Transcript Agar-Blunt-Onida School District 58-3

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Agar-Blunt-Onida School District 58-3
Community Meeting
District Budget & Finance
“present and future”
Funding
• School districts receive revenue in five
operating Funds:
• General
• Special Education
• Capital Outlay
• Pension
• Bond redemption (if applicable)
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General Fund
Sources of Revenue
• Local: Primarily property taxes plus
other miscellaneous revenue: (ie gross
receipt taxes, interest from investments,
gate receipts)
• State: State Aid, state apportionment,
bank franchise taxes.
• County: County Apportionment (state fines)
• Federal: Title program grants
4
General Fund
Expenditures
• General operating expenses:
salaries and benefits, health insurance,
workers compensation.
• Other operational expenses:
fuel, utilities, building maintenance and
repairs, classroom supplies, workbooks,
busing/transportation, property insurance,
custodial, and extra-curricular activities.
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General Fund Expenditures
Fiscal Year 2009-10
•
•
•
•
Personnel
Operation & Maintenance
Co-Curricular Activities
Transportation
82%
11%
6%
1%
Staff (salaries/benefits) = 82% GF expenditures;
(classified, certified, admin., board, coaches/advisors)
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General Fund
• State Aid Formula:
2009-2010
PSA
Students
295
+ 295 (SSA formula)
X
X
X
(established $ amount/student)
*$4,804.60 =
NEED
$4,804.60 = $1,417,357.00
$646.25 =
$190,643.00
‘State defined’ District Need = $1,608,000.00
•
•
(Per Student Allocation annual increase = lesser of 3% or CPI)
– set annually by Legislature
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General Fund
State Aid calculation
District Need - Local Tax Effort = State Aid
(minus)
Local Tax Effort: (property taxes) received in Nov. & May
= District Property Valuations multiplied by set GF tax
rates (levy) in each property category. (AG, OO & OTHER)
The State determines the General Fund tax rates and
assessed property valuations.
‘District Need’ is based on student enrollment and the
‘per student allocation (PSA), which is determined
annually by the legislature. (3% or CPI – whichever is less)
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General Fund
Revenue Calculation
Our District’s ‘past unique’ funding formula!
REORGANIZATION INCENTIVE
SDCL 13-13-6.1 & 13-13-7.1= (8 year formula)
Calculate need as if “two separate districts”
(Agar & Sully Buttes)
(year 1) - example
2002-03
Agar
ADM
X
PSA
29
$3,889.00
S Buttes
328
$3,889.00
=
District Need
$112,781.00
(-)
$1,275,592.00
$1,388,373.00
Local Effort + State Aid = $1,844,034.00
(additional State Aid)
Years 1 – 4
100% of ‘incentive funds’
Years 5 – 8
80% – 60% – 40% – 20%
Local Effort
$568,442.00
$803,403.00
=
State Aid
= $0
=
$472,189.00
$1,371,845.00
(otherwise only $16,528.00 state aid)
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‘Additional’ State Aid revenue
(Reorganization Incentive)
SDCL 13-13-1.6 & 1.7
Fiscal Year
State Aid
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
$472,189
$457,651
$438,659
$458,596
$382,961
$308,715
$203,126
$105,000
% of Benefit
100%
100%
100%
100%
80%
60%
40%
20%
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State Aid (ABO history)
• Over the past eight years, the district has been receiving this
‘supplemental’ state aid in addition to the state funding formula.
For year eight of the 13-13-1.7 reorganization ‘incentive’ statute,
the ‘additional’ state aid generated by this formula (at 20%) will be
around $100,000.00
The decision to reorganize districts resulted in this additional funding
from state to provide opportunities for our students.
In fiscal year 2010-11, we move to the ‘regular’ state aid formula
where because of our district’s total property valuation and student
enrollment, we will receive a very small amount of state aid.
The District could become ‘self-funded’, which means all state
formula revenue will be through local dollars with no state aid.
(depends upon student #s, PSA, & total district valuation)
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Other District Funds
For taxes payable 2010:
• Capital Outlay ($1.60)
• Special Education ($0.50)
• Pension ($0.20)
Total = $2.30
(schools can levy up to $4.70)
(Payable 2009 was $1.45)
*This amount for every $1,000.00 valuation
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Capital Outlay
Revenue: Local Property Taxes
Schools can tax @ $3.00/$1,000.00
(1.60)
Expenditures:
Equipment, vehicles, buses, computers,
printers, buildings, land, major
remodeling/renovation and construction,
textbooks, instructional software.
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Pension Fund
Revenue:
Local Property Taxes
Schools can tax @ 0.30/$1000
(0.20)
Expenditures:
Mandatory district match (6% total salaries) of South
Dakota Retirement System (SDRS) for all
employees.
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Special Education
Revenues:
Local Property Taxes
Schools can tax @ $1.40/$1000
(0.50)
Federal Allocations
Expenditures:
Special Education staff salaries, benefits, supplies,
travel, contracted or related services (speech, O.T.,
P.T.), and out-of-district placements.
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Levy History (ABO)
Tax amount / $1000.00 of property values
2003
2004
2005
2006
2007
2008
2009
2010
Agriculture
$3.74
$3.49
$3.32
$3.19
$3.03
$2.71
$2.61
$2.57
Owner Occupied
$6.02
$5.62
$5.34
$5.13
$4.76
$4.26
$4.10
$4.04
Businesses/Utilities
$12.90
$12.04
$11.45
$11.00
$10.19
$9.11
$8.78
$8.66
General Fund
(set by state)
(set Locally)
$3.00/$1000
Capital Outlay
$0.62
$0.62
$0.75
$0.85
$0.85
$0.95
$1.20
$1.60
$0.30/$1000
Pension
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.20
$1.40/$1000
Special
Education
$0.72
$0.72
$0.60
$0.60
$0.60
$0.50
$0.25
$0.50
$1.34
$1.34
$1.35
$1.45
$1.45
$1.45
$1.45
$2.30
$4.70/$1000
(Total Levy)
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Levy increases from payable 2009 to 2010
Capital Outlay: $1.20 to $1.60 (^.40)
Using state flexibility option (certain GF expenses)
can only use for 3 years ($140,000 for FY 2009-10)
Special Education: $0.25 to $0.50 (^.25)
Fund Balance must be at sufficient operational level,
including the potential for elevated yearly expenditures.
Pension: $0 to $0.20 (^.20)
Have been paying this expenditure out of General Fund
for past eight years.
* Total school increase of 0.85/$1000 ($85.00/$100,000.00)
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GENERAL
FUND
Payable 2010
(Levy Limits / $1000 property value)
Capital
AG
NA-Z
OO
OTHER
Outlay
$2.57
$3.57
$4.04
$8.65
$3.00
Agriculture Non -Ag
Homes
Special
Pension Education
$0.30
$1.40
Businesses Bond (TOTALS)
(TOTALS)
SCHOOL DISTRICT
18.83
1.60
0.20
0.50
$2.30
20.11
3.00
0.30
1.40
$4.70
8.65
18.83
1.60
0.30
1.00
$2.90
4.04
8.65
18.83
2.20
0.30
0.15
$2.65
4.46
4.46
10.80
22.93
0.55
0.30
0.50
$1.35
2.57
3.57
4.04
8.65
18.83
1.51
0.30
1.01
$2.82
STANLEY COUNTY
2.57
3.57
4.04
8.65
18.83
1.67
0.30
0.58
$2.55
LYMAN
2.57
3.57
4.04
8.65
18.83
2.00
0.30
1.00
$3.30
SELBY AREA *
2.57
3.57
4.04
8.65
18.83
0.62
0.05
1.40
$2.07
HERRIED *
5.03
6.98
7.90
16.91
36.82
0.50
0.00
1.40
$1.90
FAULKTON AREA
2.57
3.57
4.04
8.65
18.83
1.04
0.26
0.55
$1.85
MOBRIDGE-POLLOCK *
3.51
4.88
5.52
11.82
30.39
3.00
0.30
1.40
$4.70
BOWDLE *
4.52
6.27
7.09
15.20
33.08
1.22
0.30
1.40
$2.92
EUREKA *
3.42
4.75
5.37
11.49
25.03
2.00
0.30
0.70
$3.00
HITCHCOCK-TULARE *
3.68
5.11
5.78
12.38
26.95
0.37
0.30
0.67
$1.34
AGAR - BLUNT - ONIDA
2.57
3.57
4.04
8.65
PIERRE
2.57
3.57
4.04
8.65
HIGHMORE-HARROLD
2.57
3.57
4.04
GETTYSBURG
2.57
3.57
HOVEN *
3.21
MILLER AREA
1.28
4.66
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Student Enrollment
ENROLLMENT (K – 12)
•
•
•
•
•
•
•
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
303
297
284
295
293
292
295
Blunt Elem
Onida Elem
JH-HS
Total K-12
2009-10
48
105
122
275
(projected)
2010-11
2011-12
2012-13
2013-14
44
43
41
37
98
92
91
93
124
127
118
123
266
262
250
253
(Projections based upon ‘verified’ preschool-age children)
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Cost per Student
(General Fund only)
2006-07
2007-08
$8,257.00
$9,160.00
2008-09
2009-10
$9,385.00
$7,930.00 (projected)
Higher than state average because of our district’s operating structure
and large geographical size.
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Fiscal Challenge
• Our District Structure & Revenue Sources
(schools/staffing, program needs, operational costs, geographics)
• Student numbers and revenues may
decline, but fixed costs do not.
• Maintaining facilities/fleet/other needs.
• Providing a quality curriculum and
effective programs for all students.
• Personnel – retaining highly qualified
teachers and other employees.
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School Budgets
• Developed with a vision of the future for our students
• Focus on priorities of District and Communities
What is important? What are our needs and desires?
• Highly qualified teachers, support staff and providing
essential curricular/program offerings.
• Comply with State & Federal regulations/requirements
• Strive to ‘balance’ revenues & expenditures
• Efficient & responsive to taxpayers – good stewardship
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Balancing General Fund Budget
Options:
1.
2.
3.
Reduce expenditures to meet revenues, which means
‘further’ cuts/reductions of personnel and programs.
Raise revenue, which means an opt-out of the tax
limitations to maintain current programs/staffing
Combination (if possible)
For school year 2009-10; 64 of 156 districts (41%) have
opted-out of General Fund Levy limitations.
Not just a small school problem; every district has unique
structure/characteristics, revenue sources & operational
costs.
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Budget cuts/reductions from 2003 to 2009
Certified Staff FTE:
Classified Staff FTE:
37.5 to 27.0
22.0 to 15.3
2009-10 Reductions/cuts made
FTE (positions)
•
•
•
Certified:
Administration:
Classified:
4.75
1.0
1.25
•
•
•
Salaries/Benefits/hours
Medical Insurance
Other areas & programs
Frozen or Reduced
Frozen or Reduced
Reduced
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What has been done
• 2009-2010
•
•
GENERAL FUND
District implemented major reductions in all areas at approximately
$400,000.00 (17 % of prior year’s budget)
Personnel costs are 75-85% of a General Fund Budget
2009-2010 ‘Projections’
Revenues = * $2,275,000.00
Expenditures = $2,200,000.00
* Includes special/other GF revenues that will be unavailable in 201011 or near future: $315,000.00
(reorganization incentive funds, ARRA stimulus grant, and Cap Outlay flex option
General Fund Balance ‘estimate’ on 6/30/2010: $900,000.00
District requires minimum $200,000/month for ‘cash flow’ purposes in GF, therefore
must maintain ‘healthy’ fund balance/reserve in between tax receipt months
(Nov. & May) in order to operate - pay monthly expenses/bills
We receive minimal amounts in ‘monthly’ state aid payments
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Our Financial Concerns
1. Our past funding formula (reorganization incentive) and the cessation of current
or future revenue sources ($315,000)
2. Declining student enrollment (30+ next 3-4 years = $190,000)
3. District’s operational structure (large geographic area)
What are the Options?
1. Make further/deeper Budget cuts:
Close one elementary school/staff
($300,000)
Reduce additional secondary staff
($100,000)
Reduce additional classified staff
($50,000)
Reduce extra-curricular/academic programs ($50,000)
2. Opt-Out of GF tax limitations (local decision)
If a school district cannot operate on that revenue generated by local effort
for general fund and revenue from state aid, the district
may “opt out” of general fund levy limitations.
Opting out is additional funds generated by increasing the local effort
over and above state-set tax limitations.
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General Opt-Out information.
Funding/Calendar/Taxes Payable
o Taxes based on a ‘calendar’ year: Jan 1st to Dec 31st
o School district ‘fiscal’ calendar year: July 1 to June 30
o 2010-2011 School Year is funded by 2nd half 2009-10 taxes and
1st half 2010-11 taxes.
o Opt-out amount is for a year ‘forward’ (2011)
o If applied, would receive one-half of an opt-out
total amount during the 2010-2011 School Year
(May/2011)
@ $500,000.00, the District would receive only $250,000 for the
2010-11 fiscal School Year
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Additional Opt-Out information
• District does not need to request that maximum amount
each year. Depends upon annual need of budget
• Opt-out funds are ‘locally generated’ and the state
cannot penalize/take these dollars for excess fund
balance purposes (^25%).
• School Board determines the amount and length of
years (1-10).
Option: balancing effect with capital outlay by
reducing this tax levy.
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General Fund opt-out calculations
@ payable 2010 valuations & levies
@ $500,000.00
Additional Tax for
$100,000
Property Values
Ag land
79.00
Houses
124.11
Businesses
265.00
Do not yet know 2011 property valuations – receive notice in October of each year.
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School Board/District option
• Lower Capital Outlay Levy ($1.60 to $1.00)
to somewhat ‘balance’ the levy increase for
General Fund Opt-Out.
Additional tax increase from
2010 to 2011 for $100,000 property
(IF C.O. reduced by 0.60)
Ag Land
Homes
Businesses
@ $500,000
$19.00
$64.11
$205.00
* cannot guarantee this will remain constant over time as future facilities
and other major Capital Outlay needs will be necessary.
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If no opt-out
If we close one elementary school, could we still see a
significant loss in our total student numbers?
* Keep in mind, schools are funded (through state formula)
by the total student population. If district were to lose
more kids, we would then be required to make further
staff and program reductions. (revenue = expenditures)
A majority of the General Fund budget are ‘people costs’.
Schools are the largest employers within our
communities (economic effects).
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Our product
• The Agar-Blunt-Onida school district has received
‘Distinguished District’ recognition for the past five
consecutive years based upon student achievement in
annual state assessments of NCLB.
• Significantly score above state averages on Dakota
STEP scores. ACT scores at or above state averages.
Blue Ribbon school recipient at Blunt Elementary
Successful extra-curricular programs (sports and fine arts)
Have achieved Adequate Yearly Progress since implementation of
NCLB requirements.
Have achieved both state and national accreditation status
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Our purpose
The Children!
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Conclusion
• In order to maintain present educational standards and
programs, an Opt-Out is necessary.
• Board’s options (resolution) & levy balancing effect.
• The district is committed to keeping operational costs
minimal and effective. We strive to provide the best
education for students at the lowest reasonable costs.
Each year, the district would re-assess how much of the
opt-out total would be necessary for annual and future
fiscal stability.
• What is our most important resource – the kids!
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Appendix
• Other data & Information
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2009-10
Fall Enrollment
Payable 2010
Total Property
Valuations
Valuation /
Student
Agar-Blunt-Onida 58-3
275
523,200,000
$1,902,545.00
Hoven 53-2
115
232,700,000
$2,023,478.00
Miller 29-4
451
556,600,000
$1,234,146.00
Highmore-Harrold 34-2
295
345,300,000
$1,170,508.00
Faulkton Area Schools 24-4
319
331,000,000
$1,037,618.00
Selby 62-5
199
198,000,000
$994,975.00
Bowdle 22-1
130
98,000,000
$753,846.00
Stanley County 57-1
486
346,200,000
$712,346.00
Gettysburg 53-1
242
125,500,000
$518,595.00
2,537
895,690,000
$353,050.00
662
144,900,000
$218,882.00
District
Pierre 32-2
Mobridge-Pollock 62-6
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District
District
Pay 2010 Opt Out Amount
Pay 2010 Opt Out Amount
Sioux Falls 49-5
Lead-Deadwood 40-1
Vermillion 13-1
Brookings 05-1
Harrisburg 41-2
Mitchell 17-2
Dakota Valley 61-8
Armour 21-1
Iroquois 02-3
Alcester-Hudson 61-1
Bon Homme 04-2
Mobridge-Pollock 62-6
Eureka 44-1
Selby 62-5
Redfield 56-4
Burke 26-2
Hitchcock-Tulare 56-6
Sioux Valley 05-5
Tripp-Delmont 33-5
McCook Central 43-7
Big Stone City 25-1
Freeman 33-1
Madison Central 39-2
Menno 33-2
Arlington 38-1
Bowdle 22-1
$3,200,000.00
$828,000.00
$800,000.00
$750,000.00
$700,000.00
$700,000.00
$600,000.00
$490,000.00
$450,000.00
$400,000.00
$400,000.00
$400,000.00
$390,000.00
$390,000.00
$350,000.00
$300,000.00
$300,000.00
$300,000.00
$300,000.00
$295,000.00
$250,000.00
$250,000.00
$250,000.00
$250,000.00
$245,000.00
$230,000.00
Lake Preston 38-3
Bison 52-1
De Smet 38-2
Emery 30-2
Grant-Deuel 25-3
Mount Vernon 17-3
Oldham-Ramona 39-5
Waverly 14-5
Wessington Springs 36-2
White Lake 01-3
Willow Lake 12-3
Centerville 60-1
Timber Lake 20-3
Plankinton 01-1
Hoven 53-2
Edgemont 23-1
Frederick Area 06-2
Hurley 60-2
Irene - Wakonda 13-3
Marion 60-3
Rosholt 54-4
Stickney 01-2
Summit 54-6
Woonsocket 55-4
Estelline 28-2
Deubrook 05-6
$210,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$200,000.00
$195,000.00
$195,000.00
$175,000.00
$168,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$145,000.00
$140,000.00
Scotland 04-3
Doland 56-2
Herreid 10-1
Howard 48-3
Rutland 39-4
Castlewood 28-1
$230,000.00
$227,000.00
$225,000.00
$225,000.00
$220,000.00
$210,000.00
Colome Consolidated 59-3
Corsica 21-2
Ethan 17-1
Lemmon 52-4
McIntosh 15-1
$100,000.00
$100,000.00
$100,000.00
$100,000.00
$100,000.00
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State Aid to Districts
Both districts have 300 students
= same operational $ Need based upon state formula
• District A
Low property valuation
• District B (ABO)
High property valuation
= low ‘local effort’ from local
property taxes.
The revenue that cannot
be raised locally for
district ‘Need’
= remainder is State Aid
(sent to schools on a
monthly proportioned
basis)
= high ‘local effort’ from
local property taxes.
The district receives small
amount of State Aid.
*This district would receive
a majority of operating
revenue (local tax effort)
only twice per year (May & Nov.)
(Cash-Flow concerns)
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2001
2002
2003
2004
2005
2006
2007
2008
2009
(SULLY BUTTES)
ABO
ABO
ABO
ABO
ABO
ABO
ABO
TOTAL REVENUE
$ 1,599,504 $ 1,694,471 $ 2,345,506 $ 2,435,667 $ 2,452,535 $ 2,352,234 $ 2,483,662 $ 2,379,119 $ 2,304,899
TOTAL EXPENDITURES
$ 1,682,657 $ 1,796,582 $ 2,399,168 $ 2,359,179 $ 2,416,366 $ 2,894,736 $ 2,436,290 $ 2,676,657 $ 2,631,817
$
(83,153) $ (102,111) $
(53,662) $
76,488
$
36,169
$ (542,502) $
47,372
$ (297,538) $ (334,724)
($400,000)
Bldgs renov pjct
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Average Property Values
(acre)
1/4 section
(acre)
1/4 section
Homes
Sully County
$680.00
$108,800.00
$229.00
$36,640.00
$40,000.00
Hughes County
$445.00
$71,200.00
$194.00
$31,040.00
$43,500.00
(source: County Assessor offices)
Payable 2011 "Valuation ESTIMATES" *(new Productivity model)
AG Land
Crop Land
Pasture
Hughes
increase 10%
increase 10%
Sully
decrease 3%
decrease 10%
(source: SD Dept. of Revenue)
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