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The Aid Formula - Factors That Create Change WASBO Fall Conference Elkhart Lake September 28, 2006 Lori Ames Jerry La

The Aid Formula

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The Aid Formula - Factors That Create Change WASBO Fall Conference Elkhart Lake September 28, 2006 Lori Ames Jerry La

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    1. The Aid Formula - Factors That Create Change WASBO Fall Conference Elkhart Lake September 28, 2006 Lori Ames Jerry Landmark DPI School Finance Team

    2. The Aid Formula – Factors that Create Change How much aid is there? What determines how much each district gets? How can you tell where you are in the aid formula? How can you spend more and lose aid? Will your district’s placement in the aid formula change in coming years?

    3. 2006-07 EST GENERAL AID

    4. EQUALIZATION AID

    5. 2006-07 EQUALIZATION AID

    6. 2006-07 Equalization Aid Factors DISTRICT Membership School Aid Value + Computer Value Shared Cost

    7. Primary Cost Ceiling - $1,000 (Set by Law) Secondary Cost Ceiling - $8,366 (90% State Average Shared Cost Per Member) 2006-07 K-12 STATE AID FACTORS

    8. Primary Guarantee - $1,930,000 (Set by Law) Secondary Guarantee - $1,260,004 (“Floats” to Distribute the Appropriation) Tertiary Guarantee - $483,033 (Average Property Value Per Member) 2006-07 K-12 STATE AID FACTORS

    9. 2006-07 DISTRICT AID FACTORS Use prior-year district data. ? 2005-06 Shared Cost ? 2005-06 Membership ? 2005 School Aid Values

    10. 2006-07 DISTRICT SPECIFICS

    11. 2006-07 EQUALIZATION AID

    12. ?“Simplified” Percentage Method ?July 1 Estimate Method Algebraically, virtually the same. May be some difference due to rounding. DISTRICT WORKSHEETS

    13. WORKSHEETS ON THE WEB

    14. EQUALIZATION AID

    15. TIER 1 CALCULATION Sample District – Positive Aid 13.74% x $1,000 = $137.41 District 86.26% x $1,000 = $862.59 State Aid

    16. TIER 2 CALCULATION Sample District – Positive Aid

    17. TIER 3 CALCULATION Sample District – Positive Aid

    18. TOTAL EQUALIZATION Sample District – Positive Aid

    19. EQUALIZATION AID Sample District – Positive Aid The aid amount of $7,663,591 is now adjusted for : Milwaukee Charters ($64,318) Equal Aid Adj 0 Final Total (rounded) $7,599,273

    20. COST SHARING PERCENTAGE Sample District – Positive Aid

    21. TIER 1 CALCULATION Sample District – Negative Aid 36.31% x $1,000 = $363.15 District 63.69% x $1,000 = $636.85 State Aid

    22. TIER 2 CALCULATION Sample District – Negative Aid

    23. TIER 3 CALCULATION Sample District – Negative Aid

    24. TOTAL EQUALIZATION Sample District – Negative Aid

    25. EQUALIZATION AID Sample District – Negative Aid The aid amount of $12,834,096 is now adjusted for : Milwaukee Charters ($ 107,713) Equal Aid Adj 0 Final Total (rounded) $12,726,382

    26. COST SHARING PERCENTAGE Sample District – Negative Aid

    27. Hold-Harmless Provisions Assuming a district is in the aid formula: A district will always receive primary aid Negative tertiary aid will subtract from positive secondary aid Negative secondary aid can not subtract from positive primary aid A district’s equalization aid eligibility will be at least 85% of the prior year – to meet the 85%, a district will receive special adjustment aid

    28. Equalization Aid New Spreadsheet!!! It gives you equalization aid factors by district across a 7 year period to help you analyze why your aid has changed – and lets you see past trends to help you estimate how it may change in the future.

    29. Timeline of DPI-Provided Aid Worksheets April (?) July 1 (required by law) Late September (used as a data check for the October 15 Certification) October 15 Certification (must be used in the Revenue Limit) Final (typically completed in summer)

    30. AID USED IN REVENUE LIMIT

    31. OCTOBER-JUNE ADJUSTMENTS Per 121.15 (4) (b), districts use the October 15 Certification in their Revenue Limit computation. Final aid is computed sometime during the following spring/summer. Differences between the 2 aid runs are made as an adjustment to the payment made in September of the following school year.

    32. MISCELLANEOUS What was two-thirds funding? It was a calculation done at the state level that added together several revenue sources, (levies, state and categorical aid and levy credit) to determine an amount that the state will pay, in total, to districts. What did two-thirds funding mean for individual districts? It never meant that each district would receive 66.7% of their cost as aid. A district might or might not have had the state fund two-thirds of its costs. It depended where the district was in the equalized aid formula.

    33. QUESTIONS?

    34. THANK YOU! Please call us with questions or comments! Brad Adams, Consultant, 267-3752 Lori Ames, Consultant, 266-3464 David Carlson, Director, 266-6968 Gene Fornecker, Auditor, 267-7882 Kathy Guralski, Auditor, 266-3862 Karen Kucharz, Consultant, 267-9707 Jerry Landmark, Assistant Dir., 267-9209 Natalie Rew, Auditor, 267-9212

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