Base State Aid Per Pupil (BSAPP) General Fund:
2009-10 “lock box” as we were promise last year at this time = $4,492.
What we received in 2008-09 = $4,400.
What we are budgeting for at this time for 2009-10 = $4,218.
Difference between $4,492 and $4,218 budgets = $140,562 (without including any reduction in special education funding).

General Fund Differences and Special Education:
2008-09 general fund received = $2,263,360 (FTE=514).
2009-10 general fund proposed = $2,113,218 (FTE=513, base on 9-20-08 student numbers counting for three 4-yr old at-risk students). Proposed 2009-10 budget is down $150,142 from 2008-09 budget.
Special education “flow through money “is down $49,399 with all but about $20,000 coming from ARRA (federal stimulus) monies. We will have to reduce special education personnel or receive a higher assessment for 2010-11 and beyond. Our assessment for 2009-10 is $107,178.
Bottom line is that we are down at least $100,743 ($120,000 if you include special education “flow through”). The most we can be down ($143,942 including “SPED flow through”) is about $123,942 (using last year’s count instead of 3-yr average) if students numbers drop and at-risk and vocational numbers are maintained.
More budget reductions are extremely likely if you look at what has happened in less than one year. We need to plan on a reduction of at least another $150,000 before the end of the year. That brings the total to at least $250,000 in general budget reductions.

Revenue Sources (LOB):
One source is with savings. With reductions in spending for supplies, reductions in calendar days (reduce fuel and energy) and some classified and certified position (no full positions) reductions, we should save around $65-70,000 for 2009-10.
Capital Outlay will not be funded by the state in 2009-10 so we will not have a capital outlay mill levy this year.
Our LOB is funded at 53.8% state aid.
To increase $250K in LOB we will have to increase LOB 18.44 mils. This is high because our valuation is down about $1.4 million ($9,761,285 in 2008-09 to $8,336,252 in 2009-10) and to raise the same amount of money it takes a higher mill levy. LOB state aid (based on local valuation divided by student enrollment) always lags 1 year behind falling or increasing student enrollment numbers and valuation.
Fortunately, our Bond & Interest Mill levy is down (from 9.935 in 2008-09 to 7.348 in 2009-10) because we refinanced at a lower interest rate. This makes our total school mill levy for the 2009-10 school up a total of 15.86 mills to generate an extra $64,302 in local tax revenue.
Our cash balance dropped about $90K last year.

Cost of 15.86 mill increase

Determining the assessed value of land or other real estate is determined by the county coming up with an appraised value which may or may not reflect market value or even a private appraiser’s estimate. Sometimes the county’s value is low, sometimes it is high. Below are the property class categories that determine what percent of the appraised value is assessed for taxes.
11.5% - Residential – First $20,000 exempted from General Fund assessments
12.0% - Vacant Lots
12.0% - Not for Profit organizations
25.0% - Commercial
25.0% - Ag Improvements
30.0% - Ag land (appraised at “use value” only)
30.0% - Other
 
Possible tax examples:
Here are taxes for a home that the county appraised at $80,000 (market value could be substantially higher)
80,000 x .115 = $9,200 of assessed value. For General Fund, one would subtract the first $20,000. For LOB, we use the fully appraised value of $80,000.
-Assessed valuation would be $80,000 x .115 = $9,200.
-Amount taxed = assessed valuation/1000 x mills taxed
-Tax increase on an extra 15.86 mills = $9,200/1000 x 15.86 = $145.91
 
If a quarter (160 acres) of cultivated land with no improvements (appraised for its agricultural value which is less than its market value) could be appraised by the county at $21,000 (I averaged a few ¼’s 2008 appraisal on cultivated land).
-Assessed valuation = $21,000 x .3 = $6,300
-Tax increase on an extra 15.86 mills = $6,300/1000 x 15.86 = $99.92