913 273,913 325,705 Supplies and Materials 129,972 195,883 232,037 258,323 258,323 304,946 Capital Outlay 114,098 25,000 Total Expenditures by Category 4,786,755 4,447,723 5,162,029 5,463,616 5,463,616 5,886,939 As of FY18, the Debt Service Fund accounts for the principal and interest payments associated with the agency's one current bond issue. The OSBA Limited Tax Pension Obligations, Series 2004 were sold to fund the District's Public Employees Retirement System (PERS) unfunded actuarial liability. A benefit expense is applied to all payrolls to generate the funds necessary to pay this debt service. The funding is then recognized in the Debt Service Fund as revenue for services to other funds. FY17 shows the Full Faith & Credit Refunding Obligations, Series 2004. This general obligation issue refunded the 1997 Certificates of Participation (COP) originally used to fund the construction of Alpha High School and Arata Creek School. The debt service payment was funded by at transfer from the Operating Fund. The final payment for the second issue was due in May 2017. Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Resources Beginning Fund Balance Revenues 8,619 81,272 64,481 Interest on Investments 13,732 26,381 15,000 30,000 30,000 30,000 Services To Other Funds 2,833,941 2,876,852 2,988,785 3,193,364 3,193,364 3,193,364 Total Revenues 2,847,673 2,903,233 3,003,785 3,223,364 3,223,364 3,223,364 Transfers In From Operating Funds Total Transfers In 519,500 519,500 TOTAL RESOURCES Requirements 3,375,792 2,984,505 3,068,266 3,223,364 3,223,364 3,223,364 Total Expenditures 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Total Budget 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Ending Fund Balance 81,272 64,481 TOTAL REQUIREMENTS 3,375,792 2,984,505 3,068,266 3,223,364 3,223,364 3,223,364 EXPENDITURE PERSPECTIVES By Department Debt Services 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Total Expenditures by Department 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 By Function Debt Service 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Total Expenditures by Function By Category 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Debt Service 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 Total Expenditures by Category 3,294,520 2,920,024 3,068,266 3,223,364 3,223,364 3,223,364 This fund accounts for facility acquisitions and improvements as well as major maintenance projects. In addition, it also accounts for the accumulation of resources for future acquisition of major software, equipment and furniture. It is funded primarily by transfers from the Operating and Resolution Funds. Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Resources Beginning Fund Balance 1,155,284 1,020,402 1,250,589 1,191,900 1,191,900 1,113,000 Revenues E-Rate Revenue 27,892 22,076 40,000 25,000 25,000 25,000 Other Unrestricted Grants 7,344 Miscellaneous Revenue 1,124 268 Total Revenues 36,360 22,344 40,000 25,000 25,000 25,000 Transfers In From Resolution Services Funds 130,000 130,000 205,000 145,000 145,000 145,000 From Contract Services Funds 251,346 104,548 From Operating Funds 40,000 489,009 256,100 259,200 259,200 259,200 Total Transfers In 421,346 723,557 461,100 404,200 404,200 404,200 TOTAL RESOURCES 1,612,990 1,766,303 1,751,689 1,621,100 1,621,100 1,542,200 Requirements Total Expenditures 592,588 515,714 668,300 908,600 908,600 920,200 Contingency 583,389 425,000 425,000 422,000 Total Budget 592,588 515,714 1,251,689 1,333,600 1,333,600 1,342,200 Ending Fund Balance 1,020,402 1,250,589 500,000 287,500 287,500 200,000 TOTAL REQUIREMENTS 1,612,990 1,766,303 1,751,689 1,621,100 1,621,100 1,542,200 Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 EXPENDITURE PERSPECTIVES By Department Facilities Services 490,538 489,145 309,300 218,600 218,600 230,200 Technology Services 102,050 26,569 359,000 690,000 690,000 690,000 Total Expenditures by Department 592,588 515,714 668,300 908,600 908,600 920,200 By Function Support Services 592,588 393,089 648,300 903,600 903,600 915,200 Facilities Acq. & Construction 122,625 20,000 5,000 5,000 5,000 Total Expenditures by Function 592,588 515,714 668,300 908,600 908,600 920,200 By Category Salaries 9,663 Associated Payroll Costs 6,194 Purchased Services 481,452 165,225 397,300 308,600 308,600 320,200 Supplies and Materials 14,158 25,646 10,000 Capital Outlay 81,121 324,843 261,000 600,000 600,000 600,000 Total Expenditures by Category 592,588 515,714 668,300 908,600 908,600 920,200 2019-2020 Fiscal Year Annual Budget 7- Risk Management Reserve Fund Summary The purpose of this fund is to pay for costs associated with risk management activities including insurance premiums, activities to prevent or minimize exposure and incurred losses. A benefit expense is applied to all payrolls to generate the funds necessary to support these activities. The funding is then recognized in the Risk Management Fund as revenue for services to other funds. Actual Actual Revised Proposed Approved Adopted 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Resources Beginning Fund Balance Revenues 489,935 555,069 768,308 775,000 775,000 775,000 Recovery of Pr Yr Expenditures 250 Miscellaneous Revenue Services To Other Funds Total Revenues 49,704 698,744 748,698 60,200 820,170 880,370 42,558 853,770 962,522 962,522 897,990 896,328 962,522 962,522 897,990 TOTAL RESOURCES 1,238,633 1,435,439 1,664,636 1,737,522 1,737,522 1,672,990 Requirements Total Expenditures 683,564 667,131 888,561 983,065 983,065 918,290 Contingency 351,075 254,457 254,457 254,700 Total Budget 683,564 667,131 1,239,636 1,237,522 1,237,522 1,172,990 Ending Fund Balance 555,069 768,308 425,000 500,000 500,000 500,000 TOTAL REQUIREMENTS 1,238,633 1,435,439 1,664,636 1,737,522 1,737,522 1,672,990 EXPENDITURE PERSPECTIVES By Department Business Services 683,564 667,131 878,628 972,527 972,527 907,729 Human Resources 9,933 10,538 10,538 10,561 Total Expenditures by Department 683,564 667,131 888,561 983,065 983,065 918,290 By Function Support Services 683,564 667,131 888,561 983,065 983,065 918,290 Total Expenditures by Function 683,564 667,131 888,561 983,065 983,065 918,290 By Category Salaries 94,869 101,306 115,251 117,234 117,234 117,209 Associated Payroll Costs 49,278 55,761 59,599 65,432 65,432 65,214 Purchased Services 535,793 501,785 671,806 773,494 773,494 708,962 Supplies and Materials 3,624 8,279 41,905 26,905 26,905 26,905 Total Expenditures by Category 683,564 667,131 888,561 983,065 983,065 918,290 Expenditures by Department This section includes two documents per department. The first provides a brief description of the department, its primary funding sources, and a description of any signification changes in services, funding and FTE in the proposed budget. The next document displays the expenditure perspectives by category, division and fund followed by position summaries by division and fund. Department Description: The purpose of Administration is to assist component district efforts in providing efficient and high quality education opportunities for students served. The Superintendent serves as the Board’s Executive Officer, Chief Administrator of MESD, Budget Officer, and Executive Officer of the Local Contract Review Board. The Superintendent is tasked with organizing the staff and facilities of MESD to optimize the quality of services and efficiency of operation and to delegate appropriate authority to members of the Administrative/Supervisory staff as necessary, in the judgment of the Superintendent, for the operation of MESD. Administration also includes Strategic Engagement which is responsible for partnerships, government affairs, research and data analytics, healthy schools, safe schools, and communications. Primary Funding Sources: Operating Fund Brief Description of significant department / service changes: This budget includes funding for a shared equity director position which will be funded in collaboration with Northwest Regional and Clackamas ESDs as well as a K-12/Higher Education Professional Development Project Manager. Brief Description of significant funding changes: Because 2019-20 will not be a Board member election year, election fees have been removed from the Board budget. In addition to the position changes described below, targeted investments to support the agency’s goals include a Strategic Plan Fund and an Equity Development Fund. Brief Description of FTE changes: Within the 2018-19 year, the wellness coordinator position was shifted to be more fully funded under Administration (0.75 FTE rather than 0.25 FTE). The proposed budget included the addition of a portion of an equity director position (equivalent to 0.42 FTE). The adopted budget includes the addition of a K-12/Higher Education Professional Development Project Manager (1.0 FTE, pilot program) as well as a partial position to support communications (equivalent to 0.42 FTE). 2019-2020 Fiscal Year Annual Budget Expenditures by Department 100- Administration EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 381,587 561,302 748,994 832,085 832,085 931,360 Associated Payroll Costs 163,755 243,937 348,787 411,529 411,529 464,321 Purchased Services 211,552 153,940 244,706 144,235 144,235 186,120 Supplies and Materials 3,433 19,357 30,270 34,497 34,497 57,120 Total by Category 760,327 978,536 1,372,757 1,422,346 1,422,346 1,638,921 By Division 100 Board of Directors 159,241 109,971 257,450 157,450 157,450 157,450 110 Administration 454,849 705,664 765,850 890,333 890,333 1,094,255 500 Communication Services 143,757 160,421 346,977 372,083 372,083 384,736 520 School Closure 2,480 2,480 2,480 2,480 2,480 2,480 By Fund Total by Division 760,327 978,536 1,372,757 1,422,346 1,422,346 1,638,921 1 Resolution Services 2,480 48,465 80,713 81,851 81,851 81,757 2 Contracted Services 31,584 6 Operating 757,847 898,487 1,292,044 1,340,495 1,340,495 1,557,164 Total by Fund 760,327 978,536 1,372,757 1,422,346 1,422,346 1,638,921 FTE SUMMARY By Division 110 Administration 2.00 4.00 4.00 4.42 4.42 5.42 500 Communication Services 1.00 1.27 2.52 2.95 2.95 3.37 Total Number of FTE 3.00 5.27 6.52 7.37 7.37 8.79 By Fund Resolution Services Contracted Services 1.00 1.00 1.00 1.00 1.00 6 Operating 3.00 4.27 5.52 6.37 6.37 7.79 Total Number of FTE 3.00 5.27 6.52 7.37 7.37 8.79 Department Description: The Facilities Services department provides high quality project management, maintenance, custodial and transportation services to all MESD-operated sites. In addition, the department provides mail distribution and office supply services to all ESD facilities. Services include: The Facilities Service team takes an active role in suggesting, planning and budgeting for capital projects. Once projects are approved, Facilities Service administers and manages these projects from bid process through completion. The Facilities Maintenance team provides a wide variety of repairs and support services including everything from roof repair to rearranging furniture. All repairs related to MESD buildings are either directly conducted by or supervised by Facilities staff. The Custodial staff provides services to the seven locations operated by MESD. They ensure that all the buildings are cleaned nightly during the school year and also perform minor repairs, and moving materials. Ainsworth Mail/Supply Room staff provides mail support for all agency staff as well as maintains a ready supply of forms and other office supplies. The transportation side of the department provides courier and transportation services between the MESD locations, MESD component districts, and school districts in Clackamas ESD and NW Regional ESD. Primary Funding Sources: Resolution and operating funds Brief Description of significant department / service changes: For 2019-20, all custodial positions are expected to increase from working 210 days to a full work-year, permitting deep cleaning and other duties during the summer months. Brief Description of significant funding changes: The proposed budget includes funding for a full custodial work-year. Brief Description of FTE changes: During the 2018-19 year, a custodial position was added to provide service to the newly leased Four Creeks building. There are no FTE changes currently planned for 2019-20. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 150- Facilities Services EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 277,808 336,580 374,066 403,598 403,598 403,490 Associated Payroll Costs 165,504 212,684 244,922 266,317 266,317 263,864 Purchased Services 464,138 (59,252) 581,967 181,974 181,974 193,574 Supplies and Materials 50,303 58,440 79,600 81,500 81,500 96,500 Capital Outlay 149,673 324,843 25,000 Total by Category 1,107,426 873,295 1,305,555 933,389 933,389 957,428 By Division 150 Facility Services 881,633 761,382 1,140,943 839,073 839,073 863,568 155 Transportation Services 198,325 94,684 141,612 71,316 71,316 70,860 510 Printing & Graphics 27,468 17,229 23,000 23,000 23,000 23,000 By Fund Total by Division 1,107,426 873,295 1,305,555 933,389 933,389 957,428 1 Resolution Services 36,829 40,088 39,433 20,848 20,848 20,686 2 Contracted Services 2,212 308,443 4 Facilities & Equipment Reserve 490,538 489,145 309,300 218,600 218,600 230,200 6 Operating 580,059 341,850 648,379 693,941 693,941 706,542 Total by Fund 1,107,426 873,295 1,305,555 933,389 933,389 957,428 FTE SUMMARY By Division 150 Facility Services 10.00 12.00 12.00 13.50 13.50 13.50 155 Transportation Services 1.00 1.00 1.52 .97 .97 .97 Total Number of FTE 11.00 13.00 13.52 14.47 14.47 14.47 By Fund 1 Resolution Services .50 .50 .50 .47 .47 .47 6 Operating 10.50 12.50 13.02 14.00 14.00 14.00 Total Number of FTE 11.00 13.00 13.52 14.47 14.47 14.47 Department Description: Business Services provides accounting, financial, budgeting, payroll, and purchasing services to the MESD. Fiscal Services include preparing the annual budget, preparing and maintaining the resolution service plan, preparing requests for proposals and managing bid and procurement processes, audit services and comprehensive annual financial report preparation, and providing fiscal leadership to the organization. Accounting Services performs all accounts payable, accounts receivable, and general ledger functions for the agency. Starting in 2017-18 Risk Management moved to Business Services. Primary Funding Sources: Operating Fund. Brief Description of significant department / service changes: No significant changes anticipated. Brief Description of significant funding changes: No significant changes anticipated. Brief Description of FTE changes: The adopted budget includes the addition of a Business & Operations Administrative Assistant. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 200- Business Services EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 600,927 642,715 702,340 748,753 748,753 804,892 Associated Payroll Costs 318,798 320,308 351,404 401,611 401,611 438,461 Purchased Services 621,705 541,494 706,001 805,299 805,299 740,767 Supplies and Materials 24,612 18,303 55,307 39,075 39,075 42,075 Transit Payments 14,429,052 13,540,000 12,800,000 13,150,000 13,150,000 13,452,000 Total by Category 15,995,094 15,062,820 14,615,052 15,144,738 15,144,738 15,478,195 By Division 210 Business Services Admin 173,062 195,219 204,143 230,394 230,394 230,015 220 Fiscal Services 1,392,980 1,327,601 1,610,909 1,764,344 1,764,344 1,796,180 221 Fiscal Services-Transits 14,429,052 13,540,000 12,800,000 13,150,000 13,150,000 13,452,000 By Fund Total by Division 15,995,094 15,062,820 14,615,052 15,144,738 15,144,738 15,478,195 1 Resolution Services 14,448,971 13,541,000 12,840,700 13,190,700 13,190,700 13,492,700 6 Operating 862,559 854,689 895,724 981,511 981,511 1,077,766 7 Risk Management Reserve 683,564 667,131 878,628 972,527 972,527 907,729 Total by Fund 15,995,094 15,062,820 14,615,052 15,144,738 15,144,738 15,478,195 FTE SUMMARY By Division 210 Business Services Admin 1.00 1.00 1.00 1.00 1.00 1.00 220 Fiscal Services 8.00 8.00 8.00 8.00 8.00 9.00 Total Number of FTE 9.00 9.00 9.00 9.00 9.00 10.00 By Fund 6 Operating 8.00 8.00 8.00 8.00 8.00 9.00 7 Risk Management Reserve 1.00 1.00 1.00 1.00 1.00 1.00 Total Number of FTE 9.00 9.00 9.00 9.00 9.00 10.00 Department Description: The Human Resources department supports the MESD community to succeed in the delivery of services to children and families by providing resources and knowledge to meet their personal and professional needs. This is accomplished through the recruitment and hiring of quality permanent and temporary staff, administration of employee benefits, management of worker’s compensation and leaves of absences, and tracking of licensure and professional development. Starting in 2017-18 Payroll moved to Human Resources as part of the Superintendent’s management realignment. Primary Funding Sources: Operating Fund Brief Description of significant department / service changes: No significant changes anticipated. Brief Description of significant funding changes: No significant changes anticipated. Brief Description of FTE changes: Within the 2018-19 year, the wellness coordinator position was shifted 0.25 FTE to Human Resources. The adopted budget includes the addition of 0.50 FTE to support regional convening. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 400- Human Resources EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 391,643 547,343 577,920 621,260 621,260 648,248 Associated Payroll Costs 237,120 353,933 382,540 426,344 426,344 452,772 Purchased Services 71,901 55,892 32,225 30,825 30,825 30,825 Supplies and Materials 17,706 25,261 30,765 30,765 30,765 30,765 Total by Category 718,370 982,429 1,023,450 1,109,194 1,109,194 1,162,610 By Division 400 Human Resources 718,370 982,429 1,023,450 1,109,194 1,109,194 1,162,610 By Fund Total by Division 718,370 982,429 1,023,450 1,109,194 1,109,194 1,162,610 1 Resolution Services 11,172 24,400 25,000 25,000 25,000 25,000 2 Contracted Services 34,873 6 Operating 707,198 923,156 988,517 1,073,656 1,073,656 1,127,049 7 Risk Management Reserve 9,933 10,538 10,538 10,561 Total by Fund 718,370 982,429 1,023,450 1,109,194 1,109,194 1,162,610 FTE SUMMARY By Division 400 Human Resources 6.00 8.47 8.00 8.25 8.25 8.75 Total Number of FTE 6.00 8.47 8.00 8.25 8.25 8.75 By Fund 2 Contracted Services 6 Operating .47 6.00 8.00 8.00 8.25 8.25 8.75 Total Number of FTE 6.00 8.47 8.00 8.25 8.25 8.75 Department Description: Multnomah ESD is a founding member of the Cascade Technology Alliance (CTA). This organization is created through the participation of the Multnomah ESD, Columbia Gorge ESD, Northwest Regional ESD, and Willamette ESD technology departments. The technology staffs from these ESDs have combined to form a single organizational group that serves their 53 constituent districts, as well as other public and nonprofit agencies in need of technology solutions. The Technology Services department provides services both to the component districts through resolution and contracted services as well as internally to MESD. The goal of Technology Services is to deliver administrative computer technology and support designed to increase the component district’s efficiency and improve internal and external communications. The services fall into four primary categories: Student Information Services, Business Systems Support, Network Services, and Internal Agency Support. Student Information Services provides comprehensive computer services for administrative student applications. CTA supports a web-based student information system with access for administrators, teachers and professional staff concerned with the management of student records. This integrated system includes demographics, scheduling, attendance, progress/grade reporting, graduation requirement tracking, state reporting, special education, and grade book access for parents and students. Business Systems Support provides extensive integrated administrative, financial and human resource computer systems. CTA supports a web-based financial and human resources system. The Network Services division manages the Wide Area Network (WAN). Management of the WAN responsibilities includes deployment of updated routers, router maintenance, network management and connection to the Internet, and other emerging networks. Lastly, Internal Agency Support provides Local Area Network (LAN) and desktop support services. Internal Agency Support provides industry standards based hardware and software to MESD employees and students. Primary Funding Sources: Resolution, contracted, and operating funds Brief Description of significant service/funding changes: A significant investment in network infrastructure is planned using the equipment reserve fund (Fund 4). Brief Description of FTE changes: Shifts occurring during the 2018-19 year include the reduction of an application development position through attrition. The adopted budget includes a portion of a position for project management of hardware implementation. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 600- Technology Services EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 2,561,525 2,216,329 2,603,054 2,519,357 2,519,357 2,557,708 Associated Payroll Costs 1,254,545 1,186,026 1,265,782 1,456,816 1,456,816 1,462,141 Purchased Services 3,054,568 1,143,888 1,196,133 1,212,922 1,212,922 1,224,034 Supplies and Materials 112,844 147,334 151,083 267,591 267,591 267,591 Capital Outlay 90,862 373,191 613,402 613,402 613,402 Total by Category 7,074,344 4,693,577 5,589,243 6,070,088 6,070,088 6,124,876 By Division 610 Student Applications 1,331,494 1,386,903 1,618,198 1,916,988 1,916,988 1,921,881 620 Business Applications 309,328 214,213 230,856 387,162 387,162 386,859 630 Infrastructure Services 1,692,736 1,680,270 2,000,476 2,116,191 2,116,191 2,117,062 640 Internal Agency Support 745,098 718,869 855,266 830,988 830,988 860,033 650 Application Development 422,296 312,980 499,276 386,055 386,055 385,544 660 Substitute Registration 82,940 87,966 84,085 84,085 84,085 90,286 695 Support Services 2,490,452 292,376 301,086 348,619 348,619 363,211 By Fund Total by Division 7,074,344 4,693,577 5,589,243 6,070,088 6,070,088 6,124,876 1 Resolution Services 3,041,873 3,139,504 3,358,787 3,555,638 3,555,638 3,559,503 2 Contracted Services 2,691,887 605,338 800,362 734,674 734,674 748,755 4 Facilities & Equipment Reserve 102,050 26,569 359,000 690,000 690,000 690,000 6 Operating 1,238,534 922,166 1,071,094 1,089,776 1,089,776 1,126,618 Total by Fund 7,074,344 4,693,577 5,589,243 6,070,088 6,070,088 6,124,876 FTE SUMMARY By Division 610 Student Applications 15.00 13.00 14.00 14.00 14.00 14.14 620 Business Applications 1.52 1.52 1.52 1.52 1.52 1.52 630 Infrastructure Services 2.83 2.83 2.83 3.08 3.08 3.08 640 Internal Agency Support 5.41 5.41 6.41 5.91 5.91 5.91 650 Application Development 3.18 3.18 3.18 2.48 2.48 2.48 695 Support Services 5.06 3.69 3.69 3.47 3.47 3.65 Total Number of FTE 33.00 29.63 31.63 30.46 30.46 30.78 By Fund 6 Operating 8.43 6.93 7.93 7.43 7.43 7.43 Total Number of FTE 33.00 29.63 31.63 30.46 30.46 30.78 Department Description: The Special Education Services Department (SPED) provides special education services for students K-21 to our component districts as well as to districts outside of Multnomah County. Staff includes teachers, educational assistants, behavioral and instructional consultants, school psychologists, speech pathologists, physical therapists, assistive technology consultants, occupational therapists, various levels of support staff, supervisors and a coordinator. Special Education Services collaborates with community organizations and our component districts to ensure that every child with a disability is provided the best educational opportunities available. The SPED department is organized into Functional Living Skills (FLS), FLS Alternative at Wheatley School, Arata/Burlingame/Knott/Four Creeks, and Related Services. In addition, each division is comprised of several programs. Primary Funding Sources: Resolution funds and contracts for service, IDEA, federal grants, and ODE sub-grants Brief Description of significant department / service changes: In the 2018-19 year, the Social & Emotional Skills Program (SESP) and Behavioral Health (BH) programs expanded to the Four Creeks building. A SPED classroom is expected to be added to the Helensview building in 2019-20. Brief Description of significant funding changes: Department services fluctuate to meet the needs of component districts and the regional student population. Brief Description of FTE changes: Staffing has increased significantly throughout 2018-19 year. Staffing increases are primarily in the SESP and BH programs, as programs expanded to the Four Creeks building and to additional classrooms within the Knott Creek building, and at the FLS Alternative program at Wheatley. Additions to staff are primarily Education Assistants. Relative to 2018-19 Adopted budget, the additional staff also includes approximately 8.5 licensed FTE, 3.0 supervisor FTE, 4.0 FTE for mental health support, 2 FTE for behavior support facilitation, 1 FTE for a Campus Safety Monitor, 1.56 FTE for School Health Assistants and 0.50 FTE for transition support. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 700- Special Education Services EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 7,126,798 8,677,263 11,305,791 11,647,455 11,647,455 11,950,702 Associated Payroll Costs 3,961,756 4,974,602 6,289,791 8,111,906 8,111,906 8,356,083 Purchased Services 1,474,801 1,809,252 2,231,926 1,919,491 1,919,491 2,008,792 Supplies and Materials 488,359 441,491 835,153 615,484 615,484 629,520 Capital Outlay 5,000 7,494 Transfers 185,716 Total by Category 13,242,430 15,910,102 20,662,661 22,294,336 22,294,336 22,945,097 By Division 710 EI/ECSE 242,647 4,242 23,674 23,674 23,674 23,674 750 Special Education 8,722,199 10,372,518 9,923,466 10,383,532 10,383,532 9,817,250 755 Helensview SPED 575,458 780 Related Services 1,352,008 1,459,479 2,069,128 2,522,612 2,522,612 2,758,243 940 LTCT and Hospital 959 1,053 938 938 938 938 960 Arata Creek 2,924,617 4,072,810 8,645,455 9,363,580 9,363,580 9,769,534 By Fund Total by Division 13,242,430 15,910,102 20,662,661 22,294,336 22,294,336 22,945,097 1 Resolution Services 7,858,822 8,064,253 11,012,845 11,013,911 11,013,911 11,346,849 2 Contracted Services 5,234,698 7,655,390 9,450,713 11,063,814 11,063,814 11,373,989 6 Operating 148,910 190,459 199,103 216,611 216,611 224,259 Total by Fund 13,242,430 15,910,102 20,662,661 22,294,336 22,294,336 22,945,097 FTE SUMMARY By Division 710 EI/ECSE 1.00 750 Special Education 109.79 144.34 125.69 132.54 132.54 123.19 755 Helensview SPED 5.74 780 Related Services 15.36 18.04 25.00 29.38 29.38 33.10 960 Arata Creek 39.74 47.68 70.36 110.04 110.04 115.03 Total Number of FTE 165.89 210.06 221.05 271.96 271.96 277.06 By Fund 6 Operating 1.00 1.00 1.00 1.00 1.00 1.00 Total Number of FTE 165.89 210.06 221.05 271.96 271.96 277.06 Department Description: The Department of School Health Services (SHS) provides and coordinates specialized health services that support the educational experience for students enrolled in our component districts as well as some Clackamas County districts. Staff includes nurses, school health assistants, support staff, outreach and eligibility specialists, audiologists and immunization specialists. The department coordinates the services MESD staff provides to students with parents and families, school district staff, community health care providers, health care systems, local and state health departments, hospital staff, and other community partners. The department works to ensure that all areas of health and education are supported for our students’ physical, emotional and mental well-being. Together, an essential connection is formed between health and education helping Oregon achieve its vision for health and education transformation. The Department of School Health Services is comprised of many programs, including population-based nursing services, contracted and grant funded nursing services, special needs nursing including 1:1 nursing for students with complex health needs, nurse consultation, immunization tracking and monitoring, communicable disease surveillance, health education and training, health insurance eligibility and enrollment services. Primary Funding Sources: Resolution Funds, Local District Contracts Brief Description of significant department / service changes: Department services fluctuate to meet the needs of component districts and the regional student population. Brief Description of significant funding/FTE changes: Changes reflect fluctuations in component district needs as well as the proportion of services provided through Agency employees versus contracted positions. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 800- School Health Services EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 5,892,029 6,341,693 7,252,365 7,110,959 7,110,959 7,116,713 Associated Payroll Costs 3,000,510 3,246,299 4,034,320 4,598,562 4,598,562 4,587,178 Purchased Services 248,276 451,398 473,638 656,735 656,735 667,735 Supplies and Materials 151,681 211,552 216,166 279,996 279,996 279,996 Capital Outlay 7,495 Total by Category 9,299,991 10,250,942 11,976,489 12,646,252 12,646,252 12,651,622 By Division 450 Employee Committees 46,281 810 Health Services 9,253,710 10,250,942 11,976,489 12,646,252 12,646,252 12,651,622 By Fund Total by Division 9,299,991 10,250,942 11,976,489 12,646,252 12,646,252 12,651,622 1 Resolution Services 6,785,241 7,730,258 9,112,404 9,285,956 9,285,956 9,391,316 2 Contracted Services 2,251,035 2,442,830 2,853,071 3,360,296 3,360,296 3,260,306 6 Operating 263,715 77,854 11,014 Total by Fund 9,299,991 10,250,942 11,976,489 12,646,252 12,646,252 12,651,622 FTE SUMMARY By Division 450 Employee Committees 810 Health Services .25 119.93 142.03 144.90 136.16 136.16 136.16 Total Number of FTE 120.18 142.03 144.90 136.16 136.16 136.16 By Fund 6 Operating 5.49 4.54 13.91 12.16 12.16 12.16 Total Number of FTE 120.18 142.03 144.90 136.16 136.16 136.16 Department Description: The Instructional Services department provides a variety of value added services to teachers, administrators, para-educators, students and parents in our component districts as well as to districts outside of Multnomah County. Students in MESD’s educational programs receive comprehensive educational support, social services, career training, college assistance, environmental education, and specialized education services within one or more of the following programs and/or schools: Incarcerated Programs, Helensview, Home School Registration, Migrant Education, and Outdoor School. These programs emphasize compassion for others, nonviolent ways of settling disputes, resiliency to handle life’s challenges, and preparation for college, work, parenthood, and civic responsibility. Instructional Services provides instruction for students enrolled in regional programs, instructional support for schools, and professional development for educators on a wide range of topics. These programs offer a variety of enrichment and enhancement opportunities which complement instruction within our component districts. Primary Funding Sources: Resolution Funds, Local District Contracts, ODE Contracts Brief Description of significant department / service changes: Department services changes to meet the needs of component districts and the regional student population. Brief Description of significant funding changes: The adopted budget includes significant reductions in contracts for hospital programs and youth detention education programs. Some contracts with ODE are still pending and/or estimated and will be adjusted in amendments during the budget year. We continually seek additional contract and grant opportunities to serve the needs of children and families. Brief Description of FTE changes: FTE changes are a result of changes in service requests and contracts. 2019-2020 Fiscal Year Annual Budget Expenditures by Department 900- Instructional Services EXPENDITURE PERSPECTIVES By Category Actual 2016-17 Actual 2017-18 Revised 2018-19 Proposed 2019-20 Approved 2019-20 Adopted 2019-20 Salaries 7,079,452 7,043,903 7,844,451 8,014,273 8,014,273 7,492,470 Associated Payroll Costs 3,408,189 3,686,894 3,906,385 4,665,946 4,665,946 4,293,728 Purchased Services 1,735,545 1,592,381 2,335,788 2,061,217 2,061,217 2,024,516 Supplies and Materials 1,016,261 742,281 1,570,444 1,174,730 1,174,730 1,127,924 Capital Outlay 6,820 31,000 Total by Category 13,246,267 13,065,459 15,657,068 15,916,166 15,916,166 14,969,638 By Division 850 Social Services 3,237 900 Instructional Services 275,463 306,100 126,607 135,269 135,269 135,102 910 Curriculum & Instruction 519,774 584,604 1,098,156 1,101,918 1,101,918 1,061,365 920 Outdoor School 2,938,789 3,040,439 4,317,987 4,195,036 4,195,036 4,227,581 940 LTCT and Hospital 3,790,575 3,233,883 3,217,174 3,395,290 3,395,290 3,038,496 950 Helensview 2,054,069 2,476,414 2,658,575 2,755,240 2,755,240 2,442,521 970 Youth Correction Education 3,154,670 2,774,183 3,386,284 3,502,054 3,502,054 3,223,002 980 Alternative Pathways 221,817 231,738 241,842 241,529 241,529 252,306 990 Migrant Education 287,873 418,098 610,443 589,830 589,830 589,265 Total by Division 13,246,267 13,065,459 15,657,068 15,916,166 15,916,166 14,969,638 By Fund 1 Resolution Services 3,561,600 4,104,319 4,925,299 5,328,636 5,328,636 5,097,565 2 Contracted Services 9,456,734 8,722,078 10,675,615 10,519,904 10,519,904 9,804,532 6 Operating 227,933 239,062 56,154 67,626 67,626 67,541 Total by Fund 13,246,267 13,065,459 15,657,068 15,916,166 15,916,166 14,969,638 FTE SUMMARY By Division 900 Instructional Services 2.16 2.19 1.25 1.28 1.28 1.28 910 Curriculum & Instruction 4.19 5.25 7.25 6.81 6.81 6.29 920 Outdoor School 11.43 11.41 13.65 12.78 12.78 12.78 940 LTCT and Hospital 41.43 32.19 31.07 32.88 32.88 28.87 950 Helensview 20.34 24.30 26.06 25.04 25.04 22.41 970 Youth Correction Education 33.62 31.59 30.32 31.66 31.66 28.89 980 Alternative Pathways 2.50 2.50 2.50 2.30 2.30 2.50 990 Migrant Education 3.43 5.60 5.43 6.37 6.37 6.37 Total Number of FTE 119.10 115.03 117.53 119.12 119.12 109.39 By Fund 6 Operating 1.65 1.55 .55 .63 .63 .63 Total Number of FTE 119.10 115.03 117.53 119.12 119.12 109.39 Debt Service and Capital Expenditures This section completes the budget picture by providing additional information describing details on the Agency’s debt issues and upcoming capital maintenance and equipment reserve expenditures Multnomah Education Service District Debt Service Schedule PERS UAL Bonding OSBA Limited Tax Pension Obligations, Series 2004 Total Principal Period Debt Annual Debt Balance Ending Principal Coupon Interest Service Service Remaining Dec-2011 883,658 883,658 Jun-2012 375,000 4.59% 883,658 1,258,658 2,142,316 32,330,000 Dec-2012 875,055 875,055 Jun-2013 510,000 4.77% 875,055 1,385,055 2,260,111 31,820,000 Dec-2013 862,884 862,884 Jun-2014 655,000 4.79% 862,884 1,517,884 2,380,768 31,165,000 Dec-2014 847,187 847,187 Jun-2015 810,000 4.92% 847,187 1,657,187 2,504,374 30,355,000 Dec-2015 827,249 827,249 Jun-2016 985,000 5.02% 827,249 1,812,249 2,639,498 29,370,000 Dec-2016 802,511 802,511 Jun-2017 1,170,000 5.12% 802,511 1,972,511 2,775,021 28,200,000 Dec-2017 772,541 772,541 Jun-2018 1,375,000 5.22% 772,541 2,147,541 2,920,082 26,825,000 Dec-2018 736,633 736,633 Jun-2019 1,595,000 5.32% 736,633 2,331,633 3,068,266 25,230,000 Dec-2019 694,182 694,182 Jun-2020 1,835,000 5.37% 694,182 2,529,182 3,223,364 23,395,000 Dec-2020 644,885 644,885 Jun-2021 2,095,000 5.42% 644,885 2,739,885 3,384,770 21,300,000 Dec-2021 588,079 588,079 Jun-2022 2,375,000 5.47% 588,079 2,963,079 3,551,158 18,925,000 Dec-2022 523,087 523,087 Jun-2023 2,680,000 5.53% 523,087 3,203,087 3,726,174 16,245,000 Dec-2023 449,012 449,012 Jun-2024 3,015,000 5.53% 449,012 3,464,012 3,913,024 13,230,000 Dec-2024 365,677 365,677 Jun-2025 3,370,000 5.53% 365,677 3,735,677 4,101,354 9,860,000 Dec-2025 272,530 272,530 Jun-2026 3,755,000 5.53% 272,530 4,027,530 4,300,061 6,105,000 Dec-2026 168,742 168,742 Jun-2027 4,170,000 5.53% 168,742 4,338,742 4,507,484 1,935,000 Dec-2027 53,483 53,483 Jun-2028 1,935,000 5.53% 53,483 1,988,483 2,041,967 0 Facilities and Equipment Reserve Plan Summary of Significant Changes from 2018-19 Facilities Repairs, Replacements & Improvements: Most repairs, equipment replacements, and building improvements are recorded in Fund 4. Expenditures are funded by an ongoing transfer from the Operating Fund which helps to reduce the financial impact of fluctuations from one year to the next. The District continues to monitor the fund activity and will review transfer amounts annually. Ainsworth Building: Due to positive roof inspection reports and some minor repairs completed in 2018-2019, we are able to once again extend the life of the roof. We have revised our estimate for the replacement in 2021-22 to $400 thousand. Some re-carpeting, continuing from 2018-19, as well as caulking and foundation maintenance is planned for 2019-20. Arata Creek and Burlingame Creek Buildings: In 2018-19, new non-proprietary fire panels were installed at both buildings. A compressor was replaced at Arata. Re-carpeting at both buildings, planned to occur in 2018-19, is now planned for 2019-20. Exterior painting and re-insulation of water line piping are planned for Arata. Interior painting, concrete work and a tree removal are planned for Burlingame Creek. Four Creeks and Knott Creek Buildings: The Agency again expanded classroom space by entering into a lease agreement with Reynolds School District for the Four Creeks building during 2018-19. Some modifications at these buildings were completed in 2018-19 to prepare the spaces for our programs and/or student population. At this time, no significant additional changes are planned at either site for 2019- 20. Helensview and Wheatley Buildings: In 2018-19, structural modifications in the kitchen and makerspace occurred at the Helensview building through a Career Technical Education (CTE) grant awarded to the school’s Phoenix program. Most of these expenditures were recorded in Fund 2 as the source of the funding was a grant. No significant changes are planned for either Wheatley or Helensview for 2019-20. Facilities and Equipment Reserve Plan Summary of Significant Changes from 2018-19 Technology Services Student Information Services: A large network infrastructure purchase is planned for 2019-20, which is anticipated to significantly reduce re-occurring costs in future years. Costs are being split between Student Information Services and Network Services. E-rate reimbursement is expected for the full portion expensed to this cost center. Replacement of other hardware, operating system software updates and Synergy Student Information System software enhancements continue in 2019-20. Business Systems Support: In 2016-17, Business Services began an efficiency and maintenance review of SunGard BusinessPLUS in hopes to increase productivity. This work will continue into 2019-20 and may require additional upgrades to the existing software. Network Services: A large network infrastructure purchase is planned for 2019-20, which is anticipated to significantly reduce re-occurring costs in future years. Costs are being split between Student Information Services and Network Services. Agency Services: Following a pilot project in 2017-18, meeting room technology updates occurred in 2018-19. No significant additional changes are planned for 2019-20. FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Ainsworth (1989) Repairs & Maintenance (non-routine) 32,689 24,400 25,100 25,900 26,700 27,500 Carpet Replacement (common areas) 11,000 5,000 Caulking and Foundation Work HVAC Repairs/Compressor Replacement Roof Replacement (25yr) 25,000 10,000 => => 400,000 Contingency 257,000 Subtotal 68,689 296,400 25,100 425,900 26,700 27,500 Arata Creek (1999) Repairs & Maintenance (non-routine) 30,300 28,600 29,500 30,400 31,300 32,200 Carpet Replacement (15 yr) Fire Panel => 16,000 20,000 HVAC Repairs/Compressor Replacement Painting - Exterior; Re-Insulate Water Line 9,000 15,000 Roof Replacement (20yr) => 30,000 Subtotal 55,300 63,600 59,500 30,400 31,300 32,200 Burlingame Creek "Alpha" (1998) Repairs & Maintenance (non-routine) 19,700 16,000 16,500 17,000 17,500 18,000 Basketball Court Cover Carpet Replacement (15 yr) 12,000 => 30,000 Concrete Work & Tree Removal Fire Panel Painting - Interior 16,300 6,600 5,000 Roof Replacement (20yr) => 80,000 Subtotal 48,000 57,600 96,500 17,000 17,500 18,000 Four Creeks Repairs & Maintenance (non-routine) 14,000 14,400 14,800 15,200 15,700 16,200 Subtotal 14,000 14,400 14,800 15,200 15,700 16,200 Helensview Repairs & Maintenance (non-routine) 75,700 17,500 18,000 18,500 19,100 19,700 Subtotal 75,700 17,500 18,000 18,500 19,100 19,700 Knott Repairs & Maintenance (non-routine) 35,000 14,400 14,800 15,200 15,700 16,200 Emergency Egress Work - 5,000 Subtotal 35,000 19,400 14,800 15,200 15,700 16,200 Wheatley Repairs & Maintenance (non-routine) 13,000 18,300 18,800 19,400 20,000 20,600 Subtotal 13,000 18,300 18,800 19,400 20,000 20,600 Total Expenditures 309,689 487,200 247,500 541,600 146,000 150,400 Funding Sources Beginning Fund Balance 426,250 362,661 381,661 383,361 90,961 194,161 Transfer from Operating Fund 246,100 249,200 249,200 249,200 249,200 249,200 Total Funding Sources 672,350 611,861 630,861 632,561 340,161 443,361 150-FACILITIES BALANCE 362,661 124,661 383,361 90,961 194,161 292,961 FY2020 Facilities & Equipment Reserve Plan Fund 4 Technology Equipment Reserve Plan Estimated Proposed Projected FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Student Information Systems Computer Hardware: Servers & Routers 190,000 100,000 100,000 100,000 100,000 100,000 Network Hardware Replacement 350,000 Software Updates & New Application Modules Contingency 10,000 25,000 25,000 25,000 25,000 25,000 Funding Sources Beginning Fund Balance 419,392 394,392 19,392 344,392 319,392 294,392 Transfer from Resolution Fund 175,000 100,000 100,000 100,000 100,000 100,000 E-Rate Revenue 350,000 Total Funding Sources 594,392 494,392 469,392 444,392 419,392 394,392 Ending Fund Balance 394,392 19,392 344,392 319,392 294,392 269,392 Business Systems Support Software: Application Updates & Pilots 13,000 25,000 25,000 Contingency 10,000 Funding Sources Beginning Fund Balance 56,196 53,196 38,196 48,196 58,196 43,196 Transfer from Operating Fund 10,000 10,000 10,000 10,000 10,000 10,000 Total Funding Sources 66,196 63,196 48,196 58,196 68,196 53,196 Ending Fund Balance 53,196 28,196 48,196 58,196 43,196 53,196 Network Services Network Hardware Replacement 71,000 150,000 90,000 Funding Sources Beginning Fund Balance 77,889 106,889 1,889 31,889 61,889 1,889 Transfer from Resolution Fund 30,000 45,000 30,000 30,000 30,000 30,000 E-Rate Revenue 70,000 - Total Funding Sources 177,889 151,889 31,889 61,889 91,889 31,889 Ending Fund Balance 106,889 1,889 31,889 61,889 1,889 31,889 Agency Support Meeting & Conference Room Hardware Agency Equipment 75,000 40,000 40,000 40,000 40,000 40,000 Contingency 155,000 Funding Sources Beginning Fund Balance 270,862 195,862 180,862 165,862 150,862 135,862 E-Rate Revenue - 25,000 25,000 25,000 25,000 25,000 Total Funding Sources 270,862 220,862 205,862 190,862 175,862 160,862 Ending Fund Balance 195,862 25,862 165,862 150,862 135,862 120,862 600-TECHNOLOGY BALANCE 750,339 75,339 590,339 590,339 475,339 475,339 Fund 4: Facilities and Equipment Reserve Summary Beginning Fund Balance 1,250,589 1,113,000 622,000 973,700 681,300 669,500 Total Transfers In 461,100 404,200 389,200 389,200 389,200 389,200 Total Other Revenues 70,000 25,000 25,000 25,000 25,000 25,000 Total Expenditures 668,689 920,200 412,500 706,600 426,000 315,400 Total Contingency - 422,000 - - - - Fund 4 Ending Fund Balance 1,113,000 200,000 973,700 681,300 669,500 768,300 Appendix The final section within this budget document displays the public notices and resolutions followed by a glossary providing definitions of the District’s funds as well as definitions of functions and other terms. Public Notices Budget Committee Meeting, Online: www.multnomahesd.org, March 21, 2019 NOTICE OF MULTNOMAH EDUCATION SERVICE DISTRICT BUDGET COMMITTEE MEETING A public meeting of the MESD Budget Committee of the Multnomah Education Service District, Multnomah County, State of Oregon, to discuss the budget for the fiscal year July 1, 2019 to June 30, 2020, will be held at 11611 NE Ainsworth Circle, Portland, Oregon 97220 in the Board Room. The meeting will take place on Tuesday, April 9, 2019 at 6:00 p.m. The purpose of the meeting is to receive the budget message and to receive public comment on the budget. A copy of the budget document may be inspected or obtained in the Business Services Office at 11611 NE Ainsworth Circle, Portland, OR 97220, beginning Friday, April 5, 2019 between the hours of 7:30 a.m. and 4:30 p.m. or viewed on the MESD website: www.multnomahesd.org This is a public meeting where deliberation of the MESD Budget Committee will take place. Any person may appear at the meeting and discuss the proposed programs with the MESD Budget Committee. Additional MESD Budget Committee meetings, if needed, are scheduled to be held on Wednesday, April 17, 2019, and Tuesday, April 23, 2019 at 6:00 p.m. at the same location. All meetings are open to the public. Sam Breyer Budget Officer Multnomah Education Service District Public Notices Budget Committee Meeting, Newspaper Notice: The Oregonian, March 27, 2019 Public Notices TSCC Budget Hearing Meeting, Newspaper Notice: The Oregonian, May 1, 2019 RESOLUTION 18-039 Approval of the 2018-2019 Budget Calendar for Development of the Fiscal Year 2019-2020 Budget Background: Although the law does not require the adoption of a Budget Calendar by education service districts, there are certain legal requirements in the development of the budget. It is, therefore, in the best interest of the agency that the Board adopt the Budget Calendar as a guide for the orderly development of the proposed budget for the ensuing year. ***** WHEREAS, a Budget Calendar is desirable as a guide for the orderly development of the proposed budget for the ensuing fiscal year; and NOW THEREFORE BE IT RESOLVED, that the Multnomah Education Service District Board of Directors approved the 2018-2019 Budget Calendar for the Development of the Fiscal Year 2019-2020 Budget. Motion: Director Helen Ying moved to approve Resolution 17-039. Director Denyse Peterson seconded the motion. Action: The motion carried with Directors Arzate, Botkin, Burke, Cornuelle, Jones, Peterson and Ying voting aye. Motion passed 7-0. Multnomah ESD 2018-2019 Calendar for Fiscal Year 2019-2020 Budget Tuesday, July 17, 2018 MESD Board Meeting MESD Board MESD Board adopts the 2018-2019 Budget Calendar for 2019-20 (Resolution) Tuesday, November 20, 2018 MESD Board Meeting MESD Board Presentation by Auditors – Talbot, Korvola & Warwick of 2017-2018 Audit Thursday, January 10, 2019 Superintendent Council Meeting Council MESD Superintendent delivers to Component Districts 2019-2020 Local Service Plan Tuesday, January 15, 2019 MESD Board Meeting MESD Board MESD Board Approves 2019-2020 Local Service Plan (Resolution) January to April 2019 MESD Management develops the Proposed Budget MESD Staff February 2019 Component District Boards District Boards 2019-2020 Local Service Plan Approval [ORS 334.175(5)(b)/OAR 581-024-0285(2)] (Resolution) Tuesday, February 19, 2019 MESD Board appoints new Budget Committee members MESD Board adopts 2019-20 Budget Planning Parameters (Resolution) MESD Board Friday, March 29, 2019 Publish Notices of Budget Committee Meetings Newspaper notice within 5-30 days before meeting – (ORS 294.401) Online notice for at least 10 days before meeting Tuesday, April 2, 2019 Budget Committee Orientation Budget Committee Introduction to MESD and budget process for new and current committee members. Friday, April 5, 2019 Access to Proposed Budget Proposed budget document available to public – (ORS 294.401) Open online access to Proposed Budget to the Budget Committee – no deliberations allowed Tuesday, April 9, 2019 Budget Committee Meeting Budget Committee Proposed Budget Presentation Elect Board Committee Chair Presentation of revenue forecast and assumptions Superintendent’s Budget Message – (ORS 294.401) Proposed Budget Presentation and Department Summaries – (ORS 294.401) Public Comment Budget Committee Recommendations Approve Budget (Resolution) Multnomah ESD 2017-2018 Calendar for Fiscal Year 2018-2019 Budget (continued) Wednesday, April 17, 2019 Budget Committee Meeting if necessary Budget Committee Continue discussion of proposed budget presentation for approval Tuesday, April 23, 2019 Budget Committee Meeting if necessary Budget Committee Continue discussion of proposed budget presentation for approval Wednesday, May 1, 2019 Deadline to submit Approved Budget to TSCC [ORS 294.431(2), “twenty days before TSCC hearing”] Friday, May 3, 2019 Publish Notices of TSCC Public Hearing Newspaper notice within 5-30 days before hearing – (ORS 294.421)) FlashNews Alert notice of hearing – (ORS 294.421) Online notice for at least 10 days before meeting Tuesday, May 21, 2019 TSCC Public Hearing (ORS 294.430) TSCC Tuesday, June 18, 2019 MESD Board Meeting MESD Board Adopt Budget Appropriation & Certify Tax Levy (ORS 294.435) (Resolution) Each fund cannot be increased by more than 10% of Approved Budget Friday, July 12, 2019 Deadline to File Certification of Tax Levy with Counties RESOLUTION 19-008 – Fiscal Year 2019-2020 Budget Planning Parameters Background: The resolution planning process and budget development begins with the Multnomah Education Service District Budget Officer’s recommendation of planning parameters. The Board Finance Committee recommends approval: WHEREAS, the Board Finance Committee requested that the draft be taken to the Board on February 19, 2019 for discussion; and WHEREAS, the MESD Board of Directors discussed the draft Planning Parameters. NOW THEREFORE BE IT RESOLVED, that the Multnomah Education Service District Board of Directors authorizes budget authority in support of 2019-2020 budget planning parameters as follows: ****** Motion: Director Mary Botkin moved to approve Resolution 19-008. Director Jessica Arzate seconded the motion. Discussion: None Action: The motion carried with Directors Arzate, Botkin, Burke, Cornuelle, Jones, Peterson and Ying voting aye. Motion passed 7-0. 2019-2020 Budget Planning Parameters Revenues: The MESD will forecast State School Fund (SSF) revenue using the most current information available. For the purpose of preparing a proposed budget, the MESD will assume an $8.97 billion biennium ($4.4 billion year-one) SSF legislative appropriation. Under this assumption, the MESD’s estimated SSF revenue for 2019-2020 will be approximately $44.3 million per the current SSF formula with 90% going to component districts for service plan activities or transits. Other funding sources including federal grants, state contracts and local sources will be budgeted utilizing the most current information available. The indirect rate for grants passed through ODE will be budgeted at 9% unless specifically identified for individual grants or contracts. MESD will continue to charge a 10% administrative fee to non-component districts that purchase services listed in the Local Service Plan. Expenditures: The MESD will budget utilizing the most current information available on service level. The MESD will use the following payroll assumptions: Step increases are budgeted for eligible employees. The currently negotiated salary schedules for represented employees will be used for budgeting purposes. PERS defined rates for the 19-21 biennium are 14.56% for Tier I/II, 9.11% for OPSRP, and 13.74% for OPSRP Fire & Police. The MESD contribution rate for the PERS pickup is 6%. The increased employer contribution for health insurance premiums will be capped at 6%. Other payroll rates will be calculated to fund estimated annual liabilities for workers’ compensation and unemployment. The PERS UAL Bond debt service requirement of $3,223,364 will be funded by a benefit expense applied to all PERS eligible salaries and received into the Debt Service Fund as revenue for services to other funds. Ending Fund Balance and Contingency: The Operating Fund unappropriated ending fund balance will be set to at least 7% of total Property Tax and State School Fund adopted revenues, thereby ensuring that the agency’s Operating and Resolution funds cash flow needs are met until property tax revenues are received in November. Contingency will be set at an appropriate amount as a buffer for unexpected requirements. RESOLUTION 19-007 Approval of MESD Budget Committee Representatives for 2019 Background: The MESD Board of Directors in January of 2012 elected to move to a new Budget Committee structure to align with the passage of Senate Bill 250 to include members from component district Boards and has amended their Board Policies to reflect this change. Candidate Information: Ronald “Jess” Hardin-Centennial School District Board member with Centennial School District John Hartsock-Gresham Barlow School District Board member with Gresham Barlow School District Marguerite Perry-Corbett School District Board member with Corbett School District Dave Carter-Parkrose School District Board member with Parkrose School District Paul Spellman-Riverdale School District Board member with Riverdale School District Cynthia Le-Portland Public School District Chief Financial Officer with Portland Public School District Frieda Christopher-David Douglas School District Board Chair with David Douglas School District Steven Gallagher-Reynolds School District Facilities Supervisor for Reynolds School District ***** WHEREAS, the Centennial School District has submitted the name of Ronald Hardin, Gresham Barlow has submitted the name of John Hartsock, Corbett School District has submitted the name of Marguerite Perry, Parkrose School District has submitted the name of Dave Carter, Portland Public School District has submitted the name of Cynthia Le, David Douglas has submitted the name of Frieda Christopher, Reynolds School District has submitted the name of Steven Gallagher, and Riverdale School District has submitted the name of Paul Spellman to represent their districts on the MESD Budget Committee; and WHEREAS, the Multnomah Education Service District Board of Directors have reviewed and discussed the candidate’s information as submitted. NOW THEREFORE BE IT RESOLVED, that the Multnomah Education Service District Board of Directors approves Ronald Hardin, John Hartsock, Marguerite Perry, Dave Carter, Cynthia Le, Steven Gallagher, Frieda Christopher, and Paul Spellman to the MESD Budget Committee. Motion: Director Mary Botkin moved to approve Resolution 19-007. Director Jessica Arzate seconded the motion. Discussion: None Action: The motion carried with Directors Arzate, Botkin, Burke, Cornuelle, Jones, Peterson and Ying voting aye. Motion passed 7-0. RESOLUTION MBCM-19-002 Approval of the Proposed 2019-2020 Budget and Ad Valorem Property Tax Rate This resolution requests the MESD Budget Committee’s acknowledgement of receipt and approval of the Proposed 2019-2020 Budget Document and the Ad Valorem Property Tax Rate. Background: The Budget Officer is required by law to prepare a budget to submit to the MESD Budget Committee. The MESD Budget Committee should acknowledge receipt of that Proposed Budget and then is faced with two choices. The MESD Budget Committee can either approve the budget as submitted by the Budget Officer or approve a budget as modified by the MESD Budget Committee. Secondly, the MESD Budget Committee is required to approve the Ad Valorem Property Tax Rate. The Budget Officer recommends adoption of the following resolution: WHEREAS, the Budget Officer is required to prepare a Proposed Budget and present it to the MESD Budget Committee; and WHEREAS, the MESD Budget Committee has met in a public MESD Budget Committee Work Session on April 9 to review the financial programs of the MESD and prepare a budget for the operational and administrative expenses of the MESD; and WHEREAS, the MESD Budget Committee has received and reviewed the 2019-2020 Proposed Budget Document. NOW THEREFORE BE IT RESOLVED, that the MESD Budget Committee approves the 2019-2020 Proposed Budget in the following amounts: Resolution Services Fund Instruction $ 9,134,516 Support Services 19,714,027 Enterprise & Community Services 503,997 Other Uses 13,150,000 Transfers Out 4,520,091 Contingency 4,102,817 Total $ 51,125,448 Contracted Services Fund Instruction $ 15,222,913 Support Services 10,448,210 Enterprise & Community Services 789,142 Contingency 679,548 Total $ 27,139,813 Operating Fund Support Services $ 5,493,736 Transfers Out 259,200 Contingency 199,617 Total $ 5,952,553 Debt Service Fund Debt Service $ 3,223,364 Facilities & Equipment Reserve Fund Support Services $ 913,600 Facilities Acquisition and Improvement 5,000 Contingency 415,000 Total $ 1,333,600 Risk Management Reserve Fund Support Services $ 983,065 Contingency 254,457 Total $ 1,237,522 Total Appropriation, All Funds $ 90,012,300 Total Unappropriated Amounts, All Funds 3,987,500 TOTAL APPROVED BUDGET $ 93,999,800 BE IT FURTHER RESOLVED, that the MESD Budget Committee approves the levy of the Ad Valorem Tax Rate of $0.4576 per $1,000 of assessed value for the Resolution Fund. Motion: MESD Board Vice-Chair Mary Botkin moved to approve Resolution MBCM 19-002. Portland Public School District CFO Cynthia Le seconded the motion. Discussion: None Action: There being no further discussion the motion carried with Representatives Arzate, Botkin, Carter, Christopher, Cornuelle, Gallagher, Hartsock, Le and Spellman voting aye. Motion passed 9-0. RESOLUTION 19-030 Adoption of the Fiscal Year 2019-2020 Budget and Appropriations for All Funds, and Declaration of Taxes Imposed Background: Oregon Budget Law (ORS 294.435(2)) requires the Board adopt the budget and make appropriations by June 30, 2019, and certify the taxes imposed to the County Assessor prior to July 15, 2019. The law also requires that the approved budget be submitted by May 1st to the Tax Supervising and Conservation Commission (TSCC) and that the TSCC hold a public hearing prior to adoption. The approved budget was submitted in a timely fashion and the public hearing was held on May 21, 2019. The TSCC certified the 2019-20 approved budget without objection. ***** The Superintendent recommends adoption of the following resolution: WHEREAS, a public hearing and review of the budget previously approved by the Board Budget Committee was held on May 21, 2019 by the Tax Supervising and Conservation Commission (TSCC) and the budget has been certified by TSCC without objection; and WHEREAS, the following totals reflect the amounts approved by the Budget Committee and changes as noted in the budget document. NOW THEREFORE BE IT RESOLVED, that the Multnomah Education Service District Board of Directors hereby adopts the budget for the fiscal year 2019-20 in the sum of $95,044,543 now on file at the district Administrative Office; BE IT FURTHER RESOLVED, that the amounts for the fiscal year 2019-20 beginning July 1, 2019 and for the purposes shown below are hereby appropriated as follows: Multnomah Education Service District Budget and Appropriations for the Fiscal Year 2019-20 Resolution Services Fund Instruction $ 8,954,193 Support Services 20,104,888 Enterprise & Community Services 504,295 Other Uses 13,452,000 Transfers Out 4,591,683 Contingency 4,233,405 Total $ 51,840,464 Contracted Services Fund Instruction $ 14,608,713 Support Services 10,519,429 Enterprise & Community Services 789,440 Contingency 1,400,375 Total $ 27,317,957 Operating Fund Support Services $ 5,886,939 Transfers Out 259,200 Contingency 101,429 Total $ 6,247,568 Debt Service Fund Debt Service $ 3,223,364 Facilities & Equipment Reserve Fund Support Services $ 915,200 Facilities Acquisition and Improvement 5,000 Contingency 422,000 Total $ 1,342,200 Risk Management Reserve Fund Support Services $ 918,290 Contingency 254,700 Total $ 1,172,990 Total Appropriation, All Funds $ 91,144,543 Total Unappropriated Amounts, All Funds 3,900,000 TOTAL ADOPTED BUDGET $ 95,044,543 BE IT FURTHER RESOLVED, that the Multnomah Education Service District Board of Directors hereby levies the taxes provided for in the adopted budget at the rate of $0.4576 per $1,000 of assessed value for operations, and that these taxes are hereby imposed for the fiscal year 2019-20 upon the assessed value of all taxable property within the district and categorized as follows: Education Limitation Resolution Services Fund $0.4576 / $1,000 of Assessed Value Motion: Director Mary Botkin moved to approve Resolution 19-030. Director Helen Ying seconded the motion. Discussion: None Action: The motion carried with Directors Arzate, Botkin, Cornuelle, Jones, Peterson and Ying voting aye. Motion passed 6-0. Glossary Fund Definitions Agency Pass-Through Fund (Fund 5): This fund was established in 2008-09 to record funds being held by the MESD in a custodial capacity for the component districts. All monies received by the MESD for distribution to the component districts are recorded in the Agency Pass-Through Fund as a liability. Distributions to the component districts will reduce this liability. Contracted Services Fund (Fund 2): This fund accounts for activities carried on for the benefit of participating local school districts, as well as food dispensing programs. The fund is self-supporting through grants and other reimbursements, mainly from the state and participating school districts. A maximum surcharge of 10% is added to the cost of services from this fund in order to cover the operating costs of the agency. Where grants specify a different overhead rate the lower rate is applied. Debt Service Fund (Fund 3): This fund accounts for the principal and interest payments associated with the agency’s bond issues. The OSBA Limited Tax Pension Obligations, Series 2004 were sold to fund the District’s Public Employees Retirement System (PERS) unfunded actuarial liability. A benefit expense is applied to all payrolls to generate the funds necessary to pay this debt service. The funding is then recognized in the Debt Service Fund as revenue for services to other funds. Prior to July 2017, there was a second issue for the Full Faith & Credit Refunding Obligations, Series 2004. This general obligation issue refunded the 1997 Certificates of Participation (COP) originally used to fund the construction of Alpha High School, now renamed Burlingame Creek School, and Arata Creek School. It was funded by a transfer from the Operating Fund. The final payment on this obligation was due May 2017. Facilities and Equipment Reserve Fund (Fund 4): This fund accounts for facility improvements, major maintenance projects, and non-routine repairs. In addition, it also accounts for the accumulation of resources for future acquisition of major software, equipment and furniture. It is funded primarily by transfers from the Operating and Resolution Funds. This fund was formerly known as the Facilities Acquisition and Improvement Fund. Operating Fund (Fund 6): This fund accounts for the general operating costs of the agency. In accordance with Oregon Revised Statute 334.177, 10% of local revenues from the Resolution Services Fund are transferred to this fund. In addition, a maximum 10% surcharge in the Contracted Services Fund is credited to this fund as overhead revenue. Resolution Services Fund (Fund 1): This fund accounts for the various programs provided to the component districts as specified by the resolutions. The sources of revenues for this fund come exclusively from local property taxes and the State School Fund. In accordance with Oregon Revised Statute 334.177, a maximum of 10% of these revenues are transferred to the Operating Fund and used to pay for the general operating costs of the District. The remaining 90% is apportioned to the eight component school districts according to average daily membership weighted (ADMw). Risk Management and Reserve Fund (Fund 7): The purpose of this fund is to pay for costs associated with risk management activities including insurance premiums, activities to prevent or minimize exposure and incurred losses. A benefit expense is applied to all payrolls to generate the funds necessary to support these activities. The funding is then recognized in the Risk Management Fund as revenue for services to other funds. In the 2010-11 fiscal year a $450 thousand PERS reserve was established in this fund to help offset the sharp increases in future PERS costs to the Operating Fund which began in 2011-12. Annual transfers to the Operating Fund are intended to offset PERS costs as follows: 80% in 2011-12, 60% in 2012- 13, 40% in 2013-14, 30% in 2015-16, and 10% in 2016-17. Function Definitions 1000 – Instruction: This function relates to activities dealing directly with the teaching of students, or the interaction between teacher and students. Teaching may be provided for students in a school classroom, in another location such as a home or hospital, or in other learning situations such as those involving co- curricular activities. It may also be provided through some other approved medium such as computer instruction applications, television, radio, telephone, and correspondence. 2000 – Support Services: This function accounts for those services which provide administrative, technical, personal (such as guidance and health), and logistical support to facilitate and enhance instruction. Support Services exist to sustain and enhance instruction, and would not otherwise exist if not for instructional programs. 3000 – Enterprise and Community Services: These are activities concerned with operations that are financed and operated in a manner similar to private business enterprises where the stated intent is that the costs of providing goods and services to the students or general public are financed or recovered primarily through user charges and community programs. 4000 – Facilities Acquisition and Construction: This function relates to activities concerned with the acquisition of land and buildings; major remodeling and construction of buildings and major additions to buildings; initial installation or extension of service systems and other built-in equipment; and major improvements to sites. Major capital expenditures, which are defined as capital expenditures that are eligible for general obligation bonding are recorded here. 5000 – Other Uses: This function is used for servicing the debt of a district, conduit-type transfers from one fund to another fund and apportionment of funds by ESD. 6000 – Contingencies (for budget only): These are expenditures which cannot be foreseen and planned in the budget process because of an occurrence of an unusual or extraordinary event. 7000 – Unappropriated Ending Fund Balance: This is an estimate of funds needed to maintain operations of the District from July 1 of the ensuing fiscal year and the time when sufficient new revenues become available to meet cash flow needs of the fund. No expenditure shall be made from the unappropriated ending fund balance in the year in which it is budgeted. Other Terms Accounting System: The total structure of records and procedures which discover, record, classify, summarize, and report information on the financial position and results of operations of its government of any of its funds, fund types, balanced account groups, or organizational components. Accrual Basis: The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows. Activity: A specific and distinguished line of work performed by one or more organizational components of a government for the purpose of accomplishing a function for which the government is responsible. For example, food inspection is an activity performed in the discharge of the health function. ADM: Average daily membership is the year-to-date average of daily student enrollment. Appropriation: A legal authorization granted by the school board to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and as to the time when it may be expended. Assets: Resources owned or held by a government, which have monetary value. Budget: A plan of financial operation embodying an estimate of proposed means of financing them for a single fiscal year. A proposed budget is presented to the budget committee for approval. An approved budget is subsequently adopted as approved or modified by the Board. Budget Document: The instrument used by the budget-making authority to present a comprehensive financial program to the school board which is the appropriating body. The budget document contains a message from the Superintendent, together with a summary of the proposed expenditures, means of financing them, and the schedules supporting the summary. These schedules show in detail the information as to past years’ actual revenues, expenditures and other data used in making the estimates. Budgetary Control: The management of the district in accordance with an adopted budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenue. Budgetary Expenditures: Decreases in net current assets. In contrast to conventional expenditures, budgetary expenditures are limited in amount to exclude amounts represented by noncurrent liabilities. Due to their spending measurement focus, government fund types are concerned with the measurement of budgetary expenditures. Capital Outlay: Expenditures which result in the acquisition of or addition to fixed assets. Cash Basis: A basis of accounting under which transactions are recognized only when cash changes hands. Certified Employees: Includes teachers, counselors, media specialists, psychologists, social workers, nurses, athletic trainers, occupational speech, and physical therapists Classified Employees: Support staff, including instructional assistants, clerical staff, custodians and maintenance. Component Districts: The eight school districts within Multnomah County that MESD serves. Contingency: A special amount budgeted each year for unforeseen expenditures. Transfer of general operating contingency funds to cover unanticipated expenditures requires board approval. Current Resources: Resources to which recourse can be had to meet current obligations and expenditures. Examples are current assets, estimated revenues of a particular period not yet realized, transfers from other funds authorized but not received, and in the case of certain funds, bonds authorized and unissued. Deficit: The excess of the liabilities of a fund over its assets. Oregon school districts may not carry deficits in any fund. Expenditures: Decreases in net financial resources. Expenditures include current operating expenses which require the current or future use of net current assets, debt service, and capital outlays. FTE: Full-time equivalent staff. One FTE is defined as a regular position scheduled to work eight hours per day. Fixed Assets: Asset of a long-term character which is intended to continue to be held or used, such as land, buildings, improvements other than building, machinery, and equipment. Fixed Cost: A cost such as rent that does not change with increases or decreases in the amount of services provided. Functional Classification: Expenditure classification according to the principle purposes for which expenditures are made. Fund: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Indirect Cost: A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service. Liabilities: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed, or refunded at some future date. This term does not include encumbrances. Modified Accrual Basis: All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Under it, revenues are recognized when they become both “measurable” and “available to finance expenditures of the current period.” Expenditures are recognized when the related fund liability is incurred. Object: As used in expenditure classification this term applies to the articles purchased or the service obtained (as distinguished from the results obtained from expenditures). Examples are salaries, employee benefits, personal services, contractual services, materials, and supplies. Operating Budget: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is required by law. Payroll Costs: Amounts paid by the district on behalf of employees, in addition to gross salary. Examples are: Group Health Insurance Contributions to public employees’ retirement system (PERS) Social Security (FICA) Workers’ compensation Unemployment insurance Program Budget: A budget wherein expenditures are based primarily on programs of work and secondarily on character and object class. A program budget is a transitional type of budget between the traditional character and object class budget, on the one hand, and the performance budget, on the other hand. Purchase Order: A document which authorizes the delivery of specified merchandise or the rendering of certain services and the making of a charge for them. Resources: Estimated beginning fund balances on hand at the beginning of the fiscal year, plus all anticipated revenues. Revenues: Moneys received or anticipated by a local government from either tax or non-tax sources. Shared Services: This is a cooperative model with Clackamas, Willamette, Columbia Gorge and Northwest Regional ESDs. Together these agencies have agreed to allow resolution dollars 63 districts receive from these ESDs, combined with their general fund dollars, to flow to reciprocal ESDs for services thus broadening the expertise across all boundaries. This opens up opportunities for districts to receive other needed services from five ESD partners rather than just one. State School Fund: The major appropriation of state support for public schools. This fund consists of property tax loss replacement mandated by Measure 5 and state aid formerly called Basic School Support. The State School Fund is distributed to school districts according to a Legislature adopted formula. Supplemental Budget: Prepared to meet unexpected needs or to spend revenues not anticipated at the time the regular budget was adopted. A supplemental budget cannot be used to increase a tax levy. Transfers: Amounts distributed from one fund to finance activities in another fund. Unappropriated Ending Fund Balance: Amount budgeted to carryover to the next year’s budget to provide the district with needed cash flow until other money is received and to provide financial stability. This amount cannot be transferred by resolution or used through a supplemental budget during the year. Variable Cost: A cost that increases/decreases with increase/decreases in the amount of service provided such as the payment of a salary.