1. Finance 101

2. School Boards = Prisoners of Information

4. 20% Don’t Really Care 20% MSTA Successful 60% = Different Degrees of Frustration

5. Teacher’s Fund Hold Harmless Debt Servic e Fund State Adequacy Target Capital Projects Fund Foundation Formula Dollar Value Modifier

7. Where Does $ for District Come From? Title 1 Special Education Property Tax Prop C Formula Money Trust Fund

8. Foundation Formula Weighted ADA X State Adequacy Target X Dollar Value Modifier - Local Effort = State Funding

9. Biggest Drivers in Formula

10. Regular Term ADA Summer School ADA Free and Reduced Price Lunch Students Weighted ADA + 25% Special Education Students Weighted ADA + 75% Limited English Proficient Students Weighted ADA + 60% Formula Payment Weighted ADA

11. State Adequacy Target

12. Hold Harmless Districts Current formula calculates the district amount as less than they received on a per pupil basis in 2005-2006 Hold harmless districts with an ADA of less than 350 are held to a constant dollar amount rather than an amount per ADA http://dese.mo.gov/files/hold-harmless-districtspdf To find a list of current Hold Harmless Districts go to:

13. Dollar Value Modifier Could be considered as a cost of living adjustment in the formula Calculated on a county basis unless the school district falls in a micropolitan or metropolitan area The range is from 1.0000 to 1.089

14. School District’s 2004-05 Property Tax + Financial Institutions Tax + In Lieu of Tax + Fines + M&M Tax + State Assessed Tax + ½ of Prop C Tax Every year, this amount stays constant except for decreases in assessed valuation and increases in fine collections = A district with high assessed valuation gets very little state money and vice versa. DESE calculates how much money you should get to educate every child and they subtract any local tax money off of that.

16. Classroom Trust Fund Made up of the taxes received on the riverboats to make money more transparent to individuals Distributed on a per pupil basis NOT an additional payment outside the formula Uses for CTF Money: Teacher recruitment, retention, salaries or professional development School construction renovations, leasing Technology enhancements, textbooks, or instructional material School safety Supplying additional funding for required programs

17. SMALL SCHOOL Annual Appropriation of $15 million Applies to school districts with ADA of 350 or less $10 million is distributed based on ADA only $5 million is distributed to districts with a levy of $3.43 or higher Add on payment but not increasing

18. Local money based on: o Tax levy approved by the voters and set by the school board o Assessed valuation of property in your school district o Real Estate o Personal Property SCHOOL BOARDS DON’T ALWAYS APPROVE THE MAXIMUM TAX LEVY AMOUNT

19. Not all school districts receive the same percentage of funding from the different funding sources Some districts rely heavily on state money Some districts rely heavily on local money When districts receive federal money, they are given strict guidelines on what and how to spend the money

21. Used for all expenditure s EXCEPT : FUND 1

22. Teacher’s Fund Salarie s Only used for: FUND 2

23. Money that was borrowed to build buildings, buy buses, etc. Only used when the public has voted to approve a specific tax levy for these purposes. FUND 3

24. Capital Projects Fund (I.E. BUILDING RENOVATIONS, SCHOOL BUSES, TECHNOLOGY UPGRADES) FUND 4

25. Fund Transfer Rules 1. District may transfer money out of Fund 1 to Fund 2 at any time. 2. District may transfer money out of Fund 1 to Fund 4 at any time (as long as it is noted in the minutes what the funds are intended for) 3.District may NOT transfer out of Funds 2, 3, or 4 except to remove remaining funds after the completion of a bond issue. Once in these funds, they are stuck!

26. Why does a district NEED a Balance? Avoid tax-anticipation borrowing (cash flow) Cover Unexpected Costs Cover Revenue Shortfalls Cover Anticipated Projects (Fund 4)

27. What is a SAFE Balance? Varies By size Of district. Larger districts might be safe with 10% of annual expenditures on hand at the end of the year. Make sure district can always meet two months expenditures Fund 4 Balances Need to be sufficient to support any long- term facility plans. Smaller districts might want a larger % of expenditures on hand. 20%-25% might be more realistic.

28. If your districts budget includes more local funding than state, your district would have a larger balance on June 30 th If your districts budget includes more state funding than local, your district will not necessarily need as large of a balance on June 30th

29. Long Range Planning  Does your district have any long-range (3-5 years) facility plan that points out future funding requirements from Fund 4?  Is your district currently deficit spending? If so, what is the plan to stop?  What would be a realistic goal for future ending balances that the school board and administration would support?  How is your district enrollment changing? Things to Think About…

30. What Makes Up Your Salary? Pay Insurance Retirement

31. Areas WE On Fund Balances Enrollment Assessed Valuation Long Range Planning  Amounts and placement  Are they increasing or decreasing?  Is it increasing or decreasing?  Is the valuation going up or tax rate changing?  Is there any plans for the use of funding?

32. Provide

33. District Financial Analysis Accurate Information OF your district IF we get accurate information FROM your district

34. Financial Highlights For Your District

35. Salary Cost Analysis Using your districts current Salary Schedule and Scattergram, we can figure this for you. What will your proposed salary increase cost the district???

36. Missouri Salary Schedule and Benefits Report – request a copy from mhenry@msta.org Salary Workshops – February and March – Will be able to register on our website: http://www.msta.org/events/salary-research-workshops/

37. Mandy Henry mhenry@msta.org Sid Doerhoff sdoerhoff@msta.org Roy Kramme rkramme@msta.org