A Perspective Regarding The Districts Financial Concerns

Snohomish Education Association
A Perspective Regarding The District's Financial Concerns

The Snohomish Education Association has bargained a contract for its teachers for many years. Much time is spent studying the District's budget including its revenue sources and expenditures. Economic proposals are made based on available revenue and expected priorities of the District.

Please consider the following:
¨ SEA estimates the District in 2001-02 will have actually spent $53,000,000.

¨ The District has budgeted $58,207,000 in revenue for 2002-03, an increase over estimated expenditures in 2001-02 of $5,207,000.

¨ The District itself estimates its 2001-02 ending fund balance at $3,700,000 (though they have only budgeted a beginning 2002-03 fund balance of $3,205,000).

¨ SEA estimates the District's 2001-02 ending fund balance will be over $4,100,000.

¨ It should be noted the District's estimated ending 2001-02 fund balance has gone up from $3,000,000 when bargaining started, to $3,200,000 in June, to $3,700,000 in August. The final fund balance is determined when the books are closed in October.

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¨ The District's budgeted 2002-03 total resources (revenue plus fund balance) is $61,282,000 which compares with the $53,000,000 SEA estimates they will have actually spent in 2001-02.

¨ The District estimates SEA's September 6 proposal to cost an additional $1,412,234 in year one and an additional $892,678 in year two. The $1,412,234 compares with the $5,207,000 SEA believes they will have in additional revenue in 2002-03 over what will actually have been spent in 2001-02.

¨ The District says the two-year total cost of SEA's September 6 proposal is $3,717,146. This is an accumulative cost. The $1,412,234 spent in year one has to be maintained in year two for a total of 2,824,468. Added to that is the additional year two cost of $892,678.

¨ If one looks at accumulative cost over two or more years, one also must consider accumulative revenues over the same period. SEA estimates additional levy revenue for 2002-03 at $1,300,000. This will repeat in 2003-04 for a total of $2,600,000. Add to that the additional levy revenue for 2003-04 of $1,270,000 and you have an accumulative total over two years of $3,870,000. The same thing happens with all other continuing revenues the District collects.

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¨ Not all of the cost of SEA's proposal is financed out of levy dollars. Some, for example, is financed out of I-728 money. Unless revenue is designated to a categorical fund attached to a specific purpose, revenue goes into the District's General Fund, therefore making it difficult to state exactly what dollar came from a specific source.

¨ Yes, the District did commission some outside budget experts to review the District's financial condition. SEA was not informed such a review was to occur and the SEA Team was given their report only after it was completed. The experts did not consult with the SEA. The report indicates the District's estimated fund balance at $3,700,000 appears reasonable. Reasonable suggests a range. $4,000,000 + is probably within "reasonable."

SEA has said from the beginning, it is a question of priorities.
SEA strongly believes that today, it still is!
Please ask the District to compromise today!