WPCSD BUDGET DISCUSSIONFY2015 & FY2016

MARCH 3, 2015

White Pine County School District

Presentation Goals

Provide a preliminary and broad overview of school finance

Provide timeline for budget and staffing decisionsProvide information about state, federal and local

revenueProvide information about WPCSD General Fund

expenditure assumptions and informationProvide information about WPCSD fund balancesFactors that influence expendituresConclusion

Budget Dates & Information

2/15 Department of Taxation issues preliminary revenue projections 3/15 Dept. of Taxation provides final revenue projections 3/25 Dept. of Taxation provides final abated revenue projections for property taxes 4/15 File Tentative Budget (NRS 354.596) 4/25 Final estimate of net proceeds of minerals provided to Dept. of Education 5/1 District’s must notify teachers of employment (NRS 391.3196) 5/16 Mandatory Tentative Budget Public Hearing (3rd Wednesday in May)

(NRS 354.596) 5/31 Department of Education notifies school district of per pupil basic

support based on updated revenue from Taxation. 6/2 End of regular Legislative Session 6/8 Adopt Final Budget (NRS 354.598) 8/1 School districts notified of final adjustment to projected minimum textbook

expenditure requirements based on projected enrollment (NRS 387.206(2)) 8/25 Final adjustments incorporated into prior year-end DSA adjustments 9/17 Official Enrollment for funding purposes (NRS 387.1233 – last day of

the first school month) 10/31 Audit Report is Final – prior year fund balance is official (NRS 354.624(2)) 1/1 School districts are required to amend their “final budget” on or before

1/1 (NRS 354.598005(9)

Sources of Funding

Federal Sources Primarily Grants or restricted funds General Fund: Secure Rural Schools (unrestricted) included in FY2015 but must

be reauthorized at the federal level.

State Sources Categorical funding (restricted – a.k.a. grants) Special appropriations (restricted) General Fund (unrestricted)

Local Sources General Fund Taxes: Property taxes, sales taxes, govt services tax (aka motor vehicle

registration) Debt Services Fund: Property taxes, interest, bond & debt proceeds Capital Funds: Interest earnings, sales taxes, gifts and donations, net proceeds of minerals Other (indirect costs, tuition, etc.)

Outside Allocations Private grants, donations, scholarships

Fund Balance Not considered revenue and poor fiscal practice to fund ongoing expenditures with fund

balance.

Fund Accounting

A fund is a set of accounts, segregated for a specific purpose in accordance with laws and regulations or special restrictions and limitations.

The General Fund is the District’s largest fund, is unrestricted and can be used to support other funds.

Restricted Funds (i.e. grants, capital, etc..) can only be used for their specific purpose. Using the fund in any other manner constitutes a breach of trust and violation of law.

General Fund

The General Fund is the District’s operating fund and is used to pay for expenses related to the District’s primary purpose – education.

GF Accounts for approximately 70%+- of total governmental revenues.

Funds are not restricted and can be used as directed by the Board of Trustees (i.e. “transfers out”)

Because this is the largest unrestricted fund, the District typically prepares budgets based on how factors influence the General Fund.

Nevada Plan

Constitutional and Legislative Declarations “Uniform System of Schools” (Article 11, Section 2)

“Guaranteed per pupil level of educational financial support” (NRS 387.121)

“Reasonably equal educational opportunity” (NRS 387.121)

“recognizing wide local variations in wealth & costs per pupil” (NRS 387.121)

State should supplement local financial ability to whatever extent

“expressed in a formula” (i.e. DSA Formula)

Per Pupil Funding

White Pine County School District P. J ohnson

REVENUE REPORT - FY2016 3/10/2015 8:58

ENROLLMENT Weighted Total Description

1 PRE SCHOOL (Weighted = Total x 0.6)

2 WEIGHTED KINDERGARTEN (Weighted = Total x 0.6)

3 ELEMENTARY (Weighted = Total)

4 SECONDARY (Weighted = Total)

5 UNGRADED6 TRANSPORTED OUT [((PreK + K) * 0.6) + (1through 12 students)] 1381.6 FY2013

1303.4 FY2014

7 TOTAL ENROLLMENT (Add lines 1 through 6) 1303.4 1212.4 FY2015

8 BASIC SUPPORT PER - FY2013 (Estimate) $7,376 Provided by DOE

9 TOTAL BASIC SUPPORT (line 8 x Line 7) 9,613,878

ASSESSED VALUATION - Abated

10 Total Property Secured and Unsecured $424,868,321 Provided by DOE & DOT

New Property

Existing Unsecured

Centrally Assessed

Secured

Unsecured

NET PROCEEDS OF MINES

11 $20,179,054.00 $20,179,054 Provided by DOE & DOT

12 TOTAL ASSESSED VALUATION (line 10 + line 11) $445,047,375 Provided by DOE & DOT

Charter Schools (245,283) Provided by DOE

13 DSA Adjustment (1/3 * .0075 * Line 12) (1,483,491) Calc per NRS 387.1235

14 LSST Adjustment (3,017,504) Calc per NRS 387.1235

15 STATE APPORTIONMENT (subtract lines 13 & 14 from line 12) $4,867,600 0.51 % of Basic Support

FY2014 & 15 General Fund Budget

(Audit 11/1/2014)

FY2014 ending 6/30/14 FY2015 FY2015 FY2015

FY2015 Inc/(Dec) compared

with FY2014 Budget

FY2015 Inc/(Dec) compared

with FY2014 Budget

Description Actual Final Amended Projected $ Diff $ Diff

Revenue 12,736,845 12,283,204 12,339,710 12,339,710 (397,135) 56,506 Expenditures (12,270,899) (11,891,822) (11,770,573) (11,770,573) 500,326 121,249 Transfers to Other Funds (1,697,183) (1,636,019) (1,707,959) (1,707,959) (10,776) (71,940)

Operating Deficit (1,231,237) (1,244,637) (1,138,822) (1,138,822) 92,415 105,815

Other SourcesTransfers In - 800,000 - - (800,000) Beginning Fund Balance 2,930,588 599,363 1,699,351 1,699,351 (1,231,237) 1,099,988

Est. Ending Fund Balance 1,699,351 154,726 560,529 560,529 (1,138,822) 405,803

Prepaids 16,583 2,326 2,326 2,326 Stabilization Fund 805,803 - 405,803 405,803 OPEB 152,400 152,400 152,400 152,400 Unassigned/Unrestricted 724,565 -

Total Fund Balance 1,699,351 154,726 560,529 560,529

FY2015 & FY2016 Preliminary

(Audit 11/1/2014) FY2014 ending

6/30/14 FY2015 FY2016

Description Actual Amended Preliminary

Revenue 12,736,845 12,339,710 12,006,780 Expenditures (excluding designated fund balance) (12,270,899) (11,770,573) (11,908,408) Transfers to Other Funds (1,697,183) (1,707,959) (1,742,199)

Operating Deficit (1,231,237) (1,138,822) (1,643,827)

Other SourcesTransfers In - - - Beginning Fund Balance 2,930,588 1,699,351 560,529

Est. Ending Fund Balance 1,699,351 560,529 (1,083,298)

Prepaids (Designated Fund Balance) 16,583 2,326 16,583 Stabilization Fund 805,803 405,803 - OPEB (Designated Fund Balance) 152,400 152,400 152,400 Unassigned/Unrestricted 724,565 -

Total Fund Balance 1,699,351 560,529 168,983

Local Revenue excludes property tax abatement. FY2015 abatement was $828,547

General Fund Revenue Projections

WPCSD uses projections provided by the Nevada Department of Taxation and Department of Education 98% of Total GF Revenue

Per Pupil Funding will not be available until the education budget has been finalized by the Legislature

Additional categorical funding may be available but also must be finalized by the Legislature

If DOT or DOE do not provide information, we can not include it in our budget.

WPCSD does not alter or change these projectionsProjections for miscellaneous and federal revenue

provided by the District

Charter Schools Charter schools reduce the revenue available for other schools NRS 387.124  Apportionments to school districts, charter schools....

2.  Except as otherwise provided in subsection 3 and NRS 387.1244, the apportionment to a charter school,..., is equal to the sum of the basic support per pupil in the county in which the pupil resides plus the amount of local funds available per pupil pursuant to NRS 387.1235.... (a.k.a. outside revenue)

WP FY2015 Per Pupil Amount $7,376 2/3 of the property taxes Government Services Tax

Information in the table above is based on FY2015 per pupil funding.Charter School Local Revenue - Outside Revenue Amount

2/3 Property Taxes $1,750,257.00Govt. Services Tax $532,228

Total Outside Revenue $2,282,485

Divided by Student Enrollment (WPCSD 1,209.8 + Charter 151.2) 1361

Charter School Per Pupil Amount $1,677.06

Estimated Charter School Enrollment

Charter School Enrollment 151.2 studentsState will reduce DSA by approximately

$253,571 for outside revenueFY2016 enrollment for funding purposes will

be based on 83.2 fewer studentsFY2017 enrollment for funding purposes will

be based on 93.6 fewer students (drop of 176.8 students in two years)

Student Enrollment

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015Actual Actual Actual Actual Actual Actual

Full Full Full Full Full FullEnrollment:

A PreKindergartners 31 42 40 13 26 14B Kindergartners 99 97 116 123 98 112C-1 First Graders 106 91 101 124 107 95C-2 Second Graders 113 105 95 104 98 105C-3 Third Graders 97 112 106 100 94 99C-4 Fourth Graders 114 90 107 109 94 81C-5 Fifth Graders 102 104 86 106 90 81C-6 Sixth Graders 95 97 108 89 100 89C-7 Seventh Graders 113 92 94 112 82 89C-8 Eighth Graders 111 113 98 99 116 76C-9 Ninth Graders 130 110 112 98 105 112C-10 Tenth Graders 125 128 99 114 95 93C-11 Eleventh Graders 116 124 124 106 109 90C-12 Twevlth Graders 90 119 114 121 116 112E Ungraded Students 1 1 1 4 2

F Total 1442 1425 1401 1419 1334 1250% Increase/-Decrease 0.70% -1.18% -1.68% 1.28% -5.99% -6.30%

Students Transported:(Weighted Enrollment)

G From other States ("In") 17.2 18 23.6 25 25 24.2H To Other States ("Out") 3 2 8 8 8 6I Transported, Out Less In: 14.2 16 15.6 17 17 18.2

K Total ("F" + "I") 1456.2 1441 1416.6 1436 1351 1268.2

Weighted Enrollment 1404.2 1385.4 1354.2 1381.6 1301.4 1217.8

State Basic Support 7,376$

Description

Preliminary Inflation Factors

Revenue: Net Proceeds of Minerals (Preliminary Projection is ½ of the prior year) Ad Valorem Revenue (abated: $828,000 FY2015) Statewide per pupil amount $7 less than prior year (Preliminary)

Expenditures Group Insurance: 15% Other Insurance: 10% Wages: 2% (est. impact of range and step)

Estimated impact on total wages for range progression and steps for all employees

This does not represent a % increase to the wage/salary schedules PERS: 2% (range and step) and 2.25% rate increase Worker’s Comp: 2% (range and step) Utilities: 3% Gas/Fuel: 3% Remaining line items for FY2015 will be based on the FY2014 budget or

projected expenditures (projected year-to-date plus encumbrances)

Future items that influence budget

Actual inflation State Legislative/Budget Decisions

Can affect revenues and expenditure

Federal Legislative/Budget Decisions Special Education Funding,

Student enrollment General Fund, Special Education, English Language Learners, Charter schools

Audit Report Adjusting entries, fund balance, actual revenue, actual expenditures

Weather Labor, utilities, fuel

Local Economic Development Mining activity, net proceeds of mineral, local taxes

Other Factors General Fund Transfers

Conclusion

The District will have to deplete its reserves to balance its FY2015 budget

Even after using fund reserves budget cuts are probable in FY2016

District should freeze spending in the current year to increase fund balance.

Reduce wages through attrition.

Budgets by definition are estimates of costs associated with future purchases and economic events. The assumptions and information contained within this presentation are likely to change and may change significantly. The information in this presentation should be used for discussion only as a means to

frame future budget discussions and decisions.