Transcript Document

2015 MASBO Budget Workshops
Denise Williams, MASBO Executive Director [email protected];
406-442-5599
Mike Waterman, Director of Business Services – Bozeman Public
Schools [email protected] 406-522-6097 or 406-589-4027
Agenda
1. General Fund
– Overview
– Use of OPI spreadsheet
2.
3.
4.
5.
6.
Scattergrams
Lunch
Discussion Questions
Taxation
Getting to a Balanced Budget
GENERAL FUND
• General Fund
– Expenditure Budget Limits
– Funding Sources
• Funding the BASE budget
• Funding the over-BASE budget
GENERAL FUND
USE THESE RESOURCES FROM OPI!
OPI 2015-16 Preliminary General Fund Budget Data Sheet
http://opi.mt.gov/pub/index.php?dir=School%20Finance/PreliminaryBudgetD
ataSheets/FY2016/
OPI 2015-16 General Fund Budget Overview and Worksheets
http://www.opi.mt.gov/pdf/SchoolFinance/Budget/FY15_16GenFundBudget
OverviewWorksheets.pdf
OPI 2015-16 General Fund Budget Excel Spreadsheet
http://opi.mt.gov/pub/index.php?dir=School%20Finance/PreliminaryBudgetD
ataSheets/PBDSSupport/BudgetSpreadsheet/&file=GFbudget_FY16_PRESESSI
ON_F2.xlsx
General Fund - ANB
AVERAGE NUMBER BELONGING (ANB)
FALL ENROLLMENT
(1ST Monday in October)
Part-time Students = ¼, ½, or ¾
WINTER ENROLLMENT
(1ST Monday in December)
Items in red are SB175 and HB2
changes (2013 Legislative session)
Total of 3 counts
divided by 3
X 180 + PIR Days*
Part-time Students = ¼, ½, or ¾
180
SPRING ENROLLMENT
= ANB
(1st Monday in February)
Part-time Students = ¼, ½, or ¾
*PIR Days are “pupil instruction
related” days for teacher inservice training and recordkeeping
General Fund - ANB
• Use the ANB that generates the greatest
maximum general fund budget:
– Current Year ANB (CY ANB)
• ANB for the budget unit for the ensuing school
year (FY2016 ANB is based on FY2015 enrollment
counts)
– 3-Year Average ANB
• Add current year ANB to the current ANB for the
previous two school fiscal years and divide by 3
(FY2016 ANB is the average of FY2016, FY2015
and FY2014)
MY K-12 School – FY2015
FY2014 FY2015 FY2016 3-Year Avg
ANB
ANB
ANB
ANB
Elementary
156
174
169
167
Middle School
32
29
31
31
High School
53
55
53
54
The Basic and per-ANB entitlements, Indian Education for All and
Data for Achievement components are all calculated using ANB.
Using Current
Year ANB
Elementary/Middle School
High School
Using 3-Year
Average ANB
1,248,744.30 1,238,211.10
656,790.70 663,522.60
General Fund - Budget Elements
Basic Entitlement
Per-ANB Entitlement
Special Education Allowable Cost Payment
Quality Educator Payment
At-Risk Student Payment
Indian Education for All Payment
American Indian Achievement Gap Pmt
Data for Achievement Payment
General Fund Budget Limits
BASE Budget
‘Maximum’
Budget*
Basic Entitlement
80%
100%
Per-ANB Entitlement
80%
100%
Special Ed Allowable Cost Payment
140%
175 – 200%
Quality Educator Payment
100%
100%
At-Risk Student Payment
100%
100%
Indian Education for All Payment
100%
100%
Amer. Indian Achievement Gap Pymnt
100%
100%
Data For Achievement Payment
100%
100%
* ‘Maximum’ budget is just a term – not necessarily the most you can spend
General Fund Budget Limits
BASE Budget
‘Maximum’
Budget*
Basic Entitlement
80%
100%
Per-ANB Entitlement
80%
100%
Special Ed Allowable Cost Payment
140%
175 – 200%
Quality Educator Payment
100%
100%
At-Risk Student Payment
100%
100%
Indian Education for All Payment
100%
100%
Amer. Indian Achievement Gap Pymnt
100%
100%
Data For Achievement Payment
100%
100%
* ‘Maximum’ budget is just a term – not necessarily the most you can spend
Basic Entitlement Rates
Entitlements
FY2014
FY2015
FY2016
(HB27)
Elementary Basic
$ 40,000
$ 40,000
$ 50,000
$50,895
For every 25 Elem
ANB over 250
N/A
$ 2,000
$ 2,500
$ 2,545
$ 80,000
$ 80,000
$100,000
$101,790
For every 45 MS
ANB over 450
N/A
$ 4,000
$ 5,000
$ 5,090
High School Basic
$290,000
$290,000
$300,000
$305,370
N/A
$ 12,000
$ 15,000
$ 15,269
Middle School Basic
For every 80 HS
ANB over 800
FY2017
(HB27)
*HB27 proposes to retain the increase in the basic entitlement rates for FY2016
as provided in SB175 (2013 session) and increase FY2017 by inflation of 1.79%
Basic Entitlement Rates
FY16 Example (assumes passage of HB27):
Elementary Budget Unit 1 (E1)
Basic Entitlement 250 ANB
Additional basic entitlement
366 – 250 = 116
116/25 = 4.64 ~ 4.0
4.0 X $2,500
Total Basic Entitlement
366 ANB
$ 50,000
$ 10,000
$60,000
Per-ANB Entitlement Rates
Entitlements
FY2014
FY2015
FY2016
(HB27)
FY2017
(HB27)
*Elementary
per-ANB
$ 5,120
$ 5,226
$5,348
$ 5,444
*High School
per-ANB
$ 6,555
$ 6,691
$ 6,847
$ 6,970
*HB27 proposes to increase per-ANB entitlements by 2.33% in FY2016 and
1.79% in FY2017, in accordance with SB175 (2013 session)
General Fund Budget Limits
BASE Budget
‘Maximum’
Budget*
Basic Entitlement
80%
100%
Per-ANB Entitlement
80%
100%
Special Ed Allowable Cost Payment
140%
175 – 200%
Quality Educator Payment
100%
100%
At-Risk Student Payment
100%
100%
Indian Education for All Payment
100%
100%
Amer. Indian Achievement Gap Pymnt
100%
100%
Data For Achievement Payment
100%
100%
* ‘Maximum’ budget is just a term – not necessarily the most you can spend
Special Education Allowable Costs
FY2013
HB 2 Appropriation
% increase
$ 41.6
million
FY2014 **FY2015
$ 42.018
million
1%
$ 42.892
million
2%
**HB2 provides FY2016 and FY2017 appropriations at FY2015 level
Special Education Allocation 20-9-321(4)(a), MCA:
•
•
•
•
52.5% through instructional block grants (ISB)
17.5% through related services block grants (RSBG)
25% to reimbursement of local districts
(disproportionate costs)
5% to special education cooperatives and joint boards
for admin and travel
General Fund Budget Limits
BASE Budget
‘Maximum’
Budget*
Basic Entitlement
80%
100%
Per-ANB Entitlement
80%
100%
Special Ed Allowable Cost Payment
140%
175 – 200%
Quality Educator Payment
100%
100%
At-Risk Student Payment
100%
100%
Indian Education for All Payment
100%
100%
Amer. Indian Achievement Gap
Pymnt
100%
100%
Data For Achievement Payment
100%
100%
* ‘Maximum’ budget is just a term – not necessarily the most you can spend
Funding Components
• Quality Educator (QEC)
– OPI pays to school districts and special education
cooperatives
– Paid for each full-time equivalent (FTE) licensed
educator and for other licensed professionals
employed by the district or cooperative
• At-Risk Student (ARC)
– Annual appropriation is distributed school districts
based on Title I allocations
Funding Components (continued)
• Indian Education for All (IEA)
– Paid per ANB ($100 minimum)
– For providing curriculum for the recognition of American
Indian cultural heritage
• American Indian Student Achievement Gap (SAG)
– Paid per each American Indian student enrolled as
reported on the October enrollment count
– For closing the educational achievement gap that exists
between American Indian students and non-Indian
students
• Data for Achievement (D4A)
– Paid per ANB
– For access fees or other costs for statewide data system,
including data entry and staff training
Funding Components
FY2015
Quality Educator
At-Risk Student
Indian Education for All
Am Indian Student
Achievement Gap
Data for Achievement
FY2016
FY2017
(HB27)
(HB27)
$3,042
$3,113
$3,169
$5,149,426 $5,269,408 $5,363,730
$20.40
$20.88
$21.25
($100 min.)
($100 min.) ($100 min.)
$200
$205
$209
$15
$20
$20.36
*HB27 proposes to increase these payments by 2.33% in FY2016 and
1.79% in FY2017, in accordance with SB175 (2013 session)
General Fund Budget Limits
BASE Budget
‘Maximum’
Budget*
Basic Entitlement
80%
100%
Per-ANB Entitlement
80%
100%
Special Ed Allowable Cost Payment
140%
175 – 200%
Quality Educator Payment
100%
100%
At-Risk Student Payment
100%
100%
Indian Education for All Payment
100%
100%
Amer. Indian Achievement Gap Pymnt
100%
100%
Data For Achievement Payment
100%
100%
* ‘Maximum’ budget is just a term – not necessarily the most you can spend
General Fund Budget Limits
Minimum Budget Allowed
~80%
BASE
Budget
Trustees must adopt a budget
that is at least equal to the
BASE Budget.
General Fund Budget Limits
• Districts may permissively adopt an overBASE levy that is equal to the higher of:
– the highest over-BASE amount imposed
(actually levied) in any of the previous 5
years, OR
– The highest over-BASE amount authorized
by voters, up to the highest budget allowed,
in any of the previous 5 years
General Fund Budget Limits
Over-BASE portion
Highest Budget Without a Vote
Without a vote:
Prior Yr Over-BASE
Tax Levy Amt
+ Prior Yr Excess
Reserves Used to
Fund Over-BASE
+ Estimated Tuition
Revenue
BASE
+ Oil & Gas Revenue
Highest amount
imposed or
authorized in any of
the previous 5
years
(Example: For FY2016,
use FY2011 - FY2015)
General Fund Budget Limits
~80%
Permissive
Over-BASE
Budget
BASE
Budget
Highest Budget Without a Vote
Without seeking additional voter
approval, trustees may adopt a
General Fund budget that
equals their current year BASE
budget plus highest over-BASE
levy approved by voters or
levied in past five years.
Highest Budget With a Vote*
Over-BASE portion
Vote Required for
Increase in Over-BASE
Tax Levy
Without a vote:
Prior Yr Over-BASE
Tax Levy Amt
+ Prior Yr Excess
Reserves Used to
Fund Over-BASE
+ Estimated Tuition
Revenue
BASE
+ Oil & Gas Revenue
*Cannot exceed the
Highest Budget Allowed
General Fund Budget Limits
Highest Budget Allowed
~80%
Permissive
Over-BASE
Budget
Highest Budget Without a Vote
Highest Budget Allowed
BASE
Budget
Districts may adopt a budget that is the higher
of:
 Current Year Maximum, -OR Prior Year adopted budget plus any
increases DSA (Basic and per-ANB
entitlements) and any increases in the
Quality Educator, At-Risk, Indian
Education for All, Student Achievement
Gap and Data for Achievement
payments
General Fund Budget Limits
Highest
Vote
Amount
~80%
Highest Budget Allowed
Permissive
Over-BASE
Budget
Highest Budget Without a Vote
Highest Budget Allowed
BASE
Budget
Districts may adopt a budget that is the higher
of:
 Current Year Maximum, -OR Prior Year adopted budget plus any
increases DSA (Basic and per-ANB
entitlements) and any increases in the
Quality Educator, At-Risk, Indian
Education for All, Student Achievement
Gap and Data for Achievement
payments
Funding the BASE Budget
Adopted
Budget
BASE
Budget
Over-BASE Levy
Guaranteed
BASE
Tax
GTB Budget Area
Levy Base Aid
(GTB)
DSA/SPED/
5 Funding
Components
Local Revenues
Revenues from State
Funding the BASE Budget
Adopted
Budget
Over-BASE Levy
BASE
Budget
Guaranteed
BASE
Tax
Levy
Base Aid
(GTB)
DSA/SPED/
5 Funding
Components
Direct State Aid (DSA)
(44.7% Basic & per-ANB)
100% QEC 100% ARC
100% IEA 100% SAG
100% D4A 140% SPED
Funding the BASE Budget
• State funding for:
– Direct State Aid
• 44.7% of the Basic Entitlement
• 44.7% of the per-ANB Entitlement
– Special Education Allowable Costs (140%)
– Funding Components (100%)
•
•
•
•
•
Quality Educator
At-Risk Student
Indian Education for All
American Indian Achievement Gap
Data for Achievement
Payment schedule: 10% in Aug–Oct and Dec–Apr; 20% in June
Funding the BASE Budget
Adopted
Budget
Over-BASE Levy
BASE
Budget
Guaranteed
BASE
Tax
Levy Base Aid
(GTB)
DSA/SPED/
5 Funding
Components
GTB Budget Area:
35.3% Basic Entitlement
+ 35.3% Per-ANB Entitlement
+ 40% SPED Payment
Funded with local permissive
(non-voted) levy, other nonlevy revenue and state GTB
aid, if a district is eligible
Funding the BASE Budget
GTB Budget Area
- Fund Balance Reappropriated
- Oil and Natural Gas Production Taxes
- State School Block Grant
- Local revenue required to be anticipated
- Other non-levy revenue
- Natural Resource Development Payment
= BASE Budget Levy
Funding the BASE Budget
• Oil and Natural Gas Production Taxes
– Must anticipate as revenue the lesser of:
• at least 25% of oil and gas revenue received in the
prior year, OR
• the net levy requirement
– One-half must be used to reduce the BASE
levy
– Remaining may be used to fund the overBASE levy
Funding the BASE Budget
• Oil and Natural Gas Production Taxes
(continued)
• Exceptions:
– Maximum GF Budget < $1 million
– Adopted GF budget + oil and gas revenue =
105% or less of the Maximum GF budget
– Maximum GF Budget > $1 million AND have
an approved anticipated unusual enrollment
increase
– Outstanding oil and gas revenue bonds
Funding the BASE Budget
• Local revenue required to be anticipated
– Based on amounts reported on prior year TFS
– 1510 Interest earnings
– 19XX Other revenue
• Other non-levy revenue
– School block grant (General Fund)
– Combined school block grant (optional)
– Coal gross proceeds
Funding the BASE Budget
• Natural Resource Development K-12
Funding Payment
– A variable % of the Basic and per-ANB
entitlements above the Direct State Aid (DSA)
– Distributed to each school district based on
the ratio of that district’s DSA to statewide
DSA
– Considered non-levy revenue that is used to
reduce the BASE levy
– If a district is eligible for GTB, offsets a
portion of the amount of GTB received
Funding the BASE Budget
• Natural Resource Development K-12
Funding Payment (continued)
– $3 million appropriated for FY2015 budgets
– In subsequent years, minimum payment is
• the amount needed to prevent a statewide
increase in BASE budget levies associated with
inflationary increases in the Basic and per-ANB
entitlements, plus
• any excess interest and income revenue
appropriated by the legislature pursuant to
20-9-622(3)(a), MCA
Funding the BASE Budget
• Natural Resource Development K-12
Funding Payment (continued)
– FY2016 appropriation = $4.9 million
– FY2017 appropriation = $8.1 million
The distribution of the NRD K-12 Funding
payment will decrease the state GTB payment,
in those districts that qualify for GTB.
Funding the BASE Budget
FY2015
Adopted
Budget
Over-BASE Levy
BASE
Budget
BASE
Levy
GTB
Revenue that reduces
BASE levy requirement
DSA/SPED/
5 Funding
Components
FB Reappropriated
Oil and gas revenue
School Block Grant
Local revenue required
to be anticipated
• Other non-levy revenue
• K-12 Funding Payment
•
•
•
•
FY2016
FY2015
Adopted
Budget
Over-BASE Levy
BASE
Budget
BASE
Levy
GTB
Revenue that reduces
BASE levy requirement
DSA/SPED/
5 Funding
Components
At minimum,
prevents an
increase in
the BASE
levy from
year to year
Over-BASE Levy
BASE
Levy
GTB
K-12 Funding Payment
Revenue that reduces
BASE levy requirement
Increased DSA, etc.
DSA/SPED/
5 Funding
Components
Funding the BASE Budget
Adopted
Budget
Over-BASE Levy
BASE
Budget
BASE
Levy
GTB
Revenue that reduces
BASE levy requirement
DSA/SPED/
5 Funding
Components
Guaranteed Tax Base
Aid (GTB) Subsidizes
the BASE Levy
Requirement
Funding the BASE Budget
State Guaranteed Tax Base Aid (GTB)
• State subsidy for BASE mills
• Eligibility is based on the ratio between the
district’s taxable value and the district’s GTB
Budget Area as compared to the statewide
taxable value X 193% and the GTB Budget
Areas of all districts statewide.
• Districts with a ratio lower than the statewide
ratio qualify for GTB aid
OPI pays General Fund GTB to districts in November and May
Funding the BASE Budget
State Guaranteed Tax Base Aid (GTB)
Statewide Taxable Valuation X 193%
= State GTB Ratio
Total of all District GTB Budget Area
Statewide GTB Ratios
Taxable valuation (tax year 2014)
GTB Budget Area (FY2015)
TV divided by GTB Budget Area X 193%
= Statewide GTB Ratio for FY2015
budgets
Elementary
High School
2,474,873,911.00 2,474,873,911.00
226,267,684.70
121,936,088.51
21.11
39.17
Funding the BASE Budget
State Guaranteed Tax Base Aid (GTB)
District Taxable Valuation = District GTB Ratio
District GTB Budget Area
Example District GTB Ratios
Elementary
Taxable valuation (tax year 2014)
5,605,331.00
Divided by GTB Budget Area (FY2015)
475,196.48
District GTB ratio
11.80
State GTB ratio
21.11
Qualifies for GTB?
Yes
Funding the BASE Budget
State Guaranteed Tax Base Aid (GTB)
Example District GTB subsidy per mill
Elementary
State GTB ratio
Times District GTB Budget Area (FY2015)
District Guaranteed tax base for FY2016 budget
Less District taxable value (estimated using tax year 2014)
FY2016 GTB subsidy per BASE mill (x .001)
21.11
475,196.48
10,031,397.00
5,605,331.00
4,426.07
This district will receive $4,426.07 for each BASE mill it
levies to support the General Fund
• From state GTB
$ 4,426.07 (44%)
• From district local taxpayers
$ 5,605.33 (56%)
Funding the over-BASE Budget
Adopted
Budget
BASE
Budget
Over-BASE Levy
Funded with voter
approved levies and
non-levy revenue
Guaranteed
BASE
Tax
Levy
Base Aid
(GTB)
DSA/SPED/
5 Funding
Components
Local Revenues
Revenues from State
Funding the over-BASE Budget
• Generally, non-levy revenue must be used first
to reduce the BASE Budget Levy
• Exceptions:
– Estimated Tuition revenue
– Excess Reserves held for more than one year
– Oil and natural gas production tax revenue after
the amount required to fund the BASE budget
levy is met
• When BASE Budget Levy = zero, available
non-levy revenue may be used to fund the
over-BASE Budget
Funding the over-BASE Budget
• Over-BASE Levy
– Voter approved initially; permissive in
subsequent years
– Flexible Non-Voted Levy Authority
20-9-308(2)(b), MCA
• May swap out permissive levy authority from other
budgeted funds and apply to GF over-BASE levy
authority
• Must return permissive levy authority from GF if an
increase in property taxes is needed in the other
budgeted funds in future years
Funding the over-BASE Budget
Which “budgeted funds” are we talking
about?
Transportation (10)
Bus Depreciation (11)
Tuition (13)
Adult Education (17)
OPI Budget Spreadsheet
• Overview
• Projecting budget limits/evaluating legislative
proposals – cells to evaluate:
– PAR Tab: H3
– Inputs Tab: ANB cells (B9 – D23), Q/S/U8 - 27
– Gen Fund Budget Tab: E/G/I 109, 113, 117, 121,
125, 129, 133 (for projecting FY17 budget)
• Estimating tax impact of ballot issues
Uses of Funds:
2012 Montana Statewide General Fund
Expenditures by Function
Uses of Funds:
2012 Montana Statewide General Fund
Expenditures by Object
Uses of Funds:
2012 Montana Statewide General Fund
Expenditures by Function and Object
Uses of Funds
Building Blocks of an Expenditure Budget
(Objects):
•
•
•
•
•
•
Salary & Benefits
Utilities
Insurance
Contracts
Building/Department Budgets
Contingency
Uses of Funds
Scattergram
Uses of Funds
Scattergram
Salary Schedule
BA
MA
Step 1 Current Year Salary
$25,000
$35,000
Step 2 Current Year Salary
$30,000
$40,000
FTE Count (Scattergram)
BA
MA
Step 1 FTE
2
2
Step 2 FTE
1
5
Total FTE: 10
Total Cost
BA
MA
Step 1
$50,000
$70,000
Step 2
$30,000
$200,000
Total Cost: $350,000
Cost of Steps: $30,000
School Taxation
Plan your tax structure!
• Understand how property taxes work
School Taxation
Market Value (MT Dept of Revenue)
Less: Exemptions (Legislature)
Taxable Market Value
x Tax Rate (Legislature)
Taxable Value (certified by DOR)
x Mills (local governments)
Taxes due (billed, collected, and
distributed by county treasurer)
School Taxation
Market Value (MT Dept of Revenue)
Less: Exemptions (Legislature)
Taxable Market Value
x Tax Rate (Legislature)
Taxable Value (certified by DOR)
x Mills (local governments)
Taxes due (billed, collected, and
distributed by county treasurer)
Taxable Value
Taxable Value
(Market value - Exemptions) x tax rate
= taxable value
Taxable Value
Total taxable value – TIFD increment
= taxable value for budget
Taxable Value
Taxable Value
for budget
Taxable Value
Bozeman Public Schools
Bozeman Public Schools
Taxable Value Growth Rate
Taxable Value History
7.00%
$180,000,000
$160,000,000
6.00%
$140,000,000
5.00%
$120,000,000
4.00%
$100,000,000
$80,000,000
3.00%
$60,000,000
2.00%
$40,000,000
1.00%
$20,000,000
$-
0.00%
FY10
FY11
FY12
FY13
FY14
FY15
Elementary 117,329,369 121,072,738 122,688,282 124,859,611 128,394,150 131,762,887
Elementary
5.55%
3.19%
1.33%
1.77%
2.83%
2.62%
HS
HS
6.28%
3.43%
1.47%
1.85%
3.16%
2.87%
FY10
FY11
FY12
FY13
FY14
FY15
138,744,445 143,508,070 145,618,673 148,311,838 152,997,133 157,393,739
Elementary
High School
Taxable Value
• Current reappraisal system: 6-year cycle
– Previous cycle: Jan 1, 2009 – Dec 31, 2014; Jan 1, 2008
base valuation date
– Current cycle: Jan 1, 2015 – Dec 31, 2020; Jan 1, 2014
base valuation date
– Property value decreases effective in whole first year
– Property tax increases phased in over 6-year cycle
• Proposed reappraisal system: 2-year cycle
(SB157)
Taxable Value
• Taxable values for FY16
– Department of Revenue map:
http://revenue.mt.gov/Portals/9/property/reappr
aisalroadshow/Map%20and%20Tables%28with%20Citi
es%29_1.pdf
– Does NOT include newly taxable property
Median Price: Single Family Residences
Bozeman and Surrounding Area
$400,000
$350,000
$340,851
$327,250
$325,350
$308,850
$300,000
$300,000
$270,000 $262,000
$250,000
$275,750
$252,250
$200,000
$150,000
$100,000
$50,000
$0
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Gallatin Association of Realtors
School Taxation
Market Value (MT Dept of Revenue)
Less: Exemptions (Legislature)
Taxable Market Value
x Tax Rate (Legislature)
Taxable Value (certified by DOR)
x Mills (local governments)
Taxes due (billed, collected, and
distributed by county treasurer)
School Taxation
What is a mill anyway?!? Simple!
• One mill = 1/1,000 of your taxable value
Tax Revenue Required
District Taxable Value
x 1,000 = Levied Mills
School Taxation
• School taxes generally driven and limited by
dollars
• Mills are computed after dollars and taxable
values are known
• Examples:
Revenue Needed
$5,000
Taxable Value
$10,000
Value of 1 Mill (TV x 0.001)
$10
Mills Levied (Revenue / Mill Value)
500
School Taxation
• School taxes generally driven and limited by
dollars
• Mills are computed after dollars and taxable
values are known
Determined by Board
• Examples:
Revenue Needed
$5,000
Taxable Value
$10,000
Value of 1 Mill (TV x 0.001)
$10
Mills Levied (Revenue / Mill Value)
500
Certified by MT Dept of Revenue
School Taxation
• Generally driven and limited by dollars
• Mills are computed after dollars and taxable
values are known
• Examples:
Revenue Needed
$5,000
Taxable Value
$10,000
Value of 1 Mill (TV x 0.001)
$10
Mills Levied (Revenue / Mill Value)
500
School Taxation
• Generally driven and limited by dollars
• Mills are computed after dollars and taxable
values are known
• Examples:
Revenue Needed
$5,000
Taxable Value
$10,000
Value of 1 Mill (TV x 0.001)
$10
Mills Levied (Revenue / Mill Value)
500
School Taxation
• Generally driven and limited by dollars
• Mills are computed after dollars and taxable
values are known
• Examples:
Revenue Needed
$5,000
Taxable Value
$10,000
Value of 1 Mill (TV x 0.001)
$10
Mills Levied (Revenue / Mill Value)
500
School Taxation
Plan your tax structure!
• Understand how property taxes work
• Develop comprehensive tax projections before presenting
budgets and/or recommending elections. Consider levied
dollars AND mills
Bozeman Public Schools
Levied Dollars History (K-12)
$35,000,000
$30.3M
$30,000,000
$30.8M
$27.5M
$25.3M
$25.9M
$26.3M
FY10
FY11
FY12
FY13
FY14
FY15
Tuition
10,068
5,000
5,000
6,500
21,244
310,020
Bus Depreciation
40,700
40,700
81,086
81,086
81,087
72,736
Adult Education
180,893
177,964
154,053
170,463
234,262
193,464
Technology
400,000
400,000
400,000
400,000
585,182
595,744
Transportation
1,229,924
1,160,867
1,237,235
1,241,655
1,652,092
1,735,581
Building Reserve
2,140,000
3,220,000
2,720,000
2,720,000
3,220,000
3,000,000
Debt Service
6,284,959
5,417,582
5,881,754
7,000,825
7,576,626
7,477,264
General
15,028,302
15,526,129
15,787,675
15,879,313
16,901,641
17,462,652
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Taxable Value
Bozeman Public Schools
Bozeman Public Schools
Taxable Value Growth Rate
Taxable Value History
7.00%
$180,000,000
$160,000,000
6.00%
$140,000,000
5.00%
$120,000,000
4.00%
$100,000,000
$80,000,000
3.00%
$60,000,000
2.00%
$40,000,000
1.00%
$20,000,000
$-
0.00%
FY10
FY11
FY12
FY13
FY14
FY15
Elementary 117,329,369 121,072,738 122,688,282 124,859,611 128,394,150 131,762,887
Elementary
5.55%
3.19%
1.33%
1.77%
2.83%
2.62%
HS
HS
6.28%
3.43%
1.47%
1.85%
3.16%
2.87%
FY10
FY11
FY12
FY13
FY14
FY15
138,744,445 143,508,070 145,618,673 148,311,838 152,997,133 157,393,739
Elementary
High School
Bozeman Public Schools
Levied Mills History (K-12)
250
200
199.54
196.89
196.86
FY10
0.07
0.32
1.30
3.14
9.91
18.01
46.49
120.30
FY11
0.03
0.31
1.24
3.04
9.16
24.66
37.95
120.50
FY12
0.03
0.61
1.06
3.00
9.75
20.24
41.13
121.04
203.26
218.41
216.67
FY14
0.15
0.58
1.53
4.31
12.34
23.20
52.46
123.84
FY15
2.25
0.51
1.23
4.27
12.41
20.91
50.39
124.70
150
100
50
0
Tuition
Bus Depreciation
Adult Education
Technology
Transportation
Building Reserve
Debt Service
General
FY13
0.04
0.59
1.15
2.95
9.61
19.88
49.36
119.68
School Taxation
Plan your tax structure!
• Understand how property taxes work
• Develop comprehensive tax projections before presenting
budgets and/or recommending elections. Consider levied
dollars AND mills
• Keep big picture in mind
• Compare to similar sized, neighboring districts
• Remember how your district fits in the overall tax picture
Montana AA School Districts
2014-15 K-12 Levied Mills
300
250
256.00
249.75
227.18
216.67
215.47
Levied Mills
200
228.99
223.11
Kalispell
Missoula
200.28
150
100
50
0
Average Bozeman
Billings
Butte
Great Falls Helena
Gallatin County K-12 School Districts
2014-15 Levied Mills
300
278.45
250
216.67
Levied Mills
200
234.42
234.33
193.04
151.23
150
122.65
113.50
100
50
0
Average
Bozeman
Belgrade
Big Sky
Manhattan Three Forks
West
Willow Creek
Yellowstone
Bozeman (Proper) Mill History
700
600
603.46
599.90
604.77
2010-2011
196.89
2.62
38.12
101.00
168.75
0.00
96.08
2011-2012
196.86
2.67
37.94
101.00
166.75
0.00
94.68
2012-2013
203.26
2.65
38.82
101.00
166.75
0.00
92.29
632.05
647.37
2013-2014
218.41
2.84
43.44
101.00
173.08
0.00
93.28
2014-15
216.67
2.83
42.11
101.00
188.76
1.50
94.50
Mills
500
400
300
200
100
0
Bozeman Public Schools
School Transportation
School Retirement
State of Montana
City of Bozeman
Gallatin College
Gallatin County
School Taxation
Plan your tax structure!
• Understand how property taxes work
• Develop comprehensive tax projections before presenting
budgets and/or recommending elections. Consider levied
dollars AND mills
• Keep big picture in mind
• Compare to similar sized, neighboring districts
• Remember how your district fits in the overall tax picture
• UNDER PROMISE; OVER DELIVER
Where the Rubber Meets the Road:
Getting to a Balanced Budget
What IS a Balanced Budget?
• Funding source for all anticipated
expenditures
– Includes contingency
– Structurally balanced: duration of costs matches
duration of funding sources
Quick aside on structural balance…
Would you consider these items ongoing or onetime-only?
– Increase in district contribution to employee
health insurance
– Construction of two additional classrooms on high
school building
– Special training event for certified staff
– Purchase of science curriculum
– New anti-bullying program funded entirely by a
grant
Where the Rubber Meets the Road:
Getting to a Balanced Budget
What IS a Balanced Budget?
• Funding source for all anticipated
expenditures
– Includes contingency
– Structurally balanced: duration of costs matches
duration of funding sources
• Supportable by Board, community, staff
• Represents best value for the taxpayers
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Tools in your toolbox:
• Planning
Budget Planning
Roles in the Budget Process
What is the role of:
•
•
•
•
•
•
Community
Board
Supt
Administrators
Clerk
Staff
Budget Planning
Roles in the Budget Process
20-3-324. Powers and duties. As prescribed elsewhere in this
title, the trustees of each district shall:
(1) employ or dismiss a teacher, principal, or other assistant… ;
(2) employ and dismiss administrative personnel, clerks,
secretaries, teacher's aides, custodians, maintenance
personnel, school bus drivers, food service personnel, nurses,
and any other personnel considered necessary to carry out the
various services of the district;
Budget Planning
Roles in the Budget Process
20-3-324. Powers and duties. As prescribed elsewhere in this
title, the trustees of each district shall:
(8) adopt and administer the annual budget or a budget
amendment of the district in accordance with the provisions
of the school budget system part of this title;
(9) conduct the fiscal business of the district in accordance
with the provisions of the school financial administration part
of this title;
Budget Planning
Budget Timeline
•
Critical to have a plan!
•
Plan should include:
•
–
Legal deadlines
–
Internal timelines
Example
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Tools in your toolbox:
• Planning
• New flexibility options
– Increasing General Fund Highest Budget Without a
Vote by decreasing other levies
– Accessing Tuition Fund for special ed costs
– Safety and security transfers
– Interlocal/multidistrict agreements
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Increasing General Fund Highest Budget Without a Vote
by decreasing other levies:
• Requirements: permissive levies in the prior fiscal year
• Mechanics: increase General Fund highest budget without a
vote by the amount other permissive levies are reduced
• Benefits:
• Drawbacks:
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Accessing Tuition Fund for special ed costs:
• Requirements: open Tuition Fund
• Mechanics: levy local taxpayers for the cost of special needs
students, reduced by amounts already funded by other
mechanisms. Use the levy proceeds to pay these costs
• Benefits:
• Drawbacks:
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Safety and Security Transfers:
• Requirements: open Building Reserve Fund
• Mechanics: transfer funds form any fund except Retirement
and Debt Service to Building Reserve Fund, use proceeds for
school safety improvements. Funds not encumbered by
6/30/15 must be transferred back to originating fund.
• Benefits:
• Drawbacks:
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Interlocal/Multidistrict agreements:
• Requirements: two districts with an agreement
• Mechanics: move money from any fund except Retirement &
Debt Service, use money as allowed by agreement
• Benefits:
• Drawbacks:
Where the Rubber Meets the Road:
Getting to a Balanced Budget
Tools in your toolbox:
• Planning
• New flexibility options
– Increasing General Fund Highest Budget Without a
Vote by decreasing other levies
– Accessing Tuition Fund for special ed costs
– Safety and security transfers
– Interlocal/multidistrict agreements
• Permissive Levies
Where the Rubber Meets the Road:
Using Permissive Levies to Balance Mills
• Funds with permissive levies:
– General
– Transportation
– Bus Depreciation
– Tuition
– Retirement
– Adult Ed
Where the Rubber Meets the Road:
Using Permissive Levies to Balance Mills
• Funds with permissive levies:
– General
– Transportation
– Bus Depreciation
– Tuition
– Retirement
– Adult Ed
Where the Rubber Meets the Road:
Using Permissive Levies to Balance Mills
• Funds with permissive levies
• Maximizing flexibility
– Keep full reserves in funds with permissive levies
– Understand funding needs, especially long term
• Spending/costs
• Tax perspective – is this need temporary or permanent?
Thanks for coming!
Drive safe!
Denise Williams, MASBO Executive Director [email protected];
406-442-5599
Mike Waterman, Director of Business Services – Bozeman Public
Schools [email protected] 406-522-6097 or 406-589-4027