October 2016 Five Year Forecast Submission Our Friend Capacity October 2016 Five Year Forecast Submission

SFPR Formula Funding FY 2017 – last year of the biennium budget The main components of the formula are: Core Opportunity Aid Targeted Assistance Aid K-3 Literacy Economic Disadvantaged Transportation Special Education Capacity Aid

Core Opportunity Aid $6,000 per pupil in FY 2017 Increased from $5,900 in FY 2016 The per pupil amount is multiplied by formula ADM (resident students) then multiplied by the State Share Index $6,000 X 806 X .6586

State Share Index Compares the districts 3 year average per pupil valuation to the statewide 3 year average per pupil valuation (TY 12,13,14) Compares the districts average Ohio Adjusted Gross Income to the State’s Median Income (TY 13) ($31,483/$32,873) Compares the districts 3 year average federal adjusted gross income per pupil to the statewide 3-year average (TY 12,13,14)($115,546/169,701) Determines a valuation index, median income index, income index and a wealth index. Wealth index is determined by a formula that compares the other three indexes. Will apply one of four formulas depending on where our wealth index falls to calculate the state share.

State Share Index Continued: What does State Share Index impact: Opportunity Grant K-3 Literacy LEP Special Education Bonus Funding (Graduation and Third Grade Reading) Targeted Assistance (indirectly) Future biennium budgets this number will need closely monitored: District Wealth State Wealth

Targeted Assistance These funds were designed to give districts with low valuations the equivalent of 6 mills worth of funding at the 490th wealth district valuation (80% of districts) Calculations are determined for the following: District Local Wealth Per Pupil Statewide Local Wealth Per Pupil 490th Lowest Wealth Per Pupil

Target Assistance (Continued) Local District Wealth Per Pupil is calculated as follows: .50 X districts 3 year avg per pupil valuation + .50 X districts 3 year avg fed adjusted gross income Our Local Wealth Per Pupil is $106,419.32 Statewide Local Wealth Per Pupil is $161,887.86 490th Lowest Wealth Per Pupil is $204,381.78

Targeted Assistance (Continued) The Statewide Wealth Index is divided by our Local District Wealth Index This becomes the Targeted Assistance Wealth Index $161,887.86/$106,419.32 = 1.5212 The difference between the 490th Wealth District Per Pupil and our District Local Wealth Per Pupil is calculated $204,381.78 – $106,419.32 = $97,962.46 This difference multiplied by 6 mills, multiplied by our Targeted Assistance Wealth Index, multiplied by our net formula ADM is our Targeted Assistance Aid $97,962.46(.006)(1.5212)(Net Formula ADM) Net Formula ADM is adjusted for any students in e-schools or in one of the four state funded scholarship programs Basic Targeted Assistance will decrease slightly in FY17, because our district wealth grew at a rate slightly higher than the state wealth.

Target Assistance (Continued) Targeted Assistance is then supplemented if your agricultural value is greater than 10%; ours is 36.3% Greater emphasis and additional funding was given to districts with high ag values by applying a % of the opportunity aide per student Eastern will receive approximately $491,000 from the CAUV supplement.

Capacity Aid FY17 is the second year for this new funding Provides supplemental funds to districts that raise less than the median amount of revenue from 1 mill of local property taxes Eastern Local 3 Year Avg - $79,145.65 State 3 year Avg Val. Median - $226,367.55 Applies a “capacity ratio” and a 3.5 multiplier in FY 17 to a formula and applies this amount to our ADM Eastern received $950,579.88 in FY16 and will receive a projected $1,100,000 in FY17

Transportation Aid Biennium budget made changes in the transportation formula: District square mileage (ELSD = 117) Low density factor Bus supplemental funding Districts will less than 50 students per square mile. We are currently approximately 4 students per square mile. Our transportation funding is estimated to increase by approximately $11,000 over FY 16.

What Does This Mean for Eastern Local??? Let’s review the last five years: FY 11 and FY 12 – the State used ARRA-Stimulus funding to keep our funding at the FY 10 level FY 13 we were flat funded FY 14 we were on the guarantee to received as much funding as we did in FY13. The new SFPR calculated us to receive $355,000 less. FY 15 we were on the guarantee again to receive as much funding as we did in FY13. The SFPR calculated us to receive $252,000 less.

What does this mean (Continued)

What does this mean (Continued) Past historical school funding formulas: Equity Aid from FY92 to FY03 Parity Aid from FY04 to FY09 Each was phased down throughout the years Forecasted years Capacity Aid is phased down.

Coming Soon……

New Biennium Budget How will Capacity Aid be funded? Will be grow wealthier at a higher rate than the state average and federal average? Future enrollment

Submitted to ODE by October 31 and May 31 each year What is a Forecast? ORC 5705.391 and OAC 3301-92-04 Submitted to ODE by October 31 and May 31 each year http://fyf.oecn.k12.oh.us/ Contains three years of historical information and five years of projections Projected years are only estimates and will change depending on state and local economics, political environment, and the needs of the district. Accompanied by notes to explain the rationale behind the numbers.

All Other Operating Revenue changes as a result of Open Enrollment In. Most sources remain constant with the exception of Restricted Grants In Aid. Capacity Aid has the most significant effect. All Other Operating Revenue changes as a result of Open Enrollment In. ACTUAL FORECASTED Fiscal Year 2014 2015 2016 2017 2018 2019 Revenue:   1.010 - General Property Tax (Real Estate) 1,121,336 1,191,277 1,198,617 1,202,218 1,211,018 1,244,441 1.020 - Public Utility Personal Property 146,336 150,039 239,304 245,559 248,015 250,495 1.030 - Income Tax - 1.035 - Unrestricted Grants-in-Aid 5,240,067 5,181,880 6,144,324 6,386,846 6,274,452 6,295,316 1.040 - Restricted Grants-in-Aid 86,718 153,349 159,951 158,600 160,879 161,435 1.045 - Restricted Federal Grants-in-Aid - SFSF 1.050 - Property Tax Allocation 237,016 243,246 242,285 248,879 249,460 251,065 1.060 - All Other Operating Revenues 788,968 808,820 894,320 894,466 901,166 882,366 1.070 - Total Revenue $ 7,620,441 $ 7,728,611 $ 8,878,801 $ 9,136,570 $ 9,044,991 $ 9,085,119

FY17 and FY18 health insurance premiums were projected to increase 10% Disbursements: FY17 Salaries and Benefits are based on current negotiated agreements, estimates, and known insurance costs FY18 and FY19 Salaries include a negotiated raises and estimates for OAPSE FY17 and FY18 health insurance premiums were projected to increase 10% We will hit the ACA Cadillac Tax in FY21(not in projected numbers) Purchased Services increases for inflationary increases and OE Out Costs Supplies and Material include upgrades to texts and instructional supplies Capital Outlay – fleet improvements, tech equip, classroom furniture, and modest building and ground improvements ACTUAL FORECASTED Fiscal Year 2014 2015 2016 2017 2018 2019 Expenditures:   3.010 - Personnel Services 3,882,559 3,938,849 4,041,858 4,477,447 4,416,596 4,745,200 3.020 - Employees' Retirement/Insurance Benefits 1,920,630 1,956,770 1,968,744 2,021,672 2,142,310 2,344,626 3.030 - Purchased Services 1,213,253 1,303,374 1,543,210 1,589,242 1,583,692 1,638,024 3.040 - Supplies and Materials 271,690 267,850 238,949 337,533 267,485 281,330 3.050 - Capital Outlay 90,807 193,844 434,135 396,000 270,700 188,481 4.300 - Other Objects 117,740 117,441 131,638 132,349 133,809 135,797 4.500 - Total Expenditures $ 7,496,679 $ 7,778,128 $ 8,358,534 $ 8,954,245 $ 8,814,594 $ 9,333,463

Total Other Financing Uses Includes a Transfer Out to the 034 – Capital Improvements and Maintenance Fund for roof replacement in the amount of $200,000 in FY16 and FY17 This will place approximately $650,000 in this fund for roof replacements, pending no major equipment or facility malfunctions. ACTUAL FORECASTED Fiscal Year 2014 2015 2016 2017 2018 2019 Other Financing Uses   5.010 - Operating Transfers-Out 590 316 200,549 200,000 - 5.020 - Advances-Out 7,907 6,109 1,885 5,000 5.030 - All Other Financing Uses 350 2,350 5.040 - Total Other Financing Uses 8,847 8,775 202,784 205,000

ACA, Cadillac Tax, and other penalties and reporting The Future ACA, Cadillac Tax, and other penalties and reporting Facility Maintenance and Capital Equipment– now is the time to take care of items that we couldn’t afford to address FY 18 and beyond: Political Leadership and Environment Economy Capacity Aid???