1. MISSOURI’S FOUNDATION FORMULA & JCPS PRELIMINARY BUDGET

2. 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

3. 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

4. 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.

5. 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

6. WADA Threshold Changes 2011-122012-13Difference Total ADA (Includes SS)8,1048,317213 F&R Lunch Threshold %32.0%38.8% F&R Lunch Threshold #2,5933,227 F&RL Students4,300 0 F&RL WADA427268-159 LEP Threshold %0.9%1.8% LEP Threshold #73150 LEP Students237201 LEP WADA9831-67 Total WADA8,6298,616-13 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

7. 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

8. 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

9. 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

10. 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

12. 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