budget discussion fy2014 march 5, 2013 white pine county school district

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BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

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Page 1: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

BUDGET DISCUSSIONFY2014

MARCH 5, 2013

White Pine County School District

Page 2: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Goal of Today’s Presentation

Provide a preliminary and broad overviewProvide timeline for budget and staffing decisionsProvide information about state, federal and local

revenueProvide information about WPCSD General Fund

expenditure assumptions and informationProvide information about WPCSD fund balancesFactors that influence expendituresConclusion

Page 3: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Budget Dates & Information

2/15 Department of Taxation issues preliminary revenue projections 3/15 Dept. of Taxation provides final revenue projections 3/25 Dept. of Taxation provides final abated revenue projections for property taxes 4/15 File Tentative Budget (NRS 354.596) 4/25 Final estimate of net proceeds of minerals provided to Dept. of Education 5/1 District’s must notify teachers of employment (NRS 391.3196) 5/15 Mandatory Tentative Budget Public Hearing (3rd Wednesday in May)

(NRS 354.596) 5/31 Department of Education notifies school district of per pupil basic

support based on updated revenue from Taxation. 6/2 End of regular Legislative Session 6/8 Adopt Final Budget (NRS 354.598) 8/1 School districts notified of final adjustment to projected minimum textbook

expenditure requirements based on projected enrollment (NRS 387.206(2)) 8/25 Final adjustments incorporated into prior year-end DSA adjustments 9/17 Official Enrollment for funding purposes (NRS 387.1233 – last day of

the first school month) 10/31 Audit Report is Final – prior year fund balance is official (NRS 354.624(2)) 1/1 School districts are required to amend their “final budget” on or before

1/1 (NRS 354.598005(9)

Page 4: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Sources of Funding

Federal Sources Primarily Grants or restricted funds Secure Rural Schools (unrestricted) not included in FY2014

State Sources Categorical funding (restricted) Special appropriations or grants (restricted) General Fund (unrestricted)

Local Sources General Fund Taxes: Property taxes, sales taxes, govt services tax (aka motor

vehicle registration) Debt Services Fund: Property taxes, interest, bond & debt proceeds Capital Funds: Interest earnings, sales taxes Other (indirect costs, tuition, etc)

Outside Allocations Private grants, donations, scholarships

Fund Balance Not considered revenue and should not be used to fund ongoing expenditures.

Page 5: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

FY2013 General Fund Budget(aka operating fund)

Inc/(Dec) Inc/-Dec

Description Budget Projected $ Diff % Diff

Revenue 11,614,192 12,591,502 977,310 8.41%

Expenditures (Excluding Fund Balances) 13,301,460 12,825,786 (475,674) -3.58%

Operating Deficit (1,687,268) (234,284) 1,452,984 -86.11%

Unrestricted Fund Balance (audited) 2,181,702 2,181,702 - 0.00%

Estimated Ending Fund Balance FY2013 494,434 1,947,418 1,452,984 293.87%

Projected revenue may decrease after Nevada Department of Education adjusts state revenue (or DSA) for actual final revenue.

Page 6: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

FY2014 Current Estimate

Description Preliminary

Revenue 12,393,520

Expenditures (Excluding Fund Balances) 13,195,980

Operating Deficit (802,460)

Unrestricted Fund Balance (Estimated) 1,947,418

Estimated Ending Fund Balance FY2014 1,144,958

Projected revenue may decrease after Nevada Department of Education adjusts state revenue (or DSA) for actual final revenue.

Page 7: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

General Fund Revenue Projections

WPCSD uses projections provided by the Nevada Department of Taxation and Department of Education 98% of Total GF Revenue

WPCSD does not alter or change these projections

Projections for miscellaneous and federal revenue provided by the District

Page 8: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

White Pine County School District P. J ohnson

REVENUE REPORT - FY2014 3/5/2013 11:34

Estimat as of 3/5/2013ENROLLMENT Weighted Total Description

1 FY2009 Weighted Enrollment 1385.4 FY2011

2 FY2011 Weighted Enrollment 1353.2 FY2012

3 FY2012 Weighted Enrollment 1382.6 FY2013

4 TOTAL ENROLLMENT (Add lines 1 through 6) 1382.6 1196.6 FY2014

5

6 BASIC SUPPORT PER - FY2013 (Estimate) $6,648 Provided by DOE

7 TOTAL BASIC SUPPORT (line 8 x Line 10) 9,191,525

8 ASSESSED VALUATION

9 REAL & UNSECURED PROPERTY $389,478,251 Provided by DOE & DOT

10 NET PROCEEDS OF MINES $219,413,553 Provided by DOE & DOT

11 TOTAL ASSESSED VALUATION (line 9 + line 10) $608,891,804 Provided by DOE & DOT

12 Charter School Enrollment (46+140=186) (483,264) Est. by WPCSD. Actual by DOE.

13 DSA Adjustment (1/3 * .0075 * Line 11) (1,522,230) Calc per NRS 387.1235

14 LSST Adjustment (Line 21) (3,302,455) Calc per NRS 387.1235

1516 STATE APPORTIONMENT (subtract lines 12 - 14 from line 7) $3,883,577 0.42 % of Basic Support

17

1819 LOCAL REVENUES20 AD VALOREM (excluding net proceeds) $2,921,087 Provided by DOE & DOT

21 LSST (2.25% or 2.6%) $3,302,455 Provided by DOE & DOT

22 GOVERNMENTAL SERVICES (Department of Taxation) $547,800 Provided by DOE & DOT

23 TUITION (NVHS) $024 TUITION (OUT-OF-STATE) $18,000 Provided by District

25 NET PROCEEDS (Estimated) $1,645,602 Provided by DOE & DOT

26 Deferred Net Proceeds $027 OTHER LOCAL (Indirect Costs) $75,000 Provided by District

2829 TOTAL LOCAL REVENUES (add lines 19 through 27) $8,509,944303940 FEDERAL REVENUE41 FOREST & WILDLIFE $042 Secure Rural Schools $0 Funding has not been rauthorized

43 as of 4/2/2012

44 TOTAL FEDERAL REVENUE (add lines 41 & 42) $04546 TOTAL GENERAL FUND REVENUE (Add lines 15, 29, 44) -4.6152% $12,393,5204748 REVENUE FOR FY2013 (Projected) -1.5975% $12,591,502 ($197,982)

49 EXPENDITURES FOR FY2013 (Projected) -4.8385% $12,993,186 ($599,666)

50

Note: State funding may not be available until after the final budget is developed.

Page 9: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Charter Schools

NRS 387.124  Apportionments to school districts, charter schools.... 2.  Except as otherwise provided in subsection 3 and NRS 387.1244, the

apportionment to a charter school,..., is equal to the sum of the basic support per pupil in the county in which the pupil resides plus the amount of local funds available per pupil pursuant to NRS 387.1235.... (a.k.a. outside revenue)

WP Per Pupil Amount $6,648 2/3 of the property taxes Government Services Tax

Charter School Local Revenue - Outside Revenue2/3 Property Taxes $1,947,391.262/3 Net Proceeds $1,097,067.77Govt. Services Tax $547,800

Total Outside Revenue $3,592,259

Divided by Student Enrollment 1382.6

Charter School Per Pupil Amount $2,598.19

Page 10: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Estimated Charter School Enrollment

Beacon Academy 5Nevada Connections Academy 13Nevada Virtual Academy 4Renaissance Charter School 24Learning Bridge 140Total Charter School Enrollment 186

Page 11: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

General Fund Worksheet

Sample of GF revenue as it appears in our accounting system

                    Final      FY2013 Projected Projected

Account Number Description Budget FY2013 FY2014                                                 

SOURCES             

100 000 1110 000 0000 000 00000 00 000 Ad Valorem Taxes (1,932,735.00)

(1,932,735.00)

(2,190,815.00)

100 000 1111 000 0000 000 00000 00 000 Net Proceeds from Minerals Adjustment (781,978.00) (1,485,758.00)

(1,645,602.00)

100 000 1112 000 0000 000 00000 00 000 Ad Valorem-Gas and Oil Leases (10,000.00) (10,000.00) - 100 000 1113 000 0000 000 00000 00 000 Ad Valorem-Personal Property (644,244.00) (644,244.00) (730,272.00)

100 000 1120 000 0000 000 00000 00 000 LSST (Local School Support Tax) (3,225,955.00)

(3,225,955.00)

(3,302,455.00)

100 000 1192 000 0000 000 00000 00 000 Basic Gen Govn't Services Tax (Motor Veh Priv Tx) (546,255.00) (546,255.00) (547,800.00)100 000 1310 000 0000 000 00000 00 000 Tuition From Individuals - - - 100 000 1331 000 0000 000 00000 00 000 Tuition From School Districts Outside the State (18,000.00) (18,000.00) (18,000.00)100 000 1800 000 0000 000 00000 00 000 UNDEFINED - - - 100 000 1990 000 0000 000 00000 00 000 Miscellaneous (75,000.00) (75,000.00) (75,000.00)

100 000 3110 000 0000 000 00000 00 000 DSA Basic Support per Student-Nevada Plan (4,308,756.00)

(4,583,555.00)

(3,883,577.00)

100 000 4200 000 0000 000 00000 00 000 Unrestricted Grants-in-Aid From the Fed Thru State (70,500.00) (70,000.00) - 100 000 4703 000 0000 000 00000 00 000 E-Rate Funds (769.00) - -     - -     - -     - -

      -     - -               

  TOTAL SOURCES (11,614,192.00)

(12,591,502.00)

(12,393,521.00)

                         

Page 12: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

General Fund Operations

FY2013 FY2013 FY2014Description Budget Projected Estimate

Revenue 11,614,192$ 12,591,502$ 12,393,521$

General Fund Expenditures 13,301,460$ 12,825,786$ 13,195,980$ (Excluding fund balance exp)

Operating Surplus/(Deficit) (1,687,268)$ (234,284)$ (802,459)$

Opening Fund Balance 2,181,702$ 2,181,702$ 1,947,418$

Ending Fund Balance (Est) 494,434$ 1,947,418$ 1,144,959$

The ending fund balance can temporarily cover an operating deficit but is not a long-term solution. At some point the District will either have to realize additional revenue to cover the operating deficit or reduce expenditures to balance.

Page 13: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Preliminary Inflation Factors

Group Insurance: 10% (Note: Current Loss Ratio 95%, Admin Fee 15%, inflation 15% = 125%)

Other Insurance: 10%Wages: 0%PERS: 2%Worker’s Comp: 2% (meeting 3/5/2013 rate increase of 5% expected)

Utilities: 3% - 5%Gas/Fuel: 10%Remaining line items will be based on the

FY2013 budget or FY2013 projection.

Page 14: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

FY2012 Audited Fund Balance

Fund balances: General Fund Special

Education

Federal Special

Revenue Fund Debt Service

Fund

Other Governmental

Funds

Total Governmental

Funds Nonspendable: Prepaids 6,414$ 4,854$ 100$ -$ -$ 11,368$ Restricted for: Debt service 1,819,643$ 1,819,643$ Capital projects 793,680$ 793,680$ Stabilization 796,814$ 796,814$ Other purposes 599$ 136,302$ 136,901$ Assigned to: -$ Other post employment benefits (OPEB) 152,400$ 152,400$ Unassigned 2,181,702$ (4,854)$ (100)$ 2,176,748$ Total fund balances 3,137,330$ -$ 599$ 1,819,643$ 929,982$ 5,887,554$ Refer to page 48 of WPCSD Annual Report - FY2012

Note 1: Reserve for OPEB should have been $816,949

Note 2: Stabilization Fund is restricted by NRS 354.6115

Page 15: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

General Fund Ending Balances

Page 16: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

FY2012 Budget & Fund Balance

Governor took hardline stance on no new taxesTaxes were expected to sunsetNet proceeds of minerals to revert to prior

collection method that would have resulted in $0.00 NPM for FY2012.

Operating Deficit estimated at $1.9 millionFY2012 expenditures reduced to hedge for

FY2012-13 Nevada fiscal cliffBudget adopted before June 8, 2011Supreme court ruling May 26, 2011State education budget approved after final

budget adopted.

Page 17: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Future items that influence budget

Actual inflationState Legislative Decisions

Can affect revenues and expenditure

Federal Legislative Decisions Sequester

Student enrollment General Fund, Special Education, English Language Learners, Charter schools

Audit Report Adjusting entries, fund balance, actual revenue, actual expenditures

Weather Labor, utilities, fuel

Local Economic Development Mining activity, net proceeds of minerals…

Other Factors

Page 18: BUDGET DISCUSSION FY2014 MARCH 5, 2013 White Pine County School District

Conclusion

The District has sufficient fund reserves to operate without cutting expenditures over the next biennium (FY2014 & 15) providing State revenue does not decrease.

The District should avoid using its fund balance to finance ongoing expenditures since the fund balance is a finite resource.

Budgets by definition are estimates of costs associated with future purchases and economic events. The assumptions and information contained within this presentation are likely to change and may change

significantly. The information contained within should be used for discussion only as a means to frame future budget discussions and decisions.