Lincoln-Woodstock Cooperative School District

Public ForumRegarding the School Funding Formula

October 29, 2013

Lincoln

WoodstockLin

coln-Woodsto

ck Cooperative

School Dist

rict

Independent School Districts Cooperative School District (also known as Pre-existing districts)

Lincoln-Woodstock Cooperative School District

Articles of Agreement

IV. RESOLVED: That the District ratify, adopt, approve, and confirm the following formula for the apportionment of all capital outlay costs and all operational costs among the pre-existing School District’s under the provisions of RSA 195:7 (III) which formula was offered by the Cooperative School Board, adopted by the District at its Organizational Meeting and has been approved by the State Board of Education:

Sixty per cent (60%) of all capital outlay costs and all operational costs to the pre-existing Lincoln School District.

Forty per cent (40%) of all capital outlay costs and all operational costs to the pre-existing Woodstock School District.

Adopted: November 29, 1962 Amendment:

That the district amend its current formula for capital and operating expenses such that the total sum of operating and capital expenses of the Lincoln-Woodstock Cooperative School District payable in the ensuing fiscal year shall be apportioned among the two member school districts on the basis of the following ratio. Fifty per cent (50%) on the average daily membership of the pupils attending Lin-Wood Public Schools residing in each member district during the second preceding year as determined by the State Department of Education and Fifty percent (50%) on the equalized valuation as most currently available as determined by

the State Tax Commission. Adopted: June 23, 1988

What is the School Funding Formula?

• The School Funding Formula determines how much each town contributes in tax dollars towards the operating budget of the cooperative school district.

• Local taxpayer dollars are the largest source of funding for the school district budget.

Process for 5-Year Funding Formula Review

1. The School Board (SB) forms a Funding Formula Review Committee every five years to review the District’s funding formula.

2. Funding Formula Review Committee (FFRC) is made up of one Selectman from each community, one School Board member from each community, one at large member from each community and one non-resident member. Non-voting advisors are the School Business Administrator and the Superintendent.

3. Upon the completion of the review the FFRC votes on a recommendation to the School Board.

4. The School Board reviews and either sustains the recommendation if no changes are recommended or votes and places it on the School District Annual Meeting.

5. The communities vote at the District Meeting. This is a majority vote per RSA 195:7.

6. Finally, before any changes can be made the NH Department of Education has to approve of the changes. If the NHDOE feels that changes will substantially harm the educational program, they cannot approve the changes

Reference RSA 195:7, RSA 195:8

What is the Current School Funding Formula?

Fifty per cent (50%) on the average daily membership of the pupils attending Lin-Wood Public Schools residing in each member district during the second preceding year as determined by the State Department of Education and Fifty per cent (50%) on the equalized valuation as most currently available as determined by the State Tax Commission. Adopted June 23, 1988

What is the Current School Funding Formula?

• ADM = Average Daily Membership or the # of Students enrolled from each town. Based on figures reported to the State Dept of Education.

• Equalized Valuation = The "fair market value" of regular property plus an adjusted value for current use land. (source: NH Dept of Education)

Application of Current Funding Formula

2012-13 School District Budget = $6,428,269

Represents the total amount of $ that the school district needs from the 2 towns after adjusting for other revenue sources (i.e. federal grants, state aid…)

Source of Revenues for School Budget

2009-10 2010-11 2011-12 2012-13 -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Lincoln-Woodstock Cooperative School DistrictBreakdown of Revenues

Federal Revenue

State Revenue

State Tax (Raised Locally):

Local Revenue

Fiscal Year

$ R

even

ues

Application of Current Funding Formula

ADM (2010-11)Lincoln = 170.35 or 48.8% of total student

populationWoodstock = 178.87 or 51.2% of total student

population

Application of Current Funding Formula

Equalized Valuation (2010)Lincoln = $783,927,460 or 75.8% of the total

Equalized Valuation between the 2 towns.Woodstock = $250,586,883 or 24.2% of the total

Equalized Valuation between the 2 towns.

Application of Current Funding Formula

50% ADM & 50% Equalized ValuationLincoln 48.8% ADM + 75.8% Eq Val divided by 2

= 62.3% of budget paid by Lincoln

Woodstock 51.2% ADM + 24.2% Eq Val divided by 2 = 37.7% of budget paid by Woodstock

Lincoln $6,428,269 x 62.3% = $3,996,378Woodstock $6,428,269 x 37.7% = $2,431,891

Historical Data – ADM

1989

-90

90-9

1

91-9

2

92-9

3

93-9

4

94-9

5

95-9

6

96-9

7

97-9

8

98-9

9

99-0

0

00-0

1

01-0

2

02-0

3

03-0

4

04-0

5

05-0

6

06-0

7

07-0

8

08-0

90.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

ADM % Breakdown 1990-2013

Woodstock ADM Lincoln ADM

Year

AD

M %

Last 5 Years ADM Counts

School Year 2009-10 2010-11 2011-12 2012-13 2013-14*

Lincoln 167.79 170.35 165.23 155.31 159

Woodstock 193.05 178.87 169.17 175.07 178

Total 360.84 349.22 334.40 330.38 337

*Figures represent beginning of year counts reported to NHDOE.

Historical Data – Equalized Property Valuation

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Equalized Valuation % Breakdown

Woodstock Lincoln

Year

Eq

. V

al.

%

Historical Data – Formula % Breakdown

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-140.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Combined Percent (%) Breakdown

WoodstockLincoln

Proposed Formula

Town of Lincoln pays 65% of the School District Budget, Town of Woodstock pays 35% of the School District Budget.

Town of Lincoln Town of Woodstock0%

20%

40%

60%

80%

% of School District Budget

Application of Proposed Funding Formula

65% Town of Lincoln, 35% Town of Woodstock

Lincoln $6,428,269 x 65% = $4,178,375Woodstock $6,428,269 x 35% = $2,249,894

Lincoln Tax Rate would increase by approx. 23 cents per $1,000 for school portion.

Woodstock Tax Rate would decrease by approx. 75 cents per $1,000 for school portion.

Impact on Individual Taxpayer

• Lincoln Tax Rate would increase by approx. 23 cents per $1,000 for school portion. Current School Tax Rate portion in Lincoln = $5.32

• Woodstock Tax Rate would decrease by approx. 75 cents per $1,000 for school portion. Current School Tax Rate portion in Woodstock = $8.86

Impact on Each Town

• Town of Lincoln would pay approximately $181,000 more to the school district budget. Adjusted to most recent annual payment would bring total to $4,177,378.

• Town of Woodstock would pay approximately $181,000 less to the school district. Adjusted to most recent annual payment would bring total to $2,250,891.

Questions?