Erin Fath, Assistant Director, School Financial Services Team, DPI Bob Avery, Director of Business...

Understanding Revenue Limits

Erin Fath, Assistant Director, School Financial Services Team, DPI

Bob Avery, Director of Business Services, Beaver Dam Unified School District

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Welcome! Today’s Agenda

In this presentation we will: Start with review of basic concept of

Revenue Limit then delve deeper into the calculation

Talk about the impact of the Revenue Limit calculation on districts with growing, flat or declining enrollment

Answer your questions about Revenue Limits

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What are Revenue Limits?

The “Revenue Limit” is the limitation imposed by State Law on the revenues that public school districts in Wisconsin can raise from local Property Taxes* & State General Aid. Not all of a school district’s revenues are

limited by State Law The revenue limit is not a limitation on

school district total expenditures *The “Controlled Property Tax Levy” (excludes levy for referendum approved debt, the Community Service Fund and the chargeback levy)

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What are Revenue Limits?Total School District Revenues – Statewide (2011-12)

Local Property Taxes: 43%

State GENERAL AID: 39%

State Categori-cal Aid:

5%

FederalAid: 9%

Misc. Local Revenue: 4%

LIMITED REVENUES:

- State General Aid

- Property Taxes[82% of total Revenues]

NOT SUBJECT TO REVENUE LIMIT

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Importance of Revenue Limits

The mix of school district revenues from State Aid and Local Tax Levy varies across the state, HOWEVER …

A district’s Revenue Limit will determine approximately 85-95% of a school district’s General Fund

Revenue Budget.

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Property Tax Levy

State Aid

Revenue Limit

$1.5 M$3.5 M$5 M


By now, you should be familiar with this concept:

Another way to think of Revenue Limits– as a Pie

The Limit itself is the outer crust – defines the size of the pie.

There are two fillings State Aids Local Property Taxes

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Revenue Limit

State Aid Property Taxes

Another way to think of Revenue Limits– as a Pie

The Limit itself is the outer crust – defines the size of the pie.

There are two fillings State Aids Local Property Taxes

As one increases,the other decreases. 8


Revenue Limit


The proportion of controlled revenues from State Aid and Property Tax Levy will vary from

district to district. 9


Revenue Limit:Property-Rich District


Revenue Limit:Property-Poor District


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Why Revenue Limits?

Historical Context: Early 1990’s – concerns of growing

tax levies getting “out of control” Proposal for “Two-Thirds” funding for

public schools – to provide tax relief [no longer law]

State cannot afford to continually increase General Aid to districts with no limit, so …

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Why Revenue Limits?

Historical Context: Beginning in 1993-94, Revenue Limits

were imposed on all school districts Initially implemented for a 5-year period

(1993-94 through 1997-98) [1993 WI Act 16] Made permanent with legislation, 1995 WI Act

27 Basic computation has remained the

same, but a few changes along the way.

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Revenue Limit – miscellaneous

First Year – 1993-94: Districts were “locked-in” to relative level of

revenue authority (base revenue / base members): The per pupil adjustment is the same $ amount for

each district (exception: 2011-12 year, -5.5%) Generally, the variance among districts in per-

member revenue authority begins to decrease over time, however …

Utilization of referendum and other exemptions to exceed the revenue limit varies among district and affects the variance in per member revenue authority.

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Revenue Limit Calculation

Walk through the calculation1. Review the basic concept2. Examine factors (base revenue,

membership)3. Demonstrate how exemptions are

calculated and impact a district’s revenue limit

4. Questions …

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Revenue Limit – Basic Concept

Basic Computation

BASE REVENUE(PROPERTY TAX

+ GENERAL AID)

BASE MEMBERS(3-YEAR

AVEARAGE)

BASE REVENUE PER MEMBER

(STARTING POINT)

BASE REVENUE PER

MEMBER (STARTING

POINT)

PER PUPIL ADJUSTMENT

(INCREMENT)

NEW REVENUE PER MEMBER


CURRENT MEMBERS (3-

YEAR AVERAGE)

NEW REVENUE

LIMIT*

*Prior to any exemptions.

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Revenue Limit Calculation

Of course, it is more complex …1. Membership = 3 year rolling average2. Exemptions to the limit (including

referenda): Recurring (base-building) or non-recurring Some exemptions auto-calculate, most must

be “claimed” and follow specific process3. Districts choose to fully utilize maximum

revenue limit authority or to “under-levy” – impacts the following year’s calculation

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Base Revenue

Start with Prior Year Revenues from: State General (Equalization) Aid State High Poverty Aid (beginning in 2007-

08) State Computer Aid* Controlled Property Tax Levy:

Fund 10 (General Fund) Fund 38 (Debt w/in the Revenue Limit) Fund 41 (Capital Expansion Fund)

*Aid from the Dept. of Revenue – replaced property taxes forgone when computer equipment was exempted from tax rolls [1997 WI Act 237].

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Base Revenue

Then Reduce to Account for Prior Year*:1. Non-Recurring Exemptions (authority

was granted for one year)2. Revenue Limit “over-levy” (district levies

above the calculated limit)3. Energy Efficiency Exemption – unspent

amounts (district levied for, but did not fully expend levied funds on, the project)

*Would not have applied in the first year of Revenue Limits, as the 1993-94 calculation, as base revenues were from the 1992-93 school year, before limits were in place.

PRIOR YEARState Aid + Tax Levy = Starting

point for following year’s base:

It already includes the $ amount of all

exemptions for which the district actually

levied in theprior year:

Recurring Exempts

Non-RecurringExemptions

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Property Taxes (Levy) from Controlled Sources (Funds

10/38/41)

Prior Year

Oct 15th Certified Gen Aid + High Pov Aid +

Computer Aid

Current Year

Base (including levied

exemptions)*

Non-Recurring Exemptions, Penalties

REMOVED

Recurring Exemptions

Building the Base Revenue

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Base Membership

Revenue Limit Membership : Based on 3rd Friday in September Pupil

Count (as converted to FTE) + 40% of Summer School FTE *

Includes pupils who are RESIDENTS of the district:

INCLUDES resident pupils who are open-enrolled out

EXCLUDES resident pupils who are open-enrolled in

*The inclusion of summer school FTE for Revenue Limit purposes was phased in, beginning in 1998-99, until all years of the count included 40% of a district’s summer school FTE count.

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Base Membership

Revenue Limit Membership : Calculated on a three year average.

Used to minimize the financial impact of a sharp incline or decline in membership.

Thus … 2013-14 Revenue Limit Membership =

(Sept 2011 + Sept 2012 + Sept 2013) / 3

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2011-12 2012-13 2013-14

Membership Membership Membership

Sept 2009

Sept 2010 Sept 2010

Sept 2011 Sept 2011 Sept 2011

Sept 2012 Sept 2012

Sept 2013

Notice how an on-going membership change must be in place for 3 years before the full impact is realized in the revenue limit membership calculation.

Base Membership

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Notice how an on-going membership change must be in place for 3 years before the full impact is realized in the revenue limit membership calculation.

Base Membership

Sept FTE + 40% Summer School FTE2009 2010 2011 2012 2013 2014

Increasing 500 520 525 535 540 560

Steady 500 497 503 506 500 497

Declining 500 492 484 466 451 448

Membership = Three-Year Rolling Average2011 2012 2013 2014

Increasing 515 527 533 545

Steady 501 502 503 501

Declining 492 481 467 455

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Basic Computation


+ GENERAL AID)

BASE MEMBERS(3-YEAR

AVEARAGE)


(STARTING POINT)

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Per Pupil Adjustment

Per Pupil (Member) Adjustment: An amount added to the Base Revenue per

Member to determine the current year’s Revenue Limit In the past, increment was indexed to

inflation, but… Beginning in 2009-10, set amount prescribed

by law (per State Biennial Budget) Same dollar amount for every district

(exception in 2011-12)

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Per Pupil (Membership) Adjustment: The adjustment (increment) was a positive

value until 2011-12: Legislature approved a decrease of 5.5% on

every districts’ base revenue per member amount –not just the increment (year in which funding for General Aid was reduced by 8%)

Resulted in different per pupil adjustment dollar amount for each district (all negative)

Per Pupil Adjustment since 1993

Year$Adjustme

nt

% Change from Prior Year’s Adj.

1993-94* $190.001994-95* $194.37 2.3%1995-96 $200.00 2.9%1996-97 $206.00 3.0%1997-98 $206.00 0.0%1998-99 $208.88 1.4%1999-00 $212.43 1.7%2000-01 $220.29 3.7%2001-02 $226.68 2.9%2002-03 $230.08 1.5%2003-04 $236.98 3.0%

Year$

Adjustment % Change2004-05 $241.01 1.7%2005-06 $248.48 3.1%2006-07 $256.93 3.4%2007-08 $264.12 2.8%2008-09 $274.68 4.0%2009-10 $200.00 -27.2%2010-11 $200.00 0.0%

2011-12** -$562.002012-13 $50.002013-14 $75.00 50.0%2014-15 $75.00 0.0%

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*For 1993-94 and 1994-95, districts had the choice of increasing their revenues by either the rate of inflation (3.2% & 2.3%, respectively) or by the per pupil dollar adjustment shown in the table.

**For 2011-12, decrease of 5.5% to every districts’ total base revenue per member; statewide average was equal to $562.00, but ranged from -$482 to -$1,094.

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Per Pupil Adj. – Low Revenue

Low Revenue Ceiling: Beginning in the 1995-96 school year, the

calculation provides for an additional adjustment for districts that have relatively low revenue per member (after the Per Pupil Adjustment is applied)

Set amount prescribed by law (per State Biennial Budget)

Never was linked to inflation, but determined in the context of the Per Pupil Adjustment amount provided under law

Same threshold applies to all districts

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Year Ceiling

% Chang

e

# ofDistricts Eligible

n/an/a

1995-96 $5,300 291996-97 $5,600 5.7% 331997-98 $5,900 5.4% 411998-99 $6,100 3.4% 161999-00 $6,300 3.3% 52000-01 $6,500 3.2% 62001-02 $6,700 3.1% 42002-03 $6,900 3.0% 22003-04 $7,400 7.2% 52

Year Ceiling%

Change

# of Districts Eligible

2004-05 $7,800 5.4% 872005-06 $8,100 3.8% 852006-07 $8,400 3.7% 942007-08 $8,700 3.6% 862008-09 $9,000 3.4% 752009-10 $9,000 0.0% 12010-11 $9,000 0.0% 12011-12 $9,000 0.0% 1042012-13 $9,000 0.0% 102013-14 $9,100 1.1% 82014-15 $9,100 0.0% n/a

Under current law, the low revenue ceiling will increase to $9,100 beginning in 2013-14 (no changes specified after that year).

Low Revenue Ceiling Threshold since 1995

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Example of Low Revenue Ceiling (Example #1) Base Revenue = $4,203,000

Divide by Base Membership = 467 FTE (3-yr average)

Equals Base Revenue per Member = $9,000

Add the Per Pupil Adjustment: $75

Equals an Adjusted Revenue per Member = $9,075

LOW REVENUE CEILING THRESHOLD = $9,100

Apply the Low Revenue Adjustment: $9,100 - $9,075 = $25

New Revenue per Member:

$9,075 + $25 = $9,100 (no exemptions yet)

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Basic Computation


+ GENERAL AID)

BASE MEMBERS(3-YEAR

AVEARAGE)


(STARTING POINT)

BASE REVENUE PER

MEMBER (STARTING

POINT)


(INCREMENT*)


*Low-Revenue Ceiling adjustment as applicable.

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New Revenue Limit (no exemptions)

New Revenue per Member (as adjusted) multiplied by the current year membership = New Revenue

Limit (no exemptions)Previous Example #1: $9,100 per Member after Per Pupil & Low Revenue

Adjustments

Multiply by current membership of 455 FTE (3 year average)

Equals New Revenue: $9,100 x 455 = $4,140,500

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Basic Computation


+ GENERAL AID)

BASE MEMBERS(3-YEAR

AVEARAGE)


(STARTING POINT)

BASE REVENUE PER

MEMBER (STARTING

POINT)


(INCREMENT*)



CURRENT MEMBERS (3-

YEAR AVERAGE)

NEW REVENUE LIMIT**

*Low-Revenue Ceiling adjustment as applicable**Prior to any exemptions.

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Revenue Limit Exemptions

We’ve covered the basic Revenue Limit Calculation, but most

districts will make use of at least one Revenue Limit Exemption

from time to time …

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Remember the “pie” analogy?

You can think of an exemption as a way to expand the pie crust …

Non-Recurring Exemptions (temporary) – make this year’s pie crust larger

Recurring Exemptions (permanent) – makes this and future years’ pie crust larger


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Base

Non-Recurring Exemptions – One Year

Only

Recurring

Current Year

Following Year

Base Base

Non-Recurring

Base

Recurring Exemptions – Permanently in the Base

Current Year

Following Year

Understand the difference between

Recurring & Non-Recurring Exemptions

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Non-Recurring Exemptions

Non-Recurring Exemptions (temporary) – makes this year’s pie crust larger: Determined automatically in Revenue Limit

Calculation: Revenue Base “Hold Harmless” Declining Enrollment

Requires approval by Electors or Board: Non-Recurring Referendum Energy Efficiency Project

Other (DPI works with district to determine) Prior Year uncounted Open Enrollment Pupils Refunded/Rescinded Taxes

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Base Revenue Hold HarmlessBase Revenue Hold-HarmlessAdditional revenue authority to bring a district back up to its Base Revenue after the Per Pupil & Low Revenue Ceiling adjustments are applied:

Previous Example #1: New Revenue ($9,100 x 455) = $4,140,500 Base Revenue = $4,203,000 New Revenue < Base Revenue Base Revenue Hold-Harmless Exemption = $62,500 Raises the district’s Revenue Limit to the base, $4,203,000

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Base Revenue Hold HarmlessWhy would a district be in this position? The effect of the decline in the district’s

membership is greater than the positive effect of the per pupil adjustment

Previous Example #1: Base Members = 467 FTE [Base Revenue = $4,203,000]

Current Members = 455 FTE [New Revenue: 455 x $9,100 = $4,140,500]

Decline in Members: 12 FTE x $9,000 = loss of $108,000 Additional authority: $75 Per Pupil & $25 Low Revenue Ceiling

adjustments: $100 x 455 = $45,500 Difference: -$108,000 + $45,500 = $-62,500

[e.g., the Base Hold-Harmless Exemption amount]

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Base Revenue Hold HarmlessDo all “Declining Enrollment” districts get the Base Revenue Hold Harmless exemption? No … it depends on the numbers.

Example #2 Base Members = 467 FTE [Base Revenue = $4,203,000]

Current Members = 465 FTE [New Revenue: 465 x $9,100 = $4,231,500]

Decline in Members: 2 FTE x $9,000 = loss of $18,000

Additional authority: $75 Per Pupil & $25 Low Revenue Ceiling adjustments: $100 x 465 = $46,500

Difference: -$18,000 + $46,500 = $28,500

[e.g., not eligible for the Base Hold-Harmless Exemption because New Revenue > Base Revenue by $28,500]

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Declining Enrollment

Declining EnrollmentThis exemption provides districts with additional revenue authority to make up for the loss in revenue authority due to declining enrollment: Determine decrease in FTE between base and

current year membership Multiply that difference by the district’s

current year revenue per member (as adjusted by Per Pupil and Low Revenue Ceiling)

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Declining Enrollment

Do all “Declining Enrollment” districts get this exemption? YES! (provided the “decline” appears in the 3-year ave

membership)

Example #1 Base Members = 467 FTE Current Members = 455 FTE Decline in Members: 12 FTE Declining Enrollment Exemption = 12 FTE x $9,100 = $109,200

Example #2 Base Members = 467 FTE Current Members = 465 FTE Decline in Members: 2 FTE Declining Enrollment Exemption = 2 FTE x $9,100 = $18,200

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Non-Recurring Referendum

Non-Recurring ReferendumA district may get additional revenue limit authority by obtaining approval from the electors via the referendum process. No dollar limit on referendum imposed by State Law; rather,

needs of district balance with comfort level of the community electors.

Non-Recurring Referendum can be:

Single Year – e.g., “$500,000 in 2013-14”

Multiple Year – e.g., “$500,00 for each year of 2013-14 to 2017-18” (e.g., 5 years of additional revenue authority, but DOES NOT add to the district’s base)

May be “over-lapping” (e.g., with a Recurring Referendum)

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Non-Recurring ReferendumNon-Recurring Referendum REMEMBER: If an Exemption is NON-RECURRING

(temporary), the district will need a plan to either fund the future expenditures with a different source or eliminate the expenditures.

For this reason, Non-Recurring Referendum are often used for expenditures that are short term in nature, e.g., deferred maintenance, purchase equipment, etc.

NOTE: Districts may use the referendum process to get approval to issue debt for building projects – this type of referendum is completely OUTSIDE the revenue limit (not an exemption).

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Energy Efficiency Exemption

Energy Efficiency Project ExemptionA district may get additional revenue limit authority to pay the costs of a project that results in the avoidance of, or reduction in, energy costs or operational costs: The use of this exemption to cover EE Project costs

MUST be approved in a resolution of the District Board (not a vote put to the electorate).

Eligibility for this exemption requires the district to meet several specific statutory requirements, summarized on the following slides, but link to information here:

http://sfs.dpi.wi.gov/sfs_enrgyrevlim

http://sfs.dpi.wi.gov/sfs_enrgyrevlim

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Energy Efficiency Exemption Districts may claim the exemption to pay for one-time costs

or to pay debt service if the district borrows for project. Project costs, anticipated savings and cost-recovery

timeline must be specified in the resolution; energy savings (performance results) must be reported at year end to the community and to SFS Team.

All districts using the EE Exemption MUST enter into a Performance Contract with the vendor, whether using the exemption on a one-time bases or to pay debt service on borrowed funds for a project.

A district may obtain a State Trust Fund Loan in addition to issuing bonds or notes as a vehicle to borrow funds for an EE Project.

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Energy Efficiency ExemptionIf borrowing for a longer term EE Project, several

points: The Board must approve a resolution between July 1st &

Nov. 1st in each year in which it claims the exemption (e.g., borrowing for 20 years = pass a resolution to use exemption for 20 years).

Borrowed funds do count against the district’s $1 million limit on borrowing without automatically going to referendum.

Per 2013 WI Act 20, districts that use the exemption to pay for debt service costs must determine if any measurable utility savings have occurred; if so, use that savings to retire the debt.

The exemption amount = CY debt service payments.

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Energy Efficiency ExemptionPotential Penalty: A district must expend the full amount that it

claimed as the EE Exemption on valid project costs by June 30th of the year in which the exemption is claimed, as determined by the School District’s Auditor.

If full exemption amount was NOT expended on valid project costs within the required time frame, then a penalty will be assessed against the district the following year:

Penalty = $ amount not expended Reduction to the district’s Base Revenue for

following year

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Referendum & Energy Efficiency Exemptions

The DPI – SFS Team always advises School Districts to seek advice from the District’s own Legal Counsel when crafting language

for a Referendum (non-recurring or recurring), as well as a resolution to utilize

the Energy Efficiency Revenue Limit exemption.

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Other Non-Recurring Exemptions

Exemption for Uncounted Prior Year Open-Enrollment Pupils: Districts are supposed to count resident pupils that are Open

Enrolled-Out of the district, because at year-end, the resident district pays the non-resident district for those pupils.

If an Open Enrolled-Out pupil was not counted by the resident district, that district has lost out on revenue authority for that pupil – but still has to pay the other district.

Sometimes resident pupils who are Open Enrolled-Out are “missed” in the resident district’s September count.

When this happens, the district works with DPI to determine the Open Enrollment payment for those “missed pupils” and that amount can be claimed by the district the following year.

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Other Non-Recurring Exemptions

Exemption Refunded or Rescinded Taxes: Allows a district to re-capture revenue authority that

was lost as a result of a determination that certain property tax revenues must returned

Districts would be notified by the local taxing authority (municipality) if this occurs then must notify the SFS Team about the refunded/rescinded tax.

NOTE: this is somewhat different than a “Chargeback”:

Occurs when the municipality must collect revenue “back” from a district in the case of uncollected taxes;

Districts may recapture this lost tax revenue via the “Chargeback Levy” which is completely OUTSIDE the revenue limit calculation

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Key thing to know about Non-Recurring Exemptions – they are

temporary!

Questions?

Now onto Recurring Exemptions … (don’t worry – fewer and less

complicated!)

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Recurring Exemptions (permanent) – makes this and future years’ pie crust larger:

Determined automatically in Revenue Limit Calculation: Eligible Carryover (of prior year unused authority)

Requires approval by Electors: Recurring Referendum

Other Recurring Exemptions (DPI works with district to determine amount) Transfer of Service

Transfer of Territory

Loss of Federal Impact Aid

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Recurring Exemptions-CarryoverEligible Carryover from Prior Year Under-Levy

If a district under-levies in a given year, can they ever get that revenue authority back? It depends …

Unused levy authority in one year will become “carry-over” authority into the

following year, but only the amount that exceeds the non-recurring exemptions

claimed by the district.

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Carryover: Under-Levy& NR Exemptions

Eligible Carryover from Prior Year Under-Levy

1. District has under-levied and had NR exemptions:a. If under-levy > NR exemptions, then

Carryover = under-levy less the NR exemptions ex: $100,000 under-levy - $75,000 NR exempts = $25,000 carryover

b. If under-levy = NR exemptions or under-levy < NR exemptions, then Carryover = zero

2. District has under-levied and had ZERO NR exemptions:ALL of the district’s under-levy becomes eligible as carryover

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Carryover: Under-Levy& NR Exemptions

NOTE: the converse appliesUnder-levy reduces the amount of NRE removed from the base:

1. District had NRE and also under-levied:a. If NRE < under-levy or

NRE = under-levy, then NRE Removed from Base = zero

b. If NRE > under-levy then NRE Removed from Base = NRE less under-levy ex: $100,000 NRE - $75,000 under-levy = $25,000 removed from base

2. District has NRE and did NOT under-levy:ALL of the district’s NRE are removed from the base

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Recurring Referendum

Recurring ReferendumA district may get additional, ongoing revenue limit authority by obtaining approval from the electors via the referendum process (e.g., for operating costs). No dollar limit on referendum imposed by State Law; rather, needs

of district balance with comfort level of the community electors. Recurring Referendum can be:

Single Year – e.g., “$500,000 in 2013-14” (adds $500,000 to base)

Multiple Year – e.g., “$500,00 for each year of 2013-14 to 2017-18” (after 3 years adds $1,500,000 to the base)

May be “over-lapping” (e.g., with an NR referendum)

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Other Recurring Exemptions

Transfer of Service: an adjustment to reflect the additional costs of programs/services for which the district assumed responsibility from another unit of government:

Very often for costs of Special Education service assumed by a district;

Can be a negative adjustment for the district from which the transfer occurred.

District must report specific information to the SFS Team in order to claim this exemption

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Other Recurring Exemptions

Transfer of Territory: an adjustment to account for territory (and pupils) becoming part of, or detaching from, a district.

Federal Impact Aid Loss: to adjust for loss in Federal Aid from one year to the next, for districts that receive Federal Impact Aid (for non-taxable, federal properties).

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Key thing to know about Non-Recurring Exemptions – they stay

in the revenue base!

Questions?

Now, let’s put it all together …

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New Revenue Limit w/ Exemptions

After all exemptions are applied – New Revenue Limit (“Line 11”) for the current year: This amount represents the total controlled revenue authority available to the district between General Aid & Property Tax Levy Remember: Limit – General Aid = [Controlled]

Levy District must allocate its allowable “Controlled” Levy:

General Fund (Fund 10)

Non-referendum Debt Service Fund (Fund 38)

Capital Expansion Fund (a.k.a., “Sinking Fund”, Fund 41) District may “levy to the max” or under-levy; an over-

levy will result in a penalty the following year.

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NOTE: District should review the Revenue Limit worksheet “Line 11” across years to see the trend in allowable revenues, which will be affected by: Membership (residents) – increasing/steady/declining Per Pupil Adjustment (state law) Use of exemptions by the district (local decision)

Where can I see this for my district?SFS Team’s web page “Longitudinal Data – Revenue Limits”

http://sfs.dpi.wi.gov/sfs_buddev_rl



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Revenue Limit-Longitudinal Data (Truncated)

WISCONSIN DEPARTMENT OF PUBLIC INSTRUCTION

SURVEY OF REVENUE LIMIT FORMULA COMPONENTS: 2004-05 TO 2013-14

Finalized in

May, 2014

2009-10 2010-11 2011-12 2012-13 2013-14 Estimate

1.) Base Revenue $5,882,487 $6,148,691 $6,422,991 $6,163,349 $6,367,931

2.) Base 3-Year Membership 640 648 658 662 6743.) Base Revenue Per Member (Line 1 ÷ Line 2) $9,191.39 $9,488.72 $9,761.38 $9,310.19 $9,447.97

4.) Per-Member Increase $200 $200 -$537 $50 $75

5.) Maximum Revenue Per Member (Ln 3+Ln 4) $9,391.39 $9,688.72 $9,224.58 $9,360.19 $9,522.97

6.) Current 3-Year Membership 648 658 662 674 680

7.) Total Max Revenue Limit (no exemptions) $6,085,621 $6,375,178 $6,106,672 $6,308,768 $6,475,620

a. Max Rev/Memb x Cur Memb Avg $6,085,621 $6,375,178 $6,106,672 $6,308,768 $6,475,620

b. Line 7 Hold Harmless Non-Recur Exemption $0 $0 $0 $0 $0

8.) Recurring Exemptions $63,070 $47,813 $56,730 $59,163 $22,324

10.) Non-Recurring Exemptions $0 $0 $0 $0 $0

11.) Maximum Revenue Limit w/ Exemptions $6,148,691 $6,422,991 $6,163,349 $6,367,931 $6,524,212

12.) October 15 General Aid Certification $5,131,830 $5,000,286 $4,885,865 $4,864,065 $5,348,867

13.) Allowable Limited Revenue $1,016,861 $1,422,705 $1,277,484 $1,503,866 $1,175,345

(Ln 11 - Ln 12)

14.) Limited Revenue Used $1,016,861 $1,422,705 $1,277,484 $1,503,866 $1,175,345

(includes levies 10, 38, & 41 + computer aid)

15.) Total Revenue from Other Levies $579,002 $197,851 $398,316 $300,000 $633,000

16.) Low Revenue Ceiling Aid (only in 2011-12) n/a n/a $0 n/a n/a

16.) / 17.) Total Levy+Src 691 $1,595,863 $1,620,556 $1,675,800 $1,803,866 $1,808,345

17.) / 18.) Computer Aid $5,463 $6,437 $7,142 $13,740 $11,808

18.) / 19.) Total All-Fund Tax Levy $1,590,400 $1,614,119 $1,668,658 $1,790,126 $1,796,537

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What explains changes in the LEVY from year to year? Changes in the district’s allowable controlled revenue

authority (Line 11) Changes in State General Aid Board’s decision to under-levy or levy to the max Other “non-controlled” levies:

Referendum Debt

Community Programs and Services (Fund 80)*

Chargeback levy

*Fund 80 was previously subject to the Revenue Limit, until 2000-01; recent interest in Fund 80 levies has spurred reporting requirements of districts.

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What explains changes in the LEVY RATE from year to year? Total district levy – controlled & non-controlled

Changes in the district’s equalized property value – determination that is completely outside the control of the district (values are calculated by the Dept. of Revenue)

Also, remember that the levy that is approved and certified by the Board is a “gross” school levy – it does not reflect the impact of the School Levy Tax Credit

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What explains changes in the LEVY RATE from year to year? Total district levy – controlled & non-controlled

Changes in the district’s equalized property value – determination that is completely outside the control of the district (values are calculated by the Dept. of Revenue)

Also, remember that the levy that is approved and certified by the Board is a “gross” school levy – it does not reflect the impact of the School Levy Tax Credit

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The Revenue Limit Calculation is quite complex … where can you go in the future for more information?

Talk to your district Business Manager & Administrator

Talk with your peers

Talk to the SFS Team at DPI – contact information at:

http://sfs.dpi.wi.gov/sfs_staffdir




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Thank You!

Please feel free to stop by the DPI booth if you’d like to chat more

about your specific district data!

We’ll have the 2013-14 Equalization Aid and 2013-14 Revenue Limit

data available so you can continue the conversation with us……..

See you later!

Erin Fath, Assistant Director, School Financial Services Team, DPI Bob Avery, Director of Business...

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