RANKIN COUNTY SCHOOL DISTRICT BUDGET REPORT FISCAL YEAR 2018

Transcription

1 Budget Report FY 2018

2 BUDGET REPORT FISCAL YEAR 2018 RANKIN COUNTY BOARD OF EDUCATION Mrs. Ann Sturdivant President Mr. David Grumpy Farmer Vice President Dr. Ruth Burgess Secretary Mrs. Kym Jamison Trustee Mr. David Dyess Trustee Mr. Fred Harrell, Jr. Attorney for the Board SUPERINTENDENT OF EDUCATION Dr. Sue Townsend Prepared by Kevin Brantley Chief Financial Officer Melissa Barnes Director of Finance

3 TABLE OF CONTENTS General Information 2-4 Purpose of Budget 5 Legal Requirements 6 Budget Overview 7 List of Funds 8 Budget Highlights 9-13 Budget Comparison 14 Budgeted Revenue by Source 15 Budgeted Local Revenue 16 Budgeted Expenditures by Function 17 Summary of Support Services Expenditures 18 Budgeted Expenditures by Object 19 Summary of Instruction (by Object) Expenditures 20 Analysis of Fund Balance % to Revenue 21 Debt Schedule 22 Historical Comparison of Enrollment 23 Historical Comparison of Assessed Valuation 24 Historical Comparison of Operational Millage Levies 25 Historical Comparison of Debt Service Millage Levies 26 Historical Comparison of Total Millage 27 Comparison of Tax Rates 28 Combined Budget 29 Detailed Budget N/A 1

4 GENERAL INFORMATION Rankin County School District is the third largest school district in the State of Mississippi, serving kindergarten through twelfth grades with a student population of 19,183. The district consists of twenty-seven schools in its eight attendance zones. The attendance zones are Brandon, Florence, McLaurin, Northwest, Pelahatchie, Pisgah, Puckett and Richland. SCHOOL GRADES ENROLLMENT BRANDON ATTENDANCE ZONE ROUSE ELEMENTARY K STONEBRIDGE ELEMENTARY BRANDON ELEMENTARY BRANDON MIDDLE 6-8 1,305 BRANDON HIGH ,555 FLORENCE ATTENDANCE ZONE STEEN S CREEK ELEMENTARY K FLORENCE ELEMENTARY FLORENCE MIDDLE FLORENCE HIGH McLAURIN ATTENDANCE ZONE McLAURIN ELEMENTARY K McLAURIN HIGH NORTHWEST ATTENDANCE ZONE FLOWOOD ELEMENTARY K HIGHLAND BLUFF ELEMENTARY K NORTHWEST ELEMENTARY K NORTHSHORE ELEMENTARY K OAKDALE ELEMENTARY K NORTHWEST RANKIN MIDDLE NORTHWEST RANKIN HIGH ,650 PELAHATCHIE ATTENDANCE ZONE PELAHATCHIE ELEMENTARY K PELAHATCHIE HIGH PISGAH ATTENDANCE ZONE PISGAH ELEMENTARY K PISGAH HIGH PUCKETT ATTENDANCE ZONE PUCKETT ELEMENTARY K PUCKETT HIGH RICHLAND ATTENDANCE ZONE RICHLAND ELEMENTARY K RICHLAND UPPER ELEMENTARY RICHLAND HIGH

5 Over the last six years, the district's enrollment has increased approximately 200 students. The district estimates an increase of 25 students for fiscal year The district employs a staff of 2,513 that consists of teachers, aides, administrators, office personnel, cafeteria workers, bus drivers, maintenance workers and other district employees. Of the 1,249 certified teachers employed, 623 (50%) have ten or more years of teaching experience and 525 (42%) have advanced degrees. In addition, the district has 159 national board certified teachers. The district has the lowest ad valorem tax rate of any of the seven metro Jackson area school districts (see page 28). The district is one of only a few districts in the state of Mississippi that has an AA financial bond rating from Standard and Poor s national rating service. This rating reflects the district s strong financial position and sound financial management. In addition, the district has the fourth lowest administrative cost percentage (1.83%) of the 144 school districts in Mississippi. The Elementary and Secondary Education Act requires districts to issue school level report cards containing information on the following: Teacher Qualifications: Highly effective teachers are those who hold full state certification in core academic subjects and are teaching in their endorsement areas. Test Data: Test data must be reported for specific subgroups, trends, and student participation rates. In the district s report for : District Accreditation Status: Accredited District State Accountability Label: A Eleven of the district s schools were A level schools. 99% of the core academic subject teachers were highly effective. The district had an attendance rate of 95%. The district had a graduation rate of 86.7%. In fiscal year 2016, the district s subject area test program results were: 78% success rate on the Algebra I test. 86% success rate on the Biology I test. 81% success rate on the English II test. 85% success rate on the U.S. History test. The district s average on the American College Test (ACT) was 19.6 compared to the state average of 17.4 for the graduating class of The senior class of 2016 received scholarship offers totaling more than $43,000,000. 3

6 These achievements are due in part to the rich and diverse curriculum available in the district. The district is accredited by the Southern Association of Colleges and Schools and the State of Mississippi. With a teacher to student ratio of 1 to 15, the district offers the traditional required courses, as well as opportunities for participation in accelerated and advanced placement courses in the high schools. Electives vary by location and include art, business, technology discovery, computer science, foreign language, music, and career technical courses. For children with special needs, a wide range of programs are offered through the special education department. In addition, resource classes are offered for intellectually gifted students in grades Students interested in career and accelerated technical training have access to programs offered at local schools and also to programs available at the Pearl/Rankin Vocational Technical Center at Hinds Community College. The district provides an instructional management system that includes the competencies required in the curriculum frameworks approved by the Mississippi Department of Education. Additionally, the district provides a curriculum structure designed to achieve a vision of excellence that reflects and responds to students' needs and abilities. Students are challenged to acquire skills and attitudes that will enable them to think critically and creatively with knowledge to function as citizens in a changing society. Participation in accelerated and advanced placement courses combined with multiple elective choices enhances opportunities for optimum student achievement. Extracurricular activities play an important role in the education of the total individual. Diversified organizations allow students to develop skills in academics, athletics and in the arts. Students are encouraged to excel individually as well as through team efforts. The use of technology in the classroom is also a priority for the district. Computers are used as teaching tools and information sources, and schools are linked to the internet. The district has implemented a One to One computer initiative which provides a computer for every student in grades With a staff of 21, the district's Technology Department assists teachers in integrating technology into the classroom to further enhance student achievement. All facets of Rankin County School District demonstrate a commitment to continuously improve the services to its students. The Board of Education, the administration, the teachers, support staff, students, and community are proud of the achievements thus far in the district. The following pages contain budgetary information, which shows summaries, charts, amounts, percentages, etc. of the projected revenues and expenditures of the district for fiscal year Also, a detailed budget of all funds is included in this report. 4

7 PURPOSE OF BUDGET The budget is a planning tool that is used to measure and monitor revenues and expenditures. Annual budgets are essential to sound financial management. The purpose of this document is to provide budgetary financial information of the Rankin County School District to interested parties. This document contains summarized as well as detailed budget information relating to the projected revenues and expenditures for the fiscal year ending June 30, For further information regarding the budget, contact Kevin Brantley, Chief Financial Officer, at

8 LEGAL REQUIREMENTS Section , Mississippi Code Ann. (1972), requires the school board with the assistance of the superintendent of each school district to prepare a budget of anticipated revenues and expenditures on or before August 15th for the coming fiscal year, i.e., August 15, 2017, for the 2018 fiscal year. In addition, prior to adoption of the budget, the school board shall hold at least one public hearing to provide the general public with an opportunity to comment on the taxing and spending plan incorporated in the proposed budget. The public hearing will be held at 7:30 a.m. on June 28, 2017, at the Rankin County School District Administrative Office Building, located at 1220 Apple Park Place, Brandon, Mississippi. This section of law also requires two copies of the budget be filed with the levying authority (Rankin County Board of Supervisors) for the school district, budget information as required by the State Department of Education be forwarded to them, and a budget synopsis be published in the local newspaper. Section , Mississippi Code Ann. (1972), allows for revisions to the budget during the fiscal year. Final budget revisions must be approved by the school board on or before October 15 th of the following fiscal year. 6

9 BUDGET OVERVIEW The Rankin County School District anticipates revenues of $189,009,298 and expenditures of $257,789,671 for the fiscal year 2018 (July 1, 2017 to June 30, 2018). These revenues and expenditures are included in the approximately 75 funds of the district. A list of the district's funds is included in this report on page 8. A fund is defined as a financial and accounting entity with a separate set of self-balancing accounts. Some of the major funds that make up the budget are: District Maintenance... Main operating fund School Activity... Maintained at each school Child Nutrition... Federal Fund Title 1... Federal Fund I.D.E.A. (Special Education)... Federal Fund Capital Projects... Construction costs Debt Service... Used to retire notes and bonds Sixteenth Section... Monies generated from leases, royalties, timber sales and interest earnings on sixteenth section investments Of the total anticipated revenue, local sources total $82,835,342 with $71,896,112 of this amount coming from ad valorem taxes. Revenue from activity funds (funds maintained at each school location whose main revenue sources consist of admissions to athletic events and activity fund raising projects) at the schools totals $3,664,200. State sources totaling $89,218,971 make up the largest revenue item with $79,834,971 coming from the Mississippi Adequate Education Program. These revenues are used mainly for teacher salaries. Another state source of revenue is the monies received from the one-cent sales tax increase of This projected revenue known as Education Enhancement funds, totals $725,000 and must be used only for certain legislative mandated items. Federal sources total $14,464,720. The largest amount of these monies will come from Child Nutrition ($5,450,000), Title 1 ($3,034,390) and IDEA ($3,885,000). Sixteenth section sources consist of leases ($1,011,965), timber sales ($500,000) and earnings on investments ($182,300). Of the total anticipated expenditures, $134,463,629 (52%) is for salaries and employee benefits (group insurance, social security and retirement contributions). Of this amount, instructional salaries and employee benefits total $88,241,761. Purchased services, which include payments to construction contractors, insurance, maintenance, professional services, repairs, telephone, travel and utilities total $82,722,940 (32% of the budget). Budgeted expenditures for supplies total $13,641,139 (5% of the budget). Other budgeted expenditures include debt service payments ($20,078,878), equipment ($5,842,764) and other miscellaneous items ($1,040,321). The schedules and charts in this budget report provide more detailed information on the budgeted revenues and expenditures of the district. 7

10 GENERAL DEBT SERVICE (CONT.) 1120 DISTRICT MILL 10 YEAR (2014) 1130 SPECIAL EDUCATION - LOCAL MILL 12 YEAR (2016) 1140 ALTERNATIVE SCHOOL BOND ISSUE 1145 AT RISK BOND ISSUE TH SECTION INTEREST TH SECTION (3-1) TRUST TH SECTION (4-1) TH SECTION PRINCIPAL TH SECTION (5-3) 7401 ADULT ED. ENDOWMENT TH SECTION (6-2) TH SECTION (6-5) AGENCY TH SECTION (7-3) 7310 PAYROLL CLEARING TH SECTION (7-5) 7380 SPED PBIS TH SECTION (8-4) 7500 A/P CLEARING TH SECTION (8-5) 1905 EDEP - FRONTIERS GENERAL ACTIVITY AGENCY 1906 SELF INSURANCE - 1 TO ROUSE ELEM.(10) 1152 BRANDON ELEM.(06) SPECIAL REVENUE 1153 BRANDON MIDDLE(16) EXTENDED SCHOOL 1154 BRANDON HIGH(08) SCHOOL FOOD 1155 FLORENCE ELEM.(18) 2211 TITLE FLORENCE MIDDLE(20) TITLE 1, DELINQUENT 1157 FLORENCE HIGH(22) EEF-BUILDINGS & BUSES 1158 MCLAURIN AC(28) TITLE 2 (EISENHOWER & CSR) 1159 FLOWOOD ELEM.(23) 2560 TITLE 3 - ENGLISH LANGUAGE 1160 NORTHWEST ELEM.(34) 2610 EHA (IDEA) 1162 NORTHWEST HS(32) PRESCHOOL 1163 PELAHATCHIE ELEM.(46) 2711 VOCATIONAL - ST., LOC., & FED PELAHATCHIE AC(44) UNEMPLOYMENT REVOLVING 1165 PISGAH ELEM.(48) 2830 FORESTRY ESCROW 1166 PISGAH HIGH(50) ADULT EDUCATION 1167 PUCKETT AC(52) EDUCABLE CHILD 1168 RICHLAND ELEM.(58) 2906 ROTC 1169 RICHLAND UPPER ELEM.(57) 2907 R-PAL SPECIAL 1170 RICHLAND HIGH(56) EDUCATIONAL INTERPRETER 1171 ALTERNATIVE(92) 2948 LITERACY ED. IN RESIDENCE 1172 MCLAURIN ELEM.(25) 2949 PERFORMANCE BASED PAY GRANT 1173 NORTHWEST MIDDLE(26) SREB 1174 NORTHSHORE ELEMENTARY(36) 2951 GATHERING GROUNDS 1175 OAKDALE ELEMENTARY(38) 1176 STEEN'S CREEK ELEM.(17) CAPITAL PROJECTS 1177 HIGHLAND BLUFF ELEM.(40) MILL 12 YEAR (FY 2016) 1178 STONEBRIDGE ELEM.(12) CONSTRUCTION FUND 1179 PUCKETT ELEM.(054) DEBT SERVICE ACCOUNT GROUPS MILL 20 YEAR (2006) 8000 GENERAL FIXED ASSETS MILL 10 YEAR (2009) 9000 GEN LONG TERM DEBT 8

11 BUDGET HIGHLIGHTS State Funding and Other Funding Issues: The district will receive $79,834,971 in Mississippi Adequate Education Program (MAEP) funding for operational purposes for fiscal year The district s MAEP allocation for fiscal year 2018 is less than full funding by approximately $7,650,000. For the fiscal years 2011 to 2017, the district received approximately $60,000,000 less in MAEP funds than what it should have received had it been fully funded. Other issues that have affected the district s budget in a negative way in the last few years include: Complete loss of the state funded ad valorem tax reduction grant in fiscal year Prior to fiscal year 2013, the district had received funding from this grant of approximately $1,500,000 in each year. Reduction in MAEP funding of approximately $1,000,000 for fiscal year 2015 due to a decrease in average daily attendance of approximately 300 students. This decrease in average daily attendance is attributable to slower growth in enrollment in the district, the new 63% daily attendance rule from the Mississippi Department of Education, and the annexation of students by the Pearl Public School District. Due to the decrease in average daily attendance in fiscal year 2014, the district no longer qualifies as a high growth district under the state law. Therefore, for fiscal year 2015 and years after, the district will not receive approximately $600,000 each year that it has received in past years for being a high growth district. Partially unfunded mandate of employer retirement contributions in fiscal year The employer retirement rate was increased by the state from 14.26% to 15.75%. This increased retirement rate costs the district an additional $1,200,000 and the district only received an additional $600,000 in MAEP funding in that year. Reductions in Budget: To offset not being fully funded from the State, the district will continue with the following budget modifications: Continue 10% reduction in schools operating budgets $ 140,000 Continue 20% reduction in departments operating budgets 640,000 Use sixteenth section funds to supplement budget 1,185,000 Charge indirect cost to federal funds 387,000 $2,352,000 9

12 Personnel Additions: The district plans to employ approximately 45 additional personnel and eliminate 14 positions for a total net increase of 31 positions in fiscal year The total net cost of these additional employees is $1,502,000. Funding for the additional personnel will come from state and local sources. Increase in Salaries: The district will increase salaries for teachers as required by State law. All other employees will receive a 2% increase. Also, the amounts below include the phasing in of a pay scale for bus mechanics, custodians, school secretaries, and school bookkeepers. The additional salary cost including employee benefits are listed below. These amounts represent the portion paid from the district maintenance fund. Teachers (increase of 1% to 3%) $404,000 Assistant teachers (2%) 51,000 Administrators and supervisory staff (2%) 261,000 Noncertified staff (2%) 171,000 Custodians (2%) 49,500 Bus drivers (2%) 64,000 $1,000,500 Utility Costs: The total budget for utilities is $3,160,000. The utilities budget consists of: Water $290,000 Electricity 2,650,000 Natural Gas 220,000 $3,160,000 Retirement and Group Insurance: The cost of the district s portion of group health and group life insurance will total $8,428,000 and the cost of the district s portion of the retirement contribution will total $13,775,000. Purchase of Buses and Vehicles: The district plans to spend $765,000 for the purchase of seven school buses and two Special Education buses. The district will use $245,800 (savings from the fiscal year 2017 transportation budget) from fund balance to offset the cost of these buses. With the purchase of these buses, the district will have a total bus fleet of 332 buses. The district also plans to purchase one service truck ($34,500) for the maintenance department and a drivers education vehicle ($16,904). Education Enhancement Funds: Education Enhancement funds (EEF) are generated from the one cent sales tax increase that went into effect in The district will receive $550,000 of EEF funds to be used for debt payments on a construction note that will be paid off in fiscal year The district s certified teachers will receive EEF funds in the form of procurement cards from the State. Each teacher will be able to spend approximately $400 from the procurement card for instructional supplies and equipment in the classroom. 10

13 Technology Purchases: The district has a One to One technology plan to provide a computer for every student in grades 7-12 within a three year period. For fiscal year 2018 (the third year of the program), the district plans to purchase 3,200 student computers for students in grades 7 and 8. This purchase will be made using a three year lease purchase agreement with a payment of $960,000 in fiscal year In addition to the computer purchases, the district will spend the following amounts on the One to One technology plan: Shell, bag or sleeve for each computer $100,000 Repairs 150,000 Software 150,000 Second year payment on FY 2017 computers 957,490 Third year payment on FY 2016 computers 1,498,797 The district will also provide one computer cart for every two classrooms in the 5 th and 6 th grades. The purchase of the 70 computer carts will be made using a three year lease purchase agreement with a payment of $225,000 in fiscal year In addition to the computer purchases above, the district will continue to upgrade the wireless network by spending $383,800. Capital Projects Expenditures: In March 2017, the voters of Rankin County approved a $178,500,000 bond issue with 74% approval. The proceeds of the bond issue will be used to construct a new high school in the Northwest zone and make major renovations to all schools in the district. The district plans to spend approximately $65,000,000 in fiscal year 2018 relating to the bond issue projects. Instructional Expenditures: In addition to the normal recurring expenditures for instruction, the district plans to spend the following amounts for instruction: Textbooks $1,050,000 Two cases of paper for each teacher 116,760 Library books, materials, equipment and software 113,920 Instructional expenditures 1,942,579 $3,223,259 Other Expenditures: In addition to the expenditures above, the district will spend the following amounts on various items: Cleaning service contracts with various schools $764,289 Replacement of desks 130,000 Athletic, band, and show choir allocations to high schools 356,500 Additional cameras and GPS for buses 79, defibrillators for elementary schools 17,250 11

14 Transfers: Interfund transfers total $21,090,547. Interfund transfers are movements of monies between funds that are not actually expenditures of the district. Transfers are included in other financing sources and other financing uses in the budget. The large amount of interfund transfers is mainly the result of mandates by the Mississippi Department of Education in the accounting of certain funds. Allocation of Monies to Schools: The district allocates local monies to each school based on either a per student or per teacher basis. Listed below are the allocation amounts for the various types of expenditures: SUPPLIES Instruction $8 per student Vocational $1,000 per teacher Special Education $50 per teacher Guidance $200 per teacher Speech $50 per teacher Library $9 per student Principal's Office $2 per student Maintenance ($1,000 base for each school) $12 per student REPAIRS AND MAINTENANCE Library $4 per student Principal's Office $1 per student Maintenance (add l base if under 1,000 students) $13 per student EQUIPMENT Instruction ($1,000 base for each school) $3 per student Library $2 per student Principal's Office $2 per student Maintenance $5 per student OTHER Postage $1 per student Utilities (water, gas and electricity) based on prior year actual amounts Copier Rental $6,500 to $27,340 Also, an additional amount is allocated to some schools for repairs and maintenance based on the age of their building. The additional allocation is based on the following formula: Age of School Additional Allocation 0-10 Years 0% Years 5% Years 10% Years 15% Over 40 Years 20% 12

15 Sixteenth Section Revenue: Revenue from sixteenth section sources is recorded in two main funds. The sixteenth section principal fund is a nonexpendable permanent trust fund whereby only the interest earnings of the principal balance may be transferred to the district maintenance fund and used for any general purpose. The balance of the sixteenth section principal fund on July 1, 2017, will be approximately $16,300,000. A transfer of interest earnings of $175,000 to the district maintenance fund is budgeted for fiscal year The other fund, the sixteenth section interest fund, is a special revenue fund. Its budgeted revenue consists of leases ($1,011,965), timber sales ($425,000), interest earnings ($2,000), and pro-rata revenue from other districts ($50,000). Monies from this fund are usually transferred to the building and improvement fund and are used mainly for renovations, repairs, and improvements to the various buildings in the district. However, in the last several years, monies from this fund have been used to supplement the district s operating budget. The graph below shows the amount of revenues from the sixteenth section interest fund for the past seven years. As one can see, this fund generates significant revenues for the district. SIXTEENTH SECTION INTEREST FUND REVENUE No Change in Total Millage Rate: The operational (excluding debt service) millage rate which is used to help fund the main operating fund (district maintenance fund), will remain at mills in fiscal year The millage rate for debt service will increase by five mills due to millage required to fund the 2017 bond issue. Therefore, the debt service millage rate will increase from 7.37 mills to mills. The total millage rate will be mills. Please note that the county sets the millage rate based on the district s dollar request and the above millage rates are estimates calculated by the district. Actual millage rates will not be known until September 2017, when the county sets this rate. 13

16 BUDGET COMPARISON FISCAL YEAR 2017 AND FISCAL YEAR 2018 FY 17 FY 18 INCREASE PERCENT REVENUES BUDGET BUDGET (DECREASE) CHANGE LOCAL SOURCES $73,351,580 $82,835,342 $9,483, % STATE SOURCES 88,465,299 89,218, , % FEDERAL SOURCES 14,630,452 14,464,720 (165,732) -1.13% SIXTEENTH SECTION SOURCES 2,493,225 2,480,265 (12,960) -0.52% OTHER FINANCING SOURCES 2,887,470 4,358,000 1,470, % TOTAL REVENUE 181,828, ,357,298 11,529, % EXPENDITURES INSTRUCTION 101,420, ,404,064 2,983, % SUPPORT SERVICES: STUDENTS 9,889,389 10,438, , % INSTRUCTIONAL STAFF 9,373,684 9,002,132 (371,552) -3.96% GENERAL ADMINISTRATION 3,426,855 3,349,660 (77,195) -2.25% SCHOOL ADMINISTRATION 11,681,368 12,075, , % BUSINESS 1,177,402 1,153,235 (24,167) -2.05% OPERATION & MAINTENANCE OF PLANT 13,652,851 43,222,949 29,570, % TRANSPORTATION 7,442,247 7,475,542 33, % CENTRAL 1,280,409 1,344,762 64, % NONINSTRUCTIONAL SERVICES 10,739,493 10,618,626 (120,867) -1.13% SIXTEENTH SECTION 326, ,090 19, % FACILITIES ACQUISITION & CONSTRUCTION 9,464,500 34,280,000 24,815, % DEBT SERVICE 13,270,772 20,078,878 6,808, % TOTAL EXPENDITURES 193,145, ,789,671 64,643, % OPERATING TRANSFERS TRANSFERS IN FROM OTHER FUNDS 19,792,254 21,090,547 1,298, % TRANSFERS OUT TO OTHER FUNDS (19,792,254) (21,090,547) (1,298,293) -6.56% NET OPERATING TRANSFERS % NET REVENUES OVER (UNDER) EXPENDITURES ($11,317,840) ($64,432,373) ($53,114,533) % 14

17 BUDGETED REVENUE BY SOURCE FISCAL YEAR 2018 BUDGET AMOUNT PERCENT OF TOTAL BUDGET LOCAL SOURCES $82,835, % STATE SOURCES 89,218, % FEDERAL SOURCES 14,464, % SIXTEENTH SECTION SOURCES 2,480, % OTHER SOURCES (excluding interfund transfers) 4,358, % TOTAL BUDGETED REVENUE $193,357, % 15

18 BUDGETED LOCAL REVENUE FISCAL YEAR 2018 BUDGET AMOUNT PERCENT OF TOTAL LOCAL SOURCES PERCENT OF TOTAL BUDGET AD VALOREM TAXES $71,896, % 37.18% TUITION 2,372, % 1.23% DAILY LUNCH SALES 3,015, % 1.56% REVENUE FROM ACTIVITY FUNDS 3,664, % 1.90% INTEREST EARNINGS 1,167, % 0.60% OTHER LOCAL SOURCES 720, % 0.37% TOTAL BUDGETED LOCAL REVENUE $82,835, % 42.84% 16

19 BUDGETED EXPENDITURES BY FUNCTION FISCAL YEAR 2018 BUDGET AMOUNT PERCENT OF TOTAL BUDGET INSTRUCTION $104,404, % SUPPORT SERVICES 88,062, % NON-INSTRUCTIONAL SERVICES 10,618, % SIXTEENTH SECTION USES 346, % FACILITIES ACQUISITION & CONSTRUCTION 34,280, % DEBT SERVICE 20,078, % TOTAL BUDGETED EXPENDITURES $257,789, % 17

20 BUDGETED EXPENDITURES OF SUPPORT SERVICES FISCAL YEAR 2018 BUDGET AMOUNT PERCENT OF TOTAL SUPPORT SERVICES PERCENT OF TOTAL BUDGET STUDENTS $10,438, % 4.05% INSTRUCTIONAL STAFF 9,002, % 3.49% GENERAL ADMINISTRATION 3,349, % 1.30% SCHOOL ADMINISTRATION 12,075, % 4.68% BUSINESS 1,153, % 0.45% OPERATION & MAINTENANCE OF PLANT 43,222, % 16.77% TRANSPORTATION 7,475, % 2.90% CENTRAL 1,344, % 0.52% TOTAL SUPPORT SERVICES $88,062, % 34.16% 18

21 BUDGETED EXPENDITURES BY OBJECT FISCAL YEAR 2018 BUDGET AMOUNT PERCENT OF TOTAL BUDGET SALARIES $101,089, % EMPLOYEE BENEFITS 33,373, % PURCHASED PROFESSIONAL SERVICES 7,932, % PURCHASED PROPERTY SERVICES 70,514, % OTHER PURCHASED SERVICES 4,275, % SUPPLIES 13,641, % PROPERTY 5,842, % DEBT SERVICE 20,078, % OTHER OBJECTS 1,040, % TOTAL BUDGETED EXPENDITURES $257,789, % 19

22 SUMMARY OF INSTRUCTION BY OBJECT BUDGETED EXPENDITURES FISCAL YEAR 2018 BUDGET AMOUNT PERCENT OF TOTAL INSTRUCTION PERCENT OF TOTAL BUDGET SALARIES $66,444, % 25.77% EMPLOYEE BENEFITS 21,797, % 8.45% PURCHASED SERVICES 5,549, % 2.15% SUPPLIES 6,045, % 2.35% PROPERTY 4,037, % 1.57% OTHER 529, % 0.21% TOTAL INSTRUCTION $104,404, % 40.50% 20

23 DISTRICT MAINTENANCE FUND ANALYSIS OF FUND BALANCE % TO REVENUE BALANCE AS OF JUNE 30, % OF REVENUE AMOUNT % $15,685, % $14,041, % $13,303, % $22,404, % $21,795, % $19,369, % $17,041, % $18,588, % $17,995, (Projected) 13.89% $19,500,000 21

24 DEBT SCHEDULE ISSUE ISSUE MATURITY BALANCE FY 18 BALANCE DESCRIPTION AMOUNT DATE DATE 6/30/17 PAYMENT 6/30/ BOND ISSUE $69,350,000 12/20/01 10/1/20 $19,195,000 $4,480,000 $14,715, BOND ISSUE 178,500,000 6/20/17 6/30/42 100,750, ,750,000 3 MILL 20 YEAR (2007) 17,000,000 8/1/06 8/1/26 10,080, ,000 9,240, EEF NOTE 4,500,000 6/1/08 6/1/18 525, , MILL 10 YEAR (2009) 5,700,000 5/6/09 4/1/19 1,325, , ,000 3 MILL 10 YEAR (2014) 12,000,000 8/1/13 8/1/23 8,730,000 1,150,000 7,580,000 3 MILL 12 YEAR (2015) 8,000,000 5/27/15 6/1/27 6,840, ,000 6,235, NOTE (COMPUTERS) 998,000 9/4/14 9/5/17 169, , NOTE (COMPUTERS) 4,468,188 5/1/15 8/15/17 1,491,488 1,491, NOTE (COMPUTERS) 2,872,469 6/15/16 8/15/18 1,914, , , NOTE (COMPUTERS) (est.) 652,000 7/1/17 10/1/17 652, , , NOTE (COMPUTERS) 2,880,000 6/15/17 8/15/19 2,880, ,000 1,920,000 TOTAL $154,553,075 $12,048,585 $142,504,490 As of June 30, 2016, the percentage of the amount of outstanding bonded indebtedness to the assessed property valuation was 1.42%. The district is well below the state law limitation percentage of 15%.

25 HISTORICAL COMPARISON OF ENROLLMENT Enrollment (AS OF FEBRUARY) FY11 18,971 FY12 19,164 FY13 19,284 FY14 19,243 FY15 19,127 FY16 19,152 FY17 19,183 FY18 (ESTIMATED) 19,208 23

26 HISTORICAL COMPARISON OF ASSESSED VALUATION Assessed Valuation FY11 $1,235,595,000 FY12 $1,235,513,000 FY13 $1,250,880,000 FY14 $1,275,882,000 FY15 $1,306,237,000 FY16 $1,334,061,000 FY17 $1,370,345,000 FY18 (ESTIMATED) $1,397,752,000 24

27 HISTORICAL COMPARISON OF OPERATIONAL MILLAGE LEVIES Operational Millage FY FY FY FY FY FY FY FY18 (ESTIMATED)

28 HISTORICAL COMPARISON OF DEBT SERVICE MILLAGE LEVIES Debt Service Millage FY FY FY FY FY FY FY FY18 (ESTIMATED)

29 HISTORICAL COMPARISON OF TOTAL MILLAGE Total Millage FY FY FY FY FY FY FY FY FY FY FY FY18 (ESTIMATED)

30 COMPARISON OF TAX RATES FOR FISCAL YEAR 2017 TAX RATE SCHOOL DISTRICT (MILLS) JACKSON CLINTON HINDS LAMAR PEARL MADISON DESOTO RANKIN

31 Original x Combined Budget Amended 2018 FISCAL YEAR Date July 19, 2017 Govermental Fund Types Special Capital Debt Permanent REVENUES General Revenue Projects Service Trust Total Local sources 63,270,070 3,167, ,000 15,548,112 82,835,342 Intermediate sources 10,000 10,000 State sources 85,196,971 4,022,000 89,218,971 Federal sources 507,000 13,957,720 14,464,720 Sixteenth section sources 1,489,965 75, ,000 2,480,265 Total Revenues 150,474,006 21,222, ,000 15,548, , ,009,298 EXPENDITURES Instruction 92,459,847 11,944, ,404,064 Support services Students 9,191,479 1,246,772 10,438,251 Instructional staff 7,166,181 1,835,951 9,002,132 General administration 2,580, ,150 3,349,660 School administration 11,974, ,918 12,075,482 Business 1,153,235 1,153,235 Operation and maintenance of plant 12,456,653 16,296 30,750,000 43,222,949 Transportation 7,438,852 36,690 7,475,542 Central 1,344,762 1,344,762 Noninstructional services 2,121,710 8,496,916 10,618,626 Sixteenth section 271,090 75, ,090 Facilities acquisition and construction 30,000 34,250,000 34,280,000 Debt service 3,812, ,969 15,721,675 20,078,878 Total Expenditures 152,001,117 25,066,879 65,000,000 15,721, ,789,671 Excess of Revenues Over (Under) Expenditures (1,527,111) (3,844,699) (64,150,000) (173,563) 915,000 (68,780,373) OTHER FINANCING SOURCES (USES) Other financing sources 21,409,223 4,029,324 25,438,547 Other financing uses (20,303,247) (612,300) (175,000) (21,090,547) Total Other Financing Sources (Uses) 1,105,976 3,417, (175,000) 4,348,000 Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (421,135) (427,675) (64,150,000) (173,563) 740,000 (64,432,373) FUND BALANCES Fund Equity, July 1, ,934,900 4,940, ,000,000 2,717,000 16,300, ,891,900 Fund Equity, June 30, ,513,765 4,512,325 47,850,000 2,543,437 17,040,000 95,459,527