Parkview School District
2013-2014 Budget Hearing and
Annual Meeting
Monday, August 19, 2013
5:30 p.m.
Parkview Jr./Sr. High School LMC
Parkview School District
2013-2014 Budget Overview
•
The Parkview School District is expected to have a
budget deficit of $331,699.81 for the 2013-2014 fiscal
year.
•
The main reason for the budget deficit is a reduction in
revenue from 2012-2013 due to declining enrollment.
•
The budget deficit will paid for using funds from the
District’s fund balance.
•
2013-2014 numbers are still estimates at this time as
there are various factors that could still change the final
amount.
2
Parkview School District 20132014 Budget Timeline
•
The 2013-2014 Budget for the Parkview School
District is an estimate.
-
The budget presented today may change between
now and November 1st when the final levy is set.
-
Events that could change the final numbers.
•
The 3rd Friday pupil count in September.
•
Final Equalization Aid numbers from DPI.
•
The 2012-2013 audit.
•
Staffing changes with new hires.
3
Parkview School District
2013-2014 Budget Adoption
•
The Department of Public Instruction requires every school district in the
state to complete a Budget Adoption sheet each year for the proposed
budget for the upcoming year and the last two years.
•
The chart above is the General Fund section of the Budget Adoption sheet.
To view the full sheet, click here (under “2013-2014 Annual Meeting Finance
Packet”).
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Parkview School District
Budget Cuts and Reductions for 2013-2014
•
The health insurance plan for the District was changed in an effort to reduce
costs (cost savings on health insurance from prior year - $75,588.69, if no
changes were made, the deficit would have been $245,349.26 larger).
-
The deductible was raised to $2,000 single and $4,000 family, up from
$1,000 single/$2,000 family.
-
The employee contribution rate was increased from 4.99% to 16%.
Employees could participate in a health risk assessment to reduce that
rate down to 13%.
-
Health insurance rates for the Parkview School District increased by
13.95% for 2013-2014, which offset most of the savings from the plan
change.
•
Post-employment benefits for certified staff were reduced from up to five
years of health insurance coverage to up to three years of coverage.
-
Cost savings from this change will not be realized until three years after
the staff impacted retire.
5
2013-2015 State Budget Changes
Affecting Public Schools
• A revenue limit increase of $75 per pupil
and a $75 per pupil categorical aid
outside the revenue limit for 2013-2014.
• Changes to authority and reporting
requirements for the Community Service
Fund (Fund 80).
• Click here for a full breakdown of the
changes in the 2013-2015 State Budget.
6
2013-2015 State Budget Impact
on the Revenue Limit
•
Although the revenue limit was increased by $75 per pupil, the revenue limit
for Parkview School District does not increase due to non-recurring
exemptions as a result of declining enrollment.
•
Click here for a more detailed explanation of how non-recurring exemptions
impact the revenue limit (under “Hold Harmless Letter”).
Non-recurring
exemptions
7
Parkview School District
Revenue Limit
•
•
•
•
The revenue limit is adjusted each
year based on many factors
including enrollment, property
value and a per pupil adjustment.
From 2001 to 2010, the average
per pupil adjustment amount was
an increase of $237.90.
In 2011, the per pupil adjustment
amount was a decrease of $528.81
for every district in the state (Act
10).
In 2012, the per pupil adjustment
amount was an increase of $50
and is expected to be $75 this
year.
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Year
Revenue
Limit
Yearly
Change
09-10
$11,025,831
0.98%
10-11
$11,102,556
0.70%
11-12
$10,162,211
-8.47%
12-13
$9,645,261
-5.09%
13-14*
$9,569,886
-0.78%
Parkview School District
Revenue Limit History
9
Parkview School District
State General Aid
•
•
Determining state general
aid each year involves
many different factors and a
complex calculation.
Year
State general aid for the
Parkview School District
has been decreasing
mainly due to declining
enrollment and the amount
of funding from the state,
the two main factors in the
equation.
10
State General Yearly
Aid
Change
09-10
$7,431,276
-3.89%
10-11
$7,097,241
-4.49%
11-12
$6,387,517
-10.00%
12-13
$5,888,538
-7.81%
13-14*
$5,611,745
-4.70%
Parkview School District
Local Property Taxes
Year
Tax Levy
Yearly
Change
09-10
$3,741,542
5.93%
10-11
$4,190,570
12.00%
11-12
$3,967,282
-5.33%
12-13
$3,927,580
-1.00%
13-14*
$3,957,026
0.78%
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•
After a 12% increase in 20102011, the tax levy decreased by
5.29% and then 1.04% in 20122013. It is expected to increase
by 0.78% in 2013-2014.
•
The relation between what a tax
payer pays and the total levy will
vary based on property values
and appropriation.
•
The total tax levy is determined
based on the revenue limit minus
the amount of state aid received.
Parkview School District
State General Aid and Local Property Tax
History
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Parkview School District
Mill Rate
Yearly
State Avg. Dist. Avg.
Year
Chang
Mill Rate Mill Rate
e
09-10
$9.18
$8.62
4.36%
10-11
$9.80
$10.02
16.24%
11-12
$9.88
$9.87
•
The mill rate is a number used to
equate the amount of taxes that
will be assessed on a property
that has a certain valuation.
•
For example, a mill rate of $10.12
would equal a tax levy of $1,012
on a house valued at $100,000.
•
An increase or decrease of the
mill rate could vary due to
changes in property values.
•
It is important to remember that
the mill rate is an average for
multiple municipalities and an
individual’s actual mill rate could
vary.
-1.50%
12-13
$10.21
$10.02
1.52%
1314*
n/a
$10.12
1.00%
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Parkview School District
Enrollment FTE
•
•
Enrollment FTE (Full-Time
Equivalency) is not a head count,
but a calculation based on the
September counts, summer
school enrollment and resident
additions and subtractions.
The Parkview School District is
currently experiencing declining
enrollment, which has had an
adverse affect on the revenue
limit and the amount of state
general aid the District receives.
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Year
Enrollment
FTE
Yearly
Change
09-10
1,050
-3.58%
10-11
999
-4.86%
11-12
962
-3.70%
12-13
939
-2.39%
13-14*
905
-3.62%
Parkview School District
Enrollment FTE History
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Parkview School District
Open Enrollment
•
•
In addition to declining enrollment, the
Parkview School District also has more
students enrolling out of the District than
enrolling in through open enrollment.
When a student who lives in a district
decides to attend another district, the
resident district must pay the other district
open enrollment tuition for the student.
Year
OE In FTE
OE Out
FTE
09-10
30.5
79.7
10-11
37.5
67.2
•
Open enrollment tuition per student was
$6,335 for 2012-2013 and will be $6,485
for 2013-2014.
11-12
38.0
72.1
•
Estimating open enrollment numbers is
difficult before the September count due to
many different factors.
12-13
46.5
122.3
13-14*
57.0
132.0
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Parkview School District
General Fund Revenue
•
It is projected that
94.07% of General
Fund (Fund 10)
revenue will come from
state aid (57.30%) and
local property taxes
(36.77%).
•
The other sources of
revenue include open
enrollment tuition,
district fees, and
federal grants.
17
Parkview School District
General Fund Expenses
18
•
It is projected that 66.86%
of general fund expenses
will be from salaries and
benefits for the General
Fund (Fund 10).
•
Purchased services include
expenses for services to
the District, dues and fees,
insurance and open
enrollment tuition.
•
Other expenses include
lease payments and fund
transfers.
Parkview School District
General Fund Revenue and Expense History
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Parkview School District
Comparative Cost per Member
20
Parkview School District
Fund Balance
Year
Ending
Balance
Fund
Balance
%
The actual cash in the bank is
usually a lot lower during the year
than the fund balance.
09-10
$2,646,712.2
4
22.16%
If the fund balance drops below
$2,000,000, the Parkview School
District may need to short-term
borrow to cover expenses before
revenues come in.
10-11
$2,661,344.5
7
22.92%
11-12
$2,772,039.8
9
24.91%
12-13
$2,521,063.4
0
23.94%
$2,189,363.5
13-14*
9
21.16%
•
Fund balance is not the same as a
cash account, it is a combination of
assets and liabilities.
•
•
•
The fund balance % is the fund
balance amount divided by
expenses.
21
Parkview School District
Fund Balance History
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Parkview School District
2013-2015 Budget Changes for the
Community Service Fund (Fund 80)
• A school board must identify the
expenditures that will be funded from
the Fund 80 levy in the written report for
the annual meeting.
• A school district is required to report the
information on the Fund 80
expenditures to DPI within 10 days of
the annual meeting.
• A school district must post the
information on Fund 80 expenditures for
the year on their website by August 30,
23
2013.
Parkview School District
Community Service Fund (Fund 80)
•
•
•
Since there is enough fund balance
in Fund 80 to pay for the expenses
listed, the Parkview School District
will not levy in Fund 80 for the
2013-2014 fiscal year.
However, Act 20 still requires the
District to report all expenses in
Fund 80 for the fiscal year.
The expenses listed are a summary
of the costs. For a more detailed
breakdown of Fund 80 costs for
2013-2014, view the “2013-2014
Annual Meeting Finance Packet” on
the Parkview website.
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Description
Amount
Salaries and
Benefits
$12,152.90
Purchased Services
$4,100.00
General Supplies
$1,000.00
Total
$17,252.90
Contact Information
• Ben Irwin - Business Manager
• Email - [email protected]
• Phone - 608-879-2717 ext. 6114
• Office located in the Parkview Jr./Sr. High
School Main Office
• A copy of this PowerPoint and other budget
information can be found on the Parkview
School District website under the Business
Office link.
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