1	School Finance & Budgeting November 8, 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	4. School districts use its per pupil cost to determine its total spending authority The calculations are: Total Spending Authority equals Combined District Cost plus Miscellaneous Income plus Unspent Balance Combined District Cost equals Uniform Levy plus State Foundation Aid plus Additional Levy
4	Spending Authority Determines the maximum amount of a school district’s budget State Foundation Formula Generates spending authority Provides funding of spending authority
5	Generation of Spending Authority Review: To date discussion of generation of spending authority Through the foundation formula the ceiling is set Enrollment is primary factor Resident students + weightings Certified enrollment x state cost per pupil Adjustments only through SBRC
6	Funding of Spending Authority Combined District Cost is: Major funding mechanism for a school district Funded by: Uniform Levy State Foundation Aid Additional Levy
7	Uniform Levy A property tax levied equally against the taxable property in all of the school districts in the state of Iowa Stated in terms of a dollar amount per $1000 of assessed valuation The uniform levy is $5.40 per $1000 of assessed valuation Assessed valuation is value given to property by the county or city assessor
8	Uniform Levy In Davenport: Assessed valuation = $3,132,694,334 Uniform Levy = ($3,132,694,334/$1000) X $5.40 = $16,916,549.40
9	State Foundation Aid Is used to assist in equalizing funding as well as reducing property tax The state money funding the difference between the uniform levy per pupil in each school district and the foundation percentage, 87.5% of the state cost per pupil
10	State Foundation Aid (State Cost Per Pupil x 87.5% x District Weighted Enrollment) – Uniform Levy ($4148 x 19,575.342) - $16,916,549.40 = $64,281,969.12
11	State Foundation Aid Another way to view: Foundation % = $4148 Uniform Levy = $864.18 per pupil Difference = $3283.82 per pupil X weighted enrollment of 19,575.342 = $64,281,969
12	Additional Property Tax Levy To fully fund the district cost per pupil, the school district must levy additional property tax
13	Additional Property Tax Levy Cost per pupil = $4741 Uniform Levy + State Foundation Aid = $4148 per pupil Additional Levy = $593 per pupil In Davenport: $593 x 19,575.342 = $11,608,178
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15	Assessed Valuation
16	Summary The Combined District Cost is funded by: Uniform Levy ($5.40 per $1000 of assessed valuation) State Foundation Aid (Equalizes funding to 87.5% of per pupil cost) Additional Levy (brings funding to 100% of per pupil cost)
17	4. School districts use its per pupil cost to determine its total spending authority The calculations are: Total Spending Authority equals Combined District Cost plus Miscellaneous Income plus Unspent Balance Combined District Cost equals Uniform Levy plus State Foundation Aid plus Additional Levy
18	Questions?