Ask Magic 8 Ball . . .

October 2015 Five Year Forecast Submission

Are we off the Guarantee?Yes

Will we receive an increase in funding?Yes

Is the increase sustainable?Stay tuned…

2nd Biennium of SFPR Formula Funding

• Funding for FY 2016 and FY 2017• The main components of the formula are:

– Core Opportunity Aid– Targeted Assistance Aid– K-3 Literacy– Economic Disadvantaged– Transportation– Special Education– Capacity Aid

Core Opportunity Aid

• $5,900 per pupil in FY 2016• Increased from $5,800 in FY 2015• $6,000 per pupil in FY 2015• The per pupil amount is multiplied by formula

ADM (resident students) then multiplied by the State Share Index

• $5,900 X 793 X .6558

State Share Index

• Compares the districts 3 year average per pupil valuation to the statewide 3 year average per pupil valuation (TY 12,13,14)

• Next it compares the districts average Ohio Adjusted Gross Income to the State’s Median Income (TY 13) ($31,483/$32,873)

• The difference between the two above calculations is our valuation index. This is known as the AVI.

• Our AVI falls between .9 and .35 and our State Share Index is .6586

• Our state share index decreased by 4.4%. Our local income is increasing at a higher rate than the state.

Core Opportunity Aid (Continued)

• Because our state share index decreased the district will receive approximately $150,000 LESS on this line item than in FY 15.

Targeted Assistance

• These funds were designed to give districts with low valuations the equivalent of 6 mills worth of funding at the 490th wealth district valuation

• Calculations are determined for the following:– District Local Wealth Per Pupil– Statewide Local Wealth Per Pupil– 490th Lowest Wealth Per Pupil

Target Assistance (Continued)

• Local District Wealth Per Pupil is calculated as follows:

.50 X districts 3 year avg per pupil valuation

+.50 X districts 3 year avg adjusted gross income

• Our Local Wealth Per Pupil is $105,342.14• Statewide Local Wealth Per Pupil is $157,383.96• 490th Lowest Wealth Per Pupil is $196,013.57

Targeted Assistance (Continued)

• The Statewide Wealth Index is divided by our Local District Wealth Index

• This becomes the Targeted Assistance Wealth Index– $157,583.96/$105,342.14 = 1.495

• The difference between the 490th Wealth District Per Pupil and our District Local Wealth Per Pupil is calculated– $196,013.57 – $105,342.14 = $105,342.14

• This difference multiplied by 6 mills, multiplied by our Targeted Assistance Wealth Index, multiplied by our net formula ADM is our Targeted Assistance Aid– $105,342.14(.006)(1.495)(762)

Target Assistance (Continued)

• Net Formula ADM is adjusted for any students in e-schools or in one of the four state funded scholarship programs

• Targeted Assistance is then adjusted if your agricultural value is greater than 10%; ours is 35.6%

• Greater emphasis and additional funding was given to districts with high ag values by applying a % of the opportunity aide per student

• Eastern will receive approximately $210,000 in additional funding

Capacity Aid

• New line item for school funding• Provides supplemental funds to districts that raise less

than the median amount of revenue from 1 mill of local property taxes

• Eastern Local 3 Year Avg - $74,752.37• State 3 year Avg Val. Median - $222, 870.08• Applies a “capacity ratio” and a 2.75 multiplier in FY 16

and 3.5 in FY 17 to a formula and applies this amount to our ADM

• Eastern will receive approximately $910,000 in additional funds

Transportation Aid

• New biennium budget made changes in the transportation formula adjusts for:– District square mileage (ELSD = 117)– Low density factor– Bus supplemental funding

• Our transportation funding is estimated to increase by approximately $60,000

What Does This Mean for Eastern Local???

– Let’s review the last five years:• FY 11 and FY 12 – the State used ARRA-Stimulus

funding to keep our funding at the FY 10 level• FY 13 we were flat funded• FY 14 we were on the guarantee to received as much

funding as we did in FY13. The new SFPR calculated us to receive $355,000 less.

• FY 15 we were on the guarantee again to receive as much funding as we did in FY13. The SFPR calculated us to receive $252,000 less.

What does this mean (Continued)

• Eastern Local will received approximately $1 million in additional state funding

• If Governor Kasich’s budget proposal would have passed we would have received less funding than in FY13, because he was phasing out the guarantee

• Past historical school funding formulas:– Equity Aid from FY92 to FY03– Parity Aid from FY04 to FY09– Each was phased down throughout the years

Where will school funding be in FY18?

It is difficult to wrap your head around how a school district could be so buried in the guarantee one year and the next receive a $1 million dollar increase. FY18 and FY19 will be a new story.

FundedFiscal Year ADM Grade SY 15-16 SY 16-17 SY 17-18 SY 18-19 SY 19-20

2001 791.71 K 67 56 62 54 602002 791.1 1 59 67 56 62 542003 795.3 2 49 59 67 56 622004 806.47 3 65 49 59 67 562005 776.52 4 51 65 49 59 672006 790.9 5 50 51 65 49 592007 787.29 6 72 50 51 65 492008 818.67 7 64 72 50 51 652009 815.63 8 74 64 72 50 512010 866.63 9 77 74 64 72 502011 810.73 10 67 77 74 64 722012 803.05 11 50 67 77 74 642013 803.05 12 48 50 67 77 742014 792.642015 786.632016 7932017 801 793 801 813 800 7832018 8132019 800 Funded ADM 793 801 813 800 7832020 783

Source: IC Enrollment by Grade, Race & Gender; Open Enrollment FilesSource: State Funding Statements

= Projected Funded ADM

Note:

ADM

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Grade Level

SY 2016Projected ADM

SY 2016 Projected ADM

IC Open Open Enrollment Enrollment Enrollment Community Resident by Grade In Out School Enrollment

K 74 16 9 0 671 63 9 4 1 592 49 8 7 1 493 72 13 5 1 654 52 12 9 2 515 55 11 6 0 506 76 10 4 2 727 62 9 9 2 648 69 10 7 8 749 79 7 4 1 77

10 69 9 5 2 6711 48 5 5 2 5012 39 3 11 1 48

807 122 85 23 793

Grade SY 15-16 SY 16-17 SY 17-18 SY 18-19 SY 19-20 Grade SY 15-16 SY 16-17 SY 17-18 SY 18-19 SY 19-20

K 9 6 7 6 5 K 16 6 5 7 61 4 9 6 7 6 1 9 16 6 5 72 7 4 9 6 7 2 8 9 16 6 53 5 7 4 9 6 3 13 8 9 16 64 9 5 7 4 9 4 12 13 8 9 165 6 9 5 7 4 5 11 12 13 8 96 4 6 9 5 7 6 10 11 12 13 87 9 4 6 9 5 7 9 10 11 12 138 7 9 4 6 9 8 10 9 10 11 129 4 7 9 4 6 9 7 10 9 10 1110 5 4 7 9 4 10 9 7 10 9 1011 5 5 4 7 9 11 5 9 7 10 912 11 5 5 4 7 12 3 5 9 7 10

85 80 82 83 84 122 125 125 123 122

74 65 65 66 114 116 118 115

Net 37 45 43 40 38

OE In 719,800$ 737,500$ 737,500$ 725,700$ 719,800$ OE Out 501,500$ 472,000$ 483,800$ 489,700$ 495,600$

Net 218,300$ 265,500$ 253,700$ 236,000$ 224,200$

Per Pupil OE Amount 5,900.00$

Open Enrollment Out Open Enrollment In

FY 15 Est.

What is a Forecast?

• ORC 5705.391 and OAC 3301-92-04• Submitted to ODE by October 31 and May 31 each year

– http://fyf.oecn.k12.oh.us/

• Contains three years of historical information and five years of projections

• Projected years are only estimates and will change depending on state and local economics, political environment, and the needs of the district.

• Accompanied by notes to explain the rationale behind the numbers.

Revenue:• Most sources remain constant with the exception of Unrestricted Grants In Aid• All Other Operating Revenue changes as a result of Open Enrollment In Revenue

Disbursements:• FY16 Salaries and Benefits are based on current negotiated agreements and

known insurance costs• FY17 Salaries include a 3% raise along with step increases. FY18 Salaries

include a 2% raise• FY17 and FY18 health insurance premiums were projected to increase 10%

• We will hit the ACA Cadillac Tax in FY 18 (not in projected numbers)• Purchased Services increases for inflationary increases and OE Out Costs• Supplies and Material include upgrades to texts and instructional supplies• Capital Outlay – buses, tech equip, parking lot repairs

Total Other Financing Uses• Includes a Transfer Out to the 034 – Capital Improvements and Maintenance

Fund for roof replacement in the amount of $200,000 in FY16 and FY17• This will place approximately $650,000 in this fund for roof replacements,

pending no major equipment of facility malfunctions.

The Future

• ACA, Cadillac Tax, and other penalties and reporting• Facility Maintenance and Capital Equipment– now is the time

to take care of items that we couldn’t afford to address• Negotiations• FY 18 and beyond:

– Political Leadership and Environment– Economy