Lake Washington School District (LWSD) Superintendent Dr. Chip Kimball will present the district’s “no cuts, no adds” 2010-11 budget to the school board at its Aug. 9 meeting, when the board of directors will hear public comment and then vote on the proposed budget.

There are no major changes in programs funded for the next school year and the board “will likely pass the budget without major changes,” according to LWSD Director of Communications Kathryn Reith.

Even though the 2010-11 budget will likely look similar to the 2009-10 budget, the district is seeking input from parents and community members.

The draft budget, presented by Barbara Posthumus, coordinator of business services, at the June 21 board meeting, is posted on the LWSD Web site at www.lwsd.org.

Parents and community members can e-mail publiccomment@lwsd.org or write to the district at P.O. Box 97039, Redmond, WA 98073-9739. The board will hold a public hearing on the budget at its Aug. 9 meeting, which will take place at 7 p.m. at the district’s Resource Center, 16250 NE 74th St., Redmond. Public comments will also be welcomed at that meeting.

The good news is that the district avoiding having to make tough cuts and layoffs this year and next because enrollment went up, which meant more state funding. But the bad news is that the LWSD may have to make significant budget cuts in the 2011-12 budget when when federal stimulus dollars will no longer be available unless the state economy improves significantly, according to Posthumus.

A total of 342 more students enrolled in the district in 2009-10 than expected. The proposed budget for 2010-11 accounts for that increase and an additional 89 students expected, for a total of 431 more than last year’s budget planning. Since basic education funding from the state is provided on a formula based on the number of students, the district’s revenue will increase accordingly. A 12 percent increase in the number of students in the special education program also triggered some additional funds to help pay for those services, although these services are not fully funded by the state.

The state legislature changed the formula that limits how much money the district can raise through local levy dollars. With this temporary higher levy cap and the amounts approved by voters in last February’s election, the district will be able to collect more in local levy dollars next year, for an increase of about $4.5 million. This increase will off-set state cuts to education as a result of the struggling economy. State funding increases include more money to cover non-salary costs and revenue to cover increases in employee health benefit costs.

Increases in local levy and state general funding make up for decreases in I-728 academic achievement money passed by voters in 2000, class size reduction funding and teacher preparation day funding that were part of the state budget cuts approved by the legislature.

With regard to federal dollars, funding through the federal stimulus package and through the Title I program for low-income students will be lower next year. The federal Safe & Drug Free Schools grant was eliminated as was state prevention/intervention funding. Increased enrollment also increases expenditures as more teachers are needed. An increase in special education needs also causes an increase in special education expenditures. Some fixed costs are also rising.

“Last year we spent a little less than we had in revenue, planning ahead for this year’s lower level of federal stimulus funding,” noted Deputy Superintendent Janene Fogard. “This year, our expenses will exceed revenues by less than $1 million as we spend some carryover dollars from programs like I-728 and make other one-time expenses. We will still be able to maintain our five percent fund balance required by board policy and continue to provide important educational programs.”

The draft budget presentation also highlighted a trend in school funding that was disturbing to board members.

As Kimball pointed out, “State basic funding has dropped from almost 57 percent of our budget to just over 53 percent since 2006-7. At the same time, we have become more dependent on local levy funds, which rose from 18.5 percent of the budget to 20.2 percent for next year. The state has essentially shifted more of the burden for education to local taxpayers.”