Kettle Moraine 2018-2019 Budget Presentation June 19, 2018 Budget - PowerPoint PPT Presentation

Kettle Moraine 2018-2019 Budget Presentation June 19, 2018 Budget Hearing / Annual Meeting

School Funding Simplified Spend State Pays You Pay _ = Revenue State Property Limit Aid Tax $4,719 $5,465 $10,184 $ 9,870 $1,538 $8,332 2017-18

$0 2017-2019 State Biennial Budget 2017-2019 State Biennial Budget Per-pupil Revenue Limit Adjustment 2017-18 $0.00 (for both fiscal years) 2018-19 “Per Pupil (Categorical) Aid” Adjustments $200 per member increase in 2017-18 • $204 per member increase in 2018-19 •

Revenue (Resources available for operations) • Revenue Limit • Enrollment decline (45) • Revenue limit reduction ($874,000) or (2.3%) reduction • Lowest Revenue limit since 2003-04

Maximum Revenue Per Member (Revenue Limit (2017-18) )

Maximum Revenue per Member to… Dollars allowed for operations • Revenue Limit = Max. Revenue/Member x Membership (KMSD = $9,870/member x 3,627 members) • $11,631/Member (County (high)) vs. $9,870 (KMSD) The ($1,761) difference x 3,627 (KMSD) members = $6.4M Less per year for Operations • $10,346/Member (County (average)) vs. $9,870 (KMSD) The ($476) difference x 3,627 (KMSD) members = $1.7M Less per year for Operations Consider the Cumulative effect…

The CUMULATIVE effect… Revenue Limits have been in place since 1993 (25 years) Kettle Moraine vs…. Waukesha County (average) • Kettle Moraine is allowed $1.7M less revenue per year to operate $1.7M x 25 years = $42.5M less to operate over 25 years (almost one (1) annual operating budget) Waukesha County (high) • Kettle Moraine is allowed $6.4M less per year for operations $6.4M x 25 years = $160.0M less to operate over 25 years (about three (3.5) KMSD annual operating budgets)

Other Revenue (available for operations) • “Per Pupil (Categorical) Aid” • $654 per member for 2018-19 • $204 increase over 2017-18 • Outside of Revenue Limits • New (Categorical) Aid started in 2013-14 Fiscal Per Pupil KMSD KMSD Year Allocation Membership Per Pupil Aid 2013-14 $75 3,984 $298,800 2014-15 $150 3,878 $581,700 2015-16 $150 3,767 $565,050 2016-17 $250 3,694 $923,500 $450 3,627 2017-18 $1,632,150 $654 3,582 $2,342,628 2018-19

Kettle Moraine State Aid Property Tax Kettle Moraine Revenues by Source (all Funds) $40,000,000 $35,000,000 $30,000,000 Property Taxes $25,000,000 State General Aid Open Enrollment Transfer-In $20,000,000 State Categorical Aid Federal Aid $15,000,000 Nutrition & Community Service Other $10,000,000 $5,000,000 $- 2016-17 2017-18 2018-19

Expenditures (Operational Costs) A look at the past… Kettle Moraine “Tools” implemented in 2007-08 (prior to Act 10) • Post-Employment Benefits – eliminated for Administrative Staff (moving forward) • Employee Insurances – Bid out for non- represented staff through Waukesha County Cooperative

Expenditures (Operational Costs) Act 10 “Tools” Implemented… 2011-12 Wisconsin Retirement System • 50% contribution by employee Consumer Price Index (CPI) • 2.13% Maximum for 2018-19 Employee Insurances – Bid / Plan Design Post retirement benefits - eliminated (remaining cost supported by committed funds in the general fund balance)

Post Employment Benefits July 1, 2006 Other Post Employment Benefit (OPEB) & Pension Liability $32,517,782 July 1, 2017 (95% Reduction) Other Post Employment Benefit (OPEB) & Pension Liability * $ 1,844,472 *Total liability will be paid off by 2020-21

2018-19 Expenditures by Object (All Funds) Kettle Moraine State Aid Property Tax

2014-15 … a look at the past Kettle Moraine State Aid Property Tax Expenditures by Object (All Funds)

Staffing Plan * Food Service is self-supporting and FTE includes 1.0 FTE to support parochial services

Kettle Moraine State Aid Property Tax Kettle Moraine Expenditures by Function

Balancing the General Fund (Operations) Budget • Current fund balance is 29.4% of general fund expenditures (24% after 2017-18) • Funding committed to support the remaining pay-as-you-go post-retirement benefits as of June 30, 2017 - $2.2 million • Last payment due in 2020-21 fiscal year • 2018-19 Balanced Budget • $2.7M in expenditure reductions to balance

Kettle Moraine State Aid Property Tax Kettle Moraine Revenue Limit, State Aid, and Property Tax 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 PROPERTY TAX 20,000,000 STATE AID 15,000,000 10,000,000 5,000,000 - 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Kettle Moraine State Aid Property Tax Kettle Moraine General Fund Revenue/Expense Summary Projection Fund 10 - General Fund - Projection Summary REVENUE & EXPENDITURE PROJECTIONS BUDGET % ∆ % ∆ % ∆ % ∆ % ∆ FY - 2018 FY - 2019 FY - 2020 FY - 2021 FY - 2022 FY - 2023 REVENUE Local Sources $32,210,592 $32,240,327 0.09% $31,909,080 -1.03% $31,825,853 -0.26% $32,066,396 0.76% $31,971,352 -0.30% State Sources $7,923,301 $7,762,867 -2.02% $7,757,695 -0.07% $6,971,218 -10.14% $6,296,150 -9.68% $5,728,004 -9.02% Federal Sources $213,291 $213,291 0.00% $213,291 0.00% $213,291 0.00% $213,291 0.00% $213,291 0.00% Other $3,894,265 $3,915,821 0.55% $4,069,491 3.92% $4,103,409 0.83% $4,237,213 3.26% $4,452,837 5.09% TOTAL REVENUE $44,241,449 $44,132,306 -0.25% $43,949,557 -0.41% $43,113,771 -1.90% $42,813,050 -0.70% $42,365,484 -1.05% EXPENDITURES Salary and Benefits $29,519,653 $28,171,604 -4.57% $28,642,048 1.67% $29,260,229 2.16% $29,775,162 1.76% $30,558,947 2.63% Other Objects $16,816,049 $15,960,701 -5.09% $16,258,164 1.86% $16,497,307 1.47% $16,770,245 1.65% $17,052,443 1.68% TOTAL EXPENDITURES $46,335,702 $44,132,306 -4.76% $44,900,213 1.74% $45,757,536 1.91% $46,545,407 1.72% $47,611,390 2.29% (CUMULATIVE BUDGET SHORTFALL) ($2,094,253) $0 ($950,656) ($2,643,765) ($3,732,357) ($5,245,906) ANNUAL BUDGET SHORTFALL (Non-Cumulative) ($2,094,253) $0 ($950,656) ($1,693,109) ($1,088,592) ($1,513,549)

Kettle Moraine State Aid Property Tax Kettle Moraine Tax Levy Property Tax Levy Summary Actual Actual Budget Budget Budget All Funds 2016-17 2017-18 2018-19 Change Percent General Fund $ 30,810,350 $ 31,416,092 $ 31,406,944 $ (9,148) -0.03% Referendum Debt Service Fund 4,234,094 4,236,631 4,223,881 (12,750) -0.30% Non-Referendum Debt Service Fund 30,000 35,000 35,000 - 0.00% Capital Expansion Fund 225,000 225,000 225,000 - 0.00% Community Service Fund 215,255 215,255 215,255 - 0.00% Total Levy $ 35,514,699 $ 36,127,978 $ 36,106,080 $ (21,898) -0.06% Equalized Tax Base $3,447,777,975 $3,584,468,052 $3,674,079,753 $89,611,701 2.50% Equalized Tax Rate Per $1,000 $ 10.30 $ 10.08 $ 9.83 $ (0.25) -2.44%

Kettle Moraine State Aid Property Tax Waukesha County Tax Rates

Budget Timeline February - April September November March May Student Administrative Enrollment Budget Rationale & Recommendations Interim Budget General Aid Certified Annual Meeting 5 Year Forecast shared with School Board/Cabinet/Principal Staff & Public Meetings Council

Next Steps - Advocate for legislative change - Determine District direction - Additional Capital Needs (Design Lab; Outdoor Facilities) - Referendum Discussion - Operating - Capital - Combination (Operating/Capital)

“Let your dreams be bigger than your fears and your actions be louder than your words.” Janina Pulido