humboldt unified school district #22
DESCRIPTION
Humboldt Unified School District #22. Fundamentals of School Finance. PRESENTERS Mrs. Cynthia Windham—HUSD Finance Director Ms. Mariela Bean—Public Relations Director. WHY ARE WE HERE?. Presentation Objectives. Introduce concepts relative to: How does a district budget process begin? - PowerPoint PPT PresentationTRANSCRIPT
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Fundamentals of School Finance
Humboldt Unified School District #22
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PRESENTERS
Mrs. Cynthia Windham—HUSD Finance DirectorMs. Mariela Bean—Public Relations Director
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WHY ARE WE HERE?
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Presentation Objectives
Introduce concepts relative to:
• How does a district budget process begin?
• Once the budget is authorized, what are the limits placed by the State on
districts?
• What are the key elements of an Annual District Budget?
• What are traditional district expenses within the budget elements?
• What are the budget funding sources for Humboldt Unified School District?
• What about Bonds & Overrides?
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State Authorizes
Districts to Develop Budget
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Determining Budget LimitsBudget Covers One year-July 1- June 30
Number of Students in classrooms—based on average100-day count in previous fiscal year
# of Students (Group B) requiring special services—i.e. SPED, ELL, etc.
Miles students transported
State Determines Budget Limits
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%Change 4% 9% 8% 3% .002%
**Basic Student
Level2929.34 3038.51 3172.7 3267.22 3332.56
Total Revenue
$17,427,419.94 $19,792,015.51 $22,276,227.87 $23,737,264.85 $24,263,132.98
New Money
$1,057,371.33 $2,364,595.58 $2,484,212,36 $1,461,036.99 $525,868.13
5949.27
6513.72
7021.227265.28 7280.63
0
1000
2000
3000
4000
5000
6000
7000
8000
FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09
*Weighted student count = 1.158 for K-8 and 1.268 for Grades 9-12. Additional weights given for students with needs.
**BSL = Dollar amount of money District is funded per pupil.
Impact of Student Attendance(Weighted ADM – Group A Only)
*
****
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Transported . . . 3917 students within a 366 square-mile area
Annual Route Miles . . . 853,740 Corresponding Revenue . . . $2,435,413
Transportation Revenue
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KEY ELEMENTSOF A DISTRICT BUDGET
M&O
CAPITAL
BONDS
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HOW DOES EACH ELEMENT DIFFER?
M&O Spent on PEOPLE (salaries and benefits), supplies, services
Capital Spent on THINGS – examples include textbooks, technology, furniture, equipment, vehicles
BOND New SCHOOLS, improvement of existing BUILDINGS, buses
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--KEY BUDGET ELEMENT--MAINTENANCE & OPERATION
EXPENDITURES
2007-2008: $32,791,869
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07-08 HUSD MAINTENANCE & OPERATION EXPENDITURES
AFR: Annual Financial Report for FY 2007-2008
58.4%Classroom Expenses (includes Substitute Pay)
< 1%State Match-Food Svc. (Required)
1%Athletics / Co-Curricular
7.8%Transportation
12.8%Operations of
Plant
3.8%Central Services
5.4%SchoolAdmin
1.1%General Admin
2.2%Instructional Support
7.5%Student Support
2007-2008 Maintenance & Operating Expenditures$32,791,869
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BUDGET CATEGORY AMOUNT % OF TOTALClassroom Expenses: 58.4% -Teachers/Aides—Salaries & Benefits $18,216,030
-Substitutes $ 629,258 -Other (Supplies/Purchased Svc, etc.) $ 324,525
Student Support: 7.5% -Attendance / Social Work $ 383,837 -Guidance Counselors $ 368,626 -Nursing Services $ 510,375 -Psychologists $ 385,999 -Speech Pathologists $ 504,635 -Occupational / Physical Therapists $ 272,594 -Other Support Svcs $ 22,160
Instructional Services: 2.2% -Instruction / Curriculum Development $ 186,223 -Professional Development / Staff Training* $ 13,977 -Library $ 522,128
General Administration: 1.1% -Governing Board (includes Legal Svcs) $ 19,199 -District Office $ 329,735 *Majority of Professional Growth is Expended Through Prop 301 (CSF)
07-08 ITEMIZED M&O
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BUDGET CATEGORY (cont.) AMOUNT % OF TOTALSchool Administration: 5.4% -Principal’s Office $ 1,757,202
Central Services: 3.8% -Finance / Accounting Office $ 583,027 (Includes: Budgeting, Accounting, Payroll & Purchasing) -Human Resources / Benefits $ 195,754 -Technology Support $ 240,835 -Special Ed Support Svcs $ 145,215 -Other Central Services (Includes: Audit Svc., Adverting, Printing, etc) $ 74,099
Operations of Plant: 12.8% -Maintenance/Custodial/Grounds/Repairs $ 2,034,893 -Utilities (Electricity, Water, Natural Gas, Garbage)* $ 1,676,365 -Liability Insurance $ 397,503 - Security $ 79,191 Transportation** 7.8% -Bus Drivers, Mechanics, Other Staff $ 2,006,526 -Equipment Repair/Parts & Purch Svc $ 53,466 -Gasoline/Supplies $ 477,086 -Other Transportation Svcs $ 11,029 * Expenses for telephone utilities are charged to specific support function**Exceeded transportation revenue by $112,694 primarily due to increased fuel costs
07-08 ITEMIZED M&O-Cont.
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BUDGET CATEGORY (cont) AMOUNT % OF TOTAL
Athletics / Co-Curricular: $ 318,617 1% approx.
State Match – Food Service (Required) $ 51,758 < 1%
07-08 ITEMIZED M&O-Cont.
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Primary Budget Funding Sources
State Aid
Primary property taxes
Secondary property taxes
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Example: HUSD Funding Distribution
State Aid = 56%
Local Contribution = 44%
FY 2008-2009
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Grants Bonds Overrides Other—State tax credits, donations, etc.
ADDITIONAL FUNDING SOURCES
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Types
Title I; SPED; TITLE II A; Title IID; Title III (ELL); Reading First; Compensatory Education (ELL/FEP);Immigrant; SEI Reimbursement; Safe Schools, etc.
Key Elements
Very prescriptive and contain spending restrictions
CANNOT SUPPLANT (SUBSTITUTE) M&O & CAPITAL; CAN ONLY SUPPLEMENT!!!
GRANTS
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HUSD SUPPLEMENTAL POSITIONSPAID THROUGH GRANTS
(IF THESE POSITIONS WERE TO BE ELIMINATED, MONEY COULD NOT BE TRANSFERRED TO M&O)
GRANT SOURCE Instructional Specialists 2 FTE Title IIA Elementary Reading Coaches 2 FTE Reading First RF Data Coordinator 1.0 FTE Reading First Data Specialist 1.0 FTE Title IIA ELL Coach 5 hours @ weekTitle III ELL Data Specialist 6.5 hours @ week Title III Compensatory Ed Instructor .5 FTE Compensatory
Education Data Support .2 FTE Title IID Title I teachers and aides 28 FTEs Title I
GRANTS---Continued
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SPECIAL EDUCATION SERVICES ARE
REQUIRED BY LAW. THE ABSENCE OF GRANT FUNDING
FOR SPED POSITIONS WOULD REQUIRE ADDITIONAL DISTRICT M&O DOLLARS
SPECIAL ED GRANTS
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DEFINITION: Obligations sold upon approval of taxpayers during election
• Dollars expended MUST stay within the legal parameters of the bond, as presented to taxpayers
• CANNOT be used for District Maintenance and Operation expenses
BONDS
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DEFINITION: Voter authorization that allows a district to increase its budget up to 10% of its Revenue Control Limits. Special override election for academic achievement in grades K-3 may also be held, allowing an increase of up to 5% of a district’s RCL
CAN be used for M&O: i.e. teacher salaries, class size reduction, instructional programs, art, PE, etc.
PROS: Increased money for above purposes
CONS: Must go back to voters for renewalElection costs money to districtUnlikely to pass during difficult economic conditions
OVERRIDES
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OTHER SOURCES OF REVENUE
EXAMPLES Tax Credits Private Donations District Foundations Volunteer Human Resources Classroom Site Fund (301)—
Fluctuates based on state tax revenues
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OTHER SOURCES OF REVENUE
Authority for Funding Source for Funding
Funding Agency Outside Agencies / Entities
HUSD Voter Approved Secondary Tax
State of AZ State Aid Primary
Tax
GrantsTax Credits
Donations, other
(Capital)K-3 Override (5%)
M&O Override (10%)Capital Outlay Override
General Obligation Bonds
Soft CapitalUnrestricted Capital (CORL)
Maintenance and Operation
(w/o Overrides)
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LOOKING TOWARDSTHE FUTURE
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Times are Good When….
Enrollment grows Programs expand Salaries increase Districts have money to innovate
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Times are Challenging When ….
Enrollment declines-- HUSD projects its enrollment to decline by approx. 150 students in THE CURRENT YEAR--FY 2008-2009
Utilities go up & the revenue stream goes down-- The District utilities have risen 46 % since FY 04/05
-- District square footage has increased in FY 08/09 (More heating/cooling will be required)
State revenues are down-- The State of Arizona is projecting a revenue shortfall of
approximately $3 billion dollars for FY 2009-2010
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What We Know…..
Revenue/Expense Projections: FY 09/10--Loss of Revenue—ADM Decline $600,000 est @ 150 students
--Health Costs Will Rise $400,000 est @ 10%
--Utilities Will Increase &
Chg in Revenue Formula $100,000 minimum est
INITIAL ESTIMATED SHORTFALL TO HUSD $1.1 Million est
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What We Don’t Know…..
FOR 2009-10 Receive 2% from State? $485,000 + Sped/ELL ADM increase? $ +/- ? Teacher Experience Index? $ +/- ?(Last year the District received $394,801 in funding. This amount isrecalculated annually on a statewide average of all teachers in the State—therefore, may be adjusted plus or minus in FY 09/10)
FOR CURRENT YEAR Reduction of Current Budget $604,909(This is a State of Arizona Legislative Budget Limit issue, which mayaffect all districts in the State. Deadline for District notification is March 1, 2009)
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