BUDGET TRAININGBasics of School Budgeting

Respective roles of the Board, Superintendent and clerk.

SB175

Inflation of 0.89% and 2.98% Data for achievement payment $20 per ANB Basic entitlement per school unit increase Address unusual enrollment increases for

rural (4%) was 6% Eliminates seat time penalties for fast

learners Authority to increase over BASE general

fund levy as long as other taxes are reduced Statewide tax relief

Acronyms

MCA: Montana Code Annotated OPI: Office of Public Instruction PI: Public Instruction NRD: National Resource Development NCLB: No Child Left Behind GTB: Guaranteed Tax Base OTO: One Time Only (full day kinder, at risk, ARRA) PIR: Pupil Instruction Related (required/paid for 7) FTE: Full Time Equivalent (certified Staff)

Administrators based on FTE ANB: Average Number Belonging

(enrollment x 187/180) funding for PIR days

Basic EntitlementPer ANB Entitlement Funding

Average Number Belonging Fall Enrollment: 1st Monday in October Winter Enrollment (SB 175) Spring Enrollment: February 1st

Includes Digital Academy

Divide by two (three) and multiply by 180 days plus 7 PIR/180 187/180 = (1.03)

ANB Calculation Example

88 students fall 90 students spring

(88 + 90)/2 x (1.03) = 91.67 ANB Elementary Calculation:

[$5,075 x Elem ANB]– [0.20 x (Elem ANB/2)x(ELEM ANB – 1]

High School• [$6,497 x HS ANB]– [0.50 x (HS/MS ANB/2)x(HS

ANB – 1]

Additional Funding Components20-9-306

100% funded by the state in the BASE portion of the general fund budget

Quality Educator Payment – Each District and Special Ed. Coop will receive a $3,042 payment for each FTE licenses educator and for other licensed professionals employed by the District

Indian Ed for All Payment – The greater of $100 for each district or $20.40 per ANB implementing IEFA curriculum

At-Risk Payment - $5 million for 2013-2014. Distributed in the same manner at Title I

Total Data Achievement Payment: SB-175

Mill Calculation

What is a mill? One-Thousandth (.001) of a dollar For example: Taxable Valuation = $1,234,267 Mill Value = $1,234,267 x 0.001 = $1,234.267

per mill Actual taxable valuation not available at the

time the ballot is prepared, estimate Previous year’s value Use Preliminary Budget Data Sheet Discussions with local assessor

Funding General Fund 20%: Above Base

Voted Local Mills, Tuition, Excess Reserve

80%: Local Property Taxes Guaranteed Tax Base Aid Non-Levy Revenue (quality educator, at risk, Direct State Aid: 44.7% Basic and Per ANB

Entitlements

Building Blocks of a General Fund Budget

Base General Fund Budget Maximum General Fund

80% - Basic Entitlement 100% - Basic Entitlement

80% - Per ANB Entitlement 100% - Per ANB Entitlement

100% Total Quality Educator Payment

100% Total Quality Educator Payment

100% - Total At-Risk Student Payment

100% - Total At-Risk Student Payment

100% - Indian Education for All Payment

100% - Indian Education for All Payment

100% Total Data Achievement Payment

100% Total Data Achievement Payment

140% - Special education Allowable Cost Payment

175-200% - Special education Allowable Cost Payment

40% - RSBC received directly by the cooperative

75% - 100% RSGB received directly by the cooperative

Transfers/Additional Levies

Bus Depreciation: 20-9-201 Multiply bus cost x 150%, depreciate over 7-8 years, purchase

new bus (radios) when budget allows Activity bus may be purchased out of Bus Depreciation (20-10-

147) Expenditure Line-Item Transfers:

Example: Money left over General Fund? Project of $25,000 spent during year in Building Reserve, may use expenditure line-item transfer from Building Reserve back to General Fund (increases $ in Building Reserve ).

Technology Fund: 20-9-533 Permanent levy once voted, 20% of 150% of historical cost of

current technology Flex Fund: 20-9-543-544, 20-9-323

Beginning July 1, 2013 balance may not exceed 150% of District’ maximum General Fund

Fund Balance Re-appropriatedJuly 1 – June 30

End of fiscal year (June 30) some districts still have cash on hand.

After considering any unpaid obligations, the remainder is referred to as Fund Balance

School districts are allowed to set aside (reserve) some or all of this fund balance in order to continue operation of the school district until funding is received from the state and property taxes

“Fund Balance Re-appropriated” is the difference between the end-of-year fund balance and the amount reserved for operations.

The remaining dollar amount must be used to fund the ensuing year's BASE budget

A district that is eligible for GTB will experience a lower BASE mill levy and a lower GTB payment when fund balance is re-appropriated to fund the BASE budget.

Funds

Non-Budgeted Funds: Any fund for which a budget is not required in order to expend money on deposit in the fund School Foods, Impact Aid, miscellaneous

program, building lease and rental, extracurricular, Traffic Education

Budgeted Funds: Any fund for which a budget must be adopted in order to expend money in the fund (20-9-201) General, Building Reserve, Adult Education, Bus

Depreciation, Technology, Retirement, Flexibility, Debt Service

Transfers

Unless specifically authorized by statue: Compensated Absence Fund (20-9-512) TRANSFERS FROM THE GENERAL FUND TO

ANY OTHER FUND AND TRANSFERS TO THE GENERAL FUND FROM ANY OTHER FUNDS ARE PROHIBITED

Reserve ChartPosted on Trustees Report and Annual Audit Report

Fund Reserve Limit

General 10%

Transportation 20%

Bus Depreciation NA

Tuition NA

Retirement NA

Adult Education 35%

Non-Operating 35%

Technology NA

Flex NA

Debt Service NA

Building Reserve 20-9-438

Budget Process

July 1 – August 10: Clerk shall publish notice stating trustee meeting for purpose of considering and adopting the final budget

On or before August 20: Trustees shall meet to consider all budget information

No later than August 25: Trustees shall adopt the final budget Ongoing review and refinement of the District’s

Strategic Plan to articulate priorities Annual work session to inform trustees, staff, parents

and community about school finance/budgeting Ongoing review and analysis of District's current

budget