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School Finance 101

School Finance 101. 2014 WASSA Fall Conference October 3, 2014 Presented by: Debby Schufletowski, School Business Specialist Robert W. Baird & Co. Key School Finance Variables. How to Communicate Key Variables. Ground Control. Passengers. Flight Tower. Airplane Pilot.

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School Finance 101

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  1. School Finance 101 2014 WASSA Fall Conference October 3, 2014 Presented by: Debby Schufletowski, School Business Specialist Robert W. Baird & Co.

  2. Key School Finance Variables

  3. How to Communicate Key Variables Ground Control Passengers Flight Tower Airplane Pilot

  4. Revenue Limit

  5. Revenue Limit—Why is it Important?

  6. Revenue Limit Components

  7. What’s Important? • Typically determines 80%-95% of a district’s operating revenue • Driven by Enrollment • 3rd Friday count is critical (converted to FTE) • Summer school FTE important too • Increase/Decrease set at the state may not directly correlate to district increase due to exemptions, etc. • 3rd Friday Sept Count-final figure to determine how much; October figures finalize the calculation

  8. Equalization Aid

  9. General Operating Revenue Equalization Aid Revenue Limit Components

  10. Equalization Aid Components Local Variables

  11. What’s Important? • Does not determine how much revenue, instead determines who pays • Prior year local data fit into state figures and calculations • October 15th certification used for budget

  12. Tax Levy and Mill Rate

  13. Calculating the Revenue Limit Tax Levy

  14. Total School Tax Levy

  15. What is the Mill Rate?

  16. Communicating the Mill Rate • Equalized Property Value not Assessed Value • Calculate district-specific home value ranges • Changes in the Tax Levy and Equalized Value will impact on the Mill Rate

  17. What’s Important? • School Levy is determined by: • Revenue limit calculation • Referendum-approved debt (if applicable) • Community service levy (if applicable) • School Levy can change from year to year due to fluctuations in any of the above levies • Mill Rate can further fluctuate due to property value increases/decreases • Focus can be on Mill Rate or Levy or both • District Mill Rate does not always equal home owner mill rate

  18. Levy and Mill Rate Fluctuations

  19. Levy and Mill Rate Fluctuations

  20. Membership & Equalized Property Value

  21. Importance and Interrelatedness Membership • District Resident Membership • Adjusted for OE in/out • Full-Time Equivalency • FTE • District Resident Membership adjusted for non-full time activity • Early childhood • 4K

  22. Importance and Interrelatedness Equalized Property Value

  23. Salary and Fringe Benefits

  24. What are Salary and Fringe Benefits Important?

  25. Salary / Fringe Composition • Salary adjustments affect WRS, FICA, etc. • May look different with employee handbook implementation The hypothetical example is for illustrative purposes only.

  26. Open Enrollment

  27. Open Enrollment • Applicants may not attend district(s) applied to • Budget soft until numbers finalized in May/June • Helpful to provide estimates prior to September count • Head count vs. Resident membership vs. FTE • Head count = Staffing needs • Membership FTE = Revenue/Aid

  28. Open Enrollment Projections

  29. Debt Service

  30. Referendum vs. Non-Referendum Debt *lesser of $1,000,000 or general aid calculation / audited members * .015 * district audited members

  31. Communicating Debt Service • Included in Equalization Aid shared cost calculation • Fund 38 and 39 impact the total district tax levy differently • Provide opportunities to manage the levy • Energy efficiency exemption The hypothetical example is for illustrative purposes only.

  32. Fund Balance

  33. Fund Balance vs. Cash Balance • Fund Balance does not equal available cash • Figure changes daily; typically cite June 30 figure The hypothetical example is for illustrative purposes only.

  34. Other

  35. Questions?

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