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BUDGET DEVELOPMENT Most Important: Revenue Limit

BUDGET DEVELOPMENT Most Important: Revenue Limit. The 13-14 Revenue Limit is a key piece of your budgeting as it comprises: 75-90% of a district’s total resources 85-95% of General Fund revenues We’ll review the steps of building your revenue limit and show an example. Let’s take a look ….

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BUDGET DEVELOPMENT Most Important: Revenue Limit

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  1. BUDGET DEVELOPMENTMost Important: Revenue Limit • The 13-14 Revenue Limit is a key piece of your budgeting as it comprises: • 75-90% of a district’s total resources • 85-95% of General Fund revenues • We’ll review the steps of building your revenue limit and show an example. Let’s take a look …. (open 2013-14 blank worksheet online if you wish) http://sfs.dpi.wi.gov/sfs_revlimworksheet

  2. BUDGET DEVELOPMENT Most Important: Revenue Limit Here is the blank executable 2013-14 worksheet: ** You will also need data from your 2012-13 Revenue Limit Worksheet – in your packet of handouts

  3. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation Line 1: builds the “Base Revenue” using data from the 2012-13 worksheet Line 2: builds the “Base Membership”: using data from the 2012-13 worksheet (prior three-years rolling average membership) Line 3: “Base Revenue per Member” – base to which a per pupil adjustment is added. Example …

  4. BUDGET DEVELOPMENT Building Base Revenue per Member 2012-13 Worksheet 2013-14 Worksheet Pre-populated worksheets will include this data, but you can build it now using the 12-13 worksheet and blank 13-14 worksheet on the DPI website.

  5. BUDGET DEVELOPMENT Building Base Revenue per Member 2012-13 Worksheet 2013-14 Worksheet Pre-populated worksheets will include this data, but you can build it now using the 12-13 worksheet and blank 13-14 worksheet on the DPI website.

  6. BUDGET DEVELOPMENT Building Base Revenue per Member 2013-14 Worksheet 2013-14 Worksheet Base Revenue / Base Membership = Base Revenue per Member Pre-populated worksheets will include this data, but you can build it now using the 12-13 worksheet and blank 13-14 worksheet on the DPI website.

  7. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation • Line 4: (pre-filled) Per Pupil Adjustment, Low Revenue Ceiling Adjustment & CCDEB Adjustment (if applicable*) • Line 5: 2013-14 maximum revenue per member (prior to exemptions) • Line 6: “Current Membership” – using estimates for September 2013 pupil count • Line 7: 2013-14 Revenue Limit prior to exemptions • Line 7A = Line 5 x Line 6 • Line 7B, “Base Hold Harmless”, if Line 1 < Line 7A • *Very few districts are affected by the CCDEB Adjustment; call a Consultant on the SFS Team if your district is served by a CCDEB.

  8. BUDGET DEVELOPMENT Building Current Revenue Limit (no exemptions) 2013-14 Worksheet

  9. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation • At this point (Line 7), you have your estimated 2013-14 Maximum Revenue Limit prior to any exemptions • Exemptions to the revenue limit allow your district to levy additional amounts above the amount generated by membership changes and the per pupil adjustment

  10. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation There are two types of Exemptions: • Recurring: permanent, they build your revenue limit base for the subsequent year • Non-Recurring – one time, they do NOT build your base for the subsequent year • Know the Difference! Current Year Following Year Current Year Following Year Recurring Base Non-Recurring Base Base Base

  11. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation • Recurring Exemptions(Line 8 of Revenue Limit Worksheet) • Carry-over of prior-year unused authority (DPI calculates based on prior year under-levy) • Transfer of Service • Transfer of Territory • Federal Impact Aid Loss • Recurring Referenda (single or multi-year) • Prior Year Uncounted Open Enrollment Pupils (new in 2012-13)

  12. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation • Non-Recurring Exemptions(Line 10 of Revenue Limit Worksheet) • Non-Recurring Referenda (single- or multi-year) • Declining Enrollment • Energy Efficiency Project • Refunded/Rescinded Taxes • Base Hold Harmless (Line 7B)* • *While most districts did not received a Base Hold Harmless exemption for 2012-13 due to changes made by the Legislature in the 2011-13 State Budget, the calculation of this non-recurring exemption is scheduled to return to its original mechanism beginning in 2013-14.

  13. BUDGET DEVELOPMENT Exemptions to the Revenue Limit 2013-14 Worksheet • Line 8: all recurring exemptions – data will pre-fill in the pre-populated versions (as data is reported to DPI) but you can put in estimates now • DPI calculates Line 8A • Line 10+7B: all non-recurring exemptions • 10B – Declining Enrollment is calculated by the spreadsheet based on membership data.

  14. BUDGET DEVELOPMENT Exemptions to the Revenue Limit 2013-14 Worksheet Declining Enrollment Exemption (Line 10B)

  15. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation • Very important to know the difference between recurring and non-recurring! It has consequences for subsequent year’s revenue limit • DPI encourages districts to consult with legal council when putting together wording for the referendum item on the ballot.

  16. BUDGET DEVELOPMENT • Review of the Revenue Limit Calculation • At this point we’re at Line 11 – Total Maximum Controlled Revenues with all Exemptions • This is the “Revenue Limit” figure you’ll need as you build your district budget • Beyond Line 11, the Revenue Limit Worksheet is designed to help you: • Determine the mix of State General Aid and Controlled Levy under the Revenue Limit (and Computer Aid – offset to Fund 10) • Fill in other, non-controlled levies (if applicable) and calculate the district’s full levy ( and levy rate)

  17. BUDGET DEVELOPMENT Getting to Line 11 2013-14 Worksheet

  18. BUDGET DEVELOPMENTMost Important: Revenue Limit We stop at this point in the Revenue Limit Calculation: • You can use the worksheet to estimate Line 11 for your district for budget purposes • You can enter different General Aid amounts to see the impact on the allowable controlled levy (Line 13 of the worksheet), but … • First official Aid estimate from DPI – July 1st, 2013

  19. Helping You Develop Your Budget Most Important: Revenue Limit Budget Planning Papers Revenue Limit Calculation Updated information for the revenue limit calculation will inform your district’s budget process

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