NWESD Legislative Report 2008-09

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NWESD serving and supporting education in 35 school districts

Northwest Educational Service District 189

ESD funding – what makes Educational Service Districts unique:

how NWESD 189 uses core funding:

Unlike local school districts, which receive the majority of their funding from the state, ESDs are largely self-supporting organizations sustained by competitive grants, cooperatives, and fees for service. “Core” funding – the amount allocated by the state – totals only 2.21% of ESD funding statewide (see reverse page) for fiscal year 2008/09. Core funding is based on the number of school districts and the size of the geographic region served. For NWESD 189, core funding decreased from $587,330 in 2008/09 to $528,726 in 2010/11.

why state core funding is critical: While core funding does not make up a large percentage of ESD funding, it provides a critical component. Indeed, core funding is the foundation on which all ESD service is built. It is the catalyst that turns $1 of funding into $45 of service (reverse page). Core funding ultimately generates revenue and services at no cost to the state. If core funding were reduced, students and taxpayers would suffer – student services would decrease and/or costs to the state would increase.

1601 R Avenue Anacortes, WA 98221

Core funding funds portions of myriad critical functions including: curriculum and instruction, grant development, teacher certification, and school financial services; services that benefit students, staff and schools in all 35 public school districts we serve and support.

history of core funding – a downward spiral: In 1979-80, the core allocation for all ESDs totaled just over $5 million, or 9 percent of total ESD revenue. Today, after three decades of inflation totaling 200.3 percent (1979-2010), the core allocation remains just over $5 million. Had the 1979-80 allocation been adjusted to keep pace with inflation, today’s allocation to the state’s nine ESDs would require more than $15 million.

the ESDs’ request/local districts’ need –maintain current core funding: As team players in a tough economic environment, the ESDs do not seek core funding increases from the state. Rather, to fulfill our commitments and responsibilities to local districts, we simply seek to maintain core funding at the current level.

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2009 Report to the Legislature Return on Annual Investment

Core Funding $585,393 2.70%

$1,896,995 8.74%

$587,330 2.71%

NWESD Revenues $21,698,058

$5,280,580 24.34%

$2,533,750 11.67%

Agency Contracts: OSPI/other state agency contracts for school district services (i.e., nursing corps, special education, transportation, early childhood services).

2009 Investment Return

2009 state investment (core funding) for NWESD structure generated $21,698,058 or $21.7 million to provide services to the region’s 35 school districts: Created an additional $36 for each state dollar invested as “core funding” $133 per student

$19,705,017 7.96% $35,790,127 14.46%

$5,477,639 2.21%

Federal Sources: Competitively gained contracts/grants (i.e., special education, school improvement). Payments for Cooperative Programs: School districts “pooled” funds for services (i.e., data management, special education, science materials).

$10,814,010 49.84%

Core Funding

Sources of Additional Revenues Generated

Washington State ESD Revenues $247,448,204

$73,509,316 29.71%

$52,597,240 21.26%

Payments for Other Programs: Local districts/other governmental contracts/foundation grants for specific education services (i.e., Gates Foundation award for early childhood education), other philanthropic awards. Local Sources: Workshop and certification fees, contracts to perform specific work for local entities.

Annual Legislative Appropriation (Core Funding) Purpose: Partially funds Educational Service Districts’ regional structure to perform legislatively mandated services and programs, including the support of school districts in reducing costs through shared funding and the generation of additional revenue for districts.

New Dollars Brought To Washington By ESD Efforts:

$60,368,865 24.40%

NWESD $5,577,999 or $5.6 million 2009 Investment Return

2009 state investment (core funding) for ESD structure generated $247.4 million to provide services to the state’s 295 school districts: Created an additional $44 for each state dollar invested as “core funding” $250.29 per student

1601 R Avenue Anacortes, WA 98221

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Washington ESD Network $40.2 million

f. 360.299.4070

www.nwesd.org


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