SCHOOL FINANCE ESSENTIALS

1. "To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful." — Edward R. Murrow "If I am through learning, I am through." — John Wooden SCHOOL FINANCE ESSENTIALS

2. WASDA NEW ADMINISTRATORS WORKSHOP Bruce Anderson – School Finance Consultant Karen Kucharz Robbe – School Finance ConsultantSeptember 24, 2014 SCHOOL FINANCE ESSENTIALS WASDA NEW ADMINISTRATORS WORKSHOP

3. Agenda • Website Resources • PI 1500 District Contacts Report • Counting Kids • Short Term Borrowing • Revenue Limit Basics • Overall Budget & Property Tax Levy

4. Website Resources http://dpi.wi.gov/sfs/index.html (recommended bookmark) Website Organization • Two center sections (white or green background) • General Information – New Communications; Reporting Portal; PI 1500; Data Warehouse; Budget Development Tools; Links for Recent SFS Finance Workshop Presentations • School Financial Services Team – Information; Wisconsin Finance-Related Links • Scan bar on the left margin • School Finance Topics – Links to important school finance topics

5. PI 1500 District Contacts Report Click on this Link

6. PI 1500 District Contacts Report • The PI 1500 District Contacts Report accomplishes two goals. • Identifies who is authorized to submit and receive information for each school financial services report (targeted emails) • Creates an ID/Password for those individuals authorized to submit reports. • The renovated PI-1500 portal will be activated in the near future. • The change over should have little impact on most of the individuals already in the PI-1500

7. PI 1500 District Contacts Report- will soon have a new look Enter ID/Password

8. PI 1500 District Contacts Report- will soon have a new look Select the User from the dropdown list. District (0000) To add someone new Use this tab to update the users authority status.

9. PI 1500 District Contacts Report- will soon have a new look To provide a User with their information use: District (0000) At least two individuals should be identified as “authorized contact “ for the PI 1500 District Contacts Report

10. PI 1500 District Contacts Report- will soon have a new look • The current PI-1500 has 6 pages and 21 different topics to select per authorized district representative. • The renovated PI-1500 will have only 13 topics. • The renovated PI-1500 will reduce significantly the ongoing frustrations experienced at both the district level and at our level. • Training materials will be available within the PI-1500 portal via a link on the left-hand side under “SFS Info & help”. • Links to the SFS ListServeare also available on the left-hand side as it is no longer part of the PI-1500.

11. PI 1500 District Contacts Report • An individual’s ID is very specific in the PI-1500. • It is not an option to change an individual’s ID. • If an individual, using the same ID, is granted access and authority in multiple school districts. • All personal information is universal; if changed in one district this new information will be visible in the other district(s). • This maybe a good feature for a CESA employee or auditor. • Unless you are authorized to submit via the District Contacts Report, you will not be able to access the reports. • The PI-1500 District Contacts Report stays open all year long to allow for staff changes. • Districts should be reviewing this report through out the year to make sure it is updated to reflect current staff and staff assignments.

12. Counting Kids (SFS) • 3rd Friday in September • 2nd Friday in January • Data from both reports are converted to full-time equivalency (FTE) and used in the calculation of: • September - Revenue Limit and Equalization Aid • January - Equalization Aid

13. Counting Kids (SFS) • Membership Counting Guidelines • Pupil can be counted for membership if: • the student is a district resident • the District is financially responsible for the student’s educational program • the student is present for instruction on the count date or meets the before and after rule

14. Adjusted Head Count* Non-Resident Reductions Resident Reductions Resident Additions - - Head Count + = Add all resident students who are receiving educational services from other districts or programs and for which your district is paying the cost of full-time tuition. Subtract all resident students being served by the district that don’t meet the count guidelines. (less than full time, outside age eligibility) Subtract all non-resident students being served by the district. Result is the resident students for which you are financially responsible. Identify all students, regardless of residency, receiving instruction by the district on the count date. PI-1563 Pupil Count Process (SFS) * Will be converted to full-time equivalency.

15. Counting Kids (SFS) • Head Count • Physically Present – The student is in attendance for instruction on the count date. • Absent - The pupil is absent on the count date, but has attended at least one day during the school year prior to the count date and at least one day during the school year after the count date, and has remained a resident of the district during the period of absence.

16. Reporting Categories (SFS)

17. Counting Kids (SFS) • Preschool Special Education • Students must be at least 3 years of age as of the count date. • Student must have an IEP (Individualized Education Plan) and be receiving instructional services. • No minimum required number of instruction hours.

18. Counting Kids (SFS) • 4 Year Old Kindergarten • Districts should only use these two lines if: • the 4 year old kindergarten program is open to all students • the program is funded by district resources—not solely by Title One funds • the student is at least 4 on or before September 1st

19. Counting Kids (SFS) • 4 Year Old Kindergarten (continued) • 4 Yr – 437 Hours: program shall have at least 437 hours of instruction, which can include up to 87.5 hours of outreach activities. • 4 Yr – 524.5 Hours: program shall have at least 437 hours of instruction and 87.5 hours of outreach. The school shall NOT substitute instructional time for outreach activities. (87.5 hours is at the program level, not student level.)

20. Counting Kids (SFS) • 5 Year Old Kindergarten (program options) • 5 Year Old – Half Day Program • 5 Year Old – 3 Full Day Program • 5 Year Old – 4 Full Day Program • 5 Year Old – 5 Full Day Program • 5 Year Old – Blended Program The student must be at least 5 years of age on or before September 1st.

21. Counting Kids (SFS) • Grades 1 – 12 • Students must be 6 years of age on or before September 1st of the current year. • In all count categories, the student must meet the age requirement or be admitted under early admittance guidelines as defined by the Board of Education.

22. Converting Count to F.T.E (SFS)

23. Counting Kids (SFS) • PI 1804/1805 Summer School Pupil Count Report • Report used to collect district FTE (full time equivalency) data for the just ended summer term. (Summer school starts the school year!) • FTE data is used in the calculation of a district’s revenue limit and equalization aid. • The summer school report is one of the few reports that ask for minutes of instruction as opposed to a head count.

24. Counting Kids (SFS) • Summer School Membership (FTE) is obtained by: • Calculating the district’s total summer school resident pupil membership minutes • Dividing the total by 48,600 and rounding to the nearest whole number. • A worksheet is available to assist in this process. http://sfs.dpi.wi.gov/files/sfs/xls/SS1804.xls • Used in both the revenue limit and equalization aid calculation.

25. Counting Kids (SFS)Non-Public Students • Home-schooled, non-parochial, parochial, and tribal students. • Residents and non-residents. Attending the public schools for up to 2 courses a semester.

26. Counting Kids (SFS)Non-Public Students Non-Parochial, Parochial, and Tribal School Pupils • May take up to 2 courses per semester at a public school. • In resident district. • Just high school grades (9-12). • Report the number of part time hours attended by the pupil(s). Will be converted to an F.T.E. This resident, part-time FTE count is added to membership for General Aid purposes (not Revenue Limit purposes).

27. Counting Kids (SFS)Non-Public Students Home-Schooled Pupils • May take up to 2 courses per semester at a public school. • In resident or non-resident district. • In any grade (formerly just high school grades in the resident district.) • This is a departure from the general pupil count rules in that non-residents are counted in the district of attendance rather than district of residence. • Residents - Report the number of part time hours attended by the pupil. Will be converted to an F.T.E. This resident, part-time FTE count is added to membership for General Aid purposes (not Revenue Limit purposes). • Non-Residents – Report the number of pupils taking 1 course and the number taking 2 courses at each grade level (k-12). Those counts will then be converted to FTE in the amount of 0.25 FTE per course, up to 0.50 FTE per pupil (per semester). This non-resident, part-time FTE count is added to membership for General Aid purposes (not Revenue Limit purposes).

28. Counting Kids (SFS) Non-Public Students Resident vs. Non-Resident Home School vs. Private Schools NON-RESIDENT Pupil comes from: RESIDENT Home School [All grades] # PT Pupil Hours / FT Hours for Grade = FTE 0.25 FTE per course (max of 2 courses) Cannot be counted Private School [Grade 9-12] # PT Pupil Hours / FT Hours for Grade = FTE

29. Counting Kids (SFS) • FTE Report • The FTE is calculated automatically and displayed in an FTE report for each district. • Anytime the district changes a number within either the September, January, or Summer Pupil Count Reports, the report automatically updates. • The report is located on the District’s Homepage within the School Finance Reporting Portal.

30. Counting Kids (SFS) • Report Amendments • Up until the due date of the January pupil count report, districts may go into either the September, January, or Summer Pupil Count Reports and make any necessary changes. • After the January Pupil Count Report has been submitted andmembership audits have been announced, districtseither make changes thru the audit or contact the School Finance Team to make changes.

31. Counting Kids (SFS) • Membership Audits • On or about February 1st, the School Finance Team will announce which districts are required to have a membership audit. • The district’s auditor will verify the district’s reported counts for: • 3rd Friday in September • 2nd Friday in January • Summer School (as well as fees)

32. Counting Kids (SFS) • Resources are available on the website to assist you. • General Count Instructions • PI 1563 Pupil Count Workbook • PowerPoint • Media Site http://sfs.dpi.wi.gov/sfs_membrpt2

33. Cash Flow Borrowing • Why do some districts need to short-term borrow? • Expenditures are fairly consistent but revenues are sporadic • Insufficient fund balance • A shortfall can occur at times during the year as a result of a combination of these two factors

34. Cash Flow Borrowing • Cash flow analysis is required to help determine amount and timeline • Wis. Stat. 67.12(8) • Must occur after the tax levy is voted for current year (Common SD = Annual Meeting, Unified SD = Board) • Consult with school attorney and financial advisor to ensure all requirements are met

35. Revenue Limit - The “BIG” Picture 3rd Friday Count, Oct 1 Tax Values, October 15 Aid Revenue Limit Calculation Certify Levies via PI-401 & PC-401 (in portal) Budget Send tax bills. PI-1508 Budget Adjustments to BOE Budget Report PI-1504 to DPI

36. Revenue Limit Basics • Revenue Limit Calculation – Determines the revenue limit a school district is entitled to from general state aid, local levies and state computer aid • What affects the revenue limit – Membership, Inflationary Increase and Exemptions • Exemptions – Recurring and Non-Recurring • Recurring – Permanently in your base (Ex.: Transfer of Service and Recurring Referendum) • Non-Recurring – Limited time only (Ex.: Declining Enrollment, Energy Efficiency and Non-recurring referendum)

37. Revenue Limit Worksheet Basics http://sfs.dpi.wi.gov/sfs_revlimworksheet These amounts are prefilled from your final revenue limit worksheet from the previous year. You should check to make sure they correspond with your information. This is your base (starting point) for the current year. “2014-15 Pre-Populated Revenue Limit Worksheet”

38. Revenue Limit Worksheet Basics The Base and Current three–year rolling averages are compared to determine if there is a declining enrollment exemption.

39. Revenue Limit Worksheet Basics Fill in 17A and 17B from your October 1, 2014 Certified Values received from the Department of Revenue through DPI. Until you receive the values, estimate a value.

40. Revenue Limit Worksheet Basics Right hand side of revenue limit worksheet is where your new limit is determined. Line 11 is your new revenue limit total.

41. Revenue Limit Worksheet Basics • Line 12A is your • October 15 Certified State Aid -- Do not use your July 1 estimate. • Total of 14A, B, & C cannot exceed Line 13 – If you levy to the maximum, it should be the same number. • Line 15 is total of all of your other levy amounts. • Line 18 is your Fund 10 Levy. • Line 19 is the Total Levy.

42. A Special Note About the Long Term Debt Levies The Fall 2014 levies (Funds 38 & 39) should be enough to cover your debt payments due in the Spring of 2015 and Fall of 2015. (calendar year) The 2014-15 Budget Report should reflect the fiscal year transactions: total amount of the levy, but only the payments you will make in the Fall of 2014 and Spring of 2015. (fiscal year)

43. Revenue Limit Worksheet & Property Tax Levy There is a direct relationship between the numbers on the revenue limit worksheet and what you certify for the property tax levy (Form PI – 401) in the portal.

44. Property Tax Levy

45. Property Tax Levy

46. Per Pupil Adjustment Aid 2014-15

47. Questions? Visit our website at: http://sfs.dpi.wi.gov/ • Bruce Anderson, Consultant 608-267-9707 • Carey Bradley, Consultant 608-267-3752 • Dan Bush, Consultant 608-267-9212 • Karen Kucharz, Consultant 608-266-3464 • Gene Fornecker, Auditor 608-267-7882 • Michele Gundrum, Auditor 608-267-9218 • Brian Kahl, Auditor 608-266-3862 • Bob Soldner, Director 608-266-6968 Or call: