Transcript District 7 Stakeholders* School Finance Presentation

District 7 Stakeholders’
School Finance Presentation
February 7, 2012
Who is a Stakeholder?
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Parents and Families
Community Members
Tax Payers
All District 7 Employees
Importance of Effective Schools
Macro Reasons
• Investment in the Future
• Global Competitiveness
Local Reasons
• Provides Resources, Financial and Human, to
meet Challenges
• Enhanced Value of Local Real Estate
Topics of Conversation
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Where and how resources are derived
Where we spend our funds
Recent losses of revenue
Added revenues and cost cutting
Treasury balances
How much does it take to run District 7
Property taxes and home values
Who pays the taxes in our district
Sources of Revenue
12%
7%
81%
Local
State
Federal
Expenses
3%
4%
9%
9%
15%
60%
Salaries
Benefits
Purchased Services
Supplies
Capital Outlay
Other
Local Funds
• Collected by the county
• Received mostly in June and September
• Paid by property owners within district
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Industrial
Residential
Commercial
• Increase determined by CPI
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Consumer Price Index release in January
CPI History
4.5%
4.1%
4.0%
3.5%
3.4%
3.3%
3.4%
2.9%
3.0%
2.7%
2.4%
2.5%
2.5%
2.0%
1.5%
1.9%
1.6%
1.5%
1.0%
0.5%
0.0%
0.1%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Added Revenues from CPI
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
State Funding
• General State Aid
• Based on low income formula
• Categoricals
• Early Childhood
• Apply every year, need to work for funds
• Not every district has an EC Program
• English Language Learning
• Special Education
• Transportation
• Corporate Personal Property Replacement
Tax (CPPRT)
Jan-12
Dec-11
Nov-11
Oct-11
$0
Sep-11
$100,000
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Mar-11
Feb-11
Jan-11
Dec-10
Nov-10
Oct-10
Sep-10
Aug-10
$200,000
Jul-10
Jun-10
$800,000
May-10
$900,000
Apr-10
Mar-10
$500,000
Feb-10
$600,000
Jan-10
State Delinquency to WDSD7
$796,183
$700,000
$569,185
$492,784
$400,000
$300,000
$300,774
$76,646
Federal Funding
• Reliable funding relative to the state
• Programs include:
• Title I (Reading)
• Title III (Bilingual)
• National School Lunch
ARRA Funding
• Received in FY10 & FY11 only
• Program funding ended on June 30, 2011
• Programs funded:
• Title I $69,975 (FY10)
• Special Education $321,697 (FY10 & FY11)
• Education Jobs Program $63,320 (FY11)
Revenue Lost
Cost Cutting
New Revenue & Total Enhancements
Treasury Balances
• In balance with last year
• District 7 in Financial Recognition Status
• $9,000,000 average balance
• $13,184,908 high balance Sept. 2010
• $7,265,312 low balance May 2011
Treasury Balances
$18
$16
$14
Millions
$12
$10
$8
FY2005
$6
FY2010
$4
$2
$0
Min.($3.75M)
Monthly Expenses
Minimum Balance
• Need to maintain at least 25% of annual
expenses on hand at all times
– About $3,750,000
– Below this amount is financially perilous
• Like your checkbook, manage to low balance
Property Taxes
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Local Taxes Account for 81% of Revenue
Affect of Declining Home Values
Relationship between EAV and Taxes
How CPI Affects Revenue to District
EAV, CPI and Tax Rate
Tax Rate
Existing EAV
Existing EAV
Tax Rate
Existing EAV
CPI
Tax Rate
CPI
CPI
Tax Rates by District
Property Taxes
• Property values are falling
– Measured in Equalized Assessed Value (EAV)
• CY2009
$693,271,696
• CY2010
$602,076,737
• 13.2% Decrease in Assessed Value
• School districts and other taxing bodies
– Local revenues increase by rate of CPI
• District 7 revenue increases independent of
home values
District 7 EAV 2009
Industrial
$327,266,620
48%
Residential
$292,495,671
43%
Commercial
$62,254,846
9%
District 7 EAV Change 2009-10
% of Total 2009
% of Total 2010
43.2% 45.2%
48.1%
45.7%
8.7% 9.1%
Residential
Commercial
Industrial
Please Remember
• Issues District 7 faces in managing funds
• Understanding as to what it takes to
financially fund our district
• Property tax funding
Questions and Comments