1. REVENUE and EXPENDITURE BUDGETS OTHER FUNDS

2. Glossary Budgeted Fund ◦ Any fund for which a budget must be officially adopted by the Board of Trustees in order to expend money from the fund (MCA 20-9-201(a)) Cash Fund ◦ Expenditures are limited by cash on hand Fund Balance re-appropriated (FBR) ◦ Cash Remaining on June 30  less the reserve  less any outstanding obligations Reserve ◦ Limits are Set by Montana State Law ◦ Cash that can be set aside and not used to fund next year’s budget ◦ Helps to pay bills that are due before revenues begin to come in ◦ Change for FY14 – Retirement is capped at 20% State School Block Grant (20-9-630, MCA) ◦ Replaced Several non-levy revenues (HB124 – FY02) ◦ Amount paid is increased by.76% each year. ◦ Must be budgeted as non-levy revenue in the General & Transportation Funds

3. General Fund (01) Budgeted Fund (MCA 20-10-101) PURPOSE: Primary operating fund and it accounts for all financial resources of the district except those required to be accounted for in other funds. To finance general maintenance and operational costs of a district not financed by other funds.

4. General Funding Funding is comprised of the following sources. ◦ Direct state aid equal to 44.7% of the district’s basic and per-ANB entitlements ◦ 100% of the total Quality Educator Payment ◦ 100% of the total At-Risk payment ◦ 100% of the total Indian Education for all Payment ◦ 100% of the American Indian Achievement Gap payment ◦ Special education allowable cost payments from the state ◦ 100% Data for Achievement Component (New for FY14) ◦ Non-Levy Revenue and FBR ◦ GTB ◦ Voted & non-voted local levies

5. General Fund (01) Budgeted Fund COMMON CODING Fund: 101 Elementary General 201 High School General Program: Varies Function: Varies Object Codes: All Object Codes Revenue Source: Varies RESERVE LIMIT ◦ 10% or $10,000 – Whichever is greater (20-9-104(1), MCA) VOTER APPROVAL OF TAX LEVIES ◦ Base Levy – Permissive (non-voted) ◦ Over-Base Levy – Must get voter approval for an increase in the prior year’s over-BASE levy.

6. Transportation Fund (10) Budgeted Fund (MCA 20-10-101) PURPOSE: Established for the purpose of financing the - Maintenance and operations of district owned school buses Contracts with private carriers for school bus service Individual transportation contracts And any amount necessary for the purchase, rental or insurance of school buses or operation of the transportation program

7. Transportation Fund (10) Budgeted Fund Transportation is the conveyance of a pupil by a school bus which is driven by a certified driver between the pupil’s legal residence or designated bus stop and the school of the pupil’s attendance. Reimbursement is given based on the miles traveled to transport eligible transportees on routes approved by the County Transportation Committee. An eligible transportee is a student between the ages of 5 and 21 who is a resident of the state regardless of District or County boundaries, who resides at least 3 miles from the nearest school. The student must be considered to reside with his/her parents who maintain legal residence within the boundaries of the district providing transportation.

8. Transportation Funding School Bus Miles Reimbursed ◦ First 3 miles is not reimbursed/6miles per day .95 per mile/rated capacity – not more than 49 passenger  1.15 per mile/rated capacity – 50 to 59 passenger  1.36 per mile/rated capacity – 60 to 69 passenger  1.57 per mile/rated capacity – 70 to 79 passenger  1.80 per mile/rated capacity – 80 or more passenger ◦ Nonbus mileage – vehicle driven by a bus driver to and from an overnight location of a school bus when it is more than 10 miles from the school  50 cents per mile

9. Transportation Funding Individual Transportation ◦ Parent transports student(s) between residence and school OR between residence and bus stop ◦ Minimum of 35 cents per day ◦ Maximum of $12.95 per day for first student, $8.40/9.60 for each additional student ◦ Isolated rate is 1 and ½ times the regular rate ◦ Room and Board per diem is the same as maximum miles per day X 2 – 6 miles X.35 cents per mile OPI Website – Pupil Transportation – Forms – Individual Contract Tips and Reminders

10. On Schedule Calculation Bus Miles Reimbursed +Nonbus Miles Reimbursed + Individual Transportation Contracts Reimbursed + 10% Contingency = On Schedule Reimbursement  50% County Levy  50% State Reimbursement

11. On Schedule Spreadsheet OPI has a great tool for this http:// www.opi.mt.gov /PupilTransport/index.html When routes vary from day to day you may need to set up different reimbursements for the same route. IE: Runs one way on Monday, Wednesday and Friday (Route 1a) and another way on Tuesday and Thursday (Route 1b).

12. Over Schedule Calculation When expenditure budget exceeds the reimbursement for On Schedule Remainder is funded by non-levy revenues and a local levy

13. Go to OPI Transportation Worksheet

14. Transportation Fund (10) Budgeted Fund Valid Expenditures ◦ Administrative salaries and benefits (% of time spent) ◦ Bus Driver wages and benefits – including 10 hours of training costs ◦ Fuel ◦ Repairs and maintenance to buses ◦ Insurance for buses ◦ Drug Testing ◦ Purchase of new or replacement yellow bus (not extra- curricular) ◦ Individual transportation payments ◦ Isolation payments

15. Transportation Fund (10) Budgeted Fund Valid Expenditures (cont.) ◦ Two way radios and base stations ◦ Supplies and equipment necessary for transportation administration ◦ Constructing and maintaining bus storage facilities ◦ Utilities for bus storage facility ◦ Any equipment necessary for safely transporting students ◦ Contracted bus fees ◦ Crossing guards ◦ Any other costs related to transporting students from home to school Does not include costs for field trips, activities and athletic transportation.

16. Transportation Fund (10) Budgeted Fund COMMON CODING Fund: 110 Elementary Transportation 210 High School Transportation Program: 100 Regular Programs 200 Special Programs Function: 2700 Student Transportation Object Codes: All Object Codes 514 Individual Transportation Contracts Revenue Source: 2220 County Transportation Reimbursement 3210 State On-Schedule Transportation Reimbursement RESERVE LIMIT ◦ 20% of Current Year Budget (MCA 20-10-144(3)) VOTER APPROVAL OF TAX LEVIES ◦ None (permissive)

17. Bus Depreciation Reserve (11) Budgeted Fund MCA 20-10-147 PURPOSE: This fund is for the purpose of financing replacement of buses including two- way radio equipment owned by a school district. Trustees of a district owning a bus or two way radio for purposes of transportation or for purposes of conveying pupils to and from school functions or activities have the authority to establish a bus depreciation reserve. Depreciation describes the process by which funds are raised.

18. Bus Depreciation Reserve Funding Funding ◦ Fund Balance Re-appropriated  (Year End Cash Balance)  Always budget at least the cash in the account ◦ +Non-Levy Revenues ◦ +Local Levy  Limited to 20% of the acquisition cost of each asset (bus or a 2 way radio) each year, not to exceed 150% over time  Ie: Bus cost 100,000  Annual depreciation is 20,000  Maximum depreciation 150,000

19. Bus Depreciation Reserve (11) Budgeted Fund Levy Permissively up to that amount Your Assets are listed in MAEFAIRS and you enter how much you want to depreciate each year Depreciate the oldest buses first so you can be sure you get them depreciated out before they are no longer in use SB 329 removes restriction on tranferring $$ out of this fund No longer have to sell all of the buses and get voter approval to transfer funds

20. Bus Depreciation Reserve (11) Budgeted Fund VALID EXPENDITURES ◦ Funds can be used to convert, remodel, or rebuild buses ◦ Funds can be used to purchase an additional yellow bus for route (SB 229) ◦ Can replace a yellow bus or an activities (non-yellow) bus ◦ Replace 2 way radios ◦ Funds can not be used to buy additional activity bus (SB 229) ◦ Cannot be used for ordinary repairs and maintenance (SB 229) ◦ Often use this fund to level out mills

21. Bus Depreciation Reserve (11) Budgeted Fund COMMON CODING Fund: 111 Elementary Bus Depreciation 211 High School Bus Depreciation Program: 100 Regular Programs 200 Special Programs Function: 2700 Student Transportation Object Codes: 660 Equipment under amount of capitalization policy (ie. $5,000) 730 Equipment over amount of capitalization policy (ie. $5,000) RESERVE LIMIT ◦ None. Districts usually reappropriate all fund balance to support the budget and allow for expenditures during the year. VOTER APPROVAL OF TAX LEVIES ◦ None (permissive)

22. School Food Services (12) Cash Fund MCA 20-10-201 PURPOSE: The purpose of this fund is to account for School Food service operations; to provide breakfast and lunch to students Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Other Revenues  Federal Reimbursement – based on a schedule of amounts that are multiplied by the number of daily participants in the breakfast, lunch or snack program; rates vary for free, reduced and full pay students; Federal payment is received through the OPI;

23. School Food Services (12) Cash Fund ◦ +Other Revenues (cont.)  State Payment – the state matching funds are based on a percentage of the federal payment, usually receive it once a year in the spring  District – most often expenses are subsidized by the general fund or if available Impact Aid  Meal Ticket Sales (Adults & Students) – students and staff pay on a per meal basis; the prices is set by each school district; Adults must pay at least the free meal reimbursement rate or the district must subsidize the program in order to cover the difference; ◦ Tips  The free and reduced count is used to drive many federal programs such as Gear-Up and Erate; encourage people to take advantage of the free and reduced prices;  Remember, for some children, this may be the only good, hot, nutritionally balanced meal they get in a day;

24. School Food Services (12) Cash Fund VALID EXPENDITURES ◦ Salaries – kitchen staff, meal distribution drivers, % of administration ◦ Benefits – of food services related staff ◦ Purchase, Repair, or Maintenance of food service equipment ◦ Supplies for food service ◦ Food

25. School Food Services (12) Cash Fund COMMON CODING Fund: 112 Food Service (101 Elementary General, 201 High School General) Program: 910 Food Service Function: 3100 Food Service Object Codes: All Object Codes (630 Food) Revenue Source: 4550 Federal Child Nutrition 3220 State Food Services Match 1600 Lunch Ticket Sales RESERVE LIMIT ◦ None

26. Tuition (13) Budgeted Fund MCA 20-5-323 PURPOSE: To finance tuition costs for elementary and high school districts with pupils attending schools outside their district of residence. Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Non Levy Revenues

27. Tuition (13) Budgeted Fund ◦ +Local Levy  For geographical barriers approved by County Transportation Committee  Agreements/Contracts for Grades 7 and 8 and Kindergarten in elementary districts that don’t offer K, 7 and/or 8  District placements (ie. IEP requirements) ◦ Tuition receipts are deposited into the General fund ◦ DPHHS and Court Placements (including Tribal court) are paid by the state out of county equalization before it is sent to the state ◦ Pay this year’s tuition in the next year so have the costs before you budget

28. Tuition (13) Budgeted Fund VALID EXPENDITURES ◦ For students the trustees have placed in another district ◦ For students where geographic conditions make it impractical for the student to attend in his own district ◦ Pay this year’s tuition in the next year so have the costs before you budget ◦ Payment is made the year after the year of attendance: 1st Half by 12/31. 2nd Half by 6/15

29. Tuition (13) Budgeted Fund COMMON CODING Fund: 113 Elementary Tuition 213 High School Tuition Program: 100 Regular Education Function: 1000 Instruction Object Codes: 560 Tuition Revenue Source: 1310 Individual Tuition 1320 School Tuition from Other School District Within the State RESERVE LIMIT ◦ None VOTER APPROVAL OF TAX LEVIES ◦ None (permissive)

30. Retirement Fund (14) Budgeted Fund MCA 20-9-501 PURPOSE: To finance the employer’s contribution to the Teacher’s Retirement System (TRS), the Public Employees’ Retirement System (MPERA/PERS), Unemployment Compensation and Social Security, (FICA and Medicare); Retirement costs for employees paid from federal funds must be paid from the federal program rather than the retirement fund;

31. Retirement Fund (14) Budgeted Fund Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Non-Levy Revenues  Interest Earnings  Combined School Block Grant  No other non-levy revenues as this is not a local levy

32. Retirement Fund (14) Budgeted Fund Funding (cont.) ◦ +County Retirement Distribution  Send Salary data to County Superintendent who calculates the countywide requirement  Non-Levy Revenue at County Level  Oil and Gas Taxes  Coal Gross Proceeds  School Retirement Block Grants (MCA 20-9-631)  Guaranteed Tax Base Aid for Qualifying Counties (MCA 20-9-367)  Eligible if the County Retirement Mill Value per ANB is less than the corresponding Statewide Mill Value per ANB

33. Retirement Fund (14) Budgeted Fund Distributed a minimum of 2 times per year Should monitor this county levy calculation and the distribution Have been many cases of errors in this calculation and distribution

34. Retirement Fund (14) Budgeted Fund VALID EXPENDITURES ◦ Employer share Social Security and Medicare ◦ Employer share TRS and PERS ◦ Employer payment of unemployment premium ◦ Early Retirement Bonus is not valid expenditures ◦ Payments to Employees are not valid expenditures

35. Retirement Fund (14) Budgeted Fund COMMON CODING Fund: 114 Elementary Retirement 214 High School Retirement Program: All Program Codes except Federal Funds Function: All Function Codes Object Codes: 210 Social Security and Medicare 220 Teacher’s Retirement 230 Public Employee’s Retirement 240 Unemployment Compensation Revenue Source: 2240 County Retirement Distribution RESERVE LIMIT 20% of the budget (20-9-501 (4)(a)(v), MCA) New Limit for FY14 VOTER APPROVAL OF TAX LEVIES None (permissive through countywide levy)

36. Federal Programs (15) Cash Fund MCA 20-9-507 PURPOSE: To account for local, state or federal grants and reimbursements Funding ◦ Federal: Per grant award ◦ State: Per grant award ◦ Local: Allowable miscellaneous receipts (often local donations)

37. Federal Programs (15) Cash Fund Program/Revenue for Common Grant Awards 420/4200 Title I – Improving Basic Programs 427/4270 Title I D – Neglected, Migrant, At Risk 430/4300 Title II – Teacher and Principal Training and Recruitment 432/4320 Title III – English Language Acquisition 413/4130 Title VII – Indian Education 456/4560 IDEA Part B 457/4570 IDEA Pre-School Special Education 360/3600 Gifted & Talented Education 390/3900 State Vocational Education 452/4520 Carl Perkins 471/4710 Gear Up

38. Federal Programs (15) Cash Fund E-grants Indirect Cost Rates ◦ Good budgeting tool ◦ Make application to the OPI – right now ◦ Very Simple ◦ Gives you additional options  Have small amount of money left at year end can just claim Indirect Cost and clear it out  Some grant applications require an indirect cost rate when applying

39. Federal Programs (15) Cash Fund VALID EXPENDITURES ◦ Expenditures are only allowed that fall within the purpose of the grant ◦ Must include all Benefit Costs - approximately 16% of salary ◦ Must also include Health Insurance

40. Federal Programs (15) Cash Fund COMMON CODING Fund: 115 Elementary Misc. Programs (most common) 215 High School Misc. Programs Program: 100 Local Program Codes 3XX State Program Codes 4XX Federal Program Codes Function: All Function Codes Object Codes: All Object Codes

41. Adult Education (17) Budgeted Fund MCA 20-7-705 PURPOSE: To account for all district money received in support of the district’s adult education program. Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Non-Levy Revenues  Including Student Fees ◦ +Local Levy  Permissive Levy  Can levy an unlimited number of mills

42. Adult Education (17) Budgeted Fund VALID EXPENDITURES ◦ “The instruction of persons 16 years of age or older who are not regularly enrolled, full-time pupils for the purposes of ANB computation.” ◦ Salaries for instructors ◦ Supplies necessary for instruction in the class, but not for projects taken home by the students

43. Adult Education (17) Budgeted Fund COMMON CODING Fund: 117 Elementary Adult Education 217 Adult Education Program: 600 Adult Education Programs Function: 1000 Instruction Object Codes: All Object Codes Revenue Source: 1340 Fees for Adult Education RESERVE LIMIT 35% of Adult Education Fund Budget (20-7-713, MCA) VOTER APPROVAL OF TAX LEVIES None (permissive)

44. Traffic Education (18) Cash Fund MCA 20-7-507 PURPOSE: For the accounting of traffic education activities for students who are 15 or within 6 months of turning 15 and are taught by a certified traffic education instructor Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +State Payment  Approximately $80 per student who completes the course

45. Traffic Education (18) Cash Fund Funding (cont.) ◦ District  Expenses subsidized by the general fund ◦ Local  Fees charge per student as set by the Board of Trustees  Can only charge students not enrolled in your district more if you charge tuition

46. Traffic Education (18) Cash Fund VALID EXPENDITURES ◦ Instructor Salaries ◦ Supplies: textbooks, gas, etc. ◦ Rent or purchase of a vehicle ◦ Insurance on vehicle ◦ Repairs and maintenance of driver education vehicle

47. Traffic Education (18) Cash Fund COMMON CODING Fund: 218 Traffic Education Program: 100 Regular Programs Function: 1000 Instruction Object Codes: All Object Codes Revenue Source: 1311 Driver’s Education Fees from Students 3260 State Driver Education Reimbursement

48. Lease Rental (20) Cash Fund MCA 20-9-509 PURPOSE: To account for revenues and expenditures related to lease or rental of school property. (MCA 20-7- 509) Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance)  Cannot have a year end balance of more than $10,000  Excess must be transferred back to the general fund ◦ Non Levy Revenue  Interest ◦ +Revenue from Rental Property

49. Lease Rental (20) Cash Fund VALID EXPENDITURES ◦ Utilities ◦ Repair and maintenance of property ◦ Custodial expenses related to leased area ◦ Administrative cost of owning leased property ◦ Insurance for property ◦ Acquisition of additional housing or dormitory facilities=

50. Lease Rental (20) Cash Fund COMMON CODING Fund: 120 Elementary Lease-Rental 220 High School Lease-Rental Program: 100 Regular Programs Function: 26XX Operation and Maintenance Object Codes: All Object Codes Revenue Source: 1910 Rentals

51. Compensated Absence Fund (21) Cash Fund MCA 20-9-512 PURPOSE: To finance the accumulated sick leave and vacation pay that a non-teaching or administrative school district employee is entitled to upon termination Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Annual Transfer from General Fund  Maximum of 30% of total district liability  Calculation includes  25% of Accumulated Sick Leave  100% of Accumulated Vacation Leave  X Their hourly rate  + Benefit Costs  Must have budget authority for transfer to occur

52. COMPENSATED ABSENCES AS OF EMPLOYEEHOURLYVACATIONTOTAL25% OFTOTALEMPLOYEECOMP AB NAMERATEHOURSVAC LIABSICK LEAVES/L LIABBENEFITS**LIAB 13.9437.20518.5783.401162.60253.861935.02 7.570.00 21.04159.2724.05183.32 7.570.00 8.7566.2410.0076.24 8.744.4338.7239.42344.5360.44443.69 11.010.00 60.69668.20125.89794.09 28.8595.502755.1823.91689.80543.273988.25 16.170.00 3.8562.2511.7373.98 12.880.00 8.66111.5421.01132.56 10.44101.361058.20106.351110.29408.542577.04 7.4936.73275.1137.70282.37105.03662.51 7.2831.30227.866.0343.9051.20322.96 6.100.00 7.5546.068.6854.73 9.280.444.0861.61571.74108.49684.31 TOTALS 306.964877.71468.965318.791732.1911928.69 ** CLERICAL -.0765 FICA +.068 PERS +.0015 UNEMP +.0050 WC =.151 Compensated Absences Calculation

53. Compensated Absence Fund (21) Cash Fund VALID EXPENDITURES ◦ Sick and Annual Leave pay outs for Non-teaching and administrative staff only, at termination of employment ◦ Must transfer back to the General Fund any balance over 30%

54. Compensated Absence Fund (21) Cash Fund COMMON CODING Fund:121 Elementary Compensated Absence 221 High School Compensated Absence Program:100 Regular Programs 200 Special Programs Function: All Function Codes Object Codes: 100 Personal Services – Salaries 200 Personal Services – Employee Benefits Revenue Source: 5300 Transfer between General Fund and Comp Absences Fund

55. Impact Aid (26) Cash Fund MCA 20-9-514 PURPOSE: This is federal money intended to replace the lack of tax revenue generated on land held in trust by the Federal Government. Entire law is property based, based on where the student(s) reside. Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Estimated Revenue  Annual Application based upon students who live on non-taxable land  Revenue is received approx. December

56. Impact Aid (26) Cash Fund VALID EXPENDITURES ◦ Allocation for students with disabilities must be spent on those student needs ◦ Allocation for construction must be spent on maintenance, repairs or construction of new buildings ◦ Remaining funds are spent at the discretion of the Board of Trustees

57. Impact Aid (26) Cash Fund COMMON CODING Fund: 126 Elementary Impact Aid 226 High School Impact Aid Program: All Program Codes Function: All Function Codes Object Codes: All Object Codes Revenue Source: 4820 Federal Impact Aid RESERVE LIMIT None

58. Litigation Reserve (27) Cash Fund MCA 20-9-515 PURPOSE: To pay legal settlements and court judgements ordered against the district Funding ◦ Transfer Amount  Transfer from the general fund when litigation is pending  Funds remaining after settlement/judgement must be returned to the general fund

59. Litigation Reserve (27) Cash Fund VALID EXPENDITURES ◦ Costs named in the legal settlement/judgment order

60. Litigation Reserve (27) Cash Fund COMMON CODING ◦ Fund: 127 Elementary Litigation Reserve 227 High School Litigation Reserve ◦ Program: 100 Regular Programs ◦ Function: 2500 Business Services ◦ Object Codes: 820 Judgment Against the District Revenue Source: 5300 Transfer between General Fund and Litigation Reserve Fund RESERVE LIMIT Once settlement/judgement is paid no reserve is allowed

61. Technology (28) Budgeted Fund MCA 20-9-533 PURPOSE : The purpose of this fund is to finance the purchase and maintenance of technological equipment and to provide technical training. to account for receipt of state Technology “Timber” money and other revenues and expenditures for technology equipment and computer network access

62. Technology (28) Budgeted Fund Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Non-Levy Revenues  Including Interest  Possibly Combined School Block Grant ◦ +State Technology Aid  Referred to as “timber money”  State’s appropriation is based on timber harvest in Common School trust lands when the harvest exceeds a certain threshold (MCA 17-7-502  Distributed based upon size of a district’s BASE budget as compared to the total of all districts’ BASE budgets for the previous year (MCA 20-9-534)

63. Technology (28) Budgeted Fund ◦ + Local Technology Levy  Special election based on depreciation of items  Levy amount is determined by  The original cost of technology equipment and access costs  + Purchases made during the year  - Equipment disposed of during the year  - The amount that has already been levied for each asset up to date  Once the levy is established can continue to collect it within the parameters  To Increase the levy would require another vote  Limited to 20% of the acquisition cost, not to exceed 150% over time This can also be accomplished in the Building Reserve Fund

64. Technology (28) Budgeted Fund VALID EXPENDITURES ◦ Purchase, rental, repair, maintenance, and depreciation of technological equipment, including computers and computer network access ◦ Associated technical training for school district personnel ◦ Software maintenance fees, ie: for student information and accounting systems.

65. Technology (28) Budgeted Fund COMMON CODING Fund: 128 Elementary Technology 228 High School Technology Program: All Program Codes Function: All Function Codes Object Codes: All Object Codes Revenue Source: 3281 State Technology Aid RESERVE LIMIT ◦ None VOTER APPROVAL OF TAX LEVIES ◦ Yes – can be permanent or durational

66. Flexibility Fund (29) Budgeted Fund MCA 20-9-543 PURPOSE : To account for receipt of the state Flexibility Payment (if any) and other revenues and expenditures. Trustees may use the fund, at their discretion. Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Non-Levy Revenues  Interest  Combined School Block Grant

67. Flexibility Fund (28) Budgeted Fund Funding (cont.) ◦ +State Flexibility Payment  Based on an appropriation, if any from the legislature  Distributed as follows:  40% based on the state’s five year average ANB  20% based on the previous year’s statewide average ANB  15% based on the number of schools in the state  25% based on the number of schools having more than 250 students  There has not been an appropriation since 2003 ◦ + Local Levy  Must be Voter Approved  Limited to 25% of the estimated State Flexibility Payment  When there is no State Payment, there cannot be a levy

68. Flexibility Fund (29) Budgeted Fund VALID EXPENDITURES ◦ Technology ◦ Facility Expansion ◦ Student Assessment and Evaluation ◦ Curriculum Development ◦ Training for Classroom Staff to Support the Delivery of Education Programs ◦ Classroom Teacher Housing ◦ Retention of Certified Staff ◦ Increased Energy Costs Caused by Increases Since 2001 ◦ Facility/Equipment Expansion

69. Flexibility Fund (29) Budgeted Fund COMMON CODING Fund: 129 Elementary Flexibility Fund 229 High School Flexibility Fund Program: All Program Codes Function: All Function Codes Object Codes: All Object Codes Revenue Source: 3900 State Other Revenue Reserve Limit ◦ 150% of Maximum General Fund Budget Voter Approval of Tax Levies ◦ Yes – can be permanent or durational ◦ No State Distribution – No Levy

70. Debt Service Fund (50) Budgeted Fund MCA 20-9-438 PURPOSE: To finance the paying of the principle and interest and associated fees on outstanding bonds and special improvement district (SID) assessments Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance) ◦ +Non-Levy Revenues  Interest  Combined School Block Grant  All other revenues attached to a mill levy

71. Debt Service Fund (50) Budgeted Fund Funding (cont.) ◦ +State School Facilities Reimbursement  Provides State Subsidies to eligible schools to repay bonds  District’s mill value per ANB must be less than the corresponding facility guaranteed mill value per ANB

72. Debt Service Fund (50) Budgeted Fund If eligible, 3 calculations are made School Facility Entitlement (MCA 20-9-370) K-6 ANB x $300; 7-8 ANB X $370, and 9-12 ANB X $450 State Reimbursement Payment (MCA 20-9-371) Amount of State Equalization Aid distributed to a district that: >Has a district mill value per ANB that is less than the corresponding facility guaranteed mill value per ANB >Has a debt service obligation in the ensuing school year on bonds Percentage determined by [(1-(district mill value per ANB/facility guaranteed mill value per ANB) X (the lesser of: Total school facility entitlement calculated OR the district’s current year debt service obligation)

73. Debt Service Fund (50) Budgeted Fund State Advance Payment (MCA 20-9-371) Calculated same as state reimbursement payment, adjusted, if necessary, to the state’s prorated payment of facilities reimbursement in the prior year State advance payment is paid on in the first year of the bond Advances are distributed to eligible districts, within the available appropriation

74. Building Fund (60) Cash Fund MCA 20-9-508 PURPOSE: To account for building and construction projects using bond or insurance proceeds, federal funds, or proceeds from the sale of property Funding ◦ Fund Balance re-appropriated  (Year End Cash Balance)  Insurance Proceeds can be deposited here ◦ +Non-Levy Revenues  Combined Block Grant Funds ◦ +Bond Sale Proceeds or District Property

75. Building Fund (60) Cash Fund VALID EXPENDITURES ◦ Construction ◦ Building additions, remodeling or repairs ◦ Federal money can only be spent for the express purpose of the grant

76. Building Fund (60) Cash Fund COMMON CODING Fund: 160 Elementary Building Fund 260 High School Building Fund Program: 100 Regular Program Function: 4000 Facilities Acquisition and Construction Services Object Codes: 720 Purchase of Existing Buildings 725 Major Construction Services 730 Major Equipment Revenue Source: 5110 Sale of Bonds 5200 Sale or Compensation for Loss of Assets

77. Building Reserve Fund (61) Budgeted Fund MCA 20-9-502 PURPOSE : To finance voter approved buildings or construction projects funded with district mill levies Funding ◦ Fund Balance Re-appropriated  (Year End Cash Balance)

78. Building Reserve Fund (61) Budgeted Fund Funding (cont.) ◦ +Non-Levy Revenues  All Non-Levy Revenues Attached to a Levy  Interest Earnings  Combined Fund School Block Grant ◦ +Local Levy  Trustees must adopt a resolution addressing the duration of time over which the the total amount of money will be raised, in equal, annual installments  Limited to a maximum of 20 years for building-type reserve  Limited to a maximum of 6 years for transitional-type reserve  Must be Voter Approved

79. Building Reserve Fund (61) Budgeted Fund VALID EXPENDITURES ◦ Restricted to language on the ballot. Must specify purpose for which the building reserve would be used from the list below: ◦ To raise money for the future construction, equipping, enlarging of school buildings or for purchasing land needed for school purposes. ◦ To raise money for transitional costs of opening/closing schools, replacing school buildings or consolidating/annexing.

80. Building Reserve Fund (61) Budgeted Fund Possible Building Reserve Ballot Language The approval of ____ number of dollars and approximately ____ mills to be raised over a period of _____ years in annual, equal installments for the purpose of updating, maintaining, and equipping the ______ school facilities. ____ For ____ Against

81. Building Reserve Fund (61) Budgeted Fund COMMON CODING Fund: 161 Elementary Building Reserve Fund 261 High School Building Reserve Fund Program: 100 Regular Program Function: 2600 Operation and Maintenance Services 4000 Facilities Acquisition and Construction Services Object Codes: All Object Codes RESERVE LIMIT ◦ None VOTER APPROVAL OF TAX LEVIES ◦ Yes, duration – Up to 20 Years

82. THE END THANKS FOR LEARNING WITH US