Public School Finance 101

Transcription

1 Public School Finance 101 Levy Development Committee April 17, 2013

2 2 Major Local Funding Categories Local voters may approve two major categories of supplemental or enhanced funding for school districts: 1. Categorical Levies and Bonds, that must be used for specific purposes as determined by State Law. 2. Maintenance and Operations Replacement Levy (M&O), to be used in the District s general operating budget.

3 Special-Purpose Bonds and Levies Composition in $$ of Levy Measures & 2012 Capital Bond: Capital Levy $38.6M Bus Levy $1.7M Construction Bonds $219.12M

4 Locally approved bonds and levies These bonds and levies can ONLY fund very specific items: Construction bonds: Used to purchase land and construct buildings. ISD is beginning construction on projects from the voter-approved 2012 construction bond. School Bus Levy: Used to purchase school buses in order to maintain safety and efficiency of our fleet. February Capital Levy: Used to fund critical building repairs and technology. February 2014.

5 General Fund: Pays for ALL district operations salaries, utilities, textbooks, supplies

6 Fiscal Year Revenue Budgeted Revenue $ 164,481,015 Local Fees, Tuition, Gifts, Fines, Rents 13.1% Local M&O Levy 21.9% Other Agency Funding 0.3% Federal Funding 3.9% State Funding 60.8%

7 General Fund $164.5 million Where the money comes from: State Apportionment (60.8%) Determined by student enrollment and a series of factors including set base salaries, employee benefits, and non-labor allocations. Local Levy (21.9%) Capped by the Legislature and must be approved by district voters in a special election every two to four years. February Federal Funds (3.9%) Pay for supplemental special education programs, Head Start, and Title I. Offset free and reduced lunches. Tuition and Fees (13.1%) Generated by fee-based programs such as school lunches, childcare, full-day kindergarten, and investment interest earnings. Other School District & Agency Funds (0.3%) Payments from other districts for participation in joint programs and grants from non-state agencies.

8 Fiscal Year General Fund Cost Centers

9 General Fund $167.5 million Where the money goes: Classroom and Classroom support (74.5%) Includes salaries, materials, maintenance, custodial services, utilities, insurance, etc. Special Education (9.6%) Assists children with special needs. Echo Glen (1.2%) Provides the educational program for the state detention facility at Echo Glen. 100% funded by the state. Food Service (2.7%) Provides lunches for students at midday. Transportation (4.2%) Pays for transporting students between home and school for the regular school day. Other Grants/Programs (7.8%) Supports special programs.

10 Questions?

11 Maintenance and Operation Levy (M&O) Levy Development Committee April 17, 2013

12 M&O Levy: Context The M&O Levy is the only locally-approved tax initiative that contributes to the General Fund which directly funds classroom functions and daily operations. Unlike other bonds and levies, the M&O Levy does not include a specific package of items to fund; instead, voters approve a fixed dollar amount per calendar year levy, this is an estimated percentage of the district s total state and federal funding. In our case the Levy Lid is 28.97%(temporarily until 2017)

13 M&O Levy: Facts The M&O Levy is restricted: The state caps the amount of dollars we can collect. Our current levy lid is 28.97% of state and federal funds. The temporary 4% increase is set to expire Every four years, the District can renew the M&O Levy before it expires. At the 28.97% rate over the past four years ( ), the M&O Levy has brought in about $36.6 million in the General Fund annually.

14 M&O Levy: What does it pay for? Classroom Services: ($24.2 million annually) Teacher and EA salaries, extra curricular activities, curriculum development, student assessment, technology, libraries, guidance counseling, student supervision/safety and health services Basic Ed. Support Services: ($5.1 million annually) Custodial services, building maintenance and repair, grounds/playfield maintenance, building security, heat, lights, water, sewer, telephone and central support services, maintenance of reserves Special Education Services: ($2.9 million annually) Teachers, EA, and Unique Needs Specialist Salaries, testing materials, OT, PT, SLP s and Nurses, contractual services required by the student s IEP, out of district placement, etc. Student Transportation: ($3 million annually) To and From School Transportation costs, such as salaries and fuel expense Other Grants& Programs: ($800,000 annually) Additional Title I/LAP Support, ELL, GLAD, National Board, Summer School, etc.

15 Why Are We Limited to the Amount We Can Levy? The amount we can collect is defined by the Washington State Legislature to be a maximum of 28.97% (through 2017) of the state and federal dollars received by the district during the prior year. Because the state s definition and funding of Basic Education does not fully cover the actual needs of a modern school, lawmakers expect local taxpayers to supplement basic education through M&O Levies.

16 February 2014 replacement of M&O Levy: 28.97% of Estimated State and Federal revenue 2015 $43,500,000 $2.35 per thousand dollars of assessed value 2016 $46,000,000 $2.38 per thousand dollars of assessed value 2017 $48,700,000 $2.42 per thousand dollars of assessed value 2018 $51,500,000 $2.45 per thousand dollars of assessed value

17 M&O Levy Part of a three-levy package: The February 2014 M&O Levy is a renewal of the current expiring M&O Levy, which runs at the 28.97% legally defined cap. When this committee makes decisions about the items included in the Transportation Levy and Capital Levy, it will have to factor in the M&O impact as part of the overall package s tax rate.

18 Questions?

19 School Bus Levy Springboard proposal Levy Development Committee April 17, 2013

20 Transportation Background The Issaquah School District services 110 square miles and transports students over 1.3 million miles a year Approximately 8,500 students are transported each day The District has 150 small and large buses in its fleet in order to provide this service

21 How is transportation funded? Back to Finance 101: Transportation Operations: (General Fund) 52% of the cost of drivers, fuel, tires, etc. is funded by the State The remainder is funded out of Local M&O Levy Funds In the District will expend $7.058 million for Transportation Operations Bus Purchase: (Transportation Levy) State funded depreciation monies reimbursed on a 12 year replacement cycle (Historically funds 40% to 60% of purchase cost) A single year local bus levy approved by voters

22 Purchase Plan 2015: 6 Large & 4 Small 2016: 13 Large & 15 Small 2017: 10 Large & 5 Small 2018: 13 Large & 5 Small Total Cost for the purchase plan of 71 Buses over four years is estimated to be $8,340,000 The estimated state monies over that time period will be $4,500,000 In order to execute the long term purchase plan we need to combine State, Local Bus Levy support and use of transportation reserve funds

23 Bus Levy Amount for 2015 The amount requested for a single year Bus Levy for 2015 will be: $1,700,000 This request will generate an estimated tax rate of $.09 per thousand of assessed value in calendar year 2015

24 Next If you have questions regarding the School Bus Levy springboard proposal, contact a Technical Team member. Solicit feedback from your constituent group. Come ready to make recommendations for the springboard proposal and vote for a final School Bus Levy package next meeting.

25 Questions?