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SY 2018-19BUDGET APPROPRIATIONS
Weston Young, CPA – Chief Financial Manager
February 15, 2018
overview
3
1
2
3
4 Budget Appropriation
budget appropriation
5 key messages
Budget appropriation authorizes maximum spending
authority.
Projected cash flows create structural deficits which exceed
cash reserves.
Appropriation of rainy-day and referendum funds addresses
structural deficits.
budget appropriation
6 what is a budget appropriation?
An estimate of maximum
expenditures of the school
corporation from each fund.
Authorization from the
Board to spend a
maximum amount from
each fund for a fiscal year.
A submission to the
Department of Local
Government Finance (DGLF).
A line-item budget to allocate
resources to schools and
divisions.
A breakdown of expenditures
by use (salaries, benefits,
contracted services, etc.).
A guarantee of district revenues.
budget appropriation
7 key terminology
Levy - property tax proceeds
Appropriation – legal spending authority
Structural Deficit – amount of spending required for a level of service greater than revenues in a budget
year regardless of how well the economy is performing. A deficit which continues for a longer period of time
rather than a cyclical deficit which is related to short-term factors.
Circuit Breaker – unpaid property tax resulting in reduced property tax funds received by school district.
Indiana law limits the amount of property taxes paid by a taxpayer based upon their type of property and
the property’s fair market value. The maximum limits are commonly referred to as property tax caps.
Rainy Day Fund – board appropriated fund which accumulates prior year excess cash balances from other
board appropriated funds. Board resolution 3032-15 in July 2015 provides guidance on use of funds. The
funds are available to provide relief to support funding shortfalls, in any other fund, as necessary.
Fund Balance % - amount of cash in an appropriated fund as a percentage of the fund’s annual
expenditures. Cash divided by Annual Expenditures multiplied by 100%.
8
When What Who
January–FebruaryProject Revenues, and Determine School and
Operational NeedsAdministration and Staff
February 15 Conduct initial review of Budget Appropriation Administration and Board
February 20 and 22Conduct additional review of Budget
AppropriationAdministration and Board
February 23Publish first advertisement of Budget
Appropriation in Newspaper and on WebsiteAdministration and Staff
March 2Publish second advertisement of Budget
Appropriation in Newspaper and on WebsiteAdministration and Staff
March 5Conduct Budget Appropriation Public Hearing
(10 days before adoption)
Board of School
Commissioners
March 15 Approve Budget AppropriationBoard of School
Commissioners
April–June Utilize Authorized Appropriation to Develop
Line-Item BudgetsAdministration and Staff
budget appropriation
timeline
9
budget appropriation
Funds Requested
Levy
Proposed
Appropriation
1 General n/a $269,000,000
2 Debt Service $52,700,000 $36,300,000
3 Retirement/Severance Debt $4,250,000 $2,882,000
4 Referendum Debt 2008 $26,500,000 $21,063,000
5 Capital Projects $38,200,000 $51,400,000
6 Transportation $38,200,000 $40,300,000
7 Bus Replacement $12,400,000 $13,200,000
8 Total $172,250,000 $434,145,000
SY 2018–19: proposal to maximize revenue
Requested Levy (requested property-tax proceeds) – Amount of cash requested from local property taxes; this
amount is reduced by DLGF due to maximum levy and debt service reserve limitations.
Proposed Appropriation (spending authority/budget estimate) – Current cash balance plus projected maximum
annual expenditures; this is the amount needed to fund the desired activities of the school corporation.
Note: Debt funds have levies which exceed appropriations due to minimum cash balance required by
Indiana statute (IC 6-1.1-17-22).
Subject to change due to state, federal or county funding fluctuations Content updated 2.12.2018
10 Financial Landscape
11
financial landscape
A B C D E F
Funds Requested
Levy
Projected
Circuit Breaker
Projected Net
Revenue
Projected
Expenditures
Projected
Deficit
1 General n/a n/a $242,700,000 ($269,000,000) ($26,300,000)
2 Capital Projects $38,200,000 ($10,600,000) $27,600,000 ($32,000,000) ($4,400,000)
3 Transportation $38,200,000 ($11,200,000) $27,000,000 ($37,700,000) ($10,700,000)
4 Bus Replacement $12,400,000 ($4,700,000) $7,700,000 ($11,400,000) ($3,700,000)
Total Projected Operating Funds Deficit ($45,100,000)
SY 2018-19 revenues and expenditures
Subject to change due to state, federal or county funding fluctuations Content updated 2.12.2018
Recommended appropriations project structural deficits
12
financial landscape
Subject to change due to state, federal or county funding fluctuations Content updated 2.12.2018
FundsProjected Balance
6.30.2018
Projected
Net Cash Flow
Projected Balance
6.30.2019
General $18,700,000 ($26,300,000) ($7,600,000)
Capital Projects $10,000,000 ($4,400,000) $5,600,000
Transportation $0 ($10,700,000) ($10,700,000)
Bus Replacement $1,000,000 ($3,700,000) ($2,700,000)
Subtotal $29,700,000 ($45,100,000) ($15,400,000)
Cash flows based on proposed budget appropriations
SY 2018-19 projected cash flows
13 Recommendations
recommendations
14 authorize appropriations to address structural deficits
Funds Levy Appropriation
1 Rainy-Day n/a $18,919,896
2 Proposed Operating Referendum $92,492,139 $46,246,070
Authorize appropriation of rainy-day funds
Authorize appropriation of proposed operating
referendum funds
15
recommendations
Subject to change due to state, federal or local funding fluctuations Content updated 2.12.2018
Funds
Projected
Balance
6.30.2018
Projected
Net Cash Flow
Rainy-Day
Fund
Referendum
Proceeds
Projected
Balance with
Additional
Funds
6.30.2019
Fund
Balance
%
General $18,700,000 ($26,300,000) $0 $44,471,070 $36,871,070 14%
Capital Projects $10,000,000 ($4,400,000) $0 $0 $5,600,000 18%
Transportation $0 ($10,700,000) $14,469,896 1,775,000 $5,544,896 15%
Bus Replacement $1,000,000 ($3,700,000) $4,450,000 $0 $1,750,000 15%
Total $29,700,000 ($45,100,000) $18,919,896 $46,246,070 $34,519,896 14%
authorize SY 2018-19 cash flows
Fund Reserve Balance Policy (Board policy 6227) provides guidance on retaining reserves equal to at least 1 to 3
months or 8% to 25% of annual expenditures.
based with rainy-day and operating referendum funds
16 APPENDIX
general fund
17
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
General Fund and Related Supporting FundsCalendar Year 2010 through SY 2017–18 Projected
Education JobsRevenue
Fiscal StabilizationRevenue
Other LocalRevenue
Tuition SupportRevenue
Total Expenditures
General FundCash Balance
Content updated 2.12.2018
debt service funds
18
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Debt Service FundsCalendar Year 2010 through SY 2017–18 Projected
Other LocalRevenue
Misc. TaxRevenue
Property TaxRevenue
TotalExpenditures
Cash Balance
Content updated 2.12.2018
capital projects fund
19
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Capital Projects FundCalendar Year 2010 through SY 2017–18 Projected
Other LocalRevenue
Misc. TaxRevenue
Property TaxRevenue
TotalExpenditures
Cash Balance
Content updated 2.12.2018
transportation operating fund
20
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Transportation Operating FundCalendar Year 2010 through SY 2017–18 Projected
TemporaryLoans
Other LocalRevenue
Misc. TaxRevenue
Property TaxRevenue
TotalExpenditures
Cash Balance
Content updated 2.12.2018
bus replacement fund
21
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Bus Replacement FundCalendar Year 2010 through SY 2017–18 Projected
TemporaryLoans
Other LocalRevenue
Misc. TaxRevenue
Property TaxRevenue
TotalExpenditures
Cash Balance
Content updated 2.12.2018
rainy-day fund
22
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Rainy-Day FundCalendar Year 2010 through SY 2017–18 Projected
TemporaryLoans
Other LocalRevenue
Misc. TaxRevenue
Property TaxRevenue
TotalExpenditures
Cash Balance
Content updated 2.12.2018
long-term budget planning
23 estimated fund balances
Fund Balances 6.30.2016 6.30.2017 6.30.2018 6.30.2019
General and Rainy Day $72,000,000 $52,000,000 $37,000,000 $0
Debt Services $35,000,000 $26,000,000 $22,000,000 $21,000,000
School Lunch $30,000,000 $26,000,000 $23,000,000 $18,000,000
CPF/Transportation $33,000,000 $29,000,000 $11,000,000 $0
Other $30,000,000 $24,000,000 $16,000,000 $14,000,000
Total $200,000,000 $157,000,000 $109,000,000 $53,000,000
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
6.30.2016 6.30.2017 6.30.2018 6.30.2019
General and Rainy Day
Debt Service
School Lunch
CPF/Transportation
Other
Content updated 2.12.2018
33,408 32,59530,557 30,496
29,57027,988
26,14524,032 23,786
539
1,762
2,897 2,781
850 1,398 3,425 4,082
1,986 1,9741,903 1,602 1,616
1,563 1,563
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
SY 2010–11 SY 2011–12 SY 2012–13 SY 2013–14 SY 2014–15 SY 2015–16 SY 2016–17 SY 2017–18 SY 2018–19
IPS Operations Innovation-LEA Innovation-Non-LEA Turnaround
long-term budget planning
24
32,47031,473 30,979 30,921 31,917
32,54333,408 32,595
historical perspective: enrollment
32,212
Projection
25
$7,367 $7,332
$7,209 $7,265
$7,058
$6,732
$6,971
$6,934
$7,014
$6,400
$6,600
$6,800
$7,000
$7,200
$7,400
$7,600
2010–11 2011–12 2012–13 2013–14 2014–15 2015–16 2016–17 2017–18 2018-19
historical perspective: state fund budget $ per pupil
Projected
funding sources
Content updated 2.12.2018
long-term budget planning
26
$9,086,317,992 $9,024,119,677
$9,745,667,423 $9,667,203,109
$10,045,427,309
$10,738,720,168
$8,000,000,000
$8,500,000,000
$9,000,000,000
$9,500,000,000
$10,000,000,000
$10,500,000,000
$11,000,000,000
2013 2014 2015 2016 2017 2018
historical perspective: certified assessed value
Content updated 2.12.2018
long-term budget planning
27
Percent Change in Gross Assessed Value of
All Indiana Property 2008–2016
long-term budget planning
28 certified tax rates
2013 2014 2015 2016 2017 2018
Referendum Debt $0.2433 $0.0790 $0.1621 $0.2025 $0.0777 $0.1232
Retirement/Severance $0.0365 $0.0283 $0.0325 $0.0362 $0.0140 $0.0229
Debt Service $0.4249 $0.4014 $0.3958 $0.4654 $0.0983 $0.2516
School Bus Replacement $0.1108 $0.1145 $0.1089 $0.0735 $0.1125 $0.1094
Transportation $0.2954 $0.2929 $0.3036 $0.3478 $0.3323 $0.3036
Capital Projects $0.3720 $0.3728 $0.3475 $0.2916 $0.3387 $0.3229
$0.0000
$0.2000
$0.4000
$0.6000
$0.8000
$1.0000
$1.2000
$1.4000
$1.6000$1.4829
$1.2889
$1.3504 $1.4170
$0.9735
$1.1336
long-term budget planning
29 indiana forecast revenues 2017–19
Budget
2017
Budget
2018
Budget
2019
Average Change
2017–19
Revenues 15,389 15,780 16,378 3.2%
Sales Tax 7,433 7,630 7,886 3.0%
Indiana
Income Tax5,473 5,661 5,997 4.7%
Corporate
Income Tax914 949 975 3.2%
Gaming 432 419 402 (3.6%)
All Other 1,137 1,121 1,119 (0.8%)
long-term budget planning
30
Indiana State Appropriations as Percent of
Indiana Total Personal Income (estimated 2017–19)
long-term budget planning
31 indiana budget appropriations 2017–19
Budget
2017
Budget
2018
Budget
2019
Average Change
2017–19
Appropriations 15,989 15,861 16,430 1.4%
K–12 Education 8,117 8,218 8,375 1.6%
Higher Education 1,902 1,935 1,962 1.6%
Medicaid 2,242 2,107 2,365 2.7%
Health/Social Services 1,267 1,353 1,407 5.4%
Public Safety 983 1,003 1,021 1.9%
All Others 1,478 1,246 1,300 (6.2%)
long-term budget planning
32
example allotments
33 example: traditional school funding
Local State Federal
Combination
Funds Distributed to
School Through IPS
School Admin. & Choice
Programming
Title I Program
Student-Based
Allocation
Funds Distributed
Directly to School
Services Provided
to School
Food Services
Facilities &
Transportation
Special Education
& EL
Content updated 1.18.2018
example allotments
34 example: traditional school funding
Through SBA
Outside SBA
Allocation Source (Under SBA) $ PP Students Dollars
Base Allocation $3,985 349 $1,390,765
Grade Weight $400 161 $64,400
Poverty Weight $500 302 $151,000
Baseline Supplement - - - - - - $45,000
Transition Adjustment - - - - - - $120,000
Strategic Support - - - - - - - - -
Total: $1,771,165
Restricted Funds (not comprehensive)
Title I Allocation $124,238
Title II/III Allocation $16,799
Total: $141,000
Locked Resources (not comprehensive)
Custodial Services $120,338
Food Service $218,695
Special Education $342,000
English Learners $78,987
School Admin. and Central Services $253,251
Choice Programming $0
Transportation Services $400,695
Facilities Maintenance $500,695
Total: $1,915,000
Local State Federal
Combination
Content updated 1.18.2018
example allotments
35 example: innovation-lea school funding
Funds Distributed to
School Through IPS
School Admin. & Choice
Programming
Title I Program
Student-Based
Allocation
Funds Distributed
Directly to School
Services Provided
to School
Food Services
Facilities &
Transportation
Special Education
& EL
Local State Federal
Combination
Content updated 1.18.2018
example allotments
36 example: innovation-lea school funding
Allocation Source (Under SBA) $ PP Students Dollars
Base Allocation $3,985 349 $1,390,765
Grade Weight $400 161 $64,400
Poverty Weight $500 302 $151,000
Baseline Supplement - - - - - - $45,000
Transition Adjustment - - - - - - $120,000
Strategic Support - - - - - - - - -
Total: $1,771,165
Restricted Funds (not comprehensive)
Title I Allocation $124,238
Title II/III Allocation $16,799
Total: $141,000
Locked Resources (not comprehensive)
Custodial Services $120,338
Food Service $218,695
Special Education $342,000
English Learners $78,987
School Admin. and Central Services $253,251
Choice Programming $0
Transportation Services $400,695
Facilities Maintenance $500,695
Total: $1,915,000
Per-Pupil Agreement
Services and OperationsPer AgreementLocal State Federal
Combination
Content updated 1.18.2018
example allotments
37 example: innovation-non-lea school funding
Local State Federal
Combination
Funds Distributed to
School Through IPS
State Tuition &
Complexity Support
State Special
Education Support
Funds Distributed
Directly to School
Title Programs
Special Education
& EL
Food Service
Services Provided to School
(if elected in agreement)
Food Service
Facilities &
Transportation
*
Special Education
& EL
*Non-LEA innovation schools may utilize state tuition dollars to fund transportation and facilities; however,
some innovation operators are provided transportation and facilities due to access to IPS property-tax
funded services. See individual non-LEA innovation agreements for more details. Content updated 1.18.2018
example allotments
38 example: innovation-non-lea school funding
Allocation Source $ PP Students Dollars
Tuition Support $5,088 349 $1,775,712
Complexity Index Support $1,661 349 $579,689
Special Education Support – Level 1 $500 10 $5,000
Special Education Support – Level 2 $2,300 3 $6,900
Special Education Support – Level 3 $8,976 1 $8,976
Equity Retainer - - - - - - - - -
Total: $2,376,277
Per-Pupil
Agreement
Services and
Operations
Per Agreement
Restricted Funds (not comprehensive)
Title I Allocation $124,238
Title II/III Allocation $16,799
Total: $141,000
Locked Resources (not comprehensive)
Custodial Services ($120,338)
Food Service $218,695
Special Education $321,300
English Learners $78,987
School Admin. and Central Services ($253,251)
Transportation Services* ($400,695)
Facilities Maintenance* ($500,695)
Total: ($656,000)
*Non-LEA innovation schools may utilize
state tuition dollars to fund transportation
and facilities; however, some innovation
operators are provided transportation and
facilities due to access to IPS property-tax
funded services. See individual non-LEA
innovation agreements for more details.
Local State Federal
Combination
Content updated 1.18.2018