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The Aid Formula
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1. The Aid Formula -
Factors That Create Change
WASBO Fall Conference
Elkhart Lake
September 28, 2006
Lori Ames
Jerry Landmark
DPI School Finance Team
3. 2006-07 EST GENERAL AID
4. EQUALIZATION AID
5. 2006-07 EQUALIZATION AID
6. 2006-07 Equalization Aid Factors DISTRICT
Membership
School Aid Value +
Computer Value
Shared Cost
7. Primary Cost Ceiling - $1,000
(Set by Law)
Secondary Cost Ceiling - $8,366
(90% State Average Shared Cost Per Member) 2006-07 K-12 STATE AID FACTORS
8. Primary Guarantee - $1,930,000
(Set by Law)
Secondary Guarantee - $1,260,004
(Floats to Distribute the Appropriation)
Tertiary Guarantee - $483,033
(Average Property Value Per Member) 2006-07 K-12 STATE AID FACTORS
9. 2006-07 DISTRICTAID FACTORS Use prior-year district data.
? 2005-06 Shared Cost
? 2005-06 Membership
? 2005 School Aid Values
10. 2006-07 DISTRICT SPECIFICS
11. 2006-07 EQUALIZATION AID
12.
?Simplified Percentage Method
?July 1 Estimate Method
Algebraically, virtually the same.
May be some difference due to rounding.
DISTRICT WORKSHEETS
13. WORKSHEETS ON THE WEB
14. EQUALIZATION AID
15. TIER 1 CALCULATIONSample District Positive Aid 13.74% x $1,000 = $137.41 District
86.26% x $1,000 = $862.59 State Aid
16. TIER 2 CALCULATIONSample District Positive Aid
17. TIER 3 CALCULATIONSample District Positive Aid
18. TOTAL EQUALIZATIONSample District Positive Aid
19. EQUALIZATION AIDSample District Positive Aid The aid amount of $7,663,591 is now adjusted for :
Milwaukee Charters ($64,318)
Equal Aid Adj 0
Final Total (rounded) $7,599,273
20. COST SHARING PERCENTAGESample District Positive Aid
21. TIER 1 CALCULATIONSample District Negative Aid 36.31% x $1,000 = $363.15 District
63.69% x $1,000 = $636.85 State Aid
22. TIER 2 CALCULATIONSample District Negative Aid
23. TIER 3 CALCULATIONSample District Negative Aid
24. TOTAL EQUALIZATIONSample District Negative Aid
25. EQUALIZATION AIDSample District Negative Aid The aid amount of $12,834,096 is now adjusted for :
Milwaukee Charters ($ 107,713)
Equal Aid Adj 0
Final Total (rounded) $12,726,382
26. COST SHARING PERCENTAGESample District Negative Aid
27. Hold-Harmless Provisions Assuming a district is in the aid formula:
A district will always receive primary aid
Negative tertiary aid will subtract from positive secondary aid
Negative secondary aid can not subtract from positive primary aid
A districts equalization aid eligibility will be at least 85% of the prior year to meet the 85%, a district will receive special adjustment aid
28. Equalization Aid New Spreadsheet!!!
It gives you equalization aid factors by district across a 7 year period to help you analyze why your aid has changed and lets you see past trends to help you estimate how it may change in the future.
29. Timeline of DPI-Provided Aid Worksheets April (?)
July 1 (required by law)
Late September (used as a data check for the October 15 Certification)
October 15 Certification (must be used in the Revenue Limit)
Final (typically completed in summer)
30. AID USED IN REVENUE LIMIT
31. OCTOBER-JUNE ADJUSTMENTS Per 121.15 (4) (b), districts use the October 15 Certification in their Revenue Limit computation.
Final aid is computed sometime during the following spring/summer.
Differences between the 2 aid runs are made as an adjustment to the payment made in September of the following school year.
32. MISCELLANEOUS What was two-thirds funding?
It was a calculation done at the state level that added together several revenue sources, (levies, state and categorical aid and levy credit) to determine an amount that the state will pay, in total, to districts.
What did two-thirds funding mean for individual districts?
It never meant that each district would receive 66.7% of their cost as aid. A district might or might not have had the state fund two-thirds of its costs. It depended where the district was in the equalized aid formula.
33. QUESTIONS?
34. THANK YOU! Please call us with questions or comments!
Brad Adams, Consultant, 267-3752
Lori Ames, Consultant, 266-3464
David Carlson, Director, 266-6968
Gene Fornecker, Auditor, 267-7882
Kathy Guralski, Auditor, 266-3862
Karen Kucharz, Consultant, 267-9707
Jerry Landmark, Assistant Dir., 267-9209
Natalie Rew, Auditor, 267-9212