MARSHALL PUBLIC MARSHALL PUBLIC SCHOOL DISTRICTSCHOOL DISTRICT

Board of EducationBoard of Education School Finance and Budget WorkshopSchool Finance and Budget Workshop

Dr. Carol Maher, SuperintendentDr. Carol Maher, Superintendent

November 13, 2014November 13, 2014

MarshallMarshallDistrict Report CardDistrict Report Card

2011 2012 2013 2014

Preschool Enrollment 87 109 107 104

K-12 Enrollment 2,457 2,359 2,389 2,431

Attendance Rate* - Marshall 89.8% 90.7% 91.1% 90.5%

Attendance Rate* - MHS 84.6% 86.8% 89.6% 85.8%

Attendance Rate* - BMS 93.4% 94.9% 93.4% 94.0%

Attendance Rate* - Elementary 91.1% 90.35% 90.60% 91.67%

Graduation %age - (MO/Marshall) 78.59/86.51 83.69/82.39 85.73/90.16 87.34/88.59

ACT Average – (MO/Marshall) 21.60/20.10 21.60/20.90 21.60/19.80 21.80/20.60

Poverty Rate 62.2% 65.2% 62.9% 61.0%

*Percent of students who attend more than 90% of the time.

Teachers to Students Missouri 2011 2012 2013 2014 1:18 1:18 1:18 1:18

Marshall 2011 2012 2013 2014 1:20 1:19 1:18 1:20

Missouri 2011 2012 2013 2014 1:195 1:195 1:195 1:195

Marshall 2011 2012 2013 2014 1:228 1: 210 1: 222 1:270

Administrators to Students

Teacher and Admin Salaries

2014 Average Teacher Salary 2014 Average Administrator Salary

Missouri $46,754 $87,181

MARSHALL $40,867 (13% less) $72,546 (17% less)

2014 Average Years Experience Teachers with Advanced Degrees

Missouri 12.3 59%

MARSHALL 13.2 68%

FUNDING SOURCES FUNDING SOURCES

Local (Local (personal property taxespersonal property taxes) = ) = 46%

County (County (fines and forfeituresfines and forfeitures) = 0%*) = 0%*

State (State (funding formulafunding formula) = ) = 44%

Federal (Federal (Free and Reduced RateFree and Reduced Rate) = ) = 10%* County collections apprx = $200,000* County collections apprx = $200,000

FEDERAL FUNDINGFEDERAL FUNDING

Title 1.A: Based on district’s free and reduced

count

Title 1.C: Education of Migrant Children

Title 1.D: Education for Delinquent and At Risk

Title II.A: Teacher and Principal Recruitment

and Retention Title III: Instruction for Limited English Proficiency Title VI: REAP Rural Education

STATE FUNDINGSTATE FUNDINGDEFINITIONSDEFINITIONS

• State Funding Formula State Funding Formula • State Adequacy Target = $6,131State Adequacy Target = $6,131• WADA – Weighted Average Daily Attendance WADA – Weighted Average Daily Attendance (paid extra for students on F & R, IEP’s, ELL)(paid extra for students on F & R, IEP’s, ELL)• DVM - Dollar Value Modifier (Marshall = 1.006)DVM - Dollar Value Modifier (Marshall = 1.006)• Pro-Ration Factor (.96, will budget for .94)Pro-Ration Factor (.96, will budget for .94)• Classroom Trust Fund – Gaming Money (Classroom Trust Fund – Gaming Money ($401/ADA$401/ADA))• Free Textbook Fund (no longer a line item, but Free Textbook Fund (no longer a line item, but

deposited into General Fun) – Foreign Insurancedeposited into General Fun) – Foreign Insurance• Fines & Forfeitures (county, usually above Fines & Forfeitures (county, usually above

$200,000)$200,000)

                

Weighted ADA   

Multiplied by State Adequacy Target ($6,131)

Minus Local Effort

Multiplied by Dollar Value Modifier (1.006)

Equals State Funding Required

Minus Bond Redirect (not in Marshall)

 

 

State Funding (The Funding Formula)

•Residency•Sunshine Law•Background checks•Mandated reporting •Sex education instruction •Fair Labor Standards Act•Family Medical Leave•Safe Schools Act •School Prayer•Sexual Harassment

SCHOOL FINANCELegal Requirements for State Funding

• MINIMUM SCHOOL HOURS AND DAYS – Students must be in session 174 days. Length of staff year is local decision. The length of the school day must be 3 hrs., with a total of 1044 hours.

• VIRTUAL SCHOOL ATTENDANCE - For the school year beginning July 1, 2008, a parent residing in a lapsed, or poor performing school district may enroll their child in the Missouri virtual school if the child first enrolls in the school district of residence.

• SCHOOL OPENING DAY - Cannot be earlier than ten days prior to Labor Day. A district may set an opening date that is more than ten calendar days with proper procedures.

• MAKE-UP DAYS - The annual calendar for the school term, as prepared by the school board, is required to include six make-up days. A district shall be required to make up the first six days of school lost or canceled due to inclement weather and half the number of days lost or canceled in excess of six days.

Legal Requirements for State Funding

Assessed Valuation (highest of last 3 years) 1. Property taxes:

Real Estate - Residential: 17% - Rural: 12% - Commercial: 33% 2. Personal Property taxes (includes industrial equipment)

Local Funding

Eliminated from separate posting, but included in State Adequacy Target:

• Fair share – Cigarette tax

• Free textbook – Foreign Insurance Money

Deductions for Local Effort

• Local Taxes• State Assessed Railroad and Utilities • Federal Impact Aid• Proposition C (Sales Tax=$901/WADA)

• Classroom Trust Fund • Fines and Forfeitures

Deductions for Local Effort

Fund 1: INCIDENTAL OR OPERATING FUND Levy is assessed

Fund 2: TEACHERS’ FUND Levy is assessed in most districts

Fund 3: DEBT SERVICE Levy is assessed to pay back borrowed money

Fund 4: BUILDING OR CAPITAL PROJECTS FUND Levy is usually not assessed. Money does not run through formula

SCHOOL FINANCEAccounting

The Four Funds

5 Year Comparison of Financial Components

WADASTATE

FORMULAPER STUDENT

PAYMENT

2010 – 2011 2540 $8,921,202 (.96) $3603

2011 – 2012 2587 (+47) $8,857,321 (.92) $3720

2012 – 2013 2594 (+7) $9,250,062 (.93) $3851

2013 – 2014 2572 (-22) $9,009,036 (.93) $3802

2014 – 2015 2560 (-12) $9,371,858 (.96) $3814

2015 - 2016 2550 (-10) (?) $9,027,732 (.96) (?) $3540 (?)

FINANCIAL FINANCIAL CONSIDERATIONSCONSIDERATIONS

5111 & 5112 Revenue Current Tax

Delinquent Tax Total Property Tax

Budget Change

FY 2013-14 Actual $4,589,330 $325,262 $4,914,918 

2014 AV x Tax

Rate100%

$5,024,629 

 $5,024,629 + $109,711

2014 AV x Tax Rate 99% $4,974,383 

 $4,974,383 + $59,465

Comparison of Area Schools’ Base Teacher Pay

MARSHALL = $31,250 ENROLLMENT = 2535CITY BASE PAY COMPARE ENROLLMENT

Sedalia $32,644 +$1394 4836

Sweet Springs $31,612 +$362 456

Carrollton $32,000 +$750 848

Odessa $33,250 +$2000 2065

Excellsor Sprgs $34,691 +$3441 2690

Kirksville $35,000 +$3750 2425

Moberly $34,342 +$3092 2313

Fulton $31,830 +$580 2164

Boonville $30,000 -$250 1544

Mexico $31,000 -$150 2276

Lexington $29,600 -$1650 881

Financial ConsiderationsFinancial Considerations2014 – 2015:2014 – 2015:• School Finance at DESE is predicting a proration factor School Finance at DESE is predicting a proration factor

higher than last year. 100% funding = 1.0. Currently, 96%higher than last year. 100% funding = 1.0. Currently, 96%• A “healthy” fund balance is considered to be between 17 A “healthy” fund balance is considered to be between 17

and 25 percent. Last year, ours was at and 25 percent. Last year, ours was at 19%19%. With a tax . With a tax levy at $3.12, the fund balance is probably as high as it can levy at $3.12, the fund balance is probably as high as it can go. go.

• Sales taxes are predicted to remain steady or decrease Sales taxes are predicted to remain steady or decrease slightly.slightly.

• Without the construction of the pipeline (added $$ for new Without the construction of the pipeline (added $$ for new construction), the tax rate would have been $3.03. New construction), the tax rate would have been $3.03. New construction is a one year increase. That would have been a construction is a one year increase. That would have been a loss of approximately $155,000. loss of approximately $155,000.

• Increase in utilities from the pipeline will cause state Increase in utilities from the pipeline will cause state formula money to decrease. formula money to decrease.

Financial ConsiderationsFinancial Considerations• Student safety issues include making sure doors, Student safety issues include making sure doors,

windows, and cameras are secure. windows, and cameras are secure. • Entrances to buildings needs to be upgraded with Entrances to buildings needs to be upgraded with

safety glass and other safeguards so building is safety glass and other safeguards so building is secure. secure.

• Text, Twitter, Instagram, other social media, and Text, Twitter, Instagram, other social media, and phone system need to be upgraded and used to phone system need to be upgraded and used to enhance and improve the safety alert system across enhance and improve the safety alert system across the district. the district.

• Sidewalks and drives need to be improved to serve Sidewalks and drives need to be improved to serve as efficient means for access by emergency services. as efficient means for access by emergency services. District officials are joining with Marshall city District officials are joining with Marshall city officials to write a grant for this type of funding. officials to write a grant for this type of funding.

Financial ConsiderationsFinancial Considerations• Salaries and benefits are 83% - 87% of schools’ Salaries and benefits are 83% - 87% of schools’

budgets.budgets.• Steps for longevity in the district are $680 per Steps for longevity in the district are $680 per

year. year. • Steps for higher education are between $850 Steps for higher education are between $850

and $1000. and $1000. • If the base is increased, that amount of increase If the base is increased, that amount of increase

will be added to each cell. To calculate the will be added to each cell. To calculate the increase to the budget, multiply the amount of increase to the budget, multiply the amount of increase to the number of people in each cell. increase to the number of people in each cell.

Financial ConsiderationsFinancial Considerations Transition to Designated SchoolsTransition to Designated Schools

11stst phase: Fourth grade moved into buildings at no phase: Fourth grade moved into buildings at no cost. cost. 22ndnd phase: There will be no cost to move 1 phase: There will be no cost to move 1stst and 2 and 2ndnd grades into buildings. grades into buildings. 33rdrd phase: Kindergarten and 5 phase: Kindergarten and 5thth grades apprx. costs: grades apprx. costs:•Moving 3 trailersMoving 3 trailers•Lease of 3 new trailers for three yearsLease of 3 new trailers for three years•Costs: Costs: - First year: $53,5000- First year: $53,5000 - Second year: $22,500- Second year: $22,500 - Third year: $22,500- Third year: $22,500

Financial ConsiderationsFinancial ConsiderationsFacilities renovation and repairFacilities renovation and repair

• Every building in the Marshall district has Every building in the Marshall district has roof issues with mold and moisture in some roof issues with mold and moisture in some buildings as the result. buildings as the result.

• A rough estimate for A rough estimate for repairsrepairs to the roofs in to the roofs in the district is $151,000. the district is $151,000.

• We are in the process of getting quotes for We are in the process of getting quotes for a permanent sealer for all buildings. (The a permanent sealer for all buildings. (The high school estimate is apprx. $1,000,000.)high school estimate is apprx. $1,000,000.)

Financial ConsiderationsFinancial Considerations

Facilities renovation and repairFacilities renovation and repair• Other issues:Other issues: - Air conditioners- Air conditioners - Boilers- Boilers - Water heaters- Water heaters• Mr. Faber and Mr. Moore are in the process of Mr. Faber and Mr. Moore are in the process of

auditing our grounds and facilities to give us a auditing our grounds and facilities to give us a comprehensive report of needed upgrades.comprehensive report of needed upgrades.

• We have spent $77,275 on upgrades and repairs We have spent $77,275 on upgrades and repairs Additional work that was not anticipated will be Additional work that was not anticipated will be approximately another $150,000 before June. approximately another $150,000 before June.

Financial ConsiderationsFinancial Considerations The district offices need new technology to link The district offices need new technology to link

building to building and to meet the demands building to building and to meet the demands of a digital world. of a digital world.

• Requisitions, purchase orders, personnel Requisitions, purchase orders, personnel requests, are written or typed by hand.requests, are written or typed by hand.

• Budget numbers or balances are not available on Budget numbers or balances are not available on a network across the district.a network across the district.

• Personnel could be much more efficient with Personnel could be much more efficient with modern technology.modern technology.

• The approximate start-up cost for an updated The approximate start-up cost for an updated comprehensive business system is $45,000. comprehensive business system is $45,000.

Financial ConsiderationsFinancial Considerations District officials must keep local businesses, District officials must keep local businesses,

civic groups, government, and agencies in civic groups, government, and agencies in mind when securing mind when securing

• Partnership with the community is critical. Partnership with the community is critical. Neither the school or the city of Marshall can Neither the school or the city of Marshall can thrive without the other. thrive without the other.

• MPS needs to shop and use local talent and MPS needs to shop and use local talent and companies, whenever fiscally possible, in companies, whenever fiscally possible, in making purchases and hiring services.making purchases and hiring services.

• The community should be involved in budget The community should be involved in budget considerations, including facilities decisions. considerations, including facilities decisions.

To finance improvementsTo finance improvements, ,

• Districts ask voters to approve an Districts ask voters to approve an increase to the tax levy or to pass a increase to the tax levy or to pass a bond issue. bond issue.

• To increase salaries, a tax levy is To increase salaries, a tax levy is required because the expenditure required because the expenditure will be permanent.will be permanent.

To finance improvementsTo finance improvements, , • To repair or build facilities, districts sell To repair or build facilities, districts sell

bonds as a 20 year loan. By law, the bonds as a 20 year loan. By law, the district is required to pay back the district is required to pay back the money by levying a tax in Fund 3.money by levying a tax in Fund 3.

• Money is intercepted from the state Money is intercepted from the state funding formula and placed in a third funding formula and placed in a third party institution for repayment of bonds.party institution for repayment of bonds.

• With a levy of $3.12, it is very difficult to With a levy of $3.12, it is very difficult to move money to Fund 3 so money can be move money to Fund 3 so money can be borrowed. borrowed.

Financial ConsiderationsFinancial ConsiderationsThe Board of Education has serious decisions to The Board of Education has serious decisions to

make in the near future. Members want: make in the near future. Members want: • Funding to repair buildings will cost the Funding to repair buildings will cost the

district more than we can cover with the district more than we can cover with the current budget. As of November, we are current budget. As of November, we are 132% of the budgeted amount in Upkeep of 132% of the budgeted amount in Upkeep of Buildings (roofs). Repair of Equipment Buildings (roofs). Repair of Equipment (boilers, etc.) is 118% of the budgeted (boilers, etc.) is 118% of the budgeted amount. amount.

• If we consider sealing roofs, we must repair If we consider sealing roofs, we must repair the current ones. the current ones.

Financial ConsiderationsFinancial ConsiderationsThe Board of Education has serious decisions to The Board of Education has serious decisions to

make in the near future. Members are make in the near future. Members are considering asking Marshall taxpayers to considering asking Marshall taxpayers to help with the facilities, safety, technology, and help with the facilities, safety, technology, and salaries issues. salaries issues.

• The current tax rate is $3.12. Every 10 cents The current tax rate is $3.12. Every 10 cents raise to the levy equals $160,000. To raise raise to the levy equals $160,000. To raise $1,000,000 the levy must be raised by 63 cents.$1,000,000 the levy must be raised by 63 cents.

• Superintendent suggests considering this Superintendent suggests considering this increase and doing so in yearly increments. increase and doing so in yearly increments.

Financial ConsiderationsFinancial Considerations

AREA OF INCREASE APPROXIMATE COST

Facilities repair $300,000

Teacher and staff salaries $300,000

Safety upgrades $100,000

Technology upgrades $100,000

TOTAL $800,000

To raise $800,000, the levy will need to be raised by 50 cents.

Financial ConsiderationsFinancial ConsiderationsThe Board of Education has serious decisions to The Board of Education has serious decisions to

make in the near future. Members want: make in the near future. Members want: • facilities which Marshall parents trust are facilities which Marshall parents trust are

safe for their childrensafe for their children• Marshall to be the district where people Marshall to be the district where people

compete for teaching and staff workcompete for teaching and staff work• to recruit and retain “rock star” teachersto recruit and retain “rock star” teachers• adequate technology so staff, teachers, and adequate technology so staff, teachers, and

students can be as successful as possiblestudents can be as successful as possible• MPS to be the pride of MarshallMPS to be the pride of Marshall

Questions?