Maize School Budget Basics for 2018 - 2019
Budget Estimates. The budget is built on ESTIMATES in July for some student counts, Assessed Values, Revenues & Expenses.
Student Full Time Equivalence (FTE). Is the number of students enrolled in our district on a full time basis on September 20th. (example; half day Kindergarten is 0.5 FTE). The student FTE is used in calculating our General Fund budget amount. Starting in 17-18, the budget formula uses the highest student FTE from either of the previous two years or the past three year’s average. The budget formula also includes additional estimates for “weighted enrollments” for high enrollment, Bilingual, Career Technology, At-Risk, Transportation, Special Education and Virtual Education. Our final operating budget amount will not be determined until the Kansas State Department of Education audit and Special Ed State Aid is completed.
Estimated Assessed Valuation. The County Appraiser determines an appraised value for personal and business property in the Maize district. The appraised value is taken times a factor of 11.5% on personal property and ranging from 12% to 33% on business and other property to form the assessed valuation. This assessed valuation from the county is not final until October or November. Our estimated assessed value is $458.1 million this year and is an increase of about $32.7 million or 7.6% from last year.
Fund Accounting. The budget is made up of many small budgets (funds) that make up the total budget. Each fund may have different budget rules and regulations.
General Fund. - This is the main large operating budget that also can transfer money to other funds. Legislative Block Grants froze our General Fund and LOB budgets for 14-15, 15-16 & 16-17. Under SB 19 in 17-18, schools were again funded using actual student enrollments from previous years and current Weighting FTE’s to determine the General Fund and LOB budgets. Our estimated maximum General Fund budget is $45.3 Million. General fund expenses are for: Instructional; Student and Instructional Support (Counselor, Nurse & Librarian); Administration (Central Office, BOE and Building); Operations & Maintenance; Student Transportation, Student Activities & Athletics; and Transfers to other funds.
Supplemental General Fund - aka Local Option Budget (LOB). This is a supplemental or additional budget to the General Fund. The BOE approved up to 30% authority for the LOB. This percent is taken times the General Fund Budget in a formula to determine the LOB budget. This year, the LOB is estimated at $13.8 Million. Our LOB expenses are used for a portion of the Instructional Certified salaries, Technology expenses and required in 18-19 are transfers to the Bilingual and At-Risk Funds. The General Fund and LOB budgets are used for our total operating budget. As part of the equalization requirement, the LOB also receives State Aid through a formula and our current rate is 52.93% of the LOB budget.
Estimated Operating Budget for 18-19: The total General Fund published budget of $45.3 million and the published LOB budget or $13.8 million combine for our total estimated operating budget of $59.1 million. This is an estimate until the KSDE audit is completed and the final Special Ed State Aid is determined by June.
Capital Outlay Fund. This fund allows the BOE to levy taxes for equipment, property purchases or facility additions. As of the 2005 legislation, 8 mills are the maximum allowed and Maize USD has a current resolution allowing up to 8 mills. The mill levy is used along with interest on idle funds, miscellaneous revenues and possible year-end transfers from the General Fund to provide the budget revenues. Beginning in 14-15 the State provided Capital Outlay State aid. This amount was reduced mid-year and the legislature continued that same reduced amount for 15-16. Due to the Equalization Court Case, Capital Outlay state aid was fully funded in 16-17 and is projected to continue. Our current State Aid is 43% of the taxes levied in the Capital Outlay Fund.
Bond Fund. This is approved by an election to build our school buildings and the funds are set up to repay the debt. The school finance law for bond elections prior to 7-1-15 currently provides 43% State Aid for our bond payments. The bond election in June 2015 approved $70.7 million for additions and renovations to the existing Maize Middle School, Maize High School, Maize South High School, new Transportation Center, new Early Childhood Center and Athletic Field upgrades.
Under the current finance law, our bond state aid calculation would be 18% for future bond elections.
Other Funds. There are several other funds that do not have mill rates that make up the total budget. They are Bilingual Education, Driver Training, Food Service, Professional Development, Parent Education Program, Summer School, Special Education, Career& Postsecondary Ed, K-12 At-Risk, 4 yr. old At-Risk and Virtual School. Most of these receive transfers from the General Fund or LOB.
Recreation Fund. The Recreation fund was approved by public election and Board resolution up to 1 mill that began in FY 2000. The school acts as the tax generating revenue source for the Recreation Commission to operate.
Mill Levy. The Assessed Valuation and required local tax dollars combine to calculate Mill Rates for the County to process the school taxes. One mill equals one tax dollar for each $1,000 of assessed valuation. One mill will generate about $458,100 for our district from 2018 taxes. (Taxpayers usually pay half in December and the remaining half in May. Our total mill estimate for taxes including the Recreation Commission 1.0 mill is 59.790 and is a decrease of 0.76 mills from last year.
If the appraised value remains the same on a $100,000 Residential property, the 0.0760 mill decrease will decrease the taxes by about $ 8.74 per year. (11,500 x .000760)
Legal School Budget Timeline Requirements
- The School District budget should be prepared on or before August 1 of each year.
- There must be at least 10 days notice for the time and place of the budget hearing in the newspaper and includes the proposed budget amounts.
- The budget must be certified to the county clerk by August 25.