district 7 stakeholders’ school finance presentation february 7, 2012
TRANSCRIPT
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District 7 Stakeholders’ School Finance Presentation
February 7, 2012
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Who is a Stakeholder?
•Parents and Families•Community Members•Tax Payers•All District 7 Employees
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Importance of Effective Schools
Macro Reasons• Investment in the Future• Global Competitiveness
Local Reasons• Provides Resources, Financial and Human, to
meet Challenges• Enhanced Value of Local Real Estate
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Topics of Conversation
• Where and how resources are derived• Where we spend our funds• Recent losses of revenue• Added revenues and cost cutting• Treasury balances• How much does it take to run District 7• Property taxes and home values• Who pays the taxes in our district
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Sources of Revenue
81%
12%7%
LocalState Federal
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Expenses
60%15%
9%
4%3%
9%SalariesBenefitsPurchased ServicesSuppliesCapital OutlayOther
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Local Funds• Collected by the county• Received mostly in June and September• Paid by property owners within district• Industrial• Residential• Commercial
• Increase determined by CPI• Consumer Price Index release in January
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CPI History
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
3.4%
1.6%
2.4%
1.9%
3.3% 3.4%
2.5%
4.1%
0.1%
2.7%
1.5%
2.9%
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Added Revenues from CPI
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
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State Funding• General State Aid
• Based on low income formula
• Categoricals• Early Childhood• Apply every year, need to work for funds • Not every district has an EC Program
• English Language Learning• Special Education• Transportation
• Corporate Personal Property Replacement Tax (CPPRT)
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State Delinquency to WDSD7
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$492,784
$796,183
$300,774
$76,646
$569,185
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Federal Funding
• Reliable funding relative to the state• Programs include:• Title I (Reading) • Title III (Bilingual)• National School Lunch
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ARRA Funding
• Received in FY10 & FY11 only• Program funding ended on June 30, 2011• Programs funded:• Title I $69,975 (FY10)• Special Education $321,697 (FY10 & FY11)• Education Jobs Program $63,320 (FY11)
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Revenue Lost
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Cost Cutting
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New Revenue & Total Enhancements
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Treasury Balances
• In balance with last year• District 7 in Financial Recognition Status
• $9,000,000 average balance• $13,184,908 high balance Sept. 2010• $7,265,312 low balance May 2011
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Treasury Balances
July
August
Septem
ber
October
November
Decem
ber
January
February
March
AprilMay
June$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
FY2005FY2010Min.($3.75M)
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Monthly Expenses
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Minimum Balance
• Need to maintain at least 25% of annual expenses on hand at all times– About $3,750,000– Below this amount is financially perilous
• Like your checkbook, manage to low balance
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Property Taxes
• Local Taxes Account for 81% of Revenue• Affect of Declining Home Values• Relationship between EAV and Taxes• How CPI Affects Revenue to District
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CPI CPI CPI
Existing EAV Tax Rate
EAV, CPI and Tax Rate
Existing EAV
Tax Rate Existing EAV
Tax Rate
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Tax Rates by District
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Property Taxes
• Property values are falling– Measured in Equalized Assessed Value (EAV)
• CY2009 $693,271,696• CY2010 $602,076,737• 13.2% Decrease in Assessed Value
• School districts and other taxing bodies– Local revenues increase by rate of CPI
• District 7 revenue increases independent of home values
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District 7 EAV 2009
Residential $292,495,6
7143%
Commercial $62,254,846
9%
Industrial $327,266,6
2048%
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District 7 EAV Change 2009-10
ResidentialCommercial
Industrial
43.2%
8.7%
48.1%45.2%
9.1%
45.7%
% of Total 2009 % of Total 2010
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Please Remember
• Issues District 7 faces in managing funds• Understanding as to what it takes to
financially fund our district• Property tax funding
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Questions and Comments