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Meeting Date:
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10/20/2020 - 5:30 PM
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Category:
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ITEMS OF BUSINESS
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Type:
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Info
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Subject:
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4. Report with Possible Action on Strategies Used to Maximize Fiscal Year 2020-21 State Aid
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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File Attachment:
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Background:
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One of the Board-approved budget parameters each year is to maximize the amount of State Aid the district receives. Maximizing State Aid decreases the amount of local property taxes needed to fund the district.
There are three district factors that are used in the calculation of State General Aid which is also called Equalization Aid. The three district factors are equalized property value, membership and spending (shared cost) from the prior year. Shared cost can be defined as the expenditures for which the district has no other revenues except for local property tax and Equalization Aid. When the district increases spending in these two categories it helps maximize the amount of State Equalization Aid the district will receive the next year.
Administrative Policy 3.11 gives the Office of Finance authorization to oversee investment decisions. The district has Board-approved investment policies that include:
• Other Post-Employment Benefits (OPEB)
• Long-term Capital Improvement Trust Fund (Fund 46)
The district invested in both OPEB and the Long-term Capital Improvement Trust Fund in fiscal year 2020. That investment counts toward shared costs. The shared costs then help maximize State Equalization Aid in fiscal year 2021.
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Fiscal Impact Statement:
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This item reports on expenditures made in the amount of $13,000,000 to Other Post-Employment Benefits (OPEB) and $6,000,000 to the Long-term Capital Improvement Trust Fund to increase our eligibility for State General Aid in fiscal year 2020–21 through our fiscal year 2019–20 shared costs.
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Implementation and Assessment Plan
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Recommendation:
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Approvals:
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Recommended By:
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Signed By:
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Martha Kreitzman - Chief Financial Officer
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Signed By:
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Calvin Fermin - Deputy Superintendent
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Signed By:
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Keith Posley, Ed.D. - Superintendent
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