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

2. 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

3. 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

4. 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.

5. 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

6. 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

7. 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

8. 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, =
The difference between the 490th Wealth District Per Pupil and our District Local Wealth Per Pupil is calculated
$204, – $106, = $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.

9. 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.

10. 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, in FY16 and will receive a projected $1,100,000 in FY17

11. 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.

12. 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.

13. What does this mean (Continued)

14. 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.

15. Coming Soon……

16. 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

22. Submitted to ODE by October 31 and May 31 each year
What is a Forecast?
ORC and OAC
Submitted to ODE by October 31 and May 31 each year
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.

23. 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:
General Property Tax (Real Estate)
1,121,336
1,191,277
1,198,617
1,202,218
1,211,018
1,244,441
Public Utility Personal Property
146,336
150,039
239,304
245,559
248,015
250,495
Income Tax -
Unrestricted Grants-in-Aid
5,240,067
5,181,880
6,144,324
6,386,846
6,274,452
6,295,316
Restricted Grants-in-Aid
86,718
153,349
159,951
158,600
160,879
161,435
Restricted Federal Grants-in-Aid - SFSF
Property Tax Allocation
237,016
243,246
242,285
248,879
249,460
251,065
All Other Operating Revenues
788,968
808,820
894,320
894,466
901,166
882,366
Total Revenue
$ 7,620,441
$ 7,728,611
$ 8,878,801
$ 9,136,570
$ 9,044,991
$ 9,085,119

24. 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:
Personnel Services
3,882,559
3,938,849
4,041,858
4,477,447
4,416,596
4,745,200
Employees' Retirement/Insurance Benefits
1,920,630
1,956,770
1,968,744
2,021,672
2,142,310
2,344,626
Purchased Services
1,213,253
1,303,374
1,543,210
1,589,242
1,583,692
1,638,024
Supplies and Materials
271,690
267,850
238,949
337,533
267,485
281,330
Capital Outlay
90,807
193,844
434,135
396,000
270,700
188,481
Other Objects
117,740
117,441
131,638
132,349
133,809
135,797
Total Expenditures
$ 7,496,679
$ 7,778,128
$ 8,358,534
$ 8,954,245
$ 8,814,594
$ 9,333,463

25. 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
Operating Transfers-Out
590
316
200,549
200,000 -
Advances-Out
7,907
6,109
1,885
5,000
All Other Financing Uses
350
2,350
Total Other Financing Uses
8,847
8,775
202,784
205,000

27. 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???