1998-99 PROPOSED OPERATING BUDGET
GENERAL FUND REVENUE
 

CLASSIFICATION	PROJECTED 1997-98	PROJECTED 1998-99	INCREASE (DECREASE) %
REVENUE - LOCAL SOURCES
Property Taxes	41,950,000	41,950,000
Tuition	2,660,000	2,985,000	12.2
Investments	1,050,000	1,050,000
Transfers, Advances and Refunds	295,000	295,000
Other Local Sources	317,714	279,903	(11.9)
Total Local Sources	46,272,714	46,559,903	0.6
REVENUE - STATE SOURCES
Foundation - Formula Amount	8,808,701	10,130,099	15.0
Foundation - Special Education	3,007,308	2,661,169	(11.5)
Foundation - Vocational Education	724,337
Foundation - Pupil Transportation	226,715	273,595	20.7
Foundation - DPIA	250,000
Foundation - Other Miscellaneous	225	30,234
Foundation - Preschool Disability		125,000
Property Tax Allocation (State)	5,250,000	5,250,000
Other State Sources	45,000	45,000
Total State Sources	18,312,286	18,515,097	1.1
REVENUE - FEDERAL SOURCES
Medicaid Reimbursement	315,000	325,000	3.2
Total Federal Sources	315,000	325,000	3.2
TOTAL OPERATING REVENUE	64,900,000	65,400,000	0.8

Revised: May 11, 1998

LOCAL SOURCES

Property Taxes

Projections of property taxes for the district are provided by the County Auditor and the County Budget Commission.

Collections of taxes on real property are estimated to remain about the same as in the current year.

A prior court decision in favor of MCI now requires new telephone equipment, formerly assessed at 88 percent of "true value," be instead assessed at 25 percent, the same rate as other business personal property. This change has reduced district income in the past and will continue to reduce receipts by indeterminate amounts in future years. As part of the process of deregulating electric utilities in Ohio, a similar initiative that addresses the taxable value of their equipment has likewise been proposed. The future of this legislation and its potential impact on our financial situation is not yet known.

Tuition

Tuition includes amounts charged to other school districts for vocational and special education and to residents for summer school. Although the state has changed from unit funding to funding per pupil by district of residence, new rules for amounts to be charged have not yet been formulated. For the purposes of this analysis, we have assumed that any changes in amounts charged to our district will be offset by the concurrent change in amounts that we charge to other districts. The increase in income does, however, reflect cost increases, particularly at Bellefaire, that we expect to recoup.

Investment Earnings

Investment earnings represent interest income on the investment of revenues from the time of receipt to the time of expenditure. The amount is dependent on the market rate of interest and funds available for investment.

Transfers In, Advances Returned and Refunds of Prior Year's Expenditures

Transfers in reflect the permanent transfer of moneys from another fund to the General Fund.

Advances returned reflect the return of moneys temporarily advanced to other funds in prior years. To maintain a positive balance, various state and federal funds require that cash be advanced from the General Fund until the district is paid by either state or

federal agencies. These advances are often required because expenditures must be made before the associated reimbursement can be applied for or received.

Refunds of prior year's expenditures reflect receipts in the current year which offset expenditures in prior years.

Other Local Sources

Other local sources represent miscellaneous fees charged for services provided by the district, particularly for transportation and for the use of our school buildings.
 

STATE SOURCES

Formula Amount

For 1998-99 the Legislature has radically altered the methodology for computing aid provided by the Foundation, the primary source of revenue from the State of Ohio. The new "formula amount" has effectively replaced basic aid as the statutory amount granted to school districts on a per pupil basis. Under this formula, the product of total enrollment times the amount per student times the "cost of doing business" factor is reduced by the implied revenue from an assumed 23 mill levy, the "charge-off" millage.

While this new formula has removed us from the "guarantee", the underlying problems with the old formula still exist. As a result of HB 920, the continuing reappraisal of real property does not generate additional income, but the increase in the charge-off amount as a result of "phantom" revenue continues.

Special Education

With the elimination of unit funding, the allowance that was provided for each special education classroom is gone. In its place, the district is allowed to count these students in with students receiving regular education. The district then receives additional funds for these pupils depending on the intensity of the special instruction provided.

While estimated receipts for special education next year are less than the current year, the fact that these students are also included in the formula Average Daily Membership has increased the total reimbursement.

Vocational Education

There is no longer unit funding for vocational education since these students are also included in the formula ADM. The state has, however, set aside an additional pool of money to be distributed at a later date.
 

Pupil Transportation

The increase in receipts for pupil transportation for next year is based on funding changes incorporated in HB 650.

DPIA

Substantial changes have been made in the way Disadvantaged Pupil Impact Aid ("DPIA"), is calculated and distributed. Now in three parts, this aid is restricted to subsidize safety and remediation, all day kindergarten (ADK) and class size reduction. We believe that the proposed changes in staffing and programs will qualify the district to receive all of the funds that have been allocated, but this revenue and the associated expenditures have been reclassified to the appropriate restricted fund.

Property Tax Allocation

Currently the subject of HB 697, the property tax allocation ("rollback") represents the percentage of real estate taxes that the state pays on behalf of taxpayers. The amount of the rollback is a function of property taxes collected.

Other State Sources

Other state sources -represent reimbursements to the District for driver's education and certain other expenditures.
 

FEDERAL SOURCES

Medicaid Reimbursement

This reimbursement represents additional revenue to offset part of the District's cost of providing health-related services to children eligible for Medicaid. The estimate for the current year is based on information provided by our Medicaid consultant.