Budget Basics 2019 March 14 – Great Falls March 22 – Missoula March 27 – Miles City Denise Williams, Executive Director MT Association of School Business Officials (MASBO) 406-461-3659 or dwilliams@masbo.com

What we want forming an essential foundation or starting point; fundamental the essential facts or principles of a subject or skill

What we don’t want

Budget Basics 2019 Terminology and Key Concepts General Fund Overview Transporation Fund Other Budgeted Funds (chart) Budget Timeline and Q&A

Terminology and Concepts Why do we use separate funds? to account separately for resources affected by different types of spending restrictions because financial reporting standards require it Fund accounting Each fund has a self-balancing set of accounts (debits = credits) to keep the cash flow, revenues, expenditures and equity segregated from the other funds. It is desirable to have as few funds as legal and sound administrative requirements make possible.

Terminology and Concepts 20-9-201, MCA Fund Definitions BUDGETED FUNDS NON-BUDGETED FUNDS Trustees must adopt a budget to spend money Local property tax levies are a common revenue source No budget is needed to spend money Expenditures are limited to cash available in the fund (20-9-210, MCA) No tax revenues Voted Levy – hold an election to obtain voter approval “Permissive” (non-voted) Levy - voter approval not required

BUDDGETED FUNDS FUND # FUND NAME Permissive or Voted Levy? 01 General Permissive and voted 02 Transportation Permissive 11 Bus Depreciation 13 Tuition 14 Retirement Permissive (countywide levy) 17 Adult Education 19 Non-Operating 28 Technology Voted 29 Flexibility Voted, but tied to state funding 50 Debt Service Voted and permissive (SIDs) 61 Building Reserve Voted and permissive

NON-BUDDGETED FUNDS FUND # FUND NAME 12 Food Service 15 Miscellaneous Programs 18 Traffic Education 20 Lease Rental Agreement 21 Compensated Absences 24 Metal Mines Tax Reserve 25 State Mining Impact 26 Impact Aid 27 Litigation Reserve 45 Permanent Endowment 60 Building 70-72 Enterprise 73-79 Internal Service 82 Interlocal Cooperative (multi-district agreements) 81-85 Other Trust Funds

Terminology and Concepts “Budget Authority” vs. “Cash” Budget amounts are estimates of what you intend to receive in revenue and what you intend to spend to operate the school for the year. 20-9-133, MCA: Trustees must formally approve (adopt) an expenditure budget in order to spend money during the fiscal year (July 1 – June 30). Total expenditures made (or liabilities incurred) during the year must be within the approved budget. The actual amount of money you have on hand to spend! Consider this: “Not everyone pays their tax bill on time.” (revenue doesn’t come in when you expect it to) “Stuff happens!” (unanticipated events = unanticipated expenditures

Terminology and Concepts “Budget Authority” vs. “Cash” “Budget” means spending authority— NOT “cash”!

Terminology and Concepts “Budget Authority” vs. “Cash” Budgeted Revenues State payments $750,000 Facilities use 15,000 Property Taxes 185,000 Total $950,000 Budgeted Expenditures Salaries/Benefits $800,000 Textbooks/supplies 40,000 Facilities maintenance 70,000 Insurance 20,000 Field trips/athletics 20,000 Actual Revenues Received State payments $750,000 Facilities use 17,000 Property Taxes 173,000 Total $940,000 Actual Expenditures Salaries/Benefits $755,000 Textbooks/supplies 55,000 Facilities maintenance 80,000 Insurance 20,000 Field trips/athletics 15,000 Total $925,000 Change in cash balance $ 15,000

Terminology and Concepts Fund Balance Fund Balance (cash + receivables – payables) Beginning Fund Balance (July 1) + Current Year Receipts - Current Year Expenditures Ending Fund Balance (June 30)

Terminology and Concepts Fund Balance – Budget vs. Actual BUDGETED ACTUAL Beginning Fund Balance $ 95,000 + Revenues 950,000 - Expenditures Ending Fund Balance

Terminology and Concepts Fund Balance – Budget vs. Actual BUDGETED ACTUAL Beginning Fund Balance $ 95,000 $ 95,000 + Revenues 950,000 - Expenditures Ending Fund Balance

Terminology and Concepts Fund Balance – Budget vs. Actual BUDGETED ACTUAL Beginning Fund Balance $ 95,000 $ 95,000 + Revenues 950,000 940,000 - Expenditures 925,000 Ending Fund Balance

Terminology and Concepts Fund Balance – Budget vs. Actual BUDGETED ACTUAL Beginning Fund Balance $ 95,000 $ 95,000 + Revenues 950,000 940,000 - Expenditures 925,000 Ending Fund Balance $ 110,000

Terminology and Concepts Fund Balance - Example Fund Balance (cash + receivables – payables) Beginning Fund Balance (July 1) $ 95,000 + Current Year Receipts $940,000 - Current Year Expenditures $925,000 Ending Fund Balance (June 30) $110,000

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” Fund Balance (cash + receivables – payables) Beginning Fund Balance + Current Year Receipts - Current Year Expenditures Ending Fund Balance Reserves (keep for cash flow purposes) Reappropriate (reduces revenue requirement in next year’s budget) Return to state (General Fund only)

Terminology and Concepts Operating Reserves

Terminology and Concepts Operating Reserves Adequate reserves prevent cash overdrafts

Operating Reserve Limit Terminology and Concepts Operating Reserves Reserves - year-end cash balances kept for cash flow Fund Operating Reserve Limit General (01) Greater of $10,000 or 10% of ensuing year budget (20-9-104, MCA) Transportation (10) 20% of ensuing year budget (20-10-144, MCA) Retirement (14) 20% of ensuing year budget (20-9-501, MCA) Adult Ed (17) 35% of ensuing year budget (20-7-713, MCA) Debt Service (50) Approximate amount of payments due between July 1 and November 30 of second ensuing year (20-9-438, MCA)

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” - Example Fund Balance (cash + receivables – payables) Beginning Fund Balance $ 95,000 + Current Year Receipts 940,000 - Current Year Expenditures 925,000 Ending Fund Balance $ 110,000 Assume next year’s adopted budget is $ 975,000 Operating reserves @ 10% = _________

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” - Example Fund Balance (cash + receivables – payables) Beginning Fund Balance $ 95,000 + Current Year Receipts 940,000 - Current Year Expenditures 925,000 Ending Fund Balance $ 110,000 Assume next year’s adopted budget is $ 975,000 Operating reserves @ 10% = $97,500

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” - Example Fund Balance (cash + receivables – payables) Beginning Fund Balance $ 95,000 + Current Year Receipts 940,000 - Current Year Expenditures 925,000 Ending Fund Balance $ 110,000 $97,500 Reserves (keep for cash flow purposes) Reappropriate (reduces revenue requirement in next year’s budget) Return to state (General Fund only)

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” Fund Balance Reappropriated Ending Fund Balance - Reserves = Fund Balance Reappropriated Used in place of new revenue to fund the ensuing year’s expenditure budget Reappropriation is mandatory after reserves are maximized General Fund reappropriation is limited to 15% of the maximum budget (excess is remitted to the state)

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” - Example Fund Balance Reappropriated Ending Fund Balance $ 110,000 - Reserves 97,500 = Fund Balance Reappropriated ?

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” - Example Fund Balance Reappropriated Ending Fund Balance $ 110,000 - Reserves 97,500 = Fund Balance Reappropriated $ 12,500

Terminology and Concepts “Fund Balance”, “Reserves” and “Reappropriation” - Example Fund Balance (cash + receivables – payables) Beginning Fund Balance $ 95,000 + Current Year Receipts 940,000 - Current Year Expenditures 925,000 Ending Fund Balance $ 110,000 $97,500 Reserves (keep for cash flow purposes) $12,500 Reappropriate (reduces revenue requirement in next year’s budget) Return to state (General Fund only)

Understanding Fund Balance Reappropriated $975,000 Expenditure Budget = Funding Needs

Understanding Fund Balance Reappropriated $975,000 Fund balance reappropriated = $ district already has

Understanding Fund Balance Reappropriated $975,000 $12,500 Fund balance reappropriated = $ district already has

Understanding Fund Balance Reappropriated $975,000 $975,000 How much new revenue is needed? New revenue needed $12,500 $12,500

Understanding Fund Balance Reappropriated $975,000 $962,500 new revenue $12,500

QUESTIONS?

GENERAL FUND OVERVIEW General Fund OPI resources to have handy: Expenditure Budget Limits Funding Sources OPI resources to have handy: FY2020 Preliminary Budget Data Sheet OPI FY20 General Fund Budget Spreadsheet

General Fund - Budget Elements Basic Entitlement Per-ANB Entitlement Special Education Allowable Cost Payment Quality Educator Payment At-Risk Student Payment Indian Education for All Payment American Indian Achievement Gap Pmt Data for Achievement Payment

Basic Entitlement Rates Entitlements FY2019 FY2020 * (HB159) FY2021 * (HB159) Elementary Basic $ 52,105 $ 52,579 $ 53,541 For every 25 Elem ANB over 250 $ 2,606 $ 2,630 $ 2,678 Middle School Basic $ 104,212 $ 105,160 $ 107,084 For every 45 MS ANB over 450 $ 5,211 $ 5,258 $ 5,354 High School Basic $ 312,636 $ 315,481 $ 321,254 For every 80 HS ANB over 800 $ 15,632 $ 15,774 $ 16,063 *HB159 increased FY2019 by inflation of .91% for FY2020 and 1.83% in FY2021.

AVERAGE NUMBER BELONGING (ANB) General Fund - ANB AVERAGE NUMBER BELONGING (ANB) FALL ENROLLMENT (1ST Monday in October) Part-time Students = ¼, ½, or ¾ Example: Oct count = 150 Feb count = 166 (150 + 166) 2 = 158 187 180 = 165 ANB Total of 2 counts divided by 2 180 + PIR Days* 180 = ANB X SPRING ENROLLMENT (1st Monday in February) Part-time Students = ¼, ½, or ¾ X *PIR Days are “pupil instruction related” days for teacher in-service training and recordkeeping

(see section 1. Certified ANB on budget data sheet) General Fund - ANB Use the ANB that generates the greatest maximum general fund budget: Current Year ANB (CY ANB) ANB for the budget unit for the ensuing school year (FY2020 ANB is based on FY2019 enrollment counts) 3-Year Average ANB Add current year ANB to the current ANB for the previous two school fiscal years and divide by 3 (FY2020 ANB is the average of FY2019, FY2018 and FY2017) (see section 1. Certified ANB on budget data sheet)

Per-ANB Entitlement Rates Entitlements FY2019 FY2020 * (HB159) FY2021* (HB159) Elementary per-ANB $ 5,573 $5,624 $ 5,727 High School per-ANB $ 7,136 $ 7,201 $ 7,333 *HB159 increased per-ANB entitlements by .91% in FY2020 and 1.83% in FY2021. Each student after the first ANB is decreased by a reduction factor (decrement) per ANB: Elementary ANB decrement is $.20 per ANB High school & 7th - 8th accred ANB decrement is $.50 per ANB

Per-ANB Entitlement Calculations Elementary: $.20 decrement for first 1,000 ANB [$5,624 X Elem ANB] - [.20 X (Elem ANB/2) X (Elem ANB –1)] For each ANB over 1000: ($5,424.20 X ANB) + $5,524,100 7th & 8th accredited: $.50 decrement for first 800 ANB [$7,201 X 7th & 8th ANB] - [.50 X (7&8 ANB/2) X (7&8 ANB –1)] For each ANB over 800: ($7,801.50 X 7&8 ANB) + $5,601,000 High School: $.50 decrement for first 800 ANB [$7,201 HS ANB] - [.50 X (HS ANB/2) X (HS ANB –1)] For each ANB over 800: ($7,801.50 X ANB) + $5,601,000

Special Education Allowable Costs FY2019 FY2020* FY2021* HB 2 Appropriation $ 43.292 million $ 43.292 million *Watch HB638 – inflationary increases (.91% and 1.83%) Special Education Allocation 20-9-321(4)(a), MCA: 52.5% through instructional block grants (ISB) 17.5% through related services block grants (RSBG) 25% to reimbursement of local districts (disproportionate costs) 5% to special education cooperatives and joint boards for admin and travel

Special Education Allowable Costs Section 8 Preliminary Budget Data Sheet Must be “eligible” (meet one of the following): operate a special education program; or belong to a special education cooperative; or has a signed written agreement with another public entity to provide instructional services to children with disabilities

See PDBS pg 2 for calculation Special Education Allowable Costs Rate Who receives payment? Local Match required 8a. Instructional Block Grant (ISB) $149.54 per current year ANB District $1 of local match for every $3 (ISB X .33) 8b. Related Services Block Grant (RSBG) If district is in a co-op, see 8e. $ 49.84 - To district, if district operates its own program - To special education cooperative if district is a member of the co-op $1 of local match for every $3 (RSBG X .33) Districts in a co-op send their local match to the co-op 8c. Reimbursement for Disproportionate Costs See PDBS pg 2 for calculation no

Special Education Allowable Costs How to “Avoid Reversion” Minimum amount required to spend is shown in 8g of the data sheet Code expenditures for special education to program 280 See TFS report “Special Education Reversion” for expenditure codes that count Monitor the level of expenditures to ensure you are spending the minimum amount Amount spent below the minimum are “reverted” back to the state

Funding Components Quality Educator (QEC) At-Risk Student (ARC) OPI pays to school districts and special education cooperatives Paid for each full-time equivalent (FTE) licensed educator and for other licensed professionals employed by the district or cooperative At-Risk Student (ARC) Annual appropriation is distributed school districts based on Title I allocations

Funding Components (continued) Indian Education for All (IEA) Paid per ANB ($100 minimum) For providing curriculum for the recognition of American Indian cultural heritage American Indian Student Achievement Gap (SAG) Paid per each American Indian student enrolled as reported on the October enrollment count For closing the educational achievement gap that exists between American Indian students and non-Indian students Data for Achievement (D4A) Paid per ANB For access fees or other costs for statewide data system, including data entry and staff training

Funding Components FY2019 FY2020* (HB159) FY2021* (HB159) Quality Educator $3,245 $3,275 $3,335 At-Risk Student (HB2) $5,463,895 (1) $5,513,616 $5,614,515 Indian Education for All (per ANB) $21.76 ($100 min.) $21.96 ($100 min.) $22.36 ($100 min.) Am Indian Student Achievement Gap $214 $216 $220 Data for Achievement (per ANB) $20.84 (2) $21.03 $21.41 *HB159 increased these payments .91% in FY2020 and 1.83% in FY2021. (1) payment reduced by SB261 level 2 trigger; (2) payment suspended by SB261 level 4 trigger

General Fund Budget Limits BASE Budget ‘Maximum’ Budget* Basic Entitlement 80% 100% Per-ANB Entitlement Special Ed Allowable Cost Payment 140% 175 – 200% Quality Educator Payment At-Risk Student Payment Indian Education for All Payment Amer. Indian Achievement Gap Pymnt Data For Achievement Payment

General Fund Budget Limits ~80% Minimum Budget Requirement BASE Budget Trustees must adopt a budget that is at least equal to the BASE Budget. Item 9b on your budget data sheet from OPI

General Fund Budget Limits Maximum Budget 100% Over-BASE Budget Item 9c on budget data sheet from OPI BASE Budget

General Fund Budget Limits Over-BASE Budget (funded w/ local property taxes) A district may adopt an expenditure budget that exceeds the BASE budget. The Over-BASE budget is funded primarily through local property taxes at a level approved (authorized) by the voters through a levy election. BASE Budget

General Fund Budget Limits Highest Budget Allowed Over-BASE Budget (funded w/ local property taxes) Highest Budget Allowed Districts may adopt a budget that is the higher of: Current Year Maximum (9c), -OR- Prior Year adopted budget (10d) plus any increases in the Basic and per-ANB entitlements and any increases in the Quality Educator, At-Risk, Indian Education for All, Student Achievement Gap and Data for Achievement payments Item 9e on budget data sheet from OPI “Highest Budget with a Vote” BASE Budget

General Fund Budget Limits Voted levy (9f) Highest Budget Allowed (9e) Highest Budget allowed without having to ask voters to approve an additional local levy (9d) Permissive Over-BASE Budget (10e) BASE Budget (9b on data sheet) Without seeking additional voter approval, trustees may adopt a General Fund budget that equals their current year BASE budget (9b) plus highest over-BASE levy approved by voters or levied in past five years (10e). Item 9d on budget data sheet from OPI “Highest Budget without a Vote”

SAVE THIS FILE TO YOUR DESKTOP! Try the Spreadsheet! FY2020 General Fund Budget Spreadsheet or from the OPI Home Page (www.opi.mt.gov) Leadership – Finance & Grants - School Finance Budgets Budget Spreadsheets and Guidance SAVE THIS FILE TO YOUR DESKTOP!

FY2020 General Fund Budget Spreadsheet Expenditure Budget Limits 1. Enable Editing 2. Enable Content On the Inputs tab: Elem High School K-12 3. Enter LE C3 C4 C5 4. Enter 2019 Taxable value Q16 S16 U16 5. Compare to Item 9d on data sheet Highest Budget Without a Vote Q31 S31 U31 6. Compare to Item 9e on data sheet Highest Budget With a Vote Q32 S32 U32 7. Enter Proposed Adopted Budget Q33 S33 U33

GENERAL FUND REVENUES Funding the BASE budget Funding the over-BASE budget

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget BASE Levy DSA/SPED/ 5 Funding Components Local Revenues Revenues from State

Funding the BASE Budget State funding Direct State Aid 44.7% of the Basic Entitlement 44.7% of the per-ANB Entitlement Special Education Allowable Costs (140%) Funding Components (100%) Quality Educator At-Risk Student Indian Education for All American Indian Achievement Gap Data for Achievement NEW in FY2020 Payment schedule: 10% in Aug–Nov and Jan –Apr; 20% in June

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget BASE Levy Guaranteed Tax Base Aid (GTB) DSA/SPED/ 5 Funding Components Direct State Aid (DSA) (44.7% Basic & per-ANB) 100% QEC 100% ARC 100% IEA 100% SAG 100% D4A 140% SPED

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget 35.3% Basic Entitlement + 35.3% Per-ANB Entitlement + 40% SPED Payment Funded with local permissive (non-voted) levy, other non-levy revenue and state GTB aid, if a district is eligible BASE Levy DSA/SPED/ 5 Funding Components

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget BASE Levy FB Reappropriated Oil and gas revenue Local revenue required to be anticipated Other non-levy revenue Revenue that reduces BASE levy requirement DSA/SPED/ 5 Funding Components

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget BASE Levy Guaranteed Tax Base Aid (GTB) If a district is eligible, GTB subsidizes the BASE levy requirement DSA/SPED/ 5 Funding Components

Funding the BASE Budget State Guaranteed Tax Base Aid (GTB) State subsidy for BASE mills Eligibility is based on the ratio between the district’s taxable value and the district’s GTB Budget Area as compared to the statewide taxable value X 224% and the GTB Budget Areas of all districts statewide. Districts with a ratio lower than the statewide ratio qualify for GTB aid. NEW in FY2020 OPI pays General Fund GTB to districts in December and May

GTB Example FY2020 Statewide GTB Ratio (Elementary) Statewide taxable value (tax year 2018) FY2018-19 Statewide GTB Budget Area $2,849,863,5547.00 $250,446,582.96 Manhattan School: Taxable value (tax year 2018) $7,870,687.00 FY2018-19 GTB Budget Area $1,097,027.73 X 224% X 224% = 25.49 = 7.17

GTB Example FY2020 Statewide GTB Ratio (Elementary) Statewide taxable value (tax year 2018) FY2018-19 Statewide GTB Budget Area $2,849,863,5547.00 $250,446,582.96 Manhattan School: Guaranteed Tax Base = FY2019 GTB Budget Area X GTB ratio $1,097,027.73 X 25.49 = $27,963,236.84 $27,963.24/mill District taxable value = $ 7,870,687.00 $ 7,870.69/mill State GTB subsidy = $20,092,549.80 $20,092.55/mill X 224% X 224% = 25.49

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget BASE Levy GTB FB Reappropriated Oil and gas revenue School Block Grant Local revenue required to be anticipated Other non-levy revenue K-12 Funding Payment Revenue that reduces BASE levy requirement DSA/SPED/ 5 Funding Components *Eliminated in HB647 (2017 session)

Funding the over-BASE Budget Adopted Budget Over-BASE Levy Funded with voter approved levies and non-levy revenue BASE Budget BASE Levy Guaranteed Tax Base Aid (GTB) DSA/SPED/ 5 Funding Components Local Revenues Revenues from State

Back to the OPI Spreadsheet

FY2019 General Fund Budget Worksheet Funding Sources On the Inputs tab: Elem High School K-12 1. Enter Fund Balance Reappropriated Q17 S17 U17 On the Non-Levy Revenue tab: Elem High School K-12 2. Enter non-levy revenues col. E col. G Col. I On the Gen Fund Budget tab find the following amounts: Elem High School K-12 3. Guaranteed Tax Base Aid (GTB) E219 G219 I219 4. BASE levy E220 G220 I220 5. Over-BASE levy E241 G241 I241

Putting it all together

General Fund EXPENDITURE BUDGET $ 3,359,424.28 Fund Balance Reappropriated $ 1,000.00 Direct State Aid $ 1,434,016.81 Quality Educator $ 130,263.13 At-Risk Student $ 6,129.31 Indian Education for All $ 11,155.68 American Indian Achievement Gap $ 1,512.00 Data for Achievement $ 10,683.24 Special Education Allowable Costs $ 101,421.97 Guaranteed Tax Base Aid $ 841,494.84 Interest Earning $ 980.00 Local Tax Levy: BASE $ 329,550.18 Local Tax Levy: over-BASE $ 491,217.12 REVENUE BUDGET

2017 Legislative Changes Key legislation passed in the 2017 regular session - HB647 & HB2 General Fund tax shifts

HB2/HB647 General Fund “tax shifts” House Bill 2 is the General Appropriations Bill House Bill 647 implements Section E of HB2 HB 647 Provision Funding from State Local Taxpayer Eliminate NRD payment Decrease Increase Eliminate GF Block Grant *Guaranteed Tax Base Aid (GTB) increased over 4 year period *GTB statewide guarantee ratio FY2018 193% (no change) FY2019 216% FY2020 224% FY2021 232% Districts that already qualify for GTB will receive more More districts will qualify

Funding the BASE Budget Adopted Budget Over-BASE Levy BASE Budget BASE Levy (permissive) Guaran -teed Tax Base Aid (GTB) GTB Budget Area DSA/SPED/ 5 Funding Components Local Revenues Revenues from State

Funding the BASE Budget Adopted Budget Over-BASE Levy PRIOR TO FY2017 BASE Budget BASE Levy (permissive) GTB FB Reappropriated Oil and gas revenue School Block Grant Local revenue required to be anticipated Other non-levy revenue K-12 Funding Payment Revenue that reduces BASE levy requirement DSA/SPED/ 5 Funding Components

Funding the BASE Budget FY2018 Adopted Budget Over-BASE Levy BASE Budget BASE Levy (permissive) GTB FB Reappropriated Oil and gas revenue School Block Grant Local revenue required to be anticipated Other non-levy revenue K-12 Funding Payment Increases GTB budget area DSA/SPED/ 5 Funding Components *Eliminated in HB647 (2017 session)

State Guaranteed Tax Base Aid (GTB) Increases in GTB to offset the loss of block grant and NRD payments (HB647) State Guaranteed Tax Base Aid (GTB) State subsidy for BASE mills Eligibility is based on the ratio between the district’s taxable value and the district’s GTB Budget Area as compared to the statewide taxable value X 193%* and the GTB Budget Areas of all districts statewide. Districts with a ratio lower than the statewide ratio qualify for GTB aid *GTB statewide guarantee ratio FY2018 193% (no change) FY2019 216% FY2020 224% FY2021 232% Districts that already qualify for GTB will receive more More districts will qualify

Funding the BASE Budget FY2019/FY2020/FY2021 Adopted Budget Over-BASE Levy BASE Budget BASE Levy (permissive) GTB (FY2018) Increases GTB budget area FB Reappropriated Oil and gas revenue School Block Grant Local revenue required to be anticipated Other non-levy revenue K-12 Funding Payment DSA/SPED/ 5 Funding Components

GTB Example FY2020 Statewide GTB Ratio (Elementary) Statewide taxable value (tax year 2018) FY2018-19 Statewide GTB Budget Area $2,849,863,5547.00 $250,446,582.96 Manhattan School: Guaranteed Tax Base = FY2019 GTB Budget Area X GTB ratio $1,097,027.73 X 25.49 = $27,963,236.84 $27,963.24/mill District taxable value = $ 7,870,687.00 $ 7,870.69/mill State GTB subsidy = $20,092,549.80 $20,092.55/mill X 224% X 224% = 25.49

Transportation Fund Building the Expenditure Budget Funding Sources

Transportation Fund 20-10-101 and 20-10-143, MCA To finance the operation of a program to transport students to and from home and school Two methods of transport: Bus Routes Parents drive them

Transportation Fund Expenditures Run Your Own Program Buy and maintain buses Bus barns Fuel Bus driver salaries, benefits, training Insurance Contract Out Bus service contract - Salaries/benefits for aides - % of clerk and administrative salaries/benefits - Reimburse parents (individual contracts) - Crossing guards

Transportation Fund Revenue Fund Balance Reappropriated State Transportation Reimbursement County Transportation Reimbursement Non-Levy Revenue (interest, oil & gas $$) Local Property Taxes

Transportation Fund Revenue State and County Transportation Reimbursement Bus Routes Individual Contracts USE THE OPI TRANSPORTATION SPREADSHEET

Transportation Fund Budget Expenditure Budget - State and county reimbursement - Non-levy revenue - Fund balance reappropriated = Local tax levy

Transportation Fund Budget Expenditure Budget $ 350,000 - On-Schedule Revenue* $ 62,754 = Over-Schedule Costs $ 287,246 - Non Levy Revenue $ 250 - Fund Balance Reappropriated $ 11,000 $ 11,250 = Local Tax Levy $ 275,996 Total Revenue *On-Schedule Revenue (includes contingency): State reimbursement $ 31,377 County reimbursement $ 31,377

Transportation Fund Budget Expenditure Budget $ 350,000 - State and county reimbursement 62,754 - Non-levy revenue 250 - Fund balance reappropriated 11,000 = Local tax levy $ 275,996

Transportation Fund - reappropriation Fund Balance (cash + receivables – payables) Beginning Fund Balance + Current Year Receipts - Current Year Expenditures Ending Fund Balance Reduces revenue in this order: 1. Local tax levy 2. County reimbursement 3. State reimbursement Reserves (keep for cash flow purposes) 20% Reappropriate (reduces revenue requirement in next year’s budget)

QUESTIONS? Contact information: Denise Williams Montana Association of School Business Officials (MASBO) 900 North Montana Avenue, Suite A5 Helena, MT 59601 (406) 461-3659 dwilliams@masbo.com