1. W.A.S.D.A. NEW ADMINISTRATOR’S WORKSHOP BUILDING YOUR FIRST YEAR BUDGET THE STATE PERSPECTIVE February 1, 2006 Jerry Landmark Karen Kucharz

2. SCHOOL FINANCE TEAM Our goal is to help you help yourself….but we’re always available in case you need more! Our goal is to help you help yourself….but we’re always available in case you need more! “The most important outcome of formal education is to help students become independent of formal education” – Paul Gray in Technology Review “The most important outcome of formal education is to help students become independent of formal education” – Paul Gray in Technology Review Handouts: Handouts: Finance Team Home Page/Team Assignments; Finance Team Home Page/Team Assignments; The “Big Perspective” Road Map; The “Big Perspective” Road Map; Blank 06-07 Revenue Limit Worksheet; Blank 06-07 Revenue Limit Worksheet; Fund 10 Sample Budget; Fund 10 Sample Budget; Budget Adoption and Hearing Worksheets; Budget Adoption and Hearing Worksheets; Cost Increases vs. Revenue Limit Change; Cost Increases vs. Revenue Limit Change; Debt Timeline; Debt Timeline; Status & Deadlines; Status & Deadlines; Power Point Slides Power Point Slides

3. How We Can Help You Get on our listserv – a weekly message updating you on school finance topics of concern- by sending an email to one of the finance consultants; Get on our listserv – a weekly message updating you on school finance topics of concern- by sending an email to one of the finance consultants; Watch the WASDA Library Videos presented by the Finance Team; Watch the WASDA Library Videos presented by the Finance Team; Attend one of the Spring Finance Workshops held in April. Attend one of the Spring Finance Workshops held in April.

4. How We Can Help You Attend workshops sponsored by WASDA & WASBO that we present at: Attend workshops sponsored by WASDA & WASBO that we present at: “Everything You Wanted to Know About School Finance…..” March 15 in Madison, March 22 in Wisconsin Rapids; “Everything You Wanted to Know About School Finance…..” March 15 in Madison, March 22 in Wisconsin Rapids; Accounting Conference, March 29&30; Accounting Conference, March 29&30; “Getting It Right” in October; “Getting It Right” in October; School Finance Academy, July 19&20. School Finance Academy, July 19&20.

5. How We Can Help You Become familiar with our website at: Become familiar with our website at: http://www.dpi.wi.gov/sfs/index.html Don’t hesitate to call one of us for questions or guidance! Don’t hesitate to call one of us for questions or guidance! See Handout “Finance Team Home Page/Team Assignments See Handout “Finance Team Home Page/Team Assignments

6. The “Big Picture” Revenue Limit Calculation Budget Planning Papers 3 rd Friday Count, Oct 1 Tax Values, October 15 Aid Certify Levies via PI-401 & PC-401 (in portal) Budget Adjustments to BOE Send tax bills. PI-1508 Budget Report PI-1504 Annual Meeting?

7. Helping You Develop Your Budget Most Important: Revenue Limit The 06-07 Revenue Limit is a key piece of your budgeting…..check the link to the latest one we have on the web site. The 06-07 Revenue Limit is a key piece of your budgeting…..check the link to the latest one we have on the web site. Let’s take a brief look…. Let’s take a brief look….

8. Helping You Develop Your Budget Most Important: Revenue Limit

10. Revenue Limit Calculation Budget Planning Papers

11. A Bird’s Eye View Helping You Develop Your Budget Next: Comparing Budgets

12. Helping You Develop Your Budget What About Aid? Know what revenue you’re getting, and when you’ll receive it; Know what revenue you’re getting, and when you’ll receive it; ~~Equalization Aid ~~Tax Levies ~~Categorical Aids ~~Federal Grants ~~Local Fees ~~Equalization Aid ~~Tax Levies ~~Categorical Aids ~~Federal Grants ~~Local Fees Get some of these numbers from the “Aid Information” page on the left-hand sidebar of our website. Get some of these numbers from the “Aid Information” page on the left-hand sidebar of our website. Use the “State Aids Payment Schedule” on our website scan bar to help determine cash flow. Use the “State Aids Payment Schedule” on our website scan bar to help determine cash flow.

13. Helping You Develop Your Budget Equalization Aid There is little need to figure out your equalization aid at this time to prepare for the budget – the revenue limit determines how much money you have available. There is little need to figure out your equalization aid at this time to prepare for the budget – the revenue limit determines how much money you have available. DPI will provide an estimate in April and July. DPI will provide an estimate in April and July. Equalization aid plus the funds 10, 38 and 41 tax levies equal the revenue limit amount. Equalization aid plus the funds 10, 38 and 41 tax levies equal the revenue limit amount.

14. Helping You Develop Your Budget Equalization Aid If you want to do an aid estimate before we give you one in April, use the Simplified Percentage Method on our website under “Worksheets Executable” If you want to do an aid estimate before we give you one in April, use the Simplified Percentage Method on our website under “Worksheets Executable” Keep in mind we don’t have the 06-07 guarantees or cost ceiling numbers yet - any estimate will be little more than a guess - so, let’s look at 05-06. Keep in mind we don’t have the 06-07 guarantees or cost ceiling numbers yet - any estimate will be little more than a guess - so, let’s look at 05-06.

15. Helping You Develop Your Budget What About Debt? Debt is an important part of the budget process. Questions on refinancing or referendum debt should be referred to Gene Fornecker; Info on debt is on our website – look for “Debt Reporting;” Is your debt in Fund 38 or 39? Remember: Referendum debt does not affect revenue limit, but it DOES affect tax levy!

16. Helping You Develop Your Budget A Final Heads-Up About Debt The debt levy is determined by calendar- year payments; the budget reflects fiscal- year payments. The debt levy is determined by calendar- year payments; the budget reflects fiscal- year payments.

17. Helping You Develop Your Budget What’s New in Account Codes? Find out the latest accounting changes: click “WUFAR” on the left-hand side bar of the web site. Find out the latest accounting changes: click “WUFAR” on the left-hand side bar of the web site.  It provides a number of help tools for school accounting, including:  Definitions;  Links to information in special areas such as Membership – Debt Service – Tax Transactions;  Sample transaction coding;  Easy to access matrix for building allowable codes.

18. Helping You Develop Your Budget What’s Fund Balance? Helping You Develop Your Budget What’s Fund Balance? Do a cash flow analysis to help determine short-term borrowing needs. Use our Fund Balance Practices web page for help with fund and cash balance. Sooner or later, someone will ask you to explain it to them!!!

19. Helping You Develop Your Budget Do You Need to Know What Others Are Doing? - it provides districts, legislators, and general public direct reading access to the DPI database. This is audited financial information. The School Finance Data Warehousecan help you see what other districts spend in a particular area – and it has your history, too! The School Finance Data Warehouse can help you see what other districts spend in a particular area – and it has your history, too!

20. Helping You Develop Your Budget After the Preparation….. Let’s look at the “Budget Hearing and Adoption” worksheet on the web page… Let’s look at the “Budget Hearing and Adoption” worksheet on the web page…

21. Helping You Develop Your Budget Reporting to DPI Find out what’s due and when – go to the “Reporting Portal” on the web site. It’s on the “Status and Deadlines” page. See Handout

22. Looking at it in a different way….. Calculate Revenue Limit Total all sources of revenue Calculate salaries, wages, and fringe benefits Calculate a budget for educational programs Outline Expected Cash flow Calculate a budget for “fixed” expenses i.e. heat, utilities, non-referendum debt Is end result balanced….? Cuts? Use Fund Balance?

23. SCHOOL FINANCE WEB PAGE: http://www.dpi.wi.gov/sfs/index.html Please contact us with questions or comments!

24. Or call: Lori Ames, Consultant, 264-3464 Lori Ames, Consultant, 264-3464 Brad Adams, Consultant, 267-3752 Brad Adams, Consultant, 267-3752 Karen Kucharz, Consultant, 267-9707 Karen Kucharz, Consultant, 267-9707 Jerry Landmark, Assistant Dir., 267-9209 Jerry Landmark, Assistant Dir., 267-9209 Gene Fornecker, Auditor, 267-7882 Gene Fornecker, Auditor, 267-7882 Natalie Rew, Auditor, 267-9212 Natalie Rew, Auditor, 267-9212 Kathryn Guralski, Auditor, 266-3862 Kathryn Guralski, Auditor, 266-3862 David Carlson, Director, 266-6968 David Carlson, Director, 266-6968