INDEPENDENT SCHOOL DISTRICT NO. 719 BUDGET PLANNING Presented on Monday, January 23, 2017 by Julie Cink, SFO Executive Director of Business Services
Agenda Outcomes Strategic Roadmap Budget Calendar Financial Data Enrollment Projections Revenue Assumptions Expenditure Assumptions Expenditure Considerations and Discussion
Outcomes Overview of the PLSAS District Finances Provide input on assumptions for enrollment and revenue Build a better understanding of financial impact of the assumptions on the budget
Strategic Roadmap Our mission is to educate all learners to reach their full potential as contributing and productive members of our ever-changing global community.
Budget Calendar January 23, 2017 Board Work Session 2017-18 Budget Parameter Discussion o Enrollment Projections o Revenue assumptions o Expenditure assumptions o Staffing assumptions o Legislative assumptions February 27, 2017 Board Work Session 2017-18 Enrollment Update o Preliminary Kindergarten Enrollment Numbers 2017-18 Preliminary Budget Update based on Budget Assumptions 2017-18 Program and Staffing Reductions/Additions Discussion March 27, April 24 and May 22, 2017 Board Work Sessions 2017-18 Enrollment Update 2017-18 Preliminary Budget Discussion 2017-18 Staffing Update Legislative Updates June 5, 2017 Board Meeting 2017-18 Preliminary Budget Presentation/Approval
District Budget Overview 2016-17 Approved Budget
District Budget Overview Current Revenue
District Budget Overview Current Expenditures
District Budget Overview District-Wide Levy
District Budget Overview Operating Referendum and Tech Levy
District Budget Overview Referendum and Tech Levy Comparisons
2016-17 General Education Revenue* Comparison There are 331 School Districts in Minnesota. Burnsville #71 $9,469 Bloomington #85 $9,287 Eden Prairie #96 $9,095 Eastern Carver County #154 $8,618 Rosemount AVE #164 $8,531 Lakeville #191 $8,342 Farmington #228 $8,104 PLSAS #260 $7,908 Shakopee** #292 $7,708 * General Education Revenue includes basic formula, declining pupil, gifted & talented, referendum, local option revenue, Qcomp, equity, compensatory, compensatory pilot, limited English profficiency, extended time, pension adjustment, operating capital, sparsity, transportation sparsity, school trust lands endowment, transition, small schools, optional charter transportation, and optional Faribault academies. ** Does not receive QComp funding Source: Schools for Equity in Education
State Aid and Referendum Referendum revenue allows districts to increase the revenue available in the district s general fund with the approval of the voters in the district. State Aid Formula Tier 1: Referendum revenue up to $300 per pupil unit is equalized at $880,000 of market value. Tier 2: Referendum revenue between $300 and $760 per pupil unit is equalized at $510,000 of market value. Tier 3: Referendum revenue above $760, up to 25% of the basic formula allowance is equalized at $290,000. Districts that qualify for sparsity revenue are eligible for equalization of $290,000 on the entire amount of referendum authority above $760. PLSAS: 2017 Equalizing Factor is $527,161
PLSAS Operating Referendum Expires 2018-19 Maximum Referendum Levy: $1,936.70 Tier 2: The next $373.97 of referenda is local levy ($527,161/$510,000). Average MN School Referendum Amount: $805 Tier 1: The remaining 60% is local levy ($527,161/$880,000). Tier 1: Of the first $300 of referendum for PLSAS, 40% is paid via State Aid.
Source: 2015-16 PLSAS Audit General Fund Revenue and Expenditure per Student
District Fund Balance Policy The school district will strive to maintain a minimum total unassigned and assigned general fund balance of eight (8) to twelve (12) percent of the annual budget (4-6 weeks of operating expenses). Deviation from the fund balance will be reviewed and addressed by the school board with recommendation from Administration/Finance Committee.
District Budget Overview Fund Balance
Historical Enrollment
Oct 1 Resident Enrollment Projections At High Migration, the district would expect an average enrollment of 250 additional resident students over the next 5 years. *Source: 2016 Hazel Reinhardt Demographic Study
Oct 1 Resident Enrollment Trends Ten-year average increases in resident enrollment range from 151 to 231 students. Source: 2016 Hazel Reinhardt Demographic Study
Open Enrollment Fall Data
Open Enrollment Trends The following table illustrates the effect of reducing nonresident kindergarten combined with the net migration rates of the past year. (Three of the survival rates are positive and nine are negative.) Of course, if total net migration were not negative, nonresident enrollment projections would be different from those shown in the table below. NONRESIDENT ENROLLMENT PROJECTIONS Year K at 105 K at 90 K at 80 K at 65 2016-17 1,008 1,008 1,008 1,008 2017-18 1,013 998 988 973 2018-19 1,008 978 958 928 2019-20 1,001 957 927 884 2020-21 998 941 904 847 2021-22 996 927 881 813 2022-23 1,005 926 873 794 2023-24 1,011 920 860 769 2024-25 1,013 912 844 743 2025-26 1,009 899 826 716 2026-27 1,009 890 811 692 Source: 2016 Hazel Reinhardt Demographic Study
5 Year Enrollment Projections Assumptions Moderate to High Resident District Growth in Migration Open enrollment is closed to 1% at all grade levels for 2017-18 Open enrollment is open for subsequent years
Enrollment Projections 2017 2018 2019 2020 2021 2022 Kindergarten 606 535 620 630 635 640 First 609 637 568 658 668 674 Second 613 641 670 598 693 704 Third 613 652 682 713 636 737 Fourth 644 642 683 714 747 666 Fifth 580 673 671 714 747 781 Sixth 634 634 748 745 792 829 Seventh 650 676 675 797 794 844 Eighth 690 657 693 693 817 815 Ninth 650 782 744 785 785 926 Tenth 685 650 775 738 779 779 Eleventh 661 660 631 753 717 756 Twelfth 640 640 651 621 745 708 TOTAL 8,275 8,479 8,811 9,159 9,555 9,859
General Fund Revenue Assumptions 2% on Base Formula $121 PPU for FY18 ($1.1M) Additional revenue due to student enrollment growth ($1.2M $1.8M) Compensatory funding unchanged Operating referendum revenue at $674 PPU for FY 18 and FY 19 Discussion of Affect of Increases/Decreases for FY20-FY22 Changes in fees (activities, parking, etc.)
General Fund Expenditure Assumptions Current staff wages and benefits Additional teaching staff to accommodate for enrollment $62,500 per teaching staff $82,500 per Special Education teaching staff Other staffing needs (custodial, clerical, para, admin) Additional bus @ $60,000 1% increase in transportation $50,000 Actual salary and wages and/or 4-year average increase calculation $2.25M 2% increase in supplies/materials
Impact of Open Enrollment on District Finances Legend Base Assumptions with OE Base Assumptions Minus OE Base Assumptions Minus OE FY18 Only
Other Potential Expenditures Add l technology due to enrollment growth Add l technology needs due to reduction of computer labs in elementary schools Add l furniture, fixtures and curriculum due to enrollment growth Expansion of MNCaps
Lease and Rental Information Lease Levy: Bridges ALC and MNCAPS PLHS Addition and Turf Rent: Co-curricular Activities: Ice Time at Dakotah Savage Dome - As needed due to inclement weather Minneapolis Gun Club-trap shooting Golf Course Rental Alpine and Nordic Ski - Buck Hill and Highland Hills McColl Pond ELC
Historical Enrollment & Building Capacity
Projected Enrollment & Building Capacity *Enrollment totals are K-12 excluding ALC
2017-18 Kindergarten Enrollment To be updated after K registration
Questions and Comments