SPRING FINANCE WORKSHOP 2010 DPI SCHOOL FINANCE TEAM Brad Adams, Consultant Lori Ames, Consultant...

SPRING FINANCE WORKSHOP 2010DPI SCHOOL FINANCE TEAMBrad Adams, ConsultantLori Ames, ConsultantKaren Kucharz Robbe, ConsultantJerry Landmark, Acting Director

First, a thank youto you!The Finance Team would like to thank everyone weve come in contact with this year for your patience and diligence in submitting your reports and other information we need. Your help in getting reports and information to us on time is essential, and were glad to be working with you;Well try to help you get your reporting and other financial work done more efficiently, and in return we ask for your continued cooperation and help.

Handouts

PowerPoint Handouts

How We Get the Word Out

Information is giving out. Communication is getting through.

Last year we announced the SFS Team will no longer send general paper mailings to school district administrators.

CommunicationRather, district administrators and others designated by the administrator will receive notification by e-mail of an electronic newsletter posted to the Internet.It is a component of the teams overall efforts and goal to improve communication with school districts.It is also an effective cost savings strategy for the team and the department.

CommunicationThe SFS team listserve will continue as well as Late Breaking Information on the teams website

Listserve subscribers will receive notification of the new electronic newsletters

Communication

PI 1500 District Contacts ReportA required report used: To identify staff to receive communications from the SFS team;To identify and authorize staff to submit reports to the department.We will ask that you update the PI 1500 Report in early June for the 2010-11 school year.

CommunicationLate Breaking Information has become a communications portal and will include all major communications (newsletters, listserves, webcasts) arranged by most recent first;We will archive these communications each fiscal year for future district access;Additionally, the team is working on a way that you can sort communications by topic.

Communication

RSS Feeds Real Simple SyndicationSimilar to listserve e-mails;Alerts subscribers to web page updates;Focus is on particular topic;Voluntary subscription;School Finance team has four feeds:Late Breaking InformationSchool Revenue LimitsSchool ReferendumMediasite Catalog

Economic Recovery and ReinvestmentAmerican Recovery and Reinvestment Act of 2009 (ARRA)

ARRA SFSF (State Fiscal Stabilization Fund) ReportingThe American Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5, provided a number of funding opportunities to public schools and libraries. Some use a distribution formula, while others take the form of competitive grants.

ARRA Reporting 2009-10 In 08-09 districts received State Fiscal Stabilization Funds (SFSF) as a replacement for some state equalization aid;Districts were asked to code the expenditures to Source 718We are currently being audited by the DOE Office of the Inspector General for use of funds in 2008-09.

ARRA Reporting 2009-10 In 2009-10 the same will occur part of a districts state equalization aid will be from the federal Stabilization Fund;Districts can find the amount they will be receiving on the SFS website under Equalization Aid;Districts should attach Project Code 810 to expenditures associated with stabilization funds;Districts will be asked to account for these funds in the following manner.

ARRA Reporting 2009-10 In a nutshell, districts: will complete an application form, PI-1595-APP, along with detailed account information; incur the expenditures between July 1, 2009 and May 15, 2010, file a claim form PI-1595-CLM, and receive payment June 21, 2010;Complete a survey regarding jobs created/saved

ARRA Reporting 2009-10 Districts complete and file PI-1595-APP, including detailed expenditure information, by April 16th via email attachment;Districts receive approval from SFS Team;Districts incur expenditures between July 1, 2009 and May 15, 2010;Reimbursement claim PI-1595-CLM is submitted to SFS team by May 24, 2010;If a district makes changes to the expenditure detail, a revised spreadsheet must be submitted;

ARRA Reporting 2009-10 June 1 15 - SFS Team reviews all district claims and approves for payment;Districts will be paid on June 21, 2010, as part of June Equalization Aid payment;District auditors will verify expenditures during the audit process, identified using Project Code 810;Districts will be given a checklist to help with the process lets look at it.

District Checklist for ARRA Reporting 2009-10 1.Reviewed the estimated portion of the district's general equalization aid eligibility that will be stabilization fund revenue (2009-10) at: http://www.dpi.wi.gov/sfs/xls/2009-2010_Fiscal_Stabilization_Payment.xls 2.Filled out the general information portion of the SFSF application, PI-1595-APP, and read through the assurances and instructions. The form will be available at the SFS Team Home page.

District Checklist for ARRA Reporting 2009-10 3.Filled out the application/claim details section of the application by identifying allowable costs and pulling together supporting documentation for audit of the expenditure amount claimed. Project code 810 has been set up to identify the expenditures. The initial box has been checked. 4.Signed the PI-1595-APP form and submitted by April 16, 2010 as an e-mail attachment to: [email protected] . The signature must be actual so the form should be printed, signed, scanned and attached to the e-mail.

District Checklist for ARRA Reporting 2009-10

5.District has been notified via e-mail from DPI of application approval; 6.Costs are incurred, and if applicable, changes to the original application account details section are made on the same form as originally used in the application and are attached to the claim form. The amended box has been checked;

District Checklist for ARRA Reporting 2009-10 7.PI-1595-CLAIM form is filed by filling in the general information portion of the SFSF claim, and spreadsheet if different from original application submission, checking the appropriate account detail box, signing the form and submitting it to DPI by May 24, 2010 as an e-mail attachment to: [email protected]. The signature must be actual so the form should be printed, signed, scanned and attached to the e-mail.

District Checklist for ARRA Reporting 2009-10 8.District has received the SFSF allotted them along with the final equalization aid payment on June 21, 2010; 9. If applicable, amendments to the financial budget report are made;10.Documentation of the expenditures has been provided to your auditor; 11.SFSF survey has been filed by June 23 with DPI via on-line survey tool.

ARRA Reporting 2009-10 Just so youre aware: The DPI has not officially received the ARRA Stabilization authorization; Application was made January 11 and we expected to receive approval in 6-8 weeks; Requirements for 09-10 accounting and auditing may change depending on federal guidelines.

ARRAThe latest DPI information on the Recovery and Reinvestment Act can be found at:

http://www.dpi.state.wi.us/recovery/index.html

ARRA you can link to individual programs from the DPI websiteThe ARRA provides a number of program grants to Wisconsin schools and districts:Educational Technology Homeless Children and Youth Individuals with Disabilities Education Act, Part B Qualified School Construction Bonds Qualified Zone Academy Bonds School Lunch Equipment Teacher Incentive Fund Teacher Quality Enhancement Grants Title I-A Title I School Improvement

Whats New in School Finance?High Cost http://www.dpi.state.wi.us/sfs/highcost.html Data Warehouse http://www2.dpi.state.wi.us/sfsdw/ New Web LookEnergy Exemption 65.90 reportingSchool Level reporting http://dpi.wi.gov/titleone/arra_reporting.html

EQUALIZATION AIDSection 1: De-mystifying Shared Cost

Section 2: A Chat About 2010-11 General Aid

Equalization AidSection 1: De-mystifying Shared Cost(ha!)

Why Do You Need to Know This?Shared Cost, along with Membership and Property Value, determines Equalization Aid.

You can better understand one of the 3 main inputs, and thus, explain swings in your aid.

You can better guesstimate what your aid might be, based on what you know about changes in your shared cost. (more on that later..)

General Fund (10)

Debt Service Funds (38 & 39)

Capital Projects Fund (41) (only certain aidable expenditures)

Plus, a few odds and ends.Inputs for Shared CostEqual Aid calc uses prior-year data.

Expenditures that are funded bylocal tax levy orEqualization Aid(Special Adjustment Aid)Shared CostWorking Definition

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Total Fund 10 Revenues12Fund 10RevenuesSegregatedSegregate Revenues (Part B on the aid worksheet)

Property Taxes, General State Aid, and a bit more Property Tax-Src 210 (includes levy 211, chargebacks 212, mobile home fees 213, TIF closeouts 219) Computer Aid-Src 691 General State Aid-Src 620 (includes High Poverty) Impact Aid Non-Deductible (DPI-computed amount) Reorganization Settlement-Src 850 Long Term Operational Borrowing-Src 873, 874 Property Tax and Equalization Aid Refund-Src 972Fund 10 Revenue Group #1Clearly-defined, finite list.

All Other Receipts (not exhaustive) All State and Federal Grant Revenues Tuition Revenue Earnings on Investments Gate Receipts/Fees & Fines Federal and State Aid Transits Compensation for Sale of Loss of Fixed Assets E-Rate Refunds Etc.Fund 10 Revenue Group #2We split revenues to get at the dollar amount for Group #2 because.

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Total Fund 10 Expenditures12Fund 10Group #2 Revenues Reduce Total Expenditures (Line C6)Expenditures Reduced by Group #2 Revenues2

Fund 10 Revenue Terminology

Group #2All Other Receipts (not exhaustive)Deductible ReceiptsNon-Deductible ReceiptsProperty Taxes, General State Aid, and a bit moreGroup #1

Fund 10Expenditures Altered (+/-)By ExpendituresSubtractions:

10E 411000 838 + 839 Transfers to the Debt Service Funds

10E 491000 950Reorg Settlement

10E 492000 972Property Tax Chargebacks/Equal Aid Pymnts

Addition:

38E & 39E Operational Debt, Interest

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Total Fund 10 Expenditures12Fund 10 Total Expenditures AlteredExpendituresAltered2Shared

Cost

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$012Answer to Shared Cost Question Involves Observing What Changes2Shared

Cost

Fund 10 Pop Quiz Question!

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #1: Revenues unchanged. Added expense.

Fund 10 Pop Quiz Question 1 Answered!

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02All revenues unchanged. Add expense. Increased expenses, increased shared cost.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #2: Add tuition revenue. Expenses unchanged.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Added tuition revenue (deductible receipts).Expenses unchanged. Reduces shared cost.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #3: Add TIF closeout revenue. Dont add any expense.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Added TIF closeout revenue (non-deductible receipts), deductible receipts unchanged. Expenses unchanged. No shared cost change.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #4: Add tuition revenue. Add equal expense.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Added deductible receipts, expenditures increased by equal amount. No change in shared cost.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #5: Add tuition revenue. Spend only 75% of it.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Added deductible receipts, increased 10E by 75% of receipt amt. Shared cost drops by 25% of receipt amount.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #6: Add TIF closeout revenue. Spend only 75% of it.


$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Added non-deductible receipts, increase expenses by 75% of receipt. Shared cost increases by 75% of receipt.

Funds 38 & 39Works the same, but with slightly different accounts.

All debt-related accounts.

$800,000$700,000$600,000$500,000$400,000$300,000$200,000$100,000$0Total Funds 38 & 39 Revenues12Funds 38 & 39Segregate RevenuesRevenuesSegregated

Transfer from General Fund,Property Taxes, Refinancing Revenue Transfer from General Fund-38R+39R 411000 110 (use 10E 411000 838 + 839 as proxy) Property Tax-Src 211 Payment in Lieu of Taxes-Src 220 (just Milwaukee) Non-Revenue Receipts (refinancing borrowing)Funds 38 & 39 Revenue Group #1Clearly-defined, finite list.

All Other Receipts (generally, exhaustive because there cant be many more options in these funds) Earnings on Investments Gifts, Fundraising, Contributions Premium and Accrued Interest from Debt Re-Fi Etc.Funds 38 & 39 Revenue Group #2

$800,000$700,000$600,000$500,000$400,000$300,000$200,000$100,000$0Total Funds 38 & 39 Expenditures12Expenditures Reduced by Group #2 Revenues2Funds 38 & 39Group #2 Revenues Reduce Total Expenditures

Funds 38 & 39 Revenue Terminology

Deductible ReceiptsGroup #2All Other Receipts (generally, exhaustive)Non-Deductible ReceiptsGroup #1Transfer from General Fund,Property Taxes, Refinancing Revenue

Addition:

Aidable Fund 41 Expense

Subtractions:

38 & 39E 282000 000Refinancing Expense

38 & 39E 283000 000Operational Debt PaymentFunds 38 & 39Expenditures Altered (+/-)By Expenditures

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Total Funds 38 & 39 Expenditures12Funds 38 & 39 Total Expenditures AlteredExpendituresAltered2Shared

Cost

Fund 38/39 Pop Quiz Question!

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #1: Levied $600,000 for debt payments. Paid $700,000 in debt payments.

Fund 38/39 Pop Quiz Question 1 Answered!

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Levy is non-deductible receipt. Increase in shared cost will be the amount the expenses were increased - $700,000.

Fund 38/39 The FINAL Pop Quiz Question!

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Question #2: Received a Donation from Buy-A-Brick & Help-Retire-the-Debt fundraiser. Paid debt with it.

Fund 38/39 Pop Quiz Question 2 Answered!

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0

$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$02Deductible receipt. Increased expenses by equal amount. No change in shared cost.

Total Shared Cost Finally Reduced by Odds and Ends Indigent Transportation

Impact Aid Non-Deductible Causing Neg Tertiary Aid(only affects about 20 Impact Aid districts)

Costs of Suing the State

Equalization AidSection 2: A Chat About2010-11 General Aid

Using What You Know About Shared CostYour districts Shared Cost, Membership, and Property Value (in comparison to what all other districts are doing) determine your districts Equalization Aid.

Plus, the amount of State money to be distributed is also a MAJOR determinant.

Equalization AidTotal General Aid appropriation for 2010-11 is the same amount as in 2009-10, so a zero increase in the pot. (as compared to the $147M decrease we saw from 2008-09 to 2009-10)

Equalization Aid formula is a cost-sharing formula, so with a zero increase in the pot, the effect for everyone would be exactly the same IF everyones value, kids, and cost was the same as 09-10.So, what about 2010-11?

2009-10 Cost & Aid1General Aid*2010-11 Cost & Aid* Grids are NOT to proportion. For conceptual understanding only !!General Aid AppropriationTotal StatewideShared Cost

Equalization AidWhat about two-thirds funding?

Two-thirds NEVER meant that each district would get 66.7% state aid!

It was a STATE computation that added together several statewide revenue sources (all local levies, state and categorical aid and levy credits) and multiplied that number by 66.7%. The resulting dollar amount was distributed by the formula.

Two-thirds is no longer law.

Look at Your Districts TrendIn the Equalization Aid Formulahttp://dpi.wi.gov/sfs/buddev_eq.htmlGreen Scan Bar > Longitudinal Data > Equalization Aid > Longitudinal Analysis of General and Equalization Aid Components

Use Executables To Try To Estimate Aidhttp://dpi.wi.gov/sfs/workexe.htmlGreen Scan Bar > Worksheets > DPI Executable Worksheets > Equalization AidSo, are you de-mystified yet?

REVENUE LIMITSSection 1: Explaining Line 1 to Line 7

Section 2: Successfully Getting from One Year to the Next(another review, but this is important!)

Section 3: New Exemptions for 2011-12

Section 4: Energy Exemption from 2009-10 now, the Rest of the Story

Revenue LimitsSection 1: Explaining Line 1 to Line 7

What Affects Revenue Limit Authority?$MembershipState Per-Member Inflationary IncreaseExemptions

MembershipA 3-year rolling average is used to minimize the financial impact of a sharp incline or decline in membership.

Base Average Line 2Current Average Line 6Sample District Data from 2009-10:

Sept 2006Sept 2007Sept 2008Sept 2009Summer FTE28252325% (40%)1110910Sept FTE1,0081,0101,0781,115Total FTE1,0191,0201,0871,125

State Per-Member Inflationary IncreaseHistorically, this has been the annual percentage change in the consumer price index (CPI) for all urban consumers, US city average.

Low: $190(+) in 1993-94 High: $274.68 in 2008-09

$200 for 2009-10 and 2010-11. $275 for 2011-12. Back to CPI increase in 2012-13.

The Effects of Membershipand Inflationary Increase1.) Increasing Membership2.) Stable Membership3.) Declining Membership4.) Severely-Declining Membership4 DistrictsYour district will fall into one of these categories.

See if you can pick it out!

Cedar Grove (CESA 7)Base Revenue (Line 1) $9,405,944Max Rev Lim (Line 7) $9,937,285+ 35 Change in the 2 Averages$531,341 IncreaseDifference is rounding.

Increase from $200$200 X 1,042 = $208,400Change from Membership+35 X $9,226.82 = $+322,939Total$531,339

Butternut (CESA 12)Base Revenue (Line 1) $1,921,500Max Rev Lim (Line 7) $1,958,1000 Change in the 2 Averages$36,600 Increase

Increase from $200$200 X 183 = $36,600Change from Membership0 X $10,700 = $0Total$36,600

Lancaster (CESA 3)Base Revenue (Line 1) $9,273,949Max Rev Lim (Line 7) $9,288,167-17 Change in the 2 Averages$14,218 IncreaseDifference is rounding.

Increase from $200$200 X 933 = $186,600Change from Membership-17 X $10,139.92 = $-172,379Total$14,221

Elmbrook (CESA 1)Base Revenue (Line 1) $77,327,304Max Rev Lim (Line 7) $77,327,304-150 Change in the 2 Averages$0 IncreaseDifference is rounding.

Increase from $200$200 X 6,838 = $1,367,600Change from Membership-150 X $11,508.47 = $-1,726,271Hold Harmless (Line 7B)+$358,657Total$-14

Where Is This Data For My District?http://dpi.wi.gov/sfs/buddev_rl.htmlGreen Scan Bar > Longitudinal Data > Revenue Limit > Sources of New-Year Revenue Limit Authority

Revenue LimitsSection 2: Successfully Getting from One Year to the Nexthow these all work togetherRecurring ExemptionsNon-Recurring ExemptionsNew-Year BaseCarryoverUnderlevy

Recurring Exemptions (Lines 8A-E) are base-building that is, if the district taxes for any of this additional authority, the levy amount is automatically included in the succeeding years base. Any unused Recurring authority is eligiblefor 100% carryover into the next year.

Non-Recurring Exemptions (Lines 10A-C) are not base-building that is, if a district taxes for any of these exemptions, the amount is not included in the succeeding years base.Any unused Non-Recurring authority is not eligible for carryover in the next year districts have one, and only one opportunity to use Non-Recurring exemptions.Revenue Limits

Revenue LimitsRecurring Exemptions

Prior-Year Carryover

Transfer of Service

Transfer of Territory

Federal Impact Aid Loss

Recurring Referenda to Exceed (if year 1 of authority)

Non-Recurring Exemptions

Declining Enrollment

Non-Recurring Referenda to Exceed

Line 7 Hold Harmless

Other

DPI is specifically directed to ensure non-recurring exemption authority is not included in the subsequent years base:Revenue Limits121.91(4)(f)2 states: Any additional revenue received by a school district as a result of subds. 1. and 1m. shall not be included in the base for determining the school districts limit under sub. (2m)(e) for the following school year.

1. is the 100% declining enrollment exemption for all districts.1m. is the 100% declining enrollment exemption for both Shawano and Gresham.Declining Enrollment Authority:

Revenue Limits121.91(7) states: If an excess revenue is approved under sub. (3) for a nonrecurring purpose, the excess revenue shall not be included in the base for determining the limit for the next school year for purposes of this section.Non-Recurring Referendum:121.91(8) states: Any additional revenue received by a school district as a result of this subsection shall not be included in the base for determining the school districts limit under sub. (2m) for the following school year.Line 7 Hold Harmless:

Revenue LimitsLine 7 Hold Harmless DefinedThe extra $165,101 is considered a non-recurring exemption!

So, how does this really work when districts can have any combination of recurring and non-recurring exemptions, Line 7 hold harmless, plus an underlevy?

Whats in the base in the next year?

Whats the carryover?

The answers might change the fiscal decisions you make!Revenue Limits.lets look at a number of examples.

Base

$10,000,000$10,000,000Inflationary IncreaseTransfer of ServiceRecurring ReferendumPrior Year Aid plusLevies

(no backouts)#1 - Recurring Exemptions, Levied to Max2009-102010-11

Aid+Levy

Base

This district used all of its authority and has no carryover authority to 10-11, Line 8A.

Base

$10,000,000$9,800,000Inflationary IncreaseTransfer of ServiceRecurring ReferendumPrior Year Aid plusLevies

(no backouts)#2 - Recurring Exemptions, Under-levy2009-10

Aid+Levy

Base

This district will have $200,000 of carryover authority to 2010-11 in Line 8A.Underlevied by $200,0002010-11

Base

Inflationary IncreaseDecl Enroll - $150,000Prior Year Aid plusLeviesminus$150,000#3 - Non-Recurring Exemptions, Levied to Max2009-10

Aid+Levy

Base

This district will have no carryover authority to 2010-11 in Line 8A.2010-11

Base

Inflationary IncreaseLow Revenue IncreaseLine 7 - $46,000Prior Year Aid plusLeviesminus$36,000#5 - Line 7 Hold Harmless (non-recurring), Recurring, Under-levy2009-10

Aid+Levy

Base

This district will have no carryover authority to 2010-11 in Line 8A.Underlevied by $10,000Transfer of Service2010-11

Base

Inflationary IncreaseTransfer of ServiceLine 7 - $46,000Prior Year Aid plusLevies

(no backout)#6 - Line 7 Hold Harmless (non-recurring), Recurring, Under-levy2009-10

Aid+Levy

Base

This district will have $10,000 in carryover authority to 2010-11 in Line 8A.Underlevied by $56,0002010-11

Base

Inflationary IncreaseLine 7 - $40,722Rec Ref - $252,707Prior Year Aid +Levies#7 - Line 7 Hold Harmless (non-recurring), Recurring, Non-Recurring & Under-levy2009-10

Aid+Levy

Base

Plus, this district will have $43,955 of carryover authority to 2010-11 in Line 8A.Decl Enroll - $168,030Underlevied by $252,707$43,9552010-11

Recurring Exemptions (Lines 8A-E) are base-building that is, if the district taxes for any of this additional authority, the levy amount is automatically included in the succeeding years base. Any unused Recurring authority is eligiblefor 100% carryover into the next year.

Non-Recurring Exemptions (Lines 10A-C) are not base-building that is, if a district taxes for any of these exemptions, the amount is not included in the succeeding years base.Any unused Non-Recurring authority is not eligible for carryover in the next year districts have one, and only one opportunity to use Non-Recurring exemptions.Revenue Limits (repeated slide)

Revenue LimitsSection 3: New Exemptions for 2011-12

School SafetyNursesTransportationAll non-recurring exemptions.

Revenue Limit Exemption Safetyss. 121.91(4)(L)Amount:$100 x number of pupils enrolled or $40,000, whichever is greater

Requirements:BOE resolution to increase revenue limitBOE and local law enforcement agency jointly develop a plan that specifies the purposes of additional revenuePlan is consistent with the school safety plan required under ss. 118.07(4)Plan is submitted to DPI

Revenue Limit Exemption Safetyss. 121.91(4)(L)Uses:Purchase school safety equipmentFund compensation costs of security officersSchool safety expenditures consistent with the school safety plan

Revenue Limit Exemption Nursesss. 121.91(4)(m)Amount:what is spent in the 2nd previous year to pay salary/fringe benefit costs of school nurses employed by the school board and school nurses providing nursing services in the school district under a contract with the BOERequirements:BOE resolution to increase revenue limit(2011-12 Exemption Based on 2009-10 Data)

Revenue Limit Exemption Transportationss. 121.91(4)(n)Amount:2011-12: 50% of the amount by which a districts transportation costs exceed the statewide average in the 2nd previous school year

2012-13 & forward: 100% of amount

Requirements:BOE resolution to increase revenue limit

Revenue Limit Exemptions2011-12Additional information to be forthcoming as administrative rules are developed.

Revenue LimitsSection 4: Energy Exemption from 2009-10 and now, the rest of the story

09-10 Energy ExemptionRemaining TimelineNovember, 2009June 30, 2010 incur expenditures related to projects identified in resolution.

Public Notification complete the addendum within the Budget Hearing 65.90 documents for 2010-2011. Should include the energy efficiency expenditures and savings for public notice from the 2009-10 fiscal year.

DPI Notification addendum is due within 2 weeks following the annual meeting. (online referendum reporting)

Auditor will confirm the actual expenditures related to project resolution actual expenditures related to project performance report in 65.90 materials

DPI makes adjustments to the 10-11 Revenue Limit Calculation backs out of base the amount of energy exemption levied backs out of base amount of levy not expended by June 30

10-11 Energy ExemptionResolution should identify SPECIFIC expenditures.

District has an obligation to clearly communicate what is being used to determine savings...accountability is to your public in 65.90 materials.

Expenditures must be made within in fiscal year 2010-11 (the same fiscal year as the levy exemption).

PROPERTY TAX ISSUESFrom the Levy.. to the Tax Bill

(into the great unknown)

Todays Burning QuestionsHow can one taxpayers bill go up by 15% and the guys across the road from him go up by 25%?

How can the tax bills show an increase in the school district tax levy of 5.8% when the % year over year increase on the PI-401 was only 2.98%?

What do TIF districts have to do with any of this?

Burning Answers ()Tracking the details that cause these results, given the many underlying municipalities in a school district, is virtually impossible, but by looking at a school district with boundaries that are coterminous with one single underlying municipality, we can tease out the effects. ...but first, the background basics

and the easiest one first

TIF Districts

TIF EstablishedMuni #4Muni #3Muni #2Muni #1TIF value frozenTIF-OUT value Apply municipal levy rates to TIF district value increaseResulting revenue goes towards retiring the infrastructure debtYear 2Year 3

TIF (Tax Incremental Financing) Take-AwaysTIF districts are set up by municipalities in blighted areas to encourage economic growth.

Municipality fronts the money for the infrastructure improvement by selling bonds.

Municipality uses bond proceeds to improve the property.

Value of TIF property is frozen at creation of TIF.

For duration of TIF, taxing units (county, city, town, school district) can tax the frozen value of TIF property in additional to all other taxable properties in the municipality (including their increases) to fund ongoing expenses. Fall tax values are TIF-OUT.

The resulting tax rates from the taxing units are applied only to the value increase in the TIF district over the base (frozen) value and collected only from the property in the TIF district. The revenue yield is used to pay back the bonds.TIF (Tax Incremental Financing) Take-Aways

What Do School Districts Need to Know About TIFs?School districts (as well as all taxing units) will forego the access to the increasing value of the property in the TIF district Fall Tax Values are TIF-OUT. (But, one could argue that the value would not have increased if not for the TIF, so its really not a loss.)

Equalization Aid uses TIF-OUT values in the computation, so theoretically, a school district would be compensated in the formula for the lost tax revenue.

At the expiration of the TIF, presumably, a significant amount of new value will come back onto the tax rolls (increasing the value used in the Equalization Aid formula).

Sometimes there is TIF close-out revenue, meaning that the tax yield from the TIF district was more than needed to pay back the bonds. TIF close-outs are booked into SRC 219.

If the TIF does not produce the desired results, the taxpayers in that municipality will be paying for the cost not covered by the revenue yield from the TIF district.What Do School Districts Need to Know About TIFs?

Muni AMuni BMuni CAssessed Rate =SD Dollar Levy needed from Muni A Taxpayers Assessed ValueAssessed Rate =SD Dollar Levy needed from Muni B Taxpayers Assessed ValueAssessed Rate =SD Dollar Levy needed from Muni C Taxpayers Assessed Value

How Assessed Valuation Works2 Residential TaxpayersTotal Muni Property Value = $200,000$100,00050%Total Muni Levy = $4,000$2,000$2,000$100,00050%

How Assessed Valuation Works2 Residential TaxpayersTotal Muni Property Value = $400,000Total Muni Levy = $4,000$2,000$2,000$200,00050%$200,00050%

Total Muni Property Value = $400,000Total Muni Levy = $6,000$3,000$3,000$200,00050%$200,00050%How Assessed Valuation Works2 Residential Taxpayers

Equalized Value vs. Assessed ValueMuni AMuni BMuni CTotal School District LevyDivided Based on Equalized ValueEqualized Muni ValueEqualized Muni ValueEqualized Muni Value(assessment ratio)(assessment ratio)(assessment ratio)Assessed Rate =SD Dollar Levy needed from Muni A Taxpayers Assessed ValueAssessed Rate =SD Dollar Levy needed from Muni B Taxpayers Assessed ValueAssessed Rate =SD Dollar Levy needed from Muni C Taxpayers Assessed Value

Reasons (so far) That Answer Question #1Individual property owners value increases as a percent of the municipality.

Municipal levy increases and/or individual property owners value increases as a percent of the municipality.

Municipality goes through a re-assessment.

Brown Deer School District

Tax Base Composition Shifting(what happens within just 1 municipality)

Chart1

100

Sheet1

100

Brown Deer School DistrictTax Base Composition

Item2008-092009-10% ChangeResidential63.66324%64.55778%1.41%Commercial30.79951%29.52597%-4.13%Manufacturing2.41129%2.65067%9.93%Agricultural.00019%.00019%1.17%Personal3.12577%3.26538%4.47%100.000%100.000%0.00%

ResidentialBrown DeerTax Base Composition in 2008-09

Chart1

63.66324

30.79951

2.41129

0.00019

3.12577

Commercial

Value

Sheet1

Value

Residential - 63.7%63.66324

Commercial - 30.8%30.79951

Manufacturing - 2.4%2.41129

Agriculture - .019%0.00019

Personal-3.13%3.12577

ResidentialShifting Value, Shifting Tax BurdenEven Without Considering Any Tax Levy Increases!Tax Base Composition in 2009-10

Chart1

63.66324

19

2.41129

0.00019

3.12577

Commercial

Value

Sheet1

Value

Residential - 63.7%63.66324

Commercial - 30.8%19

Manufacturing - 2.4%2.41129

Agriculture - .019%0.00019

Personal-3.13%3.12577

Reasons (so far) That Answer Question #2(and can compound the answer to #1)Tax base composition shifting.

Reasons That Answer Question #2(and can compound the answer to #1)

Tax base composition shifting.

The percentage the credits (School Levy, Lottery and Gaming, First Dollar) were of the total (levy) in their respective year changed from 2008-09 to 2009-10.

Tracking the details that cause these results, given the many underlying municipalities in a school district, is virtually impossible.

But, now you have a list of items that might be contributing to the cause.ConclusionSo, are you de-mystified yet?

Spec Ed Annual ReportThank you to everyone for their patience with our first round of the new report!Although we experienced some bumps, I think we are on the right track.We received some great ideas for improvement, and weve been taking those into consideration.

Spec Ed Annual Report2009-10 Enhancements:

Faster processing time!

More robust search function no longer need to know the exact account number.

Audit trail by account. Report that prints the addendum.

Spec Ed Annual Report2009-10 Enhancements Edit: The special education annual account numbers/amounts must equal the full annual report account numbers/amounts. This edit will actually be a show-stopper in the full annual report.How will we accomplish this..

Spec Ed Annual ReportFirst: The district completes and submits the Spec Ed Annual Report by 9/20. (Notice the new due date!)

Pushing the due date back will mean districts will have more time to ensure they are inputting final, quality data.

As a result of better automation, I dont need as much time to process the first payment in November.

Spec Ed Annual ReportSecond: District will complete the full PI 1505 Annual Report by October 1st.

If the full annual matches the spec ed annual, the district may submit. If the two reports do not match, the district must either fix the full annual or go back and fix the spec ed annual before submitting the full annual.

Spec Ed Annual Report2009-2010 Enhancements:

Although we wont have a show-stopping edit for the grant payments in/ grant payments out, we hope to have a report that you can view that will show which entity reported making grant payments to your entity.

Spec Ed Annual Report2009-2010 Enhancements

I am going to try and have the Wisconsin Act 221 edits built directly into the report.

The ability to build in these edits is dependent upon available programmer time.

Supplemental Spec Ed AidEligible Entities: School Districts,

Payment Basis: Payments calculated on prior year factors

Payment Schedule: one-time payment in June

Amount To Be Paid: $1,750,000 in state funds

Supplemental Spec Ed AidProgram Eligibility:

School District revenue limit authority is below the state average.

The school districts expenditures for special education constitute more than 16% of the school districts total expenditures.

The school districts membership is less than 2000.

Supplemental Spec Ed AidBeginning in 2009-10 and thereafter, the department will distribute aid to eligible school districts proportionally based upon each districts expenditures for special education in the previous yearexcept that in any school year a school district may not receive less than $50,000, and may not receive more than $150,000 or an amount equal to 50 percent of the school districts expenditures for special education in the previous school year whichever is less.

Supplemental Spec Ed AidA district may not collect both Supplemental Spec Ed Aid and High Cost Special Ed Aid The Department will pay the greater of the two unless directed to do otherwise by the district.

Categorical Aid % Estimates

A Few Clarifications for Counting KidsHomeboundCounting students who are 20 & 21;Counting students who are in a jail, detention center or hospital. Youth Challenge AcademyFirst a quick review

General Counting GuidelinesPI 1563 Sept/JanAfter the adjustments are made, you will get to count the student for aid and revenue limit membership if:

The student is a district resident or in some cases has recently moved away.

The District is financially responsible for the students educational program.

The student is present for instruction on the count date or is absent but meets the before and after rule.

Basic Membership Count RuleCount for membership those resident students in attendance for instruction on the count date.

.OR.

if they were absent on the count date,count only if the Before and After rule is true:

Count the student if he/she was present for instruction at least one day before the count date and at least one day after, and didnt change residency during the period of absence.

PI-1563 Pupil Count Process* Needs to be converted to fulltime equivalency.

Adjusted Head CountThe adjusted head count is converted to full-time equivalency (FTE) for both revenue limits and equalization aid.

Incorrect data in the internet-based report will cause the FTE for both revenue limits and equalization aid to be inaccurate. Data must be revised on-line.

What About 4K? or Preschool? If your district operates a 4 year old kindergartenPupil must be at least 4 years old by Sept 1st. 4-Year-Old Kindergarten must be universal and open to all children. When a district offers 4K, it must be open for all age eligible children in the district. Districts may not phase-in enrollment nor have waiting lists for the program.

Do districts need to get approval to receive state funding for a new 4K program? The district must first submit to the DPI the enrollment report (PI 1203) due July 1. The DPI will contact the district about its 4K program to ensure that it meets the requirements of state statutes. Districts will then be permitted to report 4K students on the PI 1563 Pupil Count Report to determine eligibility for revenue limit/equalization aid purposes. Web page: http://dpi.wi.gov/ec/ec4yrpag.html Contact Jill A. Haglund E mail: [email protected] Phone: (608) 267-9625

What About Preschool? Preschool by itself is not an eligible category.

Only pupils enrolled as preschool special education are eligible to be counted.

Pupil must be at least 3 years old by the count date.The district must be fulfilling the needs identified in the IEP.There is no minimum or maximum time requirement.

What About Homeschooling? Students enrolled in a home-based private educational program (home-schooling) under s. 118.15 (4) may not be counted by school districts to generate state general aid or revenue limit authority with the exception of part time attendance under s. 118.145 (4) Wis. Stats., which allows the district to count the student for general aid purposes.

See the DPI letter regarding non-traditional education:

http://www.dpi.wi.gov/sfs/pdf/ltr200909.pdf

What About Parent Paid Tuition? Under state law, all methods of district paid tuition are described in s. 121.78, Wis. Stats. Tuition payments to parents are not permitted under this statutory section.

See the September 2009 DPI letter regarding non-traditional education:http://www.dpi.wi.gov/sfs/pdf/ltr200909.pdf

What About On-Line Classes? 30 hours of professional development for K-12 online teachers required starting July 2010

Wisconsin Act 222, enacted in April of 2008, states that, "Beginning July 1, 2010, no person may teach an online course in a public school, including a charter school, unless he or she has completed at least 30 hours of professional development designed to prepare a teacher for online teaching. [Wisconsin State Statute 118.19(13)]

For more information, go to the Virtual School Web Page:http://dpi.wi.gov/imt/onlinevir.html

What About Homebound?Pupils receiving appropriate homebound instruction will be included in the final adjusted count. Depending on the program, they may or may not require an IEP.

Most often, they will be on a homebound teachers log which will verify that they received instruction directly by the district.In this case, the pupil would be on the initial headcount.Use the basic membership count rules.

20 vs. 21 ClarificationIf a regular education student: is 20 when he/she enrolls and receives instruction, the district must provide services and can count the student. turns 21 prior to enrolling and receiving instruction, the district is not required to provide services and cannot count the student. enrolls prior to turning 21, but turns 21 before attending classes, the district is not required to provide services and cannot count the student.

20 vs. 21 ClarificationIf a special education student: is 20 prior to the first day of classes according to the school calendar, the student can enroll any time during the year, even after turning 21, and the district must provide services and can count the student.

What About Incarcerated Students?A district that provides education services to a child placed in a childrens home such as a jail, detention, or hospital within the district and who has been or could have been counted as a resident pupil by a different district in the pupil count report under sec. 121.05, may request state tuition under sec. 121.79(1)(a). These children should not be counted by the district claiming state tuition as a resident pupil under sec. 121.05 on PI-1563 Pupil Count Report.

In other words:If you have a jail in your district and are required to provide services to a student from another district:Apply for state tuition reimbursementDont count the student

Incarcerated StudentsA district that provides education services to a pupil placed in a childrens home in the district in which he/she has been or could have been counted as a resident pupil may request state tuition as well as count the pupil as a resident pupil under sec. 121.05 on the PI 1563 Pupil Count Report. But:

Incarcerated StudentsState tuition under sec. 121.79(1)(a) is paid based on actual costs. The state equalization aid paid to the district will be deducted from the state tuition claim. If the statewide amount of state tuition claims made during the fiscal year exceeds the legislatures appropriation, all claims are prorated.

Incarcerated StudentsIf you have a jail in your district and are providing services to a student from your own district:Count the student orApply for state tuition

If you apply for state tuition any aid received will be deducted from the claim.

What About the Youth Challenge Academy?Wisconsin National Guard Challenge Academy is a residential program committed to improving the quality of life for 16 to 18 year old at-risk teens.

School districts with cadets must contribute a portion of the costs of students enrolled in the Challenge Academy from their district.

History of cost on the internet.

Youth Challenge AcademyState statute allows the school district to count the student, for revenue limit and equalization aid purposes. The Youth Challenge Academy on-line report will assure that proper membership credit is given to each district.

Districts report Youth Challenge Academy students in both September and January

Resources:http://www.dpi.wi.gov/sfs/doc/challfunding.doc

What About the June Census?All districts must report the number of residents that are at least 4 years old but not yet 21.

HEAD COUNT not an FTE

Ages 4-13 if in a K-8 district

Ages 14-20 if in a high school district

Not part of a districts membership but an important piece of data collected.

June CensusPer 120.18 Wisconsin Statutes - 2 methods available to calculate the census head count

Conduct a Physical Census on June 30th - 120.18(1)(a)1

Generate a number based on a mathematical calculation - 120.18(1)(a)2.

June Census Why?The headcount entered into the census report is used to calculate the amount of common school fund (library) aid the district is to receive.

The money the district receives should be spent within the same fiscal year. An aid estimate is given in January and paid in May.

Resourceshttp://www.dpi.wi.gov/sfs/membrpt2.html

General Count Instructions for the PI 1563 Workbook

PI 1563 Pupil Count Workbook Form for Draft Use

Common School FundAKALibrary Aid

Common School Fund - Finance Team TimelineJune 30 Districts obtain census information which is used in following year for calculation of Library Aid. Census numbers are due in August.

January - The Board of Commissioners of Public Lands (BCPL) informs the Department of Public Instruction (DPI) of the estimated interest that will accumulated in the Common School Income Fund by April 15th. This is the estimate of funds which will be available for Library Aid. Calculate a state wide per pupil amount. Calculate estimate for each district.

This is usually a fairly good estimate.

April The BCPL informs the DPI of the actual total interest that has accumulated in the Common School Income Fund. Calculate actual aid available per census.

May 1st Library Aid payment made to districts. Funds to be spent during current fiscal year.Common School Fund - Finance Team Timeline

Common School Fund - ReminderIt is essential that districts spend all their Common School Fund library aid, including carryover, in the same year they receive it.

Not doing so could cause the district to lose this aid.

Common School FundThe common school fund payment to districts for the 2009-2010 school year will be approximately $25.85 per census student. Although this is still an estimate, and cannot be guaranteed, it is a conservative estimate and the department feels confident that this is the amount that will be distributed. http://www.dpi.state.wi.us/sfs/comsch.html

Common School FundPayments to districts will be made on Monday, April 27, 2009.

Each district must spend their total Library Aid allocation for appropriate library materials by June 30 of that same year.

These materials include books, newspapers, periodicals, other media resources, and to a limited extent, computers.

Common School FundThe calculation of each school districts Common School Fund (library aid) is available on the team's website. Specifically, Addenda A82 in your districts 2009 Budget Report can provide information about carryover and current year library aid.

Common School FundTo see the information in A82 follow the following steps:From the finance team web page http://dpi.wi.gov/sfs/index.html, go into the School Finance Reporting Portal and navigate to your district.

Click on the Financial Data Home and go into the Budget Report (PI-1504).

Click on the current year 2008-2009 and continue past the password.

On the left sidebar, click on: Addenda.

On the right side, click on: Addendum A82.

Common School FundIn the table labeled Current Year Budget you will see a spot for a carryover amount from the previous year. If dollars are in this box, it represents dollars you already received but have not yet spent appropriately. For this year these unspent dollars will be allowed to carry over into this current year.

Since districts have already received this carryover money, it is assumed that it is part of your fund balance. It is imperative that districts spend all dollars received, including any carryover, by the end of this fiscal year.

Common School FundBesides the carryover amount, the table will also include a dollar amount received related to your reported Census Estimate. The carryover plus the census estimate gives you the estimated amount available to spend. Although this is considered a good estimate, the actual amount will not be known until April 27th, when the dollars are actually sent to the schools.

Common School FundFor your convenience, we have included in the Addenda A82 Table the amounts you reported in your 2009 budget report. A positive number on the bottom line of the table (Allocation Remaining to Spend) is an indication that you may need to consider spending more than you have planned.

Common School Fund - ReminderWith the passage of the state budget in October 2007, s.43.70(3), Wis. Stats., the use of the Common School Fund, was amended.

With the amendment, school districts may now use up to 25 percent of the [CSF] moneys received in a fiscal year to purchase school library computers and related software to be housed in the school library.

These purchases must be made in consultation with the school districts library media coordinator, as per PI 8.01(2)(h), Wisconsin Administrative Code.

Common School FundFor further information about the Common School Fund, go to:http://dpi.wi.gov/sfs/comsch.html

If you have questions regarding school library purchases that meet the requirements of the Common School Fund contact Nancy Anderson, School Library Media Consultant, Instructional Media and Technology (608) 267-9287 [email protected] For questions regarding school library aid and accounting contact Brad Adams, School Finance Consultant (608) 267-3752 [email protected]

Summer SchoolFees

Summer School - FeesIf the district claims state aid under s.121.14, Wis. Stats

There shall be no cost to the resident student beyond individual use supplies (towels, gym clothes, band instruments, notebooks, pencils), and textbooks or similar items (workbooks). Fees for equipment, admission to a facility or event, transportation, shuttling, and food and lodging for off-campus activities are prohibited if a district claims state aid.

Items for which fees are charged must be legally permitted and actually purchased for summer school use.

Summer School - FeesIf the class is not aided, required, or credited, fees may be charged but must be based upon the actual cost of the class.

Summer school fees may not be used to subsidize other classes or students.

Summer School - FeesIf the district does not claim summer school aid

School boards may establish and collect reasonable fees for social, recreational or extracurricular summer classes and programs which are neither credited toward graduation nor eligible for state aid [s. 118.04 (4)]. School boards may also provide and charge for transportation for extracurricular activities such as school athletic contests, school games, after school practice, late activity, school outings or extracurricular school field trips [s. 121.54 (7)].

Such activities are not, however, eligible for state aid or categorical aid and may not be claimed for summer school membership.

Summer School FeesHow do auditors review summer school fees?Audit procedures available to auditors at: http://www.dpi.wi.gov/sfs/m_audit.html titled Sample of Summer School Fee Auditing

Summer School FeesWhat will auditors ask for?PI-1804W-2 (Worksheet)Summer school list of classes and feesShould not be a flat feeExpenditures (by course) for the classes that charge feesRun a detailed report of the appropriate function and object and identify for auditor those used for summer schoolMay be asked to pull some invoices

Summer School FeesWhat will auditors test for?Fees are not charged as a flat fee across all coursesCosts identified by course are eligible costsCosts that are eligible do not exceed fees charged (by course)

Fees should not be a flat fee across the board. If it is, each course must be supported by enough allowable cost to justify the fee.

Example: FeePupilsTotalElementary Gym Class $20.00 25$ 500Extended Year Mathematics $ 0.00 30$ 0Beginning Strings$50.00 20$1,000Drama Class $50.0020$1,000

Auditor does not need to check expenditures for Math class. Summer School - Fees

Detail of the Elementary Gym Class Towels $ 225 Pens, pencils $ 75 Uniforms $ 750 Water bottles $ 75 Handouts $ 25

Total Spent: $ 1,150Total Collected:$ 500 OK

Summer School - Fees

Detail of the Beginning Strings Workbooks $ 200 Pens, pencils $ 50 Band instruments $ 250

Total Spent: $ 500Total Collected: $ 1,000 Not OK


Detail of the Drama Class Wardrobe (made by pupils) $ 1,500 OK if kept by pupilTeacher $ 2,950 Not allowable Lighting $ 500 Not allowable Handouts $ 240

Total Spent: $ 5,190$ (3,450) Allowable Spent: $ 1,740 Total Collected: $ 1,000 OKSummer School - Fees

FindingsElementary Gym Class OKExtended Year MathematicsOKBeginning StringsNot OKDrama Class OK

Result: DPI will reduce pupil minutes for the Beginning Strings class. Depending on the FTE loss incurred, there could be a revenue limit penalty.


Summer SchoolFor further information about Summer School, go to:http://www.dpi.state.wi.us/sfs/summ_sch.html

Contacts: Direct general summer school questions to:Amy Wick (608) 266-8938 Email: [email protected] Direct questions concerning financial issues to:Brad Adams (608) 267-3752 Email Brad Adams: [email protected]

Transfer of ServiceA Few Reminders

Transfer of ServiceWhat Transfer of Service is:

a recurring exemption to the revenue limit

based on WI Stat. 121.91(4)(a)

an increase on the local tax levy

Transfer of ServiceWhat Transfer of Service does:

helps the district cover unexpected costs for incoming Spec Ed/ESL (English as a Second Language) transfers

helps the district cover the cost of new operation expenses that were once provided by another municipality

Transfer of Service

Instructions can be found at:

http://dpi.wi.gov/sfs/transerv.html

Transfer of Service

Work in Progress We may see minor changes to the on-line format but On-line reporting is functional.On-line reporting is the required method

Click here - Transfer of service test site

Transfer of ServicePart C Summary Sheet

Transfer of ServicePart C Summary SheetOnce this sheet is submitted, the TOS request process is completed. It can be amended up to the due date.Estimate is Auto FilledExpected is Your Actual Request

Transfer of ServiceSummary SheetThere is a separate Part C Summary Sheet for Special Education and Limited English Proficiency.

Both Part C Summary Sheets are due on or before August 20th (tentative). It can be amended at any time up to the due date.

The Part C Summary Sheet is the actual Transfer of Service request and completes the process for the TOS request.

Transfer of ServiceFor further information about Transfer of Service, go to:http://dpi.wi.gov/sfs/transerv.html

Or contact:Brad Adams, School Finance [email protected]

Thanks For Listening Any Questions?Dont hesitate to call or email with questions!Brad Adams 608-267-3752 [email protected] Karen Kucharz Robbe 608-267-9707 [email protected] Lori Ames 608-266-3464 [email protected] Landmark 608-267-9209 [email protected]

**These are important changes and they will be announced to school districts a number of times in the upcoming months.

*Currently have approximately 10-15 paper mailings per year sent to the school district administrator.

Most staff access this information not as a paper copy from the superintendent but from a listserve message or via Late Breaking Information.

The SFS team will continue to send when appropriate a paper mailing to individual districts.

The newsletter concept was introduced to school district administrators and staff with the January 5 newsletter. *A little reassurance.

The listserve will continue to provide weekly updates on a need basis.*To ensure that district administrators and district staff receive notice of the information, the team is creating a new report that will be pre-populated to the extent that it can with the names and e-mail addresses of staff currently on file at the department.

The district administrator or designee will submit this report with the names of staff to receive the newsletter, listserve bulletins and program area updates such as special education and transportation. This report is to ensure that there is no lapse in the right district staff getting the right information in a timely manner.

This report will also allow the superintendent to identify and authorize staff to submit data to the department. There will no longer be one password for all SFS reports. This is part of the teams report and data security upgrade.**************************************How can you understand (and explain to others) whats happening to the resource-level in your district? We will look at the 3 major factors.*Walk through slide. The Revenue Limit computation uses the difference or change in these 2 averages. The current year is always the last one in the current average.**So, what have we done? used membership and the inflationary $200 to get a new number for the new year. But what, exactly happened? Lets dig deeper.

We will look at 4 actual districts and see how the $200 increase and their membership affected their Line 7. They represent the 4 types found across the state. See if you can pick your type out!*The numbers we are using are all district-specific. The only common number is the per-member increase of $200.*The numbers we are using are all district-specific. The only common number is the per-member increase of $200.*The numbers we are using are all district-specific. The only common number is the per-member increase of $200.*The numbers we are using are all district-specific. The only common number is the per-member increase of $200.****************************Emily does the people explanation here.*Just to recap so that they have something written.***Unprinted, but spoken: Sometimes municipal managers do not understand that the levy is apportioned ONLY on TIF-OUT values and the resulting rate is applied to the tif increment to get the revenue to pay off the bonds.**This is where we start the explanation of how municipalities can be different.

*Focus on just 2 taxpayers in one of the municipalities.*Value increase does not necessarily mean tax increase. Depends on how everyone is increasing. Here both increased at same rate. (assume no levy increases yet)*Value increase, plus levy increase. Tax increase was because of the levy increase.*Back to first slide. Now well look at effect of unequal increases between the 2 taxpayers. *So taxpayer can have a value increase, but if everyone around increased faster, original taxpayer might even see a decrease!

*Introduce concept of equalized vs assessed. Not all assessors are alike, and there are over 3400 different municipalities across the state, each assessing differently. Plus, municipalities arent required by law to re-assess every year, although there are certain parameters of how close they have to be to market (full) value.

So there is a disparity across municipalities. Department of Revenue uses recent sales data to convert assessed to equalized (or full value). The ratio of assessed to equalized is called the assessment ratio. Changes every year for every municipality.

Levy is apportioned based on equalized value.

So, in addition to the effect of what is happening between taxpayers within a municipality, a complete municipality can have a reassessment. (click, and animation makes the red and green increase. Blue stays the same. A municipal re-assessment can also cause a single taxpayers

*Number 4 segues us into Brown Deer

It explained Brown Deer, but this reason, plus any and all of the previous 3 can be the reasons for any 1 specific change in a property.

Lets look more closely at Brown Deer.**Number 4 segues us into Brown Deer


Lets look more closely at Brown Deer.*Number 4 segues us into Brown Deer


Lets look more closely at Brown Deer.**************************************Because it is a recurring exemption, it will have an effect on the following year revenue base. It will also impact the shared costs which will impact the following years general aid.

Handout of State Stat. 121.91(4)(a).

*While a district will likely have to front the expense in the initial year, transfer of service will allow the district to reimburse itself in the following fiscal year.

Sometimes, especially in the case of a transfer from another government unit, the district will know the exact cost in advance and then is able to apply within the same fiscal year as the initiation of the new expense.*******

SPRING FINANCE WORKSHOP 2010 DPI SCHOOL FINANCE TEAM Brad Adams, Consultant Lori Ames, Consultant...

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