Agenda

School Finance 101

Understanding State Aid and

Budget Presentation Tool Kit

NASB Conference

Mark ShepardAssociate Superintendent

Lincoln Public SchoolsNovember 15, 2012

Agenda Budget Calendar Revenue Information

Review Assessed Valuation Information/Projection

Review State Aid Information Expenditure Information

Projected Increases Potential Reductions

Revenue/Cash Reserve

Questions/Feedback

2

Tentative 2012-13 Budget Development Calendar

3

February 28 Board of Education Meeting – Budget Calendar March 1 2012/13 Budget Authority and Allowable Reserve Percentage Certification April 18 End of Legislative Session April 20 (approximate) Gross Assessed Valuations from County Assessor April – May Executive Committee Works with Board Finance Committee May 1 State Aid Certification May 1 2012/13 Budget Authority and Allowable Reserve Percentage Certification June 19 Budget Work Session, 6:00 p.m. at Bryan Center at Hawthorne Building May – July Community/District Constituent Presentations

Presentation and Budget Forum at County-City Building (June 26 from 5:00-6:00 p.m.)

Presentation and Budget Forum at Mickle Media Center (June 28 from 7:00-8:00 p.m.)

Presentations to Various Community/District Constituent Groups Superintendent’s Board of Advisors Community Curriculum Council LIBA (Lincoln Independent Business Association) LPS Parent Leader Group Lincoln Area Chamber of Commerce Lincoln Neighborhood Alliance July 17 Second Budget Work Session 6:00 p.m. at Bryan Center at Hawthorne Building August 5 Publication of Budget Hearings/Forums (LPS and ESU 18) August 14 Public Hearing/Budget Forum (6:00-6:45 p.m.) and Budget Approval (First Reading) August 20 Certified Assessed Valuation August 28 Budget Approval (Second Reading/Action) September 4 Publication of Property Tax Request Hearing September 11 Property Tax Request Hearing and First Reading September 25 Property Tax Request (Second Reading)

4

Funding Sources The general fund or “operating fund” of the district is funded through a combination of local, county, state, and federal funds. The largest source of funding comes from local property taxes.

82%

8%

4% 1%

4%

1%

General Fund Revenue by Source

Property Taxes

State Aid

Special Ed & Other State Support

County

Other Local

Federal

5

General Fund Sources of Funds

2011-12 2012-13 ChangeRevenue Budget Budget

Property Taxes $169,661,963 $176,672,057 $7,010,094State Aid 70,053,560 83,508,308 13,454,748Special Ed & Other State Support 30,105,000 30,320,000 215,000County 3,000,000 2,000,000 -1,000,000Other Local 24,052,000 24,351,000 299,000Federal 5,448,640 5,448,640 0

Total Revenue $302,321,163 $322,300,005 $19,978,842

Assessed Valuation/ Property Tax I nformation

2011-12 Assessed Valuation $16,342,181,6252012-13 Assessed Valuation $16,995,868,890

Difference $653,687,265% Change 4.00%

Property Tax Request 2011-12 2012-13 Change

General Fund $1.048671 $1.050000 $0.001329Special Building Fund 0 0 0Bond & I nterest Fund 0.160339 0.165124 0.004785Q.C.P.U.F. 0.037197 0.031083 -0.006114

Total $1.246207 $1.246207 $0.000000

Assessed Valuation History

6

Note: Total increase since 2008-09 is 3.73%.

Year Valuation % Change

2003-04 $13,110,589,431 14.32%2004-05 $13,504,170,696 3.00%2005-06 $13,970,651,173 3.45%2006-07 $15,774,921,374 12.91%2007-08 $16,086,604,435 1.98%2008-09 $16,384,894,448 1.85%2009-10 $16,170,616,537 -1.31%2010-11 $16,311,040,532 0.87%2011-12 $16,342,181,625 0.19%

2012-13 Estimate $16,995,868,890 4.00%

$0$2,000,000,000$4,000,000,000$6,000,000,000$8,000,000,000

$10,000,000,000$12,000,000,000$14,000,000,000$16,000,000,000$18,000,000,000

7

2012-13 State Aid Formula

*LPS allowance/adjustments affecting needs.

Needs - Resources = State Aid

Average Daily Membership Adjusted ValuationX X

Basic Funding Local Effort RatePlus Allowances/Adjustments (currently $.0105 below max. levy)

Plus Other Actual Receipts

Other Considerations/Allowances:

* Poverty Allowance* Limited English Proficiency Allowance* Transportation Allowance* Elementary Class Size Allowance* Summer School Allowance* Special Receipts Allowance* Distance Education Allowance Teacher Education Allowance* Averaging Adjustment* Student Growth Adjustment* New School Adjustment Local Choice Adjustment Instructional Time Allowance Needs Stabilization Elementary Site Allowance Focus School & Program Allowance Learning Community Transportation Adjustment

Other Formula Resources

Net Option FundingAllocated Income TaxesOther Actual ReceiptsMinimum Levy AdjustmentRetirement Aid

LPS State Aid History

Numbers include state aid, stabilization funds, and education jobs funds.

*Education jobs funds of $6,864,725 received in 2010-11 but utilized in 2011-12.

8

2008-09 64,501,826$ 2009-10 79,162,449$ 2010-11 81,059,532$ *

2011-12 76,918,286$ *

2012-13 83,508,308$

9

Student Enrollment Information(Early Childhood Special Education, Excite,

and Kindergarten through 12th Grade)

Additional 285

Students

2009-10 2010-11 2011-12 2012-13 2013-14Projected

Headstart 668 774 846 825 825 Early Childhood Special Ed 417 410 466 484 484 Kindergarten - Grade 12 32,916 33,757 34,535 35,176 35,461

Totals 34,001 34,941 35,847 36,485 36,770

32,500 33,000 33,500 34,000 34,500 35,000 35,500 36,000 36,500 37,000

2009-10 2010-11 2011-12 2012-13 2013-14Projected

Enrollment History/Projection

10

History of LPS Property Tax Levy

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

$1.70

$1.80

$1.90

$2.00

Tax

Levy

Total Tax Levy

11

What is the estimated cost to a homeowner if the home’s assessed value is $146,150?

Property Taxes

2011-2012

$1,821.33

2012-2013 Estimated$1,821.33

$0change per year

$151.78 per month

$151.78 per month

Note: Per the county assessor’s office, in 2011 the average assessed value for residential property was $146,150.

66%

17%

2% 13%

1% 1%

Regular Instruction

Special Education

Special Ed. Transportation

Business Affairs

Human Resources

Supt./Board

12

Where does the money go?LPS spends the majority of the operating budget on instruction. This includes money for teachers, counselors, media specialists, nurses, principals, office staff, paraeducators, supplies and equipment. The rest of the budget is for business affairs (maintenance, custodial, transportation, etc.), human resources, and the superintendent’s office/board of education areas.

83% Instruction

2012-13 Proposed General Fund Expenditure Budget

Budgeted Proposed2011-12 2012-13 Percent

Expenditures Expenditures I ncrease

Regular I nstruction 212,576,000$ 218,790,000$ 2.92%Special Education 53,875,000 55,440,000 2.90%Special Ed. Transportation 5,770,000 5,940,000 2.95%Business Affairs 42,320,000 43,560,000 2.93%Human Resources 5,000,000 5,280,000 5.60%Supt./ Board 2,300,000 2,310,000 0.43%

Total 321,841,000$ 331,320,000$ 2.95%

13

General Fund Expenditures by Object

Expenditure Categories

Certificated Salaries & Benefits 64.3% 213,038,760$ District Level Admin. Salaries & Benefits 1.9% 6,295,080 School Building Admin. Salaries & Benefits 4.3% 14,246,760 Classified Salaries & Benefits 19.0% 62,950,800 Supplies 3.4% 11,264,880 Contract Services 5.2% 17,228,640 Equipment 1.1% 3,644,520 Transfers & Fixed 0.5% 1,656,600 Other 0.3% 993,960

Total 100.0% 331,320,000$

64%

2%

4%

19%

4%5%

1% 1% 0%

Certificated Salaries & Benefits

District Level Admin. Salaries & Benefits

School Building Admin. Salaries & Benefits

Classified Salaries & Benefits

Supplies

Contract Services

Equipment

Transfers & Fixed

Other

2012-13 Budget ConsiderationsPreliminary Expenditure Changes

Negotiations 2.5% Package Increase $ 7,102,160

New/Renovated Facility Increases $ 1,045,550

(Roper, Kloefkorn, Belmont)

Educare Facility and Program Increase $ 238,420

Special Education Staffing and Supplies (LB131) $ 1,300,000

Special Ed Extra Days - Summer Diagnostic Teams $ 100,000

Regular Education Staffing $ 1,700,000

Supplies for Schools ($2 per Student) $ 74,000

Field Trip Cost Increase $ 20,000

Curriculum Implementation $ 135,780

Early Childhood Increases $ 164,080

Strategic Planning $ 250,000

Buses and White Fleet Replacement $ 135,780

Diesel and Gasoline Fuel Increases $ 150,000

Total Projected $12,415,770

.

14

2012-13 Budget Considerations Expenditure

Decreases Recurring Expenditures

Remove Start-up Costs for Kloefkorn $ 713,480

Remove Start-up Costs for Roper 4-5 Center $ 34,070

ELL Transportation $ 20,575

Budget to Actual Personnel Costs $ 2,484,850

$ 3,252,975

Identified General Fund Expenditures to be Purchased from Depreciation Fund*

Computers for Staff/State Assessment/Infrastructure (100%) $ 1,634,050

Business Affairs Equipment Purchases (36.7%) $ 176,035

Textbooks (18%) $ 419,700

$ 2,229,785

*These budgets would be placed on hold in the General Fund and items would be purchased through the Depreciation Fund.

15

Preliminary 2012-13 Summary

16

Projected Expenditures

2011-12 Expenditure Budget $320,831,160

Projected 2012-13 IncreasesNegotiated Contracts (2.5% package increase) 7,102,160$ New/Renovated Facility Increases 1,045,550$ Educare Facility and Program Increase 238,420$ Special Education Staffing and Supplies (LB131) 1,300,000$ Special Ed Extra Days for Summer Diagnostic Teams 100,000$ Regular Education Staffing 1,700,000$ Supplies for Schools (additional $2 per student) 74,000$ Field Trip Cost Increase 20,000$ Curriculum Implementation 135,780$ Early Childhood Increases (transition from grant funding to state aid) 164,080$ Strategic Planning 250,000$ Buses and White Fleet Replacement 135,780$ Diesel and Gas Fuel Increases 150,000$ Total Projected Increases 12,415,770$

2012-13 Recommended Reductions

Recurring Expenditure ReductionsRemove Start-up Costs for Kloefkorn Elementary (713,480)$ Remove Start-up Costs for Roper 4-5 Center (34,070)$ ELL Transportation (20,575)$ Budget to Actual Personnel (2,484,850)$ Total Recurring Expenditure Reductions (3,252,975)$

2012-13 Projected Expenditure Budget 329,993,955$ Percent Increase 2.86%

Projected Revenues

2012-13 Projected Revenues $322,350,005

Identified General Fund Expenditures to be Purchased from Depreciation Fund*Computers for Staff/State Assessment/Infrastructure-100% 1,634,050$ Business Affairs Equipment Purchases-36.7% 176,035$ Textbooks-18% 419,700$ Total One Time Expenditure Reductions 2,229,785$

Net Utilization of Cash Flow 5,414,165$

2012-13 Projected Resources Available $329,993,955

How are we going to pay for the 2012-13 Expenditures?Projected Revenue 322,350,005$ Projected One Time Expenditures on Hold 2,229,785$ Utilization of Cash Flow 5,414,165$ Total 329,993,955$

What makes up the 2012-13 Budget?Expenditure Budget for 2011-12 320,831,160$ Projected Increases 12,415,770$ Projected Reductions (3,252,975)$ Preliminary Expenditure Budget for 2012-13 329,993,955$

*These budgets would be placed on hold in the General Fund and items would be purchased

Revised 6-19-12

Summary of Information for 2012-13

through the Depreciation Fund.

Cash Flow

17

MonthActual Actual Actual Actual Actual Actual Estimated06-07 07-08 08-09 09-10 10-11 11-12 12-13

SEPT $44,862,554 $50,552,970 $54,735,735 $56,995,777 $59,395,824 $67,180,109 $55,618,152OCT $31,447,917 $36,254,836 $40,997,496 $42,379,460 $44,600,521 $50,941,706 $40,709,678NOV $17,561,689 $22,873,923 $26,752,558 $27,652,257 $29,889,091 $34,015,536 $25,123,138DEC $7,327,484 $11,548,571 $14,623,415 $18,966,727 $20,076,359 $21,654,975 $13,441,758J AN $6,585,493 $10,968,034 $13,302,137 $16,418,060 $17,678,340 $17,461,549 $11,012,092FEB $5,747,464 $11,315,185 $16,876,305 $16,476,608 $19,657,811 $19,590,438 $11,725,543MAR $754 $4,932,530 $57,252,779 $12,392,471 $13,059,242 $12,181,064 $4,751,807APR $46,684,670 $49,480,408 $57,252,779 $59,251,433 $68,880,256 $59,103,484 $52,349,906MAY $56,532,694 $59,831,959 $67,975,343 $73,170,877 $71,284,955 $68,846,674 $62,984,534J UNE $45,778,428 $49,199,013 $55,762,430 $61,268,376 $67,725,923 $56,039,001 $50,571,625J ULY $30,299,080 $32,275,418 $37,126,813 $41,824,647 $49,138,982 $36,160,686 $29,621,172AUG $50,870,870 $53,928,142 $66,432,854 $67,788,287 $71,452,969 $59,577,658 $54,602,879

18

How Does LPS Compare? LPS is ranked 238th out of 251 school districts in

Nebraska in per pupil spending.

LPS currently Spends $8,830 per pupil compared to the State of Nebraska average of $9,968.

LPS annually spends less than the state average by $40.2 million.

The current levy and expenditure limitations do not allow LPS to spend at the State average.

*2010-11 data is the latest available from the Nebraska Department of Education.

Questions?

19

20

Need more information or want to share comments?

Look at our web site and see the budget book and work session materials

at http://www.lps.org/about/budget/

Please contact Mark Shepard at 436-1635 or by

e-mail at [email protected]