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

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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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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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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

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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

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–  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

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–  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)

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–  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.


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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


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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


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Long-Term Facilities Maintenance 10 Year Plan See Separate Handout

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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)

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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

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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)

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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

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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

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•  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

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6/30/15

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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

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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)

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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

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6/30/15

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

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

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