lincoln county schools coffee talk
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Lincoln County Schools Coffee Talk. April 7, 2010. Program guidelines. Coffee Talk is a moderated forum of questions and answers. All questions will be accepted in written form on the note cards provided. Program guidelines. - PowerPoint PPT PresentationTRANSCRIPT
Lincoln County Schools
Coffee Talk
April 7, 2010
Program guidelines• Coffee Talk is a moderated forum
of questions and answers.
• All questions will be accepted in written form on the note cards provided.
Program guidelines• This forum will address questions
dealing ONLY state budget impact on Lincoln County Schools.– Issues surrounding specific incidents
or items will be addressed in a separate venue by appointment only.
Program format• All districts will present
information about the state budget impact on local school district finances
• Attendants can ask general questions about the topic presented affecting ALL Lincoln County Schools
• Districts will then break out in individual sessions for presentations and questions and answers affecting your school district
Why are we here?• To make the public aware of the
current financial crisis facing the State of Missouri and ALL Lincoln County schools
• To present facts concerning the issues surrounding budgets and the economy
• To clarify current information and future budget implications
Impact of Budget Crisis
Initial state projections• State information provided in
February– Expect a 2% withholding from ALL
schools
– Elsberry $72,705– Silex $29,071– Troy $437,904– Winfield $126,334
Updated March projections
• State added two more possible options
• Reduce $65 per student• Revert to fiscal year 2006 funding levels for ALL schools
Latest FY 2010 State Withholdings
• Last week the senate voted (HB 2014) to protect hold harmless schools from the latest withholdings
• Hold Harmless is a designation based on a state calculation that guarantees that no school will get less funding on a new formula than they did on the previous formula
• This action means schools who are not Hold Harmless, which includes ALL Lincoln County Schools, will receive bigger state withholdings
WithholdingsElsberry $156,659Silex $59,874Troy $1,258,358Winfield $261,422
Current Reality for Lincoln County Schools
Schools that ARE NOT Hold Harmless spend an average of $8,364 per student.Lincoln County Schools spend…Troy $6,938Elsberry $7,268Winfield $7,464Silex $7,584
Impact of HB 2014• The average school that is NOT
Hold Harmless could lose $92 per student
• The Lincoln County Schools could lose…Troy $205 per studentElsberry $193 per studentWinfield $174 per studentSilex $155 per student
HOLD HARMLESS Schools stand to lose $0 per student
Sources of Revenue
State funding facts• State revenue is based on a
thriving economy – Income and sales taxes
• Fiscal Year 2010 (FY 10)• Net individual income tax = -13.9%• Net sales tax = - 6.6%• Net corporate income tax = - 44.2%
State funding facts• State General Revenue
(FY10) fund is down
Missouri’s Net General Revenue= - 12.7%
State funding facts
• State budget = May 14– All local decisions associated with
state funding may be delayed or anticipated due to this date
State funding facts
All four districts stand to lose a total of $1.59 million in fiscal year revenue
State funding facts• FY 2011 an expected $300-
500 million in revenue shortfall
• FY 2011 – Only $218 million available in stimulus money to fund the shortfall
Major Tax Changes That Impacted Individual Income
TaxChange Foregone
RevenueYear
Increased personal exemption
$155 million 1999
State taxation of pensions
$127 million 2007
Dependent deduction
$68 million 1998
Inheritance tax (federal law)
$160 million Phased out over four years in the
early 2000’s
Sources: Fiscal Note (HB 444), Moody 2001 Report
James R. Moody & Associates
18
Major Foregone Sales Tax To GR Due To Exemptions or
EarmarksTax Exemption Foregone
RevenuesYear
Prescription drugs $190.3 million 1980Motor vehicle sales tax
$110 million 2005 to 2009
Food $210.4 million 1997Domestic utilities $192.4 million 1980Manufacturing sales tax
$70 million 1998
Internet sales ???
James R. Moody & Associates
19
Funding reality2009-2010
Versus 2010-2011
Local funding facts• All of four districts have spent
down reserves • All four districts will have limited
ability to spend down reserves in the coming years
• All four districts have government required expenditures– Special education, professional
development, Title I, etc
Local funding facts • All four districts have experienced
a plateau or decrease in assessed value growth
• Assessed value directly impacts the amount of local dollars available for schools
• Assessed value (tax base) x tax rate = local dollars available for students
Funding follies• Gambling money
– 1986 – gambling proceeds are funneled to Missouri schools• Gambling proceeds were simply placed
in the State General Revenue• Gambling proceeds replaced original
funding, which was funneled to other state entities
• Proposition A – Proceeds used as part of foundation formula
• No gaming revenues have actually increased school funding
Questions?