Community Meeting May 31, 2012

Agenda: 7:00 – 8:00 Topics to include: An overview of the “foundation funding” system of the past several years. (Mr. Samples) Local Funding – determining the market and assessed values (Mr. Ewers) Understanding Inside/Outside millage and the impact of CAUV (Mr. Samples) The approximate cost of the district’s proposed combination levy (Mr. Ewers) A review of the 5 year forecast requirement (Mr. Samples) Questions related to previous meeting (Mr. Ewers and Mr. Samples) Enrollment numbers Spending for Gifted Education Special Education funding A county wide comparison 8:00 – 8:30 Questions from the presentation

Foundation Funding Foundation Level State Aid $ Local tax Charge-Off at 22 mills Wealth Property Value per Student The basis of the foundation formula, the Evidence based model AND the BRIDGE formula

BRIDGE Formula What is it? “A distribution methodology” – Asst. Policy Director for Education, Office of the Governor “A transitional approach until a new formula is devised.. The … formula Provides for a simplified approach to fund distribution based on FY 11 Total calculated amounts on a per pupil basis” - Ohio Department of Education

BRIDGE Formula What is it? A method to distribute State Aid based upon levels of funding To districts. It is intended to be adjusted by current year enrollment, and Includes a reduction amount per pupil to keep total State Aid within the Present amounts of funds, Important points to keep in mind about the basis of the BRIDGE formula Funding for FY 11 was based upon enrollment taken in Oct. of 2009; Individual districts increases in FY 10 and FY 11 were limited to.25% of whatever the district received in FY 09 (school year ) Individual districts decreases in FY 10 were limited to -1% of whatever the district received in FY 09 and to -1% of whatever the district received in FY 10

Local Funding Property tax types: General Property – a tax levied on land and buildings – real estate or real property Tangible Personal Property - paid for by public utility companies Real Property divided into four classes: 1.Residential 2.Agricultural 3.Commercial 4.Industrial Funding issues – Real property is taxed at a reduced rate Residential and Agricultural are “Class I” millage rate

Local Funding Key Terms: Sale Value, Assessed Value and Reappraisal Sale Value = True value = Market value (only what someone would pay) Assessed Value = Taxable Value Reappraisal = The process of determining the assessed value Assessed Value: 1.A set % of true value is actually taxed 2.State of Ohio has set the percentage at 35% of market value Example - $100,000 = market value - Assessed value = $35,000

Local Funding Rollback reduction factors (HB 920): The state reduces taxpayer obligation by 12.5% on owner occupied real estate The State reduces taxpayer obligation by 10% on agricultural and non-owner occupied real estate Millage: Definition 1 mill =.1 cent = $.001 = 1/10 of a cent Tax rate on property is always computed in mills 1 mill = 10 cents of tax income per $100 of property value $1.00 in tax income per $1000 of property value $1000 in tax income per $1 million of property value

Local Funding Millage Example Market Value$100,000 Assessment Ratex 35% Assessed Value$35,000 Millage Rate0.001 Taxes Levied$35.00 Rollback Reduction*x.875 Net Taxes Levied$30.62 *12.5% for owner occupied residential real estate

Local School Funding Issues “Inside Mills / “Outside Mills” In Ohio, every property owner pays no more than 10 mills of “inside mills Inside mills are non-voted tax rates allowed by the Ohio Constitution ( the average for Ohio Schools is 4.6 mills) Inside millage is not affected by HB 920 Outside mills are any millage above the 10 inside and they are voted by the people Outside millage is affected by HB 920

Local School Funding Issues Reappraisal process: Once every 6 years auditor actually visits the property. Auditor must estimate the property’s “true” value. Three year triennial update is determined by the sales of property. If sale values increase or decrease, market value will reflect the same New construction is added to the list as it is appraised 50% of value when walls are up 100% upon occupancy Williams county “Reappraisal” in 2012 – Triennial in 2015

Local School Funding Issues The 20 Mill “Floor” Only current expense millage (inside and outside) counts toward the 20 mill floor. Once a district reaches the “Floor” it receives full growth on those 20 mills. i.e., HB 920s tax reduction factors do NOT apply

Impact of CAUV Current Agricultural Use Valuation (CAUV)- This is land devoted exclusively to commercial agricultural use may be valued according to current use instead of “highest and best” use. land of more than 10 acres may be placed in CAUV. All land is categorized into one of 4 categories regardless of what is grown on the land. A review of CAUV rates had not been conducted since 1984.

Questions from previous meetings: Enrollment numbers: 2003 enrollment presented in Jan. as part of 10 year trend was incorrect. Decline in enrollment trend is still accurate. Projection of having 40 students in classes in grades 7-12 core classes has only 2 core courses with a class size greater than 25 (both Jr. High and could still be balanced) Core class averages 7-12 Math = 17 per teacher Language Arts = 18 per teacher Science = 16 per teacher Social Studies = 19 per teacher

Questions from previous meetings: Spending on Gifted Funding: We must spend same amount as we did in 2009 per funding formula. We have two options, maintain our ESC services or spend same amount of money. Currently we spend approximately $20,000 by maintaining the service through the ESC. Otherwise, we would have to spend approximately $40,000 to spend at the 2009 level. Special Education Funding: Per the funding formula, funding is flat line. We receive a flat fee for students with special needs as opposed to the weighted funding. By reducing percentage on salaries, we can spend revenue on services and supplies instead.

Questions from previous meetings: Comparable numbers to other county schools: Teacher to student ratio and numbers of teachers in specific subject areas Many factors play into this factor. (negotiated agreement, seniority, political environment) Perhaps the most significant is the comparison in local support for each school. Taxpayers in the Edon School District pay the least amount of any other taxpayer in the county using comparable data.