2/27/2015 1 Page 1 Understanding and Communicating Key Budget Variables WASBO Accounting Conference March 12, 2015 12:45PM – 1:45PM Robert W. Baird & Co. Incorporated is providing this information to you for discussion purposes. The materials do not contemplate or relate to a future issuance of municipal securities. Baird is not recommending that you take any action, and this information is not intended to be regarded as “advice”’ within the meaning of Section 15B of the Securities Exchange Act of 1934 or the rules thereunder. Page 2 Presenters • 608‐562‐3700 (office) • [email protected]New Lisbon School District Dennis Birr Superintendent • 608‐886‐8572 (cell) • [email protected]Robert W. Baird & Co. Public Finance Diane Pertzborn School Business Specialist • 715‐552‐3567 (office) • [email protected]Robert W. Baird & Co. Public Finance Debby Schufletowski School Business Specialist
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Understanding and Communicating Key Budget Variables
WASBO Accounting Conference March 12, 201512:45PM – 1:45PM
Robert W. Baird & Co. Incorporated is providing this information to you for discussion purposes. The materials do not contemplate or relate to a future issuance of municipal securities. Baird is not recommending that you take any action, and this information is not intended to be regarded as “advice”’ within the meaning of Section 15B of the Securities Exchange Act of 1934 or the rules thereunder.
• How does it impact the district and the district stakeholders?
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Revenue Limit
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Revenue Limit—Why is it Important?
80.0%
20.0%
General Fund Operating Revenue
Revenue Limit Revenue All other operating revenue
The hypothetical example is for illustrative purposes only.
The revenue limit is important as it generally comprises 85% ‐ 95% of a district’s general fund operating revenue.
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Revenue Limit
• Identifies how much revenue a district can generate through the sources of state equalization aid and the local tax levy for funds:
• Fund 10 (General Fund)
• Fund 38 (Non‐Referendum Debt)
• Fund 41 (Capital Expansion)
District Membership
Per Pupil $ (set in state
budget)Exemptions
Revenue Limit
Authority
Note: Fund 46 is funded through a transfer from the General Fund. Therefore, it is under the revenue limit, but, since it is not funded through a levy, it is not included in the list above.
The hypothetical example is for illustrative purposes only.
Current revenue limit per pupil increases are much lower than historical trends. For many districts, per‐pupil authority in 2014‐15 is below the 2010‐11 level. The final state biennial budget will determine the actual increase/decrease in 2015‐16 and 2016‐17.
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2014-15 Revenue Limit Max Revenue / Member
$9,262
$9,498
$9,797
$9,277
$9,712
$9,533
$9,228
$9,879
$9,227
$8,800 $9,000 $9,200 $9,400 $9,600 $9,800 $10,000
Baraboo
Reedsburg
Wisconsin Dells
Portage Community
Sauk Prairie
Lodi
Poynette
Mauston
Tomah Area
Max Revenue / Member
Each district has a unique maximum revenue / member amount based. Spending in 1993 and annual recurring exemptions impact districts’ maximum revenue/member figure.
Baird Budget Model GraphSource: Department of Public Instruction
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Non-Revenue Limit Revenue
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Non-Revenue Limit Revenue
• Non‐Revenue Limit Revenue
• Open Enrollment
• Grant Revenue
• Categorical Aids
• Common School Fund Aid (Library Aid)
• SAGE (Student Achievement Guarantee in Education)