MISSOURI’S FOUNDATION FORMULA & JCPS

PRELIMINARY BUDGET

1st Step in School Budgeting

• Amend Current Year Budget– Most of the budget repeats

• 77% of Revenues from Property Taxes, Prop C, and Basic Formula

• 83% of Expenses in Salary and Benefits

• Then Determine What Will Be Different Next Year

Amended FY13 Budget

• Original Budget called for $1,232,000 deficit– 24.8% Fund Balance

• After 3 amendments, currently $870,000 deficit– 25.7% Fund Balance

Funding Formula-Current State

• Calculated State Adequacy Target– FY 12 - $6,131– FY 13 - $6,423– FY 14 - $6,716

• No guidance in law on how to handle underfunding once the formula phase-in period ended.– Formula fully phased in after FY12

• General Assembly did not address this last year which left the decision to DESE.

DESE Ruling on Distribution of Formula

• Keep SAT at $6,131 until Proration is 100%– Calculated SAT $6,423 in FY14– All districts get equal percentage increases as

proration rises• After Proration is 100% then SAT can rise.• FY12 Proration = 92.5%• FY12-Formula is over $450 million underfunded

WADA Threshold Changes2011-12 2012-13 Difference

Total ADA (Includes SS) 8,104 8,317 213

F&R Lunch Threshold % 32.0% 38.8%

F&R Lunch Threshold # 2,593 3,227F&RL Students 4,300 4,300 0

F&RL WADA 427 268 -159

LEP Threshold % 0.9% 1.8%

LEP Threshold # 73 150

LEP Students 237 201

LEP WADA 98 31 -67

Total WADA 8,629 8,616 -13

Even though we gained 213 students our WADA count goes down by 13. We will be paid on the prior year. JCPS misses out on over $1,200,000 in funding for those 213 students, if the thresholds did not change

BASIC FORMULA-FY 14

• Calculated SAT increases over 4.5%– $6,716

• Payment SAT remains at $6,131• Governor recommended $66 million increase• Moves proration to 95%• Because of higher SAT

– $600 million underfunded

Description of Revenue Changes $ Amount

LOCAL PROPERTY TAX-New Construction and Personal Property Increase $500,000

STATE AID-Based on Governor’s recommendation $500,000

PROP C – Increased State Collections and Increased Students $150,000

Interest Income (90 day T-Bill has to go higher than 0.1% Someday) $0

County Stock Insurance (FY13 was $750,000 lower than FY12) $0

IDEA & Title I-10% Sequestration -$336,000

TOTAL CHANGE IN REVENUE $814,000

FY14 PRELIM BUDGET-Revenue Changes

FY14 PRELIM BUDGET-Expense Changes

Description of Expenditure Changes $ Amount

Salary-Operate Teacher Schedule & 1.8% to All Other Classes $882,500

Benefits Associated with Raises (Retirement, Medicare, OASDI) $101,900

Health Insurance-5% Increase in Board Contribution $0

Staff Retirements -$250,000

PSRS/PEERS Rate Increases (Remain at 14.5% & 6.86%) $0

Property/Liability Insurance – 10% Increase $22,000

Transportation $50,000

Energy-Increase by 10% (Electricity, Natural Gas, Diesel Fuel) $194,300

TOTAL CHANGE IN EXPENDITURES $1,000,700

FY14 PRELIM BUDGET-Fund Balance

Description of Fund Balance Change $ Amount

FY2013 Change in Fund Balance -$872,000

+ Change in Revenues FY14 vs. FY13 $814,000

- Change in Expenditures FY14 vs. FY13 $1,000,700

- Change In Transfers Out of Operating Fund FY14 vs. FY13 $ 0

TOTAL CHANGE IN FUND BALANCE FY2014 -$1,058,700

RevenueCurrent & Del Prop Tax 41,666,032$ 40,534,122$ -3% 40,880,000$ 0.9% 41,380,000$ 1.2% 41,980,000$ 1% 43,239,400$ 3% 43,839,400$ 1%Prop C (3%) 6,506,778$ 7,097,809$ 9% 7,200,000$ 1% 7,350,000$ 2% 7,570,500$ 3% 7,797,615$ 3% 8,031,543$ 3%

Other Local (0%) 5,334,444$ 5,302,359$ -1% 4,148,500$ -22% 4,148,500$ 0% 4,248,500$ 2% 4,348,500$ 2% 4,448,500$ 2%County (0%) 3,785,382$ 4,126,726$ 9% 3,453,479$ -16% 3,453,479$ 0% 3,453,479$ 0% 3,453,479$ 0% 3,453,479$ 0%State Revenue(Phase In) 13,835,759$ 16,271,282$ 18% 18,110,804$ 11% 18,610,804$ 3% 19,210,804$ 3% 19,810,804$ 3% 20,410,804$ 3%Federal Revenue (0%) 10,385,324$ 8,121,701$ -22% 7,507,816$ -8% 7,171,816$ -4% 7,171,816$ 0% 7,171,816$ 0% 7,171,816$ 0%

Other 158,235$ 189,983$ 20% 189,500$ 0% 189,500$ 0% 189,500$ 0% 189,500$ 0% 189,500$ 0%Student Activity 1,243,836$ 1,192,889$ -4% 1,320,000$ 0% 1,320,000$ 0% 1,320,000$ 0% 1,320,000$ 0% 1,320,000$ 0%

Total Revenues 81,671,953$ 81,643,982$ 0.0% 81,490,099$ 0% 82,304,099$ 1% 83,824,599$ 2% 86,011,114$ 3% 87,545,042$ 2%% Change 2.9% 2.9% -0.2% 1.0% 1.8% 2.6% 1.8%ExpendituresSalaries 49,627,963$ 50,955,609$ 3% 52,535,061$ 3% 53,167,591$ 1% 53,967,591$ 2% 54,767,591$ 1% 55,567,591$ 1%Health Insurance(5%) 5,856,407$ 6,238,983$ 18% 6,125,600$ -2% 6,125,600$ 0% 6,431,880$ 5% 6,753,474$ 5% 7,091,148$ 5%Other Benefits(2%) 7,882,705$ 8,377,761$ 6% 9,085,500$ 8% 9,187,403$ 1% 9,371,151$ 2% 9,558,574$ 2% 9,749,746$ 2%Purchased Services(1.5%) 5,540,438$ 5,124,734$ -7% 5,090,588$ -1% 5,162,588$ 1.4% 5,240,027$ 1.5% 5,318,627$ 1.5% 5,398,407$ 1.5%Supplies (0%) 7,300,710$ 7,504,787$ 3% 6,482,195$ -14% 6,482,195$ 0% 6,482,195$ 0% 6,482,195$ 0% 6,482,195$ 0%Utilities (10%) 1,803,110$ 1,792,244$ 11% 1,942,600$ 8% 2,136,860$ 10% 2,350,546$ 10% 2,585,601$ 10% 2,844,161$ 10%Student Activity 1,258,992$ 1,257,619$ 11% 1,320,000$ 5% 1,320,000$ 0% 1,320,000$ 0% 1,320,000$ 0% 1,320,000$ 0%

Total Expenditures 78,011,334$ 79,994,118$ 3.8% 81,261,544$ 2% 82,262,237$ 1% 83,843,390$ 2% 85,466,062$ 2% 87,133,247$ 2%% Change 1.2% 3.8% 1.6% 1.2% 1.9% 1.9% 2.0%

Transfer Out to Fund 4 3,021,937$ 2,100,000$ 1,100,000$ 1,100,000$ 1,100,000$ 1,100,000$ 1,100,000$

Ending Bal Oper Fund 22,449,074$ 21,998,938$ 21,127,493$ 20,069,355$ 18,950,564$ 18,395,616$ 17,707,412$ 27.7% 26.8% 25.7% 24.1% 22.3% 21.3% 20.1%

Chg in Ending Oper Bal 638,682$ (450,136)$ (871,445)$ (1,058,138)$ (1,118,791)$ (554,948)$ (688,204)$ 20% Fund Balance 16,206,654$ 16,418,824$ 16,472,309$ 16,672,447$ 16,988,678$ 17,313,212$ 17,646,649$ Student Activity Balance 388,349$ 324,009$ 388,349$ 388,349$ 388,349$ 388,349$ 388,349$

2011-12 2012-13 2013-14Projection-Re

2015-16Projection-Non Re

2016-17Projection-ReACTUAL Projection-Non ReACTUAL

2010-11

JCPS Operating Budget-Preliminary FY2014Projection-Non Re

2014-15

• FEDERAL SEQUESTRATION IS MAJOR REVENUE QUESTIONMARK.

• CHANGES MADE IN HEALTH INSURANCE, RETIREMENT, & TRANSPORTATION HAVE BEEN HUGE IN ALLOWING US TO MAINTAIN OUR CURRENT LEVELS OF EDUCATION

• DISTRICT’S FISCAL POSITION REMAINS SOLID

SUMMARY