MISSOURI’S FOUNDATION FORMULA & JCPS PRELIMINARY BUDGET

1 st Step in School Budgeting Amend Current Year Budget – Most of the budget repeats 77% of Revenues from Property Taxes, Prop C, and Basic Formula 83% of Expenses in Salary and Benefits Then Determine What Will Be Different Next Year

Amended FY13 Budget Original Budget called for $1,232,000 deficit – 24.8% Fund Balance After 3 amendments, currently $870,000 deficit – 25.7% Fund Balance

Funding Formula-Current State Calculated State Adequacy Target – FY 12 - $6,131 – FY 13 - $6,423 – FY 14 - $6,716 No guidance in law on how to handle underfunding once the formula phase-in period ended. – Formula fully phased in after FY12 General Assembly did not address this last year which left the decision to DESE.

DESE Ruling on Distribution of Formula Keep SAT at $6,131 until Proration is 100% – Calculated SAT $6,423 in FY14 – All districts get equal percentage increases as proration rises After Proration is 100% then SAT can rise. FY12 Proration = 92.5% FY12-Formula is over $450 million underfunded

WADA Threshold Changes Difference Total ADA (Includes SS)8,1048, F&R Lunch Threshold %32.0%38.8% F&R Lunch Threshold #2,5933,227 F&RL Students4,300 0 F&RL WADA LEP Threshold %0.9%1.8% LEP Threshold #73150 LEP Students LEP WADA Total WADA8,6298, Even though we gained 213 students our WADA count goes down by 13. We will be paid on the prior year. JCPS misses out on over $1,200,000 in funding for those 213 students, if the thresholds did not change

BASIC FORMULA-FY 14 Calculated SAT increases over 4.5% – $6,716 Payment SAT remains at $6,131 Governor recommended $66 million increase Moves proration to 95% Because of higher SAT – $600 million underfunded

Description of Revenue Changes$ Amount LOCAL PROPERTY TAX-New Construction and Personal Property Increase$500,000 STATE AID-Based on Governor’s recommendation$500,000 PROP C – Increased State Collections and Increased Students$150,000 Interest Income (90 day T-Bill has to go higher than 0.1% Someday)$0 County Stock Insurance (FY13 was $750,000 lower than FY12)$0 IDEA & Title I-10% Sequestration-$336,000 TOTAL CHANGE IN REVENUE$814,000 FY14 PRELIM BUDGET-Revenue Changes

FY14 PRELIM BUDGET-Expense Changes Description of Expenditure Changes$ Amount Salary-Operate Teacher Schedule & 1.8% to All Other Classes$882,500 Benefits Associated with Raises (Retirement, Medicare, OASDI)$101,900 Health Insurance-5% Increase in Board Contribution$0 Staff Retirements-$250,000 PSRS/PEERS Rate Increases (Remain at 14.5% & 6.86%)$0 Property/Liability Insurance – 10% Increase$22,000 Transportation$50,000 Energy-Increase by 10% (Electricity, Natural Gas, Diesel Fuel)$194,300 TOTAL CHANGE IN EXPENDITURES$1,000,700

FY14 PRELIM BUDGET-Fund Balance Description of Fund Balance Change$ Amount FY2013 Change in Fund Balance-$872,000 + Change in Revenues FY14 vs. FY13$814,000 - Change in Expenditures FY14 vs. FY13$1,000,700 - Change In Transfers Out of Operating Fund FY14 vs. FY13$ 0 TOTAL CHANGE IN FUND BALANCE FY2014-$1,058,700

FEDERAL SEQUESTRATION IS MAJOR REVENUE QUESTIONMARK. CHANGES MADE IN HEALTH INSURANCE, RETIREMENT, & TRANSPORTATION HAVE BEEN HUGE IN ALLOWING US TO MAINTAIN OUR CURRENT LEVELS OF EDUCATION DISTRICT’S FISCAL POSITION REMAINS SOLID SUMMARY