1.   The 13-14 Revenue Limit is a key piece of your budgeting as it comprises:   75-90% of a district’s total resources   85-95% of General Fund revenues  We’ll review the steps of building your revenue limit and show an example. Let’s take a look …. (open 2013-14 blank worksheet online if you wish) http://sfs.dpi.wi.gov/sfs_revlimworksheet BUDGET DEVELOPMENT Most Important: Revenue Limit 1

2. Here is the blank executable 2013-14 worksheet: ** You will also need data from your 2012-13 Revenue Limit Worksheet – in your packet of handouts BUDGET DEVELOPMENT Most Important: Revenue Limit 2

3. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation Line 1: builds the “Base Revenue” using data from the 2012-13 worksheet Line 2: builds the “Base Membership”: using data from the 2012-13 worksheet (prior three-years rolling average membership) Line 3: “Base Revenue per Member” – base to which a per pupil adjustment is added. Example … 3

4. BUDGET DEVELOPMENT Building Base Revenue per Member Pre-populated worksheets will include this data, but you can build it now using the 12-13 worksheet and blank 13-14 worksheet on the DPI website. 2013-14 Worksheet2012-13 Worksheet 4

5. BUDGET DEVELOPMENT Building Base Revenue per Member Pre-populated worksheets will include this data, but you can build it now using the 12-13 worksheet and blank 13-14 worksheet on the DPI website. 2013-14 Worksheet2012-13 Worksheet 5

6. BUDGET DEVELOPMENT Building Base Revenue per Member Base Revenue / Base Membership = Base Revenue per Member Pre-populated worksheets will include this data, but you can build it now using the 12-13 worksheet and blank 13-14 worksheet on the DPI website. 2013-14 Worksheet 6

7. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation Line 4: (pre-filled) Per Pupil Adjustment, Low Revenue Ceiling Adjustment & CCDEB Adjustment (if applicable*) Line 5: 2013-14 maximum revenue per member (prior to exemptions) Line 6: “Current Membership” – using estimates for September 2013 pupil count Line 7: 2013-14 Revenue Limit prior to exemptions Line 7A = Line 5 x Line 6 Line 7B, “Base Hold Harmless”, if Line 1 < Line 7A *Very few districts are affected by the CCDEB Adjustment; call a Consultant on the SFS Team if your district is served by a CCDEB. 7

8. BUDGET DEVELOPMENT Building Current Revenue Limit (no exemptions) 2013-14 Worksheet 8

9. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation  At this point (Line 7), you have your estimated 2013-14 Maximum Revenue Limit prior to any exemptions  Exemptions to the revenue limit allow your district to levy additional amounts above the amount generated by membership changes and the per pupil adjustment 9

10. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation There are two types of Exemptions: 1.Recurring: permanent, they build your revenue limit base for the subsequent year 2.Non-Recurring – one time, they do NOT build your base for the subsequent year Know the Difference! Base Recurring Current Year Following Year Base Non-Recurring Base Current Year Following Year 10

11. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation Recurring Exemptions Recurring Exemptions (Line 8 of Revenue Limit Worksheet) 1.Carry-over of prior-year unused authority (DPI calculates based on prior year under-levy) 2.Transfer of Service 3.Transfer of Territory 4.Federal Impact Aid Loss 5.Recurring Referenda (single or multi-year) 6.Prior Year Uncounted Open Enrollment Pupils (new in 2012-13) 11

12. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation Non-Recurring Exemptions Non-Recurring Exemptions (Line 10 of Revenue Limit Worksheet) 1.Non-Recurring Referenda (single- or multi-year) 2.Declining Enrollment 3.Energy Efficiency Project 4.Refunded/Rescinded Taxes 5.Base Hold Harmless (Line 7B)* *While most districts did not received a Base Hold Harmless exemption for 2012-13 due to changes made by the Legislature in the 2011-13 State Budget, the calculation of this non- recurring exemption is scheduled to return to its original mechanism beginning in 2013-14. 12

13. BUDGET DEVELOPMENT Exemptions to the Revenue Limit 2013-14 Worksheet Line 8: all recurring exemptions – data will pre-fill in the pre- populated versions (as data is reported to DPI) but you can put in estimates now DPI calculates Line 8A Line 10+7B: all non- recurring exemptions 10B – Declining Enrollment is calculated by the spreadsheet based on membership data. 13

14. BUDGET DEVELOPMENT Exemptions to the Revenue Limit 2013-14 Worksheet Declining Enrollment Exemption (Line 10B) 14

15. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation  Very important to know the difference between recurring and non-recurring! It has consequences for subsequent year’s revenue limit  DPI encourages districts to consult with legal council when putting together wording for the referendum item on the ballot. 15

16. BUDGET DEVELOPMENT Review of the Revenue Limit Calculation  At this point we’re at Line 11 – Total Maximum Controlled Revenues with all Exemptions  This is the “Revenue Limit” figure you’ll need as you build your district budget  Beyond Line 11, the Revenue Limit Worksheet is designed to help you:  Determine the mix of State General Aid and Controlled Levy under the Revenue Limit (and Computer Aid – offset to Fund 10)  Fill in other, non-controlled levies (if applicable) and calculate the district’s full levy ( and levy rate) 16

17. BUDGET DEVELOPMENT Getting to Line 11 2013-14 Worksheet 17

18. We stop at this point in the Revenue Limit Calculation:   You can use the worksheet to estimate Line 11 for your district for budget purposes   You can enter different General Aid amounts to see the impact on the allowable controlled levy (Line 13 of the worksheet), but …   First official Aid estimate from DPI – July 1 st, 2013 BUDGET DEVELOPMENT Most Important: Revenue Limit 18

19. Helping You Develop Your Budget Most Important: Revenue Limit Revenue Limit Calculation Budget Planning Papers Updated information for the revenue limit calculation will inform your district’s budget process 19