EDUCATION FINANCE UPDATE MASBO 06 18 2015.pptx (Read … · June 25, 2015 Tom Melcher, School...

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6/30/15 1 MASBO Legislative Conference June 25, 2015 Tom Melcher, School Finance Director 2015 E-12 EDUCATION LEGISLATION Laws 2015, First Special Session, Chapter 3 Omnibus E -12 Education Bill E-12 Education Bills STATE GENERAL FUND SPENDING TARGETS (State Aid Appropriations - $ Millions) Gov Hse Sen Conf SS FY 2016-17 Biennium: Increase over Base $695 $157 $365 $400 $525 Percent Increase 4.2% 0.9% 2.2% 2.4% 3.1% FY 2018-19 Biennium: Increase over Base $1,429 $235 $708 $733 $881 Percent Increase 8.3% 1.4% 4.1% 4.3% 5.1% 2 3 Gov Hse Sen Conf SS Basic Formula 171,646 98,374 170,523 283,250 346,312 Compensatory Pilots 10,000 10,000 10,000 Levy Decreases (Not New Revenue) 18,666 9,259 1,309 1,309 Other General Education 7,211 9,392 3,381 5,733 9,256 Statewide Pre K 343,292 School Readiness 9,500 65,000 30,750 30,750 Head Start 19,442 4,000 10,000 Scholarships 30,000 5,000 30,750 48,250 Parent Aware ** 3,500 3,500 3,500 39,466 (343) 421 421 19,217 9,500 9,500 31,961 31,961 31,961 General Education: Special Education Formula Facilities Deferred Maintenance ** $3.5 million included in Governor's HHS budget Q Comp Early Education: E - 12 SPENDING BY PROGRAM, FY 2016-17 (E-12 Education Bills - $ in Thousands)

Transcript of EDUCATION FINANCE UPDATE MASBO 06 18 2015.pptx (Read … · June 25, 2015 Tom Melcher, School...

Page 1: EDUCATION FINANCE UPDATE MASBO 06 18 2015.pptx (Read … · June 25, 2015 Tom Melcher, School Finance Director 2015 E-12 EDUCATION LEGISLATION Laws 2015, First Special Session, Chapter

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MASBO Legislative Conference June 25, 2015

Tom Melcher, School Finance Director

2015 E-12 EDUCATION LEGISLATION Laws 2015, First Special Session, Chapter 3

Omnibus E -12 Education Bill

E-12 Education Bills STATE GENERAL FUND SPENDING TARGETS

(State Aid Appropriations - $ Millions)

Gov Hse Sen Conf SS FY 2016-17 Biennium: Increase over Base $695 $157 $365 $400 $525 Percent Increase 4.2% 0.9% 2.2% 2.4% 3.1% FY 2018-19 Biennium: Increase over Base $1,429 $235 $708 $733 $881 Percent Increase 8.3% 1.4% 4.1% 4.3% 5.1%

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  Gov Hse Sen Conf SS

 Basic    Formula     171,646           98,374         170,523   283,250     346,312          Compensatory  Pilots   -­‐                             10,000         10,000         -­‐                         10,000              Levy  Decreases  (Not  New  Revenue)   18,666         9,259             1,309               1,309                  Other  General  Education   7,211                   9,392             3,381             5,733               9,256                

 Statewide  Pre  K     343,292           -­‐                       -­‐                       -­‐                         -­‐                            School  Readiness   -­‐                             9,500             65,000         30,750           30,750                Head  Start     19,442               -­‐                       4,000             -­‐                         10,000              Scholarships     -­‐                             30,000         5,000             30,750           48,250              Parent  Aware   ** 3,500             -­‐                       3,500               3,500                

39,466               -­‐                       (343)                 421                       421                        -­‐                             -­‐                       19,217         9,500               9,500                -­‐                             -­‐                       31,961         31,961           31,961            

 General  Education:  

 Special  Education  Formula    

 Facilities  -­‐  Deferred  Maintenance    **  $3.5  million  included  in  Governor's  HHS  budget  

 Q  Comp  

 Early  Education:  

E - 12 SPENDING BY PROGRAM, FY 2016-17 (E-12 Education Bills - $ in Thousands)

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Gov Hse Sen Conf SSAmerican  Indian  Education 20,113               1,425             5,329             3,178               17,682            School  Breakfast 28,894               -­‐                       4,191             -­‐                         -­‐                          

-­‐                             9,000             4,000             4,000               4,000                -­‐                             (3,398)           -­‐                       -­‐                         -­‐                          

24,180               -­‐                       352                     -­‐                         -­‐                          10,000               6,000             4,600             3,500               3,500                

Statewide  Testing -­‐                             (16,462)       (4,579)           (13,884)       (13,884)          12,000               (2,000)           -­‐                       -­‐                         -­‐                          

818                           (3,664)           818                     818                       818                        Other  Miscellaneous 17,548               (13,566)       32,053         5,214               11,625            TOTALS 694,610           156,767     364,762   400,000     525,000        

Minnesota  Reading  Corps  Teaching  Workforce  Support  

MDE  Agency  Operations

 Concurrent  Enrollment  

 Regional  Centers  of  Excellence  

Adult  Basic  Education  

E - 12 SPENDING BY PROGRAM, FY 2016-17 (E-12 Education Bills - $ in Thousands)

Continued

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  Gov Hse Sen Conf SS

 Basic    Formula     248,790           153,890     247,039   428,226     501,703          Compensatory  Pilots   -­‐                             10,000         -­‐                       -­‐                         -­‐                          

 Levy  Decreases  (Not  New  Revenue)   40,631         98,764         51,828           70,557              Other  General  Education   7,177                   15,082         3,694             5,330               13,398            

 Statewide  Pre  K     917,530           -­‐                       -­‐                       -­‐                         -­‐                            School  Readiness   -­‐                             10,000         124,000   43,026           43,026                Head  Start     38,884               -­‐                       4,000             -­‐                         -­‐                            Scholarships     40,000         5,000             41,000           64,000              Parent  Aware   ** 3,500             -­‐                       3,500               3,500                

97,435               -­‐                       (5,999)           -­‐                         -­‐                          -­‐                             -­‐                       61,582         19,106           19,106            -­‐                             -­‐                       135,894   135,894     135,894        

 General  Education:  

 Early  Education:  

 Special  Education  Formula      Q  Comp    Facilities  -­‐  Deferred  Maintenance    **  $3.5  million  included  in  Governor's  HHS  budget  

E - 12 TAILS BY PROGRAM, FY 2018-19 (E-12 Education Bills - $ in Thousands)

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Gov Hse Sen Conf SSAmerican  Indian  Education 22,691               1,500             5,667             3,178               14,258            School  Breakfast 32,174               -­‐                       8,047             -­‐                         -­‐                          

-­‐                             12,000         4,000             4,000               4,000                -­‐                             (8,506)           -­‐                       -­‐                         -­‐                          

24,180               -­‐                       100                     -­‐                         -­‐                          10,000               6,000             4,000             2,500               2,500                

Statewide  Testing -­‐                             (16,150)       (4,896)           (14,196)       (14,196)          12,000               (2,000)           -­‐                       -­‐                         -­‐                          1,094                   (3,664)           1,094             1,094               1,094                

Other  Miscellaneous 16,995               (26,940)       15,947         8,333               22,299            TOTALS 1,428,950   235,343     707,933   732,819     881,139        

Adult  Basic  Education    Teaching  Workforce  Support  Minnesota  Reading  Corps

 Regional  Centers  of  Excellence  MDE  Agency  Operations

 Concurrent  Enrollment  

E - 12 TAILS BY PROGRAM, FY 2018-19 (E-12 Education Bills - $ in Thousands)

Continued

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Pay 2016 Levy Changes (E-12 Education Bills)

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Gov Hse Sen Conf SSBasic  General  Education (20,280)   -­‐                    Gen  Ed  Levies  -­‐  PreK  &  Formula  Chg 16,227           783                         -­‐                    Oper  Capital  -­‐  Improved  Equaliz. (24,632)       (10,287)           (1,454)           (1,454)        Equity  -­‐  Nonmetro 6,074           -­‐                    Local  Optional  -­‐  Cabin  Property (460)               -­‐                    Q  Comp 8,471                   4,235               4,235            Achievement  &  Integration 405                       -­‐                     -­‐                    Career  &  Technical 1,420                   -­‐                    Safe  Schools 555                       1,364                   1,364               1,364            School  Building  Lease 7,200               -­‐                    Facilities  Maintenance 245                       9,000           (3,016)               (4,145)           (4,145)        Community  Education 1,153                   -­‐                       -­‐                    Owatonna  Referendum 783                  Hendricks  Reciprocity 109                         -­‐                       -­‐                    TOTAL -­‐                         (5,666)         (3)                                 -­‐                       783                  

Pay 2017 Levy Changes (E-12 Education Bills)

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Gov Hse Sen Conf SSBasic  General  Education (19,779)   (9,779)           (9,779)        Gen  Ed  Levies  -­‐  PreK  &  Formula  Chg 16,643           819                         -­‐                    Oper  Capital  -­‐  Improved  Equaliz. (25,742)       (39,016)           (16,239)       (16,239)    Equity  -­‐  Nonmetro 6,100           -­‐                    Local  Optional  -­‐  Cabin  Property (460)               -­‐                    Q  Comp 11,858             4,235               4,235            Achievement  &  Integration 502                       4,600           -­‐                    Career  &  Technical 1,550                   -­‐                    Safe  Schools 670                       694                         694                     694                  School  Building  Lease 7,600               -­‐                    Facilities  Maintenance 327                       9,000           22,832             20,377         20,377      Community  Education 1,164                   -­‐                    Owatonna  Referendum 819                  Hendricks  Reciprocity 109                         -­‐                    TOTAL -­‐                         (539)               10                               (712)                   107                  

GENERAL EDUCATION REVENUE Formula Allowance

Enacted in Law, First Special Session: •  2016 $5,948 ( 2% increase -- $117) •  2017 $6,067 ( 2% increase – additional $119, for a total of $236 over base) Exceeds: •  Governor and Senate bills (1% and 1%) •  House bill (0.6% and 0.6%) •  Vetoed Conference Report (1.5% and 2%)

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GENERAL EDUCATION REVENUE Extended Time Revenue

Enacted in Law, First Special Session: •  $100 increase in allowance beginning in FY 2016, from $5,017

to $5,117 ($2.5 M for biennium) (House)

•  Charter schools with extended time program receive 25% of state average per adjusted pupil unit, beginning FY 2016.

§  about $19/APU -- $2.0 M for biennium (House)

Not included: •  Renaming program to “Extended Support Revenue”; districts

allowed to use part of revenue for academic programs for at risk learners during the regular school day)

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GENERAL EDUCATION REVENUE Other General Education Revenue

Enacted in Law, First Special Session: •  English Learner Revenue ( Governor)

–  Funding eligibility extended from 6 to 7 years (Begins FY 17)

•  Compensatory Pilot Grants (House and Senate): –  Would have extended compensatory pilot grants for FY 2016 and

later at FY 2015 level of funding ($7.3425 M / year) –  Instead it will return to base level of $2.325 M / year

•  Uses of Compensatory Revenue (Senate) –  Allows school board of district not in compensatory pilot project to

reallocate up to 50% of compensatory revenue among buildings based on a local plan (Begins FY 16)

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GENERAL EDUCATION REVENUE General Education Levies

Included in Final Bill:

•  Student Achievement Levy Phase Out (House) –  No change Fy 17 (Pay 2016 taxes) –  Reduced from $20 M to $10 M for FY 18 ( pay 2017 taxes) –  Eliminated beginning FY 2019 –  (House bill would have eliminated it for FY 2017).

•  Operating capital levy equalizing factor increases §  from $14,600 for FY 16 to:

–  $14,740 for FY 17, –  $17,473 for FY 18, and –  $20,510 for FY 19 and later

–  Offsets other levy changes to hit statewide zero levy target.

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GENERAL EDUCATION REVENUE Other General Education Revenue

Not included: •  Increased transportation sparsity revenue (House and Senate)

–  for St Louis County district and districts with >525 square miles that do not receive sparsity revenue.

•  Equity Revenue (House): –  Extend the 25% increase in equity revenue (excluding the flat

$50 /PU portion) that has applied only to metro districts to all districts.

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GENERAL EDUCATION REVENUE Other General Education Revenue

Not included: •  Compensatory Revenue Formula (House):

–  Beginning in FY 2016, would have allocated the additional revenue generated by increases in the formula allowance over the FY 2015 level based on a flat rate per free plus ½ of reduced price lunch count from prior year, instead of concentration formula

•  Local Optional Levy Equalization (House) –  For districts where seasonal recreational cabin property is

>30% of market value, equalizing factor for local optional revenue is set at $510,000 x (district seasonal rec percent / 30%).

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GENERAL EDUCATION REVENUE Other Changes in Article 1

Enacted in Law, First Special Session: •  Eliminates annual report on uses of Learning & Development

(class size reduction) revenue.

•  Repeals obsolete health insurance levy statute.

•  Allows certain districts in Carver, Scott and Le Sueur counties to form a new intermediate school district

•  Operating referendum allowance correction for Owatonna, over-riding a glitch in ballot language (Senate)

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GENERAL EDUCATION REVENUE Other Changes in Article 1

Not included: •  Increase in Career Technical Revenue from 35% to 37.5% of CTE

expenditures, beginning in FY 17. (Senate)

•  Hendricks exemption from tuition reciprocity agreement with South Dakota (Senate)

•  Provisions authorizing local school board, rather than Commissioner, to approve a 4 day week school calendar and eliminating requirement for Commissioner approval for flexible learning year programs.

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EARLY LEARNING

Enacted in Law, First Special Session: •  Additional funding for existing programs:

–  Early learning scholarships -- $48.25 million for biennium –  School readiness -- $30.75 million for biennium –  Early Childhood rating system -- $3.5 million for biennium –  Parent-child home program $200,000 for biennium

•  ECFE funding Increase (linked to general ed formula)

Not Included: •  Governor’s Pre-K program •  Language changes in early learning scholarships and school

readiness •  Early learning program coordination language (House)

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Enacted in Law, First Special Session: •  Increase in cap on basic Q Comp aid from $75,636,000 to

$88,118,000 beginning FY 2017 •  Eligibility expanded to include cooperative units other than

intermediate districts beginning in FY 2017 •  New formula for intermediates and other cooperatives: Aid= $3,000

per licensed teacher employed on October 1 of previous school year. •  Language allowing the alternative teacher pay system to include:

–  a hiring bonus or other added compensation for teachers identified as effective or highly effective who work in a hard to fill position or hard to staff school

–  incentives for teachers to earn a Master’s degree or other advanced certification in their content field of licensure, pursue training /education in shortage areas identified by their district or charter school, or help fund a “grow your own” new teacher initiative

EDUCATION EXCELLENCE Q Comp

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Enacted in Law, First Special Session: •  House language requiring a district to use its 2% staff development

set-aside for: –  Teacher development and evaluation; –  Principal development and evaluation; –  Professional development; –  In-service education: and, –  To the extent funds remain, for staff development plans.

EDUCATION EXCELLENCE Staff Development

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Enacted in Law, First Special Session: •  Replaces Success for the Future grants with a new American

Indian Education aid formula, effective FY 2016: –  Districts, charters and BIE schools with at least 20 AI

students are eligible for aid –  Aid = lesser of approved cost or $20,000 plus $358 times AI

enrollment on Oct 1 of prior school year exceeding 20 –  Hold harmless for districts currently receiving Success for

the Future grants

•  Increases the per student cap on tribal contract aid for BIE schools, for FY 16 and FY 17 only, from $1,500 to $3,230

EDUCATION EXCELLENCE American Indian Education

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Enacted in Law, First Special Session: •  Literacy Incentive Aid (Senate)

–  District must submit literacy plan to MDE to qualify for aid

•  Teacher Development and Evaluation Revenue (Senate) –  Cooperatives made eligible for FY 2015 revenue –  Clarification that sites not in Q Comp qualify if a district or

charter is partly in Q Comp

EDUCATION EXCELLENCE Other

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Not Included: •  Achievement and Integration Revenue/ Program Changes

(House)

•  Unrequested Leave of Absence Changes (House)

•  Support Services Personnel Grants (Senate)

EDUCATION EXCELLENCE Other

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Enacted in Law, First Special Session: •  Pre-Kindergarten (House and Senate)

–  Allows a charter school to provide a fee based pre-K program

–  Allows a charter school that provides a free pre-K program to give enrollment preference to students in its free its pre-K program for enrollment in K the following year.

–  Allows a charter school with at least 90% deaf and hard of hearing students to enroll pre-K students with a disability, if there is no cost impact of doing so.

CHARTER SCHOOLS

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Enacted in Law, First Special Session:

•  Mergers (House and Senate)

–  Provides a process for charter school mergers.

–  Fund balances and debts of the schools involved in the merger are transferred to the new combined school at the beginning of the first fiscal year the merger takes effect.

–  For the first year of operation, aid for programs requiring applications equals the sum of the aid of the merging schools. For aids based on prior year data, combined prior year data of the merged schools is used to calculate aid.

CHARTER SCHOOLS

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Not Included: •  Nonresident charter school pupil transportation (House)

–  School districts providing transportation on behalf of a charter school must allow nonresident students attending the school to ride the bus from any scheduled stop to any other scheduled stop. The district may charge a fee not to exceed the lesser of 15 cents per mile or the actual cost of the transportation.

•  Enrollment preference (Senate)

–  Allows a charter school to provide enrollment preference to students eligible for free or reduced price lunch if the school has a lower percent of these students than the state or district average.

CHARTER SCHOOLS

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Enacted in Law, First Special Session: •  Special Education Charter Schools (Senate)

–  Speeds up cash flow for charter schools with at least 90% of students receiving special education by: §  Increasing general education aid to cover the unreimbursed

costs of serving students without disabilities, §  Increasing special education aid to cover the unreimbursed

costs of serving students with disabilities, §  Paying the full 90% of estimated special education aid in the

current year (rather than 90% of 97.4% of the estimated aid entitlement).

§  Aid reduction to the resident district for special education tuition is calculated as if the school did not receive the added general and special education aid, and is retained by the state, since the school has its full cost covered by direct aid.

SPECIAL EDUCATION

26

Enacted in Law, First Special Session: •  New Special Education Funding Formula

Clarifications – FY 2016 and later –  Clarifies that cooperatives and intermediate school districts will

receive direct payment of state special education aid beginning in FY 2016.

–  Clarifies that special education aid for a first year charter school is calculated using current year data

–  Allows a newly formed cooperative to apply to the commissioner for payment of aid based on current year data for its first year of operation, with an offsetting reduction in the aid paid to participating school districts.

SPECIAL EDUCATION

27

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Enacted in Law, First Special Session:

–  Adopts modified version of School Facilities Funding Working Group Recommendation, beginning in FY 2017: §  Rolls current deferred maintenance, health and safety and

alternative facilities revenues into new long-term facilities maintenance revenue program.

§  New long-term facilities revenue equals the sum of the product of: 1.  $193 / APU for FY 17, $292 for FY 18 , and $380 for FY

19 and later, and 2.  the lesser of 1 or the ratio of the district’s average building

age to 35 years, §  Plus the approved cost / debt service for indoor air quality, fire

alarm and suppression, and asbestos abatement projects with a cost per site of $100,000 or more (includes existing debt service for large health and safety projects issued under old law) .

Long-Term Facilities Maintenance

28

–  The 25 large districts currently eligible for alternative facilities revenue continue to be eligible for revenue based on approved project costs, without a state-imposed per pupil limit.

–  Members of intermediate districts and cooperatives may levy for proportionate share of intermediate / coop costs in addition to the regular allowance, with approval by school boards of all member districts.

–  Equalized revenue is limited to $193 / APU for FY 17, $292 for FY 18 , and $380 for FY 19 and later.

–  Districts may choose to issue bonds for the program, levy on a pay as you go basis, or a combination of the two.

Long-Term Facilities Maintenance (Continued)

29

–  For purposes of calculating equalization aid, the ANTC is reduced by 50% of the value of Class 2a Agricultural land.

–  The aid / levy mix for the equalized portion of the revenue is calculated using an equalizing factor of 123% of the state average ANTC / PU, calculated using the 50% exclusion for ag land.

–  Levy equalization for the program is the same regardless of whether the district chooses to issue bonds or make an annual pay-as-you-go levy. Debt service levies under the program are excluded from regular debt service equalization.

–  All districts are guaranteed to receive at least as much revenue and at least as much state aid as they would have received under existing law.

Long-Term Facilities Maintenance (Continued)

30

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Allowed Uses of Revenue: 1.  Deferred capital expenditures and maintenance projects necessary to

prevent further erosion of facilities;

2.  Increasing accessibility of school facilities;

3.  health and safety capital projects; and

4.  health, safety, and environmental management costs associated with implementing the district's health and safety program.

•  In other words, long-term facilities maintenance revenue may be used for exactly the same purposes as the old revenue categories it replaces: health & safety; deferred maintenance, and alternative facilities

Long-Term Facilities Maintenance (Continued)

31

Long-Term Facilities Maintenance Revenue may NOT be used for the following: 1.  For construction of new facilities, remodeling of existing facilities, or

the purchase of portable classrooms;

2.  To finance a lease purchase agreement, installment purchase agreement, or other deferred payments agreement;

3.  For energy-efficiency projects under section 123B.65, for a building or property or part of a building or property used for postsecondary instruction or administration or for a purpose unrelated to elementary and secondary education; or

4.  For violence prevention and facility security, ergonomics, or emergency communication devices.  

•  These uses were also prohibited under old law

Long-Term Facilities Maintenance (Continued)

32

Long-Term Facilities Maintenance 10 Year Plan See Separate Handout

33

District  Ten  Year  Plan    -­‐-­‐  ROUGH  DRAFT                                                                                                                                    Fiscal  Year,  Ending  June  30th  -­‐-­‐> 2017 2018 2019 2020 2021 ………… 2026

EXPENDITURES:Health  and  Safety,  Excluding  Projects  Costing  >  $100,000  per  Site  

Finance Category347 Physical  Hazards $10,000 $10,000 $10,000 $10,000 $10,000 ………………. $10,000349 Other  Hazardous  Materials $10,000 $10,000 $10,000 $10,000 $10,000 ………………. $10,000352 Environmental  Health  &  Safety  Management $10,000 $10,000 $10,000 $10,000 $10,000 ………………. $10,000358 Asbestos  Removal  and  Encapsulation $10,000 $10,000 $10,000 $10,000 $10,000 ………………. $10,000363 Fire  Safety $10,000 $10,000 $10,000 $10,000 $10,000 ………………. $10,000366 Indoor  Air  Quality $10,000 $10,000 $10,000 $10,000 $10,000 ………………. $10,000

Total  Health  and  Safety  Capital  Projects $60,000 $60,000 $60,000 $60,000 $60,000 ………………. $60,000……………….

Health  and  Safety,    Projects  Costing  >  $100,000  per  Site   ……………….358 Asbestos  Removal  and  Encapsulation $146,300 ……………….363 Fire  Safety ……………….366 Indoor  Air  Quality $2,985,361 ……………….

Total  Health  and  Safety  Capital  Projects  $100,000  or  More $0 $146,300 $0 $0 $2,985,361 ………………. $0……………….

Accessibility ……………….Finance Category ……………….367 Accessibility $0 $10,000 $10,000 $10,000 $10,000 ………………. $10,000

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Long-Term Facilities Maintenance 10 Year Plan See Separate Handout (CONTINUED)

34

District  Ten  Year  Plan    -­‐-­‐  ROUGH  DRAFT                                                                                                                                    Fiscal  Year,  Ending  June  30th  -­‐-­‐> 2017 2018 2019 2020 2021 ………… 2026

……………….Deferred  Capital  Expense  and  Maintenance ……………….

Finance Category ……………….368 Building  Envelope $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000369 Building  Hardware  and  Equipment $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000370 Electrical $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000379 Interior  Surfaces $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000380 Mechanical  Systems $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000381 Plumbing $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000382 Professional  Services  and  Salary $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000383 Roof  Systems $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000384 Site  Surfaces $4,000 $6,000 $10,000 $10,000 $10,000 ………………. $10,000

Total  Deferred  Capital  Expense  and  Maintenance $36,000 $54,000 $90,000 $90,000 $90,000 ………………. $90,000……………….

Total  Annual  10  Year  Plan  Expenditures $96,000 $270,300 $160,000 $160,000 $3,145,361 ………………. $160,000……………….

REVENUES: ……………….Revenue  Needed  to  Finance  Planned  Expenditures: ……………….

General  Fund  "Pay  As  You  Go"  Revenue  (Aid  +  Levy) $50,000 $50,000 $50,000 $50,000 $50,000 ………………. $50,000Debt  Service  Schedule  Amount $40,000 $80,000 $120,000 $120,000 $120,000 ………………. $120,000Total  Annual  Revenue  Needed $90,000 $130,000 $170,000 $170,000 $170,000 ………………. $170,000

District  Long  Term  Facilities  Maintenance  Revenue  Estimate $90,000 $130,000 $170,000 $170,000 $170,000 $170,000

Long-Term Facilities Maintenance Sample Calculations See Separate Handout

35

District  #1 District  #2 District  #3 District  #4 District  #51 Eligible  for  Alt  Facilties  Revenue  (1A  -­‐  Big  District)? No No No No Yes2 Existing  Alt  Facilities  debt  for  H  &  S  (1B  -­‐  Smaller  districts  )? No Yes No   No No3 New  H&S  Projects  >  $100,000  /  Site? No No Yes No No3a Qualifies  for  Hold  Harmless  on  Total  Revenue? No No No Yes Yes

4 Initial  Formula  Revenue5 FY  17  APU 1,000.00                             1,000.00                     1,000.00                     1,000.00                     20,000.00                    6 Avg  building  age  (uncapped) 30 30 30 30 307 formula  allowance 193.00$                                 193.00$                         193.00$                       193.00$                       193.00$                            8 building  age  factor  =  (Lesser  of  (6)/  35  or  1) 0.85714                                 0.85714                         0.85714                       0.85714                       0.85714                            9 initial  revenue  =  (5)  *  (7)  *  (8) 165,428.57$               165,428.57$       165,428.57$       165,428.57$       3,308,571.43$    

10 Added  revenue  for  Eligible  H&S  Projects  >  $100,000  /  site11 Debt  service  for  existing  Alt  facilities  H&S  bonds  (1B) -­‐                                                   100,000.00             -­‐                                         -­‐                                         -­‐                                              

12Debt  service  for  LTFM  bonds  for  eligible  H&S  projects  >  $100,000  /  site   -­‐                                                   -­‐                                           100,000.00           -­‐                                         -­‐                                              

13Pay  as  you  go  revenue  for    eligible  H&S  projects  >  $100,000  /  site -­‐                                                   -­‐                                           -­‐                                         -­‐                                         -­‐                                              

14Total  FY  17  revenue  for  eligible  H&S  projects  >$100,000  /  site    (11)  +  (12)  +  (13) -­‐                                                   100,000.00             100,000.00           -­‐                                         -­‐                                              

15 Old  Formula  revenue,  FY  201716 Old  formula  H&S  revenue 50,000.00$                     50,000.00$             50,000.00$           150,000.00$       1,000,000.00$    17 Old  formula  alt  facilities  debt  revenue  (1A) -­‐$                                             -­‐$                                     -­‐$                                     -­‐$                                     4,000,000.00$    18 Old  formula  alt  facilities  debt  revenue  (1B)  =  (11) -­‐$                                             100,000.00$       -­‐$                                     -­‐$                                     -­‐$                                        19 Old  formula  alt  facilities  pay  as  you  go  revenue  (1A) -­‐$                                             -­‐$                                     -­‐$                                     -­‐$                                     500,000.00$          20 Old  formula  alt  facilities  pay  as  you  go  revenue  (1B) -­‐$                                             -­‐$                                     -­‐$                                     -­‐$                                     -­‐$                                        

21Old  formula  deferred  maintenance  revenue  (if  (17  +  (19)  =  0,  (9)  *  ($64  /  $193) 54,857.14$                     54,857.14$             54,857.14$           54,857.14$           -­‐$                                        

22 Total  old  formula  revenue  =  (16)+(17)+(18)+(19)+(20+(21) 104,857.14                     204,857.14             104,857.14           204,857.14           5,500,000.00        

23 Total  LTFM  Revenue  (Greater  of  (9)+  (14)  or  (22) 165,428.57                     265,428.57             265,428.57           204,857.14           5,500,000.00        

Long-Term Facilities Maintenance Sample Calculations See Separate Handout (Continued)

36

District  #1 District  #2 District  #3 District  #4 District  #51 Eligible  for  Alt  Facilties  Revenue  (1A  -­‐  Big  District)? No No No No Yes2 Existing  Alt  Facilities  debt  for  H  &  S  (1B  -­‐  Smaller  districts  )? No Yes No   No No3 New  H&S  Projects  >  $100,000  /  Site? No No Yes No No3a Qualifies  for  Hold  Harmless  on  Total  Revenue? No No No Yes Yes

24 Aid  and  Levy  Shares  of  Total  Revenue25 2014  ANTC  excluding  50%  of  class  2a  ag  value 7,000,000                         7,000,000                 7,000,000               7,000,000               140,000,000          26 2014  Adjusted  PU  (New  Weights) 1,000                                         1,000                                 1,000                                 1,000                                 20,000                                27 ANTC  /  APU  (25)  /  (26) 7,000                                         7,000                                 7,000                                 7,000                                 7,000                                    28 State  average  ANTC  /  APU  with  ag  value  adjustment 7,258                                         7,258                                 7,258                                 7,258                                 7,258                                    29 Equalizing  Factor  =  123%    of  (28) 8,927                                         8,927                                 8,927                                 8,927                                 8,927                                    30 Local  share  of  Equalized  Revenue  (lesser  of  1  or  (28)  /  (29) 78.41% 78.41% 78.41% 78.41% 78.41%31 State  share  of  Equalized  Revenue  (1  -­‐  (30)) 21.59% 21.59% 21.59% 21.59% 21.59%32 Equalized  Revenue    (lesser  of  (23)  or  (7)  *  (5) 165,429                                 193,000                         193,000                       193,000                       3,860,000                    33 Initial    LTFM  State  aid  (31)  *  (32) 35,714.68                         41,667.13                 41,667.13               41,667.13               833,342.56                34 Old  formula  grandfathered  alt  facilities  aid -­‐                                                   -­‐                                           -­‐                                         -­‐                                         400,000.00                35 Total  LTFM  state  aid  (Greater  of  (33)  or  (34) 35,714.68                         41,667.13                 41,667.13               41,667.13               833,342.56                36 Total  LTFM  Levy    (23)  -­‐  (35) 129,713.89                     223,761.44             223,761.44           163,190.01           4,666,657.44        37 State  share  of  total  LTFM  revenue  (35)  /  (23) 21.5892% 15.6981% 15.6981% 20.3396% 15.1517%

38 Debt  Service  Portion  of  Revenue39 Total  Debt  Service  Revenue  =  (11)  +  (12)  +  (17)   -­‐                                                   100,000.00             100,000.00           -­‐                                         4,000,000.00        40 Debt  Service  Aid  =  (39)  *  (37),  but  not  >  (35) -­‐                                                   15,698.06                 15,698.06               -­‐                                         606,067.32                41 Debt  Service  Levy    =  (39)  -­‐  (40) -­‐                                                   84,301.94                 84,301.94               -­‐                                         3,393,932.68        

42 General  Fund  Portion  of  Revenue43 Total  General  Fund  Revenue  =(23)  -­‐  (39) 165,428.57                     165,428.57             165,428.57           204,857.14           1,500,000.00        44 Total  General  Fund  Aid  =  (35)  -­‐  (40) 35,714.68                         25,969.07                 25,969.07               41,667.13               227,275.24                45 Total  General  Fund  Levy  =  (43)  -­‐  (44) 129,713.89                     139,459.50             139,459.50           163,190.01           1,272,724.76        

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Enacted in Law, First Special Session: Technology Plan

–  Requirement for a district to have a current technology plan on file at MDE to qualify for telecommunications / internet access equity aid eliminated.

•  WMEP Transition (House and Senate) –  Provides for smooth transition of FAIR School Downtown to

Minneapolis school district and FAIR School Crystal to Robbinsdale district

–  Addresses student enrollment, calculation of aids based on prior year data and pupil transportation, similar to transition of Harambee from EMID to Roseville Schools

–  Contingent on the property being transferred in bonding bill.

FACILITIES AND TECHNOLOGY - Other

37

Not included: Alternative Facilities Aid/Levy (House) •  Beginning in FY 2017, alternative facilities aid reduced to 53.33% of FY

2016 aid. Endowment / Permanent School Fund (Senate) •  For FY 16 and later, the portion of annual endowment revenue

exceeding $31.62 / AADM (estimated FY 15 funding level) must be reserved for school technology and telecommunications infrastructure.

Telecommunications / Internet Access Equity Aid •  Senate increase state total aid by $1.5 million per year for FY 16 and

FY 17 only

FACILITIES AND TECHNOLOGY - Other

38

Enacted in Law, First Special Session:

•  Fund Transfers –  two-year extension through FY 2017 of authority for school districts to

transfer funds with commissioner approval if transfer does not result in additional aid or levy authority. Does not allow transfers from the community service fund, the food service fund, or from the reserved account for staff development.

•  Withdrawal from Cooperative – Dispute Resolution –  Requires any administrative law judge fees to be split equally between the

district and the cooperative.

•  Financial Reporting Dates –  Deadline for prior year data corrections for final payments moved from

December 30 to December 15.

NUTRITION AND ACCOUNTING

39

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Not Included: •  Financial Reporting Dates

–  Final UFARS data submission to MDE moved from Nov 30 to Nov 15 –  Audited financial statements due Dec 15 instead of Dec 31

•  Free Breakfast –  Governor expands free breakfast for all to grades 1 – 3 –  Senate expands free breakfast for all to grade 1

•  Barnum transfer between ECFE and school readiness for FY 15 –

18 (Senate). (Note: the general transfer authority extended through FY 17 includes the authority to transfer between these accounts).

NUTRITION AND ACCOUNTING

40

PREVENTION

Enacted in Law, First Special Session: •  Increases in Minneapolis North Side Achievement Zone and St Paul

Promise Neighborhood grants –  $1 million annual increase in each grant over $200,000 base

(Governor)

•  Education Partnership Pilot Grants (Senate) –  $501,000 per year

§  $167,000 each for Northfield, St Cloud, and Red Wing §  (Similar to Senate)

41

Not Included: •  Adult Basic Education (House)

–  Beginning in FY 2016: §  Reduces statewide growth factor from 3% to 0.5% per year. §  Establishes mechanisms to pay certain components of ABE

aid to approved community-based providers that have not qualified in the past

SELF SUFFICIENCY AND LIFELONG LEARNING

42

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FISCAL IMPACT BY DISTRICT TYPE: FY 2016 (Gen Ed, Sp Ed, Major State Categoricals - House Research Runs)

43

District  NameFY  16  Pupils  

aadmTotal  

/Pupil  BaseTotal  /Pupil  

Sp  SesTotal  /Pupl  

Chng%  

Change1 4

State  Total/Ave 842,197 11,027 11,204 176 1.6%

Metro  Districts 424,151 11,679 11,854 176 1.5%NonMetro  Districts 365,335 10,379 10,556 177 1.7%Charter  Schools 52,711 10,275 10,458 183 1.8%

Mpls/St.  Paul 73,176 13,901 14,106 205 1.5%Inner  Ring  Suburbs 87,923 11,782 11,956 173 1.5%Outer  Ring  Suburbs 265,053 10,925 11,092 167 1.5%

Greater  MN  >2,000 189,347 10,374 10,546 172 1.7%Greater  MN  <  2,000 175,988 10,385 10,566 181 1.7%Greater  MN  Charter 11,119 9,268 9,446 178 1.9%

FY  16  Total

FISCAL IMPACT BY DISTRICT TYPE: FY 2017 (Gen Ed, Sp Ed, Major State Categoricals - House Research Runs)

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District  NameFY  17  Pupils  

aadmTotal/Pupil  

-­‐  BaseTotal  /Pupil  

Sp  SesTotal  /Pupil  

Chng%  

Change1 4

State  Total/Ave 845,255 11,121 11,509 388 3.5%

Metro  Districts 424,130 11,791 12,170 380 3.2%NonMetro  Districts 363,990 10,486 10,883 396 3.8%Charter  Schools 57,135 10,213 10,605 392 3.8%

Mpls/St.  Paul 72,949 14,031 14,445 413 2.9%Inner  Ring  Suburbs 87,161 11,892 12,249 357 3.0%Outer  Ring  Suburbs 264,406 11,041 11,417 377 3.4%

Greater  MN  >2,000 189,371 10,485 10,871 386 3.7%Greater  MN  <  2,000 174,619 10,488 10,895 407 3.9%Greater  MN  Charter 14,402 9,132 9,501 369 4.0%

FY  17  Total

Questions?

Tom Melcher School Finance Director (651) 582-8828 or [email protected]

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