Budget Badge #07 - Budget: Long-Term Sustainability-Budget Badge #7

Video Transcription

Video Summary

This video (WASBO Budget Badge Series, Badge 7) explains how to budget for long-term sustainability in Washington school districts by focusing on ending fund balance and the required four-year budget forecast (F-195F). It reviews fund balance as net assets minus liabilities and emphasizes that estimating the current year’s ending fund balance early helps with midyear adjustments, possible budget extensions, and planning for the next year.<br /><br />The presenter outlines how to interpret fund balance trends (growing vs. shrinking) by analyzing revenue and expenditure drivers such as enrollment, levies, grants, staffing, salaries, and contracts, and determining whether changes are one-time or ongoing. Statewide data shows fund balance percentages have declined in recent years, with enrollment drops after 2019–20 cited as a key factor.<br /><br />The F-195F includes four-year projections for enrollment (general fund), staffing, revenues, expenditures, and beginning/ending fund balance by classification for all district funds, plus transfers. Only the initial year must be balanced, but negative out-year balances can affect OSPI financial health indicators. Best practices include realistic enrollment assumptions, using OSPI forecasting tools, inflating salaries/MSOCs appropriately, and clearly communicating assumptions to the board. Legislative actions (IPD, staffing requirements, program funding, levy rules) significantly affect forecasts.

Keywords

WASBO Budget Badge Series Badge 7

Washington school district budgeting

long-term financial sustainability

ending fund balance forecasting

F-195F four-year budget forecast

OSPI financial health indicators

enrollment projections and revenue drivers

expenditure drivers staffing salaries MSOCs