1	School Finance & Budgeting October 11, 2004
2	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
3	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”
4	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
5	2. Enrollment is a primary factor in determining a schools’ spending authority Enrollment types: Actual – “headcount” taken on 3^rd Friday in September of resident students Basic – same as “Actual” Budget – same as “Actual” Weighted = Actual + Additional weightings
6	“Resident” Pupils School districts only receive spending authority for pupils that are enrolled and resident Pupils who are not residents pay tuition Pupils who open enroll out, the resident district receives spending authority but pays the receiving district tuition A district’s certified enrollment report is audited by the school district’s auditor during the annual fiscal audit
7	Certified Enrollment An annual report of all resident students enrolled on the 3^rd Friday in September used for the Iowa Finance Formula calculation.
8	Weighted Enrollment Weighted =Actual + additional pupil weighting Weightings: Special Education Supplementary: Sharing agreements Offering particular courses School district reorganization Programs for non-English speaking students
9	Special Education Weighting
10	Special Education Weighting Weighting is determined on December 1^st each year The Special Ed headcount taken on December 1, 2004 is used to calculate fiscal year 2005-06 spending authority Only resident pupils may be counted
11	3. State foundation formula is pupil driven The amount of funds a school district may generate and spend is determined by the number of pupils, or enrollment in the district multiplied by a dollar value, or cost assigned to those pupils by the state.
12	Regular Program State Cost Per Pupil Also referred to as: Cost per pupil State cost per pupil Regular program cost per pupil State foundation cost per pupil
13	State Percent of Growth = Percentage of Allowable Growth increase in the state cost per pupil Allowable Growth refers to the dollar growth in the state cost per pupil The legislature has 30 days after receiving the governor’s budget recommendation to set the state percent of growth for the following budget year
14	Regular Program State Cost Per Pupil Originally calculated by dividing the total number of pupils statewide by a statewide expenditure The amount of state aid per pupil is determined by the regular program foundation percentage = 87.5%
15	Regular Program State Cost Per Pupil In 2004-05 the State Cost per Pupil is $4741 87.5% = $4148 Note: Enrollment in current school year is used in the next year’s foundation formula
16	State Percent of Growth Allowable growth dollar amount is added to base year state cost per pupil 2004-05 percent of growth = 2% 2003-04 Cost per pupil = $4648 2% allowable growth = $4648 * .02 = $93 2004-05 Cost per pupil = $4648 + $93 = $4741 Only the state cost per pupil is used to determine the amount of state allowable growth each district receives
17	State Percent of Growth History 2000-01: 4% 2001-02: 4% 2002-03: 1% 2003-04: 2% 2004-05: 2% Note: In 2002-03, $23.49 was not funded of increase
18	When is 4% not 4%?
19	Adjustments to Allowable Growth Budget Guarantee Districts receive what they received in the prior year for the Regular Program Budget regardless of enrollment changes Davenport was in guarantee in 2002-03
20	Budget Guarantee
21	Adjustments to Allowable Growth On Time Funding Districts with increased enrollment have a way to capture growth 101% Option District’s are eligible to receive 101% of prior year’s regular program district cost Davenport is receiving the 101% option for 2004-05
22	Modified Allowable Growth Schools districts may be provided allowable growth beyond the state allowable growth – by the School Budget Review Committee (SBRC) Is stated as a dollar figure Several types: Permanent Additional Negative Special Education Balances
23	SBRC A committee established by Iowa Code chapter 257 and appointed by the Iowa Governor with the Director of the Dept of Education as the Chair, the Director of the Dept of Management as the Secretary and three lay members. This committee reviews school budgets and hears requests from school districts for modified allowable budget growth.
24	Modified Allowable Growth Permanent – not granted since 1990 Additional – unique and unusual needs Additional costs associated with extending English Language Learner’s program Open enrollment students not counted in enrollment count Negative Special Education Balances
25	Question? What’s the point of a state cost per pupil if district’s only receive 87.5% of that amount? Why not just set the per pupil cost at the reduced amount?
26	Answer: 4. School districts use its per pupil cost to determine its total spending authority
27	To be continued: Spending Authority Uniform Levy Additional Levy Unspent Balance Miscellaneous Income Instructional Support Levy Cash Reserve Levy
28	Questions?