Oct. 6, 2015 ISFIS SitRep Webinar Larry Sigel, Partner Margaret Buckton, Partner © Iowa School Finance Information Services,

Webinar Reminders Use the chat pane – to express your thinking as we pose questions (chat is confidential unless you select chat to all) To ask additional questions or provide examples of how things might work in your school To suggest future webinar content To let us know you are still there To let us know of technical difficulties We will get back to you soon if we don’t answer your question during the webinar 2

State of State Revenues Governor's Executive Order on Anti-bullying DOR Proposed Rules on Sales Tax Exemption Difference between various levels of home schooling and what districts must do FACTool Updates Opportunity for Input: State Board of Education Rules public comment period Reminders on Board Roles and Responsibilities - supports for Superintendents with new board members Board Engagement in Advocacy: Resolution Template for Equity Issues Map of the Week Dates, Deadlines, Recipe of the Week Agenda 3

State of State Resources LSA Monthly Revenue Memo 4

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The FY 2016 REC income tax estimate of $4.494 billion represents a projected increase of 6.8% compared to actual FY Through September, personal income tax receipts have increased $35.8 million (4.4%). By subcategory, withholding payments increased $36.6 million (4.8%), estimate payments decreased $4.8 million (-4.6%), and payments with returns increased $4.0 million (18.8%). 6

GF Receipts through Sept. 30, Personal income tax (+ $35.8 million, 4.0%) Sales/use tax (negative $4.6 million, -0.6%) Corporate tax (negative $8.9 million, -7.8%) Status of the Economy: Iowa nonfarm employment was reported at 1,565,700 for the month of August 2015 (not seasonally adjusted), 22,000 (1.4%) higher than August Information related to State General Fund receipts is available on the Fiscal Services Division website at:

Branstad’s Executive Order Gov’s Office for Bullying Prevention Est. Sept. 28, nts/Executive%20Order%2086%20Signed.pdf 8

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Duties of the Office: Training: ensure schools have access to training on establishing anti-bullying policies and conducting investigations, made available electronically or through other means. 24-hour Hotline: promote YourLifeIowa.org, existing hotline for students who feel threatened, bullied or harassed at school. Reporting Procedures: Work with DE to develop procedure for prompt parent notification following reported incident. Cyberbullying: develop guidelines promoting safety from cyberbullying and how to respond to bullying that takes place electronically and interferes with learning at school. 10

Duties of the Office: Data Collection: work with schools and DE to address inconsistencies in reporting of bullying and harassment data Varsity Interscholastic Athletic Participation: Convene a working group of stakeholder groups to propose administrative rules to the state BOE allowing a victim of founded bullying/harassment to open enroll and participate immediately in varsity sport. Bullying and prevention student mentoring pilot program: promote a student mentoring program and spread best practice for bullying and violence prevention for middle and high school students. 11

Disclaimer “This Order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity, by any party against the State of Iowa, its Departments, Agencies, or Political Subdivisions, or its officers, employees, or agents, or any other person.” 12

Legislative Reaction Reported in Media anti-bullying-office-raises-questions/ / anti-bullying-office-raises-questions/ / Democratic state Sen. Herman Quirmbach, chairman of the Senate Education Committee, said the House should reconsider the bill this year. He also said he supports the new bullying-prevention office, but he's critical of its creation through an executive order, which many anti-bullying groups say was a surprise. "Let's all work together instead of somebody trying to cowboy some issue, no matter how much merit it has," Quirmbach said. House Education Committee chairman state Rep. Ron Jorgensen wants a breakdown of how the center will spend $250,000, (which they plan to request in the 2016 Session budget) which Heisterkamp said he plans to provide. The Sioux City Republican said he understands Branstad's rationale for the executive order. He says he's less optimistic about the chances of anti-bullying legislation advancing. "I do agree that having something codified is much stronger than just having an executive order that can be changed whenever the next person becomes governor," he said. 13

DOR Proposed Rule on Sales Tax Exemptions 14

Department of Revenue Exemptions Rules Iowa Department of Revenue has proposed a rule that would significantly impact the collection of Sales and Use Tax. Broadens the “processing exemption” : if an item is used in the production of a taxable, finished product, that item is exempt from Sales and Use tax. Cost estimate is $46 million annually of which approximately $8 million would be from the State Penny for School Infrastructure. Unusual route because the DOR is proposing rules to accomplish what they proposed as legislation 3 years ago. “Any interested person may make written suggestions or comments on these proposed amendments on or before October 20, Such written comments should be ed to Victoria Daniels at or mailed to Victoria Daniels, Policy and Communications Divisions, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306…Requests for public hearing must be received by October 20, 2015” ators-consider-46m-tax-exemptions/ / 15

Understanding Home School DE’s Private Instruction Comparison Chart /PrivateInstructionComparisonChart pdf 16

17 HF 215 in 2013 Session created a new classification of Home School: IPI which is exempt from state statutes, but does provide a report if requested Did not eliminate CPI, which has two different options: Option 1 by or under supervision of a licensed teacher (HSAP) Option 2 by a non-licensed person School district has different requirements in each case

School Responsibilities Reporting Requirements Form A: Option 1 parent submits form A and evidence of immunizations by Sept 1. Option 2 parent May submit form A, but must for dual enrollment and an annual assessment is required. Superintendent or DE may request (in writing) that IPI parent identify the instructor, location, name of authority responsible for IPI and names of students enrolled. 18

School Responsibilities Progress Evaluations: Option 1 supervising teacher monitors progress. District provides assessments at no cost. Option 2 parent may have students assessed and may report annual evaluation to the district by June 30. IPI has no requirement for annual testing, but if requested and with advanced notice to the district, district shall provide courtesy standardized testing at no cost to parent. 19

School Responsibilities Dual Enrollment: Option 1 students may dual enroll (academics, special ed, extracurricular). Option 2 may dual enroll but must submit form A and have annual assessment. IPI students can not dual enroll (including special ed or extracurricular). Senior Year Plus: Option 1 may. Option 2 may with Form A and assessment. IPI may access only concurrent enrollment community college credit by enrolling through the district. 20

School Responsibilities Drivers Ed: District must offer or make available to Option 1, Option 2 and IPI students without requiring dual enrollment. 21

Financial Analysis Comparison Tool FACT 22

Prints on one page Financial trends: Enroll UBA Solvency Open Enroll Tax Rates / Valuation New Authority Trend 23 Snapshot with FY 2016 Tax Rates

FACT Schedule FY 2016 Tax Rates uploaded BEDS staffing and enrollment typically in December FY 2015 CAR next Spring Other data as we get it 24

Proposed Rules Opportunities to Weigh in 25

State Board Proposes Rules Sept. 17, 2015, the State BOE noticed a revision to IAC – Iowa Reading Research Center - Criteria for Intensive Summer Literacy Programs. Proposes 8 criteria that intensive summer literacy programs must meet, when they are required to be offered in Summer Begins a 108-day period of public comment. See the Sept. 23 Webinar for criteria and details 26

Comments Send written comments on the proposed amendments to Phil Wise, Iowa Department of Education, Second Floor, Grimes State Office Building, Des Moines, Iowa ; telephone (515) ; ; or fax (515) A public hearing will be held on Nov. 3, 2014, from 2:00 to 3:00 p.m. in the State Board Room, Second Floor, Grimes State Office Building, East 14th Street and Grand Avenue, Des Moines, Iowa, at which time persons may present their views either orally or in writing. 27

Assessments Proposed Sept. 17, 2015 State BOE noticed a revision to Iowa Administrative Code (IAC) – General Accreditation Standards. Signals intention to select the Smarter Balanced Assessments as our state accountability assessments to be initially administered in May Begins a 108-day period of public comment. See Sept. 23 SitRep for details and resources 28

Comments Send written comments on the proposed amendments to Nicole Proesch, Iowa Department of Education, Second Floor, Grimes State Office Building, Des Moines, Iowa ; telephone (515) ; ; or fax (515) A public hearing will be held on Nov. 4, 2014, from 9:00 to 10:00 a.m. in the State Board Room, Second Floor, Grimes State Office Building, East 14th Street and Grand Avenue, Des Moines, Iowa, at which time persons may present their views either orally or in writing. 29

Basic Finance for Board Members See the Sept 23 SitRep for resources Video, PPT, Definitions, Etc. 30

Roles and Responsibilities for Board Members 31

ISFIS presentation for local use Present virtually as part of ISFIS subscription At your board table in person for ISFIS subscription rate consulting fee Use information on your own (tailor to your own board policy to make the case) Let us know what else you need 32

Board Member vs. Board of Directors Iowa Code: Directors. The affairs of each school corporation shall be conducted by a board of directors, the members of which in all community or independent school districts shall be chosen for a term of four years. Per Iowa law, only the board has authority. Individual members do not have authority to act alone. Laws applying to public officials generally apply to school board members (gift law, open meetings, etc.) 33

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Role of School Board Members

Iowa Code Powers and Jurisdiction Each school district shall continue as a school corporation, unless changes as provided by law, and as such, may sue and be sued, hold property, and exercise all the powers granted by law, and shall have exclusive jurisdiction in all school matters over the territory therein contained......Except

Board Authority is subservient to: United States Constitution Federal law (congressional and Federal DOE) State law (legislative and state DOE and administrative rules) Legal precedent (court rulings at supreme, federal, state and AG’s opinions) 37

Board Authority Constitution, Federal, State Laws and Justice Dillon “…municipal governments only have the powers that are expressly granted to them by the state legislature, those that are necessarily implied from that grant of power, and those that are essential and indispensable to the municipality's existence and functioning.” 38

Examples of State Law Chapter 279: Powers and Duties Chapter 280 Uniform School Requirements – See CSIP Committee Chapter 284 Teacher Performance, Compensation and Career Development (and TLS ed reform) – See 284.4(c) Create a Teacher Quality Committee – See (4) Shall appoint a site-based review council 39

Iowa Code online 40

Purpose of Policy “For many school districts, policymaking is a reactive process. Policies are developed in reaction to changes in state or federal laws or special interests raised by parents, teachers, students, or other district constituent groups. The end product is a complex set of policies that sometimes deal more with legal compliance and requirements rather than the local school board’s vision, direction, and goals for student learning.” 41

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Duties (Responsibilities of the Board of Directors – check out in Carroll CSD Policy Manual on line at carroll.isfis.net and look in your own policy manual:carroll.isfis.net – Legislative Duty: policy making with force and effect of law to manage and operate the district. – Executive Duty: hire superintendent to operate district on the board’s behalf. Delegate to the CEO authority to carry out board policy, to formulate and carry out rules and regulations, and handle administrative details in a manner which supports and is consistent with board policy. – Evaluative Duty: review/evaluate District’s educational program, study and examine facts, conditions and circumstances surrounding funds received/expended and educational program’s ability to achieve board’s educational philosophy for the school district.

Policy (Legislative) Boards speak through policy-making. This is similar to Congress speaking through legislation. Boards have power in legislating via policy. Policy exists before board members take office. Policy outlasts individual board members when they are gone. Policy evolves as directed by higher authorities, as considered through regular review cycles, as times, expectations and directions change. 44

Purpose of Policy: Exercise of the Board’s Legislative Authority Set the direction and goals of the district Provide for consistent treatment and experience Comply with state and federal law Guide for administrative action Protect the district against liability Protect staff and students from harm Outlive individual board members/staff Resolve conflict Advocate for a particular cause 45

Direct the Superintendent (Executive) Hire the Superintendent Review and Revise the Superintendent’s Job Description Set Expectations Negotiate what evidence will be accepted as proof of job performance Evaluate Based on agreed-to Expectations Support the Superintendent’s Learning 46

Ensure the District is Well Run (Evaluative) Mission: asks about outcomes related to mission Program: educational initiatives and regular program’s ability to meet educational goals Resources: send money where it supports the mission, study and examine funds received and expended, examines conditions and circumstances surrounding expenditures 20,000 foot view on employee negotiations, discipline, hearings, contracts: Keep distance necessary to preserve ability to be the impartial panel if necessary 47

Let’s look at some policy examples: 48 Series 209.1: Development of policy

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Other considerations: Iowa Code Chapter 279 and 280 Administrative Rules Chapter 281 Take a look at the DE’s Uniform Administrative Procedures Manual for detailed explanation of what districts must doUniform Administrative Procedures Manual 50

Adoption of Policy Board gives notice of proposed policy changes or a new policy by placing the item on the agenda of at least 1 regular board meeting. Proposed policy changes are distributed and public comment may be allowed at the meetings prior to final board action, unless there’s an emergency or controversial situation. If the board adopts a policy in an emergency or controversial situation, a statement regarding the emergency and the need for immediate adoption of the policy will be included in the minutes. Normal board policy approval will require one reading (Check your policy manual) There is no legal requirement for the number of readings a board policy needs prior to adoption. Standard of practice is two meetings. Policies required to be reviewed every 5 years (check your policy manual for your process – in Carroll, it’s and they set the cycle at 3 years) 51

Transparency Should board policies be secrets? How easy was it to find your district’s policy manual? Assume the role of a parent and look up your district’s policy for requesting a change to another building (either within district change of attendance center or open enrollment to a neighboring district). Can you find it? How easy is it to understand? What do you as a parent think about the policy? 52

Communication District policy – check for district spokesperson and responsibilities When speaking with constituents and staff, preserve the option to learn for board members to learn from each other at the board table. When in doubt, start with the role question to determine if you need a policy: 53

Memorize this question: Is this issue before us primarily: – Legislative (policy making) – Executive (part of direction to or evaluation of superintendent) or – Evaluative (ensure the district is well run and achieving our board goals) What does our policy already say about this issue? 54

Board Engagement in Advocacy Resolution Template on Equity 55

Boards are Advocacy Bodies Conversation about resolution provides education to board members, district staff, community and media Official Action makes a statement Passage of a resolution includes rationale (whereas statements) and statement of position (support, opposition, action request) Example: Davenport School Board Template on correcting inequities in school finance: 56

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Learn about the Inequity in the Formula 60 Part 1 of investigative reporter Mark Stevens’ KWQC story on the school funding formula funding-formula/ Part II formula

Mow Mow Mow LSA MOW on Teacher Salaries MOW/ pdf 61

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Calculating Your FY 2015 Unspent Budget Authority 64

Unspent Budget Authority You should now have all the information you need to calculate your Unspent Budget Authority for FY 2015: – General Fund expenditures (CAR) – Miscellaneous Income (CAR Report: Miscellaneous Income and GAAP Expenditures) – Special Ed Deficit or Surplus (SES) 65

66 Enter any Deficit or Surplus from the SES Enter Miscellaneous Income from Screen 10 of the CAR Enter General Fund Expenditures from the CAR

Unspent Budget Authority Districts must notify SBRC of anticipated negative Unspent Budget Authority by 10/15/2015 Expect to appear at the fall SBRC meeting Make sure to meet filing publication deadlines for corrective action plans and other required documents Corrective action plan (first year negative only.) If in second year, contact Su McCurdy at DE tools/2013/04/corrective-action-plan tools/2013/04/corrective-action-plan Possible corrective actions for Negative Unspent Authorized Budget (DE): ossible%20Corrective%20Action%20for%20NUB.pdf ossible%20Corrective%20Action%20for%20NUB.pdf 67

Unspent Budget Authority Why is this important? – The single most important measure to evaluate a school district’s financial health – The measure (metric) used by SBRC in deciding whether to pursue a Phase II Audit – So what’s the big deal with a Phase II? – Simple, it can get you closed (enough said?) – Know your trend! – Take action now and plan for FY 2017 budget – Generally, it’s about the staffing 68

Pending Dates and Deadlines Oct. 15Certified Enrollment due Oct. 15 Last Date to Notify SBRC if district incurred negative UAB Oct. 23Consolidated Plan (C-Plan) due (see David Tilly Oct. 2 ) Nov. 2School board officers report due Nov. 13SBRC exhibits and requests for Dec. 15 hearing due Nov. 16School Association Reporting due Dec. 1SBRC applications for MSA for increased enrollment, open enrolled not on prior year’s count, LEP beyond 5 years Dec. 15SBRC meeting Dec days notice to county auditor: Feb special election DE Deadlines Calendar (from Calendar tab on DE home page) and from the DE’s School Leader Update and School Business AlertSchool Leader UpdateSchool Business Alert 69

Larry’s Super Simple Chili Verde 70 Ingredients lb Pork Roast Juice from 4 limes 2 jars Salsa Verde 4 cloves fresh garlic - minced 1 onion sliced/chopped Salt and pepper (to taste) Directions: Place everything in a crock pot. Cook on low 6-7 hours. Shred with a fork. Serve either over rice or in tortillas. Or

Questions or Comments? Larry Sigel, ISFIS – Partner Cell: Iowa School Finance Information Services rd Street Des Moines, IA Office: Margaret Buckton, ISFIS – Partner Cell: