Act 60

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School Finance
Presented By Vermont School Boards Association
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Key Assumptions

• Connection between per pupil expenditure and
  homestead tax rate
• Taxes will be paid on the lesser of either income
  or property value for 75 of residents

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Getting Started

• Board clarifies expectations for education
  programs
• Board identifies increase taxpayers may support
  and states this to administrators
• Administrators develop budget to deliver programs
  within board parameters
• Leadership team decides financial implications of
  the budget

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ORGANIZATIONAL FILTERS

• ETHICS/VALUES

ROLES/RESPONSIBILITIES
VISION/MISSION
DECISION MAKING
POLICY/PROCEDURE
STRATEGIC PLAN
ACCOUNTABILITY
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CORE VALUES

• Adults and students will take responsibility for
  their actions.
• All members of the school district will behave
  and be treated in a professional and respectful
  manner.
• All members of the district must learn and
  understand their respective roles and
  responsibilities.

6
CORE VALUES

• The district will clearly define and communicate
  its vision, mission, and objectives.
• The district will focus on outcomes and the
  achievement of its intended goals.

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ROLES RESPONSIBILITIES

• Effective boards focus time in 6 areas
• Represent community
• Two-way communication
• Listen and reflect
• Advocates for public education
• Establish the expected results the district
  exists to make a difference- board determines
  what that difference looks like for students

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ROLES RESPONSIBILITIES

• Effective boards focus time in 6 areas
• (cont)
• Establishing limits for district operation
• Hires superintendent to achieve results
• Governs own process as board
• Monitors and is accountable to community

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VISION MISSION

• Must make Vision Mission living
• documents
• Identify Measurable Outcomes
• Identify Indicators of Progress
• Agree Upon Targeted Timelines
• Require Appropriate Feedback

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POLICY PROCEDURES

• Clearly articulate policies and procedures
• Establish a renewal cycle
• Review VSBA model policies on the web site
  www.vtvsba.org

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STRATEGIC PLAN
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ACCOUNTABILITY

• There is no substitute for achieving results
• Explicit feedback mechanisms to outline how the
  school district is achieving its mission and
  vision and whether or not its performance is
  satisfactory

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Connecting Strands

• Link from budget to
• Core Values
• Vision and Mission - Active
• Strategic Plan
• Accountability Feedback
• Target Activities
• Monitoring Process

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Act 68 Overview
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Money In
HomesteadProperty Tax
Non-Resident/ BusinessProperty Tax
General Fund
Lottery
Sales Tax
Education Fund
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Money Out
Bristol
Bennington
Barre
Brattleboro
Bethel
Education Fund
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Homestead Tax Money In
Grand List and CLA
OtherSources
Education Fund
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Sources of Vermont School Revenues
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Cost Drivers

• Programs
• Regular, SPED, Tech. Ed.
• Functions
• Processes and Activities
• Student and Staff Support
• Objects
• Salaries, Benefits, Materials

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Annual Health Insurance Increases
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Annual Special Education Increases(K-12 Service
Plans)
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School Spending Patterns Change(Personal Income
Growth 4.7)

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Education Fact Sheet
Demonstrates Equity Between High and Low Spending
Districts
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75 of Budget is Fixed by the Negotiated Contract

• Options for Substantial Cost Reduction
• Eliminate Programs
• Increase Student/Teacher Ratio

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VSBA Negotiations Resources
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(No Transcript)
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Password Information

• UserID VSBA8
• Password 2008

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Northern Vermont

• Base Salaries
• Bachelor Highest Salaries
• Master Base Salaries

(This is base salaries)
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Per Pupil Spending Equalized Tax Rates
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Movement in Tax Amounts
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Equalized Pupil Weights
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Student Enrollment Trends
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Excess Spending Threshold

• FY 2008 - 12,594
• FY 2009 - 13,200(est.)
• (Statewide avg. of 10,660 increased by 25)

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Interactive Budget Spreadsheet
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2008 State Tax Rates

• Homestead tax rate 0.87
• Non-resident business tax rate 1.36
• School budgets do not impact non-resident and
  business tax bills

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Non-resident Tax Rate

• CLA impact same as homestead tax rate
• Fund raising doesnt help any more No financial
  advantage for benefactor

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Non-Resident CLA Impact

• 1.36 Non-Resident Business
• (No income sensitivity provisions)
• Town A (90 CLA) adjusted tax rate
• 1.36/0.90 1.51
• Town B (80 CLA) adjusted tax rate
• 1.36/0.80 1.70

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Eligibility for Income Adjustment

• 2007 tax return 90,000 or less based on entire
  house site value
• Income over 90,000 eligibility based on first
  200,000 of house site value

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Income Sensitivity

• Homestead income less than 90,000 -
• Tax credit subtracted from school tax bill
• Based on 2007 income and FY 2009 school budget
• Homestead income less than 47,000 of total tax
  bill
• Combined municipal and adjusted school tax must
  not exceed 5 of income

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Example 1 - 10,404
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(No Transcript)
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Income Sensitivity Web Resources

• Town Rebates and Prebates
• http//www.state.vt.us/tax/pdf.word.excel/pvr/repo
  rts/2007/TaxAdjustmentSummary_PrebatesAndRebates.p
  df

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What is CLA?
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Common Level of Appraisal

• Common Level of Appraisal
• Town grand list divided by the state equalized
  grand list
• Used to equalize property values and resulting
  tax burdens throughout the state
• Statewide average CLA 82.39

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Effect of CLA on Tax Rates
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Under Act 130

• Homestead tax collected by town
• Elem. secondary districts each have own tax
  rates (dont avg. rates)
• Districts determine ed. spending per pupil
• Based on grade range of district
• Prek -12, K-6, 7- 12, 9-12, etc.

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Under Act 130

• Union districts are recognized
• All districts will determine education spending
  per equalized pupil
• All districts will have a homestead tax rate
• Towns homestead tax rate weighted average of
  district tax rates

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Homestead Tax Rate for Bedrock

• Town of Bedrock
• 60 of eq. pupils are members of Bedrock
  Elementary District
• 40 of eq. pupils are members of Mudville Union
  High District

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Homestead Tax Rate for Bedrock

• Bedrock Elem. tax rate 1.40
• Mudville Union High tax rate 1.55
• 60 of 1.40 0.84
• 40 of 1.55 0.62
• Bedrock tax rate 1.46

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Homestead Tax Rate for Milton

• 100 of equalized pupils in Milton are members of
  Milton School District
• Milton School District tax rate
• 1.26
• Town of Milton Homestead tax rate 1.26

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What Do Voters Get for Their Tax Dollars

• Show Me the Goods!

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• Link the budget to
• measurable goals as well as student and school
  accomplishments!

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Action Plan

• Student performance data
• Target areas needing improvement
• Professional development
• New curriculum

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Tracking Student Performance

• Assessment scores
• Graduation rates
• Achievement of students with special needs
• Higher education/post secondary enrollment

NSBA Data Connection
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Tracking Student Performance

• Salary levels for graduates
• Awards recognition received
• Scholarships received
• Participation in AP courses

NSBA Data Connection
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Other Student Performance Indicators

• Community service co-curricular activities
• Graduate parent satisfaction surveys
• Attendance/drop out rates

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School Indicators

• Student/teacher ratio
• Teacher expertise awards
• of parents involved
• Number of community volunteers
• Types/ of business partnerships

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(No Transcript)
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Comparative Web Data

• State School Report Data
• http//crs.uvm.edu/schlrpt/cfusion/schlrpt06/vermo
  nt.cfm
• Comparative School Data
• http//education.vermont.gov/new/html/pgm_assessme
  nt/data.htmlnecap

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• Starting the Budget Development Process

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Getting Public on Board

• 6 Months Prior to Vote
• Involve key opinion leaders on budget committee
• Do not spend public funds promoting budget
  passage
• Just communicate facts

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Getting Public on Board

• 3 Months Prior To Vote
• Prepare budget
• Prepare voting process
• Organize PR Committee
• Communicate with local opinion leaders