1	School Finance & Budgeting Davenport Community Schools
2	Background Dillion’s rule: School district only have those powers expressly authorized by the Code of Iowa Vs. Home rule: Cities and counties can do anything not expressly prohibited Code of Iowa: Composite of all laws passed by the Iowa General Assembly
3	Iowa School Finance Principles State foundation formula only pertains to General Fund Enrollment is a primary factor in determining a schools’ spending authority State foundation formula is pupil driven State foundation formula calculates spending authority and how it is funded School districts are authorized to levy taxes in addition to general fund
4	Iowa State Foundation Formula School districts are funded through a mechanism called the Iowa State Foundation Formula Also known as: “State Foundation Formula” “School Finance Formula” “School Aid Formula”
5	1. Iowa State Foundation Formula It is used to calculate a school district’s General Fund budget which primarily supports the educational programs of the district Calculation is detailed in the Aid & Levy worksheet (State Aid & Tax Levy) The School Foundation Formula relies on two sources of revenue: State General Fund appropriations Locally raised property taxes
6	General Fund Moneys received by a school district from taxes and other sources must be accounted for in the general fund. This is the only fund that receives state moneys in the form of state foundation aid.
7	Other District Funds Management Fund – property tax PPEL (Physical Plant & Equipment Levy)– property tax Activity – student fees Capital projects – special Debt service – special Food & Nutrition – meals prices + state/fed funding Child Care – fees LOSS (Local Option Sales & Services Tax) – sales tax
8	1. Iowa State Foundation Formula The foundation formula determines how each district’s budget is calculated as well as the maximum amount of its budget. The foundation formula sets a ceiling for each district’s spending authority and tells the district how to fund its spending authority. The foundation formula determines the maximum amount a school district can spend.
9	Iowa State Foundation Formula State oversight of school district finances by: Dept of Management Reviews all budget Has legal authority to make adjustments Certifies property tax levies Determines amount of state aid Dept of Education Oversees every aspect of school districts School Budget Review Committee Authorized to oversee budget and financial needs of Iowa’s school districts
10	Spending Authority vs. Budget Spending Authority Is the amount a district can spend Budget The document prepared by each school district which includes the calculation of the district’s total spending authority
11	Certified Budget Annually a school district: Calculates total spending authority Itemizes its revenues and expenditures States its funding method The result of this process is the Certified Budget – which must be filed with the county auditor no later than April 15 each year