MISSOURI’S FOUNDATION FORMULA & JCPS PRELIMINARY BUDGET

1. MISSOURI’S FOUNDATION FORMULA & JCPS PRELIMINARY BUDGET

2. 1st Step in School Budgeting • Amend Current Year Budget • Most of the budget repeats • 77% of Revenues from Property Taxes, Prop C, and Basic Formula • 83% of Expenses in Salary and Benefits • Then Determine What Will Be Different Next Year

3. Amended FY13 Budget • Original Budget called for $1,232,000 deficit • 24.8% Fund Balance • After 3 amendments, currently $870,000 deficit • 25.7% Fund Balance

4. Funding Formula-Current State • Calculated State Adequacy Target • FY 12 - $6,131 • FY 13 - $6,423 • FY 14 - $6,716 • No guidance in law on how to handle underfunding once the formula phase-in period ended. • Formula fully phased in after FY12 • General Assembly did not address this last year which left the decision to DESE.

5. DESE Ruling on Distribution of Formula • Keep SAT at $6,131 until Proration is 100% • Calculated SAT $6,423 in FY14 • All districts get equal percentage increases as proration rises • After Proration is 100% then SAT can rise. • FY12 Proration = 92.5% • FY12-Formula is over $450 million underfunded

6. WADA Threshold Changes Even though we gained 213 students our WADA count goes down by 13. We will be paid on the prior year. JCPS misses out on over $1,200,000 in funding for those 213 students, if the thresholds did not change

7. BASIC FORMULA-FY 14 • Calculated SAT increases over 4.5% • $6,716 • Payment SAT remains at $6,131 • Governor recommended $66 million increase • Moves proration to 95% • Because of higher SAT • $600 million underfunded

8. FY14 PRELIM BUDGET-Revenue Changes

9. FY14 PRELIM BUDGET-Expense Changes

10. FY14 PRELIM BUDGET-Fund Balance

12. SUMMARY FEDERAL SEQUESTRATION IS MAJOR REVENUE QUESTIONMARK. CHANGES MADE IN HEALTH INSURANCE, RETIREMENT, & TRANSPORTATION HAVE BEEN HUGE IN ALLOWING US TO MAINTAIN OUR CURRENT LEVELS OF EDUCATION DISTRICT’S FISCAL POSITION REMAINS SOLID