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Aiken County Aiken County Public SchoolsPublic Schools
Budget 101Budget 101
2
PRESENTATION INCLUDES:PRESENTATION INCLUDES:
Budget calendarBudget calendar General informationGeneral information Funds Funds Budget typesBudget types Revenue and expendituresRevenue and expenditures In$iteIn$ite Fund balanceFund balance Tax anticipation notes Tax anticipation notes Student projectionsStudent projections Staffing ratios Staffing ratios
3
PRESENTATION INCLUDES:PRESENTATION INCLUDES:
Budget transfersBudget transfers Budget recapBudget recap FlexibilityFlexibility Fund 1Fund 1 8% debt limit8% debt limit 2014-15 recap2014-15 recap District website District website CAFRCAFR Questions and commentsQuestions and comments
4
2014-15 BUDGET MEETINGS2014-15 BUDGET MEETINGS
January 20January 20 Budget workshopBudget workshop February 17February 17 Budget workshopBudget workshop March 17March 17 Budget workshopBudget workshop April 21April 21 Preliminary budgetPreliminary budget May 12May 12 Tentative budgetTentative budget June 2June 2 Special called – budget inputSpecial called – budget input June 9June 9 Public hearings – budget/millagePublic hearings – budget/millage June 23June 23 Final budgetFinal budget
5
GENERAL INFORMATIONGENERAL INFORMATION
District spans 1,178 square milesDistrict spans 1,178 square miles Includes slight portion of Saluda CountyIncludes slight portion of Saluda County Approximately size of Rhode IslandApproximately size of Rhode Island 5 attendance areas5 attendance areas 66thth largest district in the State in terms of average daily largest district in the State in terms of average daily
membership and weighted pupil units (WPUs) for grades membership and weighted pupil units (WPUs) for grades K5-12 K5-12
Approximately 3,200 employeesApproximately 3,200 employees 22ndnd largest employer in Aiken County largest employer in Aiken County
6
GENERAL INFORMATIONGENERAL INFORMATION
District operatesDistrict operates 18 elementary schools18 elementary schools 1 elementary/middle schools1 elementary/middle schools 9 middle schools9 middle schools 1 middle/high1 middle/high 6 high schools6 high schools Career and technology centerCareer and technology center 2 learning centers and parenting center2 learning centers and parenting center
District sponsors three charter schoolsDistrict sponsors three charter schools
7
GENERAL INFORMATIONGENERAL INFORMATION
Schools are segregated by level for administrative Schools are segregated by level for administrative purposespurposes Elementary Elementary Middle Middle High High
Elementary schools assigned to one of 2 academic Elementary schools assigned to one of 2 academic officers officers
Middle schools and high schools each assigned to an Middle schools and high schools each assigned to an academic officeracademic officer
8
GENERAL INFORMATIONGENERAL INFORMATION
Student enrollment by level 2013-14 135Student enrollment by level 2013-14 135 thth day (grades day (grades K5-12)K5-12) Elementary Elementary 11,17511,175 MiddleMiddle 5,592 5,592 HighHigh 6,697 6,697 CharterCharter 320 320 TotalTotal 23,78423,784
9
GENERAL INFORMATIONGENERAL INFORMATION
Schools often referred to by geographic areaSchools often referred to by geographic area Area 1Area 1 Aiken areaAiken area Area 2Area 2 North Augusta areaNorth Augusta area Area 3Area 3 Graniteville, Warrenville, Graniteville, Warrenville,
Clearwater, Clearwater, Gloverville areasGloverville areas Area 4Area 4 Wagener, Salley, Ridge Spring, Wagener, Salley, Ridge Spring,
Monetta areasMonetta areas Area 5Area 5 New Ellenton, Jackson, Beech New Ellenton, Jackson, Beech
Island Island areasareas
10
GENERAL INFORMATIONGENERAL INFORMATION
Student enrollment by area 2013-14 135Student enrollment by area 2013-14 135 thth day (grades day (grades K5-12)K5-12) Area 1Area 1 9,264 9,264 Area 2Area 2 5,454 5,454 Area 3Area 3 4,708 4,708 Area 4Area 4 1,825 1,825 Area 5Area 5 2,213 2,213 Charter SchoolsCharter Schools 320 320
11
GENERAL INFORMATIONGENERAL INFORMATION
Enrollment – last 10 years at 135Enrollment – last 10 years at 135thth day day
12
FUNDSFUNDS
What is a fund?What is a fund? A separate set of accounting recordsA separate set of accounting records Transactions categorized based on the intended Transactions categorized based on the intended
purpose or use of resourcespurpose or use of resources Governmental accountingGovernmental accounting
District uses variety of fundsDistrict uses variety of funds SDE Funding Manual serves as guideSDE Funding Manual serves as guide New funds may be added, old funds maybe removedNew funds may be added, old funds maybe removed
13
FUNDSFUNDS
General – “Fund 1”General – “Fund 1” Largest of all fundsLargest of all funds Day to day operationsDay to day operations Activity not recorded in another fund is hereActivity not recorded in another fund is here Revenues – operating property taxes, Education Finance Revenues – operating property taxes, Education Finance
Act (EFA) allocation, etc.Act (EFA) allocation, etc. Expenditures – salaries, payroll taxes, supplies, etc.Expenditures – salaries, payroll taxes, supplies, etc. Most of focus during budget processMost of focus during budget process No subfundsNo subfunds
14
FUNDSFUNDS
Special Revenue (Funds 2, 8 and 9)Special Revenue (Funds 2, 8 and 9) Used to account for federal, state (non-EIA), and Used to account for federal, state (non-EIA), and
local resources designated for special purposeslocal resources designated for special purposes Examples of subfundsExamples of subfunds
Title ITitle I IDEAIDEA LotteryLottery Local donations Local donations
15
FUNDSFUNDS
Education Improvement Act (Fund 3)Education Improvement Act (Fund 3) Also a special revenue-type fundAlso a special revenue-type fund Programs funded with statewide 1% sales taxPrograms funded with statewide 1% sales tax Examples of subfundsExamples of subfunds
At-risk student learningAt-risk student learning Teacher supply checksTeacher supply checks Aid to districtsAid to districts CDEP (full-day 4K)CDEP (full-day 4K)
16
FUNDSFUNDS
Debt Service (Fund 4)Debt Service (Fund 4) Used to account for repayment of bond principal and Used to account for repayment of bond principal and
collection of property taxes used to repay that debtcollection of property taxes used to repay that debt
School Building (Fund 5)School Building (Fund 5) Used to account for projects approved as part of the Used to account for projects approved as part of the
Five Year Facilities PlansFive Year Facilities Plans Subfunds for various projectsSubfunds for various projects
17
FUNDSFUNDS
School Food Service (Fund 6)School Food Service (Fund 6) Used to account for SFS operationsUsed to account for SFS operations Dollars cannot supplement District operationsDollars cannot supplement District operations
Pupil Activity (Fund 7)Pupil Activity (Fund 7) Used to account for school-generated revenueUsed to account for school-generated revenue Transactions at school level, not District levelTransactions at school level, not District level Not included in approved budgetNot included in approved budget
18
BUDGET TYPESBUDGET TYPES
Classified as operating or non-operatingClassified as operating or non-operating
Operating budgets account for day-to-day operationsOperating budgets account for day-to-day operations General, Special Revenue, EIA, School Food ServiceGeneral, Special Revenue, EIA, School Food Service
Non-operating budgets are associated with activities Non-operating budgets are associated with activities that are long-term in scopethat are long-term in scope Debt Service, School Building Debt Service, School Building
19
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Three sources for revenueThree sources for revenue
51%
9%40%
Federal
State
Local
20
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Examples of revenue by sourceExamples of revenue by source Local – property taxes, bond proceeds, interest Local – property taxes, bond proceeds, interest
earnings, donationsearnings, donations State – EFA allocation, EIA allocations, lottery funds, State – EFA allocation, EIA allocations, lottery funds,
student health & fitness allocationsstudent health & fitness allocations Federal – IDEA, Title I, Impact AidFederal – IDEA, Title I, Impact Aid
Federal revenue is lower in percentage and amount Federal revenue is lower in percentage and amount compared to recent years (loss of Stimulus, reductions) compared to recent years (loss of Stimulus, reductions)
21
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Tax rates – Aiken vs. State average (2012-13 data)Tax rates – Aiken vs. State average (2012-13 data)
176.9
31.5
167.3
135.8
214.8
38.5
0
25
50
75
100
125
150
175
200
225
OperatingMillage
Debt ServiceMillage
Total Millage
Milla
ge R
ate
AikenState Average
22
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
2012-13 tax rates are most recent posted by SDE2012-13 tax rates are most recent posted by SDE 81 school districts81 school districts 64 school districts had higher operating millage than 64 school districts had higher operating millage than
AikenAiken 66 school districts had higher overall millage than 66 school districts had higher overall millage than
AikenAiken Year 2013-14 information not yet availableYear 2013-14 information not yet available While the value of a mill varies by district, the per-mill While the value of a mill varies by district, the per-mill
cost to the taxpayer is the same.cost to the taxpayer is the same.
23
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Expenditures often categorized as followsExpenditures often categorized as follows By function By function
The purpose of the expendituresThe purpose of the expenditures Broad categoriesBroad categories
By objectBy object Specific service or good obtainedSpecific service or good obtained
Function/object for operating expenditures – In$ite Function/object for operating expenditures – In$ite categoriescategories
Function/object for total expendituresFunction/object for total expenditures
24
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Operating expenditures by functionOperating expenditures by function
1%1%
6%
12% 62%18%
Instruction
InstructionalSupport
Operations
SchoolLeadership
ProgramManagement
DistrictLeadership
25
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Operating expenditures by objectOperating expenditures by object
1%9%
21%65%
4%
Salaries
EmployeeBenefits
PurchasedServices
Supplies &Materials
Capital Outlay(not funds 4/5)
26
REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES
Total salaries by functionTotal salaries by function
1%1%
7%
12%67%
12%
Instruction
InstructionalSupport
Operations
SchoolLeadership
ProgramManagement
DistrictLeadership
27
IN$ITEIN$ITE
In$ite is used by the SDEIn$ite is used by the SDE Provides a district’s breakdown of expenditures and allows for Provides a district’s breakdown of expenditures and allows for
apples to apples comparison to other districtsapples to apples comparison to other districts Categories include sub-categoriesCategories include sub-categories
InstructionInstruction Instructional supportInstructional support OperationsOperations Other commitmentsOther commitments LeadershipLeadership
28
IN$ITEIN$ITE
Based on most recent information (FY 2013)Based on most recent information (FY 2013)
““Operating only” does not include debt service/capital Operating only” does not include debt service/capital outlayoutlay
Aiken’s annual spending would be $21 million higher if Aiken’s annual spending would be $21 million higher if it were on par with districts like oursit were on par with districts like ours
Per Pupil Per Pupil SpendingSpending AikenAiken
State State
AverageAverage
Like Districts’ Like Districts’
AverageAverage
Operating onlyOperating only $ 8,241$ 8,241 $ 9,415$ 9,415 $ 9,114$ 9,114
29
FUND BALANCEFUND BALANCE
What is fund balance?What is fund balance? Assets minus liabilities; not equal to Assets minus liabilities; not equal to cash on handcash on hand Net inflows less net outflows over timeNet inflows less net outflows over time $26 million at June 30, 2014$26 million at June 30, 2014
Why it is important – Why it is important – ““Rainy day” or emergency fundsRainy day” or emergency funds Demonstrates financial stabilityDemonstrates financial stability Can reduce or eliminate short-term borrowings (TANs)Can reduce or eliminate short-term borrowings (TANs) Fund balance policy adopted by the BoardFund balance policy adopted by the Board
30
TAX ANTICIPATION NOTESTAX ANTICIPATION NOTES
What are TANs?What are TANs? Short term financingShort term financing Repaid with interest before year endRepaid with interest before year end
Why issue TANs?Why issue TANs? Outflows consistent throughout the year, inflows are notOutflows consistent throughout the year, inflows are not Most property tax revenue received mid-yearMost property tax revenue received mid-year Cannot operate on cash basis at current fund balance Cannot operate on cash basis at current fund balance
levellevel
31
TAX ANTICIPATION NOTESTAX ANTICIPATION NOTES
Why does Aiken County Schools issue TANs?Why does Aiken County Schools issue TANs?
(12)(8)(4)048
12162024
BE
G
JUL
AU
G
SEP
OC
T
NO
V
DE
C
JAN
FE
B
MA
R
APR
MA
Y
JUN
Month
Million
s ($
)
Fund Balance + Cash Flows
32
STUDENT PROJECTIONSSTUDENT PROJECTIONS
One of first tasks on budget calendarOne of first tasks on budget calendar Largely the foundation for the budgetLargely the foundation for the budget Will be used to determine teacher allocations and school Will be used to determine teacher allocations and school
staffing ratiosstaffing ratios Used to estimate EFA allocationUsed to estimate EFA allocation Preliminary figures based on 45Preliminary figures based on 45thth day counts day counts Use historical data and birth ratesUse historical data and birth rates Consider significant spikes and dipsConsider significant spikes and dips Kindergarten and 1Kindergarten and 1stst grade generally most difficult grade generally most difficult
33
STUDENT PROJECTIONSSTUDENT PROJECTIONS
Feeder school splits sometimes difficultFeeder school splits sometimes difficult Important to be conservativeImportant to be conservative Review for reasonableness Review for reasonableness Receive feedback from principals and school officialsReceive feedback from principals and school officials Generally reasonable, but not exactGenerally reasonable, but not exact Review class-by-class counts at days 3 and days 11Review class-by-class counts at days 3 and days 11
Shift staff within a school or between schoolsShift staff within a school or between schools Additional hires, if necessary Additional hires, if necessary
34
STUDENT PROJECTIONSSTUDENT PROJECTIONS
Example Calculation
Fiscal Year 5 6 7 8 TotalFY 14/15 195 203 184 582
Actual 45-day ADM
FY 13/14 207.42 201.24 194.18 199.36 594.78 FY 12/13 202.46 200.80 198.98 196.58 596.36 FY 11/12 214.21 205.73 223.76 183.44 612.93 FY 10/11 219.23 215.20 213.13 198.96 627.29 FY 09/10 239.71 201.31 190.51 245.73 637.55
Student Advancement Ratios
FY 13/14 0.99 0.97 1.00 FY 12/13 0.94 0.97 0.88 FY 11/12 0.94 1.04 0.86 FY 10/11 0.90 1.06 1.04 FY 09/10 0.96 0.97 0.96
Five Year Avg 0.94 1.01 0.95
Grade
35
STAFFING RATIOSSTAFFING RATIOS
Enrollment projections used to allocate most school staffEnrollment projections used to allocate most school staff Assistant principalsAssistant principals ClericalClerical GuidanceGuidance Media specialists and aidesMedia specialists and aides
ExceptionsExceptions Each school has a principal and one clerical staff member Each school has a principal and one clerical staff member
regardless of sizeregardless of size Custodial allocation based on square footageCustodial allocation based on square footage
36
STAFFING RATIOSSTAFFING RATIOS
Grade > 400 < 400
K 25 to 1 25 to 11st 18 to 1 18 to 12nd - 3rd 23 to 1 21 to 14th - 5th 25.5 to 1 25.5 to 1
> 500 300 - 500 < 300
6th 28.5 to 1 27.5 to 1 24.5 to 17th 27.5 to 1 26.5 to 1 23.5 to 18th 29.5 to 1 28.5 to 1 24.5 to 1
> 800 600 - 800 < 6009th - 12th 31.5 to 1 30 to 1 28.5 to 1
Enrollment
37
BUDGET TRANSFERSBUDGET TRANSFERS
Schools/departments are provided some budget discretion by Schools/departments are provided some budget discretion by Board policyBoard policy
Principals/department heads can transfer up to $1,500 Principals/department heads can transfer up to $1,500 School transfers between $1,500 and $3,000 also require School transfers between $1,500 and $3,000 also require
approval of Academic Officerapproval of Academic Officer Budget transfer between $3,000 and $5,000 require Budget transfer between $3,000 and $5,000 require
Superintendent approvalSuperintendent approval The above must have no net budget effect and cannot affect The above must have no net budget effect and cannot affect
salaries, fringe, or utilities.salaries, fringe, or utilities. Transfers in excess of $5,000 require Board approvalTransfers in excess of $5,000 require Board approval
38
BUDGET RECAPBUDGET RECAP
2008-092008-09 No step increase for non-teachersNo step increase for non-teachers Eliminated two coordinator positions at BrookhavenEliminated two coordinator positions at Brookhaven Phased out CAI lab aide positionsPhased out CAI lab aide positions No longer contributed to Camp Long projectNo longer contributed to Camp Long project Fund 1 no longer allocated to parenting programFund 1 no longer allocated to parenting program Reduced vehicle replacement budgetReduced vehicle replacement budget Cut supplies and travel mid-yearCut supplies and travel mid-year Avoided furloughsAvoided furloughs
39
BUDGET RECAPBUDGET RECAP
2009-102009-10 No step or cost of living increase for non-teachersNo step or cost of living increase for non-teachers Increased pupil-teacher ratiosIncreased pupil-teacher ratios Eliminated signing bonuses for new teachersEliminated signing bonuses for new teachers Eliminated playoff supplementsEliminated playoff supplements Eliminated 17 positions at BrookhavenEliminated 17 positions at Brookhaven Reduced Fund 1 travel by 50%Reduced Fund 1 travel by 50% Reduced band matching fees by 50%Reduced band matching fees by 50% Phase out of International Baccalaureate commencedPhase out of International Baccalaureate commenced
40
BUDGET RECAPBUDGET RECAP
2009-10 Continued2009-10 Continued Reduced drivers education to one periodReduced drivers education to one period Modified alternative education programModified alternative education program Eliminated intramural supplementEliminated intramural supplement Reduced budgets for technology and maintenanceReduced budgets for technology and maintenance Furloughed employeesFurloughed employees Increased taxes by 4.3 mills netIncreased taxes by 4.3 mills net
41
BUDGET RECAPBUDGET RECAP
2010-112010-11 No step or cost of living increase for any employeesNo step or cost of living increase for any employees No furloughsNo furloughs Suspended drivers education programSuspended drivers education program Increased 1Increased 1stst grade PTR while decreasing 4 grade PTR while decreasing 4thth and 5 and 5thth Funded full-time registrars at each high schoolFunded full-time registrars at each high school No longer paying half of PSATNo longer paying half of PSAT Last full year of Federal stimulus dollarsLast full year of Federal stimulus dollars Decreased taxes by 3.5 mills netDecreased taxes by 3.5 mills net
42
BUDGET RECAPBUDGET RECAP
2011-122011-12 Step increase for teachers, 1% cost of living for other Step increase for teachers, 1% cost of living for other
employeesemployees Continued funding of reading interventionistsContinued funding of reading interventionists Closed area officesClosed area offices Eliminated one administrator and one clerical positionEliminated one administrator and one clerical position Fund 1 travel budgets restoredFund 1 travel budgets restored Increased janitorial allocationIncreased janitorial allocation Increased Fund 1 technology budgetIncreased Fund 1 technology budget
43
BUDGET RECAPBUDGET RECAP
2011-12 - Continued2011-12 - Continued Funding 9Funding 9thth grade academies at three high schools grade academies at three high schools Funding in-school suspension supervisors at middle Funding in-school suspension supervisors at middle
schoolsschools Absorbed reductions in certain State allocationsAbsorbed reductions in certain State allocations Net tax increase of 2.1 mills Net tax increase of 2.1 mills Tax increase enabled to restructure debt service Tax increase enabled to restructure debt service
payments and issue additional $2 million for capital payments and issue additional $2 million for capital projectsprojects
44
BUDGET RECAPBUDGET RECAP
2011-12 - Continued2011-12 - Continued Approved additional mid-year expenditures resulting from Approved additional mid-year expenditures resulting from
growth in fund balance and need at schoolsgrowth in fund balance and need at schools $500,000 for furniture replacement$500,000 for furniture replacement $400,000 for instructional supplies$400,000 for instructional supplies $50,000 for custodial supplies$50,000 for custodial supplies $25,000 for athletics$25,000 for athletics $25,000 for band $25,000 for band All are of above were All are of above were nonnon-recurring-recurring
45
BUDGET RECAPBUDGET RECAP
2012-132012-13 Step + 2% increase for teachers, 4% increase for assistant Step + 2% increase for teachers, 4% increase for assistant
principals, 2% increase for all others principals, 2% increase for all others Funding shifts in 4 instructional and 1.5 instructional support Funding shifts in 4 instructional and 1.5 instructional support
positionspositions Funding for a fourth 9Funding for a fourth 9thth grade academy grade academy Creation of 3 curriculum coach positionsCreation of 3 curriculum coach positions Additional allocations for CATEAdditional allocations for CATE Loss of Education Foundation SupplementLoss of Education Foundation Supplement Net tax increase of 4.2 millsNet tax increase of 4.2 mills
46
BUDGET RECAPBUDGET RECAP
2012-13 - Continued2012-13 - Continued Created new technology positionCreated new technology position Additional teacher allocations for strings and East Additional teacher allocations for strings and East
Aiken School of the ArtsAiken School of the Arts Upgraded a vacant, classified accounting positionUpgraded a vacant, classified accounting position Provided full-time attendance clerks at 3 high schoolsProvided full-time attendance clerks at 3 high schools Non-recurring technology dollarsNon-recurring technology dollars Non-recurring dollars for advanced placement program Non-recurring dollars for advanced placement program
47
BUDGET RECAPBUDGET RECAP
2013-142013-14 Step for teachersStep for teachers 4% increase for SFS managers (SFS Fund)4% increase for SFS managers (SFS Fund) 1% one-time bonus for employees not receiving raises1% one-time bonus for employees not receiving raises $50,000 for high school athletics transportation$50,000 for high school athletics transportation Model school costs at North AikenModel school costs at North Aiken Building closure during winter breakBuilding closure during winter break Additional homebound teacher (approved after original Additional homebound teacher (approved after original
adoption)adoption)
48
BUDGET RECAPBUDGET RECAP
2014-152014-15 Step for all employeesStep for all employees Funding for Freshman Academy at Aiken HighFunding for Freshman Academy at Aiken High Creation of science curriculum specialistCreation of science curriculum specialist Funding for a drama and a dance teacher at East Aiken Funding for a drama and a dance teacher at East Aiken
ElementaryElementary Two additional ESOL teachersTwo additional ESOL teachers Revision of formulas for allocating assistant principals and Revision of formulas for allocating assistant principals and
middle and high schoolsmiddle and high schools
49
BUDGET RECAPBUDGET RECAP
2014-15 - Continued2014-15 - Continued Increased bus driver pay by 2% (plus step)Increased bus driver pay by 2% (plus step) Funding for additional HR department positionFunding for additional HR department position Funding for Read to Succeed literacy coordinatorFunding for Read to Succeed literacy coordinator Increased substitute teacher pay by $2 per dayIncreased substitute teacher pay by $2 per day Increased budgets for janitorial supplies by $4 per pupil Increased budgets for janitorial supplies by $4 per pupil
(one year only)(one year only) Increased budgets for copier supplies by $4 per pupil (one Increased budgets for copier supplies by $4 per pupil (one
year only)year only)
50
BUDGET RECAPBUDGET RECAP
2014-15 - Continued2014-15 - Continued Allocated $250,000 for athletics (one-time only)Allocated $250,000 for athletics (one-time only) Will participate in Child Development Education
Program (CDEP), shifting from half-day 4K program to full-day program [State funded]
No change in operating or debt service millage
51
FLEXIBILITYFLEXIBILITY
Legislation to cope with budget reductionsLegislation to cope with budget reductions Can transfer many State allocations to other funds as Can transfer many State allocations to other funds as
neededneeded Can suspend professional staffing ratiosCan suspend professional staffing ratios Can uniformly negotiate salaries with retireesCan uniformly negotiate salaries with retirees 75% rule must be met75% rule must be met Quarterly reportsQuarterly reports
52
FUND 1FUND 1
Largest fundLargest fund $171.2 million original budget$171.2 million original budget Two-thirds of total District expendituresTwo-thirds of total District expenditures Most local funding reflects property tax revenueMost local funding reflects property tax revenue State allocations gradually increasing since 2012-13 after State allocations gradually increasing since 2012-13 after
several years of declineseveral years of decline State revenue $106.4 million in 2007-08State revenue $106.4 million in 2007-08 Expected State revenue $106.0 million in 2014-15, up Expected State revenue $106.0 million in 2014-15, up
from $100.8 million in 2013-14 from $100.8 million in 2013-14
53
FUND 1FUND 1
Property taxesProperty taxes Operating millage increase is cappedOperating millage increase is capped Caps vary by districtCaps vary by district Change in consumer price index + populationChange in consumer price index + population Three year “look back”Three year “look back”
Fees in lieu of tax are negotiated by CountyFees in lieu of tax are negotiated by County Education Finance Act (EFA) is largest State allocationEducation Finance Act (EFA) is largest State allocation
Formula uses base student cost (BSC), weighted pupil units Formula uses base student cost (BSC), weighted pupil units (WPU), and index for taxpayer ability (ITA)(WPU), and index for taxpayer ability (ITA)
54
FUND 1FUND 1
BSC - ESTIMATE VS. FUNDED
14671539
16101651
17181778
18391879
19372012
20732133
220122342290
2367
2476
2578
26872720
2790
15811619
16811750
1830
2002
1881
1754
1852
1765
1617
1880
2742
27902771
16521604
2120
15321505
2191
2101
2012
1770
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
$2,600
$2,800
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
SCHOOL YEAR
BSC
Estimate
Funded
55
FUND 1FUND 1
RevenueRevenue SourceSource 2014-15 Budget2014-15 Budget
Property taxesProperty taxes LocalLocal $ 48,860,778$ 48,860,778
Delinquent taxes Delinquent taxes LocalLocal 3,200,0003,200,000
Fees in lieu of taxFees in lieu of tax LocalLocal 6,000,0006,000,000
Other local revenue Other local revenue LocalLocal 120,000120,000
Education Finance ActEducation Finance Act StateState 50,892,25350,892,253
Fringe benefitsFringe benefits StateState 25,329,73925,329,739
Property tax reliefProperty tax relief StateState 28,714,13328,714,133
School bus driversSchool bus drivers StateState 1,090,6291,090,629
Other state revenueOther state revenue StateState 17,00017,000
Impact AidImpact Aid FederalFederal 90,00090,000
56
FUND 1FUND 1
RevenueRevenue SourceSource 2014-15Budget2014-15Budget
Transfer from EIA – Teacher Salary Transfer from EIA – Teacher Salary Supplement and TSI FringeSupplement and TSI Fringe State/TransferState/Transfer 4,189,7424,189,742
Transfer from EIA and Special Revenue – Transfer from EIA and Special Revenue – FlexFlex State/TransferState/Transfer 1,580,2841,580,284
Indirect CostsIndirect Costs TransferTransfer 700,000700,000
Non-recurring items (one-time use)Non-recurring items (one-time use) Fund BalanceFund Balance 446,000446,000
TotalTotal $ 171,230,558$ 171,230,558
57
FUND 1FUND 1
ExpenditureExpenditure 2014-15 Budget2014-15 Budget
SalariesSalaries $ 114,085,684$ 114,085,684
Payroll taxes/fringe benefits (incl w/c)Payroll taxes/fringe benefits (incl w/c) 42,026,30642,026,306
Purchased services (incl utilities)Purchased services (incl utilities) 9,386,1469,386,146
Supplies and materialsSupplies and materials 3,280,1293,280,129
Payments to charter schoolsPayments to charter schools 2,174,7112,174,711
OtherOther 277,582277,582
TotalTotal $ 171,230,558$ 171,230,558
58
8% LIMIT8% LIMIT
General obligation debt limited to 8% of tax baseGeneral obligation debt limited to 8% of tax base General obligation debt currently used to finance projects General obligation debt currently used to finance projects
in the Five Year Facilities Planin the Five Year Facilities Plan Bond capacity (i.e., the amount of general obligation debt Bond capacity (i.e., the amount of general obligation debt
that can be issued within the 8% limit) can increasethat can be issued within the 8% limit) can increase Growth in tax baseGrowth in tax base Pay off debt quickerPay off debt quicker
To exceed the 8% limit would require a successful bond To exceed the 8% limit would require a successful bond referendumreferendum
59
8% LIMIT8% LIMIT
Assessed value of propertyAssessed value of property $ 600,000,000
8% of above8% of above 48,000,00048,000,000
Less Year 1 bonds – unpaidLess Year 1 bonds – unpaid - 3,000,000- 3,000,000
Less Year 2 bonds - unpaidLess Year 2 bonds - unpaid - 6,000,000- 6,000,000
Less Year 3 bonds - unpaidLess Year 3 bonds - unpaid - 9,000,000- 9,000,000
Less Year 4 bonds – unpaidLess Year 4 bonds – unpaid - 12,000,000- 12,000,000
Bond capacity – Year 5 bonds availableBond capacity – Year 5 bonds available $ 18,000,000$ 18,000,000
This This exampleexample shows that $18 million in general shows that $18 million in general
obligation debt could be issued within the debt limit.obligation debt could be issued within the debt limit.
60
2015-16 BUDGET2015-16 BUDGET
Considerations and unknownsConsiderations and unknowns BSCBSC Changes in SC allocations – more?/less?Changes in SC allocations – more?/less? Changes in flexibilityChanges in flexibility Cap on operating millageCap on operating millage 3 year look back on operating millage3 year look back on operating millage Education finance reform/SCJET Education finance reform/SCJET Reduction in federal dollarsReduction in federal dollars
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2015-16 BUDGET2015-16 BUDGET
Considerations and Unknowns - ContinuedConsiderations and Unknowns - Continued Teacher step + cost of living increaseTeacher step + cost of living increase Health insurance premiumsHealth insurance premiums Retirement contribution ratesRetirement contribution rates Charter school fundingCharter school funding Budget inputBudget input OtherOther
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DISTRICT WEBSITEDISTRICT WEBSITE
Financial information at Financial information at www.aiken.k12.sc.us on homepage on homepage Monthly transparency reports Monthly transparency reports Audited financial statements/CAFRsAudited financial statements/CAFRs Budget informationBudget information Flexibility Flexibility Five Year Facilities PlanFive Year Facilities Plan Administrative cost reportingAdministrative cost reporting Other finance-related infoOther finance-related info
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COMPREHENSIVE ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORTFINANCIAL REPORT
CAFR for shortCAFR for short Exceeds the minimum financial reporting requirementsExceeds the minimum financial reporting requirements Goal – transparency and to receive GFOA/ASBO Certificates Goal – transparency and to receive GFOA/ASBO Certificates
of Excellenceof Excellence What is different?What is different?
Transmittal letterTransmittal letter Formally presents the CAFR to usersFormally presents the CAFR to users Gives profile of the District and other infoGives profile of the District and other info Lists awards and acknowledgementsLists awards and acknowledgements
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COMPREHENSIVE ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORTFINANCIAL REPORT
Organizational chartOrganizational chart Listing board members and administrationListing board members and administration Statistical dataStatistical data
Summarized financial statementsSummarized financial statements Tax informationTax information Debt informationDebt information DemographicsDemographics FacilitiesFacilities
CAFR due to GFOA/ASBO by December 31CAFR due to GFOA/ASBO by December 31
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NOTE:NOTE:
PLEASE VISIT THE DISTRICT’S HOMEPAGE, PLEASE VISIT THE DISTRICT’S HOMEPAGE, THEN CLICK THE BUDGET INPUT LINK TO THEN CLICK THE BUDGET INPUT LINK TO
PROVIDE COMMENTS AND SUGGESTIONS ON PROVIDE COMMENTS AND SUGGESTIONS ON THE 2015-16 BUDGET. THE 2015-16 BUDGET.