Topics 2 Monthly Payment Prior Year Correction Attendance - PowerPoint PPT Presentation

PRESENTED BY: DAVID TRAMEL~ COORDINATOR SCHOOL FINANCIAL & ADMINISTRATIVE SERVICES TAMMY LEHMEN – DIRECTOR, SCHOOL FINANCE Missouri Department of Elementary and Secondary Education October 2017

Topics 2  Monthly Payment  Prior Year Correction  Attendance Reporting  Calendar Options  Inclement Weather  Minimum Salary Requirements  Non-Certificated Educators

Number of K-8 Districts 3  There are 70 K-8 districts.  ADA of those districts range from:  32 to 657  Of those 70 districts:  35 are Small School Hold Harmless.  1 is Large School Hold Harmless.  62 receive the Small Schools Grant.

Classroom Trust Fund 4

Classroom Trust Fund (CTF) 5  The Classroom Trust Fund payment is part of the revenue available to fund the Foundation Formula.  Revenue code 5319.  This payment represents the Gaming monies portion of the Foundation Formula payment.  The rest of the Foundation Formula is funded with State General Revenue funds.  Revenue code 5311.  The Classroom Trust Fund payment is paid on first preceding year ADA.

Classroom Trust Fund 6  Shall be spent at discretion of local school district  For the 2010-11 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 2009-10 school year shall be placed to the credit of the district's teachers' and incidental funds.  May be used for but not limited too:  Teacher recruitment, retention, salaries  School construction, renovation, leasing  Technology, textbooks, instructional materials  School safety  Supplying additional funding for required programs

Classroom Trust Fund 7 2015-2016 June 2015-2016 CTF was $389.1363 per 2014-2015 ADA 2016-17 June 2016-17 CTF was $404.9466 per 2015-16 ADA Budgeting for 2017-18 Appropriation $351,663,349 Estimate of the 2016-17 ADA is 850,000 Estimate of $413 per 2016-17 ADA The state will only distribute funds that are actually collected into the Classroom Trust Fund

Proposition C 8

Proposition C A $.01 state-wide general sales tax for education with a corresponding property tax reduction for school districts. Prop C sales tax revenue is collected locally, transmitted to the state and then passed on to school districts based on an amount per prior year Weighted Average Daily Attendance (WADA) amount.

Proposition C 10 2015-2016 June 2015-16 Proposition C - $947.63 per 2015-16 WADA 2016-17 June 2016-17 Proposition C - $979.04 per 2015-16 WADA Budgeting for 2017-18 Appropriation is $901,600,000 Estimate of the 2016-17 WADA is 912,000 Estimate of $988 per 2016-17 WADA The state can only distribute what is appropriated for Proposition C.

Foundation Formula 11

Foundation Formula 12  Appropriation for 2017-18 is $3,392,907,149  SAT to be used in the first payments of the year  Factors considered in the SAT estimate  Change in thresholds  Unaccredited and Provisionally Accredited districts able to include PK students in ADA for funding  Summer School ADA

State Adequacy Target (SAT) 13 Calculated June Proration Prior Year Correction Fiscal Years SAT Used SAT Percentage Proration Percentage 2007 - 2009 $6,117 $6,117 100.000000% 100.000000% 2010 $6,117 $6,117 98.661002% 98.272000% 2011 $6,124 $6,124 96.979260% 96.458193% 2012 $6,131 $6,131 94.150969% 93.550547% 2013 $6,423 $6,131 92.583743% 92.387206% 2014 $6,716 $6,131 93.282523% 92.787959% 2015 $6,580 $6,131 96.869553% 96.439251% Fiscal Calculated June Proration Prior Year Correction Years SAT Adjusted SAT Adjusted SAT 2016 $6,580 $6,145.826158666 $6,121.196418367 2017 $6,241 $6,198.711938359

State Adequacy Target (SAT) 14  HB 1689 changed 163.031 RSMo, beginning with FY16, to specify what should happen if the Foundation Formula was not fully funded.  Any year the formula appropriation is insufficient to fully fund the entitlement calculation DESE shall adjust the SAT to accommodate the appropriation level.

Threshold 15 2015-16 Free & Reduced Lunch 41.00% Special Education (IEP) 12.60% Limited English Proficiency (LEP) 2.10% 2016-17 & 2017-18 Free & Reduced Lunch 36.12% Special Education (IEP) 12.16% Limited English Proficiency (LEP) 1.94%

Monthly Payments 16 How to calculate the monthly payment and prior year corrections

Monthly Formula Payment 17  To determine the October payment amount, take approximately 4/12ths (.33) of the State Monies (Line 17B) less the amount the district received through October .  The above method can be used to determine the payment amount in any month during the school year.  If a prior year correction was processed during the month the amount of the positive or negative prior year correction will need to be added to or subtracted from the monthly amount calculated through the above method.

Monthly Formula Payment 18 October Basic Formula Apportionment = $ 3,730,470 .33 of the October Apportionment = $ 932,617 Amount paid to district July through September (taken from August transmittal sheet) - $ 613,015 October Payment = $ 319,602 Prior Year Correction (if applicable) +/- $ 0 October Payment = $ 319,602

Prior Year Correction 19  The 2016-2017 Basic Formula Apportionment will be recalculated at least twice during the 2017-2018 school year.  November or December will most likely be the first time the recalculation is completed and will reflect the largest correction.  A second prior year correction will likely be done in May.

Prior Year Correction 20  To calculate the prior year correction, start with the June Basic Formula Calculation page. There are two items which may need to be updated.  Change the line 1 WADA to the greater of the 2014-2015, 2015-2016 or 2016-2017 actual WADA.  Change the SAT to what was used in the recalculation.  Calculation sheets are not currently available for the prior year corrections.

Prior Year Correction 21  2016-2017 Basic Formula, Line 17B  June 2017 Calculation $1,036,437  2017-2018 Recalculation $1,068,273  Difference/Correction $ 31,836 Note: A district may receive a negative correction even though the district’s data did not change.  A 6% interest penalty applies to the district’s overpayment if the June calculation was greater than 5% of what the district should have received for 2016-2017.

Small Schools Grant 22

Small Schools Grant Payment 23  To be eligible for the Small Schools Grant the district ADA for the prior year must be less than or equal to 350  $10M will be distributed to districts using an amount per ADA to Districts with prior year ADA ≤ 350.  $5M will be distributed to districts with tax rates ≥ $3.43 on a tax -rate-weighted ADA basis.

Small Schools Grant Payment 24 2015-2016 June 2015-16 Small Schools was:  $10,000,000 portion - $277.2395 per ADA  $5,000,000 portion - $158.7543 per tax rate weighted ADA 2016-17 June 2016-17 Small Schools was:  $10,000,000 portion - $277.7350 per ADA  $5,000,000 portion - $154.9317 per tax rate weighted ADA Budgeting for 2017-18  $10,000,000 portion - $277 per ADA  $5,000,000 portion – $154 per tax rate weighted ADA

K8 Districts WADA 25 What is different about a K8 district’s WADA?

WADA 26 There are several unique items that apply only to K-8 districts in the Weighted ADA calculation. Weighted ADA Calculation 2016-2017 1. a. Regular Term ADA K-8 72.539 1. b. Regular Term ADA 9-12 19.992 1. c. Regular Term Total 92.531 2. a. Summer Term ADA K-8 3.183 2. b. Summer Term ADA 9-12 0 2. c. Summer Term Total 3.183 3. a. Total ADA K-8 (Line 1. a. + Line 2. a.) 75.722 3. b. Total ADA 9-12 (Line 1. b. + Line 2. b.) 19.992 3. c. Total ADA K-12 (Line 1. c. + Line 2. c.) 95.7139

WADA 27 4 FRL Count (Screen 15) 52 5 Threshold Percentage 41 6 Minus Total ADA (Line 3.c.) x Threshold Percentage 39.243 7 Equals Count to be weighted (Line 4 - Line 6) 12.757 8 FRL Weighted Calculation (Line 7 x 25.00%) 3.1893 Line 3.c = Total ADA K-12 The FRL Count when reported by the high school district flows back to the K-8. So K-12 ADA can be used for weighting purposes. 9 IEP Count (Screen 11) 16 10 Threshold Percentage 12.6 11 Minus Total ADA (Line 3.a.) x Threshold Percentage 9.5409 12 Equals Count to be weighted (Line 9 - Line 11) 6.4591 13 IEP Weighted Calculation (Line 12 x 75.00%) 4.8443 Line 3.a = Total ADA K-8 IEP count remains with the high school district so K-8 ADA is used for weighting purposes.

WADA 28 14 LEP Count (LEP Census) 0 15 Threshold Percentage 2.1 16 Minus Total ADA ( Line 3.a. ) x Threshold Percentage 1.5902 17 Equals Count to be weighted (Line 14 - Line 16) 0 18 LEP Weighted Calculation (Line 17 x 60.00%) 0 Line 3.a = Total ADA K-8 LEP count remains with the high school district so K-8 ADA is used for weighting purposes. 19 Weighted ADA (Line 3.c. + Line 8 + Line 13 + Line 18) 103.75 20 Weighed ADA (Line 19) - Summer School ADA (Line 2.c.) 100.56 Formula Weighted ADA (highest of 3 years of Line 20 + current Summer School 21 ADA)

Information Available to Districts 29