Communicating Budget Variables - WASBO...U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MAIN] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm. Why Are We Communicating? This is

$Page 1: Communicating Budget Variables - WASBO...U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MAIN] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm. Why Are We Communicating? This is$
Communicating Budget VariablesWisconsin Association of School Business OfficialsAccounting ConferenceMarch 19, 2020 – 1:00pm – 2:00pm

Robert W. Baird & Co. Incorporated is providing this information to you for discussion purposes. The materials do not contemplate or relate to a future issuance of municipal securities. Baird is not recommending that you take any action, and this information is not intended to be regarded as “advice” within the meaning of Section 15B of the Securities Exchange Act of 1934 or the rules thereunder.

U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MAIN] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm

Presenters

Sarah Viera• Mequon-Thiensville School District• Director of Business Services• 262-238-8509• [email protected]

Debby Brunett• Baird School Business Solutions• Senior Vice President• 715-552-3567• [email protected]

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Who Do We Communicate With?

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https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://medium.com/ontariodigital/talking-about-basic-income-8379fe5a5011&psig=AOvVaw1L3UC2oJiraSnJfnEut3th&ust=1549744741645168


What Are We Communicating?

State formulas Budget development and performance

Communicating the unknowns

Communicating the changes Other?

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When and Where Are We Communicating?

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https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwj0p_Stia3gAhWOJzQIHbBYCeAQjRx6BAgBEAU&url=https://tech.co/news/how-to-not-give-boring-presentations-2014-08&psig=AOvVaw2ZUPzFyzgF3-wuxxoXJnmT&ust=1549747461922442


Why Are We Communicating?

This is difficult and challenging stuff to understand

People are affected by this

People want to know or may not want to know, but they should know

If you do not communicate it, people will write their own narratives

Most people trust their emotions over fact!

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How Are We Communicating?

Staying focused on your “why”

Educational Opportunities

for Kids

Levy/Mill Rate

Budget

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Using friendly visuals

Source: Department of Public Instruction

$12.68$11.00 $11.15

$8.60

$4.64

$10.98$8.90

$12.25

$9.60 $8.91$10.22$10.33

$8.11

$12.50$11.52

$8.24

$0.00$2.00$4.00$6.00$8.00

$10.00$12.00$14.00

2020 Mill Rate

Mill Rate State Average

Lower school taxes / $1,000 equalized

property value

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Choosing the right visual

Expenses

Revenues

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Adjust message to stakeholder group

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Clearly communicating expectations

“I’m not going to tell you these figures might

change, I’m telling they will.”

“These are our best estimates to date.”

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“Here’s what might change.”

“Here’s the estimated impact.”

Anticipating potential changes

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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjxve-5tZDTAhWn5oMKHdlyAQYQjRwIBw&url=http://www.downloadclipart.net/people-clip-arts&bvm=bv.152174688,d.amc&psig=AFQjCNGlo9kNmGPbB6n9tkkmSgjzUS7C4Q&ust=1491588105681532



Anticipating potential changes

• What do they know?• What do they care about?• What do you want them to think or do?

Focus on three key messages:

• What is the "issue"?• Why is it important?• How does it impact them?

Or…

Your stakeholder group determines how these questions are answered and how the messages are shaped.

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State Formulas – Revenue Limits

• What do they think now?• Schools are not limited by what the spend

• What do they care about?

• What do you want them to think or do?

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https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi3i8yBqM3gAhWEy4MKHTtQBHQQjRx6BAgBEAU&url=https://commons.wikimedia.org/wiki/File:Sport_records_icon_OR.svg&psig=AOvVaw00qrsnf9rpjjyCKBa_4Vn4&ust=1550855208918709

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjK25mygNDgAhWD7YMKHRTtBRAQjRx6BAgBEAU&url=http://efilegroup.com/taxpayers-are-the-craziest-people/&psig=AOvVaw1TBW80My9YO8WOVPL_NDxq&ust=1550947608535943


State Formulas – Revenue Limits

Sample How

$

0% 20% 40% 60% 80% 100%

F10 Budget Composition – General Fund

Revenue Limit w/ all Exemptions Per-Pupil Categorical Aid All other operating revenue

Approximately 93% of the school district's 2020 operating revenue is determined by state formulas known as “Revenue Limits” and “Per-Pupil Categorical Aid”.

Resident Membership

(FTE)$ per pupil

Exemptions(ongoing and

one-time)

Revenue Limit Authority

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State Formulas – General / Equalization Aid

• What do they think now?• General or equalization aid provides more to spend



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RLLevy

State Formulas – General / Equalization Aid

Sample How

General Aid

RLLevy

General Aid

District A: Total Revenue Limit District B: Total Revenue Limit

Revenue Limits – how much revenue you can generate through the sources of state general aid and the local tax levyGeneral Aid – determines the revenue limit levy

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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwifhbj7q4jZAhVs0oMKHTwqAZkQjRx6BAgAEAY&url=http://laoblogger.com/ah-ha-moment-clipart.html&psig=AOvVaw3xcCYRFrydmFTq77Fxvqol&ust=1517699118726947


State Formulas – Levy

• What do they think now?• The district has total control over the school levy



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State Formulas – Levy

Sample How

Total School Levy

Revenue Limit Tax Levy (Funds

10, 38, & 41)

Referendum Approved Debt Levy (Fund 39)

Community Service Tax

Levy (Fund 80)

Prior Year Levy Chargeback &

Other

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State Formulas – Mill Rate

• What do they think now?• The mill rate went down, my taxes will too



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Sample How

“The school levy is one of several levies on a property tax bill.”

“In addition to changes in the school districts levy and mill rate, the individual taxpayers’ school levy impact can change year to year due to changes in assessed value, assessment ratio, resulting fair market value, and the school levy credit.”

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Did you know?

“In addition to changes in the school districts levy and mill rate, the individual taxpayers’ school levy impact can change year to year due to changes in assessed value, assessment ratio, resulting fair market value, and the school levy credit.”

Fair Market Value

School Levy Rate

School Levy Credit

Individuals’ School Levy

.00929125

A

A

C

C

D

D

B

B

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Other Example – Now You Try

• What do they think now?



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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiavvjTgdDgAhUK64MKHRpnCS4QjRx6BAgBEAU&url=http://gcps-communique.com/archive/2017/11/15/support-staff-members-boost-student-success-every-day&psig=AOvVaw0tgo7uMgq1bnMl6cXuoFA4&ust=1550947935739462


https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwji7tibgtDgAhXIpYMKHYTiBh4QjRx6BAgBEAU&url=https://obxcommongood.org/board-of-education-news/&psig=AOvVaw0_oCkJkUwnQjRkfAW_BEN0&ust=1550948128722424



Additional Considerations

Relax and listen

Make sure you understand the question - repeat it back

Put answer in terms the audience will understand

• Consider using an example

Know when to stop talking

If you don't know, say so

• Find the answer and follow up

Invite others to co-present or present

• Adds perspective• Supports message or recommendation• Builds credibility

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Consider

A successful presentation is not _________. Instead, it is one where ___________.

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Thoughts? Questions?


Important Disclosures

Robert W. Baird & Co. Incorporated is providing this information to you for discussion purposes only. The information does not contemplate or relate to a future issuance of municipal securities. Baird is not recommending that you take any action, and this information is not intended to be regarded as “advice” within the meaning of Section 15B of the Securities Exchange Act of 1934. You should discuss the information contained herein with any and all internal or external advisors and experts you deem appropriate before acting on the information.

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Documents

Communicating Budget Variables - WASBO...U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MAIN] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm. Why Are We Communicating? This is