School Funding 101 Understanding School Funding Terms and Concepts.
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Transcript of School Funding 101 Understanding School Funding Terms and Concepts.
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School Funding 101
Understanding School Funding Terms and Concepts
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Montana School Funding 101General Fund Budget
• Two lawsuits that shaped our funding structure today.– Loble Decision (1989)– Columbia Falls vs. Montana
• Sherlock Decision (2008)
• School Funding Basics– Minimum and Maximum Budgets
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School Funding 101General Fund
• Base Budget– 80% of average
• Maximum Budget– average
• Enrollment determines budget
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Montana School Funding OverviewPer Pupil Spending in the State
$10,500 $11,227 $10,325 $12,400
$8,500 $8,322 $8,267 $8,955
$7,500 $7,850 $7,900$6,500 $6,750 $6,825 $6,900
$5,085 $5,100 $5,123 $5,175
$4,800 $4,850 $4,922 $4,927
$4,556 $4,678 $4,625
$4,235 $4,325 $4,328 $4,443$4,150 $4,175
$3,500 $3,450 $3,275 $3,628
$3,000 $2,800 $2,754
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Montana School Funding Overview$10,500 $11,227 $10,325 $12,400
$8,500 $8,322 $8,267 $8,955
$7,500 $7,850 $7,900$6,500 $6,750 $6,825 $6,900
$5,085 $5,100 $5,123 $5,175
$4,800 $4,850 $4,922 $4,927
$4,556 $4,678 $4,625
$4,235 $4,325 $4,328 $4,443$4,150 $4,175
$3,500 $3,450 $3,275 $3,628
$3,000 $2,800 $2,754
Maximum100%Average
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Montana School Funding Overview$10,500 $11,227 $10,325 $12,400
$8,500 $8,322 $8,267 $8,955
$7,500 $7,850 $7,900$6,500 $6,750 $6,825 $6,900
$5,085 $5,100 $5,123 $5,175
$4,800 $4,850 $4,922 $4,927
$4,556 $4,678 $4,625
$4,235 $4,325 $4,328 $4,443$4,150 $4,175
$3,500 $3,450 $3,275 $3,628
$3,000 $2,800 $2,754
Maximum100%Average
20 %
80% ofAverageBASE
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Guaranteed Tax Base• Taxable
Valuation of each county
• Average for the State
• State Assistance for Counties below the average
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State Average Taxable Valuation
State Average
Taxable Valuation AssistanceGuaranteed Tax Base
County Average
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Budget Terminology• Basic Structure of the General Fund
Maximum 100% Budget
BASE Budget
80%
The Over Base Budget includes previously approved local mill levies, newly voted levies & tuition payments.
The BASE Budget is set by formula and takes into account all State funding, mandatory permissive mill levies, and Guaranteed Tax Payments (GTB).
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Direct State Aid
• Per Student (ANB)– Elementary $5,120– High School $6,555
• Basic Entitlement (School)– Elementary $40,000– Middle School $80,000– High School $290,000
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Budget Terminology• Basic Structure of the General Fund
Maximum 100% Budget
Over Base Budget
BASE Budget
80%
New Mill LeviesPrevious Mill Levies(Tuition Payments)
Guaranteed Tax BaseNon-Levy RevenueSpecial EducationDirect State AidIndian Education for AllAmerican Indian Achievement GapAt Risk StudentsQuality Educator Payments
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State Payment Categories
• Direct State Aid – School & Students• Special Education• Quality Educator• Indian Education for All• American Indian Achievement Gap• Data for Achievement• Guaranteed Tax Base (if applicable)• At Risk
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State Support Sherlock Decision
• Montana Quality Education Coalition -MQEC• State Share for Education• “ the current Montana school funding system
violates Article X, Section 1 of the Montana Constitution in that it fails to provide adequate funding for Montana’s public schools.”
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State Support Share of General Fund Budgets
71.44%
69.43%
67.30% 67.16%66.66%
65.37%
64.38%
63.01%
62.00%
62.88%63.51%
61.49%
60.79%60.49%
59.99%60.53%
61.91%
63.40% 63.46%
63.12% 63.35%63.42% 63.64%
64.04%
54.00%
56.00%
58.00%
60.00%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
74.00%
FY1991
FY1992
FY1993
FY1994
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
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State Government Trend
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Budgeted Funds• General• Transportation• Bus Depreciation • Tuition• Retirement• Adult Education• Non-Operating• Technology• Flexibility• Building Reserve
• (Red indicated that the Great Falls Public School District does not use this Fund)
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Moving Parts
• Student Enrollment• Taxable Valuation/Mill Value• State Support• Guaranteed Tax Base• Annual Increases (Inflation + Increases)• Health Insurance Costs• Local Levies
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InflationBasic Entitlements FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Elementary Basic $40,000 $50,000 $50,895 $51,526 $52,093
Middle School Basic $80,000 $100,000 $101,790 $103,052 $104,186
High School Basic $290,000 $300,000 $305,370 $309,157 $312,558
Basic Entitlement Increments
Elementary (each 25 ANB> 250 ANB) $2,000 $2,500 $2,545 $2,576 $2,605 Middle School (each 45 ANB> 450 ANB) $4,000 $5,000 $5,090 $5,153 $5,209 High school (each 80 ANB past 800 ANB) $12,000 $15,000 $15,269 $15,458 $15,628
Per ANB Entitlements
Elementary Per ANB $5,226 $5,348 $5,444 $5,512 $5,573High School Per-ANB $6,691 $6,847 $6,970 $7,056 $7,134District State Aid (DSA) % 44.7% 44.7% 44.7% 44.7% 44.7%
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School District Cash Flow(Why Reserves are needed)
November and May – Taxes PaidAll other months except July– Direct State Aid
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July Aug Sept Oct Nov Dec Revenue $181 $2,148 $2,232 $2,186 $10,774 $2,284Expenses $809 $1,211 $3,337 $3,429 $3,516 $3,958
Jan Feb Mar Apr May JuneRevenue $2,265 $2,142 $2,171 $2,208 $9,305 $4,540Expenses $3,300 $3,400 $3,988 $3,447 $3,685 $9,177
Cash Flow
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Reserves vs. Fund BalanceGovernmental Accounting Standards Board 54 – Fund Balance
• Non-Spendable – Inventory or Corpus of Endowment Fund
• Restricted – Money is generated from enabling legislation.
• Committed – Constrained for a specific purpose by the highest level of decision making authority (Board).
• Assigned – District intends to use – Board or designated official by the board has the authority to spend funds.
• Unassigned – General Fund Budget money only which is available for any purpose.
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http://opi.mt.gov/pdf/schoolfinance/budget/UnderstSchlFin.pdf
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Proposed District Financial ProcessJanuary 2016: Setting the Stage – Providing Basic Information: “This is Great Falls Public Schools” presentation with voice recorded and posted in a variety of places for people to access and view on their own. February 2, 2016: Macro Budget & Fund Balance PresentationsFebruary 17, 2016: State & Federal Revenue Projections - Estimates of Cost Increases & Earmarks.March 3, 2016: Final Review of State funding and Cost Estimates. Community input.March 10, 2016 : Budget Recommendations & ProposalMarch 28, 2016 : Board Budget Committee Recommendation with Board Action
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Resources– Brian Patrick
Director of Business Operations Great Falls Public Schools
– Information on District Web Page– http://www.gfps.k12.mt.us
– District Budget Information– http://
www.gfps.k12.mt.us/sites/default/files/GFPS_DistrictBudgetInformation2.pdf
• 268-6050