WelcomeCommunity and Schools Coming

Together…be a part of the

experienceSchool Finance 101 & School

GovernanceOctober 27, 2011

Sandwich CUSD #430~ District Mission ~

“Our mission is to provide opportunities for our youth to develop educationally, emotionally, physically, and socially to the fullest of their ability…”

Demographics

Racial/Ethnic Background 83.9 % White

0.2 % Black

10.6 % Hispanic

1.0 % Asian

0.1% Native Hawaiian/Pacific Islander

0.2% American Indian

4.0% Two or More Races

Attendance Rate

95.6 % Average Daily Attendance

94.0% State

Demographics Continued

Chronic Truancy rate is 0.5% compared to the state’s 3.2%.

Teaching Staff – 77.5% female; 22.5% male.

Average teaching experience is 13.3 years.

65.7% of certified staff have earned a master’s degree or above compared to the state’s 60.4%.

100% of teaching assistants are certified.

District Financial Overview

The following information regarding school finances is intended to give District 430 citizens a better understanding of their investment in our school system and an explanation of where revenues come from to operate our schools and where it is allocated.

It also explains how our budget is built and how it is monitored.

District Financial Overview

Where The Money Comes From Local State Federal

Where The Money Goes Education is a people intensive business, and with approximately 300

employees, a large portion of the budget will go towards salaries and benefits for the people who provide instructional and support services for the students who attend Sandwich CUSD #430.

The remainder is for improvement of instruction, business services, operations & maintenance, bond payments, transportation, food services and special education & services.

District Revenues

FY ‘11 LOCAL $14,245,247 or 67.28%

Examples: Property Taxes, CPPRT, Interest, Foods Service, Admission & Registration Fees

STATE $5,081,111 or 24.00% Examples: General State Aid, Driver Education,

Special Education, Career/Tech Ed., Early Childhood

FEDERAL $1,844,749 or 8.72% Examples: Title I, II, III; National Lunch Program;

Perkins Grant; IDEA; Room & Board; Medicaid

Allocation of General State Aid (GSA) Funds

In order to help balance the different funds, the District must rely on the use of GSA.

FY ’11 : $3,943,180 Education Fund GSA: $2,384,577 or

60.47% Oper. & Maint. / D. Service: $975,884 or

24.75% IMRF/SS: $582,913 or 14.78%

Property Tax Extension Limitation Law (tax caps)

The district estimates its equalized assessed valuation to secure new growth revenue and must adhere to the Property Tax Extension Limitation Law (PTELL or “tax cap” law).

PTELL limits the increase over the prior year in the property tax extension of this taxing district to the lesser of 5% or the percentage increase in the Consumer Price Index (CPI), which was 0.1% in 2009; 2.7% in 2010; and 1.5% in 2011.

Life Safety work is restricted by PTELL – yet mandated by the State (Due to PTELL, life safety bonds were not sold to fund roof and masonry work).

IMRF/SS is restricted by PTELL – yet mandated by the state.

District Revenue

Revenue Sources

LOCAL - 67.28%

STATE - 24%

FEDERAL - 8.72%

District Financial Overview

How The Budget Is Developed The preparation, adoption and action on the district’s budget is a yearly process

involving the employees, administrators, the Board of Education, and input from the community during committee meetings and public hearings.

Prior to 2010-2011, the District was able to adopt a yearly budget that was balanced. For the current 2011-2012 school year, the adopted education fund budget was a deficit 1,144,256.  This is due to $809,000 being allocated this year for roof and masonry repair and renovation work that was completed; the need to add additional teaching assistants; Corporal Personal Property Taxes coming in 12.5% less; and General State Aid being prorated and reduced . EAV is also on the decline.

By law, the District’s budget must be adopted by September 30th each year.

Past practice of ISBE is to allocate funding well after deadlines to finalize personnel needs as well as after budget adoption.

Budget Guidelines

The spending of the District is guided by all of the following:

Types of programs & services being delivered

Goals and objectives of the Board

Number of employees

Requirements to maintain the district’s six instructional centers

The transportation and food services programs

Requirements imposed upon the district by the federal and state governments

Collective Bargaining Agreements

ISBE Financial Profile

ISBE rates (grades) School District’s each year on their financial status: (Fund Balance to Revenue ratio; Expenditure to Revenue ratio; Days Cash on Hand; Percent Short Term Barrowing; and Percent Long Term Debt Margin)

Scores range from 0-4 in each category

2003 score was 1.85/4.0 (watch)

2009 score was 3.45/4.0 (financial review)

2010 score was 3.10/4.0 (financial review)

2011 estimated score is 3.10 /4.0 (financial review)

Financial Profile Continued

In order to earn the category or score of “3” or “4” designation on the Financial Profile for Days Cash on Hand, the District needs 91-180 days for Category 3 and 180+ for Category 4

Our Score is “2” (less than 90 days cash on hand to at least 30 days cash on hand.

District Financial Overview

There are eight different funds. The following are FY ‘11 fund balances and examples of the types of expenditures that are made from each fund:

Education Fund – pays the salaries and employee benefits of educational professional and support staff; buys the textbooks, supplies, purchased services and equipment for classrooms; pays for the district’s lunch program, and liability insurance premiums. June 30, 2011 fund balance was $3,101,448.

Operations and Maintenance Fund – pays the salaries and supplies of custodial and building maintenance staff, painting and maintenance costs of buildings, and energy-related equipment and services. June 30, 2011 fund balance was $643,078.

Debt Service – makes the outstanding principal and interest payments for the bonds issued by the district due to successful referendum to build, property purchases, and/or repair, equip and maintain the buildings of the district. June 30, 2011 fund balance was $2,193,284.

Transportation Fund – pays all expenses related to operating the transportation department. June 30, 2011 fund balance was $245,027.

Illinois Municipal Retirement / Social Security Fund – pays mandated employer contributions for Social Security, Medicare, and the Illinois Municipal Retirement System as mandated by Federal and State laws. June 30, 2011 fund balance was $20,470.

Capital Projects – devoted exclusively to construction expenditures for schools as approved by the voters. No current projects $0 balance.

Working Cash Fund – does not make expenditures, but makes interest-free loans to the other funds of the district when they have cash flow needs. June 30, 2011 fund balance was $750,492.

Fire Prevention and Safety Fund – used exclusively to keep track of revenues and expenditures that relate to State-approved work identified as necessary for fire prevention and safety of students in buildings. June 30, 2011 fund balance was $0 (Note: funds transferred to O&M – Dist. budgets LS work without selling bonds).

District Financial Overview

How The Budget Is Monitored

There are numerous checks and balances built into the district’s financial system to maintain spending within the budgeted amounts. Every administrator has the responsibility for overseeing and managing the budget for his/her building or department.

The Board of Education receives monthly updates from the District Office on the status of revenues and expenditures. The Board of Education reviews monthly the list of bills and financial reports.

The records of the school district are examined annually in a comprehensive audit conducted by an independent auditing firm.

Education FundVoter Approved Maximum Rate of 3.10 – State 4.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

1

2

3

4

5

6

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

2.2 2.2 2.18105

3.05048

3.1 3.1 3.1 3.1 3.1 3.1 3.15023.35

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487

$359,209,070

$338,736,635

$4,068,763

$4,316,543

$4,536,355

$6,812,291

$7,521,787

$8,165,291

$8,906,705

$9,575,977

$10,446,452

$11,141,880

$11,316,013

$11,367,791

Ed Fund Tax RateEAVExtension

Special Education FundVoter Approved Maximum Rate of .04 –

State .80

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.04 0.04 0.039660.038460.03810.04 0.04

0

0.02 0.0190.0175 0.0216

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315 $336,982,308

$359,415,487

$359,209,070

$338,736,635

$73,978 $78,483 $82,489 $85,888 $92,445 $105,359 $114,925 $39,326 $85,431 $66,916 $43,482 $10,994

Special Educa-tion Fund Tax RateEAVExtension

Operations & Maintenance Fund

Voter Approved Maximum Rate of .375 – State .75

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100.330000000000001

0.350000000000001

0.370000000000001

0.390000000000001

0.410000000000001

0.430000000000001

0.450000000000001

0.470000000000001

0.490000000000001

0.510000000000001

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.375 0.375 0.37179

0.36055

0.375 0.375 0.375 0.375

0.365

0.381

0.44470.4375

$693,539 $735,774 $773,284 $805,175 $909,894 $987,737 $1,077,424 $1,211,881 $1,214,399 $1,368,913 $1,597,613 $1,497,551

$184,943,763

$196,206,511 $207,989,496

$223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

EAVExtensionO&M Tax Rate

Transportation Fund Voter Approved Maximum Rate of .20 –

State No Limit

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.2 0.2 0.198290.19230.19583

0.13328

0.01377

0.08402000000000010.07

0.115

0.066

0.2029

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487

$359,209,070

$338,736,635

$369,888 $392,413 $412,422 $429,442 $475,159 $351,055 $39,563 $294,481 $231,122 $393,342 $235,294 $678,587

Transporta-tion Tax Rate

EAV

Extension

IMRF FundNo Maximum Rate (Restricted by PTELL)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-0.0199999999999998

2.32452945780892E-16

0.0200000000000002

0.0400000000000002

0.0600000000000002

0.0800000000000002

0.1

0.12

0.14

0.16

0.18

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.0681

0.05340.04906

0.03827

0.0155 0.015920.017860.02466

0.00400000000000001

0.016

0.00400000000000001

0.0216

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487

$359,209,070

$338,736,635

$125,947 $104,774 $102,040 $85,464 $37,609 $41,933 $51,314 $150,225 $35,545 $45,959 $9,961 $10,994

IMRF Tax RateEAVExtension

Social SecurityNo Maximum Rate (Restricted by PTELL)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.1056

0.0816

0.097610.0804

0.0355

0.015920.017860.02466

0.00400000000000001

0.016

0.00400000000000001

0.0216

$184,943,763

$196,206,511 $207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

$195,301 $160,105 $203,019 $179,548 $86,137 $41,933 $51,314 $150,225 $35,545 $45,959 $9,961 $10,994

SS Tax RateEAVExtension

Tort FundNo Maximum Rate (Restricted by PTELL)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.0794000000000001

0.0633

0.07729

0.06006000000000010.06042

0.004460 0 0 0 0 0

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

$146,845 $124,199 $160,755 $134,125 $146,602 $11,747 $- $- $- $- $- $-

Tort Fund Tax RateEAVExtension

Working Cash FundVoter Approved Maximum Rate of .05 –

State .05

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.02

0.04

0.06

0.08

0.1

0.12

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.05 0.05

0.049580.048080.04763

0.00336

0.0261

0 0 0 0 0

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

$92,472 $98,103 $103,121 $107,372 $115,569 $8,850 $74,989 $- $- $- $-

$-

Working Cash Fund Tax RateEAVExtension

Lease FundVoter Approved Maximum Rate of .05 –

State .10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.05 0.05 0.04958

0.020080.01551

0.05 0.05

0.04

0.006420000000000010 0 0

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

$92,472 $98,103 $103,121 $44,842 $37,633 $131,698 $143,657 $67,834 $23,600 $- $- $-

Lease Fund Tax RateEAVExtension

Life Safety FundVoter Approved Maximum Rate of .05 –

State .10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.02

0.04

0.06

0.08

0.1

0.12

0.14

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

0.05 0.05 0.049580.047720.04763

0.03379

0.05

0.02468

0.00400000000000001

0.027

0 0

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

$92,472 $98,103 $103,121 $106,568 $115,569 $89,002 $143,657 $63,484 $28,898 $33,929 $- $-

Life Safety Fund Tax Rate

EAV

Extension

Totals Chart

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102.5

3

3.5

4

4.5

5

5.5

6

6.5

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

3.48123.42773.42774

4.193454.1814

4.016533.942783.97625

3.825263.88563.8934

4.2381

$184,943,763 $196,206,511

$207,989,496 $223,318,655

$242,638,291

$263,396,475

$287,313,075

$308,748,315

$336,982,308

$359,415,487 $359,209,070

$338,736,635

$6,438,246

$6,725,370

$7,129,339

$9,364,576

$10,145,679

$10,579,400

$11,328,123

$12,299,427

$12,902,638

$13,879,137

$13,988,062

$14,330,936

Total Tax RateEAVTotal Extension

Tax Rate & Operating Expense per Pupil Comparisons

DEKALB CO. TAX RATE COMPARISONS (for 2010 payable in 2011)

DeKalb -5.74140 Hiawatha – 5.34999 Sycamore - 5.27045 Hinckley Big Rock – 5.00168 Somonauk – 4.74511 Indian Creek – 4.57537 Genoa Kingston – 4.50651 Sandwich – 4.21205

OPERATING EXPENSE PER PUPIL

Sandwich - $9,395 State $11,537

District Expenses

FY ‘11 ALL SALARIES $13,599,238 or

50.28% ALL BENEFITS (TRS/IMRF, Ins, etc.) $6,604,504 or

24.42 % ALL PURCHASED SERVICE $2,324,905 or

8.6% Examples: Repairs, Maintenance, Utilities, Foods

Service ALL SUPPLIES & MATERIALS $1,013,241 or

3.75% Examples: Paper, Library Materials, Classroom

Supplies, Medical Supplies, Consumable Workbooks/Textbooks

ALL CAPITAL OUTLAY $964,515 or 3.55% Examples: Desks, Computers, Equipment, Buses,

Maintenance OTHER OBJECTS $2,540,816 or

9.4% Examples: Tuition Payments (outside programs),

Debt Service

District Expenses

Expenses SALARIES - 50.28%

BENEFITS - 24.42%

PURCHASED SERVICE - 8.60%

SUPPLIES & MATERIALS - 3.75%

CAPITAL OUTLAY - 3.55%

OTHER OBJECTS - 9.40%

State of Illinois PaymentsOn October 4, 2011, the State of

Illinois made their final payments for last school year – FY ’11 (two months earlier than last year).

As of October 26, 2011 the State of Illinois owes the District $666,665 for the current school year (FY ’12). Education Fund: $511,955 (76.79%) Transportation Fund: $154,710 (23.21%)

Sandwich CUSD 430BOE Team Members

Mr. Steve Skorup, President. Mr. Skorup is an Applied Technology instructor at Waubonsie Valley High School. He was elected to the Board of Education in 2011.

Mrs. Angie Turney, Vice-President. Mrs. Turney is an office manager. She was elected to the Board of Education in 2011.

Mr. Dale Hamilton, Secretary. Mr. Hamilton is an Information Technology supervisor for Caterpillar. He was elected to the Board of Education in 2009.

Mrs. Vicki Scharenberg, Member. Mrs. Scharenberg is a real estate agent. She was elected to the Board of Education in 2011.

Mrs. Jeanette Wright, Member. Mrs. Wright is a homemaker and community volunteer. She was elected to the Board of Education in 2009.

Mr. Bob Miller, Member. Mr. Miller is a VP of Finance at Lyon Workspace Products. He was elected to the Board of Education in 2011.

Mr. David Stahl, Member. Mr. Stahl is a diesel mechanic. He was elected to the Board of Education in 2009.

Parent & Citizen Contact Procedures

Who to ContactWhile members of the public are welcome to speak to the

Board ofEducation, please keep in mind that the Board of Education

recognizes other channels available to individuals who have a

question or concern.

A classroom question or concern should be discussed with the classroom teacher. If the issue is not resolved at the classroom level, the issue may be brought to the attention of the principal.

A school-level questions or concern should be discussed with the principal. If the issue is not resolved at the school level, the issue may be brought to the attention of the superintendent.

A district-wide question or concern should be discussed with the superintendent. If the issue is not resolved, the issue may be brought to the attention of the full Board of Education.

BOE Goals 2011-2012

I. The Learning Environment

A. Evaluate the EXPLORE, FACS & IT curriculum and programs at SMS & SHS.

B. Evaluate the middle school concept and its effectiveness on teaching and learning.

C. Explore increasing the implementation of certified Advanced Placement courses.

D. Review long term uses of purchased property regarding programs and services.

E. Plan improvements of buildings, grounds and facilities.

F. Develop action plans for students in the "does not meet" and "academic warning" categories of ISAT/PSAE assessments; and action plans to meet at or above state ACT benchmarks.

BOE Goals 2011-2012

II. Evaluation and Accountability

A. Explore various performance growth evaluation instruments within the learning community to address state rules and regulations; as well as for non-certified and extra-curricular activities.

B. Study effective methods of modifying the curriculum in all areas to address gaps and known student achievement concerns.

C. Complete implementation of Edline procedures.

BOE Goals 2011-2012

III. Employee Relationships & Internal Communication Staff Recruitment & Professional Development

A. Through the IBB process, analyze and discuss the implementation of Senate Bill 7 regarding school reform.

B. Support professional development opportunities for all administrators and staff.

BOE Goals 2011-2012

IV. Funding and Finance

A. Monitor revenues and expenditures; examine the budget for potential cost savings and reductions; and maintain positive fund balances.

B. Encourage staff to seek and write competitive grants to supplement school funding.

BOE Goals 2011-2012

V. Technology

A. Examine the feasibility of a rotating purchase of lap-top computers for all administrators and staff.

B. Enhance the implementation of the electronic registration and fee payment process.

C. Enhance and implement paperless Board of Education meeting packets.

D. Successfully implement the DeKalb County fiber optics program.

E. Examine methods to enhance the Local Area Network to better service teaching and learning needs.

BOE Goals 2011-2012

VI. External Communication: Parent & Community Involvement / Governmental & Public Alliances

A. Enhance and host the Community & Schools – be a part of the experience presentation; and utilize various media outlets to communicate District information.

B. Research the implementation of a District wide handbook (general and school specific) and electronic newsletter.

C. Provide and link public information and documents to the District’s webpage.

D. Explore and enhance college and career readiness programs targeting 8th grade students/parents through high school.

E. Enhance uses of the Alert-Now automated phone system.

QUESTIONS ??

…THANK YOU FOR BEING A PART OF THE PROCESS….