Montana School Budgets
Summer conference
2014
Gwyn Andersen
Kalispell Public Schools
Phone: 751-3412
anderseng@sd5.k12.mt.us
Paul Taylor
Office of Public Instruction
Phone: 444-1257
PTaylor2@mt.gov
Montana Districts
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Kindergarten
Grades 1-6
OR
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Kindergarten
Grades 1-6
Junior High – Grades 7-8
AND
Grades 9-12
7th & 8th Grade Students
7th and 8th grade students are part of the Elementary
School budget but may be approved for funding at
the high school level if the district has a 7th and 8th
grade accredited program
i.e.: offer fine arts (band, choir, art) and/or vocational
education courses (family consumer science,
technology, agriculture, woods, etc.) to 7th and 8th
grade students
Montana K-12 District
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Kindergarten through Grade 12
District Borders for Elementary and High
School are Co-terminous (identical)
Taxable Value for Elementary and High
School is identical
Calculate ANB for K-6, 7-8, 9-12 and add it
together
One Budget, One Trustees Financial Summary
Separate Budget Units
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Enrollment is aggregated for all schools
of the district for ANB and Basic
Entitlement purposes, except for:
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When schools within a district are at least
20 miles apart
Or when conditions exist that would create
an unusual hardship for transporting
students to another school
Consolidation Bonus
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Consolidated or annexed district entitled to maintain
funding for separate budget units for each district for
3 years following the consolidation or annexation
Each district shall retain a percentage of its basic
entitlement for 3 additional years as follows:
 75% for the fourth year
 50% for the fifth year
 25% for the sixth year
ANB – Average Number Belonging
ANB or “Average number belonging”
is the average number of regularly
enrolled full-time pupils attending
the public schools of the district
(MCA 20-1-101)
Three Count Days Annually
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Count all enrolled students
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First Monday in October
First Monday in December
First Monday in February
If count day is on a non-school day, use the next school day
ANB Exclusions
•Pre-Kindergarten Students are excluded from ANB
•Serving 5 year old in PreSchool can count for ANB
(technically Kindergarten and record as
Kindergarten)
•Half time Kindergarten Students count as ½ ANB
•Under 5 years old prior to September 10 are
included in ANB only if their attendance has been
approved by the Board of Trustees
•19 years old on or before September 10 are
excluded from ANB
Part Time Students
Count as: (ARM 10.20.102 and 10.15.101)
• 0 ANB – less than 180 hours of pupil instruction
(basically less than an average of 1 hour per day)
•.25 ANB – from 180 to 359 hours of pupil instruction
(between 1 and 2 hours per day)
•.50 ANB – from 360 to 539 hours of pupil instruction
(between 2 and 3 hours per day)
•.75 ANB – from 540 to 719 hours of pupil instruction
(between 3 and 4 hours per day)
• 1 ANB – 720 or more aggregate hours of pupil instruction
(more than 4 hours per day)
ANB Specifics
10 day Rule
Students absent with or without an excuse, for more than
10 consecutive days, are considered “dropped” and are
not included in the enrollment count when 10 days includes
count day
Kindergarten served in Pre-Kindergarten
Hours of service determine part time ANB
Job Corp Enrollment - 1 ANB (agreement in place)
Montana Youth Challenge - .5 ANB (agreement in place)
Early graduates
Enrolled in 7th semester Oct 1 and graduate before Feb 1
count day, included on February Count only
Can be found at:
http://www.opi.mt.gov/PUB/pdf/schoolfinance/forms/anbmem
o.pdf
“Current Year ANB” Calculation
(Sum of 3 Enrollment Counts
Divided by 3)
(do not round)
Times
PI Days (180) + PIR Days (7)(187
Divided by 180
= ANB (always round up)
“Three Year Average ANB”
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Districts that have been in existence for 3 years or
more must calculate ANB using the current year ANB
and the 3 year average ANB, and use whichever one
generates the greatest maximum general fund
budget
K12 Districts calculate ANB using the current year
ANB and the 3 year average ANB separately for the
elementary and the high school units and then
combine them
“Budgeted ANB”
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ANB that generates the greatest
maximum general fund budget
The “Budgeted ANB” will be either the
“Current Year ANB” or the “Three Year
Average ANB”, MCA 20-9-322
ANB Tips
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This number is important
Auditors are required to verify the documentation
used to arrive at this number
Run 2 reports, one for the count day and one for the
10 days prior and including count day
Run a report showing the birth dates of Kindergarten
students and Seniors (for 19 year olds)
MAEFAIRS prefills from AIM
General Fund Funding Components
(2005 Special Session) (2013 Session)
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BASIC Entitlement (MCA 20-9-306)
Per-ANB Entitlement
Quality Educator Payment
At Risk Payment
Indian Education for All Payment
American Indian Achievement Gap Payment
Special Education Allowable Cost Payment
Data for Achievement Payment
Basic Entitlement Rates
Entitlement
FY2013
Elementary
$
Basic
23,593
Middle School
$
Basic
66,816
High School
$262,224
Basic
FY2014
FY2015
FY2016
$ 40,000 $ 40,000 $ 50,000
$ 80,000 $ 80,000 $100,000
$290,000 $290,000 $300,000
One BASIC Entitlement per budget unit!
Additional Basic Entitlement
Rates (SB 175)
Budget
Unit
Elementary
> 250 ANB
FY2014 FY2015 FY2016
For every 25
ANB over 250
$ 2,000 $ 2,000 $ 2,500
Middle
For every 45
$ 4,000 $ 4,000 $ 5,000
School
ANB over 450
> 450 ANB
High School For every 80 $ 12,000 $ 12,000 $ 15,000
> 800 ANB
ANB over 800
 Increases the basic entitlement
 Provides an increment for additional ANB
Per-ANB Entitlement Rates
Entitlement
*Elementary
per-ANB
FY2013
$ 5,075
FY2014 FY2015
*$ 5,120 *$ 5,226
FY2016
$5,226
*High School
per-ANB
$ 6,497
*$ 6,555 *$ 6,691
$ 6,691
*per-ANB entitlements were increased by .89% in FY2014 and
2.08% in FY2015. Estimated 2016 increase is 2%.
Per- ANB Decrement Formula
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Each student after the first is decreased by the Reduction Factor per ANB
$.20 Elementary
$.50 High School (and accredited 7th & 8th)
Removal of this decrement is one of the proposed MTSBA legislative changes for
the 2016 Session
[$5,226 X Elem ANB]-[.20 X (Elem ANB/2) X (Elem ANB –1)]
[$6,691 HS ANB]-[.50 X (HS ANB/2) X (HS ANB –1)]
For each additional student over the “Stop Loss”
Elementary ANB over 1000
$5,026.20 X ANB
High School ANB over 800 (and accredited 7th & 8th)
$6,291.50 X ANB
Quality Educator Payment
$3,113 per (Full Time Equivalent) Licensed Educator
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Certified Teacher
Licensed Administrators
Registered Nurses
Licensed Practical Nurses
Physical Therapists
Speech Language Professionals
Counselors
Occupational Therapists
Nutritionists
Licensed Social Workers and Psychologists
Quality Educator Payment (cont.)
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Source of the data is the count of FTE staff
in the “NEW” TEAMS Report
For Staff who split their time between two
or more buildings make sure their FTE
totals 1.00
Print “Quality Educator Payment
Assignments” Report
Revenue Code 3111
At Risk Payment
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Distribution in based on Title I
allocations
Increased by .89% in FY2014 and
2.08% in FY 2015
Est. 2.5% in FY 2016
Revenue Code 3112
Indian Education For All
Payment
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To provide curriculum for the
implementation of the “statutory
requirements” to recognize the
American Indian Cultural Heritage
MCA 20-1-501
Greater of $100 per District or $20.88
per ANB
Revenue Code 3113
American Indian Achievement
Gap Payment
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$205 for each American Indian
Student
Requires only Self Identification by
parent or student
Reported in the AIM System,
Demographics Report, Oct Count
Revenue Code 3114
Data for Achievement (D4A)
Payment
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Paid per ANB
For access fees or other costs for
statewide data system, including
data entry and staff training
$10 FY 2014, $15 FY 2015,
$20 FY 2016
Revenue Code 3116
Funding Components
FY2013
FY2014
FY2015
FY2016
$3,042
$3,042
$3,042
$3,113*
At-Risk Student
$5,000,000
$5,044,500
$5,149,426
*
Indian Education for
All
$20.40
($100 min.)
$20.40
($100 min.)
$20.40
($100 min.)
$20.88*
$200
$200
$200
$205*
N/A
$10
$15
*$20
Quality Educator
Am Indian Student
Achievement Gap
Data for
Achievement
*In the 2017 biennium budgeting process, these
components will be increased by the annual
inflationary adjustment as provided in 20-9-326, MCA
Special Education Allowable
Cost Funding
HB 2 Appropriation
% increase
FY2013
$ 41.6
million
FY2014
$ 42.018
million
1%
FY2015
$ 42.892
million
2%
District’s receive funding if:
>Operate a special education program (ie. have a
student identified on special ed child count)
>Or belong to a special education cooperative
>Or have signed an agreement for services for special
needs student
Special Education Funding
Distribution
5%
25%
52.5%
17.5%
IBG
RSBG
Disp Cost
Coop Reimb
Instructional Block Grant (IBG)
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52.5% of Total Allocation
$152.25 Current Law
Distributed based upon “Current Year
ANB” only
Intended to provide “Instructional”
Services to Students
Funds are sent directly to eligible
districts
Related Services Block Grant
(RSBG)
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17.5% of Total Allocation
$50.75 Current Law
Distributed based upon “Current Year
ANB” only
Intended to provide “Related” Services
to Students
Members of a Co-op – RSBG goes to
Co-op on their behalf
Local Match
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IBG and RSBG only, have a $1 of local
revenue to every $3 received from the state,
match requirement
Co-op Members send their match to the Coop, sometimes it comes back into Fund 15
If required match is not provided, unmatched
funds will be subtracted from next fiscal year
(“special ed reversion”)
Disproportionate Costs
Reimbursement
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25% of Total Allocation
Required spending level is based upon state
special ed payment plus the local contribution
Prior year expenditures must exceed the
districts required spending by
1.754957254% to become eligible
Receive reimbursement of 40% above
threshold, 2 years after the fact
Administration and Travel for
Cooperatives
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5% of Total Allocation
Based on weighted statewide and
individual cooperative travel and
administrative factors
Coops receive payment directly
No local match is required
Allowable Special Ed Costs
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Allowable Costs (MCA 20-7-431)
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Instructional Services
Related Services
ARM 10.16.3806 instructional services
ARM 10.16.3807 related services
ARM 10.16.3808 cooperatives
Allowable Special Ed Costs
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Allowable costs as related to ISBG & RSBG do not
include the entire cost of operating a special
education program
ARM 10.16.3805 excludes:
 Employer contributions to TRS, PERS, FICA, and
Unemployment insurance
 Admin, Teachers or Aides Necessary to meet
Accreditation
 Transportation
 Most Admin Support Personnel
 Overhead Costs
State Reimbursement
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Medicaid Reimbursement
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MAC – administrative cost reimbursement
Direct Bill - district provided services
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Ie: nursing care, speech
For medicaid eligible students
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CSCT Reimbursement
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Behavioral Health pass through
These revenue sources vary from year to year
Federal Special Ed Revenue
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IDEA Part B
IDEA Pre School
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Members of Co-op – this money goes to
the Co-op on their behalf
Funds cannot be used to reduce the school
district’s expenditures
Supplement not Supplant
Maintenance of Effort
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Must maintain spending effort from year to
year
Must complete paperwork with OPI
Allowable reductions are for:
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Higher Cost Personnel Replaced by Lower Cost
Personnel
Fewer Children with Disabilities
High Cost Student Leaves the District
Costly Expenditures for Long Term Purchases
Maintenance of Effort
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(cont.)
Co-op Members share MOE
Not meeting MOE will result in
reduction of next year’s IDEA funds
Coding is very Important
Use Program Code 280
Balance between MOE and Avoiding
Reversion is Important
Special Education Budgeting
Elementary
Revenue
General
Transportation
Retirement
Current Info
535,418.32
18,093.90
111,233.01
Impact Aid
Part B
Pre School
176,307.51
481,312.00
17,069.00
Sub-Total
1,339,433.74
Avoid Reversion
Current Info
328,646.73
Budgeted
Expended
677,112.44
18,093.90
111,233.01
914,159.62
18,309.45
129,667.82
176,307.51
547,843.00
18,049.00
176,307.51
547,843.00
18,049.00
1,548,638.86 1,804,336.40
153 Students
Per Student
10,121.82
Special Education Budgeting
High School
Revenue
General
Transportation
Retirement
Sub-Total
Current Info
218,741.05
17,204.08
37,751.22
273,696.35
Avoid Reversion
Current Info
153,606.62
Budgeted
218,741.05
17,204.08
37,751.22
423,051.08
12,206.30
69,781.60
273,696.35
505,038.98
68 Students
Per Student
1,822,335.21
Maintenance of Effort
MOE 2014
Expended
1,080,135.70
1,060,255.00
4,024.95
2,309,375.38
Establishing BASE and Maximum
General Fund Budgets
100%
Maximum Budget
80%
BASE Budget
BASE General Fund Budget
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80%
80% of
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100% of
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Basic Entitlement
Per ANB Entitlement
Quality Educator
At Risk Student Payment
IEFA Entitlement
American Indian Ach Gap
Data For Achievement
140% of Special Ed Allow
Maximum General Fund Budget
100%
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100% of
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Basic Entitlement
Per ANB Entitlement
Quality Educator
At Risk Student Payment
IEFA Entitlement
American Indian Ach Gap
Data For Achievement
175 to 200% of Special Ed
General Fund Budget and
Voting Limits
Highest Budget WITHOUT a Vote:
FY 16 BASE + prior year over-Base levy
5 year look back period
 The highest over-BASE amount imposed
(actually levied) in any of the previous 5
years (FY 2012 - FY 2016) OR
 The highest over-BASE amount authorized by
voters, up to the highest budget allowed in
any of the previous 5 years (FY 2012- FY
2016)
General Fund Budget and
Voting Limits
Highest Budget WITHOUT a Vote:
FY 16 BASE +
 Non-Levy Revenue Available
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Mostly oil and gas
Excess Reserve held at least one year
Fund Balance Available (rare)
General Fund Budget and
Voting Limits
Highest Budget WITH a Vote:
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Current year’s maximum OR
A budget equal to the prior year adopted
budget plus any increases in the funding
components
Requires voter approval to INCREASE the
over-BASE levy
Thank you for coming!