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Lincoln County Schools Coffee Talk

Lincoln County Schools Coffee Talk. April 7, 2010. Program guidelines. Coffee Talk is a moderated forum of questions and answers. All questions will be accepted in written form on the note cards provided. Program guidelines.

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Lincoln County Schools Coffee Talk

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  1. Lincoln County SchoolsCoffee Talk April 7, 2010

  2. Program guidelines • Coffee Talk is a moderated forum of questions and answers. • All questions will be accepted in written form on the note cards provided.

  3. Program guidelines • This forum will address questions dealing ONLY state budget impact on Lincoln County Schools. • Issues surrounding specific incidents or items will be addressed in a separate venue by appointment only.

  4. Program format • All districts will present information about the state budget impact on local school district finances • Attendants can ask general questions about the topic presented affecting ALL Lincoln County Schools • Districts will then break out in individual sessions for presentations and questions and answers affecting your school district

  5. Why are we here? • To make the public aware of the current financial crisis facing the State of Missouri and ALL Lincoln County schools • To present facts concerning the issues surrounding budgets and the economy • To clarify current information and future budget implications

  6. Impact of Budget Crisis

  7. Initial state projections • State information provided in February • Expect a 2% withholding from ALL schools • Elsberry $72,705 • Silex $29,071 • Troy $437,904 • Winfield $126,334

  8. Updated March projections • State added two more possible options • Reduce $65 per student • Revert to fiscal year 2006 funding levels for ALL schools

  9. Latest FY 2010 State Withholdings • Last week the senate voted (HB 2014) to protect hold harmless schools from the latest withholdings • Hold Harmless is a designation based on a state calculation that guarantees that no school will get less funding on a new formula than they did on the previous formula • This action means schools who are not Hold Harmless, which includes ALL Lincoln County Schools, will receive bigger state withholdings Withholdings Elsberry $156,659 Silex $59,874 Troy $1,258,358 Winfield $261,422

  10. Current Reality for Lincoln County Schools Schools that ARE NOT Hold Harmless spend an average of $8,364 per student. Lincoln County Schools spend… Troy $6,938 Elsberry $7,268 Winfield $7,464 Silex $7,584

  11. Impact of HB 2014 • The average school that is NOT Hold Harmless could lose $92 per student • The Lincoln County Schools could lose… Troy $205 per student Elsberry $193 per student Winfield $174 per student Silex $155 per student HOLD HARMLESS Schools stand to lose $0 per student

  12. Sources of Revenue

  13. State funding facts • State revenue is based on a thriving economy • Income and sales taxes • Fiscal Year 2010 (FY 10) • Net individual income tax = -13.9% • Net sales tax = - 6.6% • Net corporate income tax = - 44.2%

  14. State funding facts • State General Revenue (FY10) fund is down Missouri’s Net General Revenue= - 12.7%

  15. State funding facts • State budget = May 14 • All local decisions associated with state funding may be delayed or anticipated due to this date

  16. State funding facts All four districts stand to lose a total of $1.59 millionin fiscal year revenue

  17. State funding facts • FY 2011 an expected $300-500 million in revenue shortfall • FY 2011 – Only $218 million available in stimulus money to fund the shortfall

  18. Major Tax Changes That Impacted Individual Income Tax 18 James R. Moody & Associates

  19. Major Foregone Sales Tax To GR Due To Exemptions or Earmarks 19 James R. Moody & Associates

  20. Funding reality 2009-2010 Versus 2010-2011

  21. Local funding facts • All of four districts have spent down reserves • All four districts will have limited ability to spend down reserves in the coming years • All four districts have government required expenditures • Special education, professional development, Title I, etc

  22. Local funding facts • All four districts have experienced a plateau or decrease in assessed value growth • Assessed value directly impacts the amount of local dollars available for schools • Assessed value (tax base) x tax rate = local dollars available for students

  23. Funding follies • Gambling money • 1986 – gambling proceeds are funneled to Missouri schools • Gambling proceeds were simply placed in the State General Revenue • Gambling proceeds replaced original funding, which was funneled to other state entities • Proposition A – Proceeds used as part of foundation formula • No gaming revenues have actually increased school funding

  24. Questions?

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