Who is Responsible for Fiscal Management of Washington Public Schools?

The locally elected school district board of directors is ultimately responsible for the financial management of the school district. School boards hire superintendents who oversee the day-today management of the school district.

School districts prepare an annual budget for public review and comments by July 10 of each school year. Budgets must be formally adopted by the school board of directors before the beginning of the school year (September 1).

How is Money Allocated to Schools?

Most of the large state entitlement programs (basic education, special education, learning assistance, and bilingual) are paid through state apportionment formulas. Enrollment is the main driver of the funding formulas. Funding to the district increases or decreases with the actual enrollment reported during the year.

The basic education formula is complex. Formula factors include:

• Varying staff/student ratios for different grade levels.
• Separate staff unit allocations for administrative, instructional and classified staff.
• Weightings for the education and experience of staff (staff mix).
• Allocations for benefits, and non-employee related costs (NERC).
• Allocations for substitute teachers.
• Enhanced funding for vocational programs.
• Separate rates for Running Start students.

The average basic education allocation per full time student in 2004/2005 is $4,359.

How Does the State Distribute Money to Schools?

The state distributes money monthly based on apportionment formulas and reimbursement claimed through the grants management process. The state treasurer electronically transmits money to each county treasurer for each of the school districts. The county treasurer is the banker for the school district.

How Do School Districts Raise Local Money?

Article 7 of the State Constitution and chapter 84.52 RCW give school districts authority to levy local property taxes. The voters of the school district must approve such levies by a 60 percent "YES" vote in a district-wide levy election. School districts may run a levy for a particular fund only two times a calendar year. Unsuccessful levies may be resubmitted in subsequent years.

The state's levy lid law limits local levy funding. But, if you pass a levy, the state also partially equalizes local levy funding by providing local effort assistance to property poor school districts like ours. As you can see in the chart below, of the Colville School District, local taxes make up for 9% of our funding and local effort makes up for 5%, these two funds total a 14% loss when a local levy fails.

CSD Revenue Source General Fund

Retail sales tax and the business and occupational tax combined make up about 72% of all State General Fund revenue.

School districts record expenditures in five funds.

The Washington State Auditor examines school district accounting practices and compliance with state and federal requirements for receiving funding. In the Colville School District this is done once a year.

CSD General Fund Expenditures

Approximately 80% of all expenditures are for wages and benefits and 20% for the day-to-day maintenance and operation of the school district and are recorded in the General Fund.

How Does the State Help Pay for Construction of School Facilities?

The state assists school districts with the cost of construction and modernization of buildings used for instructional purpose. The state does not pay for school district administrative buildings, stadiums, or other non-instructional facilities, nor does it pay for land purchases.

Proceeds from the sale of timber on Common School Trust Lands is dedicated for state school construction matching payments. In recent years, these revenues have been insufficient and the Legislature has found it necessary to appropriate money from other sources. The additional monies have come from the State General Fund or from state-issued general obligation bonds.

Debt Service Fund Levies

Multi-year levies are used to pay the principal and interest on general obligation bonds sold to finance school construction and remodeling. Voter approval of a bond issue authorizes the sale of bonds and the levy of taxes over the life of the bonds. Tax revenues are deposited into the Debt Service Fund.

Transportation Vehicle Fund

The Transportation Vehicle Fund is used to pay for school buses or other school transportation equipment.

If you have any questions regarding the Colville School District's financial services, please feel free to contact our Business Office.

217 South Hofstetter
Colville WA 99114
(509) 684-7852

It has been a pleasure putting this information together for you,

Frederick McCurdy
Director of Business and Operations