Budget Open House Presentations February 6, 2013 1 Proposed 2013 - PowerPoint PPT Presentation

Mat ‐ Su Borough School District Board of Education Budget Open House Presentations February 6, 2013 1

Proposed 2013 ‐ 2014 Budget Process Timeline 2

Chain of Command 3

Where Does the Money Come From? 4

Breakdown of the Mat ‐ Su Borough School District Funding by Source Other Local Revenue & Mat ‐ Su Borough 26% Federal Revenue State of Alaska 1% 73% 5

Enrollment PROJECTION 6

Enrollment Projection: Cohort Survival Method Beginning with Fiscal Year 2011 ‐ 2012, the state redefined the methodology for counting twelfth grade students. To prevent an anomaly from occurring with future projections, adjustments were made to eleventh and twelfth grade enrollments for all high schools. The student count for eleventh grade was reduced by five percent and the student count for twelfth grade was increased by five percent. 7

Enrollment History and Forecast 8

Actual Enrollment vs Projected Enrollment Accuracy 9

Charter School Actual Enrollment vs Projected 10

State Aid FOUNDATION FORMULA 11

Recent History of Foundation Formula HB 273 Enacted in 2008 • Multi ‐ Year Funding Plan • District Cost Intensive Base Student Fiscal Year Factor Multiplier Allocation FY2009 50% of ISER X9 $5,480 FY2010 62.5% of ISER X11 $5,580 FY2011 75% of ISER X13 $5,680 FY2012 87.5% of ISER X13 $5,680 FY2013 100% of ISER X13 $5,680 12

ADM to Adjusted ADM • Step 1: School Size Adjustment • Step 2: District Cost Factors (Area Cost Differential) Step 3: Special Needs Funding • Step 4: Voc Ed Funding Factor • Step 5: Intensive Services Funding • • Step 6: Correspondence 13

Step 1: School Size Adjustment + = + = The appropriate formula from the school size factor table is used to calculate the adjusted ADM for each school. 14

Step 2: District Cost Factors The district’s school size adjusted ADM is multiplied by the district cost factor. 15

Step 3: Special Needs Factor Vocational Education Gifted / Talented Bilingual Education Special Education The district’s previously adjusted ADM is now multiplied by the Special Needs factor of 1.20 (additional 20%) 16

Step 4: Voc Ed Funding Factor Vocational Education The district’s previously adjusted ADM is now multiplied by the Career & Technical Education factor of 1.015 (additional 1.5%) 17

Step 5: Intensive Needs Funding = The district’s intensive count is added to the previously adjusted ADM. 18

Step 6: Correspondence = The district’s correspondence count is now added to the previously adjusted ADM to arrive a the Final Adjusted ADM. 19

Components of the State Foundation Formula The graph below illustrates the components of the State Foundation Formula for the fiscal year 2013 ‐ 2014. The State Foundation Formula, as authorized by Alaska Statute Title 14, also defines the minimum required local contribution and the maximum allowable contribution by local boroughs and municipalities across the state. 20

Breakdown of Projected FY 14 State Foundation Formula Step 1: AS 14.17.450 applies a school ‐ size factor adjustment to the district ADM. The Adjusted ADM (AADM) for school size is calculated on a per school basis using the table below. ( Correspondence program ADM is excluded from the school ‐ size adjustment factor and any subsequent adjustments that increase the AADM .) 17,317.00 Projected Enrollment ‐ 1,817.00 Correspondence Count 15,500.00 District Cost Factor AADM 17,728.57 After School Size Adjustment 21

Breakdown of Projected FY 14 State Foundation Formula Step 2. AS 14.17.460 provides for a cost of 17,728.57 AADM from Step 1 living allowance for schools outside the X .070 District Cost Factor Anchorage Municipality. The adjustment is 1,241.00 District Cost Factor AADM referred to as the “District Cost Factor” and increases the adjusted AADM from 17,728.57 + 1,241.00 = 18,969.57 AADM Step 1 by (0.070). Step 3. AS 14.17.420 provides a Special 18,969.57 AADM from Step 2 Needs adjustment for programs that x .20 Special Needs Factor support special education, talented and 3793.91 Special Needs Factor AADM gifted instruction, vocational education, and English language learner instruction. 18,969.57 + 3,793.91 = 22,763.48 AADM The adjusted AADM from Step 2 is increased by the “Special Needs Factor” of (0.200). 22

Breakdown of Projected FY 14 State Foundation Formula Step 4. AS 14.17.420 provides for 22,763.48 AADM from Step 3 additional funding to support vocational X .015 Voc Ed Factor education in grades 7 through 12. The 341.45 Voc Ed Factor AADM adjusted AADM from Step 3 is increased by the “Voc Ed Factor” of (0.015). 22,763.48 + 341.45 = 23,104.94 AADM Step 5. AS 14.17.430 funds all 1,817.00 Correspondence AADM correspondence students at 80% of the x .80 Correspondence Factor ADM for these students. Correspondence 1,453.60 Correspondence adjusted AADM students have been excluded from all adjustments in the Foundation Formula 23,104.94 + 1,453.60 = 24,558.54 AADM that provide increases to the AADM. This adjusted AADM is added to the AADM from Step 4. 23

Breakdown of Projected FY 14 State Foundation Formula Step 6. AS 14.17.420 provides for additional funding to support intensive needs students. An Intensive Needs 321.00 Intensive Needs AADM Student is defined as a child who is X 13.00 Intensive Needs Factor medically fragile, has significant 4,173.00 Intensive Needs adjusted AADM developmental disabilities, and/or may have substance abuse issues. The 24,558.54 + 4,173.00 = 28,731.54 AADM intensive needs AADM on the last day of the count period is multiplied by the Intensive Needs Factor and then added to the AADM from Step 5. 24

Breakdown of Projected FY 14 State Foundation Formula Step 7. AS 14.17.470 defines the Basic Need for education funding in school districts as the Base Student Allocation multiplied by the district total AADM resulting from Steps 1 through 6. This is the amount that the state has determined 28,731.54 District’s Total AADM to be the funding for education in a x$ 5,680.00 Base Student Allocation district, but this is not the amount that the $163,195,125.26 Basic Need district will receive from the state. 25

Breakdown of Projected FY 14 State Foundation Formula Step 8. AS 14.17.410 prescribes a The Lesser of: reduction to the Basic Need for education $165,434,487.00 PY Basic Need for districts and municipalities. This reduction is defined as the “Minimum X .45 $ 74,445,519.00 45% of PY Basic Need Required Local Contribution” and is defined as the lesser of 45% of prior year or (PY) Basic Need or 2.65 tax base for the borough or municipality for the prior year (PY). For our district this would be the $9,568,003,300.00 Tax Base (2012) 2.65 mil tax levy of $25,355,209.00. X 0.00265 Mil Rate Factor $ 25,355,209.00 2.65 Mil Tax Levy 26

Breakdown of Projected FY 14 State Foundation Formula Step 9 (continued). AS 14.17.410 prescribes a reduction to the Basic Need for education for districts and $163,195,125.00 Basic Need (Step 8) $163,195,125.00 Basic Need (Step 8) municipalities. This reduction is defined as ‐ $ 25,355,209.00 Min. Required Local ‐ $ 25,355,209.00 Min. Required Local the “Minimum Required Local $137,839,916.00 Net Basic Need $137,839,916.00 Net Basic Need Contribution” and is defined as the lesser of 45% of prior year (PY) Basic Need or 2.65 mils of the tax base for the borough or municipality for the prior year (PY). For our district this would be the 2.65 mil tax levy of $25,355,209.00. 27

Breakdown of Projected FY 14 State Foundation Formula Step 10. AS 14.17.410, Quality Schools Funding, was a grant that was incorporated into the Foundation Formula 28,732.54 Total Adjusted ADM in 1998. Prior to 1998, Quality Schools X$ 16.00 Quality Schools Factor Funding was a separate grant that was $ 459,704.58 Quality Schools Funding intended to improve student learning and was aligned with state standards. The $137,839,916.52 Net Basic Need Quality Schools Funding is calculated using +$ 459,704.58 Quality Schools Funding the total adjusted ADM for the district $138,299,621.00 Net Foundation Funding multiplied by the Quality Schools factor of $16.00. The Quality Schools Funding is then added to the net Basic Need from Step 9. 28

Breakdown of Projected FY 14 State Foundation Formula Step 11. AS 14.17.410 provides an The greater of: opportunity for borough and municipalities to contribute to education $9,568,003,300.00 Assessed Valuation in their district at a level higher than the X .002 Mil Rate Factor “Minimum Required Local Contribution.” $ 19,136,007.00 2 Mil Tax Levy Defined as the “Maximum Allowable Local Contribution,” this level of funding is or determined by the prior year adjusted $ 165,434,487.00 Prior Year Basic Need assessed valuation of all property within X .23 the borough or municipality and is the $ 38,049,932.00 23% of Basic Need greater of 2 mils tax levy or 23% of + 25,355,209.00 Min. Req’d. Local projected Basic Need added to the $ 63,405,141.00 23% Basic Need plus Minimum Required Local Contribution. Min.Req’d. Local For our district, Maximum Allowable Local Contribution would be $61,667,111.00. 29

Matanuska ‐ Susitna Borough LOCAL CONTRIBUTION 30