1. Board of Education Budget Workshop March 23, 2017
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2. Agenda
State Budget Information (January Consensus Revenue Estimating Conference)
Governor’s Executive Budget Proposal
Troy School District Current Budget Information
Historical Information and Budget Assumptions
Millage Rate Review and Discussion
Budget Schedule
Site Sinking Fund Discussion

3. Purpose

4. Objectives
Understand State Budget and provide information to reference
Review Governor’s Budget Proposal and Current Year Budget Information
Establish Budget Assumptions
Foundation Allowance / Categorical Funding
Pupil Count
Millage Rate Review
Sinking Fund Information and Discussion

5. State Budget Information
Governor Snyder’s Executive Budget Presentation
House Fiscal Agency:
Budget Briefing: School Aid

15. MPSERS Employer Contribution Rates History And Future Projections
The state portion of the MPSERS contribution rate is approximately $982.2 million in FY and will be over $1 billion in FY
Note: Future projected rates are from Office of Retirement Services based on current actuarial valuation
House Fiscal Agency: January 2014

16. Governor’s Executive Budget Highlights
Foundation Allowance, $128M ($50-$100/pupil increase)
At-Risk funding increase, $150M ($778/pupil)
Additional resources for high school operations, $22M ($50/pupil increase)
Career and technical education equipment upgrades, $20M, one-time
Financial support for declining districts, $7M, one-time
MiSTEM Network, $8.8M Total
MPSERS support

17. Troy School District Current Budget Information

18. GF Budget Amendment #2

27. Historical Information and 2017-18 Budget Assumptions

30. * $248.18 20J reduction occurred in the 2009-10 fiscal year

31. Understanding School Funding
18 Mills
6 Mills Fixed
Other Revenue Sources:
Sales, Income, Use,
Liquor, Excise Taxes,
Cigarette, Lottery, etc
Foundation Allowance
6 Mills Fixed
Mills

32. 2016-17 Foundation Allowance Breakdown
Total Foundation Allowance = $9,015
11.5%
19.9%
Amount dependent upon voter approval = $2,696
68.6%

34. 2017-18 Budget Assumption Summary
Foundation Allowance, $128M ($50-$100/pupil increase)
Pupil increase to 12,900 (increase of 12 students)
At-Risk funding increase, $150M ($778/pupil)
Additional resources for high school operations, $22M ($50/pupil increase)
Career and technical education equipment upgrades, $20M, one-time
Financial support for declining districts, $7M, one-time
MiSTEM Network, $8.8M Total
MPSERS support

35. Budget Schedule
March – June: Develop Budgets and Final Amendments
May/June Board Meeting: Public Hearing and Millage Rate Adoption
June Board Meeting: Budget Adoption

37. Millage Rate Review and Discussion

40. Homestead Millage (Hold-Harmless Levy)
Current Homestead Taxable Value is $2.4 billion
Millage levied on all qualified Commercial, Industrial, Residential Real Property and Commercial and Industrial Personal Property.
Levy can not be greater than the amount needed to generate $ per pupil
Millage Rate = $ x Pupil Count / Homestead Taxable Value X 1,000

41. Non-Homestead Millage
Current Non-Homestead Taxable Value is $1.1 billion
Millage levied on qualified Commercial, Industrial, Residential Real Property and Utility Personal Property.
mill non-homestead renewal was approved by voters in November of 2015.

42. Debt Millage Current taxable value on all properties is $3.6 billion.
Millage levied on all qualified property for the purposes of paying off the bond debt that was approved by voters.
Currently levy 4.7 mills to pay the approximately $16 million in bond principle and interest that is due this fiscal year.

44. Sinking Fund

45. What is a Sinking Fund?
MCL amended (91 days after adjournment of the 2016 regular session)
A sinking fund millage is a limited tax that may be used for the purchase of real estate for sites for, and the construction or repair of, school buildings, school security improvements, or for the acquisition or upgrading of technology.
The tax is levied each year and the revenue generated is used to address the most urgent building improvements identified and prioritized by a school district.

46. What is a Sinking Fund?
Differs from bond issues as it is a pay as you go strategy and is limited in its use.
Shall not exceed 3 mills and may be levied for a period not to exceed 10 years.
A 1 mill sinking fund given the current taxable value of $3.6 billion would generate $3.6 million per year for prioritized projects.

49. Sinking Fund - Categories of Potential Projects
Flooring
Doors
Windows
Concrete
Paving / Hard Surface Play Area
Building Security Systems
Technology
Play Grounds / Soft Surface Areas
Ceilings
Lighting
Mechanical and Plumbing
Early Childhood Debt Payment