Plano ISDBoard Work Session

Budget ReportFebruary 16, 2021

Board Budget CalendarDecember Calendar, GoalsFebruary Assumptions, Preliminary Budget Estimates

March Peer Review, Texas Education Performance Reporting Comparisons, TrendsCompensation Review, Staffing

April Departmental Budgets, Debt Service, FANS May Preliminary Budget Summary, Adoption of

Compensation Plan, Authorize Advertisement of Public Hearing

June Public Hearing, Adopt BudgetSeptember Adopt Tax Rate

Department Budgets Open• November 15

Campus Allocations Distributed• January 15

Department Budgets Due• January 29

Review of Department Budgets• Feb 4 – Feb 26

Campus Budgets Due• Feb 26

Campus/Department Budget Timeline

Budget Process§ Departments requesting using Zero-Based Process

-Enhanced detail on line-item budgeting

§ Campus allocations:-Based on current student populations for state program allocations

-Based on projected 2021-2022 enrollment

§ Staffing Analysis-Staffing model is being evaluated based on projected enrollment

Looking into that Crystal Ball for 2021-2022ADA

HOLD HARMLESSEN

ROLL

MENT

COVID RECOVERY

STIMULUS FUNDS

KINDERGARTEN/PRE-K PPE COST

PROPERTY VALUESLEGISLATIVE

SESSION

Plano ISD Enrollment DifferencesProjections Enrollment

2019-2020 Actual Enrollment 52,646

2020-2021 Projected Enrollment 52,274

2020-2021 End of First Semester Enrollment 50,206

2021-2022 Projected Enrollment 50,700Difference from 20-21 to 21-22 Projections -1,574*

* 3% Decline in Enrollment or $10-$15 mil. Reduction in Revenue

2021-2022 ADA ProjectionsProjection

down 800 ADA **2021-2022

Projection down 1,200 ADA **

2021-2022

Projection down 1,600 ADA **

2021-2022Projected Property GrowthADA

2.00%48,536.00

2.00%48,136.00

2.00%47,736.00

Tax Collections: Current Year Prior YearTotal Tax Collections

$613,450,0001,700,000

$615,150,000

$613,450,0001,700,000

$615,150,000

$613,450,0001,700,000

$615,150,000State Aid: Per Capita Foundation School FundTotal State Aid

$9,669,428715,353

$10,384,781

$9,669,428517,278

$10,186,706

$9,669,4280

$9,669,428

Recapture $(181,557,020) $(184,706,577) $(187,939,208)

Net Revenue $443,977,761 $440,630,129 $436,880,220**Represents decrease in ADA from 2019-2020 Final ADA

HB3 Tax Compression Review

M&O Tax Rate Compression

2019-2020 2020-2021 &2021-2022

Compressed Rate – Tier I $0.93BA - $6,160

$0.9164BA - $6,160

Golden Pennies – Tier II $0.08GY - $98.56

$0.08GY - $98.56

Copper Pennies – Tier II $0.05835GY - $49.28

$0.05835GY - $49.28

Total M&O Tax Rate $1.06835 $1.05475

Tax Rate Compression – 2021-22 & Beyond

§ When the State’s average taxable values increase greater than 2.5%, the maximum Tier I rate is compressed– 2021 projected statewide growth 0.29%▪ TY 2021 MCR = $.9164 (no compression under projected statewide growth)

§ If a school district’s 2021 taxable values increase greater than 2.5%, then they must compress for the 2021-2022 tax rate.

§ Limit on compression – no district may have a maximum Tier I compressed rate less than 90% of the State MCR. ($.8247 for 2021-22)

Impact of 2021 Property Valuation Using 47,736 as Projected ADA

Value Increase

M&O Tax Rate Tax Revenue Recapture State Aid Net Revenue

2020-2021Original Budget

1.05475 606,222,677 (179,809,069) 21,892,279 448,305,887

2020-2021Hold harmless for 1st

Semester only1.05475 603,300,000 (182,848,698) 22,106,039 442,557,341

0.0% 1.05475 603,300,000 (177,005,337) 10,533,371 436,828,034

2.0% 1.05475 615,150,000 (187,939,208) 9,669,428 436,880,220

4.0% 1.04153 619,390,000 (191,260,239) 9,669,428 437,799,189

2016-17 2017-18 2018-19 2019-20 2020-21 **HH 1st Semester

2021-22 **ADA 47,736 &

2% Value Increase

$250,000,000

$200,000,000

$150,000,000

$100,000,000

$50,000,000

$0

$105M

$157M

$211M

$164M$183M $188M

Recapture History

Stimulus Funds – CARES ACT vs. CRRSA ACTESSER

CARES ACT – $13.2B for K-12 Education COVID

Relief

ESSER IICRRSA ACT –

$54.3B for K-12 Education COVID Relief

State $1,285,886,06490% of funds to go to LEAs

$5,529,522,20990% of funds to go to LEAs

Plano ISD $4,033,410 $17,350,000 (Estimated)

RecaptureState AidSet aside for Private/Nonprofit

Increased – $3,415,362Decreased – $416,371

$201,677TBD

Supplanted Funding YES TBD

Additional Funds Received by District $0.00 TBD

Plano ISDBoard Work Session

Budget ReportFebruary 16, 2021