Each fiscal year presents a new set of challenges and variables in the budget development process—some statewide and others district-specific. The Board develops budget assumptions based on the best information available. These assumptions take known and unknown information into consideration and serve as a guide throughout the process.
Each of the budget assumptions are outlined later in this document. Although the Board sets these assumptions to be used throughout the budget development process, they are still merely assumptions and are subject to change and evolve as more accurate information becomes available.
Factors identified, by the Director of Business Services, to be significant are bolded. If financial impacts for any assumptions are known, they are identified in blue.
The Board’s greatest priority is to provide the highest quality education to students using the resources available. How those resources are distributed will be decided with the District’s mission, vision, and core values as the focus.
The budget development process will be set to a strict timeline and involve input from a wide variety of stakeholders. A detailed outline of the budget process and timeline will be presented to the Board and posted on the District website.
The 2021-22 budget is the third of four years of additional revenue limit authority approved by voters in November 2018. The authority to continue exceeding the revenue limit has allowed the District to maintain targeted class sizes, student support and mental health services, comprehensive instructional and co-curricular programs, and technology, safety, and facilities infrastructure. Result: Additional revenue limit authority of approximately $800,000.
The Board will consider the impact on the overall tax levy of utilizing the energy efficiency exemption in the revenue limit formula to make the debt payments due in 2021-22. The Board has the authority to utilize this exemption, but can annually elect whether or not to exercise.
The District will consider utilizing flexibility within the referendum debt service fund (Fund 39) to stabilize the overall tax levy.
The Community Service budget (Fund 80) will be used to maintain community programming and accessibility to the District’s facilities. All expenses in the community service fund will be reviewed to ensure compliance with DPI guidelines. The District will investigate new ways to provide community access to services and programs.
The Board is committed to maintaining our buildings and grounds through the use of the Capital Expansion Fund (Fund 41). The amount to be levied in Fund 41 will depend on the final revenue limit and other instructional needs.
Assume 3rd Friday of September membership will decrease by 20 FTE compared to 2020-21.
Assume summer school membership will increase to approximately 75% of pre-COVID.
The result of the above two items will yield a stable revenue limit, prior to exemptions.
The District will continually monitor enrollment and develop a staffing proposal with the goal of meeting targeted class sizes.
The Board will contemplate the needs of the District and students in determining whether or not to utilize the full authority to levy within the state-imposed revenue limit.
The District will plan to have an Open Enrollment-in/out ratio similar to the 2020-21 school year.
Equalized property values will be assumed to experience nominal growth (approx. 1%).
Collective bargaining agreements and non-union contracts will be settled within the legal constraints set by the state and will reflect the District’s financial reality. The District will continue to monitor and evaluate its financial sustainability. CPI-U will be estimated at 2%.
The District will negotiate a health insurance renewal with the goal of maintaining a quality employee benefit at a competitive rate. The District will continue to pay 87.4% of the premium. The competitive nature of this plan design should incentivize our providers to continue offering competitive premium rates.
Whenever possible, the District will utilize the transfer of service revenue limit exemption to offset the new cost of eligible expenses for programs or services assumed from other governmental units.
The District will continue utilizing a letter of credit for short-term borrowing needs to minimize interest costs.
The District’s $1 million borrowing capacity (without referendum) for capital projects will not be employed.
The Board will adhere to its policy on the use of fund balance (Board Policy 662.3), which states that fund balance will not be available to meet recurring operational expenses. Borrowing from the fund balance will be limited to very specific situations and will require the approval of a supermajority of the full Board.
The Board will approve a balanced budget in which the ending fund balance will remain the same as the beginning fund balance for the general fund.
Restore a full contribution to the Other Post-Employment Benefits (OPEB) trust.
Assume staff will return to pre-COVID assignments.
Factors identified, by the Director of Business Services, to be significant are bolded. If financial impacts for any assumptions are known, they are identified in blue.
2021-22 will be the first year of the next state biennial budget, which results in a significant amount of uncertainty.
Per-pupil revenue limit increase of $0.
Stable per-pupil adjustment aid.
Open enrollment transfer amounts will increase.
No other significant increases in state-sourced resources for the District.
No carryover (from 2020-21) of our Federal CARES Act Elementary and Secondary School Emergency Relief Fund (ESSER) monies.
Equalization aid will be difficult to predict due to declines in students statewide.