1. Spring Finance Workshop OPEB Special Education Days & Hours and more…….

2. OPEB

3. OPEB – State Categorical Aid  Beginning with the 2007-08 school year, contributions to a trust must meet certain criteria to be eligible for state categorical aid administered by DPI (state special education aid, high cost aid, state tuition aid, etc………..)

4. OPEB – State Categorical Aid  Beginning with the fiscal year that the trust is funded, the following criteria must be met. Year 1 – The contribution may be less than or equal to the ARC.  DPI will not enforce any fund 73 balance requirements in order for districts to get used to the process for operating a trust.

5. OPEB – State Categorical Aid Year 2 and each fiscal year thereafter – The contribution must meet at least one of the following 3 criteria.  The contribution must equal the ARC amount. OR  The contribution must exceed current year expenditures paid from the trust by 5%. OR  The contribution combined with the previous 2 year contributions must exceed current year expenditures combined with the previous 2 year expenditures paid from the trust by 15%.

6. OPEB – State Categorical Aid  We have created a spreadsheet that districts can use to determine whether or not their trust contributions are eligible for state categorical aid administered by DPI. http://www.dpi.wi.gov/sfs/xls/TestOfCateg oricalContribution.xls

7. OPEB – State Categorical Aid  We encourage districts to review this calculation prior to June 30 th, and to be conservative when estimating expenditures. Contributions may be made anytime during the fiscal year, but MUST be physically made before or on June 30 th.

8. OPEB - General  Just a reminder that expenditures for current retiree benefits may not be drawn from the trust prior to the trust being established.  Example: Trust established on June 1 st. Contribution to trust made on June 15 th. Payment for current retiree benefits from the trust must be for the month of June only.

9. OPEB - Resources  Information related to all aspects of OPEB can be found on the School Financial Services website in the link titled “Benefit Trust Fund” or directly at: http://www.dpi.wi.gov/sfs/emp_bene fit_trust_fund.html

10. SPECIAL EDUCATION

11. Special Education Account Coding  Although all elements of an account code are important, the project code is critical in coding special ed expenses. The project code communicates: the source of the funding (local, state, or federal dollars). aid status and payee if local dollars are used. the grant holder if grant funds are used.

12. Special Education Expense Coding Project #FundingGrant-Holder Categorically- Aided?** 011Local (no grant money)N/AYes 019Local (no grant money)N/ANo 340IDEA GrantsYour DistrictNo 599Grants other than IDEAYour DistrictNo 315State GrantOther DistrictNo 317Federal GrantOther DistrictNo 515State GrantCESA/CCDEBNo 517Federal GrantCESA/CCDEBNo 091*Local (reimbursed by CESA local, no grant money) N/AYes (to CESA) 092*Local (reimbursed by CCDEB local, no grant money) N/AYes (to CCDEB) * “package programs” **only certain expenses. See Special Ed link on website.

13. General Ledger Account Coding  Detailed Project Numbers: 011: Expense is locally funded and eligible for state special education categorical aid 019: Expense is locally funded and not eligible for state special education categorical aid. 340 (341, 347, etc……): Expense is funded with the district’s IDEA grants (The district files the claim directly with DPI and receives payments directly from DPI.)

14. General Ledger Account Coding  Detailed Project Numbers: 315 (state)/317 (federal): Expense is funded by either a state or federal grant that is administered by another school district.  The other district files the claim with DPI, receives the payment from DPI, and transits the grant money to your district.

15. General Ledger Account Coding  Detailed Project Numbers: 515 (state)/517 (federal): Expense is funded by either a state or federal grant that is administered by CESA/CCDEB.  CESA/CCDEB files the claim with DPI, receives the payment from DPI, and transits the grant money to your district.

16. General Ledger Account Coding  Detailed Project Numbers: 599: Expense is funded with a district grant other than an IDEA grant.  The district files the claim directly with DPI and receives payments directly from DPI.  An example of a grant reported in project code 599 would be an AODA grant or a Drug Free Schools Grant.

17. General Ledger Account Coding  Detailed Project Numbers: 091 (CESA)/092 (CCDEB): Expense is funded with local money from a CESA or CCDEB.  This type of arrangement is considered a “package program,” and the district is is considered a “host district.” The district’s expenses are funded in full.  Relatively few package programs exist in the State.

18. Special Education Account Coding  A fund 27 matrix is available to assist districts with account coding. http://dpi.wi.gov/sfs/xls/fund_27_matrix.xls

19. State Spec Ed Aid Eligibility  Eligible Expenses Salary & Fringe Benefits for:  most special education teachers & assistants;  speech/physical/occupational therapists;  psychologists, social workers, nurses, guidance counselors  special education administrative staff  special transportation

20. State Spec Ed Aid Eligibility  Appropriate Licensure The staff member must hold the appropriate licensure for the function he/she is being charged to. http://dpi.wi.gov/sfs/doc/valid_code_se.doc

21. State Spec Ed Aid Eligibility  Entities complete the PI 1202 fall staffing report identifying the staff member, FTE, and assignment (including function). This report is static and does not get updated during the year. Teacher licensing compares the staff assignment from the PI 1202 report against the staff member’s license.

22. State Spec Ed Aid Eligibility  Auditors are required to identify the amount of salary and benefits paid for each staff member listed on the “no valid license list.” The identified salary and benefit amounts are withheld in the categorical aid calculation. Aid is withheld until the DPI special education licensing team approves the individual’s license status.

23. State Spec Ed Aid Eligibility  Appropriate Allocation Salaries and benefits of these professionals must be allocated between regular education (fund 10) and special education (fund 27) based on time and costs.  psychologists  social workers  nurses (registered nurses, licensed by WI Dept of Regulation and Licensing)  guidance counselors http://www.dpi.wi.gov/sfs/ltrjan12_06.htm l http://www.dpi.wi.gov/sfs/ltrjan12_06.htm l

24. State Spec Ed Aid Eligibility  Auditors will verify that staff time/costs have been: done on an annual basis for each individual staff member claimed; documented for review by the entity’s auditor and potentially DPI; based on a method that is both rational and defensible.

25. State Spec Ed Aid Eligibility  Auditors are required to identify the amount of salary and benefits paid for each staff member that has been inappropriately allocated. The identified salary and benefit amounts are withheld in the categorical aid calculation. Aid is withheld until the DPI pupil services team approves the individual’s license status.

26. State Spec Ed Aid Eligibility STAY TUNED!!!  A pending law will alter the process you use to allocate guidance, nurse, psychologist, and social work positions to fund 27.  We will provide you detailed information as soon as we have it!

27. State Spec Ed Aid Eligibility  Eligible Expenses Purchased Services (Directly Aidable)  Occupational/Physical Therapy when paying an individual or entity that is not eligible for state categorical aid  Homebound Travel  Special Transportation  Out of State Tuition (special approval required)

28. State Spec Ed Aid Eligibility  Eligible Expenses Supplies  Only supplies for the special transportation vehicle

29. State Spec Ed Aid Eligibility  Eligible Expenses Equipment  Only equipment for the special transportation vehicle  Special permission is required to purchase a bus and apply for state special education aid.

30. State Spec Ed Aid Eligibility  Eligible Expenses Insurance  Property insurance for the special transportation vehicle  Unemployment insurance for the cost of unemployment checks issued to former special education staff within one year IMMEDIATELY following termination

31. State Spec Ed Aid Eligibility  Eligible Expenses Dues & Fees  Special Transportation - specifically any entry fees to activities for special education students on field trips http://dpi.wi.gov/sfs/doc/se_claim_directions.doc

32. Special Education Report  Districts are required to complete 2 annual reports with fund 27 information. SAFR Annual report –Summarized fund 27 Special Education Annual Report – Detailed fund 27 (project numbers) THESE 2 REPORTS SHOULD MATCH!!!

33. Special Education Report  Input Spec Ed Expenses  Only those functions with the potential for aidable costs are entered in detail.  If you have an expense that does not have a detail line, and the function begins with a 1, then report the expenses in function 199999.  If you have an expense that does not have a detail line, and the function begins with a 2, then report the expenses in function 299999.

34. Special Education Report  Input Spec Ed Expenses  Although nurse and guidance salary/benefit expenses have the potential to be aidable, there is no detail line on the report for data entry.  If you have aidable guidance and nurse expenses coded to project code 011 on your ledger, please enter these expenses in function 299999, project 019.

35. Special Education Report  Input selected revenue accounts  Enter revenue for source 346 and 347  These two revenue accounts are the only ones requested because they are used in the maintenance of effort calculation.

36. Special Education Report  Identify entities to whom you’ve made grant payments  Not only do you need to report the payment in the correct account number, you also need to identify who you paid and how much.

37. If you paid another entity using grant money, you need to answer “yes” to this question!

38. If you paid another entity using grant funds, then you need to identify the entity and how much you paid them.

39. Special Education Report  Identify any Deductible Receipts  A deductible receipt is created when an entity incurs an aidable expense (coded to project 011) that is ultimately reimbursed by another entity with grant funds.  Since DPI calculates aid based on expenses coded to project code 011, you need to tell me if some of those expenses have already been reimbursed by grant money.

40. If someone paid you for an expense that you coded to project code 011, then you must answer “yes” to this question.

41. Identify the deductible receipt amount in the function the project code 011 expense was initially charged.

42. Identify the entity that paid you using grant funds as well as record the amount of their payment that was for an expense coded to project 011. The dollar amount on this screen should match the amount in the 27D function lines.

43. Special Education Report  Just a reminder that the flat rate amount of an open enrollment tuition is not considered a deductible receipt. Any additional student specific open enrollment tuition may be a deductible receipt if the original expense was coded to project 011.

44. Special Education Report  Report submittal involves sending an email to the department with a text file attached. If you need to report project code 011 guidance and nurse expenses, then additional information must be included in the body of the email. (wording is available on the web) http://www.dpi.wi.gov/sfs/se_report.html

45. Aid Calculation & Payments  Normal aid calculation involves: Gross Aidable Expense -No Valid License -Questioned Cost +/-Miscellaneous Adjustments =Net Aidable Cost

46. Aid Calculation/Payments  Because payments start before data auditing is finished, aid eligibility and therefore aid payment amounts may constantly change.  Districts can see aid payments, aid computations, and aid adjustments at the following link. http://www.dpi.wi.gov/sfs/sped_worksheets. html

47. What’s New on the Horizon? JASPER!!!!!! (Jewel for Special Education Reporting)  We are planning to roll out a new on- line special education report beginning with the 2008-09 budget!!!!!!!!!!!  It will be what we consider “Phase 1” of the entire special education redesign process.

48. DAYS & HOURS OF INSTRUCTION

49. Days of Instruction  Districts must schedule at least 180 days of instruction. A school day that contains fewer instructional hours than a full schedule is considered a school day; however, only the hours of instruction provided may be counted towards meeting the hours requirement.

50. Days of Instruction  Of the 180 days, 5 of these days may be used for parent-teacher conferences or for inclement weather. Districts cannot count as 2 days toward the 180 day requirement a situation in which students attend school during the day with parent/teacher conferences in the evening. A 24 hour time period can only be counted once.

51. Days of Instruction Example  The District schedules 178 days of actual instruction and 2 days of parent teacher conferences in lieu of 2 days of actual instruction. Does this meet the 180 day requirement? What happens if the district has 4 inclement weather days? The district will need to make up at least one day. Yes

52. Days of Instruction Example  The District schedules 179 days of actual instruction and 2 nights of parent teacher conferences after the school day ends. Does this meet the 180 day requirement? No. A day may only be counted once. The evening parent conferences are not counted towards meeting the 180 day requirement. They may however, be counted as a day for your local teacher contract purposes.

53. Hours of Instruction  The district must schedule the following hours of instruction. 437 hours for kindergarten  437 hours + 87.5 hours of outreach if intending to claim.6 FTE for membership purposes 1,050 hours for grades 1 – 6 1,137 hours for grades 7 - 12

55. Days/Hours of Instruction  Days of instruction and hours of instruction are two separate standards that districts must meet. A district might meet the days of instruction standard, yet be short in meeting the hours of instruction standard. Many districts schedule the total required number of hours within 175 days of instruction.

56. SUMMER SCHOOL

57. Summer School  Issues to think about when planning for summer school. Schedule classes with academic purpose. Asses appropriate fees. Verify summer school minute computations are correct. http://www.dpi.wi.gov/sfs/summ_sch.html

58. Summer School  Auditors review summer school computations and fees if the district has a membership audit.  Summer School findings are sent to DPI.  DPI reviews both the class offerings as well as the associated fees.  If findings can not be explained or resolved, the district may lose FTE for both revenue limit and equalization aid purposes.

59. WUFAR CHANGES

60. WUFAR Account Changes  Required Object Codes 211 – Retirement – Employee’s Share 212 – Retirement – Employer’s Share 218 – Contribution to EE’ee Benefit Trust 219 – Other Employee Benefits  Required Source Codes 951 – District contribution to Trust 952 – Plan member contribution to Trust

61. WUFAR Account Changes  New Source Code 692 – Aid for High Poverty School Districts (reported in source 619 in the budget report)  Expanded Source Definition 699 – Other State Revenue to include “Project Lead the Way” grants  Full list of changes at: http://www.dpi.wi.gov/sfs/wufar.html http://www.dpi.wi.gov/sfs/wufar.html

62. Medicaid Auditing

63.  As directed by DHFS, Medicaid receipts will be audited for the first time beginning in 2007-08 if: the District already has a federal single audit; the District receives over $100,000 in Medicaid receipts.  Districts will need to have completed their PI 1505 Special Education Annual Report for auditor fieldwork.

64. Medicaid Auditing  After the initial audit, the Medicaid audit will take place every 3 years, assuming receipts remain over $100,000.  Specific object codes are available via WUFAR to assist in accounting for Medicaid expenses. (See WUFAR Revision #9) http://www.dpi.wi.gov/sfs/wufar.html

65. Spring Finance Workshop Revenue Limits Equalization Aid Membership and more…….

66. Revenue Limits Advanced Concepts & Potential Pitfalls …..how can there be self-help “groups”……?

67. Revenue Limits Section 1: Successfully Getting from One Year to the Next Section 2: Unintended Consequence of the Line 7 Hold Harmless Calculation Section 3: Using Line 7 in 5-Year Projections Section 4: Equalized Tax Rates, Assessed Tax Rates, and Assessment Ratios Section 5: What’s (New) On The Net?

68. Revenue Limits Section 1: Successfully Getting from One Year to the Next ……how these all work together…… Recurring Exemptions Non-Recurring Exemptions New-Year Base Carryover Underlevy

69. Recurring Exemptions (Lines 8A-E) are base-building – that is, if the district taxes for any of this additional authority, the levy amount is automatically included in the succeeding year’s base. Any unused Recurring authority is eligible for 100% carryover into the next year. Non-Recurring Exemptions (Lines 10A-C) are not base-building – that is, if a district taxes for any of these exemptions, the amount is not included in the succeeding year’s base. Any unused Non-Recurring authority is not eligible for carryover in the next year – districts have one, and only one opportunity to use Non-Recurring exemptions. Revenue Limits

70. Recurring Exemptions Prior-Year Carryover Transfer of Service Transfer of Territory Federal Impact Aid Loss Recurring Referenda to Exceed (if year 1 of authority) Non-Recurring Exemptions Non-Recurring Referenda to Exceed Declining Enrollment Other

71. DPI is specifically directed to ensure non-recurring exemption authority is not included in the subsequent year’s base: Revenue Limits 121.91(4)(f)2 states: Any additional revenue received by a school district as a result of subds. 1. and 1m. shall not be included in the base for determining the school district’s limit under sub. (2m)(e) for the following school year. “1.” is the 100% declining enrollment exemption for all districts. “1m.” is the 100% declining enrollment exemption for both Shawano and Gresham. Declining Enrollment Authority:

72. Revenue Limits 121.91(7) states: If an excess revenue is approved under sub. (3) for a nonrecurring purpose, the excess revenue shall not be included in the base for determining the limit for the next school year for purposes of this section. Non-Recurring Referendum: 121.91(8) states: Any additional revenue received by a school district as a result of this subsection shall not be included in the base for determining the school district’s limit under sub. (2m) for the following school year. Line 7 Hold Harmless:

73. Revenue Limits Line 7 Hold Harmless – Defined Line 7 = Line 5 multiplied by Line 6. But, wait, $8,700 x 759 = $6,603,300 - NOT $6,627,600! A new provision in the 07-09 Biennial budget allows districts to use Line 1 if Line 5 multiplied by Line 6 is less than the Line 1 amount. The extra amount of $24,300 is known as the “Line 7 Hold Harmless” exemption. It’s a non-recurring exemption!

74. So, how does this really work when districts can have any combination of recurring and non-recurring exemptions, Line 7 hold harmless, plus an underlevy? What’s in the base in the next year? What’s the carryover? The answers might change the fiscal decisions you make! Revenue Limits ……….let’s look at a number of examples……….

75. Base $10,000,000 Inflationary Increase Transfer of Service Recurring Referendum Prior Year Aid plus Levies (no backouts) #1 - Recurring Exemptions, Levied to Max 2007-082008-09 Aid + Levy Base This district used all of its authority and has no carryover authority in 08-09, Line 8A.

76. Base $10,000,000 $800,000 Inflationary Increase Transfer of Service Recurring Referendum Prior Year Aid plus Levies (no backouts) #2 - Recurring Exemptions, Under-levy 2007-082008-09 Aid + Levy Base This district will have $200,000 of carryover authority in 2008-09 in Line 8A. Underlevied by $200,000

77. Base Inflationary Increase Decl Enroll - $150,000 Prior Year Aid plus Levies minus $150,000 #3 - Non-Recurring Exemptions, Levied to Max 2007-082008-09 Aid + Levy Base This district will have no carryover authority in 2008-09 in Line 8A.

78. Base Inflationary Increase Line 7 - $46,000 Prior Year Aid plus Levies minus $46,000 #4 - Line 7 Hold Harmless (non-recurring), Levied to Max 2007-082008-09 Aid + Levy Base This district will have no carryover authority in 2008-09 in Line 8A.

79. Base Inflationary Increase Low Revenue Increase Line 7 - $46,000 Prior Year Aid plus Levies minus $36,000 #5 - Line 7 Hold Harmless (non-recurring), Recurring, Under-levy 2007-082008-09 Aid + Levy Base This district will have no carryover authority in 2008-09 in Line 8A. Underlevied by $10,000 Transfer of Service

80. Base Inflationary Increase Transfer of Service Line 7 - $46,000 Prior Year Aid plus Levies (no backout) #6 - Line 7 Hold Harmless (non-recurring), Recurring, Under-levy 2007-082008-09 Aid + Levy Base This district will have $10,000 in carryover authority in 2008-09 in Line 8A. Underlevied by $56,000

81. Base Inflationary Increase Line 7 - $40,722 Rec Ref - $252,707 Prior Year Aid + Levies #7 - Line 7 Hold Harmless (non-recurring), Recurring, Non-Recurring & Under-levy 2007-082008-09 Aid + Levy Base Plus, this district will have $43,955 of carryover authority in 2008-09 in Line 8A. Decl Enroll - $168,030 Underlevied by $252,707 $43,955

82. Recurring Exemptions (Lines 8A-E) are base-building – that is, if the district taxes for any of this additional authority, the levy amount is automatically included in the succeeding year’s base. Any unused Recurring authority is eligible for 100% carryover into the next year. Non-Recurring Exemptions (Lines 10A-C) are not base-building – that is, if a district taxes for any of these exemptions, the amount is not included in the succeeding year’s base. Any unused Non-Recurring authority is not eligible for carryover in the next year – districts have one, and only one opportunity to use Non-Recurring exemptions. Revenue Limits (repeated slide)

83. Revenue Limits Section 2: Unintended Consequence of the Line 7 Hold Harmless Calculation

84. Prior to the implementation of the new Line 7 Hold Harmless provision in 07-08, if a district was in declining enrollment, and a membership revision AFTER setting the levy increased a district’s “Current” 3-Year Average: - Line 7 would increase accordingly. - The declining enrollment exemption would decrease. - Because of the 75% declining enrollment exemption, the district may end up underlevying as a result. (and have no carryover from the declining enrollment exemption) Revenue Limits

85. Revenue Limits (06-07 and previous) Line 1 Line 6 Line 7 Line 10B Line 11 $4,961,897 499 (512,502,483) $4,964,122 $99,481 $5,143,401 Increase in Membership Line 1 Line 6 Line 7 Line 10B Line 11 $4,961,897 499 (512,502,485) $4,974,070 $99,481 $5,143,401 Decrease in Membership 485 500 $4,974,070 $89,533 SAME 498481 $4,954,174 $109,430 $5,143,402

86. Revenue Limits (beginning with 07-08) Line 1 Line 6 Line 7 Line 10B Line 11 $5,043,920 483 (502,483,465) $5,043,920 $165,955 $5,208,467 Increase in Membership Line 1 Line 6 Line 7 Line 10B Line 11 $5,043,920 483 (502,483,465) $5,043,920 $165,955 $5,208,467 Decrease in Membership 466 484 $155,583 482462 $176,327 $5,218,839$5,198,095

87. Revenue Limits Section 3: Using Line 7 in 5-Year Projections

88. Revenue Limits

89. Section 4: Equalized Tax Rates, Assessed Tax Rates, and Assessment Ratios

90. Taxpayer (angrily): “My property assessment did not change from last year, and I remember you telling us that the school’s levy rate decreased. How could my taxes have gone up?” Revenue Limits Hint: The answer is NOT that that the other taxing units increased their levies. (It could be, but in this case, it’s not.)

91. Revenue Limits Assessed Value:$100,000 Assessment Ratio:.987257273 Equalized Value:$101,290.72 School District Equalized Rate: 0.0098 Taxes$992.65 Assessed Value:$100,000 Assessment Ratio: 1.0221 Equalized Value:$97,837.78 School District Equalized Rate: 0.00983 Taxes$961.75 2006 Taxes2007 Taxes

92. Revenue Limits Section 5: What’s (New) On The Net? SFS Homepage > District Budget Dev & Planning > Revenue Limit > 7-Year Revenue Limit Survey http://dpi.wi.gov/sfs/index.html SFS Homepage > District Budget Dev & Planning > Revenue Limit > 07-08 Revenue Limit Authority Sources

93. Equalization Aid Advanced Concepts & Potential Pitfalls

94. Equalization Aid Marginal Cost Sharing at 3 rd Tier vs. Overall Cost Sharing

95. Tax-relief programs can either: - provide relief by focusing on holding down levies (relief is pre-levy). (Equalization Aid) - provide relief directly to taxpayers by reducing the amount owed on their property tax bills (relief is post-levy or “below-the line”). (Levy Credit) Equalization Aid vs. Levy Credit

97. Either way, it’s State money that alleviates the taxpayer’s bottom line tax burden………. ……….but, the distribution methodology between the 2 is different, so a taxpayer in any single district can experience a different effect, depending on the path the State uses to distribute the money. Equalization Aid vs. Levy Credit

98. Equalization Aid is distributed to districts in inverse proportion to the district’s value per member. *** The poorer the district, the greater the amount of Equalization Aid received; and the richer the district, the lesser amount of Equalization Aid received. Equalization Aid vs. Levy Credit

99. School Levy Tax Credit is allocated to municipalities based on their proportionate share of statewide school levies during the previous 3 years. *** So, the larger the levy, the greater the amount of School Levy Tax Credit received; and the smaller the levy, the lesser amount of School Levy Tax Credit received. Equalization Aid vs. Levy Credit

100. Membership & Other Topics Advanced Concepts & Potential Pitfalls

101. Present: The pupil is in attendance for instruction on the count date. Absent: The pupil is absent for instruction on the count date. If any pupils are absent on the count date, they can still be counted if they have attended at least one day during the school year prior to the count date, at least one day during the school year after the count date, and have remained a resident of the district during the period of absence. Students reported in the "absent" column must have returned to school in order to be included in the PI 1563 Pupil Count Report. If the student returns after the initial submission of the report, the report should be amended to include the student in the pupil count. Membership

102. X.5 = 2.5 X.6 = 19.80 X.5 =.5 X 1 = 37 X 1 = 561 = 3 =20 =37.5=38 = 561 TOTAL =622 Remember to convert to FTE !!!!!!!

103. Membership The dreaded edit………… What Does This Really Mean? Review Your Answers > Summary of 4 YK

104. STEP 1 STEP 2 STEP 3 STEP 4 (in seats) (subtract non- residents) (subtract ineligible residents) (add residents)

105. Open Enrollment Verification In mid-March, open enrollment verification lists were sent to all districts. (…..lists of kids’ names and whether they are an open enrolled in/out of your district) Your final aid payments for 07-08 will be monetarily adjusted based on the open enrollment child numbers. Carefully review all names, determining each child’s status – i.e. are they still enrolled/attending where the list indicates?....did they move? When? Where? Communicate with surrounding districts to determine each child’s status.

106. Tax Incremental Financing Each spring, municipalities consider adding a TIF district, and districts ask about the effect of a TIF district on state aid. The answer is not much, if any, until the TIF district is ended.

107. The aid calculation uses the TIF-Out equalized value of a district to determine its aid eligibility. The value of the TIF district (for aid purposes) remains the same as the day the TIF was created. Because the increasing value of the TIF district is not included in the equalized value, school district aid is not affected by the increasing value of the TIF district. Tax Incremental Financing

108. When the TIF district dissolves after 20+ years, the district’s equalized value reflects the increased value of the TIF district, and its aid is then affected. Many times, the TIF district will generate more money than is necessary to pay off the initial loan. That money is then distributed to the underlying taxing districts in the form of a TIF closeout, is outside the revenue limits and is treated similar to a tax levy in the aid formula.

109. Questions? Visit our web site: http://dpi.wi.gov/sfs/index.html

110. Or call: Brad Adams, Consultant, 267-3752 Lori Ames, Consultant, 266-3464 Karen Kucharz, Consultant, 267-9707 Jerry Landmark, Assistant Dir., 267-9209 Gene Fornecker, Auditor, 267-7882 Natalie Rew, Auditor, 267-9212 Kathryn Guralski, Auditor, 266-3862 David Carlson, Director, 266-6968