2017-2018
Budget Discussion
M&O Tax Rate and
Expenditure Patterns
April 3, 2017
Topics
▪ M&O tax rate
▪ Fund balance
▪ Expenditure categories
▪ Base obligations
▪ Spending requirements
M&O Tax Rate
▪ State revenue declines with tax rates below a $1.04
▪ State revenue increases with tax rates up to a $1.06
▪ Recapture begins above a tax rate of $1.06
▪ Equalized wealth level
▪ Level 1 - $514,000, above this level no state funding, recapture payments
▪ Level 2 - $319,500, above this level some state funding, recapture above $1.06
▪ RISD - $414,000 (estimated for 2017-18), $369,000 (estimated for 2016-17)
Impact of M&O Tax Rate Changes on Revenue
and Recapture
M&O Revenue Analysis
Certified Value for 16-17
FY 16-17
Adopted Budget
$20,279,100,280
6.00%
6.00%
$ 21,495,846,297
$ 21,495,846,297
$ 21,495,846,297
$ 21,495,846,297
1.00000
1.01000
1.02000
1.03000
1.04005
214,958,463
217,108,048
219,257,632
221,407,217
223,567,549
Current Tax Rate
98%
CY Tax Revenue
PY Tax Revenue
State Revenue
TRS On Behalf
Other Local Revenue
Total Revenue
$
$
98%
$
$
210,659,294
1,000,000
64,053,111
15,457,168
8,635,000
299,804,573
Increase from Prior Year
$
1,202,526
Impact of Each 1 cent change in the tax rate
Tax Revenue
State Revenue
Total Impact
$
$
$
$
187,123,277
1,000,000
86,527,097
15,457,168
8,494,505
298,602,047
Estimated Certified Value 17-18
6.00%
6.00%
98%
$
$
212,765,887
1,000,000
66,824,412
15,457,168
8,635,000
304,682,467
$
6,080,420
(2,106,593) $
(2,771,301) $
(4,877,894) $
$
98%
$
$
214,872,480
1,000,000
69,801,182
15,457,168
8,635,000
309,765,830
$
11,163,783
(2,106,593) $
(2,976,770) $
(5,083,363) $
6.00%
21,495,846,297
98%
$
$
216,979,073
1,000,000
72,777,951
15,457,168
8,635,000
314,849,192
$
219,096,198
1,000,000
75,443,306
15,457,168
8,635,000
319,631,672
$
16,247,145
$
21,029,625
(2,106,593) $
(2,976,769) $
(5,083,362) $
(2,117,126)
(2,665,355)
(4,782,481)
Impact of M&O Tax Rate Increases on Revenue
and Recapture
Impact of M&O Tax Rate Increases on Revenue
and Recapture continued
Fund Balance
▪ Board Policy CA(Local) – Fiscal Management Goals and Objectives
▪ Maintain appropriate fund balance reserves
▪ Fund balance classifications
▪ Nonspendable – Not expendable or is legally earmarked for a specific use (inventory)
▪ Restricted – Amounts constrained by the provider (grants)
▪ Committed – Amounts constrained by the Board (self insurance)
▪ Assigned – Amount earmarked for a specific purpose by the Superintendent or deputy superintendent of
finance (construction, claims, encumbrances, compensated absences, extraordinary repair and
replacement)
▪ Unassigned – Remaining fund balance
▪ State revenue received in September, October, and August
▪ Property tax payments primarily received November through February
Fund Balance History – General Fund
Fiscal Year
Ended
6/30/2012
Nonspendable:
Inventories
Assigned to:
Construction
Claims and judgements
Contingency for wireless project
Compensated absences
Encumbrances
Extraordinary repair and replacement
Employee compensation
Other assigned fund balance
Unassigned
$
328,503 $
4,000,000
1,000,000
5,000,000
638,939
1,640,596
4,000,000
4,300,000
75,234,542
Fiscal Year
Ended
6/30/2013
619,677 $
Fiscal Year
Ended
6/30/2014
509,730 $
Fiscal Year
Ended
6/30/2015
578,764 $
Fiscal Year
Ended
6/30/2016
665,102
4,000,000
1,000,000
3,582,913
4,000,000
1,000,000
3,582,913
4,000,000
1,000,000
4,000,000
1,000,000
6,218,823
78,152,263
6,627,862
79,738,094
10,264,492
81,159,486
6,017,389
80,050,869
$ 96,142,580 $ 93,573,676 $ 95,458,599 $ 97,002,742 $ 91,733,360
% of unassigned fund balance
Months of unassigned fund balance
30.5%
3.7
31.1%
3.7
29.9%
3.6
29.0%
3.5
27.4%
3.3
How Are Expenditures Tracked
▪ Function – Represents a general operational area
▪ 11 – Instruction: teacher salaries and classroom supplies
▪ 23 – School leadership: principal and campus base attendance personnel salaries
▪ 51 – Plant maintenance and operations: utilities, custodial, maintenance
▪ Object – Represents the nature of an expenditure
▪ 6119 – Salaries or wages: Teachers and other professional personnel
▪ 6259 – Utilities
▪ 6399 – General supplies
▪ Program Intent Code (PIC) – Represents instruction and other services directed toward a
particular need of a specific set of students
▪ 23 – Special education
▪ 24 – Accelerated education
Expenditures by Function – General Fund
Fiscal Year
Ended
6/30/2012
11- Instruction
$
12 - Instructional Resources and Media Services
13 - Curriculum Development and Staff Development
21 - Instructional Leadership
23 - School Leadership
31 - Guidance, Counseling and Evaluation Services
32 - Social Work Services
33 - Health Services
34 - Student Transportation
35 - Food Services
36 - Extracurricular Activities
41 - General Administration
51 - Facilities Maintenance and Operations
52 - Security and Monitoring Services
53 - Data Processing Services
61 - Community Services
71 - Debt Service
81 - Facilities Acquisition and Construction
95 - Payments to JJAEP
99 - Other Intergovernmental Charges
$
158,325,054
4,623,213
2,585,709
4,379,477
17,934,337
9,054,240
731,517
3,351,736
2,862,045
5,442,288
8,108,699
22,762,998
1,460,526
3,957,670
143,738
26,964
866,366
Fiscal Year
Ended
6/30/2013
64.20% $
1.87%
1.05%
1.78%
7.27%
3.67%
0.30%
1.36%
1.16%
0.00%
2.21%
3.29%
9.23%
0.59%
1.60%
0.06%
0.01%
0.00%
0.00%
0.35%
246,616,577 100.00% $
162,680,930
4,713,331
2,734,519
4,384,926
18,166,181
9,367,997
741,248
3,514,831
4,334,876
76,607
5,341,347
7,191,798
21,602,944
1,448,386
4,009,554
144,595
26,964
13,600
342
857,298
Fiscal Year
Ended
6/30/2014
64.71% $
1.88%
1.09%
1.74%
7.23%
3.73%
0.29%
1.40%
1.72%
0.03%
2.13%
2.86%
8.59%
0.58%
1.60%
0.06%
0.01%
0.01%
0.00%
0.34%
251,352,274 100.00% $
174,060,290
4,794,471
2,951,866
4,713,088
19,089,597
9,350,875
767,299
3,716,429
4,553,984
5,682,730
7,160,048
23,164,210
1,484,653
4,361,283
158,948
5,410
8,208
874,517
Fiscal Year
Ended
6/30/2015
65.21% $
1.80%
1.11%
1.77%
7.15%
3.50%
0.29%
1.39%
1.71%
0.00%
2.13%
2.68%
8.68%
0.56%
1.63%
0.06%
0.00%
0.00%
0.00%
0.33%
266,897,906 100.00% $
178,898,386
4,980,972
3,738,120
4,558,832
20,142,004
12,778,631
873,326
3,955,977
5,194,781
5,618,949
6,951,674
24,991,911
1,542,096
4,684,033
177,474
12,785
4,368
896,510
Fiscal Year
Ended
6/30/2016
63.90% $
1.78%
1.34%
1.63%
7.19%
4.56%
0.31%
1.41%
1.86%
0.00%
2.01%
2.48%
8.93%
0.55%
1.67%
0.06%
0.00%
0.00%
0.00%
0.32%
280,000,829 100.00% $
186,432,986
5,073,644
4,202,283
4,718,491
20,749,157
13,856,344
827,455
4,197,720
5,537,229
5,941,510
7,814,558
24,727,270
1,627,869
5,098,678
222,631
6,392
3,000
929,897
63.83%
1.74%
1.44%
1.62%
7.11%
4.75%
0.28%
1.44%
1.90%
0.00%
2.03%
2.68%
8.47%
0.56%
1.75%
0.08%
0.00%
0.00%
0.00%
0.32%
291,967,114 100.00%
Expenditures by Object – General Fund
Fiscal Year
Ended
6/30/2012
Payroll
Professional and Contracted Services
Supplies and Materials
Other Operating
Debt Service
Capital Outlay
Fiscal Year
Ended
6/30/2013
$
220,067,010
17,282,081
6,619,183
2,527,339
26,964
94,000
89.24% $
7.01%
2.68%
1.02%
0.01%
0.04%
$
246,616,577 100.00% $
225,746,669
16,309,404
6,435,321
2,826,440
26,964
7,476
Fiscal Year
Ended
6/30/2014
89.82% $
6.49%
2.56%
1.12%
0.01%
0.00%
251,352,274 100.00% $
240,279,376
16,844,271
6,717,602
3,043,818
5,410
7,429
Fiscal Year
Ended
6/30/2015
90.03% $
6.31%
2.52%
1.14%
0.00%
0.00%
266,897,906 100.00% $
251,600,489
18,969,727
6,529,170
2,857,926
12,785
30,732
Fiscal Year
Ended
6/30/2016
89.87% $
6.77%
2.33%
1.02%
0.00%
0.01%
280,000,829 100.00% $
262,820,919
19,249,792
6,534,653
3,340,771
6,392
14,587
90.03%
6.59%
2.24%
1.14%
0.00%
0.00%
291,967,114 100.00%
Base Obligations – General Fund
Fiscal Year
Ended
6/30/2012
Payroll
Utilities
Student Transportation
Dallas County Appraisal District
Election Cost
Insurance Cost
Gasoline and Other Fuels
All other costs
Fiscal Year
Ended
6/30/2013
$
220,067,010
7,243,510
2,862,045
866,366
33,506
208,558
311,329
15,024,253
89.24% $
2.94%
1.16%
0.35%
0.01%
0.08%
0.13%
6.09%
$
246,616,577 100.00% $
225,746,669
5,997,876
4,334,876
857,298
282,935
209,707
276,908
13,646,005
Fiscal Year
Ended
6/30/2014
89.82% $
2.39%
1.72%
0.34%
0.11%
0.08%
0.11%
5.43%
251,352,274 100.00% $
240,279,376
6,786,875
4,553,984
874,517
309,441
214,583
260,624
13,618,506
Fiscal Year
Ended
6/30/2015
90.02% $
2.54%
1.71%
0.33%
0.12%
0.08%
0.10%
5.10%
266,897,906 100.00% $
251,600,489
7,825,533
5,194,781
895,510
244,798
208,247
14,031,471
Fiscal Year
Ended
6/30/2016
89.86% $
2.79%
1.86%
0.32%
0.00%
0.09%
0.07%
5.01%
280,000,829 100.00% $
262,820,919
7,046,291
5,537,229
929,897
341,690
229,726
161,059
14,900,303
90.01%
2.41%
1.90%
0.32%
0.12%
0.08%
0.06%
5.10%
291,967,114 100.00%
General Fund Spending Requirements - State
▪ Allotments
▪ Special Education - 52%
▪ Career and Technology – 58%
▪ Gifted & Talented – 55%
▪ Compensatory Education – 52%
▪ Bilingual Education – 52%
▪ High School Allotment – 100%
Allotment Spending for 2015-2016
General Fund Spending Requirements - Federal
▪ IDEA B maintenance of effort
▪ A school district must expend in the current year for special education 100% of what it
spent last year from state and local funds.
▪ NCLB maintenance of effort
▪ A school district must expend in the current year at least 90% of what it spent last year
from state and local funds.