Proposed Budget for Adoption 2017-2018 July 11, 2017

Tax Rates FY 2017 Primary 4.8445 Secondary 3.0953 – M&O override 1.6251(First Year) Bonds 1.4702 (Debt Service Repayment Schedule) Total 7.9398 FY 2018 (estimated) - tax rates come out in August Primary 4.0641 Secondary 3.1600 M&O 1.5479 (second year) Bonds 1.6121 (Debt Service Repayment Schedule Total 7.2241 Decreased by 0.7157 Attributed to new tax rate formula, Qualifying Tax Rate (QTR) decrease and assessed valuation increase.

Calculation of M&O Budget Revenue Control Limit $58,295,717 M&O Override $ 9,432,157 Budget Balance Carryforward (estimated) $ 2,500,000 State Land Trust Sale Allocation (estimated) $ 514,550 HUSD portion of $50M FY18 $70,742,424 FY17 $68,283,287

1.06% Teacher Pay Increase Only certified teachers who taught in an Arizona public school in 2017 and continue to teach in 2018 Increase is based on all compensation earned in the 1000 function in FY17 x 1.06% District must collect salary information from other districts if teachers worked at a district other than HUSD in 2017 Actual amount of budget will be revised in October budget revision. Current estimate budget increase = $366,553 The State will finalize the 1.06% budget increase in early December HUSD will pay a onetime stipend and intends to issue this pay prior to Winter Break

Unrestricted Capital Budget FY2017 Budget minus actual expenditures $14,131,552 – $6,461,552= $7,670,000 Portion of Revenue control limit $6,000,000 District Additional Assistance (DAA) $822,952 Total Unrestricted Capital $14,492,952

Special Education No longer classified in separate categories, now all combined into the category of “All Disability Classifications” FY2017 Expenditures: $8,845,895 FY2018 Estimated Expenditures: $10,108,463

Calculation of CSF Budget Prop 301 FY2017 Budget minus Actual Expenses = Unexpended Balance Total Unexpended = $2,790,414 Add Allocation = $5,501,598 Add Interest Earned = $8,023 FY2018 Budget Limit= $8,300,036

Classroom Site Fund (CSF) Prop 301 Revenue is broken down 20%, 40%, 40% from allocation (FY15-16 $5,000), (FY16-17 $5,200) and (FY17-18 $5,893) FY17 Group A Weighted student count * $386 = allocation $54 per pupil increase – $19 is one time only funding 011 - Base Salary (20%) $540 bi-annual payments increased to $560 = $1,120 Additional one-time only funding = $85 per teacher = $85 012 - Performance Pay (40%) $2,700 incentive increased to $2,750 = $2,750 Additional one-time only funding = $144 per teacher = $144 013 - Other (40%) $675 bi-annual payments increased to $840 = $1,680 Additional one-time only funding = $114 per teacher = $114 Funding additional teachers in FY18 = $5,893

Additional funds… Federal Projects Allocation determined by federal program The allocation is determined by a pass through entity; typically, from the Arizona Department of Education Instructional Improvement Programs (also known as Indian Gaming) FY2018 - $480,000 Budgeted $300,000 for classroom size reduction Cash controlled fund. 2nd 2017 payment not yet received. Budget will increase through a budget revision by approximately $300,000

What happens now? We asked the Governing Board to accept the budget on June 21, 2017 as presented Now we bring the proposed budget to the Governing Board for adoption today July 11, 2017 By July 14, Finance department will upload 2018 Expenditure Worksheets and Adopted Budget to ADE and to the County. The adopted budget will be posted on the ADE website and District website The next budget revision will be in October 2017

THANK YOU.