School Finance Fundamentals

USBA Leadership AcademySeptember 9, 2011

“Making Sense of it All”

BUDGET BASICSMINIMUM SCHOOL PROGRAMSCHOOL DISTRICT TAXATION

DISCUSSION TOPICS

BUDGET BASICSBUCKETS OF FUN(ds)

Revenue Sources --- Where does all the money come from?EXPENDITURES -- Where does all the money go?

MAINTENANCE & OPERATIONS ==

NON K-12 == => DEBT SERVICE ===

CAPITAL OUTLAY===

FOOD SERVICES ==

BUCKETS OF FUN(ds)

REVENUE SOURCES

37.90%

49.50%

12.60%

State Average per USOE FY10

LocalStateFederal

PROPERTY TAXES INTEREST INCOME SCHOOL & ACTIVITY FEES INTER-DISTRICT BILLINGS SCHOOL LUNCH SALES COMMUNITY EDUCATION PROGRAMS REDEVELOPMENT AGENCY (RDA) PAYMENTS

LOCAL REVENUE

MINIMUM SCHOOL PROGRAM EDUCATION FUND

UNIFORM SCHOOL FUND STATE INCOME TAX CORPORATE TAXES

SCHOOL LUNCH & DRIVER EDUCATION PROGRAMS

TAXES ON ALCOHOL SALES & DUI’s

STATE REVENUE

NCLB – NO CHILD LEFT BEHIND TITLE 1 PROGRAMS – POVERTY, MOBILITY, ESL TITLE 2 PROGRAMS – QUALITY TEACHING/TRAINING

IDEA – SPECIAL EDUCATION PROGRAMS SCHOOL LUNCH PROGRAMS American Recovery and Reinvestment Act

(ARRA) EDUJOBS

FEDERAL REVENUE

SALARY & BENEFITS(UP TO 90% OF GENERAL FUND)

PROFESSIONAL SERVICES INSTRUCTIONAL SUPPLIESTEXTBOOKS & LIBRARY BOOKS INSTRUCTIONAL EQUIPMENT

EXPENDITURES

PUPIL TRANSPORTATION SERVICES (TO & FROM CURRENTLY FUNDED AT ABOUT 60% OF COST)

FACILITY MAINTENANCE & REPAIRS DEBT SERVICE (BOND PAYMENTS) CAPITAL IMPROVEMENTS & NEW SCHOOLS CAPITAL EQUIPMENT FOOD SERVICES COMMUNITY RECREATION / ATHLETICS PRESCHOOL PROGRAMS ADULT EDUCATION

OTHER EXPENDITURES

WEIGHTED PUPIL UNIT (WPU)CURRENT VALUE = $2,816

(Except for Special Ed Add-On and CTE@ $2,577)

Based on Average Daily Membership

1 student for 180 days = 1 WPU (Grades 1 thru 12)Kindergarten Students generate @ 55%

MINIMUM SCHOOL PROGRAM

Series1

$- $1,500 $3,000

WPU VALUE

WPU HISTORY

YEAR WPU VALUE

1988 $1,204

1995 $1,608

2000 $2,006

2005 $2,182

2009 $2,577

2012 $2,816

T H E L I N E

Basic School Program: WPU Driven Programs (K-12, Sp.Ed, CTE, Others)

Related to Basic: (Transportation) Special Populations: (At-Risk, Accelerated Programs) Other Programs: (10 Line Items) One-time Funding Items (4 Line Items) Voted Leeway Programs

The Infamous “LINE”

Can we rob Peter to pay Paul?

What are all these Programs?

SORRY!

Your Business Administrator Isn’t Kidding!!

Things Are Not Always As They Appear!

Did the WPU Really Increase ??

WPU Comparison FY 12 Budget General Prog BudgetedFY11 FY11 $$$ FY12 FY12 $$$

Description WPU's WPU Value Generated WPU's WPU Value Generated ChangeTotal Regular Basic Program 6198.764 15,974,216$ 6198.764 17,455,719$ 1,481,504$ K-8 Class Size Reduction 377.343 2,577 972,413$ 377.343 2,816 1,062,598$ 90,185$ Total "General" Program 6576.107 16,946,629$ 6576.107 18,518,317$ 1,571,689$

Flexible WPU Distribution 6576.107 343 2,253,779$ 6576.107 36 235,492$ (2,018,287)$ Total General wih Flex WPU 19,200,408$ 18,753,809$ (446,598)$

Effective WPU Value 2,920$ 2,852$ (68)$

THE LINE

You’ve Got to Be Kidding Me!

ASSESSED VALUTIONTAX RATES --- TAX EFFORTCERTIFIED TAX RATELOCAL CONTROL --- “OR NOT”

School District Taxation

THE SUM OF THE TAXABLE VALUE OF ALL PROPERTIES WITHIN THE JURISTICTION

Based on Fair Market Value (FMV) Primary Residences Taxed @ 55% Second Homes Taxed @ 100% Commercial Property Taxed @ 100%

ASSESSED VALUATION

22 PARK CITY24 RICH21 N SUMMIT32 WASATCH

09 EMERY36 SALT LAKE05 CARBON42 CANYONS02 BEAVER33 WASHINGTON

18 MORGANAVERAGE

15 JUAB39 LOGAN26 SEVIER20 N SANPETE37 OGDEN25 SAN JUAN01 ALPINE

30 TOOELE27 S SANPETE

$0 $300,000 $600,000 $900,000 $1,200,000 $1,500,000 $1,800,000 $2,100,000 $2,400,000 $2,700,000 $3,000,000

$2,706,174 $1,806,821

$1,767,516 $1,377,576

$1,253,112 $1,244,462

$928,359 $809,615

$789,258 $746,635 $742,498

$698,140 $664,024

$641,871 $499,980 $498,910 $491,805

$482,148 $480,070

$468,373 $412,768 $407,949

$383,000 $377,902

$347,995 $333,244 $331,210

$297,196 $291,800 $288,811 $286,469 $279,522 $277,993 $275,464 $270,865 $263,832 $258,431

$243,670 $242,271

$220,773 $194,754

$143,410

Assessed Valuation per Student*FY 2009-10

47%

4%26%

23%

FY10 TAX RATES BY FUND

GENERALRECREATIONDEBT SERVICECAPITAL OUTLAY

TAX RATES

TAX RATES BY FUND –FY12FUND (BUCKET) LEVY

DESCRIPTIONSTATUTORY LIMIT

GENERAL STATE BASIC RATE .001591GENERAL VOTED LEEWAY .001600GENERAL BOARD LEEWAY .000400GENERAL READING LEEWAY .000121GENERAL TRANSPORTATION .000300GENERAL TORT LIABILITY .000100GENERAL 10 % OF BASIC FORMULACAPITAL OUTLAY 10 % OF BASIC FORMULANON-K12 RECREATION NO LIMITCAPITAL OUTLAY CAPITAL OUTLAY .002400DEBT SERVICE DEBT SERVICE AS REQUIRED

H.B. 301 AFFECT FY13FUND (BUCKET) LEVY

DESCRIPTIONSTATUTORY LIMIT

GENERAL STATE BASIC RATE .001591GENERAL VOTED LEEWAY .001600GENERAL BOARD LEEWAY .000400GENERAL READING LEEWAY .000121GENERAL TRANSPORTATION .000300GENERAL TORT LIABILITY .000100GENERAL 10 % OF BASIC FORMULACAPITAL OUTLAY 10 % OF BASIC FORMULANON-K12 RECREATION NO LIMITCAPITAL OUTLAY CAPITAL OUTLAY .002400DEBT SERVICE DEBT SERVICE AS REQUIRED

H.B. 301 AFFECT FY13FUND (BUCKET) LEVY

DESCRIPTIONSTATUTORY LIMIT

GENERAL STATE BASIC RATE .001591

GENERAL VOTED LEEWAY .001600

BOARD LEEWAY BOARD LEEWAY .001800 OR .002500

CAPITAL OUTLAY CAPITAL OUTLAY .003000

DEBT SERVICE DEBT SERVICE AS REQUIRED

“Never blame a legislative body for not doing something. When they do nothing, that don't hurt anybody. When they do something is when they become dangerous.” Will Rogers

Beware of the Wolves

THAT RATE WHICH GENERATES THE SAME TAX REVENUE AS THE PRIOR YEAR (Net of “NEW GROWTH” – New properties on tax rolls)

DOES NOT INCLUDE STATE BASIC RATE APPLIES TO OVERALL DISTRICT ASSESSED TAX

RATE NOT SPECIFIC LEVIES CALCULATED BY THE COUNTY TRUTH IN TAXATION HEARING REQUIRED IF

ADOPTED RATE EXCEEDS CERTIFIED TAX RATE

CERTIFIED TAX RATE

DISTRICT TAX RATE TAX EFFORT

AV Per Student

TINTIC .009132 1 41NEBO .008701 2 39

TOOELE .008645 3 38SO.

SANPETE.008304 4 40

BOX ELDER .008201 5 33SAN JUAN .008201 6 34OGDEN .008091 7 32

JUAB .007782 8 15ALPINE .007728 9 36JORDAN .007541 10 31

TAX EFFORT RANKINGS FY10

DISTRICT TAX RATE TAX EFFORT

AV Per Student

WAYNE .003656 41 16PIUTE .003685 40 27RICH .003834 39 3KANE .003949 38 4

PARK CITY .004023 37 1DAGGETT .004302 36 2

NO.SUMMIT .005258 35 5EMERY .005519 34 9

MURRAY .005525 33 20MILLARD .005649 32 12

TAX EFFORT RANKINGS FY10

Couple Questions:Is the answer to our “Financial Woes” more State Funding?

Who holds the reins to your School District’s Financial Future?

It All Depends

H.B. 301 AFFECT FY13FUND (BUCKET) LEVY

DESCRIPTIONSTATUTORY LIMIT

GENERAL STATE BASIC RATE .001591

GENERAL VOTED LEEWAY .001600

BOARD LEEWAY BOARD LEEWAY .001800 OR .002500

CAPITAL OUTLAY CAPITAL OUTLAY .003000

DEBT SERVICE DEBT SERVICE AS REQUIRED

DISTRICT TAX RATE TAX EFFORT

AV Per Student

WAYNE .003656 41 16PIUTE .003685 40 27RICH .003834 39 3KANE .003949 38 4

PARK CITY .004023 37 1DAGGETT .004302 36 2

NO.SUMMIT .005258 35 5EMERY .005519 34 9

MURRAY .005525 33 20MILLARD .005649 32 12

TAX EFFORT RANKINGS FY10

LOCAL CONTROL --- “OR NOT”

Questions

"This country has come to feel the same when Congress (The State Legislature) is in session as when a baby gets hold of a hammer."Will Rogers

“The short memories of American voters is what keeps our politicians in office."

Will Rogers

"If we got one-tenth of what was promised to us in these acceptance speeches there wouldn't be any inducement to go to heaven."

Will Rogers

Working Together We Will Get Through This !!!