school finance - tasbo
TRANSCRIPT
I. School District Total Revenue Sources (2011-2012 per State Report Card)
State Average
Your District
State 46.5% ?? % Local 39.2% ?? %
Federal 14.3% ?? %
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State Funding Where does it come from?
Sales Tax
Mixed Drink Tax
Cigarette Tax (beginning July 1, 2007)
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State Funding How is it determined?
Basic Education Program (BEP)
Formula that determines the funding level required for each school system to provide a common, basic level of service for all students.
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BEP Funding Formula History Adopted by the Legislature in 1992 as part of the Education Improvement Act (EIA)
Developed in response to Small Schools I lawsuit, where TN Supreme Court ruled State’s previous school funding formula was inequitable
“Funding formula, not a spending plan”
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BEP Funding Formula
Highlights
1. Comprehensive
2. Attempts to equalize state and local funding (fiscal capacity; cost differential factor)
3. Provides flexibility
4. Attempts to keep up with increased costs
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BEP Funding Formula Comprehensive Formula contains a number of components
(45 total) that the Legislature has deemed necessary for schools to succeed.
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BEP Funding Formula
Equalization
Formula determines actual state share of
education funding by each county’s relative
ability to pay or its
“FISCAL CAPACITY”
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FISCAL CAPACITY County’s “ability to pay” based on:
Tax base (sales, property) Per capita income
Resident tax burden
Students relative to total population
Expressed as an index measure, which is a proportion of the total fiscal capacity for all counties
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BEP Funding Formula Flexibility
School boards have broad flexibility
in determining how to allocate
state funds.
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BEP Funding Formula Cost evaluation
BEP component costs are recalculated
and updated for inflation
each year.
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BEP Funding Formula Inadequacies
Not enough teaching positions funded to meet class-size mandates as required by state law
High cost of educating English Learner (EL) students not recognized adequately
Teacher salaries still not adequately addressed
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BEP Funding Formula Inadequacies
Teacher insurance not adequately addressed
School nurse ratio inadequate
Professional development for teachers not included
Technology not adequately funded
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History of the BEP 2007 – BEP 2.0 passed Largest increase in state funding for education - $280 million Not fully implemented. Cost to fully implement – additional $146
million
BEP (Old Model) BEP 2.0 current BEP 2.0 full implementation
$36,515 Salary Unit Cost $40,447 Salary Unit Cost $40,000 Salary Unit Cost
100% TACIR 50% TACIR, 50% CBER 100% CBER
100% CDF 50% CDF Eliminate CDF
38.5% At-Risk Funding 100% At-Risk Funding 100% At-Risk Funding
1:45 EL, 1:450 Translators 1:30 EL, 1:300 Translators 1:20 EL, 1:200 Translators
65% State Share Instructional
70% State Share Instructional
75% State Share Instructional
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BEP Unit Costs
ADMs
CDF Fiscal
Capacity
Salaries, Retirement, Insurance
BEP – many inputs
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Instructional Classroom Non-Classroom Regular Education Vocational Education Special Education Elementary Guidance Secondary Guidance Elementary Art Elementary Music Elementary Physical Education Elementary Librarians (K-8) Secondary Librarians (9-12) ELL Instructors ELL Translators Principals Assistant Principals Elementary Assistant Principals Secondary System-wide Instructional Supervisors Special Education Supervisors Vocational Education Supervisors Special Education Assessment Personnel Social Workers Psychologists Staff Benefits and Insurance
K-12 At-risk Class Size Reduction Duty-free Lunch Textbooks Classroom Materials and Supplies Instructional Equipment Classroom Related Travel Vocational Center Transportation Technology Nurses Instructional Assistants Special Education Assistants Library Assistants Staff Benefits and Insurance Substitute Teachers Alternative schools Exit Exams
Superintendent System Secretarial Support Technology Coordinators School Secretaries Maintenance and Operations Custodians Non-instructional Equipment Pupil Transportation Staff Benefits and Insurance Capital Outlay
BEP Components (45) by Category
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For further information… Tennessee Basic Education Program: An
Analysis http://www.comptroller1.state.tn.us/orea/ See the Legislative Brief
State Board of Education http://www.tn.gov/sbe/bep.html BEP Blue Book – up to date data on BEP components
http://www.tn.gov/sbe/BEP%20Booklet%20FY12.pdf
Recommendations of BEP Review Committee http://www.tn.gov.sbe/BEP%20November%201%202011%20Report%20-%20Final%20Draft.pdf
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Local Funding
Where does it come from?
Property Taxes
•Assessed property values (Assessor of Property)
•Tax rate allocated for Schools
•Collection rate
•Value of penny on property tax rate
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Local Funding
Where does it come from?
Local Option Sales Tax
Half of revenue must be appropriated to education
Other Sources (wheel tax, etc.)
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Local Funding
Maintenance of Effort (TCA 49-2-203; TCA 49-3-314)
No local government can reduce its budgeted amount of local revenue for schools unless there is a decrease in student enrollment.
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Local Funding
Fund Balance (TCA 49-3-352(c))
Any accumulated fund balance in excess of 3% of budgeted operating expenditures may be budgeted and expended for any purpose, but must be recommended by the Board of Education.
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Planning
Strategic Plan • District goals &
objectives (TCSPP)
• Individual schools’ SIP
Revenue Plan
Expenditure Plan
BUDGET TRIANGLE
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Required Additional Expenditures
Labor (salaries & benefits) = over 80% of operating budget
•Health insurance
•Pension
•Salary steps
•Required state teacher raise
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Required Additional Expenditures
Opening New Schools •Staff
•Utilities
•Materials & Equipment
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Required Additional Expenditures Inflation
•Fuel
•Utilities
•Materials & Supplies
•Multi-Year Contracts
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Calendar Develop/review goals, objectives
and needs assessment (Jan, Feb)
Develop draft budget, allow public input (March, April) – post on district website
Make any necessary revisions (May)
Vote on revised budget, present to governing body (June, July)
Send final certified copy of budget to State by August 1
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Statistical Data District data (size of operation)
• # Employees (certificated / classified)
• # Years experience (25 yrs / 30 yrs)
• # Buildings (square footage / acreage / number of portables)
• # Buses (regular ed / special ed)
• # Students (ADM / ADA)
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Statistical Data
State Report Card
• District
• Individual schools
State Data
• Expenditure per pupil calculation
• Other data (Annual Statistical Report)
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