FY 2009-2010 Budget Preparation & NegotiationsPart II – January 12, 2009

Top 4 Things to Know about School Finance in Iowa

• Total amount of money available is based primarily on the number of children a district has.

• The tax rate of a district is largely driven by formula. Only a small portion is impacted by the school board.

• Certain funds have to be spent on certain things.

• Most of our expenses are staff: 81% of ACSD General Fund is made up of staff salaries and benefits.

School Aid - Basics

• Certain Funds have to be Spent on Certain Things– Educational program expenditures are

funded and equalized by the state foundation formula.

– Facility expenditures are funded locally (with some state assistance) and are not under the finance formula.

 

 General

Fund   PPEL

  Capital Projects 

 Debt Service

 

StudentActivity

Mgmt Fund

Food Svc

Fund

       Property

TaxLocal Option

Property Tax          

            Sales TaxTransfer

InFundrai

singProperty

Tax    

           Bond

Proceeds              

The Concept of Silos

School Aid - Basics

• Basic Principles:– The school aid formula is a child-based

formula.– The formula provides funding on a per

child basis.– The total amount of foundation formula

revenue is the number of children times a cost per child.

School Aid - Basics

• Basic Calculations - District Costs – Regular Program District Cost - budget

enrollment times district cost per pupil.

4,340.20 students x $5,858 = $25,520,545

– Combined District Cost - sum of Regular Program plus special education, ELL, media services.

– What happens if less is spent? Carries forward as unspent budget authority - can be used in future (one-time).

The Concept of Spending Authority

SPENDING AUTHORITY CASH

Combined District Cost (Funding Formula)

District Cost per Pupil x Certified Enrollment plus additional

weightings for ELL, Spec Ed, Media Services

State Aid (Funding Formula)

Miscellaneous Income Property Taxes (Funding Formula)

Unspent Budget Authority Cash Reserves (Savings)

Consequence of Exceeding Budget Authority

• Iowa Code Section 257.31.18 stating “If a school district exceeds its authorized budget or carries a negative unspent budget authority for two or more consecutive years, the committee may recommend that the department implement a phase II on-site visit to conduct a fiscal review pursuant to section 256.11, subsection 10, paragraph "b", subparagraph (1), subparagraph subdivision (e)” was added during the 2007 legislative session.

Allowable Growth

• Set by Legislative Action for FY 09-10 at 4% (means by which funding formula is increased for a given fiscal year)

• Iowa Association of School Board supports rate set at no lower than 6%

• Rate of 6% gives school district the ability to better manage spending

• Important to maintain spending authority even if it is not funded

Revenue & Expenditures

Revenue Expenditures Cash Res SolvncyUnspnt Auth

Budget

FY 02-03 $39,964,637 $34,966,680 $1,828,879 4.9% 7.2%

FY 03-04 $38,605,945 $36,228,677 $3,420,236 8.8% 11.5%

FY 04-05 $39,238,950 $36,742,981 $6,358,573 16.2% 12.9%

FY 05-06 $39,657,166 $38,483,550 $8,498,329 20.0% 11.8%

FY 06-07 $39,794,382 $40,428,671 $7,864,040 19.8% 10.9%

FY 07-08* $41,130,953 $43,912,711 $5,082,300 12.4% 7.4%

*Preliminary until audit release

FY 07-08 Actual-Revenue

Property Taxes $16,752,957 40.7%

State Aid $12,472,358 30.3%

Income Surtax $1,956,497 4.8%

State Categorical Funds $3,832,267 9.3%

Federal Grants $1,393,518 3.4%

Tuition $3,238,304 7.9%

Investment Earnings $478,458 1.2%

Transportation Fees $181,018 0.4%

Other Local Revenue $825,575 2.0%

$41,130,952 100.0%

FY 07-08 Actual Revenue

42%

30%

5%

9%

3%

8%

2%0%

1%

Property Taxes

State Aid

Income Surtax

State Categorical Funds

Federal Grants

Tuition

Investment Earnings

Transportation Fees

Other Local Revenue

FY 07-08 Actual Expenditures

Salaries & Benefits $35,338,789 80.5%

Transportation $1,473,055 3.4%

Utilities $1,197,139 2.7%

Purchased Services $2,832,646 6.5%

Supplies $1,342,347 3.1%

AEA Flowthrough $1,382,303 3.1%

Miscellaneous $346,432 0.8%

$43,912,711 100.0%

FY 07-08 Actual Expenditures

81%

3%

3%

6%3% 3%

1%

Salaries & Benefits

Transportation

Utilities

Purchased Services

Supplies

AEA Flow through

Miscellaneous

3,800

4,000

4,200

4,400

4,600

4,800

5,000

Ames CSD Certified Enrollment

Certified Enrollment 4,878 4,969 4,945 4,970 4,897 4,839 4,752 4,675 4,624 4,517 4,366 4,334 4,320 4,351 4,340

Sept '94

Sept '95

Sept '96

Sept '97

Sept '98

Sept '99

Sept '00

Sept '01

Sept '02

Sept '03

Sept '04

Sept '05

Oct '06

Oct '07

Oct '08

Unspent Authorized Budget History

-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Fiscal Year

Am

ount

Revenue & Expenditures

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08

Revenue Expenditures Salaries & Benefits

Labor Costs as % of General Fund

Revenue ExpendituresSalaries &

Benefits % of Rev % of Exp

FY 02-03 $39,964,637 $34,966,680 $28,689,092 71.8% 82.0%

FY 03-04 $38,605,945 $36,228,677 $29,638,017 76.8% 81.8%

FY 04-05 $39,238,950 $36,742,981 $30,233,075 77.0% 82.3%

FY 05-06 $39,657,166 $38,483,550 $31,005,469 78.2% 80.6%

FY 06-07 $39,794,382 $40,428,671 $32,706,495 82.2% 80.9%

FY 07-08 $40,943,353 $43,912,711 $35,338,789 86.3% 80.5%

Student FTE per Teacher FTECount Certified Teacher Enrollment

Date Enrollment FTE per Teacher

Oct-08 4,340.20 351.45 12.35

Oct-07 4,350.70 346.80 12.55

Sep-06 4,320.00 341.10 12.66

Sep-05 4,333.50 334.66 12.95

Sep-04 4,365.70 339.89 12.84

Sep-03 4,517.00 340.26 13.28

Sep-02 4,624.00 340.91 13.56

Sep-01 4,674.00 353.54 13.22

Sep-00 4,696.00 357.20 13.15

Sep-99 4,839.00 358.40 13.50

Sep-98 4,897.00 358.05 13.68

Student to Teacher Ratio

Enrollment per Teacher

11.50

12.00

12.50

13.00

13.50

14.00

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Count Date

Students per Teacher

Utility Costs-Electric, Gas, Water

$803,127 $767,280

$1,106,108 $1,102,338$1,196,139

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08

Utility Costs-Electric, Gas, Water

Budget Outlook – New RevenueNew Revenue: FY 10 (2009-10)

New Money * $904,346

New Money dedicated to Spec Ed -$92,500

Turnover Savings $20,000

Cost Savings & Other Sources $ 831,846

New Costs:

Special Ed Transportation $250,000

Lost Fee Revenue $200,000

Lost State Aid $282,000

$ 732,000

Potential Shortfall/(Available Money) $99,846

Iowa Code Ch. 20• Salaries and Benefits for All District

Employees represent 81% of the Total General Fund Expenditures in FY 2007-08

• Ames Community School District negotiates with 2 collective bargaining units– Ames Education Association (Teachers)– PPME (Custodial and Maintenance

personnel)

New Money and Settlement History

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

State A.G. Ames New $ Assoc. Settlement