The purpose of this agenda item is to review the draft budget timeline. The draft timeline has been attached for your review. The dates in the timeline are consistent with last year. The major unknown at this point is the timeline for the 2015-17 state budget. The state budget is expected to be signed by the Governor in June. 

The purpose of this agenda item is to review the draft budget forecast. The draft budget forecast has been attached for your review. Please note that the draft budget forecast includes multiple models of projecting student enrollment. The administration is recommending that we use the 5 year cohort model to forecast enrollment for the 15-16 fiscal year. We have used these numbers for the open enrollment capacity planning, and believe this is the most prudent approach at this time. This enrollment projection results in a student count that is 78 students higher in 15-16. I do not believe that 5 year budget forecasts have significant value at this point due to the significant variations in school funding that we have seen from state budget to state budget. At this time, we are more realistically planning from one state budget to another until school funding becomes more stable.

The purpose of this agenda item is to review the draft budget planning and
guidelines. The draft budget planning and guidelines has been attached for your
review. Please note that the budget planning and guidelines document identifies
the number of sections and staffing for grades K-6, while estimating the staffing for grades 7-12.
The staffing levels for grades 7-12 are reviewed during the student scheduling process later this spring. The draft budget planning and guidelines document provides a framework for developing the first draft of the budget in May. 

The purpose of this agenda item is to review the projected end of the year balance. The contingency fund for the 14-15 fiscal year is $100,000. We have allocated approximately $46,835 for additional salary increases and open enrollment special education tuition. The unallocated contingency is $53,165 at this time. We will also have a potential end of the year balance remaining in the referendum operational funds. Overall, I project that the end of the year balance will be positive by approximately $200,000 (excluding referendum funds). Please also note that I project that the department/building carry over fund balance will decrease due to projects being completed in the maintenance, technology, and curriculum departments.

The purpose of this agenda item is to discuss end of the year expenditures. The district fund balance is at 17.8%, with the School Board policy on fund balance having a target of maintaining 15%. As a result, we are in a position to consider spending end of the year budget balances instead of saving them to increase the fund balance. The administration would like to request your consideration to review potential end of the year expenditures. We would like to bring back some ideas at a future Budget Committee meeting. Examples could be summer curriculum writing, staff development, and textbook purchases. 

The purpose of this agenda item is to discuss the use of the revenue cap referendum proceeds. Attached please find a document that outlines a potential use of these funds over the next 4 years. I would like to review the phased in approach that we used for this referendum, as well as the options to expend these funds over this 4 year period of time. We know what the intended use of these funds are once we reach the forth year, and beyond, but we have flexibility in how these funds are allocated for the first three years.  The bold amounts on the attachment highlight the uses that would be flexible during the first 3 years. The administration is recommending that we allocate funds to the maintenance and technology departments equally according to the attached document. 

 

The purpose of this agenda item is to discuss the use of Fund 80, the community services fund. The tax levy and financial activity for Fund 80 is considered outside of the revenue cap. The Fund 80 tax levy has been frozen for the last two years. In addition, the DPI is required by a change in state law to identify the expenses that are allowed, and are not allowed, in Fund 80. It is likely that we have some expenses in Fund 80 that will have to be moved into Fund 10. A transfer from Fund 80 to Fund 10 will negatively impact the educational fund of the district. I am waiting for more guidance from the DPI and/or our auditors before recommending any changes. Here is the currently available information from the DPI:
Unless an emergency rule is promulgated, school districts will not know which activities would be considered ineligible costs for the Community Programs and Services Fund for the 2014-15 school year.  Not having this information could result in school districts unintentionally making expenditures from the Community Programs and Services Fund in 2014-15 that are deemed “ineligible costs” after the school board has made budget decisions and set a tax levy for the 2014-15 school fiscal year. Such a finding would then result in a negative adjustment to the district’s revenue limit authority for the following 2015-16 school year, per s. 121.91 (4)(r), Stats., as created by 2013 Wisconsin Act 306.  A district’s revenue limit authority controls the amount of combined State General Aid and local property taxes revenues for a district. Thus, a district’s revenue limit authority for the 2015-16 school year could be negatively impacted based on a definition of “ineligible costs” that was not in place at the time the district made its 2014-15 budget decisions and set the 2014-15 tax levy (by November 2014) for the Community Programs and Services Fund. SECTION 3. EFFECTIVE DATE:  July 1, 2014CHAPTER PI 80 COMMUNITY PROGRAMS AND SERVICES PI 80.01 Purpose. (1)    Under s. 120.13 (19), Stats., the school board of a common or union high school district, a unified school district, or a 1st class city school district may establish and maintain community education, training, recreational, cultural or athletic programs and services, outside of its regular curricular and extracurricular programs for pupils.  (2)    The purpose of this chapter is to define which costs are ineligible under s. 120.13 (19), Stats. PI 80.02 Definitions. In this chapter: (1)    “Community programs and services” does not include:(a) Any program or service that is limited to only school district pupils.(b) Any program or service whose schedule presents a significant barrier for age-appropriate school district residents to participate in the program or service.(2)    “Ineligible costs” means school district costs that are not the actual, additional costs to operate community programs and services under s. 120.13 (19), Stats. “Ineligible costs” includes costs that would be incurred by the school district if the community programs and services were not provided by the school district.Plain language analysis:  Ineligible costs means school district costs that are not the actual, additional costs to operate community programs and services.  First, costs are ineligible if they are not costs to operate community programs and services.  Community programs and services do not include any program that is limited to only school district pupils or any program or service whose schedule presents a significant barrier for age-appropriate school district residents to participate in the program or service.  Second, costs must not only be costs to operate community programs and services to be eligible but also must be actual, additional costs.  Ineligible costs include costs that would be incurred by the school district if the community programs and services were not provided by the school district.

There are no proposals to discuss or review this month. 

The purpose of this agenda item is to discuss the financial plan for the 2014 referendum. Attached please find two documents that outline options for your consideration.

As you know, we already have borrowed the first $10,000,000 of the 2014 referendum during the month of December. Michele Wiburg from PMA, our financial advisors, will be present at the meeting to review the options with the committee. The administration is seeking input from the committee on how to proceed with borrowing the remainder of the funds from the 2014 referendum.  

The purpose of this agenda item is to discuss the building/department carry over funds. Attached please find a document that identifies the carry over funds as of the end of the June 30th, 2014 fiscal year. I have requested information from each building/department administrator as to how they are planning to spend their carry over funds. Please see the responses that I received from each building/department administrator in the column next to the ending balances. 

The purpose of this agenda item is to discuss a 2014 referendum operational funds policy. Attached please find a draft policy that outlines the use of these funds.  The Budget Committee has previously requested that the administration draft a policy that would limit the flexibility of future School Boards to shift funds away from the maintenance and technology departments.  The administration is seeking feedback as to whether or not the draft policy addresses these concerns.