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School Finance in Iowa

School Finance in Iowa. Overview. School District Finance Overview. Revenue Formula Categorical Miscellaneous Sources Budgets/Expenditures General Fund Physical Plant and Equipment Fund Management Fund Other Funds. School District Finance Components.

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School Finance in Iowa

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  1. School Finance in Iowa Overview

  2. School District Finance Overview • Revenue • Formula • Categorical • Miscellaneous Sources • Budgets/Expenditures • General Fund • Physical Plant and Equipment Fund • Management Fund • Other Funds

  3. School District Finance Components • Combined District Cost (formula) Regular, Guarantee, Supplementary Weighting, Special Education, AEAs • Instructional Support • Management Levy • Physical Plant & Equipment Levy • Public Education and Recreation Levy • Debt Service Levy • Local Option Sales & Services Tax • State/Federal Categoricals

  4. School District Finance Components (FY 2007) • Combined District Cost $3,138.7 mill. • Instructional Support $162.4 mill. • Management Levy $100.7 mill. • PPEL $112.9 mill. • PERL $1.9 mill. • Debt Service Levy $102.4 mill. • LOSST/SILO $290-$300 mill. • Categoricals $212.8 mill.

  5. Equity in Expenditure Property Tax Relief Equalize Taxation Uniform State Aid Allocation Formula Predictable Simple Pupil Driven Goals and Principles

  6. Provide for Local Discretion/Incentives Establish Maximum Spending Control One Funding Formula AEA + K-12 Provides Adequate Funding Promotes High Achievement Modifies the Impact of Community and Family Background on Achievement Goals and Principles

  7. School District Finance Components • Combined District Cost (formula) Regular, Guarantee, Supplementary Weighting, Special Education, AEAs • Instructional Support • Management Levy • Physical Plant & Equipment Levy • Public Education and Recreation Levy • Debt Service Levy • Local Option Sales & Services Tax • State/Federal Categoricals

  8. Combined District Cost Regular Program Cost +Weighted Enrollment Funding + Budget Guarantee (Budget Adjustment) + AEA Program Funding + SBRC Funding Combined District Cost

  9. Regular Program District Cost District Cost Per Pupil X Number of Pupils Regular Program District Cost (Basic “pool” of money for the district)

  10. District Cost Per Pupil – FY 06 $5,106 - Highest $4,931 - Lowest $175 - Range District Cost Per Pupil Increases Each Year by a Per Pupil Amount (Per Pupil Allowable Growth)

  11. Allowable Growth Rate • Recommended by the Governor • Established by the Legislature

  12. AllowableGrowth Amount Allowable Growth Rate xState Cost Per Pupil = Growth Per Pupil for example 2006-2007 4% Allowable Growth Rate X FY06 State Cost Per Pupil ($4,931) =$197 Per Pupil

  13. State Cost Per Pupil FY 2007: $4,931+$197= $5,128 FY06 State Cost + Allowable Growth

  14. State Cost Per Pupil $5,128 • Used to Determine Allowable Growth Per Pupil for the Next Year • Used to Determine Minimum District Cost

  15. Allowable Growth - History

  16. Basic Funding Pupil Driven System (Pupils x Cost Per Pupil = Regular Program Budget) • Pupil Count • Pupils Weighted • Special Education • English Language Learners • Share Teachers/Pupils/Regional Academies • At-Risk Formula • Reorganization Incentives • Budget Adjustment

  17. Basic Funding Pupil Count • Pupils are counted for funding purposes by where they reside – not where they attend • Resident Pupils Counted as 1.0 • Shared Time (Nonpublic counted FTE basis) • Count taken as of October 1 • October 2006 used to determine 2007-08 funding

  18. Basic Funding Pupil Count • Basic enrollment • 451,884 Resident • Includes Dual Enrolled • Home School Assistance Students • 23,155 Open Enroll Out • 5,931 Tuition Out

  19. Basic Funding Pupil Count • Shared time (Nonpublic) • 332 FTE Students • Tuitioned to a Community College • 1680 FTE Students • Other Unique Situations • 122 FTE Students

  20. Weighted Enrollment Funding Pupil Driven System • Weights “Add” Pupils • Weights x District Cost Per Pupil Adds Funding

  21. Weighted Enrollment Funding Pupil Driven System • Weights • Provide Funding to Cover Additional Cost • Special Education • English Language Learners • Shared Teachers/Students/Regional Academies • At-Risk Students • Provide Incentives • Shared Teachers/Students/Regional Academies • Whole Grade Sharing/Reorganization

  22. Weighted Enrollment Funding • Special Education Weighting FY07 • Level 1 weight = 0.72 (30,097) • Level 2 weight = 1.21 (15,550) • Level 3 weight = 2.74 (24,383) • Generates $361 Million

  23. Weighted Enrollment Funding • English Language Learners (ELL) FY07 • Weight = .22 • Student Eligible to be Counted for Fours Years (Effective with FY07: 3,089) • Total Additional Weight = 735.56 • Generates $15.9 Million

  24. Eligibility Increased from 3 years to 4 years in FY 2007 Weight Increased from 0.19 to 0.22 in FY 2004

  25. Weighted Enrollment Funding • Supplementary Weighting • Increase Opportunities • Cover Excess Cost of Opportunities and Sharing • Encourage Districts to Share Teachers/Students • Provide High School Students Access to Community College Credit Courses • Encourage Districts to Reorganize

  26. Weighted Enrollment Funding • Supplementary Weighting • Shared Students/Teachers • Weight 513.71 • Generates $2.6 Million • Dual Credit (Community College and High School) • Weight 1,920.81 • Generates $9.7 Million

  27. Weighted Enrollment Funding • Supplementary Weighting • Regional Academies • Weight 46.23 • Generates $238,000 • Reorganization Incentives • Weight 88.8 • Generates $459,000

  28. Weighted Enrollment Funding • At Risk Supplementary Weighting • Weight 2,110.212 • Generates $10.9 Million

  29. Weighted Enrollment Funding • Supplementary Weighting • Weight 4,793 • Generates $40.6 Million

  30. Budget Adjustment (Previously Called Budget Guarantee) Regular Program Budget = Pupils x District Cost Provides an adjustment in the Regular Program for districts with no or low growth in enrollments • Phase-out began in FY 2005 • Scale Down Version • 101% Adjustment

  31. Budget Adjustment FY06 • Total B.A.$19.5 mill. (174 districts) • Scale Down(80% Based on FY04) $16.9 mill. (133 districts) • 101% Adjustment(101% based on Previous Year) $2.5 mill. (41 districts)

  32. Budget Adjustment FY07 • Total B.A.$13.8 mill. (149 districts) • Scale Down(70% Based on FY04) $11.0 mill. (105 districts) • 101% Adjustment(101% Based on Previous Year) $2.8 mill. (44 districts)

  33. Combined District Cost Regular Program Cost + Budget Guarantee (Budget Adjustment) + Weighted Enrollment Funding + AEA Program Funding + SBRC Funding Combined District Cost

  34. AEA Program Funding Combined District Cost • AEA Funding • Pupil Driven • Flows Through Local District • Special Education Support Services • Media Services • Educational Services

  35. Area Education Agency Programs FY 2007: • Special Education Support Services $109.9 Million (After State Aid Reduction) State Aid and Property Tax $15.5 Million State Aid Reduction Reduction • Educational Services $24.1 Million Property Tax • Media Services $21.8 Million Property Tax

  36. Combined District Cost Regular Program Cost + Budget Guarantee (Budget Adjustment) + Weighted Enrollment Funding + AEA Program Funding + SBRC Funding Combined District Cost

  37. School Budget Review Committee Funding Five Member Committee Authority to Grant Budget Increases Modified Allowable Growth (Property Taxes) Unique and Unusual Circumstances “Manage” Formula Special Education Weights Cash Reserve Negative Unspent Balances Grants Budget Authority

  38. School Budget Review Committee Funding Total Modified Allowable Growth Granted in FY05 $160 million

  39. Revenue - Foundation Formula • Required Local Levy - Uniform Levy • State Aid • Additional Levy

  40. State Aid • Increase Funding for Districts • “Fair” Method to Distribute State Aid • Provide Property Tax Relief • Equalize Effort

  41. Foundation Formula Additional Levy Foundation Level FY 07: 87.5% of State Cost ($5,128) = $4,487 Per Pupil State Aid Uniform Levy $5.40 Per $1000 Valuation

  42. Foundation Formula Property Rich District Property Poor District Foundation Level Foundation Level Additional Levy Additional Levy State Aid State Aid Uniform Levy $5.40 Uniform Levy $5.40

  43. Foundation Formula Special Education AEA Special Regular Program Instruction Education Support Additional Levy Additional Levy Additional Levy 87.50% Foundation 79% Level Foundation State Aid Level State Aid State Aid Uniform Levy

  44. Foundation Formula AEA Special Special Education Regular Program Education Support Instruction Additional Levy Additional Levy Additional Levy $299.8 million $46.7 million $23.1 million State Aid State Aid State Aid $1,633.3 million $314.2 million $98.5 million* Uniform Levy $569.7 million *Does not include the state aid reduction of $15.5 million

  45. Revenue - Foundation Formula • Uniform Levy • $569.7 million • State Aid • $2,048.4 million • Additional Levy • $520.4 million

  46. School District Finance Overview • Revenue • General Fund • Formula • Required • Discretionary Miscellaneous Income State categoricals Federal categoricals

  47. Discretionary • Instructional Support Program • Up to 10% of the Regular Program Budget • Board Approved for Five Years • Voter Approved for Ten Years FY 2007: • 334 Districts $151.3 Million • State Aid - ($14.4 Million [Frozen]) • Property Tax - ($64.7 Million) • Income Surtax- ($53.3 Million) • $39.9 Million Additional State Aid to “Fully” Fund

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