W.A.S.D.A. NEW W.A.S.D.A. NEW ADMINISTRATOR’S ADMINISTRATOR’S

WORKSHOPWORKSHOPYOUR FIRST YEAR BUDGET YOUR FIRST YEAR BUDGET THE STATE PERSPECTIVETHE STATE PERSPECTIVE

February 2, 2005February 2, 2005Jerry LandmarkJerry LandmarkKaren KucharzKaren Kucharz

SCHOOL FINANCE SCHOOL FINANCE TEAM TEAM

Our goal is to help you help yourself….but Our goal is to help you help yourself….but we’re always available in case you need more!we’re always available in case you need more! ““The most important outcome of formal education The most important outcome of formal education

is to help students become independent of formal is to help students become independent of formal education” – education” – Paul Gray in Technology ReviewPaul Gray in Technology Review

Handouts:Handouts: Finance Team Home Page/Team Assignments; Finance Team Home Page/Team Assignments; Blank 05-06 Revenue Limit Worksheet; Blank 05-06 Revenue Limit Worksheet; Budget Adoption and Hearing Worksheets;Budget Adoption and Hearing Worksheets; Salary/Benefit Increase vs. Revenue Limit Change;Salary/Benefit Increase vs. Revenue Limit Change; Debt Timeline;Debt Timeline; Status & Deadlines;Status & Deadlines; Power Point SlidesPower Point Slides

Helping You Develop Your Helping You Develop Your Budget Budget

Most Important: Revenue Most Important: Revenue LimitLimit

The 05-06 Revenue Limit is a key The 05-06 Revenue Limit is a key piece of your budgeting…..check piece of your budgeting…..check the latest one we have on the the latest one we have on the web site. web site.

Let’s take a brief look at the Let’s take a brief look at the latest version…latest version…

05-06 Revenue Limit Estimate

Determine how your Determine how your salary/benefit costs are changing salary/benefit costs are changing in relation to the change in your in relation to the change in your maximum Revenue Limit.maximum Revenue Limit.

Helping You Develop Your Helping You Develop Your Budget Budget

Next: Looking At Next: Looking At Salary/Benefit Increases vs. Salary/Benefit Increases vs.

Revenue Limit ChangesRevenue Limit Changes

Salary/Benefits vs. Revenue Limit

Helping You Develop Your Helping You Develop Your Budget Budget

What About Aid?What About Aid? Know what revenue you’re getting, Know what revenue you’re getting,

and when you’ll receive it;and when you’ll receive it; ~~Equalization Aid~~Equalization Aid

~~Tax Levies~~Tax Levies~~Categorical Aids~~Categorical Aids~~Federal Grants~~Federal Grants~~Local Fees~~Local Fees

Get some of these numbers from the Get some of these numbers from the “Aid Information” page on the left-“Aid Information” page on the left-hand sidebar of our website.hand sidebar of our website.

Use the “State Aids Payment Schedule” Use the “State Aids Payment Schedule” on our website scan bar to help on our website scan bar to help determine cash flow.determine cash flow.

Helping You Develop Your Helping You Develop Your Budget Budget Equalization AidEqualization Aid

There is little need to figure out your There is little need to figure out your equalization aid at this time to prepare for equalization aid at this time to prepare for the budget – the revenue limit determines the budget – the revenue limit determines how much money you have available. how much money you have available.

DPI will provide an estimate in April and DPI will provide an estimate in April and July.July.

Equalization aid plus the funds 10, 38 and Equalization aid plus the funds 10, 38 and 41 tax levies equal the revenue limit 41 tax levies equal the revenue limit amount.amount.

Helping You Develop Your Helping You Develop Your Budget Budget Equalization AidEqualization Aid

If you want to do an If you want to do an aid estimate before we aid estimate before we give you one in April, give you one in April, use the Simplified use the Simplified Percentage Method on Percentage Method on our website under our website under “Worksheets “Worksheets Executable”Executable”

Keep in mind we don’t Keep in mind we don’t have the 05-06 have the 05-06 guarantees or cost guarantees or cost ceiling numbers yet – ceiling numbers yet – any estimate will be any estimate will be little more than a little more than a guess…..guess…..

Simplified Percentage Aid Worksheet

Helping You Develop Your Helping You Develop Your Budget Budget

What About Debt?What About Debt?Debt is an important part of the Debt is an important part of the

budget process. Questions on budget process. Questions on refinancing or referendum debt refinancing or referendum debt should be referred to Gene should be referred to Gene Fornecker;Fornecker;

Info on debt is on our website – look Info on debt is on our website – look

for “Debt Reporting;”for “Debt Reporting;”

Is your debt in Fund 38 or 39?Is your debt in Fund 38 or 39?

Remember: Referendum debt does Remember: Referendum debt does not affect revenue limit, but it not affect revenue limit, but it DOES affect tax levy!DOES affect tax levy!

Helping You Develop Your Helping You Develop Your Budget Budget

A Final Heads-Up About DebtA Final Heads-Up About Debt

The debt levy is determined by The debt levy is determined by calendar-year payments; the calendar-year payments; the budget reflects fiscal-year budget reflects fiscal-year payments.payments.

Debt Timeline

Helping You Develop Your Helping You Develop Your Budget Budget What’s New in What’s New in

Account Codes?Account Codes? Find out the latest accounting Find out the latest accounting

changes: click “WUFAR” on the left-changes: click “WUFAR” on the left-hand side bar of the web site.hand side bar of the web site.

It provides a number of help tools for It provides a number of help tools for school accounting, including:school accounting, including: Definitions;Definitions; Links to information in special areas Links to information in special areas

such as TEACH – Debt Service – Tax such as TEACH – Debt Service – Tax Transactions;Transactions;

Sample transaction codings;Sample transaction codings; Easy to access matrix for building Easy to access matrix for building

allowable codes.allowable codes.

Helping You Develop Your Helping You Develop Your BudgetBudget

What’s Fund Balance?What’s Fund Balance?

Do a cost flow analysis to help Do a cost flow analysis to help determine short-term determine short-term borrowing needs.borrowing needs.

Use our Fund Balance Use our Fund Balance Practices web page for help Practices web page for help with fund and cash balance.with fund and cash balance.

Sooner or later, someone will Sooner or later, someone will ask you to explain it to them!!!ask you to explain it to them!!!

Helping You Develop Your Helping You Develop Your BudgetBudget

Do You Need to Know What Others Are Do You Need to Know What Others Are Doing?Doing?

- it provides districts, - it provides districts, legislators, and general legislators, and general public direct reading public direct reading access to the DPI access to the DPI database. This is database. This is audited financial audited financial information. information.

The School Finance Data The School Finance Data WarehouseWarehouse can help you see what can help you see what other districts spend in a other districts spend in a particular area – and it has your particular area – and it has your history, too!history, too!

Helping You Develop Your Helping You Develop Your BudgetBudget

After the Preparation…..After the Preparation…..

Let’s look at the “Budget Let’s look at the “Budget Hearing and Adoption” Hearing and Adoption” worksheet on the web page…worksheet on the web page…

Microsoft Excel Worksheet

Helping You Develop Your Helping You Develop Your BudgetBudget

Reporting to DPIReporting to DPIFind out what’s due and when – go Find out what’s due and when – go

to the “Reporting Portal” on the to the “Reporting Portal” on the web site. It’s on the “Status and web site. It’s on the “Status and Deadlines” page.Deadlines” page.

See Handout See Handout

Looking at it in a different way…..Looking at it in a different way…..

Calculate Revenue Limit

Total all sources of revenue

Calculate salaries, wages, and fringe benefits

Calculate a budget for educational programs

Outline ExpectedCash flow

Calculate a budget for “fixed”expenses i.e. heat, utilities,

non-referendum debt

Is end result balanced….?Cuts? Use Fund Balance?

SCHOOL FINANCE SCHOOL FINANCE WEB PAGE:WEB PAGE:

www.dpi.state.wi.us/dfm/www.dpi.state.wi.us/dfm/sfmssfms

Please call with questions Please call with questions or comments!or comments!