School Funding 101 Understanding School Funding Terms and Concepts.
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Transcript of School Funding 101 Understanding School Funding Terms and Concepts.
School Funding 101
Understanding School Funding Terms and Concepts
Montana School Funding 101General Fund Budget
• Two lawsuits that shaped our funding structure today.– Loble Decision (1989)– Columbia Falls vs. Montana
• Sherlock Decision (2008)
• School Funding Basics– Minimum and Maximum Budgets
School Funding 101General Fund
• Base Budget– 80% of average
• Maximum Budget– average
• Enrollment determines budget
Montana School Funding OverviewPer Pupil Spending in the State
$10,500 $11,227 $10,325 $12,400
$8,500 $8,322 $8,267 $8,955
$7,500 $7,850 $7,900$6,500 $6,750 $6,825 $6,900
$5,085 $5,100 $5,123 $5,175
$4,800 $4,850 $4,922 $4,927
$4,556 $4,678 $4,625
$4,235 $4,325 $4,328 $4,443$4,150 $4,175
$3,500 $3,450 $3,275 $3,628
$3,000 $2,800 $2,754
Montana School Funding Overview$10,500 $11,227 $10,325 $12,400
$8,500 $8,322 $8,267 $8,955
$7,500 $7,850 $7,900$6,500 $6,750 $6,825 $6,900
$5,085 $5,100 $5,123 $5,175
$4,800 $4,850 $4,922 $4,927
$4,556 $4,678 $4,625
$4,235 $4,325 $4,328 $4,443$4,150 $4,175
$3,500 $3,450 $3,275 $3,628
$3,000 $2,800 $2,754
Maximum100%Average
Montana School Funding Overview$10,500 $11,227 $10,325 $12,400
$8,500 $8,322 $8,267 $8,955
$7,500 $7,850 $7,900$6,500 $6,750 $6,825 $6,900
$5,085 $5,100 $5,123 $5,175
$4,800 $4,850 $4,922 $4,927
$4,556 $4,678 $4,625
$4,235 $4,325 $4,328 $4,443$4,150 $4,175
$3,500 $3,450 $3,275 $3,628
$3,000 $2,800 $2,754
Maximum100%Average
20 %
80% ofAverageBASE
Guaranteed Tax Base• Taxable
Valuation of each county
• Average for the State
• State Assistance for Counties below the average
State Average Taxable Valuation
State Average
Taxable Valuation AssistanceGuaranteed Tax Base
County Average
Budget Terminology• Basic Structure of the General Fund
Maximum 100% Budget
BASE Budget
80%
The Over Base Budget includes previously approved local mill levies, newly voted levies & tuition payments.
The BASE Budget is set by formula and takes into account all State funding, mandatory permissive mill levies, and Guaranteed Tax Payments (GTB).
Direct State Aid
• Per Student (ANB)– Elementary $5,120– High School $6,555
• Basic Entitlement (School)– Elementary $40,000– Middle School $80,000– High School $290,000
Budget Terminology• Basic Structure of the General Fund
Maximum 100% Budget
Over Base Budget
BASE Budget
80%
New Mill LeviesPrevious Mill Levies(Tuition Payments)
Guaranteed Tax BaseNon-Levy RevenueSpecial EducationDirect State AidIndian Education for AllAmerican Indian Achievement GapAt Risk StudentsQuality Educator Payments
State Payment Categories
• Direct State Aid – School & Students• Special Education• Quality Educator• Indian Education for All• American Indian Achievement Gap• Data for Achievement• Guaranteed Tax Base (if applicable)• At Risk
State Support Sherlock Decision
• Montana Quality Education Coalition -MQEC• State Share for Education• “ the current Montana school funding system
violates Article X, Section 1 of the Montana Constitution in that it fails to provide adequate funding for Montana’s public schools.”
State Support Share of General Fund Budgets
71.44%
69.43%
67.30% 67.16%66.66%
65.37%
64.38%
63.01%
62.00%
62.88%63.51%
61.49%
60.79%60.49%
59.99%60.53%
61.91%
63.40% 63.46%
63.12% 63.35%63.42% 63.64%
64.04%
54.00%
56.00%
58.00%
60.00%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
74.00%
FY1991
FY1992
FY1993
FY1994
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
State Government Trend
Budgeted Funds• General• Transportation• Bus Depreciation • Tuition• Retirement• Adult Education• Non-Operating• Technology• Flexibility• Building Reserve
• (Red indicated that the Great Falls Public School District does not use this Fund)
Moving Parts
• Student Enrollment• Taxable Valuation/Mill Value• State Support• Guaranteed Tax Base• Annual Increases (Inflation + Increases)• Health Insurance Costs• Local Levies
InflationBasic Entitlements FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Elementary Basic $40,000 $50,000 $50,895 $51,526 $52,093
Middle School Basic $80,000 $100,000 $101,790 $103,052 $104,186
High School Basic $290,000 $300,000 $305,370 $309,157 $312,558
Basic Entitlement Increments
Elementary (each 25 ANB> 250 ANB) $2,000 $2,500 $2,545 $2,576 $2,605 Middle School (each 45 ANB> 450 ANB) $4,000 $5,000 $5,090 $5,153 $5,209 High school (each 80 ANB past 800 ANB) $12,000 $15,000 $15,269 $15,458 $15,628
Per ANB Entitlements
Elementary Per ANB $5,226 $5,348 $5,444 $5,512 $5,573High School Per-ANB $6,691 $6,847 $6,970 $7,056 $7,134District State Aid (DSA) % 44.7% 44.7% 44.7% 44.7% 44.7%
School District Cash Flow(Why Reserves are needed)
November and May – Taxes PaidAll other months except July– Direct State Aid
July Aug Sept Oct Nov Dec Revenue $181 $2,148 $2,232 $2,186 $10,774 $2,284Expenses $809 $1,211 $3,337 $3,429 $3,516 $3,958
Jan Feb Mar Apr May JuneRevenue $2,265 $2,142 $2,171 $2,208 $9,305 $4,540Expenses $3,300 $3,400 $3,988 $3,447 $3,685 $9,177
Cash Flow
Reserves vs. Fund BalanceGovernmental Accounting Standards Board 54 – Fund Balance
• Non-Spendable – Inventory or Corpus of Endowment Fund
• Restricted – Money is generated from enabling legislation.
• Committed – Constrained for a specific purpose by the highest level of decision making authority (Board).
• Assigned – District intends to use – Board or designated official by the board has the authority to spend funds.
• Unassigned – General Fund Budget money only which is available for any purpose.
http://opi.mt.gov/pdf/schoolfinance/budget/UnderstSchlFin.pdf
Proposed District Financial ProcessJanuary 2016: Setting the Stage – Providing Basic Information: “This is Great Falls Public Schools” presentation with voice recorded and posted in a variety of places for people to access and view on their own. February 2, 2016: Macro Budget & Fund Balance PresentationsFebruary 17, 2016: State & Federal Revenue Projections - Estimates of Cost Increases & Earmarks.March 3, 2016: Final Review of State funding and Cost Estimates. Community input.March 10, 2016 : Budget Recommendations & ProposalMarch 28, 2016 : Board Budget Committee Recommendation with Board Action
Resources– Brian Patrick
Director of Business Operations Great Falls Public Schools
– Information on District Web Page– http://www.gfps.k12.mt.us
– District Budget Information– http://
www.gfps.k12.mt.us/sites/default/files/GFPS_DistrictBudgetInformation2.pdf
• 268-6050