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

BUDGET DEVELOPMENT Most Important: Revenue

Limit

1

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

BUDGET DEVELOPMENT Most Important: Revenue

Limit

revlim14_blank current law Nov...

2

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 …

3

BUDGET DEVELOPMENTBuilding 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.

2013-14 Worksheet2012-13 Worksheet

4

BUDGET DEVELOPMENTBuilding 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.

2013-14 Worksheet2012-13 Worksheet

5

BUDGET DEVELOPMENTBuilding Base Revenue per Member

Base Revenue / Base Membership = Base

Revenue per MemberPre-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.

2013-14 Worksheet2013-14 Worksheet

6

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.

7

BUDGET DEVELOPMENTBuilding Current Revenue Limit (no

exemptions)2013-14 Worksheet

8

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 9

BUDGET DEVELOPMENT

Review of the Revenue Limit Calculation

There are two types of Exemptions:1. Recurring: permanent, they build your

revenue limit base for the subsequent year

2. Non-Recurring – one time, they do NOT build your base for the subsequent year

Know the Difference!

Base

Recurring

Current Year

Following Year

Base Base

Non-Recurring

Base

Current Year

Following Year

10

BUDGET DEVELOPMENT

Review of the Revenue Limit Calculation

Recurring Exemptions (Line 8 of Revenue Limit Worksheet)

1. Carry-over of prior-year unused authority (DPI calculates based on prior year under-levy)

2. Transfer of Service

3. Transfer of Territory

4. Federal Impact Aid Loss

5. Recurring Referenda (single or multi-year)

6. Prior Year Uncounted Open Enrollment Pupils (new in 2012-13)

11

BUDGET DEVELOPMENT

Review of the Revenue Limit Calculation

Non-Recurring Exemptions (Line 10 of Revenue Limit Worksheet)

1. Non-Recurring Referenda (single- or multi-year)

2. Declining Enrollment

3. Energy Efficiency Project

4. Refunded/Rescinded Taxes

5. 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.

12

BUDGET DEVELOPMENTExemptions 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 nowDPI calculates

Line 8A

Line 10+7B: all non-recurring exemptions10B – Declining

Enrollment is calculated by the spreadsheet based on membership data.

13

BUDGET DEVELOPMENTExemptions to the Revenue Limit

2013-14 Worksheet

Declining Enrollment Exemption (Line 10B)

14

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.

15

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)

16

BUDGET DEVELOPMENTGetting to Line 11

2013-14 Worksheet

17

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

BUDGET DEVELOPMENT Most Important: Revenue

Limit

18

Helping You Develop Your Budget

Most Important: Revenue Limit

Revenue Limit Calculation Budget PlanningPapers

Updated information for the revenue limit calculation will inform your district’s budget process

19