Transcript Welcome to FYI

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Welcome to FYI
• Our Intent and Purpose
– Strategic Plan Outreach and Mentorship
Effort for New and Newer PASBO
Members in all aspects of School Business
Management
– Use PASBO Experts to Help New Entrants
2
Today’s Agenda
I.
What's Due
Calendar of State and Federal Reports
II.
Basic Education Funding
III.
PASBO Tools You Can Use
Resources to Help You
IV.
Your Questions Answered
An Open Forum for Your Questions About Topics Covered and
Uncovered!
3
What’s Due
18Feb
23Feb
26Feb
1Mar
1Mar
1Mar
5Mar
10Mar
4
Adopt Preliminary
Budget
PDE-2028/Real Estate
Tax Rate Report
Notice to Apply For
Referendum
Exceptions
New Hire Report
Annual
School Board must pass by then if not adopting an
Act 1 Resolution
Finance
PDE
Annual
Submit Preliminary Budget to PDE
PDE
Annual
Newspaper Notification of Intent to Apply for
Exceptions
Monthly Report of New Hires
NSL Report on PEARS Monthly Reimbursement for Lunches Served each Month
Upload NPAS Reports
and Send On-line
Monthly Report of Wages & Retirement Contributions
Referendum Exception
Application
Annual Application for Act 1 referendum exceptions
2030
Quarterly Reconciliation of cash on hand
Finance
HR
Food
Service
Finance
Finance
Finance
Dept. of
Labor &
Industry
CN PEARS
PSERS/NPA
S
PDE
Comptrolle
r
What’s Due
31- Dept. of Revenue PIT
Mar Filers
31Mar
31Mar
31Mar
31Mar
31Mar
31Mar
31Mar
31Mar
31Mar
31Mar
5
Dept. of Labor
&Industry UC-2
Re-assignment of taxpayers who do not live in the
Annual district.
Quarterly Report of Unemployment Comp. Wages
Fuel Tax Refund
Annual Fuel Tax Refund Report
PDE-4625
Annual Temporary Assistance to Needy Families
Dept. of
Finance Revenue
Dept. of
Labor &
Finance Industry
Dept. of
Finance Revenue
Finance PDE
Local EIT
Finance Collector
Earned Income Tax
Quarterly Report of Local Wage Tax Withholdings
IRS- 941
Quarterly FICA & Federal Income Tax
PA Dept. of Revenue
Quarterly Report of State Tax Withholdings
Finance IRS
Dept. of
Finance Revenue
PDE-339 (Act 29)
Quarterly Social Security & Medicare Contributions
Finance
PSERS - Employer
All State and Federal
Grant reporting
Quarterly Deposit of Employer Retirement Due
Submit all grant reporting for State and Federal
Quarterly programs.
Finance PSER
819
Quarterly Sales and Use Tax Report
Finance REV
Finance
Sources of Filing and Reporting Info
• PIMS Data Collection Calendar
 http://www.portal.state.pa.us/portal/server.pt/community/pimspennsylvania_information_management_system/8959
• Comptroller Forms
 http://www.portal.state.pa.us/portal/server.pt/community/forms
_and_procedures/13472
• Food Service Calendar
 http://www.portal.state.pa.us/portal/server.pt/community/natio
nal_school_lunch/7487/activity_calendar/964588
6
Sources of Filing and Reporting Info
• PIMS Data Collection Calendar
 http://www.portal.state.pa.us/portal/server.pt/community/pimspennsylvania_information_management_system/8959
• Comptroller Forms
 http://www.portal.state.pa.us/portal/server.pt/community/forms
_and_procedures/13472
• Food Service Calendar
 http://www.portal.state.pa.us/portal/server.pt/community/natio
nal_school_lunch/7487/activity_calendar/964588
7
Today’s Expert, Jeffrey Ammerman
• Previous business manager at State
College Area SD, South Middleton
SD, and Philipsburg-Osceola Area SD
• Worked in the Business Office at
Tuscarora Intermediate Unit
• Answer Man: Part of his role at
PASBO is to answer questions and
provide technical information to
members
• [email protected], 717-5409551
The Short History of Basic
Education Funding
• It’s not a formula
• It used to be a formula
• We then enacted a formula with an
adequacy target
• Now we have BEF targeted by
gerrymandering
9
1966 Formula (Act 580)
• The law transitioned funding based on
teaching units to a formula: district wealth
(Aid Ratio) times Actual Instructional
Expense (AIE) per Weighted Average Daily
Membership (WADM) times the district's
WADM. Additional state support based on
poverty, density or sparsity, home bound
instruction and vocational education.
• Additionally, Act 580 set the level of state
support at 50% of reimbursable costs. This
funding framework remained in place until
1983.
10
1983 Equalized Subsidy for Basic
Education (Act 31)
• The ESBE formula:
– Aid Ratio times Factor For Educational
Expense (FEE) and times WADM.
– The FEE was set at $1,650 and
– Additional funding by an Economic
Supplement that used poverty, local tax
effort and population per square mile as
factors.
• The legislation creating ESBE removed the
50% state share and added a minimum
annual increase of 2%. The ESBE formula
determined state funding for schools
through the 1991-92 fiscal year.
11
Since 1991-92
• Hold Harmless (funding level from previous year) +
supplemental funding
• “…made on an ad hoc basis with the purposes and
target of additional funding changing annually
depending on transient administrative and
legislative priorities. The bases for supplemental
payments have included: low wealth, low
expenditure, poverty, limited revenue, small district
assistance, enrollment growth, minimum funding
increases, tax effort, meeting foundation levels,
limited English proficiency and performance.”
Dr. William T. Hartman, Penn State University
12
Except for the Costing-Out Study
2008-10 (Act 114-2006)
13
Budgeting with No Formula
• In the absence of a funding formula,
the distribution criteria are changed
each year through the budgeting
process
• Over the past 20-years, 30 different
factors have been used in one year or
another to distribute Basic Education
Funding
14
Budgeting with No Formula
2013-14 State Budget
• 21 school districts
• Represented by 37 lawmakers, 33 of
whom held leadership positions
• Special language written in fiscal code to
provide each district a share of $30
million in additional Basic Education
Funds
15
Consequences of No Basic Education
Funding Formula
Wide Funding Disparities
•
•
Lowest Resourced SD - $9,803 per student
Highest Resourced SD - $26,808 per student
•
Difference $17,005 per student
•
Average Elementary class of 25 students =
$425,125 difference
(2012-13 data)
16
Basic Education Funding
Commission
• Legislative commission authorized by Act
51 of 2014
• Made up of 12 legislators and 3
administration officials
• Must issue a report and recommendations
for a new basic education funding formula
by June 10, 2015
17
Who Needs Another Commission?
• A commission is a good idea because…
• It creates a bi-partisan sand box
• The end result will position champions in each
chamber
• An issue as complex and as big as BEF ($5.5
billion) cannot be crafted without in-depth and
technical discussions that do not easily fit into
a committee or floor deliberation; a
commission approach allows a singular focus
by knowledgeable legislators and outreach to
external experts.
18
Successful Commission Work
• Special Education Funding Commission (Act 3 of
2013)
• Led by Sen. Patrick Browne and Rep. Bernie O’Neill,
and made up of 12 legislators and administration
officials
• Tasked specifically with:
– developing a special education funding formula and identifying factors that
may be used to determine the distribution of a change in special education
funding among the school districts in the Commonwealth.
– gathering information on charter and cyber charter school funding
reimbursements for special education students and draft proposed
legislation based upon those findings.
• Had 6+ months to hold hearings across the state to
examine the issue of special education funding and
issue a report with recommendations
19
Commission Recommendations
• New special education dollars
should be allocated to districts
based primarily upon the
number of students in each of
three categories determined
by the cost of each student’s
special education services.
• School district-specific factors,
such as aid ratios, equalized
millage rates, and a
sparsity/size factor that targets
small, rural school districts,
should be used to provide
adjustments in the new
formula.
• Act 126 of 2014
20
Proposed Special Education
Formula
Category 1:
Student Count
X Weight
Total Weighted
Student Count
District Total
21
Category 2:
Student Count
X Weight
Small, Rural
School District
Factor
Equalized
Millage
Multiplier
Category 3:
Student Count
X Weight
Total Weighted
Student Count
MV/PI
Aid Ratio
Total Weighted
Student Count
District Total
District
Total to Prorate
BEF Commission Representation
•
•
•
•
•
•
22
Two Democrats west of Harrisburg
One Republican west of Harrisburg
Three members (two Rs, one D)
from IU 13 (Lancaster-Lebanon
Counties) and now the Secretary of
Education
Three members from the
Philadelphia suburban counties
(Chester, Montgomery and Bucks)
Four members representing large
urban districts—Philadelphia,
Allentown, Harrisburg and Lancaster
Under-represented: The “T” (central
PA and northern tier (largely hold
harmless districts).
BEF Commission Discussion
•
•
•
•
•
What factors increase the cost of providing an education?
Should an adequacy target be identified?
Eliminate or maintain hold harmless?
How to define state/local share of education funding?
How to determine an accurate measure of local wealth?
23
BEF Commission Formula Progress
• In the process of identifying student-specific factors
that increase the cost of education and weights:
–
–
–
–
–
–
Poverty
English language learners
Homelessness, transiency, trauma
Charter school enrollment
Vo-tech enrollment
High performing districts
• Examining district-factors that should provide an
adjustment
– Small, rural school districts
– Local wealth
– Tax effort
24
BEF Commission Next Steps
• Commission report will likely be released in
late April/early May
• Legislation implementing the Commission’s
recommendations must then be passed by
both chambers of the General Assembly
• Unclear if this will be completed to go into
effect for 2015-16 school year
• Unclear how much (if any) additional BEF
dollars will be available to districts
25
PASBO Basic Education Funding Formula
Proposal
What We Avoid:
• Using indicators and measures that may
have outlived their reliability
• That continue to be used because “that’s
the way we have always done it”
• Trying to address all localized situations
and circumstances in hopes of creating
the “perfect formula”
• Adding complexity when simplicity works
The PASBO Proposal:
•
•
•
•
•
Does NOT use Aid Ratio
Does NOT use Equalized Mills
Does NOT establish a base cost
Does NOT apportion state and local costs
Does NOT differentiate between elementary and
secondary education costs (WADMs)
• Does NOT use free/reduced lunch to measure
poverty
• Avoids cliffs that draw arbitrary eligibility lines
• Applies only to new money
PASBO Proposal Framework
School
District
ADM
Poverty
Adjustment
ELL
Adjustment
Charter
Adjustment
Adjusted
School
District
ADM
Student-Specific Factors
Adjusted
School
District
ADM
Sparsity/Size
Adjustment
Median
Household
Income
Index
Residential
Taxation
Index
District-Specific Factors
TOTAL Adjusted
School District
ADMs to prorate
available $
Step 1: Count Students
• Begin with the ADM of each school district
• Could also use a weighted ADM that
considered changing ADM over 5 years.
– Example:
•
•
•
•
•
0.52 multiplied by the 2012-13 ADM
0.26 multiplied by the 2011-12 ADM
0.13 multiplied by the 2010-11 ADM
0.06 multiplied by the 2009-10 ADM
0.03 multiplied by the 2008-09 ADM
Step 2: Adjustments for Student Factors
• Poverty
– Measure using Federal census data, which counts the
number of individuals ages 5-17 living at or below the
poverty line.
– Recognizing the additional resources needed to
educate students living in acute poverty are
significant, weight total number of students in poverty
in each school district by 1.0. This high weight also
functions to cover some of the other categories that
have been discussed but may be difficult to measure.
Step 2: Adjustments for Student Factors
• English Language Learners
– Measure using PIMS data reported to PDE
annually.
– Using an average across all states, weight
the total number of ELL students in each
school district by 0.3.
Step 2: Adjustments for Student Factors
• Charter School Enrollment
– Measure using charter ADMs per district
– To replace the eliminated charter
reimbursement, apply a weight of 0.3 to the
total charter ADM count.
Step 3: Adjustment for Sparsity/Size
• Provide additional ADMs to small, rural
school districts that can’t benefit from
economies of scale.
– Use modified formula from Act 126
• Sparsity Ratio-measures district ADM/square mile
compared to state average
• Size Ratio-measures district 3 year average ADM
compared to state average
– Weight size ratio and sparsity ratio 50/50
– Provide adjustment for those districts with a
ratio above the 70th percentile
Step 4: Adjustment for Local Wealth
• Replace Aid Ratio with Median
Household Income Index
– Use Federal census data to determine
median household income by school district
– Compare median district household income
to state median household income
($52,667), setting the median at 1.0
• > 1 = district median is below state median
• < 1 = district median is above state median
Step 5: Adjustment for Tax Effort
• Replace Equalized Mills with Residential Taxation
Index
– Use STEB data to estimate the amount of residential
property taxes (deduct property tax reduction $)
– Combine residential property tax and other nonbusiness taxes to determine non-business tax per
household
– Take average non-business tax per household as a
percentage of district median household income,
expressed as mills
– Use a multiplier of 1.0 for school districts at or above
the 80th or 50th percentile.
Example: Hamburg Area SD
Total ADM(2012-13): 2,415
Students in Poverty(2012-13): 361 * 1.0 = 361
ELL Students(2009-10): 18 * 0.3 = 5.4
Charter School Students (2012-13): 54 * 0.3 = 16.2
School
District
ADM
2,415
Poverty
Adjustment
361
ELL
Adjustment
5.4
Charter
Adjustment
16.2
Adjusted
School
District
ADM
2,798
Example: Hamburg Area SD
ADMs/square mile = 23.6
3 year avg. ADM = 2,458
Sparsity Ratio = 0.3479
Size Ratio = 0.3253
Sparsity/Size
Adjustment
0
Sparsity/Size Ratio = 0.6732
BELOW the 70th percentile (0.755) = NO adjustment
Example: Hamburg Area SD
SD median household income = $55,774
State avg. median household income = $52,667
Median Household Income Index =
1/($55,774/$52,667)
Median
Household
Income Index
0.944
Example: Hamburg Area SD
Number of households = 6,851
Residential taxes = $14,265,079
Residential taxes/household = $2,082
SD median household income = $55,774
Residential taxes/household as share of median household
income as millage = 37.33
Multiplier if use 50th percentile = 1.0
Residential
Multiplier if use 80th percentile = 0.94
Taxation
Index
1.0
Example: Hamburg Area SD
Adjusted
School
District
ADM
2,798
Sparsity/Size
Adjustment
0
Median
Household
Income Index
0.944
Residential
Taxation Index
1.0
TOTAL Adjusted School District ADMs=2,642
42
43
There’s a doc for that…
at the Electronic Resource Center
www.pasboerc.org
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Next Session
• In-person at PASBO Conference
• March 12, 2:30 pm, Cocoa 4/5
• Focus group about mentoring
47
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