Revised Budget (October)

Overview

The subpages herein provide additional information regarding the revised budgets of our General, Debt Service, Capital, Food Service, and Community Service Fund funds. You will also find information regarding the District's revenue limit and proposed tax levy.

Variables and Assumptions

As it is impossible to predict the fiscal outcome of any fund, a conservative approach to budgeting is taken whenever possible. A number of estimates, or assumptions, must be made to develop a budget in keeping with this philosophy.

Significant Assumptions

The actual outcome or results of these assumptions may vary significantly.

• Open Enrollment

  • The number of students open enrolled in and out of the District can vary during the school year.

  • This school year, 2020-21, we saw a significant increase in the number of students open enrolled out of the District.

  • In keeping with a conservative approach to budgeting, the revised budget assumes all students will remain open enrolled out the entire school year.

  • When students return to the District, the open enrollment transfer amount is prorated, which may result in a significant budget savings should a significant number of students return.

  • Refer to the Enrollment & Student Count page for additional data.

• Substitute Utilization

  • The utilization rate of substitutes for sick/personal reasons can vary dramatically between and among years.

  • A conservative estimate was established for fiscal year 2020-21 due to COVID-19 and the associated, federally-mandated leaves.

  • An estimate of approximately $475,000 for sick/personal substitutes is reflected in this revised budget.

• State Special Education Categorical Aid

  • The 2019-21 Wisconsin Biennial budget included an increase in state special education categorical aid.

  • The final aid proration for FY2020 was 25.02%, which is slightly lower than the 26% estimated.

  • DPI estimates the FY2021 aid proration to be approximately 28%, which is lower than the 30% estimated when the biennial budget was passed.

  • In keeping with a conservative approach to budgeting, the revised budget assumes an aid proration of 25%.

  • This conservative approach is due, in part, to the realization that if the State needed to reduce spending, this appropriation could be a source of reductions.

  • An increase of three percentage points (28% vs. 25%) would yield approximately $100,000 of additional revenue beyond the amount currently budgeted.

Other Items of Note

These items may not be significant assumptions, but are worthy of specific mention.

• OPEB Trust (Fund 73) Contribution

  • OPEB (Other Post-Employment Benefits) payable to retirees this fiscal year total approximately $415,000.

  • The revised budget includes a contribution of approximately $220,000.

  • The deficit between benefits payable and the budgeted contribution (of approximately $195,000) is offset by the existing fund balance in the OPEB Trust.

  • At the end of FY2020, we contributed additional funds to the OPEB Trust to offset future contributions/balance future budgets.

  • The fund balance at 30 June 2020 was approximately $428,000.

• Cost of Living Adjustment

  • The revised budget does not include a cost of living adjustment for staff.

  • The maximum percentage up to which the District may negotiate with a certified union is 1.81%.

  • A cost of living adjustment for all staff of 1.81% would cost approximately $275,000.