FASD Financing a School District

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  • FASD Financing a School District

    1. 1. Financing A School District
    2. 2. <ul><li>Local Revenue </li></ul><ul><li>-Taxes levied for specific purpose </li></ul><ul><li>- Earnings on Investments </li></ul><ul><li>- Other local sources </li></ul><ul><li>State Revenue </li></ul><ul><li>- Instructional Subsidy and other subsidy </li></ul><ul><li>- Grants </li></ul><ul><li>Federal Revenue </li></ul><ul><li>- Entitlement Grants </li></ul>
    3. 3. <ul><li>Main Sources </li></ul><ul><li>Real Estate Tax </li></ul><ul><li>Earned Income Tax </li></ul><ul><li>Earnings From Investments </li></ul>
    4. 4. <ul><li>School Year </li></ul><ul><li>Average Tax Mills </li></ul><ul><li>1996 – 2003 </li></ul><ul><li>1 mill tax increase in 1996 </li></ul><ul><li>2003 – 2006 </li></ul><ul><li>Oz Oil and Gas Case – 7 mill increase </li></ul><ul><li>2006- 2007 </li></ul><ul><li> Act 1 - 6.14 mill decrease </li></ul><ul><li>2007-2008 </li></ul><ul><li>Act 1 Index – 1.12 increase </li></ul><ul><li>51.5 mills </li></ul><ul><li>58.5 mills </li></ul><ul><li>52.44 mills </li></ul><ul><li>53.56 mills </li></ul>
    5. 5. <ul><li>Oz Oil and Gas Case </li></ul><ul><li>Act 1 of 2006 </li></ul><ul><li>-PA Supreme Court Case in 2002 </li></ul><ul><li>-Ruled that oil and gas estates could not be taxed </li></ul><ul><li>-Forest Area lost an estimated equivalence of 5.12 mills of taxes </li></ul><ul><li>-Signed into law July, 2006 Governor Rendall </li></ul><ul><li>-Equalization of Taxes for </li></ul><ul><li>Multi – County Districts </li></ul><ul><li>-Elk County Reassessment </li></ul><ul><li>-Forest Area lost 6.06 mills of taxes </li></ul>
    6. 6. <ul><li>Investment History 2005-2008 </li></ul><ul><li>2005 - $5,582,675 </li></ul><ul><li>2006 - $5,093,574 </li></ul><ul><li>2007 – 3,721,648 </li></ul><ul><li>2008 – 2,981,350 </li></ul>
    7. 7. <ul><li>Forest County National Forest Land – 119,116 acres </li></ul><ul><li>-National Forest Cut – 25% of funds generated by money earned from timbering. </li></ul><ul><li>-Secure Rural Schools and Community Act of 2000 </li></ul>
    8. 8. <ul><li>State Funding Formula </li></ul><ul><li>Early 90’s to 2008 </li></ul><ul><li>State Subsidy based on district’s MV/PI and MV/AR </li></ul><ul><li>Forest Area’s ranged from .4495 in 1997 to .2629 in 2007 </li></ul>
    9. 9. <ul><li>2008-2009 Proposed State Subsidy Formula </li></ul><ul><li>Base on Costing Out Study, November, 2007 </li></ul><ul><li>Base Cost Per Student </li></ul><ul><li>Poverty Supplement </li></ul><ul><li>District Size Supplement </li></ul><ul><li>English Language Learner Supplement </li></ul><ul><li>Adjustment for geographic price differences </li></ul>
    10. 10. <ul><li>Adequacy Shortfall </li></ul><ul><li>State Funding Target and </li></ul><ul><li>2006-2007 Equalized Millage factor **** </li></ul>
    11. 11. <ul><li>-Allowed tax increases based on index </li></ul><ul><li>-Department of Education Exceptions to index </li></ul><ul><li>-Court exceptions to index </li></ul><ul><li>-Referendum </li></ul><ul><li>-Local control lost </li></ul>
    12. 12. <ul><li>Preliminary Budget (Board Approved 1-16-08) </li></ul><ul><li>Revenue - $12,440,358 </li></ul><ul><li>_ estimated ending fund balance -$1,750,000 </li></ul><ul><li>5.2% allowed index tax increase </li></ul><ul><li>PDE exception – tax increase - $41,184 </li></ul><ul><li>Court exception or referendum tax increase - $316,143 </li></ul><ul><li>Secure Rural Schools - $750,000 </li></ul><ul><li>Expenditures - $11,743,352 </li></ul><ul><li>Expenditures over revenue - $1,052,994 </li></ul><ul><li>Left an ending fund balance of $697,006 </li></ul>
    13. 13. <ul><li>Revenue - $11,248,558 </li></ul><ul><li>State Subsidy Proposed Increase – 1.5% </li></ul><ul><li>National Forest Cut – 25% of timber cut </li></ul><ul><li>Ending fund balance based on current revenue and projected expenses - $1,504,592 </li></ul><ul><li>5.2% Index Tax Increase </li></ul><ul><li>PDE Exception Tax Increase of $41,184 </li></ul><ul><li>Expenses – based on proposed cuts to date </li></ul><ul><li>-$10,905,017 </li></ul><ul><li>Ending fund balance - $343,541 </li></ul><ul><li>Overspending Revenue (not including ending fund balance) - $1,161,015 </li></ul>
    14. 14. <ul><li>Loss of Revenue </li></ul><ul><li>Enrollment Decreases </li></ul><ul><li>Average Revenue Increase over last 5 years – less than 1% </li></ul><ul><li>Average Expenditure Increases over last 5 years – 5.2% </li></ul><ul><li>Increase Costs - Benefits, Legal, Transportation, Special Education, Charter/Cyber School, </li></ul>
    15. 15. <ul><li>State Revenues – Call or Write - Increase state subsidy </li></ul><ul><li>Representative Kathy Rapp </li></ul><ul><li>404 Market Street </li></ul><ul><li>Warren, PA 16365 </li></ul><ul><li>814-723-5203 </li></ul><ul><li>Senator Mary Jo White </li></ul><ul><li>1140 Liberty Street, Suite 1 </li></ul><ul><li>Franklin, PA 16323-1322 </li></ul><ul><li>814-432-4345 </li></ul><ul><li>Federal Revenues – Call or Write – Reauthorize Safe and Secure Rural Schools </li></ul><ul><li>Representative Peterson </li></ul><ul><li>127 West Spring Street, Suite C Titusville, PA 16354 Phone: 814-827-3985 </li></ul><ul><li>Senator Robert Casey , Jr. </li></ul><ul><li>17 South Park Row, Suite B-150 Erie, PA 16501 Phone: (814) 874-5080 </li></ul>
    16. 16. <ul><li>Forest County – additional 4.35 mills (8.2% increase) </li></ul><ul><li>Venango County – additional .74 mills (8.36% increase) </li></ul>
    17. 17. <ul><li>NOW </li></ul><ul><li>Increases with referendum </li></ul><ul><li>Elk County – 29.3 mills </li></ul><ul><li>Forest County – 53.6 mills </li></ul><ul><li>Venango County – 8.19 mills </li></ul><ul><li>Elk County – 30.60 mills – average increase of $26.00 </li></ul><ul><li>Forest County – 61.7 mills - average increase of $90.00 </li></ul><ul><li>Venango County – 9.86 mills – average increase of 121.00 </li></ul>
    18. 18. <ul><li>Looking into additional sources of revenue </li></ul><ul><li>Cutting expenses </li></ul><ul><li>Requested PDE to send a Financial Administrative Team </li></ul>

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