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Lincoln County Schools Coffee Talk

Lincoln County Schools Coffee Talk. April 7, 2010. Why are we here?. To make the public aware of the current financial crisis facing the State of Missouri and ALL Lincoln County schools To present facts concerning the issues surrounding budgets and the economy

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Lincoln County Schools Coffee Talk

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  1. Lincoln County SchoolsCoffee Talk April 7, 2010

  2. Why are we here? • To make the public aware of the current financial crisis facing the State of Missouri and ALL Lincoln County schools • To present facts concerning the issues surrounding budgets and the economy • To clarify current information and future budget implications

  3. Impact of Budget Crisis

  4. Initial state projections • State information provided in February • Expect a 2% withholding from ALL schools • Elsberry $72,705 • Silex $29,071 • Troy $437,904 • Winfield $126,334

  5. Updated March projections • State added two more possible options • Reduce $65 per student • Revert to fiscal year 2006 funding levels for ALL schools

  6. Latest FY 2010 State Withholdings • Last week the senate voted (HB 2014) to protect hold harmless schools from the latest withholdings • Hold Harmless is a designation based on a state calculation that guarantees that no school will get less funding on a new formula than they did on the previous formula • This action means schools who are not Hold Harmless, which includes ALL Lincoln County Schools, will receive bigger state withholdings Withholdings Elsberry $156,659 Silex $59,874 Troy $1,258,358 Winfield $261,422

  7. Current Reality for Lincoln County Schools Schools that ARE NOT Hold Harmless spend an average of $8,364 per student. Lincoln County Schools spend… Troy $6,938 Elsberry $7,268 Winfield $7,464 Silex $7,584

  8. Impact of HB 2014 • The average school that is NOT Hold Harmless could lose $92 per student • The Lincoln County Schools could lose… Troy $205 per student Elsberry $193 per student Winfield $174 per student Silex $155 per student HOLD HARMLESS Schools stand to lose $0 per student

  9. Sources of Revenue

  10. State funding facts • State revenue is based on a thriving economy • Income and sales taxes • Fiscal Year 2010 (FY 10) • Net individual income tax = -13.9% • Net sales tax = - 6.6% • Net corporate income tax = - 44.2%

  11. State funding facts • State General Revenue (FY10) fund is down Missouri’s Net General Revenue= - 12.7%

  12. State funding facts • State budget = May 14 • All local decisions associated with state funding may be delayed or anticipated due to this date

  13. State funding facts All four districts stand to lose a total of $1.59 millionin fiscal year revenue

  14. State funding facts • FY 2011 an expected $300-500 million in revenue shortfall • FY 2011 – Only $218 million available in stimulus money to fund the shortfall

  15. Major Tax Changes That Impacted Individual Income Tax 15 James R. Moody & Associates

  16. Major Foregone Sales Tax To GR Due To Exemptions or Earmarks 16 James R. Moody & Associates

  17. Local funding facts • All of four districts have spent down reserves • All four districts will have limited ability to spend down reserves in the coming years • All four districts have government required expenditures • Special education, professional development, Title I, etc

  18. Local funding facts • All four districts have experienced a plateau or decrease in assessed value growth • Assessed value directly impacts the amount of local dollars available for schools • Assessed value (tax base) x tax rate = local dollars available for students

  19. Funding follies • Gambling money • 1986 – gambling proceeds are funneled to Missouri schools • Gambling proceeds were simply placed in the State General Revenue • Gambling proceeds replaced original funding, which was funneled to other state entities • Proposition A – Proceeds used as part of foundation formula • No gaming revenues have actually increased school funding

  20. Questions can be submitted to April Huddleston

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