|March 13, 2015
Governor Signs “Negative” Supplemental School Aid Bill for FY2014-15
PA 5 of 2015 (HB 4110) was signed into law this week with several changes to the FY 2014-15 School Aid Fund appropriation. In our January 16, 2015 eblast, we detailed the Consensus Revenue Estimating Conference (CREC) report of the General Fun/General Purpose (GF/GP) revenue reductions and the potential to use School Aid Fund (SAF) surplus funds to “fix” the GF/GP funding issues. As part of the Governors’ FY 2015-16 budget release that we detailed in the February 17, 2015 eblast, the current year funding changes were unveiled and much of what we saw then is reflected in the negative supplemental appropriations bill for school aid.
In total, the moves shifted costs or reduced funding from GF/GP to school aid, benefiting the GF/GP by $250,310,800. Other technical cost adjustments as agreed upon at the CREC were also included in the supplemental. Both House and Senate Fiscal Agencies have provided detailed analysis, which can be seen on our web page dedicated to the FY2014-15 budget.
Notable funding changes include:
The shifting of Community College Operations to the SAF for FY2014-15 represents total funding for community colleges from school aid of $307,191,300! If you were to equate that to a per pupil dollar amount for K-12 operations it represents almost $204 per pupil! In addition, if you take the school aid funding being used for University Operations from FY2014-15 of $204,567,900 which equates to nearly $136 per K-12 pupil, the SAF is funding these two areas at the cost of $340 per K-12 pupil! That represents 4.1% of the current year $7,251 minimum foundation including equity payment!
With all the shifting of costs to the SAF and the fact that the Senate Fiscal Agency has released information that the GF/GP is now $171 million above the January CREC estimates, will we see if the state backs off of the raid on the SAF?
Elimination of Section 147d Funding!
Check your budget and identify that what you estimated for Section147d revenue equals the expense you anticipated! We’ve heard a few districts may have used the “state-wide” payroll rate as estimated by ORS as a part of their budget for retirement expense and now realize the revenue and expense isn’t netting to $0 in their budget!
When we get more information, we will pass it on!
Audit and FID Date changes and More Transparency Reporting!
More transparency reporting was also added in the supplemental bill. If you recall the “Transportation Funding Bill” package included Senate Bill 80 (SB 80), which would require additional reporting of employee reimbursements on district’s websites if Proposal 15-1 passes. Language was added to the supplemental bill that includes three new requirements which were also in SB 80, so regardless of the vote on the ballot proposal, schools are now required to comply with additional transparency reporting.
The new requirements include posting of:
We anticipate that MDE will be providing some guidance on the form and manner of the reporting, but for the most part this would be done on an annual basis. As we receive information we will forward it on to you!
Once again, we have posted the bill language and analysis from both the House and Senate Fiscal Agencies for your review on our web page dedicated to the FY 2014-15 budget.
Stay tuned for more information on the budget process as the House and Senate have both introduced budget documents; HB 4316 and SB 201. Using the Governor’s proposal as the starting point, we expected to start to see the direction each will take by Spring Break 2015!
David and Bob
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