Transcript School Finance in Iowa

Finance/Budget Overview:
Grant Wood AEA
Barb Harms
Business Manager
Grant Wood Area Education Agency
Management Team Meeting – 12/1/06
1
Review - AEA/LEA Finance

What is common?
– State funding based on number of students
– Other revenues from grants, misc sources
– Allowable growth
– Weighted enrollment
2
Review - AEA/LEA Finance

What is different?
– Schools have taxing authority, AEA’s don’t
– LEA finance formula is more complex
– Schools have separate funding sources for
facilities & other costs
– AEA’s generate revenues from sales of
non-mandated services
3
GWAEA Budget Process
Oct/Nov
Dec
Jan
Verify Allowable Growth %
LEA Enrollment count
Estimate available funds
Set budget parameters
Prepare State budget, hold
public hearing, Board approval
Feb - May Negotiate contract settlements
Prioritize funding requests
Jun - Jul Build line-item budget
New budget takes effect
4
Historical Financial Trends
Allowable Growth History
5.0%
4.0%
3.0%
4.0%
3.5%
3.3%
3.0%
4.0%
4.0%
3.5%
2.0%
1.0%
4.0% 4.0%
2.0%
1.0%
0.0%
FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07
Fiscal Year
5
AEA Finance Formula:




Child-based: allowable spending is
based on number of students counted
AEA cost per pupil X enrollment
Formula is separate for 3 service areas
(Media, Ed Services, Special Education)
State has not released final budget
enrollment figures – usually 12/1
6
2006-07 Budgeted Revenues
Special Education
Media Services
Educational Services
State Reduction
$16,754,381
$ 2,927,692
$ 3,213,132
$ (1,999,562)
“Controlled Funding”
$20,895,643
7
Projecting Other Revenues:

Federal funds – IDEA, Part C, etc.

Various other state, local grants

Sales of non-mandated services (such
as printing, computer services, SEMS) –
look at trends of past revenues
8
Sale of Service Revenues
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$FY 02
FY 03
FY 04
Media
FY 05
FY 06
Educational Services
9
2006-2007 Budgeted Revenues
Controlled Funding
Federal Revenues
Sale of Services
Other State Revenues
Total
$
$
$
$
$
20,895,643
15,189,010
2,797,650
471,979
38,882,303
%
53.7%
39.1%
7.2%
1.2%
100.0%
2006-2007 General Fund Revenues
7.1%
1.2%
Controlled Funding
Federal Revenues
Sale of Services
Other State Revenues
38.6%
53.1%
10
2006-07 Budgeted Expenditures
2006-2007 General Fund Expenditures
0.9% 10.3%
Salaries
6.3%
Benefits
12.5%
Purch Services
56.9%
13.1%
Supplies
Equipment
Other
11
Historical Financial Trends
Financial Solvency Ratio
 Standard measure of financial health
 Formula = Unreserved Fund Balance
General Fund Revenues
Target Range: Preferred 5.0 to 10.0%
Acceptable 0 to 4.9%
Alert
-3.0 to -0.1%

12
Historical Financial Trends
Financial Solvency Ratio
8.0%
7.5%
7.0%
6.0%
6.3%
6.0%
5.1%
5.0%
4.5%
4.0%
3.0%
3.5%
3.0%
3.1%
3.3%
3.3%
3.1%
2.0%
1.0%
0.0%
FY
96
FY
97
FY
98
FY
99
FY
00
FY
01
FY
02
FY
03
FY
04
FY
05
FY
06
Fiscal Year
13
GWAEA Budget/Finance

Next update – look at web finance query
system and account code structure

Questions?
14