1. SCHOOL FINANCE TOPICS Presented By: Roger Dorson ~ Coordinator, School Financial and Administrative Services Jennifer Jordan ~ Director, School Finance Missouri Department of Elementary and Secondary Education March 2013

2. Topics  Budget Projections  Legislative Update  Local Effort  Non-Certificated Educators  Minimum Salary  Additional days and State Aid  Annual Secretary of the Board Report (ASBR)

3. Dollar Value Modifier (DVM)  Preliminary FY14 DVM available at http://dese.mo.gov/divadm/finance/ http://dese.mo.gov/divadm/finance/

4. Basic Formula Local Effort  Decrease in assessed valuation below 2004 valuation  Increase in Fines above 2004-05 revenue

5. 2012-2013 Budget Estimates  Prop C estimate - $854 per prior year WADA

6. 2013-2014 Budget Estimates – Proposition C  Prop C - $879 per prior year WADA From the February School Finance Memo: The decrease in regular summer school that was experienced in 2010 has held steady. With statewide ADA basically holding constant and the assumption that summer school will do the same, it is predicted that Proposition C Payment WADA will be in the vicinity of 902,000 in FY14. This number is slightly above the Prop C payment WADA for the current year due to the closing of some charter schools which reduced WADA calculation for one year. If the Revenue Estimate of $793,100,000 is achieved, it would mean a WADA payment of approximately $879. To achieve this level of revenue it would require an approximate growth rate of 3.2% above the Consensus Revenue Estimate of $768,800,000 that is now projected for FY13. While it appears this level of collection is achievable, caution should be used as determination of budget estimates are made.

7. 2013-2014 Budget Estimates – Classroom Trust Fund  Classroom Trust Fund - $459 per prior year ADA  The Classroom Trust Fund is one of the funding sources of the Basic Formula and, like other funding areas, we will not know exactly the funding level until the appropriation process concludes. Please remember that this calculation is done to determine the proper placement of funds in accordance with statute.

8. 2013-2014 Budget Estimates – Classroom Trust Fund As a reminder, Senate Bill 291 passed in the 2009 legislative session includes the following provision in Section 163.043.5:  For the 2010-2011 school year and for each subsequent year, all proceeds a school district receives from the classroom trust fund in excess of the amount the district received from the classroom trust fund in the 2009-2010 school year shall be placed to the credit of the district's teachers' and incidental funds.

9. Legislation Legislative Updates

10. Bill Back Procedures (Local Tax Effort) Section 167.126, RSMo, requires a school district providing education services to a student who resides in another district but was placed in the district by the Department of Mental Health, Department of Social Services or a court of competent jurisdiction to bill the district of domicile an amount equal to the average sum produced per child by the local tax effort of the district of domicile.

11. Bill Back Procedures (Local Tax Effort)  Calculated using the Annual Secretary of the Board Report (ASBR) and Core Data for the previous fiscal year.  Computed by adding the prior year tax revenue the district of domicile received from property taxes, Intangible (Financial Institution) Taxes, M & M Taxes, In Lieu of Taxes and State Assessed Railroad and Utility Taxes, then dividing that sum by the prior year resident Average Daily Attendance (ADA) of the district of domicile.

12. Bill Back Procedures (Local Tax Effort)  The educating school district will bill the domicile district by dividing the domicile district’s tax effort by the educating district’s days in session and then multiplying by the number of days a student attended. (Domicile district’s tax effort per ADA / Days in Session) x Days Attended

13. Bill Back Procedures (Local Tax Effort) The local tax effort per ADA is available on the Missouri Comprehensive Data System (MCDS) portal at http://mcds.dese.mo.gov/Pages/default.aspx http://mcds.dese.mo.gov/Pages/default.aspx Once on this website select Quick Facts, then District and School Information and then Local Effort

14. Minimum Salary Requirements  Beginning Teacher – Minimum Salary $25,000  Master’s Degree with 10 years experience $33,000

15. Minimum Salary Requirements  Substitute teachers filling a regular classroom teacher’s position as the teacher of record for the class must be paid the minimum salary  All teachers are to receive at least their full-time equivalent proration of the applicable minimum salary  Minimum salary requirements include study hall teachers, in school suspension teachers and all others for whom the students’ hours are included in the average daily attendance calculation for state aid

16. Minimum Salary Requirements  Section 163.021.3, RSMo, specifies that the penalty for noncompliance with Section 163.172, RSMo, is the reduction of the Basic Formula to the 1993-94 amount.

17. Non-certificated Educators  Attendance Hours for any educators without a valid certificate will be disallowed for state aid payment purposes.  A substitute certificate meets the requirement of a certificate when the employee is functioning as a substitute teacher in the absence of the teacher of record or is employed as the teacher of record.  A report is available which will identify educators within the district that do not have a valid certificate on file with DESE. 17

18. Non-certificated Educators  This report can be accessed in either of the following ways:  Through Data Collections select Reports, select Special Reports, select Staff Assignment Report. Under Special Reports select No Certification – Teacher, scroll down and select Selected Assignments Only and then Run Report.  Log into web applications and select Educator Qualifications under the Cross Divisional heading, then select report menu, then select Staff Assignment Report. When the report selection options are available select No Certification – Teachers under the Special Report Heading and select Selected Assignments Only at the top of the selection criteria and then select run report. 18

19. Non-certificated Educators  At the end of the 2012-2013 year, DESE will prepare a list of educators meeting the following criteria:  Did not hold a valid Missouri educator certificate at any point in time between July 1, 2012 and July 1, 2013; or  Has a certificate pending but did not initiate the required background check prior to June 30, 2013.  School districts must then exclude the 2012-2013 hours of attendance for all students who were under the supervision of those educators since they did not have a valid certificate. 19

20. Non-certificated Educators  Questions regarding appropriate teacher certification should be directed to Educator Certification.  Questions regarding documentation for exclusion of attendance hours should be directed to School Finance. 20

21. Additional Days in the Calendar  Additional days added to the calendar does not equate to a higher ADA and higher formula dollars  When additional days are added to the calendar both the numerator and denominator are impacted  ADA calculation is total attendance hours divided by the hours in session

22. ASBR – Home Page

23. ASBR – Edits  Edit errors must be corrected before the district will see the submit button  Edit warnings  Must be reviewed and the district must Provide a remark as a response to the edit if a remark is acceptable Or; corrections must be made within the ASBR to resolve the edit Some warnings only require a remark and some will require the district to make corrections

24. ASBR - Edits Run edits by selecting the edits button

25. ASBR - Submit  ASBR submit button is available after the district has run the edits and there are no edit errors generating  If there are no edit errors and the submit button isn’t visible the problem is likely one of the following:  The current user has authority to the new ASBR system but doesn’t have submit authority  The user hasn’t been assigned ASBR authority as is required in the new ASBR system

26. ASBR Printing  The current section that is being viewed can be printed by selecting the current page report  This will print the whole section that is currently being viewed Example: All of Part II would print if any part of the revenues is currently being viewed  ASBR Report will print Part I through Part IV, Long and Short Term Debt, regardless of what page is currently being viewed

27. ASBR Printing  To print Part IV Application for State Transportation Aid, School Bus Depreciation Schedule and Facility Depreciation Schedule you have to be viewing that particular page and select the current page report for the page you are viewing  Each of these sections will have to be printed individually

28. ASBR Printing ASBR print options

29. ASBR Printing – ASBR Report To create a PDF file click the drop down menu by the save sign, select PDF and then save the file wherever you would like to save it

30. ASBR Version Selection  There is always an open version available so that districts can make changes to what was last submitted  Changes in the open version are never used in DESE systems and reporting  When School Finance is providing information to the public, legislators, the federal government, etc. we are always using the information from the last submitted ASBR  The drop down menu by the version will allow the district to drop down and view any edit letters, balance letters, and any prior submission of data

31. ASBR – School Bus Depreciation Schedule  Please take time to review the depreciation schedule each year  A “reviewed” button will be added to the depreciation schedule beginning with the 2012-2013 year to help remind districts to review the schedule  A field has been added to enter the VIN number for each bus  Please enter the VIN numbers in the 2011-2012 ASBR and resubmit the ASBR  Only DESE can delete a bus that is incorrectly on the depreciation schedule

32. ASBR – Long and Short Term Debt  General Obligation Bonds  Each bond issue may now be shown on a separate line  There is a drop down selection for the type of bond issue  The series number may now be included

33. 2012-2013 ASBR  2012-2013 ASBR  Debt Service Fund will be included in Part III-A and Part III-C instead of being a calculated field on Part I Summary  School bus VIN numbers will be required  A field will be added to the School Bus Depreciation Schedule for a bus purchased with other funds  ARRA revenue codes that are no longer being used will be deleted A complete list will be posted on the School Finance website  Initial communication with vendors regarding these changes has already occurred

34. Contact Information School Finance573.751.0357 Roger Dorson e-mail Roger.Dorson@dese.mo.gov Jennifer Jordan e-mail Jennifer.Jordan@dese.mo.gov