SCHOOL FINANCE TOPICS
Presented By:
Roger Dorson ~ Coordinator, School Financial and Administrative
Services
Jennifer Jordan ~ Director, School Finance
March 2013
Missouri Department
of Elementary and Secondary Education
Topics
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Budget Projections
Legislative Update
Local Effort
Non-Certificated Educators
Minimum Salary
Additional days and State Aid
Annual Secretary of the Board Report (ASBR)
Dollar Value Modifier (DVM)

Preliminary FY14 DVM available at
http://dese.mo.gov/divadm/finance/
Basic Formula
Local Effort
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Decrease in assessed valuation below 2004
valuation
Increase in Fines above 2004-05 revenue
2012-2013 Budget Estimates
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Prop C estimate - $854 per prior year WADA
2013-2014 Budget Estimates – Proposition C
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Prop C - $879 per prior year WADA
From the February School Finance Memo:
The decrease in regular summer school that was experienced in 2010 has
held steady. With statewide ADA basically holding constant and the
assumption that summer school will do the same, it is predicted that
Proposition C Payment WADA will be in the vicinity of 902,000 in FY14.
This number is slightly above the Prop C payment WADA for the current
year due to the closing of some charter schools which reduced WADA
calculation for one year. If the Revenue Estimate of $793,100,000 is
achieved, it would mean a WADA payment of approximately $879. To
achieve this level of revenue it would require an approximate growth rate
of 3.2% above the Consensus Revenue Estimate of $768,800,000 that is
now projected for FY13. While it appears this level of collection is
achievable, caution should be used as determination of budget estimates
are made.
2013-2014 Budget Estimates – Classroom Trust Fund
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Classroom Trust Fund - $459 per prior year ADA
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The Classroom Trust Fund is one of the funding sources of the Basic
Formula and, like other funding areas, we will not know exactly the
funding level until the appropriation process concludes. Please
remember that this calculation is done to determine the proper
placement of funds in accordance with statute.
2013-2014 Budget Estimates – Classroom Trust Fund
As a reminder, Senate Bill 291 passed in the 2009
legislative session includes the following provision
in Section 163.043.5:
 For
the 2010-2011 school year and for each
subsequent year, all proceeds a school district
receives from the classroom trust fund in excess of
the amount the district received from the classroom
trust fund in the 2009-2010 school year shall be
placed to the credit of the district's teachers' and
incidental funds.
Legislation
Legislative Updates
Bill Back Procedures (Local Tax Effort)
Section 167.126, RSMo, requires a school district
providing education services to a student who
resides in another district but was placed in the
district by the Department of Mental Health,
Department of Social Services or a court of
competent jurisdiction to bill the district of
domicile an amount equal to the average sum
produced per child by the local tax effort of the
district of domicile.
Bill Back Procedures (Local Tax Effort)
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Calculated using the Annual Secretary of the
Board Report (ASBR) and Core Data for the
previous fiscal year.
Computed by adding the prior year tax revenue
the district of domicile received from property
taxes, Intangible (Financial Institution) Taxes,
M & M Taxes, In Lieu of Taxes and State
Assessed Railroad and Utility Taxes, then
dividing that sum by the prior year resident
Average Daily Attendance (ADA) of the district
of domicile.
Bill Back Procedures (Local Tax Effort)
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The educating school district will bill the domicile district
by dividing the domicile district’s tax effort by the
educating district’s days in session and then multiplying by
the number of days a student attended.
(Domicile district’s tax effort per ADA / Days in Session) x Days Attended
Bill Back Procedures (Local Tax Effort)
The local tax effort per ADA is available on the
Missouri Comprehensive Data System (MCDS) portal at
http://mcds.dese.mo.gov/Pages/default.aspx
Once on this website select Quick Facts, then District and
School Information and then Local Effort
Minimum Salary Requirements
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Beginning Teacher – Minimum Salary $25,000
Master’s Degree with 10 years experience
$33,000
Minimum Salary Requirements
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Substitute teachers filling a regular classroom teacher’s
position as the teacher of record for the class must be paid
the minimum salary
All teachers are to receive at least their full-time
equivalent proration of the applicable minimum salary
Minimum salary requirements include study hall teachers,
in school suspension teachers and all others for whom the
students’ hours are included in the average daily
attendance calculation for state aid
Minimum Salary Requirements
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Section 163.021.3, RSMo, specifies that the
penalty for noncompliance with Section
163.172, RSMo, is the reduction of the Basic
Formula to the 1993-94 amount.
Non-certificated Educators
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Attendance Hours for any educators without a valid
certificate will be disallowed for state aid payment
purposes.
A substitute certificate meets the requirement of a
certificate when the employee is functioning as a
substitute teacher in the absence of the teacher of record
or is employed as the teacher of record.
A report is available which will identify educators within
the district that do not have a valid certificate on file with
DESE.
Non-certificated Educators
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This report can be accessed in either of the following ways:
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Through Data Collections select Reports, select Special Reports,
select Staff Assignment Report. Under Special Reports select No
Certification – Teacher, scroll down and select Selected
Assignments Only and then Run Report.
Log into web applications and select Educator Qualifications
under the Cross Divisional heading, then select report menu,
then select Staff Assignment Report. When the report selection
options are available select No Certification – Teachers under
the Special Report Heading and select Selected Assignments
Only at the top of the selection criteria and then select run
report.
Non-certificated Educators
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At the end of the 2012-2013 year, DESE will prepare a list
of educators meeting the following criteria:
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Did not hold a valid Missouri educator certificate at any point in
time between July 1, 2012 and July 1, 2013; or
Has a certificate pending but did not initiate the required
background check prior to June 30, 2013.
School districts must then exclude the 2012-2013 hours of
attendance for all students who were under the
supervision of those educators since they did not have a
valid certificate.
Non-certificated Educators
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Questions regarding appropriate teacher certification
should be directed to Educator Certification.
Questions regarding documentation for exclusion of
attendance hours should be directed to School Finance.
Additional Days in the Calendar
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Additional days added to the calendar does not
equate to a higher ADA and higher formula
dollars
When additional days are added to the calendar
both the numerator and denominator are
impacted
ADA calculation is total attendance hours
divided by the hours in session
ASBR – Home Page
ASBR – Edits
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Edit errors must be corrected before the district
will see the submit button
Edit warnings
 Must
be reviewed and the district must
 Provide a remark as a response to the edit if a remark is
acceptable
 Or; corrections must be made within the ASBR to
resolve the edit
 Some warnings only require a remark and some will
require the district to make corrections
ASBR - Edits
Run edits by selecting the edits button
ASBR - Submit
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ASBR submit button is available after the district
has run the edits and there are no edit errors
generating
If there are no edit errors and the submit button
isn’t visible the problem is likely one of the
following:
 The
current user has authority to the new ASBR
system but doesn’t have submit authority
 The user hasn’t been assigned ASBR authority as is
required in the new ASBR system
ASBR Printing
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The current section that is being viewed can be
printed by selecting the current page report
 This
will print the whole section that is currently
being viewed
 Example:
All of Part II would print if any part of the
revenues is currently being viewed
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ASBR Report will print Part I through Part IV,
Long and Short Term Debt, regardless of what
page is currently being viewed
ASBR Printing
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To print Part IV Application for State
Transportation Aid, School Bus Depreciation
Schedule and Facility Depreciation Schedule you
have to be viewing that particular page and
select the current page report for the page you
are viewing
 Each
of these sections will have to be printed
individually
ASBR Printing
ASBR print options
ASBR Printing – ASBR Report
To create a PDF file click the drop down menu by the save
sign, select PDF and then save the file wherever you would
like to save it
ASBR Version Selection
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There is always an open version available so that districts
can make changes to what was last submitted
Changes in the open version are never used in DESE
systems and reporting
When School Finance is providing information to the
public, legislators, the federal government, etc. we are
always using the information from the last submitted ASBR
The drop down menu by the version will allow the district
to drop down and view any edit letters, balance letters,
and any prior submission of data
ASBR – School Bus Depreciation Schedule
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Please take time to review the depreciation schedule each
year
A “reviewed” button will be added to the depreciation
schedule beginning with the 2012-2013 year to help
remind districts to review the schedule
A field has been added to enter the VIN number for each
bus
 Please enter the VIN numbers in the 2011-2012 ASBR
and resubmit the ASBR
Only DESE can delete a bus that is incorrectly on the
depreciation schedule
ASBR – Long and Short Term Debt
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General Obligation Bonds
 Each
bond issue may now be shown on a separate
line
 There is a drop down selection for the type of bond
issue
 The series number may now be included
2012-2013 ASBR
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2012-2013 ASBR
Debt Service Fund will be included in Part III-A and Part
III-C instead of being a calculated field on Part I
Summary
 School bus VIN numbers will be required
 A field will be added to the School Bus Depreciation
Schedule for a bus purchased with other funds
 ARRA revenue codes that are no longer being used will
be deleted
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A complete list will be posted on the School Finance website
Initial communication with vendors regarding these
changes has already occurred
Contact Information
School Finance
573.751.0357
Roger Dorson e-mail
Roger.Dorson@dese.mo.gov
Jennifer Jordan e-mail
Jennifer.Jordan@dese.mo.gov