where’s the innovation in the school foundation formula? marsha tangen, davenport chief financial...
TRANSCRIPT
Where’s the Innovation in the School Foundation
Formula?
Marsha Tangen, Davenport Chief Financial Officer
Shawn Synder, LSA Division AdministratorJackie Black, IASB Education Finance DirectorGalen Howsare, IASB Chief Financial Officer
July 20, 2011
History/Conversations/Changes Finance Formula History
LSA highlights from 1971-2010
Legislative Resolutions Committee Discussions initiated June 2011
Possible Proposed Changes Looking forward to legislative priorities
How Did We Get Here?
Regular Program District Cost
District Cost Per Pupil – FY 2012 $6,058 – Highest (8 Districts) $5,883 – Lowest (175 Districts) $175 – Range (3.0% difference)
District cost per pupil increases each year by a per pupil amount (allowable growth per pupil)Minimum district cost per pupil=State cost per pupilNote: this is not the case for the State categorical supplement per pupil amounts
Allowable GrowthHistory
Allowable Growth History
Instructional Support Program
Established beginning with the 1991-92 school year
The maximum amount may be ten percent of the regular program cost
Board may adopt for up to 5 years/election held for up to 10 years
Funding by property tax/income surtax plus state aid
Miscellaneous Income – any general fund purpose In Fiscal 2011 – 341 districts participating
Instructional Support Program
Underfunding history/issues
Spending authority
Property Tax Reform Proposal
2011 Legislative ProposalsHSB 240 Property Tax Omnibus Bill HF 697 Omnibus Appropriations BillH 1752 to SF 533 Senate Amendment
Property Tax Reform
Budget Adjustment (Guarantee)
Phase-out began in FY 2005 Scale Down Adjustment –will phase out
by FY 2014 101.0% Adjustment (will remain in
place after phase-out) A factor of enrollment changes and
allowable growth rate
Budget Adjustment FY 2012 Total B.A. $47.715 million (270
districts) Scale Down (20% based on FY 2004
total regular program budget) -$1.117 million (21 districts)
101.0% Adjustment (101% Based on previous year without adjustment - $46.598 million (249 districts)
Budget Adjustment
Finance Formula Areas Other areas of consideration
Adjust Weightings Dropout Prevention Property Tax Relief/Property Tax Equalization Cash reserve levy change 25% to 20% limit Preschool funding Transportation funding
Future direction of discussions
Questions/Discussion
Interested in your feedback