Aiken County Aiken County Public SchoolsPublic Schools

Budget 101Budget 101

2

PRESENTATION INCLUDES:PRESENTATION INCLUDES:

Budget calendarBudget calendar General informationGeneral information Funds Funds Budget typesBudget types Revenue and expendituresRevenue and expenditures In$iteIn$ite Fund balanceFund balance Tax anticipation notes Tax anticipation notes Student projectionsStudent projections Staffing ratios Staffing ratios

3

PRESENTATION INCLUDES:PRESENTATION INCLUDES:

Budget transfersBudget transfers Budget recapBudget recap FlexibilityFlexibility Fund 1Fund 1 8% debt limit8% debt limit 2014-15 recap2014-15 recap District website District website CAFRCAFR Questions and commentsQuestions and comments

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2014-15 BUDGET MEETINGS2014-15 BUDGET MEETINGS

January 20January 20 Budget workshopBudget workshop February 17February 17 Budget workshopBudget workshop March 17March 17 Budget workshopBudget workshop April 21April 21 Preliminary budgetPreliminary budget May 12May 12 Tentative budgetTentative budget June 2June 2 Special called – budget inputSpecial called – budget input June 9June 9 Public hearings – budget/millagePublic hearings – budget/millage June 23June 23 Final budgetFinal budget

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GENERAL INFORMATIONGENERAL INFORMATION

District spans 1,178 square milesDistrict spans 1,178 square miles Includes slight portion of Saluda CountyIncludes slight portion of Saluda County Approximately size of Rhode IslandApproximately size of Rhode Island 5 attendance areas5 attendance areas 66thth largest district in the State in terms of average daily largest district in the State in terms of average daily

membership and weighted pupil units (WPUs) for grades membership and weighted pupil units (WPUs) for grades K5-12 K5-12

Approximately 3,200 employeesApproximately 3,200 employees 22ndnd largest employer in Aiken County largest employer in Aiken County

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GENERAL INFORMATIONGENERAL INFORMATION

District operatesDistrict operates 18 elementary schools18 elementary schools 1 elementary/middle schools1 elementary/middle schools 9 middle schools9 middle schools 1 middle/high1 middle/high 6 high schools6 high schools Career and technology centerCareer and technology center 2 learning centers and parenting center2 learning centers and parenting center

District sponsors three charter schoolsDistrict sponsors three charter schools

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GENERAL INFORMATIONGENERAL INFORMATION

Schools are segregated by level for administrative Schools are segregated by level for administrative purposespurposes Elementary Elementary Middle Middle High High

Elementary schools assigned to one of 2 academic Elementary schools assigned to one of 2 academic officers officers

Middle schools and high schools each assigned to an Middle schools and high schools each assigned to an academic officeracademic officer

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GENERAL INFORMATIONGENERAL INFORMATION

Student enrollment by level 2013-14 135Student enrollment by level 2013-14 135 thth day (grades day (grades K5-12)K5-12) Elementary Elementary 11,17511,175 MiddleMiddle 5,592 5,592 HighHigh 6,697 6,697 CharterCharter 320 320 TotalTotal 23,78423,784

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GENERAL INFORMATIONGENERAL INFORMATION

Schools often referred to by geographic areaSchools often referred to by geographic area Area 1Area 1 Aiken areaAiken area Area 2Area 2 North Augusta areaNorth Augusta area Area 3Area 3 Graniteville, Warrenville, Graniteville, Warrenville,

Clearwater, Clearwater, Gloverville areasGloverville areas Area 4Area 4 Wagener, Salley, Ridge Spring, Wagener, Salley, Ridge Spring,

Monetta areasMonetta areas Area 5Area 5 New Ellenton, Jackson, Beech New Ellenton, Jackson, Beech

Island Island areasareas

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GENERAL INFORMATIONGENERAL INFORMATION

Student enrollment by area 2013-14 135Student enrollment by area 2013-14 135 thth day (grades day (grades K5-12)K5-12) Area 1Area 1 9,264 9,264 Area 2Area 2 5,454 5,454 Area 3Area 3 4,708 4,708 Area 4Area 4 1,825 1,825 Area 5Area 5 2,213 2,213 Charter SchoolsCharter Schools 320 320

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GENERAL INFORMATIONGENERAL INFORMATION

Enrollment – last 10 years at 135Enrollment – last 10 years at 135thth day day

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FUNDSFUNDS

What is a fund?What is a fund? A separate set of accounting recordsA separate set of accounting records Transactions categorized based on the intended Transactions categorized based on the intended

purpose or use of resourcespurpose or use of resources Governmental accountingGovernmental accounting

District uses variety of fundsDistrict uses variety of funds SDE Funding Manual serves as guideSDE Funding Manual serves as guide New funds may be added, old funds maybe removedNew funds may be added, old funds maybe removed

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FUNDSFUNDS

General – “Fund 1”General – “Fund 1” Largest of all fundsLargest of all funds Day to day operationsDay to day operations Activity not recorded in another fund is hereActivity not recorded in another fund is here Revenues – operating property taxes, Education Finance Revenues – operating property taxes, Education Finance

Act (EFA) allocation, etc.Act (EFA) allocation, etc. Expenditures – salaries, payroll taxes, supplies, etc.Expenditures – salaries, payroll taxes, supplies, etc. Most of focus during budget processMost of focus during budget process No subfundsNo subfunds

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FUNDSFUNDS

Special Revenue (Funds 2, 8 and 9)Special Revenue (Funds 2, 8 and 9) Used to account for federal, state (non-EIA), and Used to account for federal, state (non-EIA), and

local resources designated for special purposeslocal resources designated for special purposes Examples of subfundsExamples of subfunds

Title ITitle I IDEAIDEA LotteryLottery Local donations Local donations

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FUNDSFUNDS

Education Improvement Act (Fund 3)Education Improvement Act (Fund 3) Also a special revenue-type fundAlso a special revenue-type fund Programs funded with statewide 1% sales taxPrograms funded with statewide 1% sales tax Examples of subfundsExamples of subfunds

At-risk student learningAt-risk student learning Teacher supply checksTeacher supply checks Aid to districtsAid to districts CDEP (full-day 4K)CDEP (full-day 4K)

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FUNDSFUNDS

Debt Service (Fund 4)Debt Service (Fund 4) Used to account for repayment of bond principal and Used to account for repayment of bond principal and

collection of property taxes used to repay that debtcollection of property taxes used to repay that debt

School Building (Fund 5)School Building (Fund 5) Used to account for projects approved as part of the Used to account for projects approved as part of the

Five Year Facilities PlansFive Year Facilities Plans Subfunds for various projectsSubfunds for various projects

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FUNDSFUNDS

School Food Service (Fund 6)School Food Service (Fund 6) Used to account for SFS operationsUsed to account for SFS operations Dollars cannot supplement District operationsDollars cannot supplement District operations

Pupil Activity (Fund 7)Pupil Activity (Fund 7) Used to account for school-generated revenueUsed to account for school-generated revenue Transactions at school level, not District levelTransactions at school level, not District level Not included in approved budgetNot included in approved budget

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BUDGET TYPESBUDGET TYPES

Classified as operating or non-operatingClassified as operating or non-operating

Operating budgets account for day-to-day operationsOperating budgets account for day-to-day operations General, Special Revenue, EIA, School Food ServiceGeneral, Special Revenue, EIA, School Food Service

Non-operating budgets are associated with activities Non-operating budgets are associated with activities that are long-term in scopethat are long-term in scope Debt Service, School Building Debt Service, School Building

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Three sources for revenueThree sources for revenue

51%

9%40%

Federal

State

Local

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Examples of revenue by sourceExamples of revenue by source Local – property taxes, bond proceeds, interest Local – property taxes, bond proceeds, interest

earnings, donationsearnings, donations State – EFA allocation, EIA allocations, lottery funds, State – EFA allocation, EIA allocations, lottery funds,

student health & fitness allocationsstudent health & fitness allocations Federal – IDEA, Title I, Impact AidFederal – IDEA, Title I, Impact Aid

Federal revenue is lower in percentage and amount Federal revenue is lower in percentage and amount compared to recent years (loss of Stimulus, reductions) compared to recent years (loss of Stimulus, reductions)

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Tax rates – Aiken vs. State average (2012-13 data)Tax rates – Aiken vs. State average (2012-13 data)

176.9

31.5

167.3

135.8

214.8

38.5

0

25

50

75

100

125

150

175

200

225

OperatingMillage

Debt ServiceMillage

Total Millage

Milla

ge R

ate

AikenState Average

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

2012-13 tax rates are most recent posted by SDE2012-13 tax rates are most recent posted by SDE 81 school districts81 school districts 64 school districts had higher operating millage than 64 school districts had higher operating millage than

AikenAiken 66 school districts had higher overall millage than 66 school districts had higher overall millage than

AikenAiken Year 2013-14 information not yet availableYear 2013-14 information not yet available While the value of a mill varies by district, the per-mill While the value of a mill varies by district, the per-mill

cost to the taxpayer is the same.cost to the taxpayer is the same.

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Expenditures often categorized as followsExpenditures often categorized as follows By function By function

The purpose of the expendituresThe purpose of the expenditures Broad categoriesBroad categories

By objectBy object Specific service or good obtainedSpecific service or good obtained

Function/object for operating expenditures – In$ite Function/object for operating expenditures – In$ite categoriescategories

Function/object for total expendituresFunction/object for total expenditures

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Operating expenditures by functionOperating expenditures by function

1%1%

6%

12% 62%18%

Instruction

InstructionalSupport

Operations

SchoolLeadership

ProgramManagement

DistrictLeadership

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Operating expenditures by objectOperating expenditures by object

1%9%

21%65%

4%

Salaries

EmployeeBenefits

PurchasedServices

Supplies &Materials

Capital Outlay(not funds 4/5)

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REVENUES AND REVENUES AND EXPENDITURESEXPENDITURES

Total salaries by functionTotal salaries by function

1%1%

7%

12%67%

12%

Instruction

InstructionalSupport

Operations

SchoolLeadership

ProgramManagement

DistrictLeadership

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IN$ITEIN$ITE

In$ite is used by the SDEIn$ite is used by the SDE Provides a district’s breakdown of expenditures and allows for Provides a district’s breakdown of expenditures and allows for

apples to apples comparison to other districtsapples to apples comparison to other districts Categories include sub-categoriesCategories include sub-categories

InstructionInstruction Instructional supportInstructional support OperationsOperations Other commitmentsOther commitments LeadershipLeadership

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IN$ITEIN$ITE

Based on most recent information (FY 2013)Based on most recent information (FY 2013)

““Operating only” does not include debt service/capital Operating only” does not include debt service/capital outlayoutlay

Aiken’s annual spending would be $21 million higher if Aiken’s annual spending would be $21 million higher if it were on par with districts like oursit were on par with districts like ours

Per Pupil Per Pupil SpendingSpending AikenAiken

State State

AverageAverage

Like Districts’ Like Districts’

AverageAverage

Operating onlyOperating only $ 8,241$ 8,241 $ 9,415$ 9,415 $ 9,114$ 9,114

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FUND BALANCEFUND BALANCE

What is fund balance?What is fund balance? Assets minus liabilities; not equal to Assets minus liabilities; not equal to cash on handcash on hand Net inflows less net outflows over timeNet inflows less net outflows over time $26 million at June 30, 2014$26 million at June 30, 2014

Why it is important – Why it is important – ““Rainy day” or emergency fundsRainy day” or emergency funds Demonstrates financial stabilityDemonstrates financial stability Can reduce or eliminate short-term borrowings (TANs)Can reduce or eliminate short-term borrowings (TANs) Fund balance policy adopted by the BoardFund balance policy adopted by the Board

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TAX ANTICIPATION NOTESTAX ANTICIPATION NOTES

What are TANs?What are TANs? Short term financingShort term financing Repaid with interest before year endRepaid with interest before year end

Why issue TANs?Why issue TANs? Outflows consistent throughout the year, inflows are notOutflows consistent throughout the year, inflows are not Most property tax revenue received mid-yearMost property tax revenue received mid-year Cannot operate on cash basis at current fund balance Cannot operate on cash basis at current fund balance

levellevel

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TAX ANTICIPATION NOTESTAX ANTICIPATION NOTES

Why does Aiken County Schools issue TANs?Why does Aiken County Schools issue TANs?

(12)(8)(4)048

12162024

BE

G

JUL

AU

G

SEP

OC

T

NO

V

DE

C

JAN

FE

B

MA

R

APR

MA

Y

JUN

Month

Million

s ($

)

Fund Balance + Cash Flows

32

STUDENT PROJECTIONSSTUDENT PROJECTIONS

One of first tasks on budget calendarOne of first tasks on budget calendar Largely the foundation for the budgetLargely the foundation for the budget Will be used to determine teacher allocations and school Will be used to determine teacher allocations and school

staffing ratiosstaffing ratios Used to estimate EFA allocationUsed to estimate EFA allocation Preliminary figures based on 45Preliminary figures based on 45thth day counts day counts Use historical data and birth ratesUse historical data and birth rates Consider significant spikes and dipsConsider significant spikes and dips Kindergarten and 1Kindergarten and 1stst grade generally most difficult grade generally most difficult

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STUDENT PROJECTIONSSTUDENT PROJECTIONS

Feeder school splits sometimes difficultFeeder school splits sometimes difficult Important to be conservativeImportant to be conservative Review for reasonableness Review for reasonableness Receive feedback from principals and school officialsReceive feedback from principals and school officials Generally reasonable, but not exactGenerally reasonable, but not exact Review class-by-class counts at days 3 and days 11Review class-by-class counts at days 3 and days 11

Shift staff within a school or between schoolsShift staff within a school or between schools Additional hires, if necessary Additional hires, if necessary

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STUDENT PROJECTIONSSTUDENT PROJECTIONS

Example Calculation

Fiscal Year 5 6 7 8 TotalFY 14/15 195 203 184 582

Actual 45-day ADM

FY 13/14 207.42 201.24 194.18 199.36 594.78 FY 12/13 202.46 200.80 198.98 196.58 596.36 FY 11/12 214.21 205.73 223.76 183.44 612.93 FY 10/11 219.23 215.20 213.13 198.96 627.29 FY 09/10 239.71 201.31 190.51 245.73 637.55

Student Advancement Ratios

FY 13/14 0.99 0.97 1.00 FY 12/13 0.94 0.97 0.88 FY 11/12 0.94 1.04 0.86 FY 10/11 0.90 1.06 1.04 FY 09/10 0.96 0.97 0.96

Five Year Avg 0.94 1.01 0.95

Grade

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STAFFING RATIOSSTAFFING RATIOS

Enrollment projections used to allocate most school staffEnrollment projections used to allocate most school staff Assistant principalsAssistant principals ClericalClerical GuidanceGuidance Media specialists and aidesMedia specialists and aides

ExceptionsExceptions Each school has a principal and one clerical staff member Each school has a principal and one clerical staff member

regardless of sizeregardless of size Custodial allocation based on square footageCustodial allocation based on square footage

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STAFFING RATIOSSTAFFING RATIOS

Grade > 400 < 400

K 25 to 1 25 to 11st 18 to 1 18 to 12nd - 3rd 23 to 1 21 to 14th - 5th 25.5 to 1 25.5 to 1

> 500 300 - 500 < 300

6th 28.5 to 1 27.5 to 1 24.5 to 17th 27.5 to 1 26.5 to 1 23.5 to 18th 29.5 to 1 28.5 to 1 24.5 to 1

> 800 600 - 800 < 6009th - 12th 31.5 to 1 30 to 1 28.5 to 1

Enrollment

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BUDGET TRANSFERSBUDGET TRANSFERS

Schools/departments are provided some budget discretion by Schools/departments are provided some budget discretion by Board policyBoard policy

Principals/department heads can transfer up to $1,500 Principals/department heads can transfer up to $1,500 School transfers between $1,500 and $3,000 also require School transfers between $1,500 and $3,000 also require

approval of Academic Officerapproval of Academic Officer Budget transfer between $3,000 and $5,000 require Budget transfer between $3,000 and $5,000 require

Superintendent approvalSuperintendent approval The above must have no net budget effect and cannot affect The above must have no net budget effect and cannot affect

salaries, fringe, or utilities.salaries, fringe, or utilities. Transfers in excess of $5,000 require Board approvalTransfers in excess of $5,000 require Board approval

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BUDGET RECAPBUDGET RECAP

2008-092008-09 No step increase for non-teachersNo step increase for non-teachers Eliminated two coordinator positions at BrookhavenEliminated two coordinator positions at Brookhaven Phased out CAI lab aide positionsPhased out CAI lab aide positions No longer contributed to Camp Long projectNo longer contributed to Camp Long project Fund 1 no longer allocated to parenting programFund 1 no longer allocated to parenting program Reduced vehicle replacement budgetReduced vehicle replacement budget Cut supplies and travel mid-yearCut supplies and travel mid-year Avoided furloughsAvoided furloughs

39

BUDGET RECAPBUDGET RECAP

2009-102009-10 No step or cost of living increase for non-teachersNo step or cost of living increase for non-teachers Increased pupil-teacher ratiosIncreased pupil-teacher ratios Eliminated signing bonuses for new teachersEliminated signing bonuses for new teachers Eliminated playoff supplementsEliminated playoff supplements Eliminated 17 positions at BrookhavenEliminated 17 positions at Brookhaven Reduced Fund 1 travel by 50%Reduced Fund 1 travel by 50% Reduced band matching fees by 50%Reduced band matching fees by 50% Phase out of International Baccalaureate commencedPhase out of International Baccalaureate commenced

40

BUDGET RECAPBUDGET RECAP

2009-10 Continued2009-10 Continued Reduced drivers education to one periodReduced drivers education to one period Modified alternative education programModified alternative education program Eliminated intramural supplementEliminated intramural supplement Reduced budgets for technology and maintenanceReduced budgets for technology and maintenance Furloughed employeesFurloughed employees Increased taxes by 4.3 mills netIncreased taxes by 4.3 mills net

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BUDGET RECAPBUDGET RECAP

2010-112010-11 No step or cost of living increase for any employeesNo step or cost of living increase for any employees No furloughsNo furloughs Suspended drivers education programSuspended drivers education program Increased 1Increased 1stst grade PTR while decreasing 4 grade PTR while decreasing 4thth and 5 and 5thth Funded full-time registrars at each high schoolFunded full-time registrars at each high school No longer paying half of PSATNo longer paying half of PSAT Last full year of Federal stimulus dollarsLast full year of Federal stimulus dollars Decreased taxes by 3.5 mills netDecreased taxes by 3.5 mills net

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BUDGET RECAPBUDGET RECAP

2011-122011-12 Step increase for teachers, 1% cost of living for other Step increase for teachers, 1% cost of living for other

employeesemployees Continued funding of reading interventionistsContinued funding of reading interventionists Closed area officesClosed area offices Eliminated one administrator and one clerical positionEliminated one administrator and one clerical position Fund 1 travel budgets restoredFund 1 travel budgets restored Increased janitorial allocationIncreased janitorial allocation Increased Fund 1 technology budgetIncreased Fund 1 technology budget

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BUDGET RECAPBUDGET RECAP

2011-12 - Continued2011-12 - Continued Funding 9Funding 9thth grade academies at three high schools grade academies at three high schools Funding in-school suspension supervisors at middle Funding in-school suspension supervisors at middle

schoolsschools Absorbed reductions in certain State allocationsAbsorbed reductions in certain State allocations Net tax increase of 2.1 mills Net tax increase of 2.1 mills Tax increase enabled to restructure debt service Tax increase enabled to restructure debt service

payments and issue additional $2 million for capital payments and issue additional $2 million for capital projectsprojects

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BUDGET RECAPBUDGET RECAP

2011-12 - Continued2011-12 - Continued Approved additional mid-year expenditures resulting from Approved additional mid-year expenditures resulting from

growth in fund balance and need at schoolsgrowth in fund balance and need at schools $500,000 for furniture replacement$500,000 for furniture replacement $400,000 for instructional supplies$400,000 for instructional supplies $50,000 for custodial supplies$50,000 for custodial supplies $25,000 for athletics$25,000 for athletics $25,000 for band $25,000 for band All are of above were All are of above were nonnon-recurring-recurring

45

BUDGET RECAPBUDGET RECAP

2012-132012-13 Step + 2% increase for teachers, 4% increase for assistant Step + 2% increase for teachers, 4% increase for assistant

principals, 2% increase for all others principals, 2% increase for all others Funding shifts in 4 instructional and 1.5 instructional support Funding shifts in 4 instructional and 1.5 instructional support

positionspositions Funding for a fourth 9Funding for a fourth 9thth grade academy grade academy Creation of 3 curriculum coach positionsCreation of 3 curriculum coach positions Additional allocations for CATEAdditional allocations for CATE Loss of Education Foundation SupplementLoss of Education Foundation Supplement Net tax increase of 4.2 millsNet tax increase of 4.2 mills

46

BUDGET RECAPBUDGET RECAP

2012-13 - Continued2012-13 - Continued Created new technology positionCreated new technology position Additional teacher allocations for strings and East Additional teacher allocations for strings and East

Aiken School of the ArtsAiken School of the Arts Upgraded a vacant, classified accounting positionUpgraded a vacant, classified accounting position Provided full-time attendance clerks at 3 high schoolsProvided full-time attendance clerks at 3 high schools Non-recurring technology dollarsNon-recurring technology dollars Non-recurring dollars for advanced placement program Non-recurring dollars for advanced placement program

47

BUDGET RECAPBUDGET RECAP

2013-142013-14 Step for teachersStep for teachers 4% increase for SFS managers (SFS Fund)4% increase for SFS managers (SFS Fund) 1% one-time bonus for employees not receiving raises1% one-time bonus for employees not receiving raises $50,000 for high school athletics transportation$50,000 for high school athletics transportation Model school costs at North AikenModel school costs at North Aiken Building closure during winter breakBuilding closure during winter break Additional homebound teacher (approved after original Additional homebound teacher (approved after original

adoption)adoption)

48

BUDGET RECAPBUDGET RECAP

2014-152014-15 Step for all employeesStep for all employees Funding for Freshman Academy at Aiken HighFunding for Freshman Academy at Aiken High Creation of science curriculum specialistCreation of science curriculum specialist Funding for a drama and a dance teacher at East Aiken Funding for a drama and a dance teacher at East Aiken

ElementaryElementary Two additional ESOL teachersTwo additional ESOL teachers Revision of formulas for allocating assistant principals and Revision of formulas for allocating assistant principals and

middle and high schoolsmiddle and high schools

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BUDGET RECAPBUDGET RECAP

2014-15 - Continued2014-15 - Continued Increased bus driver pay by 2% (plus step)Increased bus driver pay by 2% (plus step) Funding for additional HR department positionFunding for additional HR department position Funding for Read to Succeed literacy coordinatorFunding for Read to Succeed literacy coordinator Increased substitute teacher pay by $2 per dayIncreased substitute teacher pay by $2 per day Increased budgets for janitorial supplies by $4 per pupil Increased budgets for janitorial supplies by $4 per pupil

(one year only)(one year only) Increased budgets for copier supplies by $4 per pupil (one Increased budgets for copier supplies by $4 per pupil (one

year only)year only)

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BUDGET RECAPBUDGET RECAP

2014-15 - Continued2014-15 - Continued Allocated $250,000 for athletics (one-time only)Allocated $250,000 for athletics (one-time only) Will participate in Child Development Education

Program (CDEP), shifting from half-day 4K program to full-day program [State funded]

No change in operating or debt service millage

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FLEXIBILITYFLEXIBILITY

Legislation to cope with budget reductionsLegislation to cope with budget reductions Can transfer many State allocations to other funds as Can transfer many State allocations to other funds as

neededneeded Can suspend professional staffing ratiosCan suspend professional staffing ratios Can uniformly negotiate salaries with retireesCan uniformly negotiate salaries with retirees 75% rule must be met75% rule must be met Quarterly reportsQuarterly reports

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FUND 1FUND 1

Largest fundLargest fund $171.2 million original budget$171.2 million original budget Two-thirds of total District expendituresTwo-thirds of total District expenditures Most local funding reflects property tax revenueMost local funding reflects property tax revenue State allocations gradually increasing since 2012-13 after State allocations gradually increasing since 2012-13 after

several years of declineseveral years of decline State revenue $106.4 million in 2007-08State revenue $106.4 million in 2007-08 Expected State revenue $106.0 million in 2014-15, up Expected State revenue $106.0 million in 2014-15, up

from $100.8 million in 2013-14 from $100.8 million in 2013-14

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FUND 1FUND 1

Property taxesProperty taxes Operating millage increase is cappedOperating millage increase is capped Caps vary by districtCaps vary by district Change in consumer price index + populationChange in consumer price index + population Three year “look back”Three year “look back”

Fees in lieu of tax are negotiated by CountyFees in lieu of tax are negotiated by County Education Finance Act (EFA) is largest State allocationEducation Finance Act (EFA) is largest State allocation

Formula uses base student cost (BSC), weighted pupil units Formula uses base student cost (BSC), weighted pupil units (WPU), and index for taxpayer ability (ITA)(WPU), and index for taxpayer ability (ITA)

54

FUND 1FUND 1

BSC - ESTIMATE VS. FUNDED

14671539

16101651

17181778

18391879

19372012

20732133

220122342290

2367

2476

2578

26872720

2790

15811619

16811750

1830

2002

1881

1754

1852

1765

1617

1880

2742

27902771

16521604

2120

15321505

2191

2101

2012

1770

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

SCHOOL YEAR

BSC

Estimate

Funded

55

FUND 1FUND 1

RevenueRevenue SourceSource 2014-15 Budget2014-15 Budget

Property taxesProperty taxes LocalLocal $ 48,860,778$ 48,860,778

Delinquent taxes Delinquent taxes LocalLocal 3,200,0003,200,000

Fees in lieu of taxFees in lieu of tax LocalLocal 6,000,0006,000,000

Other local revenue Other local revenue LocalLocal 120,000120,000

Education Finance ActEducation Finance Act StateState 50,892,25350,892,253

Fringe benefitsFringe benefits StateState 25,329,73925,329,739

Property tax reliefProperty tax relief StateState 28,714,13328,714,133

School bus driversSchool bus drivers StateState 1,090,6291,090,629

Other state revenueOther state revenue StateState 17,00017,000

Impact AidImpact Aid FederalFederal 90,00090,000

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FUND 1FUND 1

RevenueRevenue SourceSource 2014-15Budget2014-15Budget

Transfer from EIA – Teacher Salary Transfer from EIA – Teacher Salary Supplement and TSI FringeSupplement and TSI Fringe State/TransferState/Transfer 4,189,7424,189,742

Transfer from EIA and Special Revenue – Transfer from EIA and Special Revenue – FlexFlex State/TransferState/Transfer 1,580,2841,580,284

Indirect CostsIndirect Costs TransferTransfer 700,000700,000

Non-recurring items (one-time use)Non-recurring items (one-time use) Fund BalanceFund Balance 446,000446,000

TotalTotal $ 171,230,558$ 171,230,558

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FUND 1FUND 1

ExpenditureExpenditure 2014-15 Budget2014-15 Budget

SalariesSalaries $ 114,085,684$ 114,085,684

Payroll taxes/fringe benefits (incl w/c)Payroll taxes/fringe benefits (incl w/c) 42,026,30642,026,306

Purchased services (incl utilities)Purchased services (incl utilities) 9,386,1469,386,146

Supplies and materialsSupplies and materials 3,280,1293,280,129

Payments to charter schoolsPayments to charter schools 2,174,7112,174,711

OtherOther 277,582277,582

TotalTotal $ 171,230,558$ 171,230,558

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8% LIMIT8% LIMIT

General obligation debt limited to 8% of tax baseGeneral obligation debt limited to 8% of tax base General obligation debt currently used to finance projects General obligation debt currently used to finance projects

in the Five Year Facilities Planin the Five Year Facilities Plan Bond capacity (i.e., the amount of general obligation debt Bond capacity (i.e., the amount of general obligation debt

that can be issued within the 8% limit) can increasethat can be issued within the 8% limit) can increase Growth in tax baseGrowth in tax base Pay off debt quickerPay off debt quicker

To exceed the 8% limit would require a successful bond To exceed the 8% limit would require a successful bond referendumreferendum

59

8% LIMIT8% LIMIT

Assessed value of propertyAssessed value of property $ 600,000,000

8% of above8% of above 48,000,00048,000,000

Less Year 1 bonds – unpaidLess Year 1 bonds – unpaid - 3,000,000- 3,000,000

Less Year 2 bonds - unpaidLess Year 2 bonds - unpaid - 6,000,000- 6,000,000

Less Year 3 bonds - unpaidLess Year 3 bonds - unpaid - 9,000,000- 9,000,000

Less Year 4 bonds – unpaidLess Year 4 bonds – unpaid - 12,000,000- 12,000,000

Bond capacity – Year 5 bonds availableBond capacity – Year 5 bonds available $ 18,000,000$ 18,000,000

This This exampleexample shows that $18 million in general shows that $18 million in general

obligation debt could be issued within the debt limit.obligation debt could be issued within the debt limit.

60

2015-16 BUDGET2015-16 BUDGET

Considerations and unknownsConsiderations and unknowns BSCBSC Changes in SC allocations – more?/less?Changes in SC allocations – more?/less? Changes in flexibilityChanges in flexibility Cap on operating millageCap on operating millage 3 year look back on operating millage3 year look back on operating millage Education finance reform/SCJET Education finance reform/SCJET Reduction in federal dollarsReduction in federal dollars

61

2015-16 BUDGET2015-16 BUDGET

Considerations and Unknowns - ContinuedConsiderations and Unknowns - Continued Teacher step + cost of living increaseTeacher step + cost of living increase Health insurance premiumsHealth insurance premiums Retirement contribution ratesRetirement contribution rates Charter school fundingCharter school funding Budget inputBudget input OtherOther

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DISTRICT WEBSITEDISTRICT WEBSITE

Financial information at Financial information at www.aiken.k12.sc.us on homepage on homepage Monthly transparency reports Monthly transparency reports Audited financial statements/CAFRsAudited financial statements/CAFRs Budget informationBudget information Flexibility Flexibility Five Year Facilities PlanFive Year Facilities Plan Administrative cost reportingAdministrative cost reporting Other finance-related infoOther finance-related info

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COMPREHENSIVE ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORTFINANCIAL REPORT

CAFR for shortCAFR for short Exceeds the minimum financial reporting requirementsExceeds the minimum financial reporting requirements Goal – transparency and to receive GFOA/ASBO Certificates Goal – transparency and to receive GFOA/ASBO Certificates

of Excellenceof Excellence What is different?What is different?

Transmittal letterTransmittal letter Formally presents the CAFR to usersFormally presents the CAFR to users Gives profile of the District and other infoGives profile of the District and other info Lists awards and acknowledgementsLists awards and acknowledgements

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COMPREHENSIVE ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORTFINANCIAL REPORT

Organizational chartOrganizational chart Listing board members and administrationListing board members and administration Statistical dataStatistical data

Summarized financial statementsSummarized financial statements Tax informationTax information Debt informationDebt information DemographicsDemographics FacilitiesFacilities

CAFR due to GFOA/ASBO by December 31CAFR due to GFOA/ASBO by December 31

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NOTE:NOTE:

PLEASE VISIT THE DISTRICT’S HOMEPAGE, PLEASE VISIT THE DISTRICT’S HOMEPAGE, THEN CLICK THE BUDGET INPUT LINK TO THEN CLICK THE BUDGET INPUT LINK TO

PROVIDE COMMENTS AND SUGGESTIONS ON PROVIDE COMMENTS AND SUGGESTIONS ON THE 2015-16 BUDGET. THE 2015-16 BUDGET.