1. Business Manager and CFO Roundtable Discussion April 29, 2015 Hank Johnson Consultant

2. Agenda Introductions Upcoming Events Updates on recent TEA Correspondence 2015-2016 Budget Outlook - Discussion Job Descriptions – Federal Programs Budget and Tax Rate Notice Legislative Update Senate Bill 945 House Bill 1759 Property Tax Bonds Miscellaneous Discussion for Future Meetings Questions and Comments

3. Sponsor Fastenal Company Worldwide supplier of OEM, MRO, and construction products Vendor for many Region 11 school Districts

4. Upcoming Events May 5 th - Public Funds Investment Training The ESC Region 11 Business Center is hosting a Public Funds Investment Training presented by guest speaker Patrick Shinkle, Associate Director for the Center for Public Management at the University of North Texas. CPAs will receive 5 hours of CPE credit. Register with this link: https://mis.esc11.net/session.asp?Wksp_Num=009391&sess_Nu m=017253 https://mis.esc11.net/session.asp?Wksp_Num=009391&sess_Nu m=017253

5. Upcoming Events May 13 th and 14 th - Region 11 Business Symposium ESC Region 11 is proud to be partnering with the Texas Association of School Boards (TASB) to host an event to address pressing issues in school business. This session is offered in two locations to better serve our districts. Presenters include Robb Sidebottom from TASB, Hank Johnson, Wes Jackson, and Dale Latham from ESC Region 11. Register with this link: https://mis.esc11.net/session.asp?Wksp_Num=009779&sess_Nu m=017837 https://mis.esc11.net/session.asp?Wksp_Num=009779&sess_Nu m=017837

6. Updates on recent TEA Correspondence Indirect Cost Rate Proposals Indirect Cost Rates to be released in June 2014–15 Reporting Requirements for Community and Student Engagement Must be submitted through PEIMS summer submissions

7. 2015-2016 Budget Outlook Salary Increases Tax Rates Reduction In Force Other Reductions

8. Job Descriptions – Federal Programs Job Title Job titles should describe both the nature and level of the work performed. Titles such as "Clerk," "Instructor," and"Analyst" indicate the general nature of the work, that is, the principal duties and responsibilities. Other components of a job title, such as "Senior," "Specialist" and "Lead," indicate the level of work. Dept/School It often helps to include the department name in the job title for purposes of clarity ("Curriculum & Instruction"). Wage/Hour Status Indicate whether the job is exempt or non-exempt (salaried or hourly with overtime), and whether it's regular or temporary, full-time or part-time. Reports to List such factors as to whom the employee will report and, if applicable, his/her supervisory responsibilities. Date Revised Most recent date job description is revised and provided to the employee. Job Summary In one sentence, the summary states the general nature and purpose of the job, becoming an "umbrella" for the job responsibilities, without directly listing one responsibility.

9. Job Descriptions – Federal Programs Preparing for Audit of Job Descriptions – Federal Programs You should be able to respond appropriately to and maintain documentation for each of the following questions to determine whether the duties and responsibilities listed below support that the payroll expenditure would be allowable: 1. What is the instructional program/service provided to all students? 2. What does the LEA do to meet Lau requirements? 3. What services is the LEA required by other Federal, State, and local laws or regulations to provide? 4. Was the program/service previously provided with State, local, and Federal funds? Based on the answers to the above questions, would the proposed funds be used to provide an instructional program/service that is in addition to or supplemental to an instructional program/service that would otherwise be provided to students in the absence of a Federal grant? 1. Review the “Federal and Non-Federal activities” to determine which programs should fund the activities. 2. Identify the applicable programs and the amount or percent of cost. 3. Determine which functions are direct/indirect (administrative) functions.

10. Budget and Tax Rate Notices A school district must post its meeting notice to adopt the proposed budget and tax rates, together with a summary of the proposed budget, in a local newspaper no later than 10 days or earlier than 30 days before the date of the public hearing. School districts are not required to publish an effective tax rate notice required by other types of taxing units.

11. Budget and Tax Rate Notices Content of the Notice comparison of property tax rates; comparison of proposed budget and last year’s budget; comparison between last year and current year property taxes on an average residence; and unencumbered fund balance. Information on appraised and taxable values

12. Budget and Tax Rate Notices Content of the Notice General information about the district Time, date and place of public meeting The notice states that the school board may not adopt a property tax rate that exceeds the proposed rate in the notice

13. Budget and Tax Rate Notices Newspaper Requirements At least quarter-page 18-point type or higher Published in a daily, weekly or biweekly newspaper in the district If no district newspaper then the notice can be published in a county newspaper with general circulation.

14. Budget and Tax Rate Notices Link to form: http://www.window.state.tx.us/taxinfo/taxforms/50-280.pdf

15. Legislative Update – Senate Bill 945 Senate Bill 945 – Fractional Funding Passed Senate 30-0 on Monday Districts with compressed tax rates below $1.00 2015 – 2016 and 2016 -2017 Allowed to convert pennies equalized at $31.95 yield to Tier 1 pennies Option to convert Tier 2 pennies to Tier 1 2017 – 2018 Automatic conversion of Tier 2 pennies to Tier 1

16. Legislative Update – Senate Bill 945 Districts with compressed tax rates below $0.98 and currently taxing at $1.04 or higher Should the $31.95 yielding pennies be converted to available tier 1 pennies? Districts with compressed rates at $0.98 or higher but less than a $1.00 Should tier 2 pennies be converted to tier 1 pennies in 2015-2016 and 2016-2017? Is a TRE an option to capture the available golden (high yield non recaptured) pennies in 2017-2018?

17. Legislative Update – House Bill 1759 HB 1759 - Public Education Funding Voted out of House Public Education Committee Repeals Sections 41, 42 and 46 of the Education Code Estimated cost $3 billion

18. Legislative Update – House Bill 1759 Provisions of HB 1759 - Basic Allotment (BA) Increase the Basic Allotment from $5,040 to $5,888 Repeal the Cost of Education Index and flow funds through the BA Repeal the transportation allotment and flow funds through the BA ($125 ADA = small district adjustment) Flow the High School Allotment through the BA Flow Additional Aid for Nonprofessional Salary through the BA Reduce the number of districts receiving funds from Additional State Aid for Tax Reduction by increasing the BA Increase the Equalized Wealth Level to $588,800

19. Legislative Update – House Bill 1759 Repeal the 1992-93 chapter 41 Hold Harmless Extend the Career and Technology Education allotment to eighth-grade students Phase out the Mid-sized Adjustment over 15 years after first year reduction Maintain the small school adjustment Address fractional funding for districts with compressed Maintenance and Operations tax rates less than $1.00

20. Legislative Update – House Bill 1759 Legislative Budget Board - Model FY 2016: HB 1759 2016.pdf (access PDF link on website) HB 1759 2016.pdf Legislative Budget Board - Model FY 2017: HB1759 2017.pdf (access PDF link on website) HB1759 2017.pdf

21. Legislative Update – Property Tax SB 1 – Changes school homestead exemption from $15,000 to a percentage (25% of median market value) HB 52 – Changes school homestead exemption from $15,000 to $45,000 HB 958 – Changes school homestead exemption from $15,000 to $30,000 HB 982 – Changes school homestead exemption from $15,000 to $25,000 HB 1276 – Exemption of property leased to certain schools used for educational purposes

22. Legislative Update – Bonds HB 1380 – Adds language to propositions for voters to approves bonds or to impose or increase taxes HB 1752 – Use of school bond proceeds and interest earned on bond proceeds HB 2963 – Requires most recent rating on bond ballot SB 103 and HB 1750 – Prohibits use of capital appreciation bonds

23. Legislative Update – Miscellaneous HB 870 – After the initial 10 hours of investment training the required hours are reduced to 5 SB 1760 – Purpose of tax increase must be included in TRE ballot SB 161 – Increases bilingual weight from.10 to.25 HB 1935 – Continues funding ASATR beyond 2017.

24. Discussion for Future Meetings Future Topics Dates for 2015 -2016

25. Questions and Comments