Kettle Moraine 2018-2019 Budget Presentation June 19, 2018 Budget - - PowerPoint PPT Presentation

Kettle Moraine 2018-2019 Budget Presentation

June 19, 2018 Budget Hearing / Annual Meeting

2017-18

Spend State Pays You Pay Revenue Limit Property Tax State Aid

_ =

$10,184 $4,719 $5,465 $8,332 $1,538

School Funding Simplified

$ 9,870

$0

2017-2019 State Biennial Budget

2017-2019 State Biennial Budget

Per-pupil Revenue Limit Adjustment

$0.00 (for both fiscal years)

“Per Pupil (Categorical) Aid” Adjustments

• $200 per member increase in 2017-18
• $204 per member increase in 2018-19

2017-18 2018-19

Revenue (Resources available for operations)

• Revenue Limit
• Enrollment decline (45)
• Revenue limit reduction ($874,000) or

(2.3%) reduction

• Lowest Revenue limit since 2003-04

Maximum Revenue Per Member

(Revenue Limit (2017-18))

Maximum Revenue per Member to… Dollars allowed for operations

• Revenue Limit = Max. Revenue/Member x Membership

(KMSD = $9,870/member x 3,627 members)

• $11,631/Member (County (high)) vs. $9,870 (KMSD)

The ($1,761) difference x 3,627 (KMSD) members = $6.4M Less per year for Operations

• $10,346/Member (County (average)) vs. $9,870 (KMSD)

The ($476) difference x 3,627 (KMSD) members = $1.7M Less per year for Operations

Consider the Cumulative effect…

The CUMULATIVE effect…

Revenue Limits have been in place since 1993 (25 years) Kettle Moraine vs…. Waukesha County (average)

• Kettle Moraine is allowed $1.7M less revenue per year to operate

$1.7M x 25 years = $42.5M less to operate over 25 years (almost one (1) annual operating budget)

Waukesha County (high)

• Kettle Moraine is allowed $6.4M less per year for operations

$6.4M x 25 years = $160.0M less to operate over 25 years (about three (3.5) KMSD annual operating budgets)

Other Revenue (available for operations)

• “Per Pupil (Categorical) Aid”
• $654 per member for 2018-19
• $204 increase over 2017-18
• Outside of Revenue Limits
• New (Categorical) Aid started in 2013-14

Fiscal Year Per Pupil Allocation KMSD Membership KMSD Per Pupil Aid 2013-14 $75 3,984 $298,800 2014-15 $150 3,878 $581,700 2015-16 $150 3,767 $565,050 2016-17 $250 3,694 $923,500 2017-18 $450 3,627 $1,632,150 2018-19 $654 3,582 $2,342,628

Kettle Moraine State Aid Property Tax Kettle Moraine Revenues by Source (all Funds)

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2016-17 2017-18 2018-19

Property Taxes State General Aid Open Enrollment Transfer-In State Categorical Aid Federal Aid Nutrition & Community Service Other

Expenditures (Operational Costs)

A look at the past… Kettle Moraine “Tools” implemented in 2007-08 (prior to Act 10)

• Post-Employment Benefits – eliminated for

Administrative Staff (moving forward)

• Employee Insurances – Bid out for non-

represented staff through Waukesha County Cooperative

Act 10 “Tools” Implemented… 2011-12 Wisconsin Retirement System

• 50% contribution by employee

Consumer Price Index (CPI)

• 2.13% Maximum for 2018-19

Employee Insurances – Bid / Plan Design Post retirement benefits - eliminated

(remaining cost supported by committed funds in the general fund balance)

Expenditures (Operational Costs)

Post Employment Benefits

July 1, 2006 Other Post Employment Benefit (OPEB) & Pension Liability $32,517,782 July 1, 2017 (95% Reduction) Other Post Employment Benefit (OPEB) & Pension Liability *$ 1,844,472

*Total liability will be paid off by 2020-21

Kettle Moraine State Aid Property Tax 2018-19

Expenditures by Object (All Funds)

Kettle Moraine State Aid Property Tax

2014-15… a look at the past

Expenditures by Object (All Funds)

Staffing Plan

* Food Service is self-supporting and FTE includes 1.0 FTE to support parochial services

Kettle Moraine State Aid Property Tax Kettle Moraine Expenditures by Function

Balancing the General Fund (Operations) Budget

• Current fund balance is 29.4% of general fund

expenditures (24% after 2017-18)

• Funding committed to support the remaining

pay-as-you-go post-retirement benefits as of June 30, 2017 - $2.2 million

• Last payment due in 2020-21 fiscal year
• 2018-19 Balanced Budget
• $2.7M in expenditure reductions to balance

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

PROPERTY TAX STATE AID

Kettle Moraine State Aid Property Tax Kettle Moraine Revenue Limit, State Aid, and Property Tax

Kettle Moraine State Aid Property Tax Kettle Moraine General Fund Revenue/Expense Summary Projection

BUDGET FY - 2018 FY - 2019 % ∆ FY - 2020 % ∆ FY - 2021 % ∆ FY - 2022 % ∆ FY - 2023 % ∆ REVENUE Local Sources $32,210,592 $32,240,327 0.09% $31,909,080

• 1.03%

$31,825,853

• 0.26%

$32,066,396 0.76% $31,971,352

• 0.30%

State Sources $7,923,301 $7,762,867

• 2.02%

$7,757,695

• 0.07%

$6,971,218

• 10.14%

$6,296,150

• 9.68%

$5,728,004

• 9.02%

Federal Sources $213,291 $213,291 0.00% $213,291 0.00% $213,291 0.00% $213,291 0.00% $213,291 0.00% Other $3,894,265 $3,915,821 0.55% $4,069,491 3.92% $4,103,409 0.83% $4,237,213 3.26% $4,452,837 5.09% TOTAL REVENUE $44,241,449 $44,132,306

• 0.25%

$43,949,557

• 0.41%

$43,113,771

• 1.90%

$42,813,050

• 0.70%

$42,365,484

• 1.05%

EXPENDITURES Salary and Benefits $29,519,653 $28,171,604

• 4.57%

$28,642,048 1.67% $29,260,229 2.16% $29,775,162 1.76% $30,558,947 2.63% Other Objects $16,816,049 $15,960,701

• 5.09%

$16,258,164 1.86% $16,497,307 1.47% $16,770,245 1.65% $17,052,443 1.68% TOTAL EXPENDITURES $46,335,702 $44,132,306

• 4.76%

$44,900,213 1.74% $45,757,536 1.91% $46,545,407 1.72% $47,611,390 2.29% (CUMULATIVE BUDGET SHORTFALL) ($2,094,253) $0 ($950,656) ($2,643,765) ($3,732,357) ($5,245,906) ANNUAL BUDGET SHORTFALL (Non-Cumulative) ($2,094,253) $0 ($950,656) ($1,693,109) ($1,088,592) ($1,513,549)

Fund 10 - General Fund - Projection Summary

REVENUE & EXPENDITURE PROJECTIONS

Kettle Moraine State Aid Property Tax Kettle Moraine Tax Levy

Property Tax Levy Summary Actual Actual Budget

Budget Budget

All Funds 2016-17 2017-18 2018-19

Change Percent

General Fund 30,810,350 $ 31,416,092 $ 31,406,944 $

(9,148) $

• 0.03%

Referendum Debt Service Fund 4,234,094 4,236,631 4,223,881

(12,750)

• 0.30%

Non-Referendum Debt Service Fund 30,000 35,000 35,000

• 0.00%

Capital Expansion Fund 225,000 225,000 225,000

• 0.00%

Community Service Fund 215,255 215,255 215,255

• 0.00%

Total Levy 35,514,699 $ 36,127,978 $ 36,106,080 $

(21,898) $

• 0.06%

Equalized Tax Base $3,447,777,975 $3,584,468,052 $3,674,079,753

$89,611,701 2.50%

Equalized Tax Rate Per $1,000 10.30 $ 10.08 $ 9.83 $

(0.25) $

• 2.44%

Kettle Moraine State Aid Property Tax Waukesha County Tax Rates

Budget Timeline

February - April March May November September Student Enrollment General Aid Certified 5 Year Forecast shared with School Board/Cabinet/Principal Council Annual Meeting Staff & Public Meetings Administrative Budget Rationale & Recommendations Interim Budget

Next Steps

• Advocate for legislative change
• Determine District direction
• Additional Capital Needs (Design Lab; Outdoor Facilities)
• Referendum Discussion
• Operating
• Capital
• Combination (Operating/Capital)

“Let your dreams be bigger than your fears and your actions be louder than your words.”

Janina Pulido