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BUDGET OVERVIEW

BUDGET OVERVIEW. USD 247 SOUTHEAST. Revenues. 2 Year Tax Review - Required by KSA 79-2925b. Overall Revenue Notes. 1) By law, best revenue option was to use last years enrollment (zero students lost from McCune in this budget) revenue decreased: $435, 896

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BUDGET OVERVIEW

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  1. BUDGET OVERVIEW USD 247 SOUTHEAST

  2. Revenues

  3. 2 Year Tax Review -Required by KSA 79-2925b

  4. Overall Revenue Notes 1) By law, best revenue option was to use last years enrollment (zero students lost from McCune in this budget) revenue decreased: $435, 896 2) We had maxed out our local taxes. Our HS grant of $1.4 Million had ended totally last year. We hope that with new flexibility in how we can spend Capital Outlay funds we can offset some of the losses using the increase in state aid for capital outlay that did not exist before. We get approximately 50 cents on the dollar now in Capital Outlay state aid. In previous years capital outlay was all local dollars.

  5. General Fund –Code 06 notes • The 06 Budget is not padded this year for legal authority. I may have to republish should we grow in student count. I anticipate a 54 student loss this year, but we will be funded on last year’s numbers as permitted by law. • The budget only has small margins of safety allowances to deal with unexpected costs in each fund. These safety allowances may be eliminated if we don’t pass the Capital Outlay resolution as we have mandatory expenditures to make in the Capital Outlay fund. • The State’s response to Supreme Court ruling provided us with less than $2,000 more money for bills, except for aid in Capital Outlay.

  6. GENERAL FUND THREATS and Challenges • STATE AID could fall due to valuation remaining steady especially, if enrollment declines (We look richer per student). • State could reduce state aid in response to failing economy. • Affordable Health Care Act could force uninsured onto our plan ($203,000) • Increased costs: Salaries, Minimum Wage, SPED, Food, Fuel, Utilities etc.

  7. The Supplemental General FundCode 8 (LOB) • Declining enrollment cost us $44,625 this year. • The State’s response to the Supreme Court decision did not give us any money in this fund. It did help lower property owner taxes.

  8. Federal Funds – Code 07 • As stated previously, the last carry over of the HS SIG grant ended last year. • Regular funds have increased slightly about $5,000 total. • The Save the Children After School/Summer Grant (K-4) and the USD 247/Civil Air Patrol After School/Summer Grant pay for themselves, but require small amounts of expenditures on our part as our participating share. The Grant funds are used to instruct students and give students various opportunities. The funds cannot be used for our regular costs.

  9. At Risk 4 Year Old- Code 11 • We spend approximately $36,000 on our pre-K program annually. Qualified families participate for free and paying families (pending space) pay $80 dollars a month. 5 Half day sessions per week Transportation included

  10. K-12 At Risk- Code 13 • At Risk money reduces Salaries spent in General fund, but flows through General fund via transfers. • This fund of $684,365 is in extreme danger as the state legislature is considering a law change that will greatly decrease this funding by possibly as much as many hundreds of thousands of dollars IE. $450-500,000. The law would penalize district who get poverty students to perform well.

  11. Capital Outlay- Code 16 • We are beginning year with $264,000. • This balance is below or equal to most 1A school districts with two buildings in one location and 1/3 students and staff or less. • We are supplementing this funding with transfers from the General fund. • The 4 mils we have been generating provide $120,000 which is used for the Chevron build out ($100,000) 2008 installation. The Chevron cost rises each year to $130,000 in year (2028).

  12. Capital Outlay: The loss of 2013-14 Taxes • The $264,000 balance has about $130,000 that we have had to freeze and will not be available for us to spend this year. In a statement received explaining the September 2012 resolution situation, the former clerk has written to us stating that she planned to run Capital Outlay ads in December as she had done in the past with previous Capital Outlay resolutions (before 2010. Note: 2008 Resolution was run June 2008 when resolution was passed for five years). The former clerk departed on November 12, 2012 and the new BOE Clerk did not arrive until January 2013 and that created the gap in service for the certification not to be processed.

  13. Capital Outlay- 2014-15 Because the absent certification of 2012 was never notified to us by the county clerk, our resolution passed on July 9, 2014 is the only chance we have at having $306,000 this year and the $130,000 for five years (included in the $306,000) is in jeopardy. That resolution has been petitioned, which will require a special election, to be set around the beginning of October, 2014. It must be made clear: The Capital Outlay tax is proposed to “double” from 4 to 8 mils, but NOT THE TOTAL TAX. The total tax rate WILL DECREASE over 7 mils and it will capture about 50 cents on the dollar in state aid that has not been present before versus local property owners being the sole source.

  14. Capital Outlay 2013-14 Law • Kansas Statutes(K.S.A.) Chapter 79: Taxation Article 19: Limitations On Tax Levies • Statute 79-1965: Levies in excess of limitation unlawful; duty of county clerk to reduce levy and give notice thereof to taxing subdivision. Any amount of ad valorem tax to be levied for a fund of any taxing subdivision which is certified to the county clerk and produces a tax levy rate or amount that is in violation of the provisions of existing statutes, shall be unlawful, and in any such case it shall be unlawful for the county clerk of any county within the state to enter upon the tax roll of the county any such excessive levy.In case of any such excess in any levy the county clerk shall reduce the levy and extend upon the tax roll only the part thereof as will comply with the provisions of existing statutes. In the event the county clerk determines it is necessary to change any amount of ad valorem tax to be levied in a budget so certified, the county clerk shall give notice to the taxing subdivision affected at least seven days prior to making the change. History:   L. 1933, ch. 309, § 21; L. 1973, ch. 394, § 1; L. 1981, ch. 379, § 4; July 1.

  15. Capital OutlayATTORNEY GENERAL OPINION NO. 86- 127 If a valid petition is filed in opposition to the proposed tax levy increase, the county clerk may not certify the school district budget with the mill increase figured in unless and until a majority of all electors voting have approved the proposed mill levy increase at a regular or special election. A special election may be called after the August 25 certification deadline to determine the voters' will, as this deadline is merely directory, not mandatory. As soon as the election results are determined, the school district shall submit its proposed budget, either with or without the mill increase figured in, to the county clerk for certification. Cited herein: K.S.A. 12-1904, as amended by L. 1986, ch. 80, §2; K.S.A. 1985 Supp. 12-1908, as amended by L. 1986, ch. 80, §4; K.S.A. 79-1801; 79-2930.

  16. Capital Outlay- What does it mean? If the County Clerk’s Office had notified us according to law, we could have had from November 2012-June 2013 to pass a resolution and possibly not lost our $130,000 for the 2013-14 school year and we possibly would not have to facing losing $306,000 for the 2014-15 school year. We would have had the chance for TWO special elections to pass to the resolution to get both amounts of money.

  17. IF the Resolution Fails? 1) District will not have any Capital Outlay tax coming in this year. 2) District will only have $10,000 for Capital Outlay needs ($260,000 balance- $130,000 unable to spend- $100,000 in Chevron lease and -$20,000 for SHS IPADS). Average about $215,000 above the Chevron lease in expenditures. 3) No money for emergency repairs on equipment such as HVAC, Buses, ADA work and we need to buy a bus at $80,000 new.

  18. If the Resolution Passes We will be able to take of needs such as: New Bus (1 needed each year now through 2030 to comply with legal age limit, we can only delay one year). Band Uniforms (20 years old- life span 15) ADA Compliance for Playgrounds SES Tornado Shelter ($104,000 our share of a federal Grant for $377,000- pending) Will not have to repeat the process again next year.

  19. Drivers Education- Code 18 • The funds here will be used to offset operational costs above student tuition. • We contract classwork to USD 313 virtually and use our staff for road instruction. • The budget allocated is for legal authority only. We expect total costs to be under $2,500 so we have a couple of years operation in this budget.

  20. Food Service- Code 24 • The budget does not do much more than cover anticipated cost increases and needs. • Our recent price increase met the federal mandate for price increases and the increase in the cost of milk. • Rising food costs not passed on to families will increase our operation costs this year. • One item reserves the $60,000 starting balance needed for next July 1.

  21. Professional Development- Code 26 • Transfers will be small this year as we will be running on pre-paid systems to save funds for other areas. • Significant training will be conducted in Common Core, MTSS, 21st Century Skills, New Assessments, New Accreditation system, STEM and EbD.

  22. Special Education – Code 30 • This fund is almost entirely either flow through or mandatory payments to the SPED COOP. • Our ending balances of 300 thousand dollars is to have our $277,000 payment and some emergency funds (last year we had to buy $50,000 in ADA compliant SPED vehicles) • SPED costs rose $10,000 this year already and is expected to rise an additional $10,000 during the school year.

  23. Vocational Education- Code 34 • The budget is to cover the operational costs of our CTE classes. Revenues do not cover expenses and thus the General Fund must make up the difference. • The increase in costs is covered by the increased in state aid due to the growing number of students taking our Career Readiness Courses- 2 & 4 year College bound, trade school, or direct to workforce.

  24. KPERS- Code 51 • This fund is total flow through. Allows the state to appear it is sending this money to schools, but actually we can’t touch it. It just goes straight out to retirees.

  25. Contingency Reserve- Code 53 • We remain at $150,000. We should be in the $560,000 range. The state recommends 1-2 months payroll or $560-1.2 million.

  26. Textbook- Code 55 • Textbook funds were spent down slightly after being built up in 2011-12. The $25,000 balance is being used to make curriculum rotation and e-book purchases.

  27. CODE 99- Proposed Budget • The mil rate is estimated to decrease 7.061 mils. This is due to reduction in LOB taxes due to increased state aid.

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