Great Falls Public Schools DISTRICT BUDGET INFORMATION School Year. Our Mission We successfully educate students to navigate their future.

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1 Great Falls Public Schools DISTRICT BUDGET INFORMATION School Year Our Mission We successfully educate students to navigate their future.

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3 TABLE OF CONTENTS 1. Board and Administrative Staff 1 2. Message from the Director of Business Operations 2 3. Message from the Superintendent Goals of the District 6 5. Fast Facts Student Information 7 District Information 8 Community Information 9 Revenue - Great Falls Public Schools All Budgeted Funds Maefairs Budgeted Fund Summary 11 Budgeted Funds Mill Value Previous Year Comparison Budgeted Funds General Information Expenditure Budgets - All Budgeted Funds General Fund Budget Category Spending 13 Cascade County K-12 School District Levies AA District Tax Comparisons General Fund Budget Information Description & Total Trend Data 16 Mills Levied & Mill Value Trend Data 17 Guaranteed Tax Base, Enrollment, & Unreserved Fund Balance Re-appropriated 18 General Fund Budget Funding Component Breakdown 19 Maefairs General Fund Budget Worksheet Transportation Fund Description & Total Trend Data 23 Maefairs Transportation Fund Worksheet Tuition Fund Description & Total Trend Data 25 Maefairs Tuition Fund Worksheet Retirement Fund Description & Total Trend Data 27 Maefairs Retirement Fund Adult Education Fund Description & Total Trend Data 29 Maefairs Adult Education Fund Worksheet Technology Fund Description & Total Trend Data 31 Maefairs Technology Fund Worksheet Flexibility Fund Description & Total Trend Data 33 Maefairs Flexibility Fund Worksheet Debt Service Fund Description & Total Trend Data 35 Maefairs Debt Service Fund Worksheet Building Reserve Fund Description & Total Trend Data 37 Maefairs Building Reserve Fund Worksheet Commonly Used Educational Acronyms Understanding Montana School Finance & School District Budgets Legislative Session Recap Legislative Election Law Changes Notes 48

4 BOARD AND ADMINISTRATIVE STAFF Great Falls Public Schools Great Falls, Montana THE BOARD OF EDUCATION Jan Cahill....Chairman Laura Vukasin...Vice-Chairman Jason Brantley...Trustee Jeff Gray.....Trustee Ann Janikula...Trustee Bob Moretti Trustee Don Ryan...Trustee ADMINISTRATIVE STAFF Tammy Lacey...Superintendent of Schools Brian Patrick...Director of Business Operations Tom Moore...Assistant Superintendent Secondary Education Ruth Uecker...Assistant Superintendent Elementary Education Mindy Kiser...Director of Human Resources Dale Lambert...Director of Student Services Chris Olszewski...Director of Curriculum and Instruction Tom Hering...Director of Information Technology 1

5 MESSAGE FROM THE DIRECTOR OF BUSINESS OPERATIONS I am pleased to present the annual District Budget Information Guide which covers the Great Falls Public School District adopted budget for the school year. My goal is to present accurate, easy to follow information on school finance, which will aid in the decision making process to improve our schools and the education of our children. The charts and graphs are intended to make the school finance story more visual and easier to understand, as well as provide a better understanding of how the district finances have changed over time. The finances of our district translate into the comprehensive program that we offer our students. That programming translates into our team of dedicated p r o f e s s i o n a l s w h i c h i n c l u d e s t e a c h e r s, paraprofessionals, kitchen staff, secretaries, maintenance staff, administrators, board members and other support personnel all who work hard to fulfill the mission and goals of our district. The district s financial resources are focused on our mission of educating all our students to navigate their futures. We understand that students need a variety of tools to compete in both the work environment of today and the future. Financial resources are also directed to our twenty schools, which average 58 years in age. With our goal of providing a safe and secure learning environment for all our students, we are focusing on addressing safety issues while upgrading our aging critical infrastructure components. It is important to note that this financial report is only a snap shot of the District finances at one point in time. It is important, but not a total view of the broad educational story of how our schools are achieving. I encourage you to check out the additional financial and strategic plan information located on our district web page and participate in the public budget process which begins annually in January. Our goal, providing a quality education for all students, will be achieved through positive cooperation between our community and school. Sincerely, Brian Patrick Director of Business Operations 2

6 MESSAGE FROM THE SUPERINTENDENT SUPERINTENDENT S BUDGET MESSAGE Great Falls Public Schools August, 2015 Tammy Lacey, Superintendent INTRODUCTION It is my pleasure to present to you my 3rd budget message as superintendent of the Great Falls Public Schools (GFPS). As Hippocrates said, Declare the past, diagnose the present, foretell the future. The information presented within will do all three. Let me begin with a quick declaration of the past. With pride and optimism, I celebrate the District goals that were accomplished this past year. GFPS worked hard to make the strategic plan come to life. We focused on what matters most student achievement. We engaged our community in discussions around facilities as we seek modern solutions to aging buildings. We told our story to the community in new and ever improving ways. We continued and built partnerships with community groups and individuals. We worked hard and hopefully took the time to celebrate many, many outstanding outcomes. We also spent time diagnosing the present, thanks to staff and community members coming together this winter to study current finances. That led to this document as we look to the future. The information provided below is intended to provide the reader with the necessary background to think about what is to come before us in the school year to include the budgetary resources that are necessary to make our vision come true BUDGET THOUGHTS Funding Assumptions. In preparing for the budget, the District determined the following: Rolling the general educational program budget into requires a budget increase of approximately $1.71 million due to increases in contractual obligations, health insurance, operational costs and Data for Achievement earmarks. The District has supplemented the budget with the use of $600,000 from reserves for the last three years; it was determined that this will need to be continued for a fourth year but at $430,000. During the 2015 legislative session, the major school funding bill, House Bill 27, provided for excellent support for statewide schools. For the school year, the impact on the Great Falls Public School District was an increase of $1.885 million in state funding. Budget Setting Process and Levy Decision. The District continued a budget setting approach that involved the public throughout the process. After four well-attended community meetings where there was considerable support for the budget-setting recommendations, the Board made a decision on March 23, 2015 to not ask the community for additional financial support via a mill levy as the revenue and expenditure could be balanced via the use of $430,000 from reserves. 3

7 Enrollment. Enrollment has a major impact on the District s budget as state funds for education are distributed on a per pupil formula. The more students enrolled, the more state funding the District receives. For the second consecutive year, GFPS has small increases in overall enrollment. The District is looking for this trend to continue due to several factors: The promising economic growth forecasted for Great Falls The new affordable housing developments that are being constructed The community s efforts around Graduation Matters which is keeping more high school students in school The increases in enrollment are welcome, but bring challenges: An increase in the number of classrooms that exceed the state standards for class size An increase in the number of class sections that must be offered An increase in the number of staff that is required Limited space in which to situate students and classrooms The District has embarked on a facility study and planning process. See Facilities below. Staffing. Districts across Montana are finding it more and more difficult to recruit and retain teachers and other necessary staff members. GFPS shares these same concerns. Positions in special education, industrial technology, student support (aides and Para educators), and food services continue to be hard to fill. In some cases, GFPS feels that non-competitive salaries are a major factor. In an effort to increase salaries, collective bargaining has resulted in salary increases of 2% for teachers and some other groups for the school year. GFPS is still negotiating with one employee group. Benefits are a key factor in the recruitment and retention of staff. GFPS has an Insurance Committee that studies the trends and works to provide a good health insurance plan at a price that employees and the District can tolerate. Once again, there is an increase (10% for the year) in health insurance premiums that will be shared by the employees and GFPS. There will also be changes to the benefit structures moving it from a composite structure to a tiered structure. These changes are necessary in order to comply with the Affordable Care Act. The salary and health insurance increases are being accounted for in the proposed budgets. Curriculum and Assessment. GFPS offers a comprehensive PK-12 curriculum incorporating all content and performance standards in compliance with Montana Standards of Accreditation. In accordance with ARM , the District has an established curriculum and assessment development process which reviews curricula in all subject areas at intervals not exceeding five years. There are annual costs associated with these updates and reviews and they are accounted for in the budget. The 2013 Legislature set forth funding for Data for Achievement work. This funding was continued by the 2015 Legislature. The District received approximately $54,520 for the budget that is earmarked and must be spent specifically for this purpose. Along with the funding comes an expectation that Districts will implement data driven instructional processes. GFPS has been a leader in the state in this effort as we spent the last year working through a process to purchase the Milepost comprehensive student data system. It provides teachers and principals the tool to have student data all in one place to more easily facilitate the development of customized learning plans. The budget will reflect the additional revenue and continued expenditures for these purposes. Value Added Programming. Thanks to the community of Great Falls taxpayers, the budget includes the additional $1,015,000 in revenue provided by the passage of the May, 2014 levy. The bulk of the valued added programming and associated expenditures were fully incurred last school year and will move forward into the budget. Two main items remained to be completed and can now be reported as accomplished. Those two items will be expended in the budget and they are: 4

8 The hiring of a teacher to provide courses in technology to include programming/coding The hiring of two addiction counselors Facilities. The District has embarked upon a facility study as prompted by increasing enrollment at the elementary level and the aging of community owned facilities. The District will continue this process in the school year. It is anticipated that it may be necessary to present a facility funding proposal to taxpayers. The proposal could include requests for an elementary and high school Building Reserve Levy and/or an elementary and high school Bond Levy. It is important to note that these kinds of levies are completely separate from a General Fund Operational Levy. The public is encouraged to engage with the District in discussions surrounding facilities and related funding needs during the school year. CONCLUSION The budget honors the comprehensive PK-12 programming and extensive extra- and co-curricular offerings that our community is proud of and expects. It supports the need to engage students in rigorous and relevant curricula, high quality instruction, and customized learning opportunities. It supports the expectation of our community to prepare students for college, career, and citizenship. The budget allows students to have access to current technologies and pedagogies. It rewards our high quality staff for their demonstrated expertise and commitment. The budget supports the GFPS Strategic Plan as the district continues it work around student achievement, accountability and stewardship, and safe, healthy and secure schools. I believe this proposed budget is another example of the Great Falls Public Schools commitment to its mission, All kids engaged in learning today for life tomorrow. Education is a partnership between schools, students, parents, and the community. Students and their families depend on good schools to provide opportunities for learning and growth. Schools depend on community support in order to provide comprehensive opportunities. Communities depend on good schools for economic vitality and future growth. I believe that OUR KIDS, OUR COMMUNITY, and OUR FUTURE are clearly reflected in this proposed budget. I present it to you and recommend its approval. Sincerely, Tammy L. Lacey Superintendent 5

9 GOALS OF THE DISTRICT 6

10 Drop out rate % % of juniors and seniors Great Falls Public Schools Fiscal Year FAST FACTS Student Information Ethnicity Mulitracial 9% African American 3% Native American 11% Pacific Islander 0% GFPS Students Taking Dual Credit Classes Asian 1% 8 6 White 76% Year % Free/Reduced Lunch Eligibility for AA District Elem. Schools % Free or Reduced Lunch Eligibility for AA Districts % of Students Engaged in Programs: Free and Reduced Lunch: 48.08% Limited English Proficient: 4.21% English Second Language: 0.59% Special Education: 9.75% Homeless: 0.51% % Free or Reduced Lunch Elementary Schools # of Homeless Students AA Schools Drop-out Rate GFPS Drop-out Rate By Year GFPS District GFHS CMR Dropout Total By Year * MT. OPI School Nutrition Programs 7

11 District Website: Vision: All kids engaged in learning today for life tomorrow. Mission: We successfully educate students to navigate their future. Great Falls Public Schools Fiscal Year FAST FACTS District Information Strategic Plan: The strategic plan sets forth three main goal areas that are of the highest priority for action in the upcoming school year and beyond. These efforts in continuous improvement include: Student Achievement with the goal being to increase student achievement for all students while closing the achievement gap. Stewardship and Accountability with the goal being to provide prudent stewardship and accountability of public resources to best support educational opportunity and student success. Healthy, Safe and Secure Schools with the goal being to provide all students healthy, safe and secure school environment in which to learn. District Leadership has developed action items for each goal area. The GFPS Strategic Plan may be found at: Our Schools: Established in 1888 Second Largest School District in Montana Early Learning Family Center Preschool Program 15 Neighborhood Elementary Schools 2 Middle Schools 2 Comprehensive High Schools 1 Alternative High School Adult Education Program at Great Falls College MSU School Food Service & Transportation: Total Meals Served: 1,971,609 Breakfast Programs at all 20 public schools Free & Reduced Meals served Breakfast: 313,402 Lunch: 912,434 # of Bus Routes: 67 # of Bus Drivers: 79 # of Student Ridership: 3,525 # of Miles Traveled: 865,800 Facility Facts: Average School Age: 57 Oldest Building: Roosevelt built in 1928 Newest Building: GFHS South Campus built in 1998 Current Public Debt (Bonds): $0 1.9 million square feet of building space 295 acres of land Up-to-date Facilities Plan information can be found at: School Construction ranges in date from s s s s s s s 1 Our Staff: FTE* Teachers Hourly Classified Engineers 98 Aide-Library/Teacher Clerical 76.5 Coaches-out of District Principals 28 Medical Related Support Personnel 22.4 District Administrators 14 Crafts 12 (carpentry, paint, electric, plumbing) Technology Specialists 12 Psychologists 8 Supervisors 7 Warehouse 6 Total: *FTE= Full Time Equivalent i.e.; one person working half-time equals.5 FTE Our Teachers: Ages: 23 to 68 77% Female 534 or 69% have a Master s degree or higher *2 with a Doctoral degree 8

12 Top Public Employer Rank Employer Business Type Employees 1 Malmstrom AFB Military 4,476 2 Great Falls Public Schools Public School System 2,078 3 MT Air National Guard Military 1,004 4 City of Great Falls Government Cascade County Government 500 Top Private Employer Rank Employer Business Type Employees 1 Benefis Health System Health care 2,955 2 Great Falls Clinic Health Care Wal-Mart Retailer Asurion Service Plan Center Centene Corp. Insurance Services 319 Great Falls Public Schools Fiscal Year FAST FACTS Community Information Great Falls Community Food Bank The Great Falls Community Food Bank is the main Food Pantry for the community of Great Falls. There are other smaller food pantries run through community groups and churches. Each school in the GFPS district has its own food pantry established and programs such as the Backpack Program have been established to support students during times when school is not in session. - Montana Economy at a Glance, June 2015, Dept. of Labor and Industry *-Outlook 2015 Industry Forecasts & Charts for Northcentral Montana, Great Falls Tribune 9

13 REVENUE GREAT FALLS PUBLIC SCHOOLS ALL BUDGETED FUNDS Projected Revenue 29.69% 58.8% State County District 11.51% Revenue Percentage State $49,239, County $9,639, District $24,867, Total $83,746,

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15 BUDGETED FUNDS MILL/VALUE PREVIOUS YEAR COMPARISON Great Falls Public Schools Budgeted Funds Mill/Value Comparison August 2015 All Budgeted Funds Combined Total Mills Difference Total Difference Elementary Elementary $ 55,595,211 $ 57,937,725 $ 2,342,514 High School High School $ 27,331,192 $ 28,129,458 $ 798,266 Total Total $ 82,926,403 $ 86,067,183 $ 3,140,780 General Fund (X01) Difference General Fund (X01) Difference Elementary Elementary $ 44,930,778 $ 46,537,326 $ 1,606,548 High School High School $ 22,470,047 $ 22,839,417 $ 369,370 Total Total $ 67,400,825 $ 69,376,744 $ 1,975,918 Transportation (X10) Difference Transportation (X10) Difference Elementary Elementary $ 2,781,340 $ 2,888,225 $ 106,885 High School High School $ 831,214 $ 905,348 $ 74,134 Total Total $ 3,612,554 $ 3,793,573 $ 181,019 Tuition (X13) Difference Tuition (X13) Difference Elementary Elementary $ 176,782 $ 200,985 $ 24,203 High School High School $ 16,686 $ 105,750 $ 89,064 Total Total $ 193,469 $ 306,735 $ 113,266 Retirement (X14) County Retirement (X14) Difference wide Elementary $ 6,000,000 $ 6,400,000 $ 400,000 Permissive High School $ 3,240,000 $ 3,520,000 $ 280,000 Levy Total $ 9,240,000 $ 9,920,000 $ 680,000 Adult Education (X17) Difference Adult Education (X17) Difference Elementary Elementary $ 290,000 $ 335,570 $ 45,570 High School High School $ 345,625 $ 300,055 $ (45,570) Total Total $ 635,625 $ 635,625 $ - Technology (X28) Difference Technology (X28) Difference Elementary Elementary $ 852,681 $ 1,045,766 $ 193,085 High School High School $ 372, $ 2,387 Total Total $ 1,224,958 $ 1,420,430 $ 195,472 Flexibility (X29) Difference Flexibility (X29) Difference Elementary Elementary $ 306,653 $ 290,964 $ (15,689) High School High School $ 13,608 $ 14,236 $ 629 Total Total $ 320,261 $ 305,200 $ (15,060) Building Reserve (X61) Difference Building Reserve (X61) Difference Elementary Elementary $ 256,976 $ 238,888 $ (18,088) High School High School $ 41,736 $ 69,988 $ 28,252 Total Total $ 298,712 $ 308,876 $ 10,164 Debt Service Elem HS Total Mill Value $110,507 $113,696 $224, Mill Value $126,467 $129,195 $255,662 Difference $15,960 $15,499 $31,459 12

16 EXPENDITURE BUDGETS ALL BUDGETED FUNDS All Budgeted Funds School Year Fund Amount % General 46,537, % Transportation 2,888, % Retirement 11.05% Technology 1.80% Adult Education 0.58% Flexibility 0.50% Building Reserve 0.41% Tuition 200, % Retirement 6,400, % Adult Education 335, % Technology 1,045, % Tuition 0.35% Transportation 4.99% General 80.32% Flexibility 290, % Building Reserve 238, % Total: 57,937, % General Fund Budget Category Spending School Year $8,519, % $4,229, % $2,012, % $1,618, % $5,864, % $1,481, % $1,219,078 $4,247, % 1.81% $576, % $37,471, % Instruction Student Services Admin. Dist. ** Admin Build.*** Business Plant Maintenance Special Services Extra Curricular Transfers Bond Payment Category Amount % Instruction $37,471, % Student Services $5,864, % Admin. Dist. ** $1,618, % Admin Build.*** $4,229, % Business $2,012, % Plant Maintenance $8,519, % Special Services $4,247, % Extra Curricular $1,481, % ** District Property Insurance, Audit Expense, Electric Expense, Postage, Dues & Fees, Board Travel & Expenses, Labor Consultants *** Building Principal, Clerical and Special Education Administration, & Data for Achievement Salaries & Benefits. Building Administrative supplies & minor equipment. Transfers $1,219, % Bond Payment $576, % Total: $67,239, % 13

17 CASCADE COUNTY K-12 SCHOOL DISTRICT LEVIES ELEM HS 2014 Total 2013 Total Difference Belt Cascade Centerville Great Falls Sun River ELEM HS 2014 Total 2013 Total Source: Montana Tax Foundation Per Pupil Expenditure Trends by Legal Entity Fiscal Years: Cascade County School/Legal Entity **Does not include Ulm Elementary, Deep Creek Elementary, and Vaughn Elementary FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Belt Elem ,372 8,823 9,368 10,104 10,456 9,838 10,454 10,043 Belt H S ,429 12,388 12,564 14,322 14,575 14,294 15,912 15,142 Cascade Elem ,398 9,373 9,746 12,912 12,075 11,193 11,243 11,210 Cascade H S ,115 12,297 11,442 12,410 11,899 12,443 12,881 14,414 Centerville Elem ,885 10,172 10,710 13,502 15,127 12,800 12,196 10,459 Centerville H S ,502 12,813 13,448 14,873 14,403 13,852 14,915 15,323 Great Falls Elem ,417 7,434 7,052 7,268 8,119 8,234 8,279 8,934 Great Falls H S ,353 7,319 9,272 10,867 9,102 9,168 9,033 8,799 Simms H S ,228 14,641 12,291 13,542 14,435 12,959 12,991 14,339 Sun River Valley Elem ,871 9,079 10,910 12,418 12,481 12,585 13,026 13,185 Ulm Elem ,946 8,328 8,784 9,605 9,964 9,216 9,636 10,395 Vaughn Elem ,562 10,375 11,769 11,594 12,896 11,029 11,169 10,116 Total County - Cascade ,676 7,775 8,169 8,931 8,938 8,930 8,945 9,275 Report Totals 7,676 7,775 8,169 8,931 8,938 8,930 8,945 9,275 Percent Change 7.6% 1.3% 5.1% 9.3% 0.1% -0.1% 0.2% 3.7% Includes all funds, except Funds 17, 60, 70-80, 81, 84, 85 Building, Enterprise Type, Adult Ed, and Trust Funds. Transfer between funds, districts and special education coops are excluded. Tuition between districts and refunding bonds are also excluded. Source: OPI - GEMS 14

18 AA DISTRICT TAX COMPARISONS How do we compare with the Montana AA Districts? 2014 Total School Tax Mills Levied 700 Great Falls is mills below the average of the seven largest districts in the state Average Mills Bozeman Great Falls Billings Butte Missoula Kalispell Helena AA Districts Comparison Bozeman Great Falls Billings Butte Missoula Kalispell Helena Total Elem: HS: Total: Previous Year Total: Increase over previous year: Source: Montana Tax Foundation GF below the average Average 15

19 GENERAL FUND - 01 The General Fund Budget finances the general maintenance and operational costs and instructional costs except for supplemental grant monies. It is a budgeted fund that requires a voted levy to increase the budget until the district reaches the maximum budget allowed. PURPOSE This fund is used for the instructional programs and general operations of the school district. Budget Limits are established per MCA VOTING REQUIREMENTS Voter approval is necessary for a district to increase Over-BASE taxes from the prior year. (MCA and ). General Fund Year Elementary High School Total $32,696,784 $17,781,376 $50,478, $32,879,118 $17,870,769 $50,749, $33,311,847 $18,510,995 $51,822, $33,338,743 $18,635,995 $51,974, $33,338,743 $19,111,995 $52,450, $34,768,901 $19,611,995 $54,380, $35,751,871 $20,543,161 $56,295, $37,916,871 $22,020,523 $59,937, $38,291,930 $22,141,889 $60,433, $39,494,246 $22,778,765 $62,273, $40,688,708 $23,214,809 $63,903, $40,550,000 $22,005,500 $62,555, $41,768,780 $21,918,253 $63,687, $42,869,157 $21,822,408 $64,691, $44,930,778 $22,470,047 $67,400, $46,537,326 $22,839,417 $69,376,743 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Trend Data Total 16

20 GENERAL FUND BUDGET TREND DATA Mills Levied Mills Elementary High School Total Total Mill Value Year Elementary High School Total $84,301 $87,177 $171, $86,724 $89,567 $176, $90,504 $93,487 $183, $93,421 $96,358 $189, $97,004 $99,943 $196, $99,093 $101,904 $200, $104,825 $107,592 $212, $107,392 $110,124 $217, $111,683 $114,336 $226, $112,978 $117,886 $230, $112,792 $115,948 $228, $110,507 $113,696 $224, $126,467 $129,195 $255,662 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Total 17

21 GENERAL FUND BUDGET TREND DATA Guaranteed Tax Base Year Elementary High School $144,175 $124, $124,539 $105, $122,790 $102, $124,419 $108, $125,678 $106, $124,739 $106, $130,655 $112, $158,812 $140, $169,316 $154, $172,293 $158, $178,156 $165, $183,405 $166, $188,658 $169, $192,788 $167, $200,552 $172, $201,161 $175,981 Enrollment Year Elementary High school Total ,895 3,837 11, ,663 3,874 11, ,525 3,758 11, ,276 3,676 10, ,066 3,673 10, ,000 3,654 10, ,783 3,699 10, ,362 3,623 10, ,226 3,549 10, ,234 3,420 10, ,267 3,311 10, ,305 3,115 10, ,385 3,110 10, ,409 3,078 10, ,537 3,064 10,601 $250,000 $200,000 $150,000 $100,000 $50,000 All Budgeted Funds Unreserved Fund Balance Re-Appropriated Year Elementary High School Total $2,241,091 $399,685 $2,640, $2,454,160 $637,453 $3,091, $1,773,418 $449,800 $2,223, $2,426,918 $602,112 $3,029, $3,182,653 $1,185,475 $4,368, $2,911,018 $1,136,539 $4,047, $1,644,674 $803,677 $2,448, $1,476,457 $733,899 $2,210, $1,429,746 $784,073 $2,213, $1,892,426 $613,501 $2,505, $1,832,052 $795,598 $2,627,651 $0 12,000 11,500 11,000 10,500 10,000 9,500 Kindergarten increased from.5 ANB to 1.0 ANB $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, $0 Guaranteed Tax Base Elementary Guaranteed Tax Base High School Total Elementary High School

22 80% Base Budget $38,285,395 80% Base Budget $18,399, FUNDING COMPONENT BREAKDOWN Elementary High School 100% Maximum-$47,208, % Maximum-$22,875,951 Budget $46,537,326 Budget $22,839,417 Over Base Property Tax $8,251,931 Over Base Property Tax $4,423,049 Guaranteed Tax Base *NRD Guaranteed Tax Base *NRD $ $210,162 $ $103,487 Local Base Property Tax= $4,493,909 Local Base Property Tax= $2,790,043 Non-Levied Revenue $1,856,693 Special Education $1,519,250 Non-Levied Revenue $833,542 Special Education $617,299 Direct State Aid $18,720,032 Direct State Aid $9,218,054 Data for Achievement $150,720 Indian Ed for All $157,352 American Indian Achievement Gap $228,370 At Risk $308,526 Quality Educator $1,810,054 Data for Achievement $61,240 Indian Ed for All $63,935 American Indian Achievement Gap $75,440 At Risk $83,275 Quality Educator $753,937 Numbers are rounded to the nearest whole dollar. Additional funding component added by the legislation in 2013 *Natural Resource Development Payment added 2013 Legislative Session 19

23 PART I. CERTIFIED BUDGET DATA Budget Report- 01 General Fund FY Cascade ANB BY Budget Unit: E1 Great Falls K-6 6, M1 Great Falls 7-8 1, * indicates that the 3 year average ANB was used to Great Falls , Elementary High School Total A Direct State Aid (I-A) 18,720, ,218, ,938, B Mandatory Non-Isolated (I-B) C Quality Educator (I-C) 1,810, , ,563, D At Risk Student (I-D) 308, , , E Indian Education For All (I-E) 157, , , F American Indian Achievement Gap (I-F) 228, , , G Data For Achievement (I-G) 150, , , H State Spec Ed Allowable Cost Pymt to Districts (I-H) 1,519, , ,136, I State Special Education Related- Services Pymt to Coop (I-I) J District GTB Subsidy Per Elementary Base Mill (I-J) 201, N/A 201, K District GTB Subsidy Per High School Base Mill (I-K) N/A 175, , PART II. GENERAL FUND BUDGET LIMITS Elementary High School Total Prior Year Budget Data: A ANB (II-A) 7, , , B BASE Budget Limit (II-B) 36,678, ,046, ,725, C Maximum Budget Limit (II-C) 45,602, ,470, ,072, D Over-BASE Levy As Submitted on Budget (II-D) 8,237, ,399, ,637, E Adopted Budget (II-E) 44,930, ,470, ,400, Current Year Budget Data: F % Special Education in Maximum Budget (II-F) G BASE Budget (Minimum Budget Amount Required) (II-G) 38,285, ,399, ,685, H Maximum Budget Limit (II-H) 47,208, ,875, ,084, I Highest Budget Without a Vote (II-I) 46,537, ,839, ,376, J Highest Budget (II-J) 47,208, ,875, ,084, K Highest Voted Amount (II-K) 670, , , L Amount Approved on Ballot by Voters (II-L) M Adopted Budget (II-M) 46,537, ,839, ,376, PART III. GENERAL FUND BALANCES FOR BUDGET AS OF JUNE 30 Elementary High School Total A Operating Reserve (961) (III-A) 4,334, ,283, ,618, B TIF Operating Reserve (962) (III-B) 0.00 C Excess Reserves (III-C) , Reserve for Protested/Delinquent Taxes (963) (III-C1) , Reserve for Tax Audit Receipts (964) (III-C2) D Unreserved Fund Balance Reappropriated (970) (III-D) Prior Year Excess Reserves Funding Over-BASE (970a) (III-D1) Remaining Fund Balance Available (970B) (III-D2) TIF Fund Balance Re-Appropriated (970c) (III-D3) E TOTAL GENERAL FUND BALANCE FOR BUDGET (TFS48) (III-E) 4,334, ,398, ,732, PART V. GENERAL FUND WORKSHEET Elementary High School Total General Fund Budget A Adopted General Fund Budget (V-A) 46,537, ,839, ,376, BASE Budget Limit (V-A1) 38,285, ,399, ,685, Over-BASE Budget (V-A2) 8,251, ,439, ,691,

24 Budget Report- 01 General Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Funding the BASE Budget B Direct State Aid (V-B) 18,720, ,218, ,938, Direct State Aid Paid By State (V-B1) 18,720, ,218, ,938, Direct State Aid Paid By Non-Isolated District (V-B2) C Natural Resource Development (V-C) 210, , , D Quality Educator (V-D) 1,810, , ,563, E At Risk Student (V-E) 308, , , F Indian Education For All (V-F) 157, , , G American Indian Achievement Gap (V-G) 228, , , H Data For Achievement (V-H) 150, , , I Special Education Allowable Cost Payment (V-I) 1,519, , ,136, J Remaining Fund Balance Available (V-J) K Non-Levy Revenue (V-K) 1,856, , ,690, Actual Non-Levy Revenue (V-K1) , , Anticipated Non-Levy Revenue (V-K2) 1,855, , ,682, TIF Applied To Base Budget (V-K3) L Other Non-Levy Revenue (V-L) M BASE Levy Requirements (V-M) 13,324, ,589, ,913, State Guaranteed Tax Base Aid (V-M1) 8,181, ,799, ,980, *District Property Tax Levy To Fund BASE (BASE Levy) (V-M2) 5,143, ,790, ,933, N **Subtotal of BASE Budget Revenue (V-N) 38,285, ,399, ,685, Funding the Over-BASE Budget O Fund Balance & Non-Levy Revenue Available to Fund Over-B(V-O) P Over-BASE Only Revenues (V-P) 13, , , Prior Year Excess Reserves Reappropriated (Over-BASE Le(V-P1) Tuition (V-P2) 13, , , Flexible Non-Voted Levy Authority Transferred from (V-P3) Oil & Gas Revenues (V-P4) TIF Applied To OverBase Budget (V-P5) Q District Property Tax Levy to Fund Over-BASE Budget (Over-B(V-Q) 8,237, ,423, ,661, R Subtotal of Over-BASE Revenue (V-R) 8,251, ,439, ,691, Mill Levies S District Non-Isolated Mills (V-S) T BASE Mills- Elementary (V-T) U BASE Mills- High School (V-U) Elementary High School Total V Over-BASE Mills (V-V) District Property Tax Levy Mills (V-V1) Flexible Non-Voted Levy Authority (V-V2) W Total General Fund Mills (V-W) Adopted Budget ,537, ,839, ,376, Budget Uses Expenditure Budget ,537, ,839, ,376, Add to Fund Balance TIFFund Balance for Budget TFS

25 Budget Report- 01 General Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Estimated Funding Sources Unreserved Fund Balance Reappropriated Direct State Aid ,720, ,218, ,938, Quality Educator ,810, , ,563, At Risk Student , , , Indian Education For All , , , American Indian Achievement Gap , , , State Spec Ed Allowable Cost Pymt to Districts ,519, , ,136, Data For Achievement , , , Natural Resource Development , , , State Guaranteed Tax Base Aid ,181, ,799, ,980, Actual Non-Levy Revenue Tax Title and Property sales Interest Earnings , Revenue from Community Services Activities Other Revenue from Local Sources Rentals Contributions/Donations from Private Sources Textbook Sales and Rentals Fees- Users/Resale of Supplies Services Provided Other School Districts or Coops Services Provided Other Local Governmental Units Summer School Fees , , State Payment in Lieu of Taxes- FWP Anticipated Non-Levy Revenue- BASE Oil & Gas Revenues - BASE Budget Coal Gross Proceeds State School Block Grant ,855, , ,682, State Combined Fund School Block Grant SB96 Combined Block Grant Reimbursement Federal Revenue in Lieu of Taxes Anticipated Non-Levy Revenue- Over-BASE Elementary High School Total Oil & Gas Revenues - OverBASE Budget Individual Tuition , , , Tuition from School Dists Within State Tuition from School Dists Outside State State Tuition for State Placement Other Non-Levy Revenue Levies District Levy- Distn of Pr Yr's Prot/Dlq Taxes District Levy- Dept of Rev Tax Audit Receipts Penalties and Interest on Taxes Other Revenue Residual Equity Transfers In Mandatory Non-isolated Levy 1110(a) BASE Levy 1110(b) 5,143, ,790, ,933, Over-BASE Levy 1110 (c) 8,237, ,423, ,661, District Tax Levy ,380, ,213, ,594, Total Estimated Revenues to Fund Adopted Budget ,537, ,839, ,376, Estimated Revenues Exceeding Adopted Budget 0004a

26 TRANSPORTATION FUND 10 The Transportation Fund is used to pay for the costs of getting students from home to school and back. This can include the purchase of buses, building a bus barn, bus maintenance, bus driver salaries and benefits, hiring a private contractor to run the transportation program, and transportation reimbursement contracts. The state and county share in funding on-schedule costs that are based on bus routes and mileage contracts with parents. Additional funding is provided through fund balance re-appropriated, non-levy revenues and a district transportation fund levy. PURPOSE The transportation fund can be used to support the costs of transporting students between home and school, including: costs of yellow school bus purchase, repair, maintenance and operations; safety activities related to bus driver training, crosswalk attendants, etc.; bus storage facilities and maintenance; and payments to parents for individual transportation contracts. bus service contracts Costs of field trips, travel costs related to extracurricular activities and athletics, and staff travel costs are NOT ALLOWABLE costs of the fund. Reimbursements are based on eligible transportee (a student who resides at least 3 miles from the nearest school), bus route miles and rated capacity of the bus, non-bus miles, individual transportation contracts. OPI pays state reimbursement on: Sept. 1 50% of previous year s state reimbursement By March 31 1st semester reimbursement less amount paid on Sept. 1 By June 30 Remaining owed for 1st and 2nd semesters County pays county reimbursement after receiving the state payment report, usually in March/April and June. State funding is paid based on semi-annual claims to OPI in February for first semester and in May for second semester. The state will pay up to the lesser of the state funding calculated on the budget or one-half (1/2) of the total fund budget. The state pays the district for first semester in March and for second semester in June. At the same time, the county directs the county treasurer to pay the district the county s portion of the funding (MCA ). VOTING REQUIREMENTS The transportation fund tax levy is permissive. Consequently, it is not subject to voter approval. Reserve Limit 20% of ensuing year s budget. Re-appropriated amounts are applied first to reduce the local tax levy, then county reimbursement, then state reimbursement. Transportation Year Elementary High School Total $1,135,714 $494,366 $1,630, $1,184,184 $513,374 $1,697, $1,224,746 $528,943 $1,753, $1,252,674 $538,483 $1,791, $1,279,132 $548,453 $1,827, $1,309,282 $558,516 $1,867, $1,361,790 $599,230 $1,961, $1,689,470 $725,050 $2,414, $1,892,703 $773,957 $2,666, $1,949,485 $797,175 $2,746, $1,999,857 $817,368 $2,817, $2,070,300 $898,800 $2,969, $2,692,990 $831,713 $3,524, $2,781,340 $831,214 $3,612, $2,781,340 $831,214 $3,612, $2,888,225 $905,348 $3,793,573 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 23 Trend Data Total

27 Budget Report 10 Transportation Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget ,888, , ,793, Budget Uses Expenditure Budget ,888, , ,793, Add To Fund Balance Transportation Schedule Data On-Schedule , , , Contingency , , , Over-Schedule ,323, , ,057, TIFFund balance for Budget TFS Fund Balance for Budget TFS48 937, , ,322, Operating Reserve , , , Unreserved Fund Balance Reappropriated , , , Estimated Funding Sources Coal Gross Proceeds Individual Transportation Fees Trans Fees from Other School Districts within State Trans Fees from Other Schools Outside State Other Transportation Fees Interest Earnings Other Revenue from Local Sources State Tuition for State Placement State Payment in Lieu of Taxes- FWP State School Block Grant , , , State Combined Fund School Block Grant Montana Oil and Gas Tax Other Revenue Residual Equity Transfers In Reimbursements County On-Schedule Trans Reimb , , , State On-Schedule Trans Reimb , , , District Tax Levy ,882, , ,376, District Mills Total Estimated Revenues to Fund Adopted Budget ,888, , ,793, Estimated Revenues Exceeding Adopted Budget 0004a

28 The Tuition Fund is used in limited cases to pay tuition for a student who attends school outside his district of residence. Usually, the district pays tuition only for students the trustees have placed in another district or where geographic conditions make it impractical for the student to attend in his own district. Rates are set under MCA based on 20% of the per-anb entitlement for the year of attendance. Special education add-on rates are calculated under ARM Funding sources are fund balance re-appropriated, direct aid (for out-of-state tuition), non-levy revenue and a non-voted district tax levy. Effective July 1, 2013 a district may include in its tuition levy an amount necessary to pay for the full costs of providing FAPE (free and appropriate public education) to, any child with a disability who lives in the district, and amount of the levy imposed is limited to the actual cost of service under each child s IEP, less applicable state and federal special education funding. LEVY CALCULATION - Actual cost of service(s) under the child s IEP minus: The student s state special education payment The student s federal special education payment The student s per ANB amount The prorated portion of the district s basic entitlement for each qualifying student The prorated portion of the district s general fund payments (Quality Educator, At-Risk, Indian Education for All, and American Indian Achievement Gap) The Montana Office of Public Instruction site has an In-District Special Education Permissive Levy Tuition Calculator Spreadsheet for school districts to use to help determine the potential tuition amount which may be levied. Under MCA, Tuition is for students detained in youth detention centers for more than nine consecutive days, the county where the detention center is located may charge the student s district of residence $20/day. Invoices are sent by June 30. District must pay by July 15. Reserve Limit: None TUITION FUND 13 Tuition Year Elementary High School Total $176,782 $16,686 $193, $200,985 $105,750 $306,735 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Trend Data Total 25

29 Budget Report 13 Tuition Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget , , , Budget Uses Expenditure Budget , , , Add To Fund Balance TIFFund Balance for Budget TFS Fund Balance for Budget TFS Unreserved Fund Balance Reappropriated Estimated Funding Sources Coal Gross Proceeds Interest Earnings Other Revenue from Local Sources Direct State Aid State Payment in Lieu of Taxes- FWP State Combined Fund School Block Grant Montana Oil and Gas Tax Other Revenue Residual Equity Transfers In District Tax Levy , , , District Mills Total Estimated Revenues to Fund Adopted Budget , , , Estimated Revenues Exceeding Adopted Budget 0004a

30 RETIREMENT FUND 14 The Retirement Fund is used to pay the school district s share of specific employer contributions, including social security and Medicare taxes, Teacher s Retirement System (TRS) and Public Employees Retirement System (PERS) contributions, and state unemployment insurance. It is funded by the countywide retirement levy. Senate Bill 424, enacted by the 2003 Montana Legislature and signed into law by the Governor, requires school districts to use federal funds for employer contributions to the retirement, federal social security and unemployment insurance systems for all employees whose salaries are paid from a federal funding source, excluding Impact Aid and school foods. PURPOSE This fund is used to pay the employer contributions to the Teachers Retirement System, Public Employees Retirement System, unemployment insurance, social security and Medicare for the following: 1) A district employee whose salary and health-related benefits, if any, are paid from state or local funding sources; 2) A cooperative employee whose salary and health-related benefits, if any, are paid from the cooperative s interlocal agreement fund if the fund is supported solely from district s general funds and state special education allowable cost payments (or are paid from the miscellaneous programs fund from money received from the Medicaid program); 1) A district employee whose salary and health-related benefits, if any, are paid from the district s school food services fund; 2) A district employee whose salary and health-related benefits, if any, are provided to the employee, are paid from the district Impact Aid fund. The fund CANNOT be used to pay: 1) retirement incentives; 2) any portion of a retirement fund contribution on behalf of an employee (i.e., only the employer s contributions can be paid from the fund; or 3) any amount paid to an employee directly (i.e., only payments to TRS, PERS, FICA, and unemployment insurance carriers are allowable). (MCA ) BUDGET In order for the county to accurately determine the levy, districts must submit a list of all employment positions and their salaries to the county superintendent when submitting the adopted budget. (MCA ) FUNDING District non-levy revenue and Fund Balance re-appropriated reduces the county retirement distribution requirement. The county retirement distribution is funded by countywide levy, county oil and gas taxes, county coal gross proceeds taxes, county school retirement fund block grant ( , MCA), and Guaranteed Tax Base Aid if the county retirement mill value per ANB is less than the statewide mill value per ANB. RESERVES An operating reserve of up to 20% of the ensuing year s budget is permitted. This percentage was reduced from 35% during the 2013 legislation session. Shortfalls in the retirement fund can present significant problems to both the District and County. Retirement Year Elementary High School Total $4,283,564 $2,201,146 $6,484, $4,183,515 $2,193,122 $6,376, $4,162,586 $2,225,927 $6,388, $4,277,213 $2,224,916 $6,502, $4,282,800 $2,240,297 $6,523, $4,244,000 $2,270,175 $6,514, $4,397,426 $2,434,103 $6,831, $4,485,375 $2,641,476 $7,126, $5,063,308 $2,728,893 $7,792, $5,200,000 $2,800,000 $8,000, $5,253,938 $2,811,751 $8,065, $5,427,826 $2,845,000 $8,272, $5,617,800 $2,944,575 $8,562, $5,700,000 $3,000,000 $8,700, $6,000,001 $3,240,000 $9,240, $6,400,000 $3,520,000 $9,920,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Trend Data Total 27

31 Budget Report 14 Retirement Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget ,400, ,520, ,920, Budget Uses Expenditure Budget ,400, ,520, ,920, Add To Fund Balance Fund Balance for Budget TFS48 822, , ,561, Operating Reserve , , ,526, Unreserved Fund Balance Reappropriated , , Estimated Funding Sources Interest Earnings Other Revenue from Local Sources Other Revenue Residual Equity Transfers In County Retirement Distribution ,400, ,484, ,884, Total Estimated Revenues to Fund Adopted Budget ,400, ,520, ,920, Estimated Revenues Exceeding Adopted Budget 0004a

32 ADULT EDUCATION FUND 17 State law authorizes districts to establish an adult education program (MCA ). The program may provide any area of instruction approved by the trustees, including basic and secondary general education and vocational/ technical education. Revenue sources for this fund are fund balance re-appropriated, non-levy revenue (including student fees) and a non-voted district tax levy. PURPOSE A district that operates an adult education program must use this fund. Taxes levied for support of the adult education program and student fees for adult education are deposited in this fund pursuant to MCA VOTING REQUIREMENTS Tax levies are permissive. No voter approval is required for this fund. Adult Education Year Elementary High School Total $141,625 $178,253 $319, $143,605 $170,372 $313, $146,856 $171,722 $318, $146,175 $170,170 $316, $151,535 $184,775 $336, $162,330 $185,225 $347, $212,330 $244,652 $456, $297,204 $300,000 $597, $306,679 $348,515 $655, $310,782 $348,515 $659, $305,098 $322,325 $627, $280,750 $346,325 $627, $290,000 $345,625 $635, $335,570 $300,055 $635,625 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Trend Data Total 29

33 Budget Report 17 Adult Education Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget , , , Budget Uses Expenditure Budget , , , Add To Fund Balance TIFFund Balance for Budget TFS Fund Balance for Budget TFS48 148, , , Operating Reserve Unreserved Fund Balance Reappropriated , , , Estimated Funding Sources Coal Gross Proceeds Fees for Adult Education Interest Earnings Other Revenue from Local Sources State Payment in Lieu of Taxes- FWP State Combined Fund School Block Grant Montana Oil and Gas Tax Other Revenue Residual Equity Transfers In District Tax Levy , , , District Mills Total Estimated Revenues to Fund Adopted Budget , , , Estimated Revenues Exceeding Adopted Budget 0004a

34 TECHNOLOGY FUND 28 The Technology Fund is used for the purchase, rental, repair and maintenance of technology equipment and computer network access, associated technical training for school district personnel, cloud computing services, including any subscription or any license-based or pay-per-use service that is accessed over the internet or other remote network to meet the district s information technology and other needs. It is funded by state technology grant, fund balance re-appropriated, non-levy revenues, state, federal and private grants or donations that will be spent in the budget year, and a district tax levy. The district tax levy is limited to 20% of the cost of the computer equipment and computer network access, not to exceed 150% of the cost over time. Our district collects $150,000 for Elementary District and $75,000 for High School District per year. The district s voters must approve any increase in taxes from the previous year. The 2013 legislature made changes to Technology Fund levies as indicated by the information below: PURPOSE This fund is used for: 1) Purchasing, renting, repairing or maintaining technology equipment and computer network access using the State Technology Grant ( Timber Money ) under MCA and associated tax levies under MCA ; and 2) State, Federal and private grants and donations received for the purpose of funding technology or technologyassociated training. Levies approved prior to July 1, 2013 Can be permanent or durational Annual levy cannot exceed 20% of the original cost of equipment owned by the district Amount levied over time cannot exceed 150% of the original cost of the equipment $$ can be used for equipment, network access and training of school personnel Levies approved after July 1, 2013 May not exceed 10 years Can be based on all allowable costs listed in the statute (equipment, cloud storage, training, etc.) Districts with an existing perpetual levy can Ask for an increase in the amount of the levy to cover cloud computing and training, and/or Seek relief from tracking depreciation under existing levy Can propose a duration for each, not to exceed 10 years Employer contributions for Social Security, Medicare, TRS, PERS, and unemployment insurance may not be paid from this fund. Reserves limit = none Re-appropriate all fund balance to support the ensuing year s budget. Technology Year Elementary High School Total $154,835 $76,000 $230, $305,644 $122,000 $427, $574,500 $282,000 $856, $476,000 $354,000 $830, $622,500 $406,500 $1,029, $615,947 $290,000 $905, $749,400 $338,250 $1,087, $802,650 $241,430 $1,044, $801,347 $280,000 $1,081, $813,816 $431,311 $1,245, $813,816 $429,885 $1,243, $727,378 $422,968 $1,150, $852,681 $372,277 $1,224, $1,045,766 $374,663 $1,420,429 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Trend Data Total 31

35 Budget Report 28 Technology Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget ,045, , ,420, Budget Uses Expenditure Budget ,045, , ,420, Add To Fund Balance TIFFund Balance for Budget TFS Fund Balance for Budget TFS48 852, , ,131, Operating Reserve Unreserved Fund Balance Reappropriated , , ,131, TIF Fund Balance Reappropriated Estimated Funding Sources Coal Gross Proceeds Interest Earnings Other Revenue from Local Sources State Technology Aid , , , State Payment in Lieu of Taxes- FWP State Combined Fund School Block Grant Montana Oil and Gas Tax Other Revenue Residual Equity Transfers In District Tax Levy , , , District Mills Total Estimated Revenues to Fund Adopted Budget ,045, , ,420, Estimated Revenues Exceeding Adopted Budget 0004a

36 FLEXIBILITY FUND 29 This fund was created by legislative action in 2001 ( MCA). Its intent was to provide schools one-time only source of funding which could be used for its own unique circumstances. This fund is used for technology, facility expansion, student assessment and evaluation, curriculum development and other types of expenditures as described in MCA Under MCA, the trustees have the option of submitting to the qualified electors of the district to approve a levy in an amount not to exceed 25% of the district s original allocation. If there is no state payment, there can be no levy. PURPOSE This fund is used for: Technology Facility/equipment expansion Student assessment and evaluation Curriculum development Training for classroom staff to support delivery of education programs Classroom teacher housing Retention of certified staff Increased energy costs caused by increases since 2001 Reserve limit = none The fund balance is re-appropriated to support the ensuing year s budget. Beginning July 1, 2020 fund balance limit is 150% of the Maximum General Fund budget. Excess must be remitted to the state. Flexibility Year Elementary High School Total $222,115 $75,000 $297, $222,115 $75,000 $297, $232,856 $79,903 $312, $244,949 $85,350 $330, $260,000 $98,000 $358, $283,200 $109,385 $392, $300,000 $115,000 $415, $317,271 $118,100 $435, $324,250 $120,500 $444, $337,787 $130,148 $467, $383,494 $154,326 $537, $341,860 $153,306 $495, $306,653 $13,608 $320, $290,964 $14,236 $305,200 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Trend Data Total 33

37 Budget Report 29 Flexibility Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget , , , Budget Uses Expenditure Budget , , , Add To Fund Balance TIFFund Balance for Budget TFS Fund Balance for Budget TFS48 290, , , Operating Reserve Unreserved Fund Balance Reappropriated , , , TIF Fund Balance Reappropriated Estimated Funding Sources Coal Gross Proceeds Interest Earnings Other Revenue from Local Sources State Technology Aid State Payment in Lieu of Taxes- FWP State Combined Fund School Block Grant Montana Oil and Gas Tax Other Revenue Residual Equity Transfers In District Tax Levy District Mills Total Estimated Revenues to Fund Adopted Budget , , , Estimated Revenues Exceeding Adopted Budget 0004a

38 DEBT SERVICE FUND 50 The Debt Service Fund ( MCA) is used to budget and pay for a school district s bond debt, including principal and interest payments and agent fees, and/or special improvement district payments (SIDs). State equalization aid (known as state reimbursement for school facilities) is available to school districts that have a district mill value per ANB that is less than the corresponding statewide mill value per ANB. Debt Service Fund revenues also include fund balance re-appropriated, and non-levy revenue. PURPOSE This fund is used to pay debt service payments for principal and interest on bonds or Special Improvement Districts (SIDs). The expenditure budget of the fund should include both principal and interest payments due on bonds for each fiscal year of the bond term. OPI recommends a district budget and pay the obligations due 1/1 and 7/1 in each budget year. Debt Service Year Elementary High school Total $3,545 $652,663 $656, $3,545 $1,209,422 $1,212, $3,545 $563,400 $566, $0 $562,745 $562, $0 $565,745 $565, $0 $561,068 $561, $0 $564,530 $564, $0 $0 $ $0 $31,309 $31, $0 $0 $ $0 $179 $ $0 $194 $ $0 $908 $ $0 $914 $ $0 $1,110 $1, $0 $1,110 $1,110 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Trend Data Total 35

39 Budget Report 50 Debt Service Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Taxable Value Adopted Budget , , Budget Uses Expenditure Budget , , Add To Fund Balance TIFFund Balance for Budget TFS Fund Balance for Budget TFS , , Fund Balance In Sinking Fund Operating Reserve Unreserved Fund Balance Reappropriated , , TIF Fund Balance Reappropriated Estimated Funding Sources Coal Gross Proceeds Interest Earnings Other Revenue from Local Sources State Payment in Lieu of Taxes- FWP State Combined Fund School Block Grant Montana Oil and Gas Tax Other Revenue District Tax Levy , Jurisdiction Mills Total Estimated Revenues to Fund Adopted Budget , , Estimated Revenues Exceeding Adopted Budget 0004a SIDs Issue Type: High School 1, Total SID Requirements 1, Total Debt service Requirements ,

40 BUILDING RESERVE FUND 61 PURPOSE This fund accumulates funding for the future construction, and equipping or enlarging of school buildings, or for the purpose of purchasing land needed for school purposes, on authority of a voted levy. The funds also can be used for transition costs related to opening or closing a school or replacing a school building or to repay an intercap loan. MCA LEVY LIMITS AND VOTING REQUIREMENTS Tax levies are limited by the building reserve election(s): For a regular building reserve project, the annual tax levy is limited to the total authorized by the vote, divided by the numbers of years authorized. For a transition building reserve project, the election may propose up to 5% of the district s current year maximum general fund budget or $250 per ANB (MCA ). The levy for the year may be reduced, but is not required to be reduced, by estimating non-levy revenues. In the last legislative session Senate Bill 348, which dealt with School Safety allows transfers from any budgeted or non-budgeted fund (except Retirement and Debt Service) to Building Reserve. FY2013, FY2014, FY2015 ONLY - Funds transferred from other funds for SB348 School Safety purposes must be spent on: Planning for improvements to school safety Installing or updating locking mechanisms and ingress and egress systems at public school access points Installing or updating bullet-resistant windows and barriers Installing or updating emergency response systems Unspent funds remaining as of June 30, 2015 must be transferred back to the originating fund. A building reserve tax authorization may not exceed 20 years for most purposes. The tax authorization for transitional costs may not exceed six (6) years. Transitional costs associated with creating a K-12 district may not exceed three (3) years. Reserve limit - None Fund balance is re-appropriated to fund the ensuing year s budget. Building Reserve Year Elementary High school Total $2,694,597 $110,000 $2,804, $2,040,000 $110,000 $2,150, $1,700,000 $1,453 $1,701, $1,620,000 $1,500 $1,621, $1,700,000 $1,550 $1,701, $950,000 $1,700 $951, $1,000,000 $33,000 $1,033, $500,000 $33,262 $533, $100,000 $33,150 $133, $137,511 $33,169 $170, $145,490 $5 $145, $197,840 $21,171 $219, $256,976 $41,736 $298, $238,888 $69,988 $308,876 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Trend Data Total 37

41 Budget Report 61 Building Reserve Fund FY Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary High School Total Adopted Budget , , , Budget Uses Expenditure Budget , , , Add To Fund Balance TIFFund Balance for Budget TFS Fund Balance for Budget TFS48 179, , , Operating Reserve Unreserved Fund Balance Reappropriated , , , TIF Fund Balance Reappropriated Estimated Funding Sources Coal Gross Proceeds Tax Title and Property Sales Interest Earnings Other Revenue from Local Sources State Payment in Lieu of Taxes- FWP State Combined Fund School Block Grant , , , Montana Oil and Gas Tax Other Revenue Residual Equity Transfers In Use Estimated Non-Levy Revenue to Lower Levies? (Yes or No) No No District Tax Levy , District Mills Total Estimated Revenues to Fund Adopted Budget , , ,

42 EDUCATION ACRONYMS & KEY SCHOOL FUNDING TERMS Montana Office of Public Instruction November 2014 Commonly Used K-12 Education Acronyms & Key School Funding Terms Acronym ANB ARM Meaning Average Number Belonging - The term used for the number of children in attendance in a school district Administrative Rules of Montana - Administrative rules are agency regulations, standards or statements of applicability that implement, interpret, or set law or policy. An agency can also adopt administrative rules that describe the organization, procedures or practice At-risk payment BASE Basic Entitlement BPE DSA GTB IEFA American Indian Achievement Gap MCA NRD Per-ANB entitlement OPI PIR QE RSBG TRS A lump sum appropriation that is distributed in the same way that federal Title I dollars are distributed to districts, based on the number of children living in poverty in the district. Base Amount for School Equity - The minimum general fund budget that all public school districts must adopt in Montana. A set amount each district includes in its general fund budget; SB 175 (2013) added increments so that districts with higher enrollments are funded at a higher level. Montana Board of Public Education- The Board of Public Education was created by the Montana Constitution of 1972 to exercise general supervision over the elementary and secondary schools of the state. Data for AchievementA per-anb payment to districts to provide funding for costs associated with data systems. Direct State Aid; every district receives 44.7 percent of the district s basic and per-anb entitlements for the state as a DSA. Guaranteed Tax Base- The Guaranteed Tax Base Aid Program Is a state program that provides subsidized funding for school districts whose ratio of taxable value to students in attendance is lower than the established statewide threshold. Indian Education For All; a per-anb payment to districts to implement the state s constitutional commitment in its education goals to the preservation of Indian cultural integrity. A payment to districts for every Indian student enrolled in the district for the purpose of closing the achievement gap that exists between Indian and non-indian students. Montana Codes Annotated - The Montana statutes Natural Resource Development payment (perhaps affectionately known as the nerd payment); a payment to districts to offset local property tax increases that would result from increases to state entitlements. Roughly a per-student amount each district includes in its general fund budget; a decrement reduces this amount by 50 cents per high school ANB for each additional ANB up to 800 ANB and by 20 cents per elementary ANB through the 1,000th ANB a way of addressing economies of scale. Office of Public Instruction Pupil-instruction-related day is a day of teacher activities devoted to improving the quality of instruction. Quality Educator a payment to districts based on the number of qualified teachers employed. Related Services Block Grant Teacher's Retirement System 39

43 UNDERSTANDING MONTANA SCHOOL FINANCE & SCHOOL DISTRICT BUDGETS Statewide Public School Overview Q: How many public school districts does Montana have? A: For the three most recent school years, Montana had the following number of school districts: FY2012 FY2013 FY2014 Elementary High School K Q: How many students are enrolled in Montana s public schools? A: In FY , there were 144,129 students enrolled in K-12 public education. This includes 144,034 students enrolled in public schools and 95 students enrolled in state-funded schools (Pine Hills, Riverside, and Montana School for the Deaf and Blind). Q: How much of Montana s school funding comes from federal, state, county, and local sources? A: In Fiscal Year , schools received about 43.68% of their funding from the state, 25.71% from local property taxes, 8.68% from county sources, 9.42% from non-tax local sources, and 12.51% from federal sources. (OPI, Revenue Core File 2013) Q: What is the total general fund budget for Montana s school districts? How much does the state fund? A: Total school general fund budgets for were about $1.015 billion. The state funded about $651 million (64.08%). Q: How much of school general funds are supported by local property taxes? A: In , local property taxes supported $296 million (29%) of the total school general fund budgets statewide. Q: What is the average school general fund budget per pupil in Montana? A: In , districts budgeted an average of $7,050 per pupil. Of that amount, the state support was $4,518 per pupil. Q: What portion of money from the lottery goes to Montana schools? Are lottery funds still earmarked for education? A: Lottery money is no longer earmarked for education, but it is one funding source used for education. In 1986, the Montana State Lottery Act passed by 69% of the popular vote. Under that Act, the lottery profits were used to fund the Teachers Retirement System in order to hold the line on, or reduce, property taxes. In 1989, the Legislature allocated lottery profits to state equalization aid for schools. In 1991, the Legislature allocated lottery profits to the state s general fund. In the state general fund, the lottery profits are combined with many other state resources used to fund a variety of state programs. Other more significant revenues that fund the state general fund include state income taxes, property taxes, and coal trust interest earnings. Based on FY 2014, approximately 0.6% of the state general fund money came from lottery profits. In FY2014, the total general fund revenue was about $2.1 billion, and lottery profits brought in about $12.1 million, or 0.6% (six tenths of one percent). About $715 million of the state general fund is used for school funding purposes annually. The Teachers Retirement system benefits school teachers in Montana, who pay 8.15% of their salaries into the system. School district employers contribute 8.47%, and the state pays.238% plus $25 million. Q: What is ANB? A: In October, December and February of each school year, school districts report the number of students enrolled in their schools to the OPI. From these counts, ANB is calculated. ANB is then used to calculate the per-student entitlement, special education funding, Indian Education for All, and the Data for Achievement payment these, together with the basic entitlement, At-Risk Student payment, and the Quality Educator payment, make up the BASE (minimum) and Maximum general fund budget levels for the following school year. A school district is allowed to use current year ANB or 3-year average ANB for each budget unit by level (elementary or high school), whichever generates the greatest Maximum general fund budget. Current year ANB is the ANB for the budget unit for the ensuing school fiscal year. 3-year average ANB means an average of ANB over the most recent 3-year period, calculated by adding the current year ANB to the current ANB for each of the previous two school fiscal years, dividing the sum by 3, and rounding up to the next whole number. Q: How does the state fund special education? A: OPI distributes state funding for special education in three categories: 40

44 1) Instructional Block Grant (IBG) and Related Services Block Grant (RSBG) These block grants are based on the ANB of a 2) district. The money is spent on allowable special education costs as defined in , MCA. The district must spend $1 of local money for every $3 received from each block grant. If a school district is a member of a special education cooperative, the state pays the district s RSBG directly to the cooperative. 2) Reimbursement (40%) for Disproportionate Costs Districts with unusually high special education costs may be eligible for additional special education reimbursements. 3) Additional administrative/travel funding for special education cooperatives. Q: What is Fund Balance Re-appropriated? A: At the end of the fiscal year (June 30), most districts still have cash on hand. After considering any unpaid obligations, the remainder is referred to as Fund Balance. School districts are allowed to set aside, or reserve, some or all of their fund balance in order to continue operation of the school district until funding is received from the state and property taxes. Fund Balance Re-appropriated is the difference between the end-of-year fund balance and the amount reserved for operations. It must be used to fund the next year s budget. In 2011, the legislature limited the amount of fund balance that may be appropriated to 15% of the maximum general fund budget. Excess funds must be remitted to the state guarantee account (70%) and state school facility account (30%). Q: How much fund balance is a district allowed to reserve for operations? A: By law a district cannot carry over more than $10,000 or 10% of the upcoming school year budget of the general fund (whichever is greater). Reserve limits have also been established for some of the other budgeted funds (Transportation Fund 20%, Retirement Fund 20%, and Adult Education Fund 35%). Q: Do the Building Reserve, Technology and Flexibility Fund elections have to be held along with the general fund election in May? A: No. These are special elections that can be held at any time, as long as the proper election procedures are followed. In order to allow enough time for completing the election before the budget is adopted, the school district would need to hold the election no later than August 1. How to Read a Property Tax Bill Property taxes are based on the market value of the property and the taxable rate. The Montana Constitution places the responsibility for property tax values on the state. All taxing jurisdictions must use the assessed valuation of property established by the state (Article VIII, Sections 1 and 4). The Department of Revenue is responsible for the appraisal, assessment, and equalization of the value of all property in the state for the purpose of taxation. The Legislature establishes various classes of property and the rate of tax on each class. Local governments (counties, cities, school districts, fire districts, etc.) determine the mill levy requirements for each taxing jurisdiction. By the later of the first Thursday in September or within 30 calendar days after receiving certified taxable values. (MCA ). Department of Revenue staff calculates the property tax liability for each property using the mill levies, including special district fees and charges. The county treasurer is responsible for the billing, collection, and reconciliation of property taxes. Information about property taxes is available at the Department of Revenue s website at: Q: What is property tax liability? A: It is the amount of taxes a property owner must pay to the county treasurer each year. The first half is due in November and the second half is due in May. Property tax liability depends on the taxable value of property owned by the taxpayer and the number of mills levied. Q: What is taxable value? A: Taxable value is the market value of a piece of property times the tax rate for that property. Taxable value times the number of mills levied by the different taxing jurisdictions (i.e., school districts, cities, counties, state) will determine the property tax liability. Taxable Value = Market Value Tax Rate Taxable Value.001 = Mill Value Mill Value Mills = Property Tax Liability Q: What is a tax rate? A: The tax rate is the percentage of market value of property that is considered taxable. Q: Do all property owners pay the same tax rate? A: Under state law, different types, or classes, of property are taxed at different rates. The property classification system is as follows (Tax Year 2014 taxable value percentages are shown in parenthesis): (Note: Some exclusions of market value apply to certain classes of property before these rates apply.) Class 1 Net proceeds of mines and mining claims, except coal and metal mines (100%) Class 2 Gross proceeds of metal mines (3%) 41

45 Class 3 Agricultural land (2.47%) Nonproductive patented mining claims (2.47%) Nonagricultural land 20 acres or more but under 160 acres (17.29%) Class 4 Residential, commercial, and industrial land and improvements (2.47%) Golf courses (1.24%) Mobile homes/manufactured homes (2.47%) One-acre home sites located on non-qualified agricultural land or forest land (2.47%) Class 5 Air and water pollution control equipment (3%) Rural electric and telephone cooperatives (3%) Real and personal property of new industry (3%) Machinery and equipment used in electrolytic reduction facilities (3%) Real and personal property of research and development firms (3%) Real and personal property used to produce gasohol (3%) Class 6 Repealed Sections 27, 31, Chapter 285, L (Now Exempt) Class 7 Qualifying rural electric associations (8%) Class 8 If the statewide aggregate market value of an individual or business entity's class eight business equipment is: (a) $100,000 or less, the taxable market value of the property is zero and therefore exempt from taxation; (b) $6,100,000 or less, the department will apply the $100,000 exemption proportionally between each property owned and apply a (1.5%) taxable rate to the remaining taxable market value; or (c) greater than $6,100,000 the department will apply the $100,000 exemption proportionally between each property owned and apply the (1.5%) taxable rate proportionally to the next $6,000,000 of taxable market value, and apply a (3%) taxable rate to the remaining taxable market value. Class 9 Real & personal property of pipelines and the non-electric generating properties of electric utilities (12%) Class 10 Forest land (0.29%) Class 11 Repealed. Sec. 9, Chapter 267, L Class 12 Real and personal property of railroads, railroad car companies, and airlines is determined annually For 2013, the taxable percentage is 3.39% , MCA Class 13 Real & personal property of telecommunication utilities and the electric generating property of electric utilities (6%) Class 14 Class 15 Class 16 Qualifying wind generation facilities (3%) Biodiesel production facilities constructed after June 1, 2007 (3%) Biogas production facilities constructed after June 1, 2007 (3%) Biomass gasification facilities (3%) Coal gasification facilities and ethanol production facilities constructed after June 1, 2007 (3%) Geothermal facilities Integrated gasification combined cycle facility that sequesters carbon dioxide (3%) Renewable energy manufacturing facilities constructed after June 1, 2007 (3%) Natural gas combined cycle facilities (3%) Equipment constructed after December 31, 2007 used to capture carbon dioxide and prepare it for transport before it is sequestered or else injected to enhance the recovery of oil and gas (3%) Qualifying high-voltage transmission lines constructed after June 1, 2007 (3%) Qualifying alternating current transmission lines and equipment constructed after June 1. Department of Environmental Quality (DEQ) - certified pipelines used to transport carbon dioxide that is sequestered or used in closed-loop enhanced oil recovery operations (3%) DEQ qualified liquid pipelines (3%) Equipment used in closed-loop enhanced oil recovery operations (3%) Qualifying pipelines and equipment carrying products other than carbon dioxide that originate at a qualifying wind generation facility and terminate at an existing pipeline or facility (3%) Qualifying high voltage DC converter station property located in allocation where power can be directed to two different regional grids (2.25%) Q: What is a mill? A: A mill is one-thousandth (.001) of a dollar. School districts can determine how much a mill will raise by taking the total taxable value in a district (an amount provided to the school district by the county assessor) and multiplying it by.001. This result is equal to what one mill will raise. Example: The taxable value of property in an elementary district is $46,000,000. This amount multiplied by.001 equals $46,000. In other words, the amount of money raised by levying one mill would be $46,000. If this district needs to raise $2,500,000, it would divide $2,500,000 by $46,000, thus determining that mills are needed. Q: Are any properties exempt from property tax? A: Several different properties are not subject to property taxes. Examples include: Disabled Veterans Land; School, City and County Lands; Churches; U.S. Government Land; Municipal Corporations; Some Nonprofit Organizations (such as nonprofit health care facilities); and Public Facilities (such as museums, art galleries, zoos, etc.) Q: How do schools fund athletics and activities? A: School districts fund athletics and activities, such as football, basketball, band, speech, etc., using gate receipts and participation fees, fundraisers, donations from booster clubs and parent organizations. Districts also support these programs using their general fund budgets. 42

46 2015 LEGISLATIVE SESSION 2015 Legislative Session Overview Provided by MTSBA (edited by Brian Patrick) HB 2 General Appropriations Act This key funding bill for all state expenditures is split up into Subcommittees during the early days of the Legislature. The OPI budget is contained in Section E. HB 27 School Funding This bill increases the Basic and Per ANB Entitlements by inflation, and includes the other elements of the school funding system as was provided in SB 175 from last session (fiscal note of $14.3 million in FY16 and $26.6 million in FY17). The inflationary adjustments are 2.33% in FY2016 and 1.79% in FY2017. The bill also authorizes the natural resource damage payment which offsets increases in under-base local property taxes. (Cost of the NRD payment are estimated at $4.9 million in FY16 and $8.1 million in FY17 offset by GTB savings of $2.3 million in FY16 and $3.7 million in FY17. Description of fiscal impact: HB 27 applies the statutory language for inflationary increase of 2.33% in FY 2016 and 1.79% in FY 2017 to the basic entitlement, per-anb entitlement, quality educator payment, the Indian education for all payment, the American Indian achievement gap payment, and the data for achievement payment. These increases constitute the present law adjustment of $53.9 million for K-12 BASE aid presently included in the Governor s Executive Budget. The present law inflation applied to the Basic and Per-ANB Entitlements, the Quality Educator, Indian Education for All, American Indian Achievement Gap, Data for Achievement, and the At Risk Components ( , MCA) (At Risk adjustment is found in HB 2 under existing statute) is 2.33% in FY 2016 and 1.79 % in FY For the present law budget, entitlement and component is set as follows: Basic Entitlements FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Elementary Basic $40,000 $50,000 $50,895 $51,526 $52,093 Middle School Basic $80,000 $100,000 $101,790 $103,052 $104,186 High School Basic $290,000 $300,000 $305,370 $309,157 $312,558 Basic Entitlement Increments Elementary $2,000 $2,500 $2,545 $2,576 $2,605 (Each 25 ANB > 250 ANB) Middle School $4,000 $5,000 $5,090 $5,153 $5,209 (Each 45 ANB > 450 ANB) High School $12,000 $15,000 $15,269 $15,458 $15,628 (Each 80 ANB past 800 ANB) Per ANB Entitlements FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Elementary Per-ANB $5,226 $5,348 $5,444 $5,512 $5,573 High School Per-ANB $6,691 $6,847 $6,970 $7,056 $7,134 Direct State Aid (DSA) Percentage 44.7% 44.7% 44.7% 44.7% 44.7% Components FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Indian Education for All $20.40 $20.88 $21.25 $21.51 $21.75 Indian Achievement Gap $200 $205 $209 $212 $214 Quality Educator $3,042 $3,113 $3,169 $3,208 $3,243 At Risk $5,149,426 $5,269,408 $5,363,730 $5,430,240 $5,489,973 Data for Achievement $15.00 $20.00 $20.36 $20.61 $20.84 The Natural Resources Development payment is estimated to be $4.9 million in FY 2016 and $8.1 million in FY 2017 with offsetting GTB savings of $2.3 million in FY 2016 and $3.7 million in FY The Natural Resource Development payment is defined as an amount sufficient to offset any estimated increase in statewide revenue from the general fund BASE budget levy provided for in , MCA, that is anticipated to result from increases in the basic or per-anb entitlements. The local property tax impact will vary by district 43

47 The state special education allowable cost payment remains at the FY 2015 level of $42.8 million per year. The statewide taxable valuations are forecast to increase by 1.20% in FY 2016 and 3.30% in FY HB 31 School Finance Revisions This bill can be characterized as a clean-up bill in the area of Guaranteed Tax Base (GTB), making some language changes that do not impact the way GTB is calculated or distributed. The bill also provides an update the use of the bus depreciation reserve fund to allow communication systems and safety devices to be installed on buses. The bill provides the following definition: "Guaranteed tax base aid budget area" or "GTBA budget area" means the portion of a district's BASE budget after the following payments are subtracted: (a) direct state aid; (b) the total data-for-achievement payment; (c) the total quality educator payment; (d) the total at-risk student payment; (e) the total Indian education for all payment; (f) the total American Indian achievement gap payment; and (g) the state special education allowable cost payment. HB 114 Tax Increment Finance Districts This bill directs the use of any remittances received by a school district from a Tax Increment Finance (TIF) District. The bill directly impacted three school districts that had long-standing inter-local agreements in their communities. HB 157 School District Leasing This bill extended school district leasing authority period limit to up to 7 years for personal property and up to 15 years for real property. HB 162 Digital Academy Operating Costs This bill gives the Digital Academy Board authority to propose rules to set fees that would be paid by school districts enrolling students in the digital academy for costs that are in addition to any amount appropriated by the legislature for the operating costs of the digital academy. No fees are anticipated at this time and the legislature did not impose any fees. HB 356 Career and Vocational Funding Increased funding by $1 million per year for career and vocational/technical education. HB 373 School Bonding Limits This bill doubles the bonding capacity of school districts by taking the percentage of total taxable value making up the bonding capacity of a school district from 50% to 100%. SB 128 Decennial School Funding Study The bill establishes a decennial school funding study, the creation of a school funding interim commission, and provides the structure of the 10-year study that will be done during the upcoming Interim. The School Funding Interim Commission will "...conduct a study to reassess the educational needs and costs related to the basic system of free quality public elementary and secondary schools; and if necessary, recommend to the following legislature changes to the state's funding formula..." The results of the Interim study will be provided to the 2017 Legislature. There will be six House Members, six Senate Members, and four members of the public (two appointed by the Speaker and two by the President of the Senate). SB 213 Safety Fund Transfers Extends the ability of a school district to transfer funds from any budgeted or non-budgeted fund to the building reserve for purposes of being spent on safety and security measures as defined in SB 348 from the 2013 session. SB 252 Oil and Natural Gas Production Taxes This bill provides flexibility to school districts who are impacted by a decline in oil & gas production tax revenue by eliminating the requirement that they budget oil and gas production taxes equal to the lesser of 25% of the total oil & gas production taxes received by the district in the prior year or the general fund levy requirement. The bill provides for oil & gas production taxes allocated to the district general fund being applied to the BASE or over-base portions of the general fund budget at the discretion of the trustees. If trustees apply an amount less than 12.5% of the total oil & gas production taxes received by the district in the prior school fiscal year to the district s general fund BASE budget for the upcoming school fiscal year, the trustees must levy the number of mills required to raise an amount equal to the difference between 12.5% of the oil & gas production taxes received by the district in the prior school fiscal year and the amount the trustees budget in the district s general fund BASE budget for the upcoming school fiscal year. The mills levied are not eligible for GTB. This provision does not apply to a district that has a maximum general fund budget of less than $1 million, a district whose oil & gas revenue combined with its adopted general fund budget totals 105% or less of its maximum general fund budget, a district with a maximum general fund budget of $1 million or 44

48 more and has had an unusual enrollment increase approved by OPI in the immediately preceding fiscal year, or a district that has issued outstanding oil & gas revenue bonds. SB 260 Oil and Gas Production tax revision This bill takes the place of concentric circles effective July 1, OPI will distribute any amount of oil & gas taxes exceeding the 130% retained by districts to school districts directly impacted by oil and gas development, but that receive insufficient oil & gas revenues to address those impacts. OPI will use a negotiated rulemaking process first regarding distribution of 50% of the funds available to school districts that are directly impacted by oil & gas development, but that receive insufficient oil and gas revenues to address the impacts and that are located in or immediately adjacent to a county in which oil & gas taxes are generated, and then 50% to districts further removed from the immediately adjacent counties who also may be impacted by development. SB 410 Tax Credit Contributions for Schools This Public and Private schools Tax Credit legislation takes effect on January 1, The bill permits tax credits for donations to public schools for innovative educational programs. The bill permits tax credits for donations to student scholarship organizations that will then be disbursed to a private education provider. The intent of the bill is to maintain compliance with the Montana Constitution which prohibits direct and indirect aid to sectarian schools through Article X, Section 6. This bill creates geographic regions of the state and provides for OPI to distribute supplemental funding to eligible public schools for innovative educational programs and technology deficiencies. The bill defines requirements for student scholarship organizations and requires that such organizations deliver funds directly to the qualified education provider. An individual credit may not exceed $150 and aggregate amount of tax credits begin at $3 million in tax year 2016, with triggers to increase this amount by 10% if the aggregate level is met. HB 84 Election Laws (see page 47 for additional information) This comprehensive bill streamlines the due dates and deadlines for the election process at all levels. This bill affects school district elections: Candidates for trustee no longer have to collect signatures for their petition. They just have to file the form at least 40 days before election day. The resolution for calling an election was changed to 70 days prior to election day to be consistent with the requirements for running a mail ballot election. If you re running a mail ballot election, this will change nothing. If you re running a polling place election, your trustees must adopt the resolution calling for the election about a month (30 days) earlier than you do now. So, in 2016, the trustees must call for their May election by Feb. 24 (i.e., at their Feb. meeting, rather than March). The resolution calling for an election must be transmitted to the county election administrator within 3 days after it is adopted (down from 5 days in current law). Notice of the election must be done between 10 days and 40 days prior to the election by publishing once in a newspaper of general circulation, posting in 3 public places in the district and posting on the district s website, if the district has a website, for the 10 days prior to the election. Currently, the posting period is between days prior to election day. Ballots must be certified at least 30 days prior to election day. Trustees can declare election by acclamation and cancel trustee election 30 days prior to election day. Ballots for a mail ballot election must be mailed no sooner than 20 days and no later than 15 days prior to election day. (Current law is no sooner than 25 days). Late voter registration applies. The voter must register with the county, then obtain a form from the county which they would bring to the school election so they can obtain a ballot. Community college elections no longer have to be conducted by the school districts. The county will be responsible for the election. House Bill 87 Enrollment Count Change Eliminates the December enrollment count that was added during the 2013 Session. HB158 Vaccinations Added varicella to the list of immunizations required for school attendance, eliminates the exception for pertussis vaccination for a person 7 years of age or older, and added an exception for influenza type b vaccine only for children under 5 years of age. HB 284 Bullying This bill is known as the Bully-free Montana Act. The bill defines bullying and prohibits the bullying of a student enrolled in a public K-12 school by another student or an employee. The definition in the bill: Bullying" means any harassment, intimidation, hazing, or threatening, insulting, or demeaning gesture or physical contact, including any intentional written, verbal, or electronic communication or threat directed against a student that is persistent, severe, or repeated and that: (a) causes a student physical harm, damages a student's property, or places a student in reasonable fear of harm to the student or the student's property; (b) creates a hostile environment by interfering with or denying a student's access to an educational opportunity or benefit; or (c) substantially and materially disrupts the orderly operation of a school. 45

49 HB 374 Suicide Awareness Requires OPI to develop suicide awareness and prevention training materials for school district employees and recommends at least 2 hours of training every 5 years to school employees who work directly with public school students; HJ26 Concussions Interim study of youth concussion protection laws SB 66 Nicotine and Vapor Products Generally revise laws regarding alternative nicotine or vapor products This bill generally revises laws regarding alternative nicotine or vapor products This bill revises the definition of a tobacco product and defines a vapor product as a noncombustible product that may contain nicotine and that uses a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, to produce vapor from a solution... This definition includes electronic cigarettes, cigars, or pipes. The bill adds alternative nicotine products, and vapor products to the law prohibiting the sale to persons under the age of 18. The bill also adds alternative nicotine products or vapor products to tobacco products covered under the unlawful possession and consumption statute for a person under the age of 18. The effective date of the bill is January 1, SB 141 Reemployment of TRS Retirees Repeal termination of reemployment provision for certain retired TRS members MTSBA worked with the sponsor to get the original bill passed in This bill merely eliminated the sunset date of a program that was created six years ago that allows a 30-year TRS member who has been retired for two months to be reemployed by a school district on an annual basis for no more than three years. SB 240 Military Compacts Revise interstate compact on educational opportunity for military children with the sunset date on the compact being repealed. SB 249 Energy Performance Contracting This bill requires the Department of Environmental Quality (DEQ) to compile a list of qualified energy service providers every five years and requires a governmental entity (including a school district) to solicit a request for proposals from at least three qualified service providers before entering into an energy performance contract. The bill also slightly amends the section of law ( ) that allows trustees to permissively issue and sell to the board of investments obligations for the purpose of financing all or a portion of...the costs associated with renovating, rehabilitating, and remodeling facilities, including but not limited to roof repairs, heating, plumbing, electrical systems, and cost-saving measures... SB 345 Accreditation Standard Process This bill recognizes that the standards of accreditation for schools are adopted by the Board of Public Education upon the recommendations of the State Superintendent. The bill requires the State Superintendent to develop recommendations using a negotiated rulemaking process that involves diverse school and public participation and includes an economic impact statement. SJ 10 OPI Data Collection Resolution requesting performance audit of data collection by OPI This resolution is intended to look at the repetition of data entry and the redundancy of data requested by OPI from school districts with the goal of improving efficiency. 46

50 LEGISLATIVE ELECTION LAW CHANGES 47