MARSHALL PUBLIC SCHOOL DISTRICT Board of Education School Finance and Budget Workshop Dr. Carol Maher, Superintendent November 13, 2014 Marshall District Report Card 2011 2012 2013 2014 87 109 107 104 K-12 Enrollment 2,457 2,359 2,389 2,431 Attendance Rate* - Marshall 89.8% 90.7% 91.1% 90.5% Attendance Rate* - MHS 84.6% 86.8% 89.6% 85.8% Attendance Rate* - BMS 93.4% 94.9% 93.4% 94.0% Attendance Rate* - Elementary 91.1% 90.35% 90.60% 91.67% Graduation %age - (MO/Marshall) 78.59/86.51 83.69/82.39 85.73/90.16 87.34/88.59 ACT Average – (MO/Marshall) 21.60/20.10 21.60/20.90 21.60/19.80 21.80/20.60 62.2% 65.2% 62.9% 61.0% Preschool Enrollment Poverty Rate *Percent of students who attend more than 90% of the time. Teachers to Students Missouri 2011 1:18 Marshall 2011 1:20 2012 2013 2014 1:18 1:18 1:18 2012 2013 2014 1:19 1:18 1:20 Administrators to Students Missouri Marshall 2011 2012 1:195 1:195 2011 2012 1:228 1: 210 2013 1:195 2013 1: 222 2014 1:195 2014 1:270 Teacher and Admin Salaries 2014 Average Teacher Salary 2014 Average Administrator Salary $46,754 $87,181 $40,867 (13% less) $72,546 (17% less) 2014 Average Years Experience Teachers with Advanced Degrees Missouri 12.3 59% MARSHALL 13.2 68% Missouri MARSHALL FUNDING SOURCES Local (personal property taxes) = 46% County (fines and forfeitures) = 0%* State (funding formula) = 44% Federal (Free and Reduced Rate) = 10% * County collections apprx = $200,000 FEDERAL FUNDING Title 1.A: Based on district’s free and reduced count Title 1.C: Education of Migrant Children Title 1.D: Education for Delinquent and At Risk Title II.A: Teacher and Principal Recruitment and Retention Title III: Instruction for Limited English Proficiency Title VI: REAP Rural Education STATE FUNDING DEFINITIONS • State Funding Formula • State Adequacy Target = $6,131 • WADA – Weighted Average Daily Attendance (paid extra for students on F & R, IEP’s, ELL) • DVM - Dollar Value Modifier (Marshall = 1.006) • Pro-Ration Factor (.96, will budget for .94) • Classroom Trust Fund – Gaming Money ($401/ADA) • Free Textbook Fund (no longer a line item, but deposited into General Fun) – Foreign Insurance • Fines & Forfeitures (county, usually above $200,000) State Funding (The Funding Formula) Weighted ADA Multiplied by State Adequacy Target ($6,131) Minus Local Effort Multiplied by Dollar Value Modifier (1.006) Equals State Funding Required Minus Bond Redirect (not in Marshall) SCHOOL FINANCE Legal Requirements for State Funding • • • • • • • • • • Residency Sunshine Law Background checks Mandated reporting Sex education instruction Fair Labor Standards Act Family Medical Leave Safe Schools Act School Prayer Sexual Harassment Legal Requirements for State Funding • • • • MINIMUM SCHOOL HOURS AND DAYS – Students must be in session 174 days. Length of staff year is local decision. The length of the school day must be 3 hrs., with a total of 1044 hours. VIRTUAL SCHOOL ATTENDANCE - For the school year beginning July 1, 2008, a parent residing in a lapsed, or poor performing school district may enroll their child in the Missouri virtual school if the child first enrolls in the school district of residence. SCHOOL OPENING DAY - Cannot be earlier than ten days prior to Labor Day. A district may set an opening date that is more than ten calendar days with proper procedures. MAKE-UP DAYS - The annual calendar for the school term, as prepared by the school board, is required to include six make-up days. A district shall be required to make up the first six days of school lost or canceled due to inclement weather and half the number of days lost or canceled in excess of six days. Local Funding Assessed Valuation (highest of last 3 years) 1. Property taxes: Real Estate - Residential: 17% - Rural: 12% - Commercial: 33% 2. Personal Property taxes (includes industrial equipment) Deductions for Local Effort Eliminated from separate posting, but included in State Adequacy Target: • Fair share – Cigarette tax • Free textbook – Foreign Insurance Money Deductions for Local Effort • • • • • • Local Taxes State Assessed Railroad and Utilities Federal Impact Aid Proposition C (Sales Tax=$901/WADA) Classroom Trust Fund Fines and Forfeitures SCHOOL FINANCE Accounting The Four Funds Fund 1: INCIDENTAL OR OPERATING FUND Levy is assessed Fund 2: TEACHERS’ FUND Levy is assessed in most districts Fund 3: DEBT SERVICE Levy is assessed to pay back borrowed money Fund 4: BUILDING OR CAPITAL PROJECTS FUND Levy is usually not assessed. Money does not run through formula 5 Year Comparison of Financial Components WADA STATE FORMULA PER STUDENT PAYMENT 2010 – 2011 2540 $8,921,202 (.96) $3603 2011 – 2012 2587 (+47) $8,857,321 (.92) $3720 2012 – 2013 2594 (+7) $9,250,062 (.93) $3851 2013 – 2014 2572 (-22) $9,009,036 (.93) $3802 2014 – 2015 2560 (-12) $9,371,858 (.96) $3814 2015 - 2016 2550 (-10) (?) $9,027,732 (.96) (?) $3540 (?) FINANCIAL CONSIDERATIONS 5111 & 5112 Revenue Current Tax Delinquent Tax $325,262 Total Property Tax Budget Change FY 2013-14 Actual $4,589,330 $4,914,918 2014 AV x Tax Rate100% $5,024,629 $5,024,629 + $109,711 2014 AV x Tax Rate 99% $4,974,383 $4,974,383 + $59,465 Comparison of Area Schools’ Base Teacher Pay MARSHALL = $31,250 ENROLLMENT = 2535 CITY BASE PAY COMPARE ENROLLMENT Sedalia $32,644 +$1394 4836 Sweet Springs $31,612 +$362 456 Carrollton $32,000 +$750 848 Odessa $33,250 +$2000 2065 Excellsor Sprgs $34,691 +$3441 2690 Kirksville $35,000 +$3750 2425 Moberly $34,342 +$3092 2313 Fulton $31,830 +$580 2164 Boonville $30,000 -$250 1544 Mexico $31,000 -$150 2276 Lexington $29,600 -$1650 881 Financial Considerations 2014 – 2015: • School Finance at DESE is predicting a proration factor higher than last year. 100% funding = 1.0. Currently, 96% • A “healthy” fund balance is considered to be between 17 and 25 percent. Last year, ours was at 19%. With a tax levy at $3.12, the fund balance is probably as high as it can go. • Sales taxes are predicted to remain steady or decrease slightly. • Without the construction of the pipeline (added $$ for new construction), the tax rate would have been $3.03. New construction is a one year increase. That would have been a loss of approximately $155,000. • Increase in utilities from the pipeline will cause state formula money to decrease. Financial Considerations • Student safety issues include making sure doors, windows, and cameras are secure. • Entrances to buildings needs to be upgraded with safety glass and other safeguards so building is secure. • Text, Twitter, Instagram, other social media, and phone system need to be upgraded and used to enhance and improve the safety alert system across the district. • Sidewalks and drives need to be improved to serve as efficient means for access by emergency services. District officials are joining with Marshall city officials to write a grant for this type of funding. Financial Considerations • Salaries and benefits are 83% - 87% of schools’ budgets. • Steps for longevity in the district are $680 per year. • Steps for higher education are between $850 and $1000. • If the base is increased, that amount of increase will be added to each cell. To calculate the increase to the budget, multiply the amount of increase to the number of people in each cell. Financial Considerations Transition to Designated Schools 1st phase: Fourth grade moved into buildings at no cost. 2nd phase: There will be no cost to move 1st and 2nd grades into buildings. 3rd phase: Kindergarten and 5th grades apprx. costs: • Moving 3 trailers • Lease of 3 new trailers for three years • Costs: - First year: $53,5000 - Second year: $22,500 - Third year: $22,500 Financial Considerations Facilities renovation and repair • Every building in the Marshall district has roof issues with mold and moisture in some buildings as the result. • A rough estimate for repairs to the roofs in the district is $151,000. • We are in the process of getting quotes for a permanent sealer for all buildings. (The high school estimate is apprx. $1,000,000.) Financial Considerations Facilities renovation and repair • Other issues: - Air conditioners - Boilers - Water heaters • Mr. Faber and Mr. Moore are in the process of auditing our grounds and facilities to give us a comprehensive report of needed upgrades. • We have spent $77,275 on upgrades and repairs Additional work that was not anticipated will be approximately another $150,000 before June. Financial Considerations The district offices need new technology to link building to building and to meet the demands of a digital world. • Requisitions, purchase orders, personnel requests, are written or typed by hand. • Budget numbers or balances are not available on a network across the district. • Personnel could be much more efficient with modern technology. • The approximate start-up cost for an updated comprehensive business system is $45,000. Financial Considerations District officials must keep local businesses, civic groups, government, and agencies in mind when securing • Partnership with the community is critical. Neither the school or the city of Marshall can thrive without the other. • MPS needs to shop and use local talent and companies, whenever fiscally possible, in making purchases and hiring services. • The community should be involved in budget considerations, including facilities decisions. To finance improvements, • Districts ask voters to approve an increase to the tax levy or to pass a bond issue. • To increase salaries, a tax levy is required because the expenditure will be permanent. To finance improvements, • To repair or build facilities, districts sell bonds as a 20 year loan. By law, the district is required to pay back the money by levying a tax in Fund 3. • Money is intercepted from the state funding formula and placed in a third party institution for repayment of bonds. • With a levy of $3.12, it is very difficult to move money to Fund 3 so money can be borrowed. Financial Considerations The Board of Education has serious decisions to make in the near future. Members want: • Funding to repair buildings will cost the district more than we can cover with the current budget. As of November, we are 132% of the budgeted amount in Upkeep of Buildings (roofs). Repair of Equipment (boilers, etc.) is 118% of the budgeted amount. • If we consider sealing roofs, we must repair the current ones. Financial Considerations The Board of Education has serious decisions to make in the near future. Members are considering asking Marshall taxpayers to help with the facilities, safety, technology, and salaries issues. • The current tax rate is $3.12. Every 10 cents raise to the levy equals $160,000. To raise $1,000,000 the levy must be raised by 63 cents. • Superintendent suggests considering this increase and doing so in yearly increments. Financial Considerations AREA OF INCREASE APPROXIMATE COST Facilities repair $300,000 Teacher and staff salaries $300,000 Safety upgrades $100,000 Technology upgrades $100,000 TOTAL $800,000 To raise $800,000, the levy will need to be raised by 50 cents. Financial Considerations The Board of Education has serious decisions to make in the near future. Members want: • facilities which Marshall parents trust are safe for their children • Marshall to be the district where people compete for teaching and staff work • to recruit and retain “rock star” teachers • adequate technology so staff, teachers, and students can be as successful as possible • MPS to be the pride of Marshall Questions?