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School Finance in Iowa. Overview. School District Finance Overview. Revenue Formula Categorical Miscellaneous Sources Budgets/Expenditures General Fund Physical Plant and Equipment Fund Management Fund Other Funds. School District Finance Components.

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school district finance overview
School District Finance Overview
  • Revenue
    • Formula
    • Categorical
    • Miscellaneous Sources
  • Budgets/Expenditures
    • General Fund
    • Physical Plant and Equipment Fund
    • Management Fund
    • Other Funds
school district finance components
School District Finance Components
  • Combined District Cost (formula) Regular, Guarantee, Supplementary Weighting, Special Education, AEAs
  • Instructional Support
  • Management Levy
  • Physical Plant & Equipment Levy
  • Public Education and Recreation Levy
  • Debt Service Levy
  • Local Option Sales & Services Tax
  • State/Federal Categoricals
school district finance components fy 2007
School District Finance Components (FY 2007)
  • Combined District Cost $3,138.7 mill.
  • Instructional Support $162.4 mill.
  • Management Levy $100.7 mill.
  • PPEL $112.9 mill.
  • PERL $1.9 mill.
  • Debt Service Levy $102.4 mill.
  • LOSST/SILO $290-$300 mill.
  • Categoricals $212.8 mill.
goals and principles
Equity in Expenditure

Property Tax Relief

Equalize Taxation

Uniform State Aid Allocation Formula

Predictable

Simple

Pupil Driven

Goals and Principles
goals and principles6
Provide for Local Discretion/Incentives

Establish Maximum Spending Control

One Funding Formula AEA + K-12

Provides Adequate Funding

Promotes High Achievement

Modifies the Impact of Community and Family Background on Achievement

Goals and Principles
school district finance components7
School District Finance Components
  • Combined District Cost (formula) Regular, Guarantee, Supplementary Weighting, Special Education, AEAs
  • Instructional Support
  • Management Levy
  • Physical Plant & Equipment Levy
  • Public Education and Recreation Levy
  • Debt Service Levy
  • Local Option Sales & Services Tax
  • State/Federal Categoricals
combined district cost
Combined District Cost

Regular Program Cost

+Weighted Enrollment Funding

+ Budget Guarantee (Budget Adjustment)

+ AEA Program Funding

+ SBRC Funding

Combined District Cost

regular program district cost
Regular Program District Cost

District Cost Per Pupil

X Number of Pupils

Regular Program District Cost

(Basic “pool” of money for the district)

slide10

District Cost Per Pupil – FY 06

$5,106 - Highest

$4,931 - Lowest

$175 - Range

District Cost Per Pupil Increases Each Year by a Per Pupil Amount (Per Pupil Allowable Growth)

allowable growth rate
Allowable Growth Rate
  • Recommended by the Governor
  • Established by the Legislature
slide12

AllowableGrowth Amount

Allowable Growth Rate xState Cost Per Pupil = Growth Per Pupil

for example

2006-2007

4% Allowable Growth Rate X

FY06 State Cost Per Pupil ($4,931)

=$197 Per Pupil

slide13

State Cost Per Pupil

FY 2007:

$4,931+$197= $5,128

FY06 State Cost + Allowable Growth

slide14

State Cost Per Pupil

$5,128

  • Used to Determine Allowable Growth Per Pupil for the Next Year
  • Used to Determine Minimum District Cost
basic funding
Basic Funding

Pupil Driven System (Pupils x Cost Per Pupil = Regular Program Budget)

  • Pupil Count
  • Pupils Weighted
    • Special Education
    • English Language Learners
    • Share Teachers/Pupils/Regional Academies
    • At-Risk Formula
    • Reorganization Incentives
  • Budget Adjustment
basic funding17
Basic Funding

Pupil Count

  • Pupils are counted for funding purposes by where they reside – not where they attend
    • Resident Pupils Counted as 1.0
    • Shared Time (Nonpublic counted FTE basis)
    • Count taken as of October 1
    • October 2006 used to determine 2007-08 funding
basic funding18
Basic Funding

Pupil Count

  • Basic enrollment
      • 451,884 Resident
        • Includes Dual Enrolled
        • Home School Assistance Students
      • 23,155 Open Enroll Out
      • 5,931 Tuition Out
basic funding19
Basic Funding

Pupil Count

  • Shared time (Nonpublic)
    • 332 FTE Students
  • Tuitioned to a Community College
    • 1680 FTE Students
  • Other Unique Situations
    • 122 FTE Students
weighted enrollment funding
Weighted Enrollment Funding

Pupil Driven System

  • Weights “Add” Pupils
  • Weights x District Cost Per Pupil

Adds Funding

weighted enrollment funding21
Weighted Enrollment Funding

Pupil Driven System

  • Weights
    • Provide Funding to Cover Additional Cost
      • Special Education
      • English Language Learners
      • Shared Teachers/Students/Regional Academies
      • At-Risk Students
    • Provide Incentives
      • Shared Teachers/Students/Regional Academies
      • Whole Grade Sharing/Reorganization
weighted enrollment funding22
Weighted Enrollment Funding
  • Special Education Weighting FY07
    • Level 1 weight = 0.72 (30,097)
    • Level 2 weight = 1.21 (15,550)
    • Level 3 weight = 2.74 (24,383)
    • Generates $361 Million
weighted enrollment funding24
Weighted Enrollment Funding
  • English Language Learners (ELL) FY07
    • Weight = .22
    • Student Eligible to be Counted for Fours Years (Effective with FY07: 3,089)
    • Total Additional Weight = 735.56
    • Generates $15.9 Million
slide25

Eligibility Increased from 3 years to 4 years in FY 2007

Weight Increased from 0.19 to 0.22 in FY 2004

weighted enrollment funding26
Weighted Enrollment Funding
  • Supplementary Weighting
    • Increase Opportunities
    • Cover Excess Cost of Opportunities and Sharing
    • Encourage Districts to Share Teachers/Students
    • Provide High School Students Access to Community College Credit Courses
    • Encourage Districts to Reorganize
weighted enrollment funding27
Weighted Enrollment Funding
  • Supplementary Weighting
    • Shared Students/Teachers
      • Weight 513.71
      • Generates $2.6 Million
    • Dual Credit (Community College and High School)
      • Weight 1,920.81
      • Generates $9.7 Million
weighted enrollment funding28
Weighted Enrollment Funding
  • Supplementary Weighting
    • Regional Academies
      • Weight 46.23
      • Generates $238,000
    • Reorganization Incentives
      • Weight 88.8
      • Generates $459,000
weighted enrollment funding29
Weighted Enrollment Funding
  • At Risk Supplementary Weighting
      • Weight 2,110.212
      • Generates $10.9 Million
weighted enrollment funding31
Weighted Enrollment Funding
  • Supplementary Weighting
      • Weight 4,793
      • Generates $40.6 Million
budget adjustment previously called budget guarantee
Budget Adjustment (Previously Called Budget Guarantee)

Regular Program Budget = Pupils x District Cost

Provides an adjustment in the Regular Program for districts with no or low growth in enrollments

  • Phase-out began in FY 2005
  • Scale Down Version
  • 101% Adjustment
budget adjustment fy06
Budget Adjustment FY06
  • Total B.A.$19.5 mill. (174 districts)
  • Scale Down(80% Based on FY04)

$16.9 mill. (133 districts)

  • 101% Adjustment(101% based on Previous Year)

$2.5 mill. (41 districts)

budget adjustment fy07
Budget Adjustment FY07
  • Total B.A.$13.8 mill. (149 districts)
  • Scale Down(70% Based on FY04)

$11.0 mill. (105 districts)

  • 101% Adjustment(101% Based on Previous Year)

$2.8 mill. (44 districts)

combined district cost36
Combined District Cost

Regular Program Cost

+ Budget Guarantee (Budget Adjustment)

+ Weighted Enrollment Funding

+ AEA Program Funding

+ SBRC Funding

Combined District Cost

aea program funding
AEA Program Funding

Combined District Cost

  • AEA Funding
    • Pupil Driven
    • Flows Through Local District
    • Special Education Support Services
    • Media Services
    • Educational Services
area education agency programs
Area Education Agency Programs

FY 2007:

  • Special Education Support Services

$109.9 Million (After State Aid Reduction)

State Aid and Property Tax

$15.5 Million State Aid Reduction Reduction

  • Educational Services

$24.1 Million

Property Tax

  • Media Services

$21.8 Million

Property Tax

combined district cost39
Combined District Cost

Regular Program Cost

+ Budget Guarantee (Budget Adjustment)

+ Weighted Enrollment Funding

+ AEA Program Funding

+ SBRC Funding

Combined District Cost

school budget review committee funding
School Budget Review Committee Funding

Five Member Committee

Authority to Grant Budget Increases

Modified Allowable Growth (Property Taxes)

Unique and Unusual Circumstances

“Manage” Formula

Special Education Weights

Cash Reserve

Negative Unspent Balances

Grants Budget Authority

school budget review committee funding41
School Budget Review Committee Funding

Total Modified Allowable Growth Granted in FY05

$160 million

revenue foundation formula
Revenue - Foundation Formula
  • Required Local Levy - Uniform Levy
  • State Aid
  • Additional Levy
state aid
State Aid
  • Increase Funding for Districts
  • “Fair” Method to Distribute State Aid
  • Provide Property Tax Relief
  • Equalize Effort
foundation formula
Foundation Formula

Additional Levy

Foundation Level

FY 07:

87.5% of State Cost ($5,128) = $4,487 Per Pupil

State Aid

Uniform Levy

$5.40 Per

$1000 Valuation

foundation formula45
Foundation Formula

Property Rich

District

Property Poor

District

Foundation Level

Foundation Level

Additional Levy

Additional Levy

State Aid

State Aid

Uniform Levy

$5.40

Uniform Levy

$5.40

slide46

Foundation Formula

Special Education

AEA Special

Regular Program

Instruction

Education Support

Additional Levy

Additional Levy

Additional Levy

87.50%

Foundation

79%

Level

Foundation

State Aid

Level

State Aid

State Aid

Uniform Levy

slide47

Foundation Formula

AEA Special

Special Education

Regular Program

Education Support

Instruction

Additional Levy

Additional Levy

Additional Levy

$299.8 million

$46.7 million

$23.1 million

State Aid

State Aid

State Aid

$1,633.3 million

$314.2 million

$98.5 million*

Uniform Levy

$569.7 million

*Does not include the state aid reduction of $15.5 million

revenue foundation formula48
Revenue - Foundation Formula
  • Uniform Levy
    • $569.7 million
  • State Aid
    • $2,048.4 million
  • Additional Levy
    • $520.4 million
school district finance overview49
School District Finance Overview
  • Revenue
    • General Fund
      • Formula
        • Required
        • Discretionary

Miscellaneous Income

State categoricals

Federal categoricals

discretionary
Discretionary
  • Instructional Support Program
    • Up to 10% of the Regular Program Budget
    • Board Approved for Five Years
    • Voter Approved for Ten Years

FY 2007:

    • 334 Districts $151.3 Million
    • State Aid - ($14.4 Million [Frozen])
    • Property Tax - ($64.7 Million)
    • Income Surtax- ($53.3 Million)
    • $39.9 Million Additional State Aid to “Fully” Fund
state categorical examples
State Categorical - Examples

FY 2007:

  • Educational Excellence (Phase I, II)$55.5 Million
  • Teacher Quality/Teacher Compensation$104.3 Million
  • Class Size Reduction/School Improvement$29.3 Million
federal categorical examples
Federal Categorical - Examples

FY 2006:

  • Title I - $58.8 Million
  • Title II - $20.5
  • IDEA - $26.9 Million
school district finance overview53
School District Finance Overview
  • Revenue
    • Management Fund
    • Physical Plant and Equipment Fund
    • Categorical
    • Miscellaneous Sources
management levy
Management Levy
  • Optional Levy

FY 2007:

  • Liability Insurance Premium Costs
  • Tort Judgements
  • Self Insurance - Health
  • Loss of Property
  • Early Retirement 361 Districts
  • $100.6 Million
physical plant and equipment levy
Physical Plant and Equipment Levy

FY 2007:

  • BoardApproved - Levy Rate of $0.33
    • 333 Districts
    • $34.5 Million (Property Tax)
  • VoterApproved - Levy Rate of $1.34
    • 246 Districts
    • $69.6 Million (Property Tax)
    • $8.8 Million (Income Surtax)
public education and recreational levy
Public Education and Recreational Levy

FY 2007:

  • Voter Approved
  • Levy Up to $0.135
  • Remains in Place Until Rescinded by the Voters
  • 18 Districts
  • $1.9 Million
bonds debt services
Bonds/Debt Services

FY 2007:

  • $102.4 Million
  • 210 School Districts
  • Property Taxes
local option sales services tax
Local Option Sales & Services Tax

FY 2006:

  • Number of Counties: 97
  • Number of Districts - Wholly/Partially: 357 (97.8%)
  • Number of Students: 436,528 (90.3%)
  • Estimated 2005-2006 Revenues: $286.0 Million
cash reserve
Cash Reserve
  • Levied for:
    • Cash Flow
    • State Aid, Property Tax Shortfall
    • Cash Behind Authority
  • $70.9 Million

237 Districts

Property Taxes

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