Transcript Act 60

School Finance
Presented By:
Vermont School Boards Association
1
Key Assumptions


Connection between per pupil
expenditure and homestead tax
rate
Taxes will be paid on the lesser of
either income or property value
for 75% of residents
2
Getting Started

Board clarifies expectations for
education programs

Board identifies increase taxpayers may
support and states this to administrators

Administrators develop budget to deliver
programs within board parameters

Leadership team decides financial
implications of the budget
3
ORGANIZATIONAL FILTERS
DECISION MAKING
ETHICS/VALUES
ROLES/RESPONSIBILITIES
VISION/MISSION
POLICY/PROCEDURE
STRATEGIC PLAN
ACCOUNTABILITY
4
CORE VALUES



Adults and students will take
responsibility for their actions.
All members of the school district will
behave and be treated in a professional
and respectful manner.
All members of the district must learn
and understand their respective roles
and responsibilities.
5
CORE VALUES


The district will clearly define
and communicate its vision,
mission, and objectives.
The district will focus on
outcomes and the achievement
of its intended goals.
6
ROLES & RESPONSIBILITIES
Effective boards focus time in 6 areas:

Represent community:

Two-way communication

Listen and reflect

Advocates for public education

Establish the expected results: the
district exists to make a differenceboard determines what that difference
looks like for students
7
ROLES & RESPONSIBILITIES
Effective boards focus time in 6 areas
(con’t):
 Establishing limits for district
operation
 Hires superintendent to achieve results
 Governs own process as board
 Monitors and is accountable to
community
8
VISION & MISSION
Must make Vision & Mission living
documents:

Identify Measurable Outcomes

Identify Indicators of Progress

Agree Upon Targeted Timelines

Require Appropriate Feedback
9
POLICY & PROCEDURES



Clearly articulate policies and
procedures
Establish a renewal cycle
Review VSBA model policies on the
web site – www.vtvsba.org
10
STRATEGIC PLAN
Communicate
&
Feedback
Involve Bds.
Admin.
& Staff
Where Are
You Now?
How Did
We Get
Here?
How Do We
Get There?
Measure,
Adapt, &
Renew
Examine
District
Identity
Set
Objectives
Establish
Time Frame
Where We
Want To Go?
Conduct
S.W.O.T.
Analysis
11
ACCOUNTABILITY


There is no substitute for achieving
results
Explicit feedback mechanisms to outline
how the school district is achieving its
mission and vision and whether or not its
performance is satisfactory
12
Connecting Strands

Link from budget to:
 Core Values



Vision and Mission - Active
Strategic Plan
Accountability Feedback
 Target Activities
 Monitoring Process
13
Act 68 Overview
Money In
Homestead
Property Tax
Non-Resident/
Business
Property Tax
General Fund
Lottery
Sales Tax
Education Fund
15
Money Out
Bristol
Barre
Bennington
Bethel
Brattleboro
Education Fund
16
Homestead Tax Money In
Bristol voters
Act 68
Legislature
Per Pupil
Cost
Base
Amount
Base
Rates
Grand List and CLA
Education Fund
Other
Sources
17
Sources of Vermont School Revenues
18
Cost Drivers

Programs


Functions



Regular, SPED, Tech. Ed.
Processes and Activities
Student and Staff Support
Objects

Salaries, Benefits, Materials
19
Annual Health Insurance Increases
25
20
15
% Increas
10
5
0
2000
2002
2004
2006
20
Annual Special Education Increases
(K-12 Service Plans)
12
10
8
6
% Increase
4
2
0
2000
2002
2003
2004
2005
2006
21
School Spending Patterns Change
(Personal Income Growth 4.7%)
Annual Education Spending Percent
Increase from Prior Year
7.0%
6.60%
6.5%
5.98%
6.0%
5.41%
5.5%
5.0%
4.37%
4.5%
4.0%
FY2005
FY2006
FY2007
FY2008
22
9-Year Average Annual
Change in Education
Education Fact
Sheet
Spending
Per Pupil
Demonstrates Equity Between High and Low Spending Districts
0.035
0.032
0.03
0.025
0.024
0.024
0.02
0.015
0.015
0.01
0.005
0
-0.005
-0.007
-0.01
FY1998 Spending Quintile
Lowest
2nd
3rd
4th
Highest
23
75% of Budget is Fixed by
the Negotiated Contract
Options for Substantial Cost Reduction:
 Eliminate Programs
 Increase Student/Teacher Ratio
VSBA Negotiations Resources
Password Information
UserID: “VSBA8”
Password: “2008”
27
Northern Vermont
•Base
Salaries
•Bachelor
Highest
Salaries
•Master
Base
Salaries
(This is base salaries)
28
29
Per Pupil Spending & Equalized Tax Rates
Per Pupil Spending & Equalized Tax Rates
1.47
Eq. Tax Rate
1.37
1.27
1.17
1.07
0.97
0.87
7,736
8,236
8,736
9,236
9,736
10,236
10,736
11,236
11,736
12,236
12,736
Per Pupil Spending
30
Movement in Tax Amounts
5,000
4,500
4,000
Tax Bill 3,500
3,000
Based on
2,500
$150,000
2,000
Housesite
1,500
1,000
500
0
2004
2005
2006
2007
2011
31
Equalized Pupil Weights
Weight
Scale
Scaled
Weight
1.0
0.910
0.91
Sec. (7 – 12)
1.13
0.910
1.028
Elem. Poverty
0.25
0.910
0.228
0.2825
0.910
0.257
.20
0.910
0.182
Elem. (PreK-6)
Sec. Poverty
English
Learners
32
Student Enrollment Trends
Montpelier School Enrollment Projections
Yearly Projection Lines
1100
1050
1000
October Enrollment
950
900
850
Comparison of Actual to Projected
Fall 2005
800
Fall 2003
Fall 2004
Increases in Grades K, 3, 10, 11, 12
Decreases in Grade 4 and 9
750
Fall 2005
700
650
600
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2011-12
School Years
34
Excess Spending Threshold
FY 2008 - $12,594
FY 2009 - $13,200(est.)
(Statewide avg. of $10,660 increased by 25%)
35
Interactive Budget Spreadsheet
Budget
Changes
Total
- Revenue
$ 12,000,000
$
Base Amount
$
7,736
46,000
Common Level of Appraisal
$ 12,046,000
VT Homestead Rate
$
0.87
VT Non-Residential Rate
$
1.36
$
200,000
Act 68 Expenses
$ 11,846,000
Equalized Pupils
1113.25
100%
Income Sensitivity
Act 68 Per Pupil Cost
$
10,641
House Site Value
Residential Tax Rate
$
1.20
Household Income
$
76,000
Non-Residential Rate
$
1.36
Calculated Property Tax
$
2,484
Prior Year Per Pupil Cost
$
Act 68 Benefit
$
330
Actual Property Tax
$
36
2,154
Act 68 per pupil change
9,053
17.5%
$
180,000
37
2008 State Tax Rates



Homestead tax rate = $0.87
Non-resident & business tax rate
= $1.36
School budgets do not impact
non-resident and business tax
bills
38
Non-resident Tax Rate


CLA impact same as homestead
tax rate
Fund raising doesn’t help any
more – No financial advantage
for benefactor
39
Non-Resident CLA Impact
$1.36 Non-Resident & Business
(No income sensitivity provisions)
Town A (90% CLA) adjusted tax rate
$1.36/0.90 = $1.51
Town B (80% CLA) adjusted tax rate
$1.36/0.80 = $1.70
40
Eligibility for Income Adjustment


2007 tax return $90,000 or less
based on entire house site value
Income over $90,000 eligibility
based on first $200,000 of
house site value
41
Income Sensitivity

Homestead income less than $90,000 


Tax credit subtracted from school tax bill
Based on 2007 income and FY 2009 school
budget
Homestead income less than $47,000 of
total tax bill

Combined municipal and adjusted school tax
must not exceed 5% of income
42
Example 1 - $10,404
Equalized Tax Rate = $1.17
CLA = 85%
Tax Rate on Bill = $1.38
% of Household Income 2.23%
2007 House Site Value As
Listed
2007 Household Income
Reduction applied to following
year FY 2009 tax bill
Amount
Tax
$127,500 $1,759
$50,000 $1,115
$644
43
44
45
Income Sensitivity Web Resources
Town Rebates and Prebates
http://www.state.vt.us/tax/pdf.word.e
xcel/pvr/reports/2007/TaxAdjustme
ntSummary_PrebatesAndRebates.pdf
46
What is CLA?
Common Level of Appraisal

Common Level of Appraisal
 Town grand list divided by the
state equalized grand list


Used to equalize property values
and resulting tax burdens
throughout the state
Statewide average CLA 82.39%
48
Effect of CLA on Tax Rates
If CLA Is
Increase Tax Rate By
95%
90%
5%
11%
85%
18%
80%
25%
75%
70%
33%
43%
65%
54%
49
Under Act 130

Homestead tax collected by town


Elem. & secondary districts each
have own tax rates (don’t avg. rates)
Districts determine ed. spending
per pupil


Based on grade range of district
Prek -12, K-6, 7- 12, 9-12, etc.
50
Under Act 130




Union districts are recognized
All districts will determine education
spending per equalized pupil
All districts will have a homestead tax
rate
Town’s homestead tax rate – weighted
average of district tax rates
51
Homestead Tax Rate for Bedrock
Town of Bedrock
60% of eq. pupils are members of
Bedrock Elementary District
40% of eq. pupils are members of
Mudville Union High District
52
Homestead Tax Rate for Bedrock
Bedrock Elem. tax rate = $1.40
Mudville Union High tax rate = $1.55
60% of 1.40 =
0.84
40% of 1.55 =
0.62
Bedrock tax rate = 1.46
53
Homestead Tax Rate for Milton



100% of equalized pupils in
Milton are members of Milton
School District
Milton School District tax rate
= $1.26
Town of Milton Homestead tax
rate = $1.26
54
What Do Voters Get for Their
Tax Dollars
Show Me the Goods!
Link the budget to
measurable goals as well
as student and school
accomplishments!
Action Plan
 Student
performance data
 Target
areas needing
improvement
 Professional
development
 New curriculum
57
Tracking Student Performance
 Assessment
scores
 Graduation rates
 Achievement of students
with special needs
 Higher education/post
secondary enrollment
NSBA Data Connection
58
Tracking Student Performance
 Salary
levels for graduates
 Awards & recognition
received
 Scholarships received
 Participation in AP courses
NSBA Data Connection
59
Other Student Performance Indicators
 Community
service & cocurricular activities
 Graduate
& parent
satisfaction surveys
 Attendance/drop
out rates
60
School Indicators





Student/teacher ratio
Teacher expertise & awards
% of parents involved
Number of community
volunteers
Types/# of business
partnerships
61
62
Comparative Web Data
State School Report Data
 http://crs.uvm.edu/schlrpt/cfusi
on/schlrpt06/vermont.cfm
Comparative School Data
 http://education.vermont.gov/ne
w/html/pgm_assessment/data.ht
ml#necap
63
Starting the Budget
Development
Process
64
Getting Public on Board
6 Months Prior to Vote
 Involve key opinion leaders on
budget committee


Do not spend public funds
promoting budget passage
Just communicate facts
65
Getting Public on Board
3 Months Prior To Vote
 Prepare budget

Prepare voting process

Organize PR Committee

Communicate with local
opinion leaders
66