Preliminary Revenue Budget for FY2010

1. Preliminary Revenue Budget for FY2010 Board of Education March 26, 2009

2. Park Hill Budget Process

3. FINAL Assessed Valuation Budget Cycle Enrollment Projections Additional State & Federal Funding Information New Legislation Benefit Renewal Preliminary Assessed Valuation Staffing Needs

4. Account Codes • Account Codes • Over 6200 Unique Expenditure Account Codes in Use 9-001-00-1111-6411-406-00-000-003 • Units • School/Program that the revenue or expenditure serves • ~65 Active Budgeting Units

5. Budget Units

6. Budget Units

7. Budget Units

8. Budget Timeline • November-December, 2008 • Preparation of FY2010 Budget Guidelines • January - February, 2009 • 2009-2010 Budget Manual and budget allocations distributed to district budget leaders • Budget reviews for each unit • January 8, 2009 • Presentation to the Board: Fund Balance Analysis • February 12, 2009 • Presentation to the Board: Discussion of Budget Assumptions • March 26, 2009 • Presentation to Board of Education: Preliminary Revenue Budget for FY2010

9. Budget Timeline • April 23, 2009 • Presentation to Board of Education: Preliminary FY2010 Expenditure Budget • May 28, 2009 • Presentation to Board of Education: Updated FY2010 revenue and expenditure budgets • June 11, 2009 • Presentation to Board of Education: Updated FY2010 revenue and expenditure budgets • June 25, 2009 • Presentation to Board of Education: FY2009 Budget Amendment and recommendation for approval of FY2010 Budget • August, 2009 • Board of Education – Set the 2009 Tax Rate

10. Preliminary Revenue Budget for FY2010 Board of Education March 26, 2009

11. Operating Revenue Update • Overview • Total Budgeted Operating Revenue FY2009 $112,459,917 • Revenue By Source • Local • County • State • Federal • Other * Budgeted FY2009 Values

12. Preliminary FY2010 Revenue Update • Local Sources • Local Property Taxes • Most significant revenue source for Park Hill Schools Oper/Fund 1 $4.6467 $60.78 million* FY2009 X = $1.398 billion Debt/Fund 3 $0.6107 $0.59 million* Capital/Fund 4 $0.0453 $8.58 million* * after county fees (1.5%) and delinquent tax (~4%) deductions

13. County Reassessment Years Non-reassessment Years Park Hill School District – Assessed Valuation History

14. Preliminary FY2010 Revenue Update • Local Sources • Local Property Taxes • Budgeting for a 1.4% increase in Assessed Valuation • Represents the smallest annual increase since 1994 • Budgeting for no change in district Operating Tax Levies • Operational/Fund 1 = $4.6467 per $100 of Assessed Valuation • Capital/Fund 3 = $0.0453 per $100 of Assessed Valuation • Budgeting for current tax collection rate of 96.5% • Prop C • Calculation • Prior Year Weighted Average Daily Attendance (WADA) x Prop C rate • Budgeting for a no increase in Prop C rate ($819 per WADA) • Anticipated increase in WADA (216) • Other Revenue Items • Earnings on Investments, Community Education, Payments in Lieu of Tax, Food Service FY2009 Anticipated Local Revenue= $84.0 million New FY2010 Local Revenue =+$2.7 million

15. Preliminary FY2010 Revenue Update • County • Fines & Fees • Railroad & Utility (State Assessed Utilities) FY2009 Anticipated County Revenue= $2.9 million New FY2010 County Revenue =($72,000)

16. Preliminary FY2010 Revenue Update • State • Basic Formula & Classroom Trust Fund • Fourth year of implementation of the new school funding formula (Senate Bill 287) • The state allocation will be based on 42% of the rate of funding from FY 2006 (last year of the old formula), and 58% based upon the new formula calculation detailed in SB 287. • Anticipate FY2010 allocations supported by federal stimulus “State Stabilization” funds • Calculated with assumption of 0.75% increase in ADA • Other State Revenue Items • Transportation, Early Childhood Special Education FY2009 Anticipated State Revenue= $21.3 million New FY2010 State Revenue =+$1.7 million

17. Preliminary FY2010 Revenue Update • Federal • IDEA/94-142 Revenue • Federal Food Service Revenue (Free/Reduced Lunch) • Other Federal Revenues • Title Programs (I, II, III, IV, V), Medicaid • Removal of Head Start funds FY2009 Anticipated Federal Revenue= $4.8 million New FY2010 Federal Revenue =($441,000)

18. Preliminary FY2010 Operating Revenue • Overview • Projected New Revenue By Source

19. Key FY2010 Revenue Assumptions • Local Assessed Valuation Growth = 1.45% • Residential = 0.0% • Agriculture = (3.0%) • Commercial = +10.0% • Personal Property = (4.5%) • 2009-2010 Enrollment / Average Daily Attendance = +70 students • State Formula & Classroom Trust Fund • Food Service • Proposition C reimbursement rate = $819

20. American Recovery and Reinvestment Act • ARRA Principles • Spend funds quickly to save and create jobs • Improve student achievement through school improvement and reform • Ensure transparency, reporting and accountability • Invest one‐time ARRA funds thoughtfully to minimize the funding cliff • Stimulus Funds • Federal funds distributed through State Education Agencies (SEAs) serving as fiscal agents • Missouri Department of Elementary & Secondary Education (DESE) • All information regarding these funds to date has come from U.S. Department of Education • DESE has not yet provided guidance

21. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • State Stabilization Funds • IDEA Funds • Title I Funds

22. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • State Stabilization Funds • Funds flowing through the State Stabilization Fund, controlled by the governors and existing state funding formulas • Serves to offset gaps in state budgets as a result of economic conditions • Impact: Expectation of a fully funded formula ($19.4 million basic formula; $1.75 in transportation) • Unclear how to segregate funds between stimulus dollars and what was already established as district FY2010 state allocation • Because these are “formula dollars” guidelines on the use of these funds is already established by DESE

23. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • IDEA Funds • Estimated New IDEA Revenue: $2,132,000 • Funds targeted for special education students and special education programs/services • IDEA restrictions apply: • Monies must be spent on students with disabilities and to support the Special Education program • No Supplanting – funds cannot be used to supplant existing personnel, programs or services • Example: Hiring a Instruction Coach for Special Education • Not supplanting because this position does not currently exist in Park Hill • Example: Moving the maintenance costs for the online IEP system from district funds to IDEA funds. • Supplanting – cannot move existing local expenditures to IDEA

24. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • IDEA “Supplanting Paradox” • ARRA Principle 1 - Save and create jobs • If the district hires new positions or adopt new programs/services, these personnel/programs/services cannot be sustained beyond the stimulus funding (“Funding Cliff”) • Department of Education Recommendations • These funds should be used for short‐term investments with the potential for long‐term benefits. • Suggested Uses of IDEA Stimulus Funds • Assistive technology devices to enhance access to general curriculum for students with disabilities. • District-wide professional development for special education • Developing or expanding the capacity to collect and use data to improve teaching and learning.

25. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • Title I Funds • Estimated New IDEA Revenue: $443,287 • Funds targeted for improving the achievement of students’ reading/math proficiency • Title I restrictions apply: • Monies must be spent on reading or math improvement programs • Pre Kindergarten – 12th Grade • Inside/Outside School Day • No Supplanting – funds cannot be used to supplant existing personnel, programs or services from local sources • Validate that programs improve student achievement

26. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • Title I “Supplanting Paradox” • Department of Education Recommendations for use of Title I Funds • Establishing a system for identifying and training highly effective teachers to serve as instructional leaders in Title I school‐wide programs and modifying the school schedule to allow for collaboration among the instructional staff; • Strengthen and expand early childhood education by providing resources to align a district‐wide Title I pre‐K program with state early learning standards and state content standards for grades K–3 and, if there is a plan for sustainability beyond 2010–2011, expanding high‐quality Title I pre‐K programs to larger numbers of young children; • Providing professional development to teachers in Title I targeted assistance programs on the use of data to inform and improve instruction for Title I‐eligible students; • Establishing or expanding fiscally sustainable extended learning opportunities for Title I‐eligible students in targeted assistance programs, including activities provided before school, after school, during the summer, or over an extended school year.

27. American Recovery and Reinvestment Act • Stimulus Funds for Park Hill School District • Fund Distribution • 50% of the funds expected to be received in FY2009 (May, 2009) • 50% of the funds expected to be received in FY2010 (September, 2009) • Funds required to be obligated by September, 2011 (FY2011) • Budgetary Impact • Increases in fund balance for FY2009 (and FY2010) • One-time expenditures will result in unbalanced budgets for FY2010 and FY2011 • Revenues received in one fiscal year expended in future fiscal years • Next Steps • Continue seeking information regarding

28. Budget Timetables and Preliminary Revenue Budget for FY2010 Board of Education March 26, 2009