Agar - Blunt - Onida School District. Blunt Elementary. Sully Buttes JH/HS. Onida Elementary. Agar-Blunt-Onida School District 58-3 Community Meeting. District Budget & Finance “present and future”. Funding . School districts receive revenue in five operating Funds: General
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Sully Buttes JH/HS
District Budget & Finance
“present and future”
fuel, utilities, building maintenance and repairs, classroom supplies, workbooks, busing/transportation, property insurance, custodial, and extra-curricular activities.
Staff (salaries/benefits) = 82% GF expenditures;
(classified, certified, admin., board, coaches/advisors)
PSA(established $ amount/student)
StudentsX *$4,804.60 = NEED
295 X $4,804.60 = $1,417,357.00
+ 295 (SSA formula) X $646.25 = $190,643.00
‘State defined’ District Need= $1,608,000.00
District Need - Local Tax Effort = State Aid
Local Tax Effort: (property taxes) received in Nov. & May
= District Property Valuations multiplied by set GF tax rates (levy) in each property category. (AG, OO & OTHER)
The State determines the General Fund tax rates and assessed property valuations.
‘District Need’ is based on student enrollment and the ‘per student allocation (PSA), which is determined annually by the legislature. (3% or CPI – whichever is less)
Our District’s ‘past unique’ funding formula!
SDCL 13-13-6.1 & 13-13-7.1= (8 year formula)
Calculate need as if “two separate districts”(Agar & Sully Buttes)
(year 1) - example
2002-03ADM X PSA = District Need (-) Local Effort = State Aid
Agar 29 $3,889.00 $112,781.00 $568,442.00 = $ 0
S Buttes 328 $3,889.00 $1,275,592.00 $803,403.00 = $472,189.00
Local Effort + State Aid = $1,844,034.00 (otherwise only $16,528.00 state aid)
(additional State Aid)
Years 1 – 4 100% of ‘incentive funds’
Years 5 – 8 80% – 60% – 40% – 20%
SDCL 13-13-1.6 & 1.7Fiscal Year State Aid % of Benefit
Year 1 FY2003 $472,189 100%
Year 2 FY2004 $457,651 100%
Year 3 FY2005 $438,659 100%
Year 4 FY2006 $458,596 100%
Year 5 FY200 7 $382,961 80%
Year 6 FY2008 $308,715 60%
Year 7 FY2009 $203,126 40%
Year 8 FY2010 $105,000 20%
For year eight of the 13-13-1.7 reorganization ‘incentive’ statute, the ‘additional’ state aid generated by this formula (at 20%) will be around $100,000.00
The decision to reorganize districts resulted in this additional funding from state to provide opportunities for our students.
In fiscal year 2010-11, we move to the ‘regular’ state aid formula where because of our district’s total property valuation and student enrollment, we will receive a very small amount of state aid. The District could become ‘self-funded’, which means all state formula revenue will be through local dollars with no state aid.
(depends upon student #s, PSA, & total district valuation)
For taxes payable 2010:
Total = $2.30 (schools can levy up to $4.70)
(Payable 2009 was $1.45)
*This amount for every $1,000.00 valuation
Revenue: Local Property Taxes
Schools can tax @$3.00/$1,000.00 (1.60)
Equipment, vehicles, buses, computers, printers, buildings, land, major remodeling/renovation and construction, textbooks, instructional software.
Local Property Taxes
Schools can tax @ 0.30/$1000 (0.20)
Mandatory district match (6% total salaries) of South Dakota Retirement System (SDRS) for all employees.
Local Property Taxes
Schools can tax @ $1.40/$1000 (0.50)
Special Education staff salaries, benefits, supplies, travel, contracted or related services (speech, O.T., P.T.), and out-of-district placements.
Capital Outlay: $1.20 to $1.60 (^.40)
Using state flexibility option (certain GF expenses)
can only use for 3 years ($140,000 for FY 2009-10)
Special Education: $0.25 to $0.50 (^.25)
Fund Balance must be at sufficient operational level, including the potential for elevated yearly expenditures.
Pension: $0 to $0.20 (^.20)
Have been paying this expenditure out of General Fund for past eight years.
* Total school increase of 0.85/$1000 ($85.00/$100,000.00)
ENROLLMENT (K – 12)
Blunt Elem Onida Elem JH-HS Total K-12
2009-10 48 105 122 275
2010-11 44 98 124 266
2011-12 43 92 127 262
2012-13 41 91 118 250
2013-14 37 93 123 253
(Projections based upon ‘verified’ preschool-age children)
2009-10 $7,930.00 (projected)
Higher than state average because of our district’s operating structure and large geographical size.
For school year 2009-10; 64 of 156 districts (41%) have opted-out of General Fund Levy limitations.
Not just a small school problem; every district has unique structure/characteristics, revenue sources & operational costs.
Certified Staff FTE: 37.5 to 27.0
Classified Staff FTE: 22.0 to 15.3
2009-10 Reductions/cuts made FTE(positions)
Revenues = * $2,275,000.00
Expenditures = $2,200,000.00
* Includes special/other GF revenues that will be unavailable in 2010-11 or near future: $315,000.00
(reorganization incentive funds, ARRA stimulus grant, and Cap Outlay flex option
General Fund Balance ‘estimate’ on 6/30/2010: $900,000.00
District requires minimum $200,000/month for ‘cash flow’ purposes in GF, therefore must maintain ‘healthy’ fund balance/reserve in between tax receipt months (Nov. & May) in order to operate - pay monthly expenses/bills
We receive minimal amounts in ‘monthly’ state aid payments
@ $500,000.00, the District would receive only $250,000 for the 2010-11 fiscal School Year
Option: balancing effect with capital outlay by reducing this tax levy.
Do not yet know 2011 property valuations – receive notice in October of each year.
Additional tax increase from
2010 to 2011 for $100,000 property @ $500,000
(IF C.O. reduced by 0.60)
Ag Land $19.00
Homes $64.11 Businesses $205.00
* cannot guarantee this will remain constant over time as future facilities and other major Capital Outlay needs will be necessary.
If we close one elementary school, could we still see a significant loss in our total student numbers?
* Keep in mind, schools are funded (through state formula) by the total student population. If district were to lose more kids, we would then be required to make further staff and program reductions. (revenue = expenditures)
A majority of the General Fund budget are ‘people costs’.
Schools are the largest employers within our communities (economic effects).
Blue Ribbon school recipient at Blunt Elementary
Successful extra-curricular programs (sports and fine arts)
Have achieved Adequate Yearly Progress since implementation of NCLB requirements.
Have achieved both state and national accreditation status
Low property valuation
= low ‘local effort’ from local property taxes.
The revenue that cannot be raised locally for district ‘Need’
= remainder is State Aid
(sent to schools on a monthly proportioned basis)
High property valuation
= high ‘local effort’ from local property taxes.
The district receives small amount of State Aid.
*This district would receive a majority of operating revenue (local tax effort) only twice per year (May & Nov.)